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 31st March 2025 and of the position of the group at the end of the year. The intention is to portray a balanced and comprehensive summary of the development and performance of the group 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 group 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.
Ricol Holdings Limited is a holding company and does not trade outside of the group.
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 subsidiary continues to hold relevant quality and environmental standards of ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018.
Efforts continue across the group to reduce its environmental impact. During the year, the company started an ongoing 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 group has also begun work on devising their strategy and goals to decarbonise their operations on a global scale. More detailed information is contained in the director's report.
The key objective of the group is to achieve growth in operating profit, through focus on Gross Margin expansion and improved cost control. The group 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 group are turnover and operating profit.
| 2025 | 2024 |
|
|
|
Turnover | 87,766,286 | 91,786,233 |
|
|
|
Operating profit | 1,546,316 | 1,322,451 |
|
|
|
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 group 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 group 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 group's employees;
c) the need to foster the group's business relationships with suppliers, customers and others;
d) the impact of the group's operations on the community and the environment;
e) the desirability of the group maintaining a reputation for high standards of business conduct; and
f) the need to act fairly as between members of the group.
From the perspective of the board, the matters that it is responsible for considering 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 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 group's employees are fundamental to the success of the business. The group 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 group conducts it's business. Regular reviews of all group policies and procedures are undertaken and updated where applicable.
Business Relationships
The group 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 group policies and procedures.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 10 for the group and page 13 for the company.
Interim dividends totalling £100,000 (2024 - £180,000) were paid during the year. The directors recommend that no final dividend be paid.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group agrees payment terms with suppliers at the time they enter into binding purchase contracts for the supply of goods and services. The group 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.
Financial risk factors
The group 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
Liquidity risk arises from the group's management of working capital and the finance charges on its debt instruments. It is the risk that the group will encounter difficulty in meeting its financial obligations as they fall due.
The group 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 group will be able to meet its obligations when they fall due.
Interest rate risk factors
The group's liabilities include Invoice Financing at 2.05% above Base Rate. The group considers that the current Interest rate risk is adequately covered through operating profit without resorting to any financial instruments.
Foreign currency risk
The group has limited exposure to foreign exchange rate fluctuations, as the majority of high value transactions are conducted in Sterling.
The group enters into forward foreign exchange contracts in order to mitigate any foreign currency exchange rate fluctuations.
Credit risk
The group manages credit risk to customers by selecting and working with credit worthy customers and having close control and follow up of payment terms. The group 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.
Price risk
The group 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 group 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.
The directors remain optimistic about the future prospects of the group.
In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the group will be put at a General Meeting.
During the year the company and its subsidiary company consumed 577,417 kWh (2024 – 621,279 kWh) of energy, the equivalent of 148 tonnes (2024 - 159 tonnes) of carbon dioxide. These figures were obtained from supplier energy bills.
This consumption equated to 0.0012567 tonnes (2024 - 0.0014276 tonnes) of carbon dioxide for every tonne of steel produced.
In the year the subsidiary company had solar panels fitted to the roof of their factory to further reduce energy consumption. The installation was completed in January 2025.
During the year, the group continued an ongoing project to monitor and reduce their 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 group has also continued work on devising their strategy and goals to decarbonise their operations on a global scale.
Following the work completed in the year, the company has determined the following greenhouse gas emissions:
| kgCO2e | tonne CO2e |
Scope 1 | 7640.00 | 7.64 |
Scope 2 | 121760.00 | 121.76 |
Total | 129400.00 | 129.40 |
The company is in the process of mapping and collecting data for Scope 3 GHG emissions from their supply chain.
The Company aims to inform its suppliers and employees of its decarbonisation goals and help reduce its Scope 3 emissions through the projects implemented over the next decade.
We have audited the financial statements of Ricol Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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).
Basis for 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
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.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, 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 16 to 34 form part of these financial statements.
The notes on pages 16 to 34 form part of these financial statements.
The notes on pages 16 to 34 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,117,495 (2024 : £276,436 profit).
The notes on pages 16 to 34 form part of these financial statements.
The notes on pages 16 to 34 form part of these financial statements.
The notes on pages 16 to 34 form part of these financial statements.
Ricol Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 9, Hayes Trading Estate, Hingley Road, Halesowen, West Midlands, England, B63 2RR.
The group consists of Ricol Holdings Limited and all of its subsidiaries.
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. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
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 consolidated group financial statements consist of the financial statements of the parent company Ricol Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2025.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Going concern (continued)
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 Group and valued added taxes.
The Group recognises revenue when
• The significant risks and rewards of ownership have been transferred to the buyer;
• The group retains no continuing control over the goods;
• The revenue value reliably reflects the commercial agreement made with the customer;
• The group 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 subsidiary 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 subsidiary 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.
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 recognised in the profit and loss account.
Freehold property
The group has taken advantage of FRS102 transitional provision to retain the previous revaluation as deemed cost.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 group 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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
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 group's contractual obligations expire or are discharged or cancelled.
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 group’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 if, and only if, there is 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.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
Rentals receivable under operating leases are charged to profit or loss on a straight line basis over the term of the relevant lease.
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 group.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors to whom retirement benefits were accruing was 2 (2024 - 2).
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 carrying value of land and buildings comprises:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
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:
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:
Subsidiary
Davro Steel Ltd
Registered office: Unit 9, Hayes Trading Estate, Halesowen, West Midlands, B63 2RR
Nature of business: Metal processing and steel stockholding
| % holding |
Class of shares |
|
Ordinary | 68.35 |
Ordinary “A” | 63.41 |
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.
The amount due to group undertakings is unsecured and repayable on demand. Interest is receivable at 5% per annum.
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 result of sanctions imposed.
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 group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The retained earnings represent cumulative profits and losses net of dividends and other adjustments.
At the reporting end date the group 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:
The subsidiary company paid an interim dividend of £2 per share on the Ordinary £1 shares and the 'A' Ordinary £1 shares on 30 May 2025.
The subsidiary 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 subsidiary 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 30 January 2025 and matures after the year end.
The subsidiary company is also committed to sell Euro 106,000 for £88,929. The contract was entered into on 24th October 2024 and matures after the year end.
The following amounts were outstanding at the reporting end date:
During the year, the group 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 of a subsidiary entity became an employee of the subsidiary entity in June 2024 and received a salary for their work. No amounts are outstanding at the year end.