Company registration number 08103392 (England and Wales)
HI-TECH STEEL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
HI-TECH STEEL SERVICES LIMITED
COMPANY INFORMATION
Directors
I C Gorman
C M Gardner
J A Gorman
Secretary
I C Gorman
Company number
08103392
Registered office
Unit 1 Neills Road
Bold Industrial Park
St Helens
Merseyside
WA9 4TU
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Bankers
Lloyds Bank plc
13-15 Hardshaw Street
St Helens
Merseyside
WA10 1QZ
HI-TECH STEEL SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8 - 9
Notes to the financial statements
10 - 24
HI-TECH STEEL SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 1 -

The directors present the strategic report for the year ended 30 June 2025.

Review of the business

During this financial year, our business reflected many of the sector’s broader pressures. Turnover remained broadly consistent with the prior year £28.76m (2024: £28.98m), but gross profit declined as margins tightened. Cost of sales rose to £26.41m (2024: £25.91m) due to higher steel input prices, elevated logistics costs, and general inflationary pressures. Despite these headwinds, we successfully increased overall tonnage by 21% year on year, demonstrating resilience in market share and customer demand even as profitability was affected by the elevated cost base.

Once again, we thank our financiers, suppliers and advisers for pulling together with us during the ever-changing markets.

Principal risks and uncertainties

The Directors and Management Team are conscious of the risks in today’s global market and the fluctuations in both commodity prices and demands which affect the steel Industry.

The company undertakes regular reviews of the principal risks facing the business, ensuring mitigating plans are implemented to minimise such risks.

Key performance indicators

The company’s key financial indicators during the year were as follows:

Financial KPI’s Unit 2025 2024

Turnover £ 28,758,938 28,978,937

Gross Profit £ 2,346,747 3,071,593

Gross Profit Margin % 8.16 10.60

On behalf of the board

C M Gardner
Director
22 January 2026
HI-TECH STEEL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2025.

Principal activities

The principal activity of the company continued to be that of steel processors.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

I C Gorman
C M Gardner
J A Gorman
Financial instruments
Liquidity risk

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

Interest rate risk

The company is exposed to fair value interest rate risk on its floating rate deposits and borrowings. The company does not consider it necessary to use any financial products to mitigate this risk.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Credit risk

Investments of cash surpluses are made through banks which must fulfil credit rating criteria approved by the Board.

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 s are made for doubtful debts where necessary.

Future developments

Looking ahead, we remain cautiously optimistic about the year to come. Despite continued volatility in steel pricing and operating costs across the sector, we anticipate further growth in tonnage as we advance our sales strategy and maintain a strong focus on meeting key performance indicators. Ongoing customer engagement, targeted market development, and disciplined operational management are expected to support this trajectory, allowing us to build on the momentum achieved in the past year and strengthen our position within a challenging but opportunity-driven market, drawing on synergies and contacts from Hi-Tech Resourcing Limited’s increasing presence in the solar industry.

Auditor

The auditor, JS. Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

HI-TECH STEEL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 3 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

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

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

Strategic report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
C M Gardner
Director
22 January 2026
HI-TECH STEEL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HI-TECH STEEL SERVICES LIMITED
- 4 -
Opinion

We have audited the financial statements of Hi-Tech Steel Services Limited (the 'company') for the year ended 30 June 2025 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 30 June 2025 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport 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.

HI-TECH STEEL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HI-TECH STEEL SERVICES LIMITED (CONTINUED)
- 5 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement included within the directors' report, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

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

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and decisions made by management and risk of fraud ulent revenue recognition.

HI-TECH STEEL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HI-TECH STEEL SERVICES LIMITED (CONTINUED)
- 6 -

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management about actual and potential litigation and claims, their policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance;

- obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

- in addressing the risk of fraud through management override of controls: testing the appropriateness of journal entries; assessing whether the accounting estimates, judgements and decisions made by management 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.

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

Use of our report

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

Christopher Moss BSc F.C.A. (Senior Statutory Auditor)
For and on behalf of JS. Audit Limited, Statutory Auditor
Chartered Accountants
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
22 January 2026
HI-TECH STEEL SERVICES LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
28,758,938
28,978,937
Cost of sales
(26,412,191)
(25,907,344)
Gross profit
2,346,747
3,071,593
Administrative expenses
(1,891,981)
(2,070,262)
Operating profit
4
454,766
1,001,331
Interest payable and similar expenses
8
(586,858)
(684,478)
Amounts written off investments
9
(27)
-
(Loss)/profit before taxation
(132,119)
316,853
Tax on (loss)/profit
10
155,007
(91,814)
Profit for the financial year
22,888
225,039
Retained earnings brought forward
2,587,339
2,969,656
Dividends
11
-
0
(607,356)
Retained earnings carried forward
2,610,227
2,587,339

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

The notes on pages 10 to 24 form part of these financial statements.

HI-TECH STEEL SERVICES LIMITED
BALANCE SHEET
AS AT
30 JUNE 2025
30 June 2025
- 8 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
12
22,363
37,591
Negative goodwill
12
-
0
(129,190)
Net goodwill
22,363
(91,599)
Tangible assets
13
1,432,801
1,823,423
Investments
14
-
0
469,668
1,455,164
2,201,492
Current assets
Stocks
15
4,360,214
3,594,868
Debtors
16
11,357,063
11,498,661
Cash at bank and in hand
49,479
908,950
15,766,756
16,002,479
Creditors: amounts falling due within one year
17
(14,228,950)
(15,179,160)
Net current assets
1,537,806
823,319
Total assets less current liabilities
2,992,970
3,024,811
Creditors: amounts falling due after more than one year
18
(91,700)
(140,029)
Provisions for liabilities
Deferred tax liability
21
290,943
297,343
(290,943)
(297,343)
Net assets
2,610,327
2,587,439
Capital and reserves
Called up share capital
23
100
100
Profit and loss reserves
24
2,610,227
2,587,339
Total equity
2,610,327
2,587,439

The notes on pages 10 to 24 form part of these financial statements.

HI-TECH STEEL SERVICES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2025
30 June 2025
- 9 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 22 January 2026 and are signed on its behalf by:
C M Gardner
Director
Company registration number 08103392 (England and Wales)
HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
- 10 -
1
Accounting policies
Company information

Hi-Tech Steel Services Limited is a private company limited by shares incorporated in England and Wales. The registered office and principal place of business is Unit 1 Neills Road, Bold Industrial Park, St Helens, Merseyside, WA9 4TU.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

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

The financial statements of the company are consolidated in the financial statements of HTSS Holdings Limited. These consolidated financial statements are available from its registered office, Unit 1 Neills Road, Bold Industrial Park, St Helens, Merseyside, WA9 4TU.

1.2
Going concern

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

1.3
Turnover

Turnover represents amounts receivable for manufactured steel processing goods dispatched by the balance sheet date, net of VAT and trade discounts.

Revenue 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.

HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 11 -
1.4
Intangible fixed assets - goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over it's useful economic life.

Where negative goodwill is created, in situations where the fair value of identifiable assets and liabilities are greater than the amounts paid on acquisition of a business, it is amortised to the profit and loss account by reference to the period over which non-monetary assets are recovered.

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

Goodwill - 7% per annum straight line basis

Negative goodwill - 7% per annum straight line basis or upon the disposal of the related tangible fixed assets

1.5
Tangible fixed assets

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

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

Short term leasehold property
Over the length of the lease
Plant and machinery
7% and 10% per annum straight line basis
Fixtures and fittings
10% - 20% per annum straight line basis
Office equipment
50% per annum straight line basis
Motor vehicles
14% - 25% per annum straight line basis

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

1.6
Fixed asset investments

Interests in associate entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 12 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.8
Stocks

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

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.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

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

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

Derecognition of financial liabilities

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

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 14 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

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

1.13
Employee benefits

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

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

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

1.14
Retirement benefits

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

1.15
Leases
As lessee

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 lease d asset are consumed.

HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 15 -
1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

This also includes assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date.

The estimate which has a significant risk of causing a material adjustment to the carrying amount of assets and liabilities is as follows:

Provision against realisation value of stock

As explained in note 1.8, provision is made against the carrying value of stock where its realisable value is lower than cost. The selling prices used in the calculation are subject to significant estimation uncertainty arising from anticipating future selling prices of steel.

3
Turnover
2025
2024
£
£
Turnover analysed by class of business
Product sales
28,635,424
28,848,623
Service sales
123,514
130,314
28,758,938
28,978,937
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
20,869,107
22,586,028
Europe
7,889,831
6,392,909
28,758,938
28,978,937
HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 16 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
3,210
9,332
Depreciation of owned tangible fixed assets
248,254
177,857
Depreciation of tangible fixed assets held under finance leases
121,910
176,987
(Profit)/loss on disposal of tangible fixed assets
(57,453)
8,189
Amortisation of intangible assets
(113,962)
(20,468)
Operating lease charges
213,826
213,791
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,400
11,800
For other services
Taxation compliance services
1,780
1,700
All other non-audit services
3,460
3,300
5,240
5,000
6
Employees

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

2025
2024
Number
Number
Production
24
21
Administration
12
11
Total
36
32

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,317,475
1,273,489
Social security costs
119,380
124,937
Pension costs
142,939
80,504
1,579,794
1,478,930
HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 17 -
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
224,561
252,379
Company pension contributions to defined contribution schemes
87,309
40,054
311,870
292,433

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
95,035
112,789
Company pension contributions to defined contribution schemes
60,000
14,000
8
Interest payable and similar expenses
2025
2024
£
£
Debt factoring charges
41,768
100,194
Interest on debt factoring arrangements
458,294
496,675
Interest on finance leases and hire purchase contracts
86,796
84,708
Other interest
-
0
2,901
586,858
684,478
9
Amounts written off investments
2025
2024
£
£
Loss on disposal of financial assets held at cost
(27)
-
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
(50,000)
99,824
Adjustments in respect of prior periods
(98,607)
-
0
Total current tax
(148,607)
99,824
HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
10
Taxation
2025
2024
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
(6,400)
(8,010)
Total tax (credit)/charge
(155,007)
91,814

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
(Loss)/profit before taxation
(132,119)
316,853
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
(33,030)
79,213
Tax effect of expenses that are not deductible in determining taxable profit
26,630
12,601
Research and development tax credit
(50,000)
-
0
Under/(over) provided in prior years
(98,607)
-
0
Taxation (credit)/charge for the year
(155,007)
91,814
11
Dividends
2025
2024
£
£
Interim paid
-
0
607,356
HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 19 -
12
Intangible fixed assets
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 July 2024 and 30 June 2025
217,543
(809,932)
(592,389)
Amortisation and impairment
At 1 July 2024
179,952
(680,742)
(500,790)
Amortisation charged for the year
15,228
(129,190)
(113,962)
At 30 June 2025
195,180
(809,932)
(614,752)
Carrying amount
At 30 June 2025
22,363
-
0
22,363
At 30 June 2024
37,591
(129,190)
(91,599)
13
Tangible fixed assets
Short term leasehold property
Plant and machinery
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2024
60,595
3,299,203
20,218
86,379
632,322
4,098,717
Additions
-
0
168,633
-
0
4,024
89,954
262,611
Disposals
-
0
(957,886)
-
0
-
0
(84,388)
(1,042,274)
At 30 June 2025
60,595
2,509,950
20,218
90,403
637,888
3,319,054
Depreciation and impairment
At 1 July 2024
28,247
1,827,866
11,949
86,150
321,082
2,275,294
Depreciation charged in the year
9,372
242,457
1,284
529
116,522
370,164
Eliminated in respect of disposals
-
0
(706,640)
-
0
-
0
(52,565)
(759,205)
At 30 June 2025
37,619
1,363,683
13,233
86,679
385,039
1,886,253
Carrying amount
At 30 June 2025
22,976
1,146,267
6,985
3,724
252,849
1,432,801
At 30 June 2024
32,348
1,471,337
8,269
229
311,240
1,823,423
HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
13
Tangible fixed assets
(Continued)
- 20 -

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

2025
2024
£
£
Plant and machinery
297,785
236,411
Motor vehicles
252,849
247,245
550,634
483,656
14
Fixed asset investments
2025
2024
£
£
Investments in associates
-
0
27
Loans to associates
-
0
469,641
-
0
469,668
Movements in fixed asset investments
Shares in associates
Loans to associates
Total
£
£
£
Cost or valuation
At 1 July 2024
27
469,641
469,668
Repayments
-
(271,404)
(271,404)
Transfers to other debtors
-
(198,237)
(198,237)
Disposals
(27)
-
(27)
At 30 June 2025
-
-
-
Carrying amount
At 30 June 2025
-
-
-
At 30 June 2024
27
469,641
469,668
15
Stocks
2025
2024
£
£
Raw materials and consumables
4,255,100
3,481,511
Work in progress
105,114
113,357
4,360,214
3,594,868
HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 21 -
16
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
10,084,914
10,246,448
Corporation tax recoverable
51,856
-
0
Amounts owed by group undertakings
162,311
162,311
Other debtors
614,187
629,372
Prepayments and accrued income
443,795
460,530
11,357,063
11,498,661
17
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Obligations under finance leases
20
90,731
180,498
Other borrowings
19
-
0
125,000
Trade creditors
6,251,548
5,055,139
Corporation tax
1,856
150,571
Other taxation and social security
143,102
295,589
Other creditors
6,980,364
8,159,653
Accruals and deferred income
761,349
1,212,710
14,228,950
15,179,160

Included within other creditors are amounts relating to an invoice financing facility of £6,909,810 (202 4: £8,159,653) which are secured with fixed and floating charges over the property and trade debtors that are financed by the arrangement.

18
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
20
91,700
133,530
Other borrowings
19
-
0
6,499
91,700
140,029
19
Loans and overdrafts
2025
2024
£
£
Other loans
-
0
131,499
Payable within one year
-
0
125,000
Payable after one year
-
0
6,499
HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 22 -
20
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
90,731
180,498
In two to five years
91,700
133,530
182,431
314,028

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. 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.

Net obligations under finance leases and hire purchase contracts are secured on the assets to which the agreements relate. Two of the three directors have each provided a personal guarantee of £25,000 in respect of the amounts due under finance leases.

21
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
322,027
297,343
Tax losses and other deductions
(31,084)
-
290,943
297,343
2025
Movements in the year:
£
Liability at 1 July 2024
297,343
Credit to profit or loss
(6,400)
Liability at 30 June 2025
290,943

The deferred tax liability set out above is expected to reverse within four years and relates primarily to accelerated capital allowances that are expected to mature within the same period.

HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 23 -
22
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
142,939
80,504

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

23
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
10,000
10,000
100
100
24
Profit and loss reserves

Profit and loss account - includes all current and prior period retained profits and losses, net of distributions to shareholders.

25
Financial commitments, guarantees and contingent liabilities

The company is party to an unlimited cross guarantee with its parent undertaking, HTSS Holdings Limited. The maximum amount due under this arrangement at 30 June 2025 was £2,500,000 (202 4: N/A).

26
Operating lease commitments
As lessee

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

2025
2024
£
£
Within 1 year
172,402
173,992
Years 2-5
267,000
426,667
439,402
600,659
HI-TECH STEEL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 24 -
27
Related party transactions

During the year, the company had purchases of £924,186 (2024: £Nil) with a company under common control. As at 30 June 2025 £39,767 was due to this company (2 02 4: £13,073 was due from this company).

On 29 February 2024, the company disposed of its shares in its associate company. Due to the directors still having an interest in this company, it is now classed as a related party.

During the year the company continued to provide financial support to its related party company, Hi-Tech Resourcing Limited, as follows:

- P lant and machinery with a book value of £187,746 (2024: £270,354) with £3 0,000 management fees received in respect of this (2024: £30,000). At the end of the year, these assets were sold for £247,686 realising a profit of £59,940

- Investment loans of £198,237 (2024: £469,641)

- Trade debts of £1,862,445 (2024: £1,317,763)

- Total sales of £1,221,401 (2024: £1,095,591)

During the year dividends of £Nil (202 4: £607,356) were paid to two of the directors of the company.

28
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Advances
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
C M Gardner - Director
-
-
100,000
-
100,000
I C Gorman - Director
-
-
100,940
(869)
100,071
J A Gorman - Director
-
10,918
16,815
(19,983)
7,750
10,918
217,755
(20,852)
207,821

The loan s were interest free, repayable on demand and the company held no security in their respect.

29
Ultimate controlling party

The immediate and ultimate parent undertaking is HTSS Holdings Limited, a company registered in England and Wales. The parent company is preparing consolidated group accounts, which include those of Hi-Tech Steel Services Limited. Copies of the consolidated financial statements of HTSS Holdings Limited can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

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