Company Registration No. SC061436 (Scotland)
HIGHLAND METALS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
HIGHLAND METALS LIMITED
COMPANY INFORMATION
Directors
R G Steel
G C Bulloch
J D Ashmead
A Ashmead
J S Macintosh
Secretary
R G Steel
Company number
SC061436
Registered office
Pinefield Industrial Estate
ELGIN
IV30 6FG
Auditor
Johnston Carmichael LLP
Strathlossie House
Elgin Business Park
1 Kirkhill Avenue
Elgin
IV30 8DE
HIGHLAND METALS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
HIGHLAND METALS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The directors present the strategic report for the year ended 31 March 2025.

Fair review of the business

Galvanizing turnover for the year to 31 March 2025 remained steady at £4.5 m with Gross margin dropping slightly from 40.9% to 39.2% as a result of continued (but lesser) inflationary pressure on the cost base.

Profit before taxation reduced from £1.9m to £1.3m however excluding the impact of dividends from the subsidiary company and the movement in the value of investments, profit before taxation was at similar level to the previous year - £0.7m.

Although capital expenditure for the year was £1.1m reflecting continued investment in buildings and plant & machinery, the company’s net current asset position remained steady at £6.7m with total assets at 31 March 2025 being £13.0m, an increase of £0.9m.

Principal risks and uncertainties

The c ompany is exposed to fluctuations in commodity prices, particularly raw materials (zinc, mainly) and energy although these have had less significant impact in the year to 31 March 2025.

As noted above, inflationary pressure has eased although the cost base is still subject to increases which may not be able to be recovered through equivalent change to market selling prices.

The labour market remains competitive and the company has invested considerable effort in improving employee retention including significant revision to shift structures and this is beginning to have positive impact.

The directors are satisfied that all available measures to monitor and manage these risks are in place.

Key performance indicators

The directors manage the main areas of the business using a broad range of key financial performance indicators designed to ensure regular, tight monitoring and control of all operational activity. These financial indicators focus mainly on revenue growth and operating margin and with regard to the latter, specific ratios to measure the effectiveness of labour and raw material consumption are analysed in detail, allowing real time management and control of key aspects of operational performance.

There are also non-financial key performance indicators used to ensure continuous improvement in Health & Safety, Quality and Environmental performance.

Future developments

The programme regarding asset refurbishment designed to extend the life of the site is well underway and will continue throughout the next 1 – 2 years.

This together with increased commitment to measures to improve the development and wellbeing of people will enable strategic and operational objectives to be achieved.

On behalf of the board

R G Steel
Director
8 October 2025
HIGHLAND METALS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -

The directors present their report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the co mpany is that of the supply of galvanizing processes.

Results and dividends

The results for the year are set out on page 8.

A dividend amounting to £173,572 has been paid as disclosed in note 11. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R G Steel
G C Bulloch
J D Ashmead
A Ashmead
J S Macintosh
Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HIGHLAND METALS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Information contained within the Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's s trategic r eport information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

On behalf of the board
R G Steel
Director
8 October 2025
HIGHLAND METALS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HIGHLAND METALS LIMITED
- 4 -
Opinion

We have audited the financial statements of Highland Metals Limited ('the company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including F inancial R eporting S tandard 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 March 2025 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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report and financial statements other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report and financial statements. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

- T he information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

HIGHLAND METALS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND METALS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report and the directors' r eport.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor's 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 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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

HIGHLAND METALS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND METALS LIMITED
- 6 -

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

- UK Generally Accepted Accounting Practices;

- Companies Act 2006;

- UK Corporation Tax Act 2010;

- Scottish Environment Protection Agency (SEPA); and

- Health and Safety Regulations.

