REGISTERED NUMBER: 02165423 (England and Wales)

BUTTERWORTH STEEL PROCESSING LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

W R Broadhurst

D Butterworth

D P Broadhurst

Miss S A Broadhurst

Mrs K Broadhurst

REGISTERED OFFICE:

Emms Works

Pear Tree Lane

Dudley

West Midlands

DY2 0XD

REGISTERED NUMBER:

02165423 (England and Wales)

AUDITORS:

Sephton & Company LLP

Chartered Certified Accountants

Statutory Auditors

Marston House

5 Elmdon Lane

Marston Green

Solihull

West Midlands

B37 7DL

The directors present their strategic report for the year ended 30 April 2025.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

There has been no change in the principal activities of the company during the period.

PRINCIPAL RISKS AND UNCERTAINTIES

In common with its' competitors, the principal risk faced by the business relates to fluctuating steel prices, which the directors continue to monitor.

The directors have developed review procedures and control systems to effectively manage the principal strategic, financial and operational risks faced by the business.

The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due.

DEVELOPMENT AND PERFORMANCE

We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin and return on capital employed.

Turnover has increased by 8% compared to the previous period. Gross margin has decreased to 32% (2024 33%).

Overall there has been an operating profit of £3,033,766 (2024 £2,829,070) and a profit before tax of £3,195,257 (2024 £2,982,648). After taxation £2,386,151 has been added to reserves.

The business environment in which we operate continues to be challenging. The market is highly competitive and margins continue to be under pressure.

We consider that the financial position of the company at the year end is satisfactory, with adequate cash resources and a strong net asset position.

ON BEHALF OF THE BOARD:

W R Broadhurst - Director

28 October 2025

The directors present their report with the financial statements of the company for the year ended 30 April 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of steel merchants and processors.

DIVIDENDS

The total distribution of dividends for the year ended 30 April 2024 will be £1,439,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2024 to the date of this report.

W R Broadhurst

D Butterworth

D P Broadhurst

Miss S A Broadhurst

Other changes in directors holding office are as follows:

Mrs K Broadhurst - appointed 6 September 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Sephton & Company LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

W R Broadhurst - Director

28 October 2025

Opinion

We have audited the financial statements of Butterworth Steel Processing Limited (the 'company') for the year ended 30 April 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 April 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

-	certain disclosures of 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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.

We also considered potential financial or other pressures, opportunities, and motivations for fraud. As part of this discussion, we identified internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We also gained an understanding of the legal and regulatory framework applicable to the entity and the industry in which it operates, drawing on our broad sector experience and considered the risk of acts by the entity that were contrary to these laws and regulations, including fraud.

We focused on laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: the Health and Safety at Work Act 1974, the Transport Act 2000 and UK Anti-Money Laundering Regulations.

We made enquiries of management with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example we gained an understanding of, and inspected the records regarding the servicing of equipment, obtained and inspected relevant insurance policies including the goods in transit policy. Finally, we inspected and interrogated legal and professional fee expenditure to ensure no unusual expenditure which would be indicative of legal advice and, in turn, non-adherence with laws and regulations was evident.

Our audit procedures included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management.

The engagement team also completed the following procedures:

- Understood how management considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

- Performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- In addressing the risk of fraud through management override of controls, we tested journal entries and other adjustments for inappropriate or unusual journals outside of our expectations, as well as for any significant transactions outside the normal course of business, taking into consideration the scope for management to manipulate financial results;

- Assessed the appropriateness of key estimates and judgements made by management and challenged the assumptions used in accounting estimates. We considered the key estimates to be depreciation rates and going concern.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organization for fraud and identified the greatest potential for fraud in the following areas:

- Posting of unusual journals and complex transactions;

- Manipulation of amounts subject to significant judgement or estimate;

- Recognising revenue for transactions that do not meet the criteria for revenue recognition; and

- Completeness and valuation of related party transactions.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher detection of fraud as these may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Douglas Connell (Senior Statutory Auditor)

for and on behalf of Sephton & Company LLP

Chartered Certified Accountants

Statutory Auditors

Marston House

5 Elmdon Lane

Marston Green

Solihull

West Midlands

B37 7DL

28 October 2025

TURNOVER

3

12,055,085

11,110,382

Cost of sales

8,136,429

7,430,775

GROSS PROFIT

3,918,656

3,679,607

Administrative expenses

893,602

858,824

3,025,054

2,820,783

Other operating income

4

8,712

8,287

OPERATING PROFIT

6

3,033,766

2,829,070

Interest receivable and similar income

7

161,491

153,578

3,195,257

2,982,648

Interest payable and similar expenses

8

1,630

3,531

PROFIT BEFORE TAXATION

3,193,627

2,979,117

Tax on profit

9

807,476

746,460

PROFIT FOR THE FINANCIAL YEAR

2,386,151

2,232,657

PROFIT FOR THE YEAR

2,386,151

2,232,657

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,386,151

2,232,657

FIXED ASSETS

Tangible assets

11

824,540

892,372

Investment property

12

311,000

311,000

1,135,540

1,203,372

CURRENT ASSETS

Stocks

13

866,059

917,793

Debtors

14

4,108,924

3,109,259

Cash at bank and in hand

8,306,605

9,057,249

13,281,588

13,084,301

CREDITORS

Amounts falling due within one year

15

1,213,713

2,095,009

NET CURRENT ASSETS

12,067,875

10,989,292

TOTAL ASSETS LESS CURRENT LIABILITIES

13,203,415

12,192,664

PROVISIONS FOR LIABILITIES

17

51,649

57,049

NET ASSETS

13,151,766

12,135,615

CAPITAL AND RESERVES

Called up share capital

18

16,667

16,667

Capital redemption reserve

19

8,333

8,333

Retained earnings

19

13,126,766

12,110,615

SHAREHOLDERS' FUNDS

13,151,766

12,135,615

The financial statements were approved by the Board of Directors and authorised for issue on 28 October 2025 and were signed on its behalf by:

W R Broadhurst - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 May 2023

16,667

11,316,958

8,333

11,341,958

Changes in equity

Dividends

-

(1,439,000

)

-

(1,439,000

)

Total comprehensive income

-

2,232,657

-

2,232,657

Balance at 30 April 2024

16,667

12,110,615

8,333

12,135,615

Changes in equity

Dividends

-

(1,370,000

)

-

(1,370,000

)

Total comprehensive income

-

2,386,151

-

2,386,151

Balance at 30 April 2025

16,667

13,126,766

8,333

13,151,766

Cash flows from operating activities

Cash generated from operations

1

2,300,889

3,595,108

Interest paid

(1,630

)

(3,531

)

Tax paid

(768,627

)

(699,891

)

Net cash from operating activities

1,530,632

2,891,686

Cash flows from investing activities

Sale of tangible fixed assets

3,954

-

Interest received

159,780

138,800

Net cash from investing activities

163,734

138,800

Cash flows from financing activities

Amount introduced by directors

-

172

Equity dividends paid

(2,445,010

)

(864,000

)

Net cash from financing activities

(2,445,010

)

(863,828

)

(Decrease)/increase in cash and cash equivalents

(750,644

)

2,166,658

Cash and cash equivalents at beginning of year

2

9,057,249

6,890,591

Cash and cash equivalents at end of year

2

8,306,605

9,057,249

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30/4/25

30/4/24

£

£

Profit before taxation

3,193,627

2,979,117

Depreciation charges

59,490

70,986

Loss on disposal of fixed assets

4,388

-

Finance costs

1,630

3,531

Finance income

(161,491

)

(153,578

)

3,097,644

2,900,056

Decrease/(increase) in stocks

51,734

(636,389

)

(Increase)/decrease in trade and other debtors

(997,954

)

1,657,972

Increase/(decrease) in trade and other creditors

149,465

(326,531

)

Cash generated from operations

2,300,889

3,595,108

2.	CASH AND CASH EQUIVALENTS

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

Year ended 30 April 2025

30/4/25

1/5/24

£

£

Cash and cash equivalents

8,306,605

9,057,249

Year ended 30 April 2024

30/4/24

1/5/23

£

£

Cash and cash equivalents

9,057,249

6,890,591

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/5/24

Cash flow

At 30/4/25

£

£

£

Net cash

Cash at bank and in hand

9,057,249

(750,644

)

8,306,605

9,057,249

(750,644

)

8,306,605

Total

9,057,249

(750,644

)

8,306,605

1.	STATUTORY INFORMATION

Butterworth Steel Processing Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates

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.

Turnover

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

Rental income is recognised on a straight line basis over the course of the lease.

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

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

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, cash and bank balances, loans to or from related parties and current asset investments. All such instruments are measured initially and subsequently at the transaction price.

At the end of each reporting period debt financial assets are assessed for impairment, and their carrying value reduced if necessary. Any impairment is recognised in the profit and loss account.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

30/4/25

30/4/24

£

£

Steel sales

12,055,085

11,110,382

12,055,085

11,110,382

An analysis of turnover by geographical market is given below:

30/4/25

30/4/24

£

£

United Kingdom

12,055,085

11,110,382

12,055,085

11,110,382

4.	OTHER OPERATING INCOME

30/4/25

30/4/24

£

£

Rents received

8,712

8,287

5.	EMPLOYEES AND DIRECTORS

30/4/25

30/4/24

£

£

Wages and salaries

480,913

444,590

Social security costs

44,875

44,377

Other pension costs

2,986

3,007

528,774

491,974

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

30/4/25

30/4/24

Office and management

6

6

Manufacturing

7

7

13

13

30/4/25

30/4/24

£

£

Directors' remuneration

204,787

215,344

Information regarding the highest paid director is as follows:

30/4/25

30/4/24

£

£

Emoluments etc

53,002

58,822

6.	OPERATING PROFIT

The operating profit is stated after charging:

30/4/25

30/4/24

£

£

Depreciation - owned assets

59,490

70,986

Loss on disposal of fixed assets

4,388

-

Auditors' remuneration

3,000

3,000

Other non- audit services

7,228

7,022

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

30/4/25

30/4/24

£

£

Bank interest received

161,491

153,578

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

30/4/25

30/4/24

£

£

Corporation tax interest

1,630

3,531

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30/4/25

30/4/24

£

£

Current tax:

UK corporation tax

812,876

756,639

Deferred tax

(5,400

)

(10,179

)

Tax on profit

807,476

746,460

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

30/4/25

30/4/24

£

£

Profit before tax

3,193,627

2,979,117

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

798,407

744,779

Effects of:

Expenses not deductible for tax purposes

5,375

1,681

Income not taxable for tax purposes

3,694

-

Total tax charge

807,476

746,460