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

The principal activity of the group throughout the year was that of steel stockholding and distribution.

Rainham Steel specialises in the supply of universal beams and columns, parallel flange channels, angles, hollow sections and reinforcing products to a diverse range of industries. Our customers include steel stockholders, structural engineers, steel fabricators, construction companies, civil engineers, house builders and groundwork contractors.

The group holds stocks in excess of 140,000 tonnes of structural steel products at our Rainham and Scunthorpe sites, from where we service the UK, European and world markets. Our Scunthorpe site has significant purpose-built processing facilities offering customers the option of shot-blasting, painting, drilling, cutting and cambering. Our large modern fleet of heavy goods vehicles enable us to deliver throughout the UK normally within 24 hours.

The group's turnover decreased primarily as a result of selling prices reducing throughout the year. However, demand for the group's products in the year remained in line with the tonnages sold in both 2023/24 and 2022/​23. The UK steel market has seen approximately a 15% decrease in price during the year albeit this trend has stabilised during the start of the 2025/26 financial year. The group has seen continued demand for its products with a strong order book into the 2025/​​26 year.

The group maintains a comprehensive range of stock and continues its strategy of buying stock at the right price and at the right time. There has been continued investment in both our new Cut and Bent and Reinforcing facility in Althorpe, North Lincolnshire, and our sister facility in Rainham, Essex. This investment and its resultant increase in output has continued to contribute to the profitable result for the year.

As in the previous year, careful consideration was given on how to reward key personnel with the directors agreeing to vary the method of bonus provision.

At the balance sheet date, the group had net assets of £89,566,450 (2024: £87,485,385) reflecting the solid position of the group from a solvency and liquidity point of view.

The directors consider that the group maintains a prominent position in the UK Steel Stockholder market and is well placed to move into 2025/​26. The risks and uncertainties faced by the group continue to be generated by external market factors, principally the worldwide cost of raw materials, energy prices to steel producers and the ongoing disruption to supplies of steel.

The effect of steel import quotas continue to have an effect on day to day business and adds to the complexities of trading in a market that remains fiercely competitive. The directors continue to maintain sufficient and competitively priced stock levels to safeguard against the uncertainties caused by the import quotas that remain in force. The directors have also put in place additional measures to allow the group to maintain its purchasing when quotas are critical or exhausted.

The group's geographic location, buying strengths and stock management enable it to continue to thrive under these difficult market conditions. The group has continued to see increased demand for EAF and other “greener” steel rather than steel produced by blast furnace which has meant the group has significantly reconfigured its stockholding parameters. The ongoing uncertainty of UK steel producers ability to fully serve the UK market is being closely monitored by the group and in turn the group continues to establish new trading partners along with building on existing supply relationships.

The group's financial risk factors are set out below.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Foreign currency risk

The group’s principal foreign currency exposures arise from trading with overseas companies. The group enters into forward currency contracts in order to minimise its exposure to currency fluctuations arising with overseas customers and suppliers.

Interest rate risk

The group finances its operations through a combination of retained profits and bank borrowings. The group's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating rate facilities.

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Key performance indicators

Turnover has decreased to £189,860,390 for the year ending 31 March 2025, compared with £216,097,841 for the previous year. The decrease in the sales value is primarily due to the falling price of steel throughout the year. The group has maintained its market share when compared to last year.

The gross profit margin, which is the group’s key performance indicator, decreased during the year due to the hardening of purchase prices throughout the financial period. Overall gross profit decreased to £32,514,995 compared with £40,917,852 in the previous year.

Future developments

The group's selling prices have stabilised following the short-term high sales prices experienced across our sector in 2022 and 2023 and the subsequent reduction in 2024. The start of the 2025/​​26 year has seen consistent sales prices across most products. The group has continued to see high demand in the reinforcing sector in 2025/​26. The group's continued investment in both its Rainham and Althorpe Cut and Bent processing sites has meant processing capacity has significantly increased enabling the group to take full advantage of increased demand for products in this sector. The group, therefore, remains on target to achieve strong results for 2025/​​26.

Statement by the directors in performance of their statutory duties in accordance with Section 172(1) Companies Act 2006

The directors of the company and the group must act in accordance with a set of general duties. These duties are detailed in Section 172 of the Companies Act 2006 which is summarised as follows:

“A director of a company must act in the way he considers, 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 have regard (amongst other matters) to:

• the likely consequences of any decision in the long term,

• the interests of the company's employees,

• the need to foster the company's business relationships with suppliers, customers and others,

• the impact of the company's operations on the community and the environment,

• the desirability of the company maintaining a reputation for high standards of business conduct, and

• the need to act fairly as between members of the company.”

The following paragraphs summarise how the directors fulfil their duties:

Risk Management

The long-term success of the business is continually managed by identifying, evaluating, managing the risks encountered by the business and ensuring appropriate measures are in place to mitigate those risks. More details on these can be found stated earlier in this Strategic Report.

Our people

Our workforce is key to the business and for the business to continue to succeed we need to manage performance and develop and encourage talent, whilst ensuring the business operates as efficiently and effectively as possible. The directors place the health, safety and wellbeing of our people at the forefront of all decisions.

Business Relationships

The directors and key senior management maintain good working relationships with suppliers, customers and other strategic partners to ensure our business can continue to be effective and successful. Regular contact is maintained throughout the year to ensure we have a better understanding of our customers’ requirements and we aim to settle our suppliers promptly to obtain the best possible terms and support.

Community and Environment

We appreciate that, most of all, business operations have an impact on the community and the environment. The directors ensure that operations have the least possible impact on either of these. We work closely with local bodies and any regulatory body to ensure compliance and make changes to our operations to the benefit of the community and environment where possible.

High Standards of Business Conduct

The conduct of our employees is closely monitored by the directors and the wider management team to make sure the business conducts itself in a responsible manner in all activities. High standards are expected throughout our business and the group responds proactively to all feedback it receives.

Shareholders

The board is committed to openly engaging with our shareholders. It is important for the business that shareholders understand our strategy and objectives so these must be explained clearly with any issues and feedback properly considered.

On behalf of the board

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

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

The results for the year are set out on page 14.

No ordinary dividends were paid (2024: £nil). The directors do not recommend payment of a final dividend.

No donations to political parties were made in the year.

The group did not carry out any research and development activities in the year to 31 March 2025.

Suppliers

Our suppliers are fundamental to the group’s success.  We aim to forge long-term relationships with as many key suppliers as possible which in turn creates benefits for both parties.  We expect all suppliers to comply with our standards, such as those relating to environmental responsibility, modern slavery, data protection, human rights and ethics.  The group pays all suppliers as promptly as possible and reports its Prompt Payment Policy bi-annually at Gov.uk.

Customers

We aim to communicate with all our customers on a regular basis, using emails, letters and website updates.  In a fiercely competitive industry such as ours we endeavour to build long-lasting business relationships with as many customers as possible by ensuring that product quality, delivery consistency and availability of material is maintained throughout the year.

Others

The group recognises its responsibilities to the community in which it operates and continues to make charitable donations to local charities both in North Lincolnshire and Essex.

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 group and company, and of the profit or loss of the group 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;

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

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

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 auditor of the company 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 auditor of the company is aware of that information.

In accordance with s414C(11) of the Companies Act 2006, the information relating to future developments and financial risk management are included in the Strategic Report.

Measures ongoing and undertaken through FY2025:

• Ongoing implementation of Euro VI E Compliant HGV Trucks - the group replaced 7 heavy goods vehicles (HGVs) with the latest Euro VIE compliant models.

• Transition to Renewable Electricity Sources - 100% of purchased electricity during 2024/25 came from renewable resources.

• Replacement of computers – the group has upgraded all computers to new energy-efficient models which reduce power consumption, lowers carbon emissions and supports e-waste recycling. New models are built with recyclable materials offering better performance and assisting the group to meet sustainability goals while improving productivity.

• Reconfiguration of computer settings – the group is committed to reducing energy consumption and has implemented a policy to reconfigure all computers to automatically restart and enter idle mode daily. By reducing unnecessary energy use and extending the lifespan of hardware, this measure contributes to the group’s broader sustainability goals, lowering carbon footprint and supporting responsible IT resource management.

Measures prioritised for implementation in FY2026:

• Continuation of replacement HGV vehicles with the latest most fuel efficient and low emission models aimed at lowering the group’s carbon output.

• Consideration is being given to implementing combustion air preheat systems on selected production machinery aimed at reducing emissions and increasing energy efficiency and productivity.

• Increased investment in Renewable Energy Solutions.

• Continued investment in Electric and Hybrid Vehicles.

We have audited the financial statements of Rainham Steel Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Total 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 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 FRS 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 group's and the parent 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 group and parent 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 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

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 group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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 group's and parent 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 group or parent 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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• We identified the laws and regulations applicable to the Group through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the Group operates;

• We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, trading standards and health and safety legislation;

• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• Performed analytical procedures to identify any unusual or unexpected relationships;

• Tested journal entries to identify unusual transactions;

• Assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

• Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• Agreeing financial statement disclosures to underlying supporting documentation;

• Enquiring of management as to actual and potential litigation and claims; and

• Reviewing correspondence with HMRC and any other relevant regulators as required.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.

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 £nil (2024: £nil).

Rainham Steel Holdings Limited (“the Company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Orbital House, 20 Eastern Road, Romford, Essex, RM1 3PJ and its business address is Steel Approach, Rainham, Essex, RM13 9PF.

The group consists of Rainham Steel 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 group. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The consolidated financial statements incorporate those of Rainham Steel Holdings Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). 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.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

The parent company has taken the exemption from separately presenting its own statement of cash flows.

The directors have assessed the Group and Company’s ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. The assessment considered forecast trading volumes, steel price sensitivities, operating cash flows, available liquid resources and committed financing facilities, and included downside scenarios and stress testing. The Group and Company maintains sufficient liquidity headroom and has no financial covenants. Based on this assessment, the directors concluded there are no material uncertainties that may cast significant doubt on the Group and Company’s ability to continue as a going concern.

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

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

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

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is defined as actual cost and 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.

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 the profit or loss account.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 trade and other receivables 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.

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.

Basic financial liabilities, including trade and other payables, 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.

The group enters into foreign exchange forward contracts to manage its exposure to fluctuations in foreign currency rates. FX forward contracts are recognised as financial instruments in accordance with Sections 11 and 12 of FRS 102. They are initially recognised at fair value on the date the contract is entered into and subsequently re-measured at each reporting date.

Equity instruments issued by the group 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 group.

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.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

The group operates an Employee Benefit Trust (EBT) and has de facto control of the shares held by the trust and bears their benefits and risks. The group records assets and liabilities of the trust as its own. Consideration paid by the EBT for shares of the companies within the group is deducted from equity. Finance costs and administrative expenses incurred by the group in relation to the EBT are recognised on an accruals basis.

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.

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the company at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the initial transaction dates.

Foreign exchange differences are expensed or credited to the Statement of Comprehensive Income with administrative expenses.

In the application of the group’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.

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

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the tangible fixed assets and note 1.5 for the useful economic lives for each class of asset.

The level of stocks net of stock provisions are set out in note 14. For each line of stock, a provision may be made due to the age and condition of the stock, or where the Net Realisable Value is less than cost. Net Realisable Value is the estimated selling price for stocks less all estimated costs of completion and costs necessary to make the sale. The estimated selling price for each stock line is a judgement based mainly on recent selling patterns for that product.

The whole of the turnover is 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 for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024 - 4).

Investment income includes the following:

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:

Included within the cost of land and buildings is freehold land of £5,053,757 (2024: £2,646,257) that is not depreciated.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted £33,144 (2024: £677,629) for the year.

At the year end the market value of fixed asset investments was £37,874 (2024: £34,555).

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

All of the subsidiary companies are registered to Orbital House, 20 Eastern Road, Romford, Essex, RM1 3PJ.

The bank holds an Unscheduled Mortgage Debenture dated 16 August 1979 incorporating a fixed and floating charge over all current and future assets of the group.

An unlimited composite guarantee dated 11 June 2002 exists between the company, Rainham Steel Tubes Limited and Rainham Steel Company Limited.

Loans provided by directors and other related parties are disclosed in notes 29 and 30.

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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

A deferred tax asset of £596,126 (2024: £1,741,332) has been recognised based on tax losses carried forward available for use against future profits of the group.

The balance of the other timing differences relates to a liability of £43,750 (2024: £43,750) in respect of contributions made to the group's Employment Benefit Trust.

The deferred taxation charge for the year was at 25% (2024: 25%).

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.

On 6 June 2017 the Ordinary shares in issue were redesignated as Ordinary A shares. On the same date, the rights attached to the Ordinary A shares were varied so that the shares have rights to dividends but are not entitled to participate in capital distributions in excess of £75,000,000 on winding up of the Company or proceeds from an exit. The Ordinary A shares have full voting rights.

On 6 June 2017, 432,625 Ordinary B shares with a par value of £0.001 were issued. The shares have rights to dividends and are entitled to capital distributions only in excess of £75,000,000 on winding up of the Company or proceeds from an exit. The Ordinary B shares have no voting rights.

Other reserves

In 1997 Rainham Steel Company Limited ("the company") created an Employee Benefit Trust. The purpose of the Trust is to encourage and facilitate employees and former employees of the company to hold shares in the company.

Contributions to the Trust are not charged to the profit and loss account until the shares vest in employees and former employees of the company. The group made no contributions in the year to the Trust.

In the year ended 31 March 2005 the Trust exchanged 470 ordinary shares in Rainham Steel Company Limited for 173,000 ordinary shares of £0.001 in Rainham Steel Holdings Limited. The transaction was a share for share exchange and there was no cash consideration.

The Employee Benefit Trust reserve equates to the contributions paid into Rainham Steel Employee Benefit Trust of £375,000, which were used to acquire the ordinary shares in Rainham Steel Holdings Limited. Additionally a dividend of £176,532 was declared in 2005 but is yet to be paid across and is offset against this reserve. In the directors' opinion the value of the investments is not less than the cost.

Capital redemption reserve

During the year ended 31 March 2023 the company repurchased Ordinary B shares from a former director, which were cancelled on the date of repurchase, creating the capital redemption reserve.

Merger reserve

The merger reserve arose due to the difference between the assets acquired in the group reconstruction and the nominal value of shares issued in exchange. Section 612 of the Companies Act 2006 has been applied.

Profit and loss reserve

This reserve records the cumulative profits and losses arising in each year.

At the balance sheet date the group had committed to forward currency contracts to £1,670,106 in EUR (2024: £1,100,279). The fair value of these contracts at the balance sheet date amounted to a gain of £2,793 (2024: £7,145 loss).

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

Amounts contracted for but not provided in the financial statements:

In addition to the amounts above, included within prepayments at the balance sheet date is £413,154 (2024: £47,932) relating to deposits paid for capital commitments.

No guarantees have been given or received.

Key management personal remuneration is that of the directors' remuneration, as disclosed in note 7 of the financial statements.

The group has elected to take advantage of the exemption from the requirements of FRS 102 to disclose transactions with other members of the group in these consolidated financial statements.

The group charged management expenses during the year to Rainham Steel Investments Limited totalling £114,002 (2024: £115,247). The group paid rent of £1,389,055 (2024: £1,528,000) to Rainham Steel Investments Limited. The group made sales of £145 (2024: £232,608) to Rainham Steel Investments Limited. During the year the group charged wages costs to Rainham Steel Investments Limited totalling £nil (2024: £58,954). During the year the group purchased land, at market value, from Rainham Steel Investments Limited amounting to £2,300,000 (2024: £nil). At the year end £5,002,345 (2024: £5,179,638) was owing to Rainham Steel Investments Limited, included in creditors due within one year. The group is related to Rainham Steel Investments Limited by virtue of common management and control.

The group paid rent of £90,000 (2024: £90,000) to Voric (Scunthorpe) Limited. At the year end £27,000 (2024: £27,000) was owing to Voric (Scunthorpe) Limited, included in creditors due within one year. The group is related to Voric (Scunthorpe) Limited by virtue of common management and control.

The group paid rent of £111,000 (2024: £111,000) to Morelands Industrial Estate Limited. At the year end £33,000 (2024: £33,000) was owing to Morelands Industrial Estate Limited, included in creditors due within one year. The group is related to Morelands Industrial Estate Limited by virtue of common management and control.

During the year the group made purchases amounting to £9,154 (2024: £28,491) on behalf of and paid rent at market rates of £25,502 (2024: £nil) to the W. J. Ives Accumulation and Maintenance Settlement. Management expenses were made to the fund of £nil (2024: £83,179). At the year end an amount of £458,191 (2024: £567,345) was owed to the fund, and is included in creditors due after one year.

At the year end an amount of £12,209,340 (2024: £12,507,300) was owed to T. Webb, a director, and is included in creditors due after one year. The loan has no repayment terms set. No interest was paid on this loan balance both during this year and the preceding year.

At the year end an amount of £nil (2024: £98,661) was owed to K. F. Ives, a director, and is included in creditors due after one year. No interest was paid on this loan balance both during this year and the preceding year.

At the year end an amount of £8,400 (2024: £497,917) was owed to A. M. Chapman, a director, and is included in creditors due after one year. No interest was paid on this loan balance both during this year and the preceding year.

The controlling party is T Webb by virtue of his majority control of the ordinary share capital of the company.