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

- Management override of controls

- Revenue recognition

- Zinc stock valuation

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

- Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud;

- Reviewing the level of and reasoning behind the company's procurement of legal and professional services;

- Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and assessing judgements made by management and those charged with governance in their calculation of accounting estimates for potential management bias;

- Performing audit procedures to confirm the completeness and cut off of revenue recognised in accordance with the company's accounting policies;

- Performing audit procedures over the risk of zinc stock valuation, including testing of the relevant usage adjustments;

- Completion of appropriate checklists and use of our experience to assess the company's compliance with the Companies Act 2006; and,

- Agreement of the financial statement disclosures to supporting documentation.

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

HIGHLAND METALS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND METALS LIMITED
- 7 -

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 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.

Martin Bannerman (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
15 October 2025
Statutory Auditor
Strathlossie House
Elgin Business Park
1 Kirkhill Avenue
Elgin
IV30 8DE
HIGHLAND METALS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
4,539,307
4,483,896
Cost of sales
(2,760,276)
(2,650,195)
Gross profit
1,779,031
1,833,701
Distribution costs
(325,876)
(351,359)
Administrative expenses
(1,295,885)
(1,386,484)
Other operating income
251,100
387,742
Operating profit
4
408,370
483,600
Interest receivable and similar income
7
774,514
1,212,213
Interest payable and similar expenses
8
(27)
-
0
Fair value movement on investments
9
100,838
249,821
Profit before taxation
1,283,695
1,945,634
Tax on profit
10
(177,602)
(272,883)
Profit for the financial year
1,106,093
1,672,751
Total comprehensive income for the year
1,106,093
1,672,751

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

HIGHLAND METALS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,584,842
625,233
Investments
13
4,995,711
4,862,488
6,580,553
5,487,721
Current assets
Stocks
15
557,860
571,247
Debtors
16
1,268,479
997,166
Investments
17
3,000,000
3,000,000
Cash at bank and in hand
3,163,666
3,602,779
7,990,005
8,171,192
Creditors: amounts falling due within one year
18
(1,297,825)
(1,442,644)
Net current assets
6,692,180
6,728,548
Total assets less current liabilities
13,272,733
12,216,269
Creditors: amounts falling due after more than one year
19
(75,336)
-
0
Provisions for liabilities
Deferred tax liability
20
209,791
161,184
(209,791)
(161,184)
Net assets
12,987,606
12,055,085
Capital and reserves
Called up share capital
22
27,501
27,501
Capital redemption reserve
23
94,999
94,999
Profit and loss reserves
12,865,106
11,932,585
Total equity
12,987,606
12,055,085
The financial statements were approved by the board of directors and authorised for issue on 8 October 2025 and are signed on its behalf by:
G C Bulloch
Director
Company Registration No. SC061436
HIGHLAND METALS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2023
27,501
94,999
10,482,998
10,605,498
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
1,672,751
1,672,751
Dividends
11
-
-
(223,164)
(223,164)
Balance at 31 March 2024
27,501
94,999
11,932,585
12,055,085
Year ended 31 March 2025:
Profit and total comprehensive income for the year
-
-
1,106,093
1,106,093
Dividends
11
-
-
(173,572)
(173,572)
Balance at 31 March 2025
27,501
94,999
12,865,106
12,987,606
HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
1
Accounting policies
Company information

Highland Metals Limited is a private company limited by shares incorporated and domiciled in Scotland. The registered office is Pinefield Industrial Estate, ELGIN, IV30 6FG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent

of that group prepares publicly available consolidated financial statements, including this company, which are

intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Highland Metals Limited is a wholly owned subsidiary of Highland Metal Developments Limited and the results of Highland Metals Limited are included in the consolidated financial statements of that entity, which are publicly available.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover
Turnover represents amounts receivable for galvanizing services performed net of VAT and trade discounts. Turnover is recognised at the point of despatch.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 12 -

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold buildings
- Straight line over 25 years
Plant and machinery
- Straight line over 4 to 10 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.

Freehold land is not depreciated.

1.5
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the profit and loss account.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Listed investments are measured at fair value through the profit and loss account with any impairment losses being recognised through the profit and loss account immediately.

