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Registered number: 08358179
Kocaer Steel UK Limited
Strategic Report, Director's Report and
Financial Statements
For The Year Ended 31 December 2025
Waterfords Europe Limited t/a Jon Avol Waterfords
Chartered Certified Accountants and Registered Auditors
C/O 204 Field End Road
Pinner
Middlesex
HA5 1RD
Kocaer Steel UK Limited
Contents
Contents

| Page
--- | ---
Strategic Report | 1
Director's Report | 2
Independent Auditor's Report | 3—4
Income Statement | 5
Statement of Comprehensive Income | 6
Statement of Financial Position | 7
Statement of Changes in Equity | 8
Statement of Cash Flows | 9
Notes to the Statement of Cash Flows | 10
Notes to the Financial Statements | 11—19

Page 1
Kocaer Steel UK Limited
Strategic Report
For The Year Ended 31 December 2025
Strategic Report
The director presents his strategic report for the year ended 31 December 2025.
Principal Activity
Kocaer Steel UK Limited operates as a distributor and supplier of steel products, including structural steel sections, sheet steel, reinforcement bars and bespoke cut-to-size solutions. The Company serves customers primarily within the UK construction, manufacturing and engineering sectors.
The Company sources steel products from its wider group and third-party suppliers and distributes them to customers across the UK, utilising a combination of owned and leased warehousing facilities. Revenue is generated through the sale of finished steel products, with margins influenced by raw material prices, foreign exchange movements, logistics costs and prevailing market demand.
Principal Risks and Uncertainties
The directors monitor and assess a range of risks that could affect the business:
Market Risk: The steel industry is cyclical and subject to global commodity pricing. A sudden
downturn in demand or pricing could affect profitability.
.
Supply Chain Risk: The business depends on consistent supply from domestic and international steel
mills. Disruption to these supply chains (e.g., due to geopolitical instability or trade barriers)
could affect availability and costs.
Credit Risk: As a B2B supplier, the company is exposed to customer default risk. Credit controls
and active debtor monitoring mitigate this exposure.
Environmental and Regulatory Risk: Increasing environmental regulation and ESG pressures may impact
operational costs or customer procurement choices.
The company actively monitors developments in these areas and adapts strategy accordingly.
On behalf of the board

Mr Salih Kurtoglu Director
03/02/2026

Page 1
Page 2
Kocaer Steel UK Limited
Company No. 08358179
Director's Report For The Year Ended 31 December 2025
Director's Report
The director presents his report and the financial statements for the year ended 31 December 2025.
Directors
The director who held office during the year were as follows:

Mr Salih Kurtoglu

Statement of Director's Responsibilities
The director is responsible for preparing the Strategic Report, the Director's 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the director must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the director is required to:

- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards, comprising FRS102, 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 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.
The director is responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Director's Report is approved:

- so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
- they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Independent Auditors
The auditors, Waterfords Europe Limited t/a Jon Avol Waterfords, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board

Mr Salih Kurtoglu Director
03/02/2026

Page 2
Page 3
Independent Auditor's Report
to the Members of
Kocaer Steel UK Limited
Independent Auditor's Report
Opinion
We have audited the financial statements of Kocaer Steel UK Limited for the year ended 31 December 2025 which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit/(loss) for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the 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 entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The 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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on Other Matters Prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:

- the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Page 3
Page 4
Independent Auditor's Report (continued)
to the Members of
Kocaer Steel UK Limited
Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.
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 or 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 Directors
As explained more fully in the Director's Responsibilities Statement set out on page 2, 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 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 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the relevant controls related to certain business processes. These processes related to inventory,
revenue recognition, trade receivables, bank loan facilities and cash at bank. We also performed testing of the relevant
general IT controls associated with the production of certain system generated data from the key accounting and
reporting systems. This was to assess whether we could adopt a controls reliance approach which would impact the
extent of substantive audit testing that was required. We selected a sample of relevant controls for testing based on the
frequency of each control. Based on the procedures performed, we were able to take a controls reliance approach on
the IT systems and in the business processes that we planned.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use Of Our Report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters that 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.

