REGISTERED NUMBER: 05243221 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

B.F.A. RECYCLING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

T Haley

D Holder

L Haley

S Haley

SECRETARY:

K Haley

REGISTERED OFFICE:

55 Loudoun Road

St John's Wood

London

NW8 0DL

REGISTERED NUMBER:

05243221 (England and Wales)

AUDITORS:

MGR SD Limited

Chartered Accountants

Statutory Auditors

55 Loudoun Road

St John's Wood

London

NW8 0DL

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

REVIEW OF BUSINESS

During the financial year, the company maintained operational continuity and managed to process consistent volumes, despite the challenges which arose within the metal recycling sector. Although prices have remained relatively stable, we have seen an increase in operational costs, tighter margin gaps and a rise in business failures across smaller independent recycling sites. These factors reinforced the need for tighter credit terms and continuous reviews on spending within the company.

By investing in the necessary machinery and vehicles, we have ensured that the operating capability of the company has been maintained and all relevant laws and regulations have been complied with. We continue to export certain trade materials and, by keeping a close eye on emerging metal recycling markets worldwide, we have seen an improved return on the margins of these core products.

The company uses a number of key financial performance indicators in assessing and driving performance. The key financial performance indicators used by the company are:

2025

2024

Sales

£21.03m

£18.05m

Gross profit margin

13.92%

14.48%

Receivables days

4.6

6.5

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the company and the execution of the chosen strategy are subject to a number of risks.

Metal price risk

Exposure to fluctuations in global metal prices is limited by the company's policy of holding a low level of stock and ensuring that the stock holding period remains short.

Credit risk

The company seeks to manage the risk of customers defaulting through the use of stringent customer acceptance thresholds and credit limits. In addition a number of approaches are utilised including payment in advance where appropriate.

ON BEHALF OF THE BOARD:

T Haley - Director

22 December 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of metal recycling.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £ 694,000 .

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1 April 2024 to the date of this report.

The beneficial interests of the directors holding office at 31 March 2025 in the shares of the company, according to the register of directors' interests, were as follows:

31.3.25

1.4.24

Ordinary-A shares of £1 each

T Haley

76

76

D Holder

-

-

L Haley

-

-

S Haley

-

-

Ordinary-B shares of £1 each

T Haley

-

-

D Holder

24

24

L Haley

-

-

S Haley

-

-

These directors did not hold any non-beneficial interests in any of the shares of the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, MGR SD Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T Haley - Director

22 December 2025

Opinion

We have audited the financial statements of B.F.A. Recycling Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are:

- Financial Reporting Standard 102;

- The Companies Act 2006;

- UK tax legislation;

- Scrap Metal Dealers Act 2013;

- UK General Data Protection Regulation;

- UK employment legislation;

- UK environmental legislation; and

- UK health and safety legislation.

We assessed the risks of material misstatement in respect of fraud as follows:

- made enquiries of management and those charged with governance;

- held an audit team planning meeting to discuss areas that may be susceptible to misstatement;

- carried out analytical procedures to identity unusual or unexpected trends;

- reviewed the systems in place and considered the potential for override of controls; and

- considered related party relationships and transactions.

Based on the results of our risk assessment, we designed our audit procedures to identify non-compliance with such laws and regulations identified above. We also considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach and challenged key assumptions and judgments made by management.

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements may not be detected. Absolute assurance is not possible due to practical and legal limitations to obtaining audit evidence as well as time and cost constraints. Misstatements are considered material if they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements.

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

Use of our report

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

Lydia Warde FCA (Senior Statutory Auditor)

for and on behalf of MGR SD Limited

Chartered Accountants

Statutory Auditors

55 Loudoun Road

St John's Wood

London

NW8 0DL

22 December 2025

REVENUE

21,031,503

18,047,673

Cost of sales

(18,103,934

)

(15,434,631

)

GROSS PROFIT

2,927,569

2,613,042

Administrative expenses

(2,022,305

)

(2,603,587

)

905,264

9,455

Other operating income

77,169

78,915

Gain/loss on revaluation of investment property

-

68,059

OPERATING PROFIT

4

982,433

156,429

Interest receivable and similar income

902

418

983,335

156,847

Interest payable and similar expenses

5

(15,662

)

(16,351

)

PROFIT BEFORE TAXATION

967,673

140,496

Tax on profit

6

(383,363

)

102,625

PROFIT FOR THE FINANCIAL YEAR

584,310

243,121

PROFIT FOR THE YEAR

584,310

243,121

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

584,310

243,121

FIXED ASSETS

Property, plant and equipment

8

2,455,174

2,340,010

Investment property

9

1,820,000

1,820,000

4,275,174

4,160,010

CURRENT ASSETS

Inventories

10

186,250

150,200

Debtors

11

685,789

554,373

Cash at bank and in hand

1,146,944

963,503

2,018,983

1,668,076

CREDITORS

Amounts falling due within one year

12

(1,445,241

)