1.6
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.7
Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises the invoiced price of goods and materials on a first in first out basis. The cost of work in progress comprises materials, direct labour and attributable production overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less. Short-term liquid investments with original maturities of over three months are included in current asset investments.

HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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, 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 debtors and cash and bank balances, are measured at transaction price including transaction costs.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the profit and loss account, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through the profit and loss account, are assessed for indicators of impairment at each reporting end date.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, are recognised at transaction price.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not they will be recovered. Deferred tax assets and liabilities are not discounted.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.15
Government grants

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants are recognised in accordance with the accruals model. Government grants relating to revenue are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock

The calculation of the value of the zinc held in the kettle of £443,768 (2024 - £443,768), which is included within raw materials and consumables stock, is based on the total quantity held, which remains relatively constant and which in turn is made up of the estimated tonnage of zinc itself (valued at cost) and the estimated tonnage of residues (valued at estimated realisable value).

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Galvanizing services
4,539,307
4,483,896
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
4,539,307
4,483,896
2025
2024
£
£
Other significant revenue
Interest income
255,629
190,942
Dividends received
518,885
1,021,271
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,300
14,300
Depreciation of owned tangible fixed assets
152,115
124,815
Profit on disposal of tangible fixed assets
(5,711)
-
HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
4
Operating profit
(Continued)
- 16 -

The company has taken advantage of the exemption from the disclosure of remuneration paid to its auditors for non-audit services. This exemption is available to the company as the ultimate parent company prepares consolidated accounts which are required to include such disclosures in those accounts.

5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Administration and directors
13
12
Production
22
22
Total
35
34

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,526,754
1,473,804
Social security costs
182,649
170,724
Pension costs
102,765
219,690
1,812,168
1,864,218
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
407,804
464,507
Company pension contributions to defined contribution schemes
54,128
173,309
461,932
637,816

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
94,301
150,478
Company pension contributions to defined contribution schemes
27,728
104,542
HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
223,235
133,578
Other interest income
32,394
57,364
Total interest revenue
255,629
190,942
Other income from investments
Dividends received
18,885
21,271
Total income
274,514
212,213
Income from fixed asset investments
Income from shares in group undertakings
500,000
1,000,000
Total income
774,514
1,212,213

Investment income includes the following:

Dividends from financial assets measured at fair value through profit or loss
18,885
21,271
8
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
27
-
9
Fair value movement on investments
2025
2024
£
£
Fair value gains/(losses) on financial instruments
Change in value of financial assets held through profit and loss
100,838
249,821
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
128,592
219,981
Adjustments in respect of prior periods
403
111
Total current tax
128,995
220,092
HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
10
Taxation
2025
2024
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
48,607
45,715
Adjustment in respect of prior periods
-
0
7,076
Total deferred tax
48,607
52,791
Total tax charge
177,602
272,883

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
1,283,695
1,945,634
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
320,924
486,409
Tax effect of expenses that are not deductible in determining taxable profit
-
0
16,564
Tax effect of income not taxable in determining taxable profit
(14,909)
(62,605)
Adjustments in respect of prior years
403
111
Deferred tax adjustments in respect of prior years
-
0
7,076
Dividend income
(129,721)
(255,318)
Chargeable gains/(losses)
(1,315)
76,331
Fixed asset differences
2,220
4,315
Taxation charge for the year
177,602
272,883
11
Dividends
2025
2024
£
£
Final paid
173,572
223,164
HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 19 -
12
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Total
£
£
£
Cost
At 1 April 2024
662,086
1,801,075
2,463,161
Additions
762,353
349,371
1,111,724
Disposals
(31,478)
(86,294)
(117,772)
At 31 March 2025
1,392,961
2,064,152
3,457,113
Depreciation and impairment
At 1 April 2024
559,287
1,278,641
1,837,928
Depreciation charged in the year
14,865
137,250
152,115
Eliminated in respect of disposals
(31,478)
(86,294)
(117,772)
At 31 March 2025
542,674
1,329,597
1,872,271
Carrying amount
At 31 March 2025
850,287
734,555
1,584,842
At 31 March 2024
102,799
522,434
625,233

Freehold land with a value of £7,220 (2024 - £7,220) has not been depreciated.

