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

The directors are pleased to present the review of the business for the year ended 31 March 2025 and of the position of the company at the end of the year. The intention is to portray a balanced and comprehensive summary of the development and performance of the company consistent with the size and relatively uncomplicated nature of the business against the background of any risks and uncertainties that may exist. In doing so, the directors have taken into account only such facts and circumstances of which they are aware at the date of this report.

There has been no change in the principal activity.

The company operates out of its main site in Halesowen.

In 2024/25 total revenues fell back by 4.5%. Volumes were up by 5.5%, due to an increase of sales into the growing UK renewables market. However, the largest impact on both revenue and operating profit was the 9.5% fall in price. To offset this reduction the company continued investments in productivity, combined with previous streamlining of costs, enabling a reasonable trading result. Sustained profitability in future years is expected.

During the year the company passed a resolution conferring authority upon the directors to allot a number of ordinary and A ordinary shares, in order to support the company in exploring commercial opportunities. The company made an offer to all current shareholders to subscribe to a number of shares.This offer was taken up by some shareholders and new shares were issued accordingly.

The main risks and uncertainties for the business relate to the volatility of material prices.

The company undertakes regular reviews of the principle risks facing the business and, wherever possible, processes are put in place to monitor and minimise such risks.

The Directors give the highest priority to the safety and welfare of our colleagues and the public. We continue to strive to achieve a reduction in accidents and the severity of those accidents through promotion of safe working practices and awareness.

The company continues to hold relevant quality and environmental standards of ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018.

Efforts continue across the company to reduce its environmental impact. The company has continued with the project to monitor and reduce its Co2 emissions with the assistance of a third-party consulting company. The work undertaken involves constant power monitoring on all major machines as well as the introduction of an integrated carbon reduction system. The company has also continued work on devising their strategy and goals to decarbonise their operations on a global scale.

The key objective of the company is to achieve growth in operating profit, through focus on Gross Margin expansion and improved cost control. The company is committed to delivering the highest standards of customer service and to continuous improvement in all aspects of the business.

The key financial performance indicators of the company are turnover and operating profit.

The company considers key non-financial KPIs to be health and safety, where no significant accidents have occurred in the year,and customer retention rates, where no significant changes in the customer portfolio has occurred in the year.

The directors' overarching duty is to promote the success of the company for the benefit of its shareholders, with consideration of stakeholders' interests, as set out in section 172. The board regards a well governed business as essential for the successful delivery of its principal activity.

The directors are aware of their duty under section 172 to act in the way which they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:

a) the likely consequences of any decision in the long term;

b) the interests of the company's employees;

c) the need to foster the company's business relationships with suppliers, customers and others;

d) the impact of the company's operations on the community and the environment;

e) the desirability of the company maintaining a reputation for high standards of business conduct; and

f) the need to act fairly as between members of the company.

From the perspective of the board, the matters that it is responsible for under section 172 have been considered to an appropriate extent by the board in relation to this entity. The board has also considered relevant matters where appropriate.

Decision Making

To be able to respond to the changing economic environment in general and the steel industry in particular, the board of directors engages regularly with other key Davro officers and relevant third parties. Management information is prepared monthly, and comparisons made to both prior year performance and budgets. A relevant monthly commentary is also prepared and reviewed.

Employee Engagement

The Company's employees are fundamental to the success of the business. The company aims to be a responsible employer in its approach to the pay and benefits of employees. The health, safety and well-being of its employees is one of the primary considerations in the way the company conducts its business. Regular reviews of all company policies and procedures are undertaken and updated where applicable.

Business Relationships

The Company is fully committed in its approach to all business relationships, including employees, customers, suppliers and other key third parties alike. All interactions are conducted ethically and professionally underpinned by relevant company policies and procedures.

On behalf of the board

The directors are responsible for preparing the annual 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

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

The principal activity of the company in the year under review was that of metal processing and steel stockholding.

The results for the year are set out on page 10.

An interim dividend of £4 per share was paid on the 12 April 2024 in respect of Ordinary £1 shares and A Ordinary £1 shares. The total distribution of dividends for the year ended 31 March 2025 is £116,496.

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

The Company has purchased and maintained throughout the financial year directors' and officers' liability insurance in respect of itself and its directors.

The company agrees payment terms with suppliers at the time they enter into binding purchase contracts for the supply of goods and services. The company seeks to abide by these payment terms whenever they are satisfied that the supplier has provided the goods or services in accordance with the agreed terms and conditions.

