REGISTERED NUMBER: 13892530 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2025

FOR

STEELSTRIP HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

Mr D Macready

Mrs S J Ostins

Mr R W Burton

REGISTERED OFFICE:

Pensnett Road

Dudley

United Kingdom

DY1 2HA

REGISTERED NUMBER:

13892530 (England and Wales)

AUDITORS:

Stanton Ralph & Co Limited

Chartered Accountants

Statutory Auditor

The Old Police Station

Whitburn Street

Bridgnorth

Shropshire

WV16 4QP

The directors present their strategic report of the company and the group for the year ended 31st March 2025.

REVIEW OF BUSINESS

The trading environment remained challenging throughout the period. Demand across construction, automotive and general manufacturing sectors continued to be subdued, with customers maintaining short-term, low-inventory purchasing patterns. European oversupply and competitive import availability contributed to continued downward pressure on steel prices for much of the year, despite some stabilisation emerging early in 2025.

The group experienced lower revenue across all divisions. Toll Processing activity decreased, reflecting reduced throughput from customers. Steel Sales were significantly affected by limited contractual opportunities and compressed resale margins, leading to a material reduction in turnover compared with the prior year. Laser Services also experienced reduced activity, although previous restructuring and targeted market focus continue to provide a stable base for future development.

Overall gross margin declined, driven by lower activity levels and tighter pricing across the supply chain.

PRINCIPAL RISKS AND UNCERTAINTIES

The group faces operational, commercial and financial risks. Price volatility and fluctuating demand remain core commercial risks, managed through controlled purchasing aligned to confirmed orders and the avoidance of speculative stockholding. Credit risk is mitigated through credit insurance and close oversight of account exposure.

Financial risks are managed through a combination of term loans and invoice discounting facilities, with interest rate exposure primarily relating to the latter. Forecasts prepared by the directors indicate that the group has adequate financial resources to continue in operational existence for the foreseeable future.

Outlook

While underlying demand remained weak at the year end, steel input prices showed signs of stabilisation and sentiment from EU producers began to improve. Trading in the first half of FY26 has shown modest increases in throughput across both Toll Processing and Laser Services, indicating slightly improved customer activity levels. Any near-term uplift is expected to be driven mainly by restocking, with a more gradual recovery anticipated during 2025/26 as economic conditions stabilise and confidence improves.

Director Changes and Obituaries

The directors were deeply saddened by the sudden and unexpected passing of Mr Steven Dickens, Commercial Director and co-owner, on 22nd January 2025. The Board places on record its appreciation for his significant contribution to the business over many years and extends its sincere condolences to his family.

Following his passing, the directors have implemented appropriate arrangements to ensure continuity in commercial oversight and strategic decision making.

KEY PERFORMANCE INDICATORS

Although Tonnage processed is considered to be a key performance indicator of the group. However the group directors have chosen not to disclose these figures given the commercially sensitive nature.

Return on capital employed for the year was 5.6% (2024: 23.8%) after accounting for the adjustments required by Financial Reporting Standard 102. Return on capital is calculated as profit on ordinary activities before taxation divided by capital employed, which constitutes total assets less current liabilities, less cash plus overdraft and loans.

Turnover in the year decreased by 22.4% from £13,701,029 in 2024 to £10,634,754 in 2025. Despite the decline in turnover the gross profit margin increased from 31.2% to 36.3%.

ON BEHALF OF THE BOARD:

Mrs S J Ostins - Director

29th December 2025

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

DIVIDENDS

During the period dividends amounting to £444,500 (2024:£578,000) were paid to the shareholders of the company.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

Mr D Macready

Mrs S J Ostins

Mr R W Burton

Other changes in directors holding office are as follows:

Mr S J Dickens - deceased 22nd January 2025

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 company and the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Stanton Ralph & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs S J Ostins - Director

29th December 2025

Opinion

We have audited the financial statements of Steelstrip Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st March 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31st March 2025 and of the group's 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 group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 group's and the 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 the parent 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.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures include the following:

Enquiring of the directors and senior management.

Discussing among the engagement team, including the tax team, how and where fraud might occur in the financial statements.