13
Fixed asset investments
2025
2024
Notes
£
£
Investments in subsidiaries
14
999,998
999,998
Listed investments
3,995,713
3,862,490
4,995,711
4,862,488
Fixed asset investments revalued

Listed investments comprise of publicly traded shares which are held at their fair value. The historic cost of these investments are £3,241,407 (2024 - £3,209,022).

The change in fair value of these investments has been established through assessing the market value of the investments at the year-end.

HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
13
Fixed asset investments
(Continued)
- 20 -
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 April 2024
999,998
3,862,490
4,862,488
Additions
-
32,385
32,385
Valuation changes
-
100,838
100,838
At 31 March 2025
999,998
3,995,713
4,995,711
Carrying amount
At 31 March 2025
999,998
3,995,713
4,995,711
At 31 March 2024
999,998
3,862,490
4,862,488
14
Subsidiaries

These financial statements are separate company financial statements for Highland Metals Limited.

Details of the company's subsidiaries at 31 March 2025 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Highland Colour Coaters Limited
See below
Galvanizing services
Preference
100.00
-
Highland Colour Coaters Limited
See below
Galvanizing services
Ordinary
100.00
-
Highland Galvanizers Limited
See below
Dormant
Ordinary
0
99.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Highland Colour Coaters Limited
4,883,271
716,899
Highland Galvanizers Limited
100

The registered address of the subsidiaries is Pinefield Industrial Estate, Elgin, IV30 6FG.

The shareholding in Highland Galvanizers Limited is held by Highland Colour Coaters Limited.

HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
15
Stocks
2025
2024
£
£
Raw materials and consumables
557,860
571,247
16
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
800,024
879,385
Amounts owed by group undertakings
413,984
-
0
Other debtors
54,471
117,781
1,268,479
997,166
17
Current asset investments
2025
2024
£
£
Short term deposits
3,000,000
3,000,000
18
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
332,561
214,664
Amounts owed to group undertakings
-
0
164,916
Corporation tax
129,506
219,981
Other taxation and social security
160,604
172,832
Other creditors
675,154
670,251
1,297,825
1,442,644
19
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Government grants
75,336
-
0
HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 22 -
20
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
163,331
109,741
Capital gains
122,531
123,846
Other timing differences
(76,071)
(72,403)
209,791
161,184
2025
Movements in the year:
£
Liability at 1 April 2024
161,184
Charge to profit or loss
48,607
Liability at 31 March 2025
209,791
21
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
102,765
219,690

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

22
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
27,501
27,501
27,501
27,501

The company has one class of ordinary share which carry full voting rights.

23
Capital redemption reserve
2025
2024
£
£
At the beginning and end of the year
94,999
94,999
HIGHLAND METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
23
Capital redemption reserve
(Continued)
- 23 -

The capital redemption reserve records the nominal value of shares repurchased by the company.

24
Capital commitments

Amounts contracted for but not provided in the financial statements:

2025
2024
£
£
Acquisition of tangible fixed assets
81,794
-
25
Related party transactions

The company has taken advantage of the exemption within FRS 102 Section 33 paragraph 33.1A, not to disclose transactions entered into between two or more members of the group, as the company is a wholly owned subsidiary of the group to which it is party to the transactions.

26
Ultimate controlling party

The ultimate parent company and controlling party is Highland Metal Developments Limited. Highland Metal Developments Limited heads the only group for which consolidated financial statements have been prepared. Copies of these results are publicly available and can be obtained from the Registrar of Companies at Companies House using https://find-and-update.company-information.service.gov.uk/.

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