The Company is exposed to a variety of financial risks and undertakes regular reviews to identify such risks and wherever possible put processes in place to mitigate such risks.

Liquidity risk arises from the Company's management of working capital and the finance charges on its debt instruments. It is the risk that the company will encounter difficulty in meeting its financial obligations as they fall due.

The company prepares rolling monthly cash flow forecasts. Actual cash and debt positions along with available facilities and headroom are reported daily. Monthly targets are set regarding debtors and creditors. The financial statements have been prepared using the going concern basis as the financial forecasts support the assumption that the company will be able to meet its obligations when they fall due.

The Company's liabilities include Invoice Financing at 2.05% above Base Rate. The company considers that the current interest rate risk is adequately covered through operating profit without resorting to any financial instruments.

The Company has limited exposure to foreign exchange rate fluctuations, as the majority of high value transactions are conducted in Sterling.

The company enters into forward foreign exchange contracts in order to mitigate any foreign exchange rate fluctuations.

The Company manages credit risk to customers by selecting and working with credit worthy customers and having close control and follow up of payment terms. The Company has a number of long-term trading relationships and contracts in place with a number of key customers and suppliers. Adequate credit insurance arrangements are also entered into in respect of the majority of trade debtors.

The company may be exposed to price risk arising from decreases in prices. This is a combination of currency risk, price risk and market risks. Market risk is closely monitored by the management using the available market information and appropriate valuation methods.

Other risks

The company maintains appropriate insurance cover for its critical business resource, for Business Interruption and associated events and has a robust Business Continuity Plan to deal with the consequences of such contingencies.

The company continues to improve processes as part of the performance of daily activities. It seeks to achieve improvements in the cost, quality and service to customers and to strengthen performance through the evolution of systems, standards and machinery.

An interim dividend of £2 per share on the Ordinary £1 shares and the 'A' Ordinary £1 shares was paid on 30 May 2025.

The directors remain optimistic about the future prospects of the company.

In accordance with the company's articles, a resolution proposing that bk plus Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Information with respect to the business review, performance and principal risks are disclosed within the strategic review as opposed to the directors report in accordance with S414C(11).

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.

We have audited the financial statements of Davro Steel Limited (the 'company') for the year ended 31 March 2025 which comprise the profit and loss account, 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 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 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's 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 other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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.

As explained more fully in the directors' responsibilities statement, 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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

• Enquiry of management and those charged with governance around actual and potential litigation and claims;

• Reviewing minutes of meetings of those charged with governance, if available;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 15 to 29 form part of these financial statements.

The notes on pages 15 to 29 form part of these financial statements.

The notes on pages 15 to 29 form part of these financial statements.

The notes on pages 15 to 29 form part of these financial statements.

Davro Steel Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 9, Hayes Trading Estate, Hingley Road, Halesowen, West Midlands, United Kingdom, B63 2RR.

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 amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

The financial statements of the company are consolidated in the financial statements of Ricol Holdings Limited. These consolidated financial statements are available from its registered office, Unit 9, Hayes Trading Estate, Hingley Road, Halesowen, West Midlands, B63 2RR.

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

The Directors believe that the going concern basis is appropriate after review of historical financial information showing profits and positive cash flows. The balance sheet is currently in a positive net asset and current net asset position. Future forecasts show profits and positive cash flow.

Revenue

Sales are recognised at the fair value of the consideration receivable or received and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the Company and valued added taxes.

The Company recognises revenue when

•    The significant risks and rewards of ownership have been transferred to the buyer;

•    The Company retains no continuing control over the goods;

•    The revenue value reliably reflects the commercial agreement made with the customer;

•    The Company expects the full value of the goods to be remitted;

•    The Buyer accepts invoicing of any undelivered, contracted for tonnes, at the end of a contractual

call-off period

Sale of Goods – B2B

The company manufactures and sells a range of slit steel coils and cut-to-length products. The range is bespoke to the individual customer, subject to the requirements set out in the customer’s purchase order. The sales price and delivery / call-off period is agreed at the negotiation of the customer purchase order. Sales are recognised either on the physical delivery of the goods, or the agreed written acceptance of the customer that undelivered, contracted for tonnes, may be invoiced in line with the contract at the end of the call-off period. Any rebate/discount amounts agreed as part of the commercial negotiations are accounted for as the contract progresses. Currently, no volume rebates exist outside these parameters. Sales are normally made with an insured credit term of 60 days, end of month. The element of financing is deemed immaterial and is disregarded in the measurement of revenue.

