Company Registration No. SC212755 (Scotland)
HIGHLAND COLOUR COATERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
HIGHLAND COLOUR COATERS LIMITED
COMPANY INFORMATION
Directors
R Sheils
L Reed
R G Steel
G C Bulloch
I Boyle
J S Macintosh
B Brown
Secretary
R G Steel
Company number
SC212755
Registered office
Pinefield Industrial Estate
ELGIN
IV30 6FG
Auditor
Johnston Carmichael LLP
Strathlossie House
Elgin Business Park
1 Kirkhill Avenue
Elgin
IV30 8DE
HIGHLAND COLOUR COATERS 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 - 22
HIGHLAND COLOUR COATERS 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

Overall turnover reflected a slight decrease (2.3%) to £9.0M for the year to 31 March 2025 against £9.2m the previous year. This was mainly attributable to a small drop in Powder Coating volumes.

Gross margin at 38.8% was satisfactory albeit reflecting a slight decrease from last year’s 40.3%.

This led to an an equivalent marginal decrease in both operating profit and profit before taxation, the latter to £1.0m, which is seen t o be positive in the current market circumstances.

At 31 March 2025 the c ompany had net assets of £4.9m and a balance sheet reflecting a very strong financial position.

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.

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 difficulties in recruitment and retention persist. Measures are being implemented to improve this position including full review of shift structures and employee welfare.

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 aspects o f operational performance.

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

Future developments

Substantial capital investment has commenced in both the c ompany’s buildings and plant & machinery and 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 COLOUR COATERS 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 c ompany is that of the supply of galvanizing, powder coating and the duplex service combining these processes, "Colourgalv".

Results and dividends

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

Ordinary dividends were paid amounting to £500,000. The directors do not recommend payment of a further dividend.

No preference dividends were paid.

Directors

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

R Sheils
L Reed
R G Steel
G C Bulloch
I Boyle
J S Macintosh
B Brown
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 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 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 COLOUR COATERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
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.

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.

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

We have audited the financial statements of Highland Colour Coaters Limited (the 'company') for the year ended 31 March 2025 which comprise of the statement of comprehensive income, the balance sheet, 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 Financial Reporting 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 COLOUR COATERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND COLOUR COATERS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not 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 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://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 COLOUR COATERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND COLOUR COATERS 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 GAAP;

- 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 company’s 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;

- Agreement of the financial statement disclosures to supporting documentation; and

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

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 COLOUR COATERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND COLOUR COATERS 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 COLOUR COATERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
8,975,049
9,188,479
Cost of sales
(5,490,001)
(5,484,669)
Gross profit
3,485,048
3,703,810
Distribution costs
(862,913)
(733,201)
Administrative expenses
(1,648,451)
(1,810,701)
Other operating income
30,840
30,840
Operating profit
4
1,004,524
1,190,748
Interest payable and similar expenses
7
-
0
(36,124)
Profit before taxation
1,004,524
1,154,624
Tax on profit
8
(287,625)
(312,793)
Profit for the financial year
716,899
841,831
Total comprehensive income for the year
716,899
841,831

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

HIGHLAND COLOUR COATERS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,998,399
2,506,674
Investments
11
98
98
2,998,497
2,506,772
Current assets
Stocks
13
693,480
650,736
Debtors
14
1,737,590
1,818,563
Cash at bank and in hand
1,820,647
1,623,850
4,251,717
4,093,149
Creditors: amounts falling due within one year
15
(1,892,298)
(1,595,396)
Net current assets
2,359,419
2,497,753
Total assets less current liabilities
5,357,916
5,004,525
Creditors: amounts falling due after more than one year
16
(153,675)
(184,515)
Provisions for liabilities
Deferred tax liability
17
320,970
153,638
(320,970)
(153,638)
Net assets
4,883,271
4,666,372
Capital and reserves
Called up share capital
20
1,000,000
1,000,000
Profit and loss reserves
3,883,271
3,666,372
Total equity
4,883,271
4,666,372
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. SC212755
HIGHLAND COLOUR COATERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2023
1,000,000
3,824,541
4,824,541
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
841,831
841,831
Dividends
9
-
(1,000,000)
(1,000,000)
Balance at 31 March 2024
1,000,000
3,666,372
4,666,372
Year ended 31 March 2025:
Profit and total comprehensive income for the year
-
716,899
716,899
Dividends
9
-
(500,000)
(500,000)
Balance at 31 March 2025
1,000,000
3,883,271
4,883,271
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
1
Accounting policies
Company information

Highland Colour Coaters 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 under the historical cost convention. 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.

Highland Colour Coaters Limited is a wholly owned subsidiary of Highland Metals Limited and the results of Highland Colour Coaters Limited are included in the consolidated financial statements of Highland Metal Developments Limited, 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 and powder coating services 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 COLOUR COATERS 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
Fixtures, fittings & equipment
- 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.

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 include cash in hand.

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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.

HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the profit and loss account.

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.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditor s are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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.

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.

HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
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
Government grants

Government grants are recognised at the fair value of the asset received 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.