Sanjay Anand FCCA (Senior Statutory Auditor) for and on behalf of Waterfords Europe Limited t/a Jon Avol Waterfords , Statutory Auditor
04/02/2026

Page 4
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Kocaer Steel UK Limited
Income Statement
For The Year Ended 31 December 2025
Income Statement

| 2025 |  | 2024
--- | --- | --- | ---
| Notes | £ |  | £
TURNOVER | 3 | 32,423,993 |  | 34,737,883
Cost of sales |  | (29,240,736 ) |  | (32,418,412 )
GROSS PROFIT |  | 3,183,257 |  | 2,319,471
Administrative expenses |  | (1,261,230 ) |  | (1,279,455 )
Other operating income |  | - |  | 32,805
OPERATING PROFIT | 5 | 1,922,027 |  | 1,072,821
Interest payable and similar charges | 10 | (1,057,683 ) |  | (1,068,003 )
PROFIT BEFORE TAXATION |  | 864,344 |  | 4,818
Tax on Profit | 11 | (10,203 ) |  | -
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR |  | 854,141 |  | 4,818

The notes on pages 10 to 19 form part of these financial statements.
Page 5
Page 6
Kocaer Steel UK Limited
Statement of Comprehensive Income
For The Year Ended 31 December 2025
Statement of Comprehensive Income

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
PROFIT FOR THE FINANCIAL YEAR |  | 854,141 |  | 4,818
OTHER COMPREHENSIVE INCOME FOR THE YEAR |  | - |  | -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |  | 854,141 |  | 4,818

Page 6
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Kocaer Steel UK Limited
Statement of Financial Position
As At 31 December 2025
Statement of Financial Position
Registered number: 08358179

| 2025 | 2024
--- | --- | ---
| Notes | £ | £ | £ | £
FIXED ASSETS
Tangible Assets | 12 |  | 4,063,498 |  | 4,553,871
Investments | 13 |  | 89 |  | 89
|  |  | 4,063,587 |  | 4,553,960
CURRENT ASSETS
Stocks | 14 | 9,076,611 |  | 14,127,482 |
Debtors | 15 | 8,386,623 |  | 6,511,601 |
Cash at bank and in hand |  | 4,148,174 |  | 2,081,188 |
|  | 21,611,408 |  | 22,720,271 |
Creditors: Amounts Falling Due Within One Year | 16 | (13,700,635 ) |  | (19,426,535 ) |
NET CURRENT ASSETS (LIABILITIES) |  |  | 7,910,773 |  | 3,293,736
TOTAL ASSETS LESS CURRENT LIABILITIES |  |  | 11,974,360 |  | 7,847,696
Creditors: Amounts Falling Due After More Than One Year | 17 |  | (7,244,436 ) |  | (3,971,913 )
NET ASSETS |  |  | 4,729,924 |  | 3,875,783
CAPITAL AND RESERVES
Called up share capital | 20 |  | 4,000,000 |  | 4,000,000
Income Statement |  |  | 729,924 |  | (124,217 )
SHAREHOLDERS' FUNDS |  |  | 4,729,924 |  | 3,875,783

On behalf of the board

Mr Salih Kurtoglu Director
03/02/2026

The notes on pages 10 to 19 form part of these financial statements.
Page 7
Page 8
Kocaer Steel UK Limited
Statement of Changes in Equity
For The Year Ended 31 December 2025
Statement of Changes in Equity

| Share Capital | Income Statement | Total
--- | --- | --- | ---
| £ | £ | £
As at 1 January 2024 | 4,000,000 | (129,035 ) | 3,870,965
Profit for the year and total comprehensive income | - | 4,818 | 4,818
As at 31 December 2024 and 1 January 2025 | 4,000,000 | (124,217 ) | 3,875,783
Profit for the year and total comprehensive income | - | 854,141 | 854,141
As at 31 December 2025 | 4,000,000 | 729,924 | 4,729,924