Obtaining an understanding of the legal and statutory framework that the company operates in.The key laws and regulations we considered in this context include the Companies Act 2006, Tax Legislation and Environmental and Health and Safety legislation.

Audit response to risks identified

As a result of performing the above we identified the occurrence of revenue as a key audit matter.

In addition to the above, our procedures to respond to risks identified included the following:

Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations as detailed above.

Enquiring of management and the directors and external legal advisors concerning actual and potential litigation and claims.

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

Completing focused testing on revenue via a detailed review of a sample of documents supporting revenue recorded during the year.

In addressing the risk of fraud through management override of controls, reviewing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Ann Hill FCA (Senior Statutory Auditor)

for and on behalf of Stanton Ralph & Co Limited

Chartered Accountants

Statutory Auditor

The Old Police Station

Whitburn Street

Bridgnorth

Shropshire

WV16 4QP

29th December 2025

13,701,029

TURNOVER

3

10,634,754

9,420,915

Cost of sales

6,773,479

4,280,114

GROSS PROFIT

3,861,275

3,467,355

Administrative expenses

3,582,973

812,759

278,302

9,281

Other operating income

3,887

822,040

OPERATING PROFIT

5

282,189

259

Interest receivable and similar income

340

822,299

282,529

210,552

Interest payable and similar expenses

6

185,385

611,747

PROFIT BEFORE TAXATION

97,144

173,437

Tax on profit

7

76,742

438,310

PROFIT FOR THE FINANCIAL YEAR

20,402

Profit attributable to:

438,310

Owners of the parent

20,402

438,310

PROFIT FOR THE YEAR

20,402

-

OTHER COMPREHENSIVE INCOME

-

438,310

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

20,402

Total comprehensive income attributable to:

438,310

Owners of the parent

20,402

FIXED ASSETS

336,414

Intangible assets

10

207,968

2,141,810

Tangible assets

11

2,130,673

-

Investments

12

-

2,478,224

2,338,641

CURRENT ASSETS

250,247

Stocks

13

126,112

3,851,992

Debtors

14

2,795,603

38,487

Cash at bank and in hand

52,992

4,140,726

2,974,707

CREDITORS

4,487,113

Amounts falling due within one year

15

4,018,330

(346,387

)

NET CURRENT LIABILITIES

(1,043,623

)

2,131,837

TOTAL ASSETS LESS CURRENT LIABILITIES

1,295,018

CREDITORS

(899,833

)

Amounts falling due after more than one year

16

(445,213

)

(266,882

)

PROVISIONS FOR LIABILITIES

20

(298,490

)

(1,003

)

ACCRUALS AND DEFERRED INCOME

21

(11,294

)

964,119

NET ASSETS

540,021

CAPITAL AND RESERVES

4

Called up share capital

22

4

74,460

Share premium

74,460

889,655

Retained earnings

465,557

964,119

SHAREHOLDERS' FUNDS

540,021

The financial statements were approved by the Board of Directors and authorised for issue on 29th December 2025 and were signed on its behalf by:

Mr D Macready - Director

Mrs S J Ostins - Director

Mr R W Burton - Director

FIXED ASSETS

-

Intangible assets

10

-

-

Tangible assets

11

-

2,410,301

Investments

12

2,410,301

2,410,301

2,410,301

CURRENT ASSETS

41,911

Debtors

14

3,019

2,643

Cash at bank

733

44,554

3,752

CREDITORS

55,176

Amounts falling due within one year

15

49,468

(10,622

)

NET CURRENT LIABILITIES

(45,716

)

2,399,679

TOTAL ASSETS LESS CURRENT LIABILITIES

2,364,585

CREDITORS

1,901,804

Amounts falling due after more than one year

16

1,941,712

497,875

NET ASSETS

422,873

CAPITAL AND RESERVES

4

Called up share capital

22

4

74,460

Share premium

74,460

423,411

Retained earnings

348,409

497,875

SHAREHOLDERS' FUNDS

422,873

359,918

Company's profit for the financial year

369,498

The financial statements were approved by the Board of Directors and authorised for issue on 29th December 2025 and were signed on its behalf by:

Mrs S J Ostins - Director

Mr D Macready - Director

Mr R W Burton - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st April 2023

4

1,029,345

74,460

1,103,809

Changes in equity

Dividends

-

(578,000

)