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 £453,870 (2024 - £423,870) 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
6,964,811
6,939,141
Powder coating services
2,010,238
2,249,338
8,975,049
9,188,479
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
3
Turnover and other revenue
(Continued)
- 15 -
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
8,975,049
9,188,479
2025
2024
£
£
Other significant revenue
Grants received
30,840
30,840
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(30,840)
(30,840)
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
13,750
Depreciation of owned tangible fixed assets
332,599
324,948
Profit on disposal of tangible fixed assets
(2,898)
(610)

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
Office
11
12
Factory
68
65
Total
79
77

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
2,947,325
2,795,642
Social security costs
282,039
265,924
Pension costs
125,181
132,304
3,354,545
3,193,870
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
234,214
212,278
Company pension contributions to defined contribution schemes
33,597
56,001
267,811
268,279

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
96,884
82,272
Company pension contributions to defined contribution schemes
27,733
50,510
7
Interest payable and similar expenses
2025
2024
£
£
Other interest
-
0
36,124
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
134,437
331,598
Adjustments in respect of prior periods
(14,144)
(15,351)
Total current tax
120,293
316,247
Deferred tax
Origination and reversal of timing differences
154,754
(3,439)
Adjustment in respect of prior periods
12,578
(15)
Total deferred tax
167,332
(3,454)
Total tax charge
287,625
312,793
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
8
Taxation
(Continued)
- 17 -

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
1,004,524
1,154,624
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
251,131
288,656
Adjustments in respect of prior years
(14,144)
(15,351)
Deferred tax adjustments in respect of prior years
12,578
(15)
Fixed asset differences
38,060
39,503
Taxation charge for the year
287,625
312,793

9
Dividends
2025
2024
£
£
Final paid
500,000
1,000,000
10
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 April 2024
4,673,534
3,288,949
53,545
8,016,028
Additions
75,015
745,031
5,876
825,922
Disposals
-
0
(164,842)
-
0
(164,842)
At 31 March 2025
4,748,549
3,869,138
59,421
8,677,108
Depreciation and impairment
At 1 April 2024
2,839,204
2,621,938
48,212
5,509,354
Depreciation charged in the year
178,535
146,155
7,909
332,599
Eliminated in respect of disposals
-
0
(163,244)
-
0
(163,244)
At 31 March 2025
3,017,739
2,604,849
56,121
5,678,709
Carrying amount
At 31 March 2025
1,730,810
1,264,289
3,300
2,998,399
At 31 March 2024
1,834,330
667,011
5,333
2,506,674
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
10
Tangible fixed assets
(Continued)
- 18 -

Freehold land with a cost of £178,398 (2024 - £178,398) has not been depreciated.

11
Fixed asset investments
2025
2024
Notes
£
£
Investments in subsidiaries
12
98
98
Movements in fixed asset investments
Shares in group undertakings
£
Cost
At 1 April 2024 & 31 March 2025
98
Carrying amount
At 31 March 2025
98
At 31 March 2024
98
12
Subsidiaries

These financial statements are separate company financial statements for Highland Colour Coaters Limited.

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Highland Galvanizers Limited
See below
Dormant
Ordinary
99.00
-
The registered office address of the subsidiaries is Pinefield Industrial Estate, Elgin, IV30 6FG.
13
Stocks
2025
2024
£
£
Raw materials and consumables
684,069
642,876
Work in progress
9,411
7,860
693,480
650,736
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 19 -
14
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
1,657,522
1,599,977
Corporation tax recoverable
19,578
-
0
Amounts owed by group undertakings
-
0
164,818
Other debtors
60,490
53,768
1,737,590
1,818,563
15
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
909,327
748,408
Amounts owed to group undertakings
414,082
-
0
Corporation tax
-
0
172,123
Other taxation and social security
258,390
294,964
Accruals and deferred income
310,499
379,901
1,892,298
1,595,396
16
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Government grants
18
153,675
184,515
17
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
320,970
159,635
Other timing differences
-
(5,997)
320,970
153,638
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
17
Deferred taxation
(Continued)
- 20 -
2025
Movements in the year:
£
Liability at 1 April 2024
153,638
Charge to profit or loss
167,332
Liability at 31 March 2025
320,970

18
Government grants
2025
2024
£
£
Arising from government grants
153,675
184,515

The company received an initial government grant in 2003 of £480,000, which is amortised over 25 years, with a balance of £70,592 included in the total above at the year end. The conditions of the grant have been satisfied.

A further grant was received in 2012 of £187,500, which has also been amortised over 25 years, with a balance of £83,083 included in the total above at the year end.

19
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
125,181
132,304

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.

20
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
120,000
120,000
120,000
120,000
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
20
Share capital
(Continued)
- 21 -
2025
2024
2025
2024
Preference share capital
Number
Number
£
£
Issued and fully paid
Redeemable convertible preference shares of £1 each
880,000
880,000
880,000
880,000
Preference shares classified as equity
880,000
880,000
Total equity share capital
1,000,000
1,000,000

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

The 10% non voting redeemable convertible preference shares are redeemable at the option of the company and there is no premium on redemption.

21
Capital commitments

Amounts contracted for but not provided in the financial statements:

2025
2024
£
£
Acquisition of tangible fixed assets
329,151
143,000
22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2025
2024
£
£
Aggregate compensation
406,401
401,943
Transactions with related parties

The company has taken advantage of the exemption available within FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 22 -
23
Ultimate controlling party

The company is a subsidiary of Highland Metals Limited. The ultimate parent company is Highland Metal Developments Limited, which 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/.

2025-03-31 2024-04-01 false false false CCH Software CCH Accounts Production 2025.200 R Sheils L Reed R G Steel G C Bulloch I Boyle J S Macintosh B Brown R G Steel SC212755 2024-04-01 2025-03-31 SC212755 bus:Director1 2024-04-01 2025-03-31 SC212755 bus:Director2 2024-04-01 2025-03-31 SC212755 bus:Director3 2024-04-01 2025-03-31 SC212755 bus:Director4 2024-04-01 2025-03-31 SC212755 bus:Director5 2024-04-01 2025-03-31 SC212755 bus:Director6 2024-04-01 2025-03-31 SC212755 bus:Director7 2024-04-01 2025-03-31 SC212755 bus:CompanySecretary1 2024-04-01 2025-03-31 SC212755 bus:RegisteredOffice 2024-04-01 2025-03-31 SC212755 2025-03-31 SC212755 2023-04-01 2024-03-31 SC212755 core:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 SC212755 core:RetainedEarningsAccumulatedLosses 2024-04-01 2025-03-31 SC212755 2024-03-31 SC212755 core:LandBuildings core:OwnedOrFreeholdAssets 2025-03-31 SC212755 core:PlantMachinery 2025-03-31 SC212755 core:FurnitureFittings 2025-03-31 SC212755 core:LandBuildings core:OwnedOrFreeholdAssets 2024-03-31 SC212755 core:PlantMachinery 2024-03-31 SC212755 core:FurnitureFittings 2024-03-31 SC212755 core:CurrentFinancialInstruments core:WithinOneYear 2025-03-31 SC212755 core:CurrentFinancialInstruments core:WithinOneYear 2024-03-31 SC212755 core:Non-currentFinancialInstruments core:AfterOneYear 2025-03-31 SC212755 core:Non-currentFinancialInstruments core:AfterOneYear 2024-03-31 SC212755 core:CurrentFinancialInstruments 2025-03-31 SC212755 core:CurrentFinancialInstruments 2024-03-31 SC212755 core:ShareCapital 2025-03-31 SC212755 core:ShareCapital 2024-03-31 SC212755 core:RetainedEarningsAccumulatedLosses 2025-03-31 SC212755 core:RetainedEarningsAccumulatedLosses 2024-03-31 SC212755 core:ShareCapital 2023-03-31 SC212755 core:RetainedEarningsAccumulatedLosses 2023-03-31 SC212755 2023-03-31 SC212755 core:ShareCapitalOrdinaryShareClass1 2025-03-31 SC212755 core:ShareCapitalOrdinaryShareClass1 2024-03-31 SC212755 core:ShareCapitalPreferenceShareClass1 2025-03-31 SC212755 core:ShareCapitalPreferenceShareClass1 2024-03-31 SC212755 core:LandBuildings core:OwnedOrFreeholdAssets 2024-04-01 2025-03-31 SC212755 core:PlantMachinery 2024-04-01 2025-03-31 SC212755 core:FurnitureFittings 2024-04-01 2025-03-31 SC212755 1 2024-04-01 2025-03-31 SC212755 1 2023-04-01 2024-03-31 SC212755 core:UKTax 2024-04-01 2025-03-31 SC212755 core:UKTax 2023-04-01 2024-03-31 SC212755 core:LandBuildings core:OwnedOrFreeholdAssets 2024-03-31 SC212755 core:PlantMachinery 2024-03-31 SC212755 core:FurnitureFittings 2024-03-31 SC212755 2024-03-31 SC212755 core:Non-currentFinancialInstruments 2025-03-31 SC212755 core:Non-currentFinancialInstruments 2024-03-31 SC212755 core:Subsidiary1 2024-04-01 2025-03-31 SC212755 core:Subsidiary1 1 2024-04-01 2025-03-31 SC212755 bus:OrdinaryShareClass1 2024-04-01 2025-03-31 SC212755 bus:PreferenceShareClass1 2024-04-01 2025-03-31 SC212755 bus:OrdinaryShareClass1 2025-03-31 SC212755 bus:OrdinaryShareClass1 2024-03-31 SC212755 bus:PreferenceShareClass1 2025-03-31 SC212755 bus:PreferenceShareClass1 2024-03-31 SC212755 bus:PrivateLimitedCompanyLtd 2024-04-01 2025-03-31 SC212755 bus:FRS102 2024-04-01 2025-03-31 SC212755 bus:Audited 2024-04-01 2025-03-31 SC212755 bus:FullAccounts 2024-04-01 2025-03-31 xbrli:pure xbrli:shares iso4217:GBP