(947,124

)

NET CURRENT ASSETS

573,742

720,952

TOTAL ASSETS LESS CURRENT LIABILITIES

4,848,916

4,880,962

CREDITORS

Amounts falling due after more than one year

13

(138,300

)

(191,626

)

PROVISIONS FOR LIABILITIES

17

(519,655

)

(388,685

)

NET ASSETS

4,190,961

4,300,651

CAPITAL AND RESERVES

Called up share capital

18

100

100

Fair value reserve

19

477,763

477,763

Retained earnings

19

3,713,098

3,822,788

SHAREHOLDERS' FUNDS

4,190,961

4,300,651

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

T Haley - Director

D Holder - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

100

4,222,795

422,635

4,645,530

Changes in equity

Dividends

-

(588,000

)

-

(588,000

)

Total comprehensive income

-

187,993

55,128

243,121

Balance at 31 March 2024

100

3,822,788

477,763

4,300,651

Changes in equity

Dividends

-

(694,000

)

-

(694,000

)

Total comprehensive income

-

584,310

-

584,310

Balance at 31 March 2025

100

3,713,098

477,763

4,190,961

Cash flows from operating activities

Cash generated from operations

1

1,313,928

1,123,262

Interest paid

(7,146

)

(8,241

)

Interest element of hire purchase payments paid

(8,516

)

(8,110

)

Tax paid

22,899

(255,086

)

Net cash from operating activities

1,321,165

851,825

Cash flows from investing activities

Purchase of tangible fixed assets

(972,963

)

(659,365

)

Purchase of investment property

-

(1,941

)

Sale of tangible fixed assets

576,000

17,000

Interest received

902

418

Net cash from investing activities

(396,061

)

(643,888

)

Cash flows from financing activities

Loan repayments in year

(21,615

)

(20,520

)

Capital repayments in year

(26,631

)

(120,378

)

Amount introduced by directors

583

-

Amount withdrawn by directors

-

(196

)

Equity dividends paid

(694,000

)

(588,000

)

Net cash from financing activities

(741,663

)

(729,094

)

Increase/(decrease) in cash and cash equivalents

183,441

(521,157

)

Cash and cash equivalents at beginning of year

2

963,503

1,484,660

Cash and cash equivalents at end of year

2

1,146,944

963,503

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

31.3.25

31.3.24

£

£

Profit before taxation

967,673

140,496

Depreciation charges

444,524

570,428

Profit on disposal of fixed assets

(162,725

)

(11,378

)

Gain on revaluation of fixed assets

-

(68,059

)

Finance costs

15,662

16,351

Finance income

(902

)

(418

)

1,264,232

647,420

(Increase)/decrease in inventories

(36,050

)

33,800

(Increase)/decrease in trade and other debtors

(154,315

)

471,278

Increase/(decrease) in trade and other creditors

240,061

(29,236

)

Cash generated from operations

1,313,928

1,123,262

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,146,944

963,503

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

963,503

1,484,660

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

963,503

183,441

1,146,944

963,503

183,441

1,146,944

Debt

Finance leases

(135,297

)

26,631

(108,666

)

Debts falling due within 1 year

(20,024

)

(2,717

)

(22,741

)

Debts falling due after 1 year

(130,129

)

24,332

(105,797

)

(285,450

)

48,246

(237,204

)

Total

678,053

231,687

909,740

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

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

Tangible fixed assets

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.

Freehold property

-

2% on cost and in accordance with the property

Plant and machinery

-

15% on cost

Fixtures, fittings and equipment

-

15% on cost

Motor vehicles

-

25% on reducing balance

Land included in freehold property is not depreciated.

Investment property

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

Stocks

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Other investments

Other investments are valued at cost less any provision for impairment.

3.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

1,281,502

1,580,544

Social security costs

143,353

181,772

Other pension costs

21,436

20,688

1,446,291

1,783,004

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

31.3.25

31.3.24

Production and sales

23

24

Administration

5

5

28

29

31.3.25

31.3.24

£

£

Directors' remuneration

380,321

578,010

Directors' pension contributions to money purchase schemes

2,643

2,287

Information regarding the highest paid director is as follows:

31.3.25

31.3.24

£

£

Emoluments etc

103,363

225,534

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.3.25

31.3.24

£

£

Other operating leases

2,703

7,091

Depreciation - owned assets

419,136

477,786

Depreciation - assets on hire purchase contracts

25,388

92,643

Profit on disposal of fixed assets

(162,725

)

(11,378

)

Auditors' remuneration

34,770

23,270

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.25

31.3.24

£

£

Bank loan interest

7,146

8,241

Hire purchase

8,516

8,110

15,662

16,351

6.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

31.3.25

31.3.24

£

£

Current tax:

UK corporation tax

252,394

(22,899

)

Deferred tax

130,969

(79,726

)

Tax on profit

383,363

(102,625

)