-

(578,000

)

Total comprehensive income

-

438,310

-

438,310

Balance at 31st March 2024

4

889,655

74,460

964,119

Changes in equity

Dividends

-

(444,500

)

-

(444,500

)

Total comprehensive income

-

20,402

-

20,402

Balance at 31st March 2025

4

465,557

74,460

540,021

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st April 2023

4

641,493

74,460

715,957

Changes in equity

Dividends

-

(578,000

)

-

(578,000

)

Total comprehensive income

-

359,918

-

359,918

Balance at 31st March 2024

4

423,411

74,460

497,875

Changes in equity

Dividends

-

(444,500

)

-

(444,500

)

Total comprehensive income

-

369,498

-

369,498

Balance at 31st March 2025

4

348,409

74,460

422,873

Cash flows from operating activities

1,338,666

Cash generated from operations

1

1,809,016

(21,387

)

Interest paid

(21,386

)

(3,365

)

Interest element of hire purchase or finance lease rental payments paid

-

(104,792

)

Tax paid

(102,001

)

1,209,122

Net cash from operating activities

1,685,629

Cash flows from investing activities

-

Purchase of intangible fixed assets

86,394

(749,965

)

Purchase of tangible fixed assets

(700,950

)

667

Sale of tangible fixed assets

-

259

Interest received

340

(749,039

)

Net cash from investing activities

(614,216

)

Cash flows from financing activities

(442,907

)

Loan repayments in year

(433,743

)

816,044

Net (repayment)/increase invoice factor

(25,250

)

(40,488

)

Hire purchase repayments

-

-

Amount withdrawn by directors

(3,019

)

(88,168

)

Bank loan interest paid

(68,239

)

(97,632

)

Invoice financing interest paid

(94,164

)

-

Net increase/(decrease) in grants

12,007

(578,000

)

Equity dividends paid

(444,500

)

(431,151

)

Net cash from financing activities

(1,056,908

)

28,932

Increase in cash and cash equivalents

14,505

9,555

Cash and cash equivalents at beginning of year

2

38,487

38,487

Cash and cash equivalents at end of year

2

52,992

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

31.3.25

31.3.24

£

£

Profit before taxation

97,144

611,747

Depreciation charges

754,139

673,745

Profit on disposal of fixed assets

-

(19

)

Government grants

(1,716

)

(1,740

)

Finance costs

185,385

210,552

Finance income

(340

)

(259

)

1,034,612

1,494,026

Decrease in stocks

124,135

425,664

Decrease in trade and other debtors

1,059,408

1,283,288

Decrease in trade and other creditors

(409,139

)

(1,864,312

)

Cash generated from operations

1,809,016

1,338,666

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 31st March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

52,992

38,487

Year ended 31st March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

38,487

9,555

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

38,487

14,505

52,992

38,487

14,505

52,992

Debt

Debts falling due within 1 year

(479,494

)

(20,877

)

(500,371

)

Debts falling due after 1 year

(899,833

)

454,620

(445,213

)

(1,379,327

)

433,743

(945,584

)

Total

(1,340,840

)

448,248

(892,592

)

1.	STATUTORY INFORMATION

Steelstrip Holdings 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 General 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.

The presentation currency of the financial statements is the Pound Sterling (£), rounded to the nearest £1.

Going concern

The financial statements have been prepared on a going concern basis. The directors have reviewed the group's financial position, including its liquidity and funding arrangements, as well as its forecasts for the foreseeable future, which covers a period of 12 months from the date of approval of these financial statements.

In making this assessment, the directors have considered all relevant information including the group's current trading performance, available funding, and future projections. Based on this review, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future including the impact of the post balance sheet event detailed in note 24. Accordingly, they have prepared the financial statements on a going concern basis.

Basis of consolidation

The group financial statements have been prepared under the provision of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and applicable accounting standards.

The consolidated financial statements incorporate the financial statements of the company and entities that continue to be controlled by the Group (its subsidiaries). Control exists where the Group has the power to govern the financial and operating policies of the entity; generally conferred by holding a majority of voting rights.

All intra-group balances, transactions, income and expenses are eliminated on consolidation. The consolidated accounts are prepared using uniform accounting policies.