Company registration number 08864255 (England and Wales)
S L RECYCLING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
S L RECYCLING LIMITED
COMPANY INFORMATION
Director
Mr S Lewis
Secretary
Mr S Lewis
Company number
08864255
Registered office
Pontyfelin Industrial Estate
New Inn
Pontypool
NP4 0DQ
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
S L RECYCLING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
S L RECYCLING LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2025
- 1 -

The director presents the strategic report for the period ended 30 June 2025.

Review of the business

The results for the period and financial position of the company are as shown in the financial statements.

The profit and loss shown on page 8, shows turnover of £15.2 million for the 17 month period to 30 June 2025 compared to £11.5 million for the year to 31 January 2024; whilst this is a fall on a pro-rata basis, it includes a period of limited trading during the period whilst a new Shredder was commissioned. Sales prices were also depressed throughout the period.

Gross profit is the business' key measure of operating effectiveness. Gross profit was £4.5 million, 29.5% for the 17 month period to 30 June 2025 compared to £3.7 million, 31.8% for the year to 31 January 2024; the decrease is attributed to the inefficiency caused by the period of commissioning of the new Shredder.

The balance sheet on page 10 shows that net assets have increased slightly to £3.2 million from £2.9 million. Fixed assets have increased to £6.6 million at 30 June 2025 compared to £4.8 million at 31 January 2024, this is the result of almost £3.0 million of investment in the period in property ant plant and equipment including the new Shredder which has now increased the company's capacity and efficiency.

Principal risks and uncertainties

The scrap metal sector remains very competitive, and the director believes that the market will remain this way in the foreseeable future. The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial instruments is monitored by the director. The company's principal financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and loans to the company. The company does not use derivative financial instruments for speculative purposes.

Cash flow risk

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The company's principal financial assets are bank balances and cash, trade and other receivables. The company's credit risk is primarily attributable to its trade and other receivables. The company manages credit risk in respect of Trade debtors by regularly monitoring credit limits and balances outstanding. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term finance. The company manages the liquidity risk by monitoring working capital and ensuring there are sufficient funds to meet payments. The company manages the balance outstanding as part of its overall working capital management. The company obtains the majority of fixed assets through hire purchase contracts or finance lease agreements. Additionally, an invoice discounting facility is used which is secured on trade debtors. The board is cognisant of the company's working capital requirements and has concluded the facilities currently in place are appropriate to the size and complexity of operations.

S L RECYCLING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
- 2 -

Price risk

The company is exposed to commodity price risk, particularly oil prices. The company does not manage its exposure to commodity price risk due to lost benefit considerations.

On behalf of the board

Mr S Lewis
Director
17 February 2026
S L RECYCLING LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 30 JUNE 2025
- 3 -

The director presents his annual report and financial statements for the period ended 30 June 2025.

Principal activities

The principal activity of the company continued to be that of recovery of sorted materials.

Reporting period

The company changed its accounting reference date to 30th June. The accounts for the current period are for the 17 months from 1 February 2024 to 30 June 2025. The prior period is for the 12 months, 1 February 2023 to 31 January 2024.

Results and dividends

The results for the period are set out on page 8. A fair review of business is set out in the Strategic Report on page 1.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the period and up to the date of signature of the financial statements was as follows:

Mr S Lewis
Auditor

UHY Hacker Young were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006. UHY Hacker Young have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.

Statement of director's responsibilities

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement 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.

S L RECYCLING LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
- 4 -
Going concern

Trading has been difficult over the last few years due to strong competition, depressed sales prices and operational factors including the investment in new plant and machinery. Sales and profitability have shown strong recovery following the end of the period reported in these finical statement.

At 30 June 2025, the company had net current liabilities of £1.2 million (31 January 2024: £0.3 million); this was partly caused by the funding for the new equipment which creates a mismatch between short term liabilities and long term assets.

Management have prepared budgets and cashflow forecasts that demonstrate that the business can meet its liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements.

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

On behalf of the board
Mr S Lewis
Director
17 February 2026
S L RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF S L RECYCLING LIMITED
- 5 -
Opinion

We have audited the financial statements of S L Recycling Limited (the 'company') for the period ended 30 June 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 30 June 2025 and of its profit for the period 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 director's 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 director 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 director is 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 director's r eport for the financial period for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

S L RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF S L RECYCLING LIMITED (CONTINUED)
- 6 -
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 director's 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

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

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

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

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and ISO standards;

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

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

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

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

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

S L RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF S L RECYCLING LIMITED (CONTINUED)
- 7 -

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

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial statements, 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 the 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.

Other matters which we are required to address

The comparative financial statements are unaudited as the company met the criteria for audit exemption in the the prior year. As part of our audit of the financial statements for the period ended 30 June 202 5 we noted a number of material errors in the prior year numbers which have been restated (see note 23). Following the prior year adjustments, we have obtained sufficient evidence that the restated opening balances do not contain further misstatements that materially affect the current period's financial statements.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Mr John Griffiths (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young, Statutory Auditor
Chartered Accountants
Newport
Gwent
United Kingdom
17 February 2026
S L RECYCLING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 JUNE 2025
- 8 -
Period
Year
ended
ended
30 June
31 January
2025
2024
as restated
Note 23
Notes
£
£
Turnover
3
15,154,491
11,548,518
Cost of sales
(10,689,980)
(7,879,342)
Gross profit
4,464,511
3,669,176
Distribution costs
(1,142,487)
(1,107,540)
Administrative expenses
(3,034,069)
(2,415,166)
Other operating income
8,564
-
0
Operating profit
4
296,519
146,470
Interest receivable and similar income
7
193
-
Interest payable and similar expenses
8
(120,055)
(27,221)
Profit before taxation
176,657
119,249
Tax on profit
9
107,911
(172,731)
Profit/(loss) for the financial period
284,568
(53,482)

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

S L RECYCLING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2025
- 9 -
Period
Year
ended
ended
30 June
31 January
2025
2024
as restated
Note 23
£
£
Profit/(loss) for the period
284,568
(53,482)
Other comprehensive income
-
-
Total comprehensive income for the period
284,568
(53,482)
S L RECYCLING LIMITED
BALANCE SHEET
AS AT
30 JUNE 2025
30 June 2025
- 10 -
30 June 2025
31 January 2024
as restated
Note 23
Notes
£
£
£
£
Fixed assets
Tangible assets
10
6,564,490
4,763,468
Current assets
Stocks
11
574,003
623,000
Debtors
12
740,688
359,339
Cash at bank and in hand
246,770
41,077
1,561,461
1,023,416
Creditors: amounts falling due within one year
13
(2,742,442)
(1,275,738)
Net current liabilities
(1,180,981)
(252,322)
Total assets less current liabilities
5,383,509
4,511,146
Creditors: amounts falling due after more than one year
14
(1,588,249)
(1,157,608)
Provisions for liabilities
Deferred tax liability
16
628,663
471,509
(628,663)
(471,509)
Net assets
3,166,597
2,882,029
Capital and reserves
Called up share capital
18
1
1
Profit and loss reserves
3,166,596
2,882,028
Total equity
3,166,597
2,882,029

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

The financial statements were approved and signed by the director and authorised for issue on 17 February 2026
Mr S Lewis
Director
Company registration number 08864255 (England and Wales)
S L RECYCLING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2025
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 January 2024:
Balance at 1 February 2023
1
3,880,196
3,880,197
Prior year adjustments
23
-
(944,686)
(944,686)
As restated
1
2,935,510
2,935,511
Year ended 31 January 2024:
Profit and total comprehensive income (as previously reported)
-
527,532
(53,482)
Prior period adjustments
23
-
(581,014)
(581,014)
Total comprehensive income (as restated)
-
(53,482)
(53,482)
Balance at 31 January 2024
1
2,882,028
2,882,029
Period ended 30 June 2025:
Profit and total comprehensive income
-
284,568
284,568
Balance at 30 June 2025
1
3,166,596
3,166,597
S L RECYCLING LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2025
- 12 -
2025
2024
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,707,470
368,375
Interest paid
(120,055)
(27,221)
Income taxes refunded/(paid)
105,033
(145,125)
Net cash inflow from operating activities
1,692,448
196,029
Investing activities
Purchase of tangible fixed assets
(628,616)
(983,675)
Proceeds from disposal of tangible fixed assets
40,972
400,000
Repayment of loans
5,896
(5,896)
Interest received
193
-
0
Net cash used in investing activities
(581,555)
(589,571)
Financing activities
Payment of finance leases obligations
(905,200)
(359,802)
Net cash used in financing activities
(905,200)
(359,802)
Net increase/(decrease) in cash and cash equivalents
205,693
(753,344)
Cash and cash equivalents at beginning of period
41,077
794,421
Cash and cash equivalents at end of period
246,770
41,077
S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
- 13 -
1
Accounting policies
Company information

S L Recycling Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pontyfelin Industrial Estate, New Inn, Pontypool, NP4 0DQ.