Page 8
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Kocaer Steel UK Limited
Statement of Cash Flows
For The Year Ended 31 December 2025
Statement of Cash Flows

| 2025 |  | 2024
| Notes | £ |  | £
Cash flows from operating activities
Net cash generated from operations | 1 | 7,745 |  | 4,274,492
Interest paid |  | (1,057,683 ) |  | (439,013 )
Tax refunded/(paid) |  | 8,169 |  | (8,169 )
Net cash (used in)/generated from operating activities |  | (1,041,769 ) |  | 3,827,310
Cash flows from investing activities
Purchase of tangible assets |  | (7,447 ) |  | (2,186 )
Proceeds from disposal of tangible assets |  | - |  | (7,190 )
Net cash used in investing activities |  | (7,447 ) |  | (9,376 )
Cash flows from financing activities
Proceeds from new bank borrowings |  | 3,735,745 |  | 3
Repayment of bank borrowings |  | - |  | (7,629,160 )
Proceeds from new other loans |  | - |  | 2,795,244
Repayment of other loans |  | (148,152) |  | -
Repayment of finance leases |  | (471,391 ) |  | (465,781 )
Net cash generated from/(used in) financing activities |  | 3,116,202 |  | (5,299,694 )
Increase/(decrease) in cash and cash equivalents |  | 2,066,986 |  | (1,481,760 )
Cash and cash equivalents at beginning of year | 2 | 2,081,188 |  | 3,562,948
Cash and cash equivalents at end of year | 2 | 4,148,174 |  | 2,081,188

Page 9
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Kocaer Steel UK Limited
Notes to the Statement of Cash Flows
For The Year Ended 31 December 2025
Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Profit for the financial year | 854,141 |  | 4,818
Adjustments for:
Tax on profit | 10,203 |  | -
Interest expense | 1,057,683 |  | 439,013
Depreciation of tangible assets | 497,820 |  | 493,799
Movements in working capital:
Decrease/(increase) in stocks | 5,050,871 |  | (934,235 )
(Increase)/decrease in trade and other debtors | (1,875,022 ) |  | 648,412
(Decrease)/increase in trade and other creditors | (5,587,951 ) |  | 3,622,685
Net cash generated from operations | 7,745 |  | 4,274,492

2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Cash at bank and in hand | 4,148,174 |  | 2,081,188

3. Analysis of changes in net debt

| As at 1 January 2025 | Cash flows | As at 31 December 2025
--- | --- | --- | ---
| £ | £ | £
Cash at bank and in hand | 2,081,188 | 2,066,986 | 4,148,174
Finance leases | (3,315,827) | 471,391 | (2,844,436)
Debts falling due within one year | (5,257,601 ) | 148,152 | (5,109,449 )
Debts falling due after more than one year | (656,086) | (3,743,914) | (4,400,000)
| (7,148,326) | (1,057,385) | (8,205,711)

Page 10
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Kocaer Steel UK Limited
Notes to the Financial Statements
For The Year Ended 31 December 2025
Notes to the Financial Statements
1. General Information
Kocaer Steel UK Limited is a private company, limited by shares, incorporated in England & Wales, registered number 08358179 . The registered office is 3 Alexandra Gate, Ffordd, Pengam, Cardiff, Wales, CF24 2SA.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.3. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold | 2% on cost (excluding land)
Right to Use Asset | 2% on cost (excluding land)
Fixtures & Fittings | 5 years staright line
Computer Equipment | 3 years staright line

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable
amount being estimated where such indicators exist. Where the carrying value exceeds the
recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for
possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount
of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit
to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets
that includes the asset and generates cash inflows that largely independent of the cash inflows
from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the cash-generating units that are expected to benefit from
the synergies of the combination, irrespective of whether other assets or liabilities of the
company are assigned to those units.
Page 11
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Kocaer Steel UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.4. Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.
Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably the cost model will be adopted.
Dividends and other distributions received from the investment are recognised as income withoutregard to whether the distributions are from accumulated profits of the associate arising before orafter the date of acquisition
2.5. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the income statement as incurred.
2.6. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the income statement. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the income statement.
2.7. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.8. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
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Kocaer Steel UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.9. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
3. Turnover
Turnover represents the fair value of consideration receivable for goods supplied and services rendered during the year, stated net of value added tax, trade discounts and intra-group transactions.
All turnover arises from the principal activitiy of the company.
The company has elected not to disclose an analysis of turnover by geographical market.
In the opinion of the directors, such disclosure would be seriously prejudicial to the interests of the company, as it would provide commercially sensitive information to competitors regarding the company’s market positioning and revenue distribution.
4. Other Operating Income

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Other operating income | - |  | 32,805
| - |  | 32,805

5. Operating Profit
The operating profit is stated after charging:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Depreciation of tangible fixed assets | 497,820 |  | 493,799

6. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Audit Services
Audit of the company's financial statements | 10,000 |  | 7,150

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Kocaer Steel UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
7. Staff Costs
Staff costs, including directors' remuneration, were as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Wages and salaries | 486,667 |  | 439,019
Social security costs | 54,902 |  | 49,497
Other pension costs | 8,462 |  | 9,504
| 550,031 |  | 498,020

8. Average Number of Employees
Average number of employees, including directors, during the year was: 10 (2024: 8)
10 8
9. Director's remuneration

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Emoluments | 120,000 |  | 95,400

10. Interest Payable and Similar Charges

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Bank loans and overdrafts | 325,808 |  | 232,382
Factoring charges | 310,971 |  | 393,122
Finance charges payable under finance leases and hire purchase contracts | 178,879 |  | 206,631
Foreign exchange charges | 242,025 |  | 235,868
| 1,057,683 |  | 1,068,003

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Kocaer Steel UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
11. Tax on Profit

The tax charge on the profit for the year was as follows:
| Tax Rate | 2025 |  | 2024
--- | --- | --- | --- | ---
| 2025 | 2024 | £ |  | £
Current tax
UK Corporation Tax | 25.0% | 19.0% | 10,203 |  | -
Total tax charge for the period | 10,203 |  | -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
| 2025 |  | 2024
| £ |  | £
Profit before tax | 864,344 |  | 4,818
Tax on profit at 25% (UK standard rate) | 216,086 |  | 915
Goodwill/depreciation not allowed for tax | 124,570 |  | -
Expenses not deductible for tax purposes | 45,319 |  | -
Tax losses utilised | (204,932 ) |  | (915 )
Capital allowances | 1,936 |  | -
Short term timing differences | (172,776 ) |  | -
Total tax charge for the period | 10,203 |  | -
-

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Kocaer Steel UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
12. Tangible Assets

| Land & Property
--- | ---
| Freehold | Right to Use Asset | Fixtures & Fittings | Computer Equipment | Total
| £ | £ | £ | £ | £
Cost
As at 1 January 2025 | 1,312,995 | 4,782,798 | 24,589 | 21,309 | 6,141,691
Additions | - | - | 4,958 | 2,489 | 7,447
As at 31 December 2025 | 1,312,995 | 4,782,798 | 29,547 | 23,798 | 6,149,138
Depreciation
As at 1 January 2025 | 10,563 | 1,544,644 | 11,933 | 20,680 | 1,587,820
Provided during the period | 8,710 | 477,797 | 9,307 | 2,006 | 497,820
As at 31 December 2025 | 19,273 | 2,022,441 | 21,240 | 22,686 | 2,085,640
Net Book Value
As at 31 December 2025 | 1,293,722 | 2,760,357 | 8,307 | 1,112 | 4,063,498
As at 1 January 2025 | 1,302,432 | 3,238,154 | 12,656 | 629 | 4,553,871

13. Investments

| Subsidiaries
--- | ---
| £
Cost or Valuation
As at 1 January 2025 | 89
As at 31 December 2025 | 89
Provision
As at 1 January 2025 | -
As at 31 December 2025 | -
Net Book Value
As at 31 December 2025 | 89
As at 1 January 2025 | 89

14. Stocks

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Finished goods | 9,076,611 |  | 14,127,482

15. Debtors

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Due within one year
Trade debtors | 7,943,753 |  | 6,295,563
Other debtors | 442,870 |  | 216,038
| 8,386,623 |  | 6,511,601

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Kocaer Steel UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
16. Creditors: Amounts Falling Due Within One Year

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Trade creditors | 5,465,752 |  | 11,172,925
Bank Invoice Discounting Facility | 5,109,449 |  | 5,257,601
Other creditors | 2,299 |  | 1,597
Corporation tax | 15,250 |  | 5,047
Taxation and social security | 3,098,483 |  | 2,989,365
Accruals and deferred income | 9,402 |  | -
| 13,700,635 |  | 19,426,535

17. Creditors: Amounts Falling Due After More Than One Year

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Net obligations under finance lease and hire purchase contracts | 2,844,436 |  | 3,315,827
Bank loans | 4,400,000 |  | 656,086
| 7,244,436 |  | 3,971,913

-
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Kocaer Steel UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
18. Loans
FINANCIