Company registration number 14065573 (England and Wales)
PERGWM HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PERGWM HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr Daniel Loughran
Mr. M R Davies
Mr M Loughran
Company number
14065573
Registered office
Aberpergwm Colliery
Engine Cottage Site
Glynneath
Neath
West Glamorgan
United Kingdom
SA11 5AJ
Auditor
Azets Audit Services
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
Cardiff
South Glamorgan
United Kingdom
CF23 8AB
PERGWM HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
PERGWM HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Fair review of business, strategy and future outlook

The principal activity of Pergwm Holdings Limited continued to be that of a holding company. Pergwm Holdings Limited own the entire equity share capital of Energybuild Limited, a company whose principal activity is the development of the Aberpergwm mine, located in the Neath and Dulais Valleys of South Wales, which has significant anthracite coal reserves. Pergwm Holdings Limited also own the entire share capital of EGL Puracite Limited, a company whose complimentary principal activity is that of the production and distribution of puracite, a premium quality anthracite filter media.

Loan finance has been provided to Pergwm Holdings Limited from a third party which is related to the company by virtue of common ownership to support on-going operations and allow the group to implement its future strategy. As at 31 December 20 24, the group had net assets of £16,397,000 (2023: £8,152,000) but net current liabilities of £15,955,000 (2023: £16,089,000), inclusive of the related party loan finance of £21,222,000 at that date (2023: £21,961,000).

The strategy of the business is the re-establishment of the Aberpergwm mine as a leading supplier of high quality anthracite coal to key targeted markets, generating attractive and sustainable rates of profitability and growth, alongside the provison of its premium quality anthracite filter media, Puracite. To successfully achieve this, the group has recruited individuals with extensive experience of operating in this sector globally, both from a mineral extraction and market facing perspective. Whilst the success of the business is dependent upon a range of factors, the directors believe that the successful implementation of their strategy will allow the group to take advantage of opportunities as they arise and are confident that it will see the group succeed in the future.

Key performance indicators

The key performance indicators for the group are as follows:

| 2024 2023
Financial KPI’s |
Turnover | £32,747,000 £32,240,000
Operating profit before exceptional items | £8,382,000 £7,329,000
Profit for the financial year | £8,329,000 £7,283,000
Non Financial KPI’s |
Number of reportable accidents | None None

PERGWM HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

The nature of the business environment in which the group operates is inherently risky. Whilst it is not possible to eliminate all such risks and uncertainties, the group has a risk management and internal control system in place to manage them.

The directors and management meet regularly to identify the risks that are considered most likely to have an impact on the business and its strategic priorities. If emerging risks are identified, these are incorporated immediately into the risk management process.

The following sets out the principal risks faced by the group and how they are mitigated:

Mining exploration and development risks

- Mining exploration and development activity is subject to numerous risks, including failure to achieve estimated mineral resource, recovery and production rates and capital and operating costs. The group mitigates this risk by being prudent with its forecasts and carries insurance against mine collapse and other insurable risks.

- Success in identifying economically recoverable reserves can never be guaranteed. The group also cannot guarantee that it will be able to obtain the necessary permits and approvals required for development of its projects. To mitigate this risk, it works closely with the planning authorities and the community to ensure that it complies with planning consents and that the planning authority and the community understand the group’s objectives and plans.

- The group may be required to undertake clean-up programmes resulting from any contamination from its operations or to participate in mine rehabilitation programmes which may vary from project to project. The group follows all relevant laws and regulations and is not aware of any present material issues in this regard. It also carries public liability insurance.

People

- The group depends on a skilled, flexible, diverse and well-motivated workforce. If the group does not succeed in attracting, developing and retaining skilled people, as well as understanding and embracing the diversity of those people, it will not be able to grow the business as anticipated.

- The group has in place procedures to monitor staff turnover closely and to monitor pay and conditions against the prevailing market to ensure that the group remains competitive. Succession planning and staff development are managed at all levels in the group, underpinned by a training process which is designed to assist in the career development of its staff and also to identify potential successors to key roles.

Reputation and corporate responsibility

- The group's ability to win new business and its relationship with customers, supply chain partners, employees and other stakeholders depends in large part on a good reputation. The group's growth targets may not be achieved if its reputation is adversely affected.

- The steps taken to maintain, protect and enhance the group's reputation include effective leadership, community engagement and striving to operate a safe and sustainable business.

- The group takes its corporate responsibility seriously and is committed to implementing appropriate policies and systems, including concern for employees and their health and safety, the environment and the community.

Health and safety and the environment

- The group's activities are often complex and require the continuous monitoring and management of health, safety and environmental risks. Failure to manage these risks could expose the group to a significant potential liability and to reputational damage.

PERGWM HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

- Detailed policies and procedures exist to mitigate such risks and are subject to review and monitoring by the business and external specialists. Compliance is monitored in a number of ways including audit, leadership involvement and inspections.

- The environmental policy of the group is to mitigate pollution, comply with environmental legislation and to maintain management systems to a high standard in order to ensure that environmental incidents are kept to a minimum.

Treasury operations and financial instruments

- The group's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk and interest rate risk.

- The group has in place an informal risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

- Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department.

Price risk

- The group is exposed to commodity price risk as a result of its operations. The price of commodities depends on a wide range of factors, most of which are outside of the control of the group. Where possible the group will seek to mitigate the risk by fixing prices at favourable terms. However, given the current size of the group's operations, the costs of managing exposure to commodity risk exceed any potential benefits. The directors' will revisit the appropriateness of this policy as the group's operations change in size or nature.

Credit risk

- The group has in place policies that require appropriate credit checks on potential customers to be undertaken before sales are made. The amounts of exposure to any individual counterparty will be continually monitored in line with the group's credit control procedures.

Liquidity risk and interest rate risk

- The group actively maintains short-term and long-term debt finance that is designed to ensure the group has sufficient available funds for operations and planned expansions. The directors are satisfied that the group has sufficient funds and facilities for the planned operations. The directors recognise that unforeseen events could change the assumption but are sufficiently satisfied that available steps to raise finance would ensure there are sufficient funds for the period.

- Exposure to interest rate fluctuations is minimal as the group currently has no external bank debt. The loan payables are with related parties and interest rates, where applicable, will be agreed at a fixed rate of interest.

PERGWM HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

On behalf of the board

Mr. M R Davies
Director
12 February 2026
PERGWM HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activities of the company and group, together with the likely future developments of the business are set out in the Strategic Report.

Results and dividends

The results for the year are set out in the annexed financial statements. The directors have not and do not recommend the payment of a dividend during or in respect of the period ended 31 December 2024.

Directors

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

Mr Daniel Loughran
Mr. M R Davies
Mr M Loughran

Going concern

As at 31 December 20 24, the group had net assets of £16,397,000 (2023: £8,152,000) but net current liabilities of £15,955,000 (2023: £16,089,000), albeit inclusive of related party loan finance of £21,222,000 (2023: £21,961,000).

The directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report. B ased on this information, as detailed in note 1, the directors are satisfied that it is appropriate to prepare the financial statements on a going concern basis.

Future developments

The strategy and future developments in the business are set out in the Strategic Report.

Auditor

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

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

PERGWM HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
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 auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr. M R Davies
Director
12 February 2026
PERGWM HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERGWM HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of Pergwm Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

In forming our opinion, which is not modified, we have considered the adequacy of the disclosures made in note 1 of the financial statements concerning the group and parent company's ability to continue as a going concern. Should the forecasts prepared by the board not be realised or should the proposed loan facility not be provided, further sources of funding would need to be sought to bridge the cashflow position. These conditions may indicate the existence of a material uncertainty which may cast significant doubt about the group and parent company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the group or parent company was unable to continue as a going concern.

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

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.

PERGWM HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERGWM HOLDINGS LIMITED
- 8 -

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.

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 their 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 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 directors' r esponsibilities s tatement, 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 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 parent 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.

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.

PERGWM HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERGWM HOLDINGS LIMITED
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Joelene Swart (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
12 February 2026
Chartered Accountants
Statutory Auditor
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
Cardiff
South Glamorgan
United Kingdom
CF23 8AB
PERGWM HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£'000
£'000
Turnover
3
32,746
32,242
Cost of sales
(23,669)
(24,347)
Gross profit
9,077
7,895
Administrative expenses
(951)
(684)
Other operating income
277
119
Operating profit
4
8,403
7,330
Interest payable and similar expenses
7
(53)
(54)
Profit before taxation
8,350
7,276
Tax on profit
8
(105)
8
Profit for the financial year
8,245
7,284
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
PERGWM HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Goodwill
9
500
650
Negative goodwill
9
(1,680)
(1,890)
Net goodwill
(1,180)
(1,240)
Tangible assets
10
35,205
27,455
Investments
11
2,381
2,256
36,406
28,471
Current assets
Stocks
14
5,917
5,085
Debtors
15
6,864
7,326
Cash at bank and in hand
1,080
2,687
13,861
15,098
Creditors: amounts falling due within one year
16
(29,795)
(31,186)
Net current liabilities
(15,934)
(16,088)
Total assets less current liabilities
20,472
12,383
Creditors: amounts falling due after more than one year
17
(966)
(1,168)
Provisions for liabilities
Provisions
19
3,109
3,063
(3,109)
(3,063)
Net assets
16,397
8,152
Capital and reserves
Called up share capital
22
-
0
-
0
Profit and loss reserves
16,397
8,152
Total equity
16,397
8,152

The notes on pages 16 to 34 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 12 February 2026 and are signed on its behalf by:
12 February 2026
Mr. M R Davies
Director
Company registration number 14065573 (England and Wales)
PERGWM HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Investments
11
16,652
16,652
Current assets
Debtors
15
5,500
5,309
Creditors: amounts falling due within one year
16
(22,017)
(21,961)
Net current liabilities
(16,517)
(16,652)
Net assets
135
-
0
Capital and reserves
Called up share capital
22
-
0
-
0
Profit and loss reserves
135
-
0
Total equity
135
-
0

The notes on pages 16 to 34 form part of these financial statements.

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £180,000 (2023: £nil).

The financial statements were approved by the board of directors and authorised for issue on 12 February 2026 and are signed on its behalf by:
12 February 2026
Mr. M R Davies
Director
Company registration number 14065573 (England and Wales)
PERGWM HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
£'000
£'000
£'000
Balance at 1 January 2023
-
0
868
868
Year ended 31 December 2023:
Profit and total comprehensive income
-
7,284
7,284
Balance at 31 December 2023
-
0
8,152
8,152
Year ended 31 December 2024:
Profit and total comprehensive income
-
8,245
8,245
Balance at 31 December 2024
-
0
16,397
16,397

The notes on pages 16 to 34 form part of these financial statements.

PERGWM HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Profit and loss reserves
Total
£'000
£'000
£'000
Balance at 1 January 2023
-
0
-
0
-
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 December 2023
-
0
-
0
-
0
Year ended 31 December 2024:
Profit and total comprehensive income
-
135
135
Balance at 31 December 2024
-
0
135
135

The notes on pages 16 to 34 form part of these financial statements.

PERGWM HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
25
6,733
4,336
Interest paid
(53)
(54)
Income taxes refunded/(paid)
329
(111)
Net cash inflow from operating activities
7,009
4,171
Investing activities
Purchase of business
-
(1,208)
Purchase of tangible fixed assets
(7,752)
(4,171)
Purchase of investments
-
(291)
Proceeds from disposal of investments
(125)
-
Net cash used in investing activities
(7,877)
(5,670)
Financing activities
Proceeds from borrowings
-
2,927
Repayment of borrowings
(739)
-
Net cash (used in)/generated from financing activities
(739)
2,927
Net (decrease)/increase in cash and cash equivalents
(1,607)
1,428
Cash and cash equivalents at beginning of year
2,687
1,259
Cash and cash equivalents at end of year
1,080
2,687
PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
1
Accounting policies
Company information

Pergwm Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Aberpergwm Colliery, Engine Cottage Site, Glynneath, Neath, West Glamorgan, United Kingdom, SA11 5AJ.

The group consists of Pergwm Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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 £'000.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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

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

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

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

1.2
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Pergwm Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the group's ability to continue as a going concern.

Pergwm Holdings Limited own the entire equity share capital of Energybuild Limited, a company whose principal activity is the development of the Aberpergwm mine, located in the Neath and Dulais Valleys of South Wales, which has significant anthracite coal reserves. Pergwm Holdings Limited also own the entire share capital of EGL Puracite Limited, a company whose complimentary principal activity is that of the production and distribution of puracite, a premium quality anthracite filter media.

Loan finance has been provided to Pergwm Holdings Limited from a third party which is related to the company by virtue of common ownership to support on-going operations and allow the group to implement its future strategy. As at 31 December 20 24, the group had net assets of £16,397,000 (2023: £8,152,000) but net current liabilities of £15,955,000 (2023: £16,089,000), inclusive of the related party loan finance of £21,222,000 at that date (2023: £21,961,000).

The directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

With the on-going finance in place, the group is forecast to continue to operate. The success of the business does remain dependent upon a range of external factors, however the directors are confident that the quality of product that they will be able to provide to key targeted markets will stand the group in good stead. In addition, the recruitment of individuals with extensive experience of operating globally should help to mitigate risks caused by potential changes in markets and import/​export procedures.

Whilst the directors have received confirmation of the intended provision of the required financial support based on the forecasts in place, a formal facility for the financing is not in place as at the date of signing these financial statements. This represents a material uncertainty which may cast significant doubt about the group's ability to continue as a going concern.

Based on the future forecasts of the group, a review of the facilities in place and discussions with the group's shareholders on their expected continued support, the directors are satisfied that it is appropriate to prepare the financial statements on a going concern basis.

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover

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

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Turnover comprises the sales of coal and the undertaking of ancillary mining activities. Turnover is recognised on the dispatch of coal to customers.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life whic the directors have determined to be 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Negative goodwill represents the excess of the fair value of net assets acquired over the cost of acquisition of a business and the goodwill is initially recognised at cost. The negative goodwill is subsequently recognised up to the fair value of non-monetary assets acquired in the profit or loss account in the periods in which the non-monetary assets are recovered.

1.8
Tangible fixed assets

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

Heavy mining and other plant and equipment are depreciated at varying rates depending upon its expected usage. Depreciation rates are as follows:

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

Freehold land and buildings
Over the period of the lease
Plant and equipment
3-50 years
Mine development and surface work
8 - 20 years
Restoration assets
Unit of production

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

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -

Mine development

The purpose of the mine development is to establish secure working conditions and infrastructure to allow the safe and efficient extraction of recoverable reserves. The cost of mine development includes all costs, including labour and materials directly attributable to development of the mine infrastructure and surface. Depreciation on mine development is not charged until full production commences or the assets are put to use. On commencement of full production, depreciation is charged on a tonnage-extracted basis over the estimated life of the recoverable reserves. Prior to coal production, costs incurred are allocated between mine development costs and operating costs on an appropriate basis taking into account expected long run operating costs per tonne of the mine.

Surface mine development and restoration assets

Expenditure incurred in identifying, assessing and obtaining leases and licences for surface mine sites is written off as incurred. Subsequent expenditure incurred in developing surface mine sites prior to the commencement of production, net of any residual value, is capitalised within tangible fixed assets and charged to the profit and loss account over the coaling life of the site. The restoration asset includes the estimated cost of restoration and closure.

Grant income, including Coal Investment Aid

Grant income including Coal Investment Aid is received as a contribution towards expenditure by the Company. If the actual expenditure has been charged to the cost of sales in the profit and loss account, then the Grant Income or Investment Aid is accounted for in the same period as the actual expenditure to which it relates. Where the Grant Income or Investment Aid relates to the purchase of fixed assets, the Grant income or Investment Aid is held on the balance sheet as deferred income and is credited to the profit and loss account over the life of the assets to which it relates.

Restoration and closure costs

Surface mines – the total costs of reinstatement of soil excavation and of surface restoration are recognised as a provision on site commissioning when the obligation arises. The amount provided represents the present value of the expected costs. Costs are charged to the provision as incurred. A tangible fixed asset is created for an amount equivalent to the initial provision. This is charged to the profit and loss account on a unit of production basis over the life of a site.

Drift mines – closure costs relating to drift closure and pit-top restoration are recognised as a provision on a discounted basis at the commissioning stage or on acquisition. The amount provided represents the present value of the expected costs. Costs are charged to the provision as incurred. A tangible fixed asset is created for an amount equivalent to the initial provision and is depreciated in accordance with the accounting policy set out above. Provision for other closure costs is made when there is a demonstrable commitment to the closure.

1.9
Fixed asset investments

In vestments are stated at the lower of cost and net realisable value.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.10
Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. The value in use has been derived by using the reserves multiple approach. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.12
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. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

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

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

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

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
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 m ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.15
Taxation

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

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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

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

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 23 -
1.16
Provisions

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

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

1.17
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.

1.18
Retirement benefits

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

1.19
Leases

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.

1.20
Government grants

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.21
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.

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
2
Judgements and key sources of estimation uncertainty

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

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

Key sources of estimation uncertainty

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

Impairment of tangible assets

The group considers whether tangible assets are impaired. Where an indication of impairment is identified or where the reasons for a previous impairment have ceased to apply, the estimation of recoverable value will require estimation of the recoverable value of the cash generating units as detailed in the accounting policy set out in note 1.

Provisions

Provision is made for restoration and aftercare obligations. These provisions require managements best estimate of the costs that will be incurred based on legislative and contractual requirements. In addition, the timing of cash flows and the discount rates used to establish net present value of the obligations require managements judgement.

Inventory provisioning

Provision is made for those items of stock which are obsolete and where the net realisable value is estimated to be lower than cost. Net realisable value is based on both historic experience and assumptions regarding future selling values, and is consequently a source of estimation uncertainty.

Recognition of deferred tax assets

Tax losses are available to be utilised against future profits. Further there are fixed asset timing differences. The directors have taken the decision not to recognise a deferred tax asset in respect of these due to uncertainty over utilisation.

3
Turnover and other revenue
2024
2023
£'000
£'000
Turnover analysed by class of business
Drift mine
32,746
29,431
Puracite
-
2,811
32,746
32,242
2024
2023
£'000
£'000
Other revenue
Grants received
223
177
PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
4
Operating profit
2024
2023
£'000
£'000
Operating profit for the year is stated after charging/(crediting):
Exchange gains
-
(2)
Government grants
(223)
(177)
Depreciation of owned tangible fixed assets
2
2
Amortisation of intangible assets
(60)
(110)
Operating lease charges
1,030
225
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
7
5
Audit of the financial statements of the company's subsidiaries
51
40
58
45
For other services
Taxation compliance services
6
5
Other taxation services
20
19
Services relating to corporate finance transactions
-
17
26
41
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Drift mine and coal preparation
169
156
-
-
Surface workers
40
35
-
-
Administration
6
6
-
-
Total
215
197
0
0
PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 26 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Wages and salaries
9,997
8,256
-
0
-
0
Social security costs
987
878
-
-
Pension costs
174
145
-
0
-
0
11,158
9,279
-
0
-
0
7
Interest payable and similar expenses
2024
2023
£'000
£'000
Other interest on financial liabilities
1
2
Unwinding of discount on provisions
52
52
Total finance costs
53
54
8
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
105
149
Adjustments in respect of prior periods
-
0
(157)
Total current tax
105
(8)

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

2024
2023
£'000
£'000
Profit before taxation
8,350
7,276
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
2,088
1,382
Tax effect of expenses that are not deductible in determining taxable profit
(24)
54
Change in unrecognised deferred tax assets
(1,981)
(1,706)
Adjustments in respect of prior years
-
0
(157)
Effect of change in corporation tax rate
-
409
Group relief
22
10
Taxation charge/(credit)
105
(8)
PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 27 -

There is an unprovided deferred tax asset at 31 December 2024 of £27.3m (2023: £29.3m) which relates to fixed asset timing differences and losses carried forward. This deferred tax asset has not been provided as there is uncertainty as to its recoverability.

An increase in the UK Corporation Tax rate to 25% for profits arising on or after 1 April 2023 as set out in the Finance Bill 2021 was substantively enacted on 24 May 2021. The calculation of the unrecognised deferred tax asset as at 31 December 2024 reflects this rate (31 December 2023: 25%).

9
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£'000
£'000
£'000
Cost
At 1 January 2024 and 31 December 2024
750
(2,100)
(1,350)
Amortisation and impairment
At 1 January 2024
100
(210)
(110)
Amortisation charged for the year
150
(210)
(60)
At 31 December 2024
250
(420)
(170)
Carrying amount
At 31 December 2024
500
(1,680)
(1,180)
At 31 December 2023
650
(1,890)
(1,240)
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
10
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Mine development and surface work
Restoration assets
Total
£'000
£'000
£'000
£'000
£'000
Cost
At 1 January 2024
782
9,924
16,560
191
27,457
Additions
587
4,818
2,347
-
0
7,752
At 31 December 2024
1,369
14,742
18,907
191
35,209
Depreciation and impairment
At 1 January 2024
-
0
1
1
-
0
2
Depreciation charged in the year
-
0
-
0
-
0
2
2
At 31 December 2024
-
0
1
1
2
4
Carrying amount
At 31 December 2024
1,369
14,741
18,906
189
35,205
At 31 December 2023
782
9,923
16,559
191
27,455
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
12
-
0
-
0
16,652
16,652
Mine reinstatement bonds
2,381
2,256
-
0
-
0
2,381
2,256
16,652
16,652
PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Group
Mine reinstatement bonds
£'000
Cost or valuation
At 1 January 2024
2,256
Additions
125
At 31 December 2024
2,381
Carrying amount
At 31 December 2024
2,381
At 31 December 2023
2,256
Movements in fixed asset investments
Company
Shares in subsidiaries
£'000
Cost or valuation
At 1 January 2024 and 31 December 2024
16,652
Carrying amount
At 31 December 2024
16,652
At 31 December 2023
16,652
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Energybuild Limited
Aberpergym Colliery Engine Cottage Site, Glynneath, SA11 5AJ
Mining
Ordinary
100.00
Energybuild Mining Limited
Aberpergym Colliery Engine Cottage Site, Glynneath, SA11 5AJ
Dormant
Ordinary
100.00
Mineral Extraction and Handling Limited
Aberpergym Colliery Engine Cottage Site, Glynneath, SA11 5AJ
Dormant
Ordinary
100.00
EGL Puracite Limited
Aberpergym Colliery Engine Cottage Site, Glynneath, SA11 5AJ
Manufacturing
Ordinary
100.00

The directors believe that the carrying values of the investments are supported by their underlying net assets and forecast future financial performance at the end of the period.

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
13
Financial instruments
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
2,381
2,256
-
-
14
Stocks
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Consumables
1,720
2,360
-
-
Coal stock
4,197
2,725
-
0
-
0
5,917
5,085
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
1,029
1,051
-
0
-
0
Corporation tax recoverable
-
0
329
-
0
-
0
Amounts owed by group undertakings
-
-
5,500
5,309
Other debtors
1,998
837
-
0
-
0
Prepayments and accrued income
3,837
5,109
-
0
-
0
6,864
7,326
5,500
5,309

Other debtors includes £1,969,000 (2023: £711,000) of amounts owed by LCC Group Limited, a related party of the group as at 31 December 2024. The amounts are interest free and unsecured.

Amounts owed by group undertakings are due from the subsidiary company, Energybuild Limited, and are unsecured, interest-free and have no fixed date of repayment.

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Other borrowings
18
21,222
21,961
21,222
21,961
Trade creditors
1,628
2,291
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
750
-
0
Corporation tax payable
254
149
45
-
0
Other taxation and social security
1,106
1,293
-
-
Deferred income
20
2,568
2,423
-
0
-
0
Other creditors
1,704
1,938
-
0
-
0
Accruals and deferred income
1,313
1,131
-
0
-
0
29,795
31,186
22,017
21,961

Other creditors includes amounts owed to LCC Group Limited of £1,702,614 (2023: £1,918,000), a related party of the group as at 31 December 2024. The amounts are interest free and unsecured.

17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Deferred income
20
966
1,168
-
0
-
0
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Loans from related parties
21,222
21,961
21,222
21,961
Payable within one year
21,222
21,961
21,222
21,961

The loans from related parties relate to amounts owed to LCC Holdings Limited, a related party of the company as at 31 December 2024. Loans are unsecured and have no fixed repayment terms.

19
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Drift Mines
3,041
2,995
-
-
Surface Mines
68
68
-
-
3,109
3,063
-
-
PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Provisions for liabilities
(Continued)
- 32 -
Movements on provisions:
Drift Mines
Surface Mines
Total
Group
£'000
£'000
£'000
At 1 January 2024
2,995
68
3,063
Unwinding of discount
46
-
46
At 31 December 2024
3,041
68
3,109

Restoration and closure costs – Drift mines

Drift closure and pit-top provisions are made to meet the liability to fill and cap all mine drifts and return pit-top areas to a condition consistent with the required planning permission. No transfer of economic benefits will arise until the decommissioning of each individual colliery. The current pit-top provision reflects existing planning permissions that require pit-top areas to be restored to former use, usually agriculture.

The provision level has been reassessed and the amount of £3,041,000 (2023: £2,994,000) represents the cost of the restoration obligations discounted at 6% risk free rate per annum to present day value. The provision is not expected to be utilised for at least ten years.

The provision, along with the mine life, will be considered annually.

Restoration and closure costs – Surface mines

This provision relates to the total estimated costs of reinstatement of soil excavation and of surface restoration such as topsoil replacement and landscaping. Restoration costs will be payable when individual sites are completed and payments against aftercare liabilities will extend beyond the life of each contract. The costs accrued are expected to be incurred during the next two years.

The provision level was assessed and the amount of £68,000 (2023: £68,000) represents the cost of restoration obligations. The restoration liability is expected to be completed in the near term and therefore discounting the provisions is not required.

20
Deferred income
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Arising from government grants
966
1,168
-
-
Other deferred income
2,568
2,423
-
-
3,534
3,591
-
-

Deferred income is included in the financial statements as follows:

Current liabilities
2,568
2,423
-
0
-
0
Non-current liabilities
966
1,168
-
0
-
0
3,534
3,591
-
-
PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
174
145

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Ordinary shares of £1 each
100
100
-
-

On incorporation 100 ordinary shares of £1 each were issued at par.

23
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Within one year
19
19
-
-
Between two and five years
77
73
-
-
In over five years
385
405
-
-
481
497
-
-
24
Related party transactions

LCC Group Limited are a related party of the group by virtue of common shareholders and directors. During the period ended 31 December 2024, total sales to LCC Group Limited amounted to £20,488,000 (2023: £11,309,000). In addition, included in deferred income due within one year is a balance of £2,512,000 (2023: £2,423,000). Purchases from LCC Group Limited during the year amounted to £3,161,000 (2023: £8,900,000 ).

Details of loans from related parties are set out in note 18 and details of closing receivables and payables balances in notes 15 and 16 respectively.

The directors did not receive any remuneration for their services to the group or company during the financial year (2023: £nil). Key management personnel, other than the directors, received remuneration for their services of £261,000 (2023: £227,000) and company pension contributions to defined contribution schemes of £6,000 (2023: £3,000).

PERGWM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
25
Cash generated from group operations
2024
2023
£'000
£'000
Profit for the year after tax
8,247
7,284
Adjustments for:
Taxation charged/(credited)
105
(8)
Finance costs
53
54
Amortisation and impairment of intangible assets
(60)
(110)
Depreciation and impairment of tangible fixed assets
2
2
Increase in provisions
46
41
Movements in working capital:
Increase in stocks
(833)
(2,944)
Decrease/(increase) in debtors
132
(1,833)
(Decrease)/increase in creditors
(902)
60
(Decrease)/increase in deferred income
(57)
1,790
Cash generated from operations
6,733
4,336
26
Analysis of changes in net debt - group
1 January 2024
Cash flows
31 December 2024
£'000
£'000
£'000
Cash at bank and in hand
2,687
(1,607)
1,080
Borrowings excluding overdrafts
(21,961)
739
(21,222)
(19,274)
(868)
(20,142)
2024-12-31 2024-01-01 false false CCH Software CCH Accounts Production 2025.300 Mr Daniel Loughran Mr. M R Davies Mr M Loughran Geraldine Quinn false 14065573 bus:Consolidated 2024-01-01 2024-12-31 14065573 2024-01-01 2024-12-31 14065573 bus:Director1 2024-01-01 2024-12-31 14065573 bus:Director2 2024-01-01 2024-12-31 14065573 bus:Director3 2024-01-01 2024-12-31 14065573 bus:Director4 2024-01-01 2024-12-31 14065573 bus:RegisteredOffice 2024-01-01 2024-12-31 14065573 bus:Consolidated 2024-12-31 14065573 2024-12-31 14065573 bus:Consolidated 2023-01-01 2023-12-31 14065573 2023-01-01 2023-12-31 14065573 core:Goodwill bus:Consolidated 2024-12-31 14065573 core:Goodwill bus:Consolidated 2023-12-31 14065573 core:NegativeGoodwill bus:Consolidated 2024-12-31 14065573 core:NegativeGoodwill bus:Consolidated 2023-12-31 14065573 core:NetGoodwill bus:Consolidated 2024-12-31 14065573 core:NetGoodwill bus:Consolidated 2023-12-31 14065573 bus:Consolidated 2023-12-31 14065573 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2024-12-31 14065573 core:PlantMachinery bus:Consolidated 2024-12-31 14065573 core:FurnitureFittings bus:Consolidated 2024-12-31 14065573 core:MotorVehicles bus:Consolidated 2024-12-31 14065573 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2023-12-31 14065573 core:PlantMachinery bus:Consolidated 2023-12-31 14065573 core:FurnitureFittings bus:Consolidated 2023-12-31 14065573 core:MotorVehicles bus:Consolidated 2023-12-31 14065573 2023-12-31 14065573 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2024-12-31 14065573 core:CurrentFinancialInstruments bus:Consolidated 2023-12-31 14065573 core:ShareCapital bus:Consolidated 2024-12-31 14065573 core:ShareCapital bus:Consolidated 2023-12-31 14065573 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2024-12-31 14065573 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-12-31 14065573 core:ShareCapital 2024-12-31 14065573 core:ShareCapital 2023-12-31 14065573 core:RetainedEarningsAccumulatedLosses 2024-12-31 14065573 core:RetainedEarningsAccumulatedLosses 2023-12-31 14065573 core:ShareCapital bus:Consolidated 2022-12-31 14065573 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2022-12-31 14065573 core:ShareCapital 2022-12-31 14065573 core:RetainedEarningsAccumulatedLosses 2022-12-31 14065573 bus:Consolidated 2022-12-31 14065573 core:Goodwill 2024-01-01 2024-12-31 14065573 core:LandBuildings core:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 14065573 core:PlantMachinery 2024-01-01 2024-12-31 14065573 core:FurnitureFittings 2024-01-01 2024-12-31 14065573 core:MotorVehicles 2024-01-01 2024-12-31 14065573 core:UKTax bus:Consolidated 2024-01-01 2024-12-31 14065573 core:UKTax bus:Consolidated 2023-01-01 2023-12-31 14065573 core:Goodwill bus:Consolidated 2023-12-31 14065573 core:NegativeGoodwill bus:Consolidated 2023-12-31 14065573 bus:Consolidated 2023-12-31 14065573 core:Goodwill bus:Consolidated 2024-01-01 2024-12-31 14065573 core:NegativeGoodwill bus:Consolidated 2024-01-01 2024-12-31 14065573 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2023-12-31 14065573 core:PlantMachinery bus:Consolidated 2023-12-31 14065573 core:FurnitureFittings bus:Consolidated 2023-12-31 14065573 core:MotorVehicles bus:Consolidated 2023-12-31 14065573 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2024-01-01 2024-12-31 14065573 core:PlantMachinery bus:Consolidated 2024-01-01 2024-12-31 14065573 core:FurnitureFittings bus:Consolidated 2024-01-01 2024-12-31 14065573 core:MotorVehicles bus:Consolidated 2024-01-01 2024-12-31 14065573 core:UnlistedNon-exchangeTraded bus:Consolidated 2024-12-31 14065573 core:UnlistedNon-exchangeTraded bus:Consolidated 2023-12-31 14065573 core:UnlistedNon-exchangeTraded 2024-12-31 14065573 core:UnlistedNon-exchangeTraded 2023-12-31 14065573 core:Subsidiary1 2024-01-01 2024-12-31 14065573 core:Subsidiary2 2024-01-01 2024-12-31 14065573 core:Subsidiary3 2024-01-01 2024-12-31 14065573 core:Subsidiary4 2024-01-01 2024-12-31 14065573 core:Subsidiary1 1 2024-01-01 2024-12-31 14065573 core:Subsidiary2 2 2024-01-01 2024-12-31 14065573 core:Subsidiary3 3 2024-01-01 2024-12-31 14065573 core:Subsidiary4 4 2024-01-01 2024-12-31 14065573 core:CurrentFinancialInstruments bus:Consolidated 2024-12-31 14065573 core:CurrentFinancialInstruments 2024-12-31 14065573 core:CurrentFinancialInstruments 2023-12-31 14065573 core:CurrentFinancialInstruments bus:Consolidated 1 2024-12-31 14065573 core:CurrentFinancialInstruments bus:Consolidated 1 2023-12-31 14065573 core:CurrentFinancialInstruments 2 2024-12-31 14065573 core:CurrentFinancialInstruments 3 2024-12-31 14065573 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2023-12-31 14065573 core:CurrentFinancialInstruments core:WithinOneYear 2024-12-31 14065573 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 14065573 core:Non-currentFinancialInstruments bus:Consolidated 2024-12-31 14065573 core:Non-currentFinancialInstruments bus:Consolidated 2023-12-31 14065573 core:Non-currentFinancialInstruments 2024-12-31 14065573 core:Non-currentFinancialInstruments 2023-12-31 14065573 core:WithinOneYear bus:Consolidated 2024-12-31 14065573 core:WithinOneYear bus:Consolidated 2023-12-31 14065573 bus:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 14065573 bus:FRS102 2024-01-01 2024-12-31 14065573 bus:Audited 2024-01-01 2024-12-31 14065573 bus:ConsolidatedGroupCompanyAccounts 2024-01-01 2024-12-31 14065573 bus:FullAccounts 2024-01-01 2024-12-31 xbrli:pure xbrli:shares iso4217:GBP