1.1
Reporting period

The accounts for the current period are for a length of 17 months from 1 February 2024 to 30 June 2025. The prior period is for a length of 12 months 1 February 2023 to 31 January 2024 and are therefore not entirely comparable.

1.2
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.

1.3
Going concern

Trading has been difficult over the last few years due to strong competition, depressed sales prices and operational factors including the investment in new plant and machinery. Sales and profitability have shown strong recovery following the end of the period reported in these finical statement.true

At 30 June 2025, the company had net current liabilities of £1.2 million (31 January 2024: £252 thousand); this was partly caused by the funding for the new equipment which creates a mismatch between short term liabilities and long term assets.

Management have prepared budgets and cashflow forecasts that demonstrate that the business can meet its liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements.

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

1.4
Revenue

Turnover represents amounts receivable for the sale of ferrous and non-ferrous metals, net of trade discounts, VAT and other sales-related taxes.

Turnover is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for goods provided.

Revenue from the sale of metals 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.

1.5
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.

S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 14 -

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
Not depreciated
Plant and equipment
10% reducing balance
Fixtures and fittings
10% reducing balance
Computers
25% reducing balance
Motor vehicles
10% reducing balance

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
Stocks

Stocks are valued at the lower of cost and net realisable value. Cost, for non-processed inventory, is the average purchase price of the raw materials. Processed ferrous inventory is valued at the cost of the raw materials and direct costs for the stage of processing incurred. This allocation of costs is based on the expected normal level of business activity. Non-ferrous processed inventory, where cost cannot be determined, is valued at selling price less margin, based on normal levels of activity, which is deemed to be akin to cost. Net realisable value is based on estimated selling price less further processing costs and delivery charges, where applicable.

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.

1.7
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.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses

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.

S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 15 -
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.

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 s ubsequently 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 company’s contractual obligations expire or are discharged or cancelled.

1.8
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 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.

S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 16 -

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.

1.9
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.

1.10
Retirement benefits

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

1.11
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.

S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Going concern

Trading has been difficult over the last few years due to strong competition, depressed sales prices and operational factors including the investment in new plant and machinery. Sales and profitability have shown strong recovery following the end of the period reported in these finical statement.

At 30 June 2025, the company had net current liabilities of £1.2 million (31 January 2024: £0.3 million); this was partly caused by the funding for the new equipment which creates a mismatch between short term liabilities and long term assets.

Management have prepared budgets and cashflow forecasts that demonstrate that the business can meet its liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements.

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

However, this assessment involved significant judgment.

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.

Valuation of stock

Quantities of inventories are determined using various estimation techniques, including observation, weighing and other industry methods and are subject to periodic physical verification.

Tangible fixed assets

The key uncertainties which require estimation and judgement by management are depreciation rates, asset impairment and residual value, which directly impact the profit/loss recognised on disposal. Depreciation is a significant charge in the financial statements with the depreciation charge for the year being £536,308 on assets with a net book value at the year end of £6,296,126. The judgement required in estimating the useful life of the company's assets poses some risk, however the current depreciation policies appropriately reflect the consumption of the assets concerned.

S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
- 18 -
3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Recycling of metals
15,154,491
11,548,518
2025
2024
£
£
Other revenue
Interest income
193
-
4
Operating profit
2025
2024
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses
2,970
-
0
Fees payable to the company's auditor for the audit of the company's financial statements
25,000
-
0
Depreciation of tangible fixed assets
430,796
363,866
Profit on disposal of tangible fixed assets
(164,029)
(100,000)
5
Employees

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

2025
2024
Number
Number
Administration
7
7
Drivers
8
9
Yard Operatives
14
15
Machine Operatives
3
5
Total
32
36

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,490,415
1,010,145
Social security costs
165,015
124,849
Pension costs
32,387
15,366
1,687,817
1,150,360
S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
- 19 -
6
Director's remuneration
2025
2024
£
£
Remuneration for qualifying services
56,770
44,024
Company pension contributions to defined contribution schemes
1,440
-
58,210
44,024
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
193
-
0
8
Interest payable and similar expenses
2025
2024
£
£
Other finance costs
Interest on finance leases and hire purchase contracts
119,875
27,221
Other interest
180
-
0
120,055
27,221
9
Taxation
2025
2024
as restated
£
£
Current tax
Adjustments in respect of prior periods
(265,065)
-
0
Deferred tax
Origination and reversal of timing differences
157,154
6,633
Prior year adjustment (see note 23)
-
0
166,098
Total deferred tax
157,154
172,731
Total tax (credit)/charge
(107,911)
172,731
S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
9
Taxation
(Continued)
- 20 -

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

2025
2024
£
£
Profit before taxation
176,657
119,249
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
44,164
29,812
Tax effect of expenses that are not deductible in determining taxable profit
24,072
2,321
Tax effect of income not taxable in determining taxable profit
(48)
(25,500)
Unutilised tax losses carried forward
155,716
-
0
Adjustments in respect of prior years
(66,750)
-
0
Prior year adjustment (See note 23)
-
0
166,098
Research and development tax credit
(160,032)
-
0
R&D tax credit in respect of prior years
(105,033)
-
0
Taxation (credit)/charge for the period
(107,911)
172,731
10
Tangible fixed assets (as restated, see note 23)
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 February 2024
844,420
4,197,036
755,604
6,092
325,991
6,129,143
Additions
447,944
2,415,386
77,385
18,256
14,495
2,973,466
Disposals
-
0
(954,793)
-
0
-
0
-
0
(954,793)
At 30 June 2025
1,292,364
5,657,629
832,989
24,348
340,486
8,147,816
Depreciation and impairment
At 1 February 2024
-
0
846,818
439,478
3,114
76,265
1,365,675
Depreciation charged in the period
-
0
336,093
53,586
5,377
35,740
430,796
Eliminated in respect of disposals
-
0
(213,145)
-
0
-
0
-
0
(213,145)
At 30 June 2025
-
0
969,766
493,064
8,491
112,005
1,583,326
Carrying amount
At 30 June 2025
1,292,364
4,687,863
339,925
15,857
228,481
6,564,490
At 31 January 2024
844,420
3,350,218
316,126
2,978
249,726
4,763,468
S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
10
Tangible fixed assets (as restated, see note 23)
(Continued)
- 21 -

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

2025
2024
£
£
Plant and equipment
3,519,130
1,917,948
11
Stocks
2025
2024
as restated (note 23)
£
£
Stocks
574,003
623,000
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
436,324
353,443
Corporation tax recoverable
160,032
-
0
Other debtors
144,332
5,896
740,688
359,339
13
Creditors: amounts falling due within one year
2025
2024
as restated (note 23)
Notes
£
£
Obligations under finance leases
15
611,945
467,641
Trade creditors
1,022,001
618,658
Taxation and social security
423,101
134,326
Other creditors
559,155
55,113
Accruals and deferred income
126,240
-
0
2,742,442
1,275,738
S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
- 22 -
14
Creditors: amounts falling due after more than one year
2025
2024
as restated (note 23)
Notes
£
£
Obligations under finance leases
15
1,588,249
1,157,608
15
Finance lease obligations
2025
2024
as restated (note 23)
Amounts due:
£
£
Within one year
611,945
467,641
After more than one year
1,588,249
1,157,608
2,200,194
1,625,249
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
611,945
467,641
In two to five years
1,588,249
1,157,608
2,200,194
1,625,249

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The hire purchase and finance lease obligations are secured over the assets to which they relate.

16
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
1,284,068
829,421
Tax losses
(655,405)
(357,912)
628,663
471,509
S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
16
Deferred taxation
(Continued)
- 23 -
2025
Movements in the period:
£
Liability at 1 February 2024
471,509
Charge to profit or loss
157,154
Liability at 30 June 2025
628,663

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,387
15,366

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.

18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
19
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
11,729
11,729
Years 2-5
17,894
26,788
29,623
38,517
S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
- 24 -
20
Related party transactions
Transactions with related parties

During the period the company entered into the following transactions with related parties:

T he company made sales to companies under the control of the director. The charge for these sales was £2,118,622 (2024: £nil). At 30 June 2025, amounts due from companies under the control of the directors was £144,332 (2024: £nil) which are included within Other Debtors.

21
Directors' transactions

Dividends totalling £178,430 (2024 - £0) were paid in the period in respect of shares held by the company's directors.

Loans
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director
-
5,896
556,310
(665,210)
(103,004)
5,896
556,310
(665,210)
(103,004)
22
Ultimate controlling party

The ultimate controlling party is Mr S Lewis.

23
Prior period adjustment

Errors were note d as follows:

Deferred tax

Deferred tax had not been accounted for in prior years.

Fixed Assets and Finance Leases

There were a number of errors in prior years accounts, including assets owned but not showing on the fixed asset register, assets remaining on the asset register that had already been disposed of and incorrect depreciation rates being used.

Stock

Historically, stock had been recorded at selling price rather than the lower of cost and NRV.

Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Jan 2024
£
£
£
Fixed assets
Tangible assets
4,551,438
212,030
4,763,468
Current assets
Stocks
890,000
(267,000)
623,000
S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
23
Prior period adjustment
As previously reported
Adjustment
As restated at 31 Jan 2024
£
£
£
(Continued)
- 25 -
Creditors due within one year
Finance leases
(256,261)
(211,380)
(467,641)
Taxation
(140,522)
6,196
(134,326)
Other creditors
(619,771)
(54,000)
(673,771)
Creditors due after one year
Finance leases
(417,571)
(740,037)
(1,157,608)
Provisions for liabilities
Deferred tax
-
(471,509)
(471,509)
Net assets
4,407,729
(1,525,700)
2,882,029
Capital and reserves
Profit and loss reserves
4,407,728
(1,525,700)
2,882,028
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 January 2024
£
£
£
Cost of sales
(7,764,863)
(114,479)
(7,879,342)
Administrative expenses
(2,115,166)
(300,000)
(2,415,166)
Taxation
(6,196)
(166,535)
(172,731)
Profit/(loss) for the financial period
527,532
(581,014)
(53,482)
Reconciliation of changes in equity
1 February
31 January
2023
2024
£
£
Adjustments to prior period
Corrrection of tax
(298,778)
(465,313)
Correction of fixed assets and hire purchase
(276,908)
(793,387)
Correction of stock
(369,000)
(267,000)
Total adjustments
(944,686)
(1,525,700)
Equity as previously reported
3,880,197
4,407,729
Equity as adjusted
2,935,511
2,882,029
Analysis of the effect upon equity
Profit and loss reserves
(944,686)
(1,525,700)
S L RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
23
Prior period adjustment
(Continued)
- 26 -
Reconciliation of changes in profit/(loss) for the previous financial period
2024
£
Adjustments to prior period
Corrrection of tax
(166,535)
Correction of fixed assets and hire purchase
(516,479)
Correction of stock
102,000
Total adjustments
(581,014)
Profit as previously reported
527,532
Loss as adjusted
(53,482)
24
Cash generated from operations
2025
2024
£
£
Profit/(loss) after taxation
284,568
(53,482)
Adjustments for:
Taxation (credited)/charged
(107,911)
172,731
Finance costs
120,055
27,221
Investment income
(193)
-
0
Gain on disposal of tangible fixed assets
(164,029)
(100,000)
Depreciation and impairment of tangible fixed assets
430,796
363,866
Movements in working capital:
Decrease in stocks
48,997
238,000
Increase in debtors
(227,213)
(127,274)
Increase/(decrease) in creditors
1,322,400
(152,687)
Cash generated from operations
1,707,470
368,375
25
Analysis of changes in net debt
1 February 2024
Cash flows
30 June 2025
£
£
£
Cash at bank and in hand
41,077
205,693
246,770
Lease liabilities
(1,625,249)
(574,945)
(2,200,194)
(1,584,172)
(369,252)
(1,953,424)
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