Sale of Services – B2B

The Company offers recoiling, slitting and cut-to-length services for a minority of its customers. Revenue is recognised in the accounting period in which the services are undertaken. The method of measurement is based on the tonnage processed.

Transfer of Title

Transfer of the title of the goods occurs either when the slit coils have been delivered to the location specified by the customer and invoiced or the call off period per the sales T&C’s has lapsed, the undelivered tonnes have been agreed with the customer and invoiced for delivery at a later date.

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

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

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 profit or loss.

Freehold property

The company has taken advantage of FRS102 transitional provision to retain the previous revaluation as deemed cost.

At each reporting period 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition and related 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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, 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 profit or loss, 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.

Financial assets, other than those held at fair value through profit and loss, 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. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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.

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, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

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.

The tax expense represents the sum of the tax currently payable and deferred 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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.

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.

There are no key judgements or estimates.

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

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

Their aggregate remuneration comprised:

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:

The standard rate of corporation tax changed form 19% to 25% with effect from 1 April 2023. The Company's profits for the year are taxed at an effective rate of 25%.

At the balance sheet reporting date, the standard rate of UK corporation tax is 25%. Deferred tax has therefore been provided at 25% (2024: 25%) being the rate at which future liabilities are expected to be payable.

The carrying value of land and buildings comprises:

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

Land and buildings with a carrying amount of £20,000 were revalued in 2009.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Stock recognised in cost of sales during the year as an expense was £80,304,522 (2024 - £83,287,616)

An impairment loss of £65,068 (2024 - £407,467) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.

Other creditors includes £1,181 re invoice discounting (2024-Nil) secured by a fixed and floating charge over the assets of the company.

Included in trade creditors is £1,703,995 (2024 - £1,703,995) which is unable to be paid as a a result of sanctions imposed.

The amount due to group undertakings is unsecured and repayable on demand. Interest is payable at 5% per annum.

The obligations under finance leases are secured by a charge over the assets to which the liability relates.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

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.

Ordinary shares

Each share is entitled to one vote in any circumstances.

Each share is entitled pari pasu to dividend payments or any other distribution.

Each share is entitled pari pasu to participate in a distribution arising from a winding up of the company.

'A' Ordinary shares

Each share is entitled to one vote at any meeting of the A ordinary shareholders concerning the rights and liabilities of such A shareholders.

Share Premium

During the year the company issued 702 Ordinary £1 shares at a premium of £114.20 per share and issued 4899 A Ordinary £1 shares at a premium of £71.00 per share.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Amounts contracted for but not provided in the financial statements:

An interim dividend of £2 per share on the Ordinary £1 shares and the 'A' Ordinary £1 shares was paid on 30 May 2025.

The company enters into forward currency contracts to mitigate exchange rate risk for certain foreign currency creditors. At 31 March 2025, the outstanding contracts all mature within 3 months of the year end.

The company is committed to buy US $705,000 to obtain sterling equivalent of £567,471 (2024 - $5,096,000 /£4,058,659). The contract was entered into on 30th January 2025 and matures after the year end.

The company is also committed to sell Euro 106,000 for £88,929. The contract was entered into on 24th October 2024 2025 and matures after the year end.

During the year, the Company entered into transactions with Solarport Systems Limited, a customer which has a mutual Director with Davro Steel Limited.  Total income generated from Solarport Systems Limited during the year amounted to £25,951,004 (2024: £3,198,573 for the 3 month period it was a related party). No provisions against outstanding payments are in place at the year-end nor have been expensed in the year.

The spouse of a Director became an employee of the Company in June 2024 and received a salary for their work. No amounts are outstanding at the year end.

Dividends totalling £11,036 (2024 - £22,072) were paid in the year in respect of shares held by the company's directors.

Ricol Holdings Limited, being the immediate and ultimate parent company, prepares consolidated group financial statements incorporating the results of the company.

The registered office address of Ricol Holdings Limited is Unit 9, Hayes Trading Estate, Hingley Road, Halesowen, West Midlands, B63 2RR.

The following are the parents of the largest and smallest groups in which this company's results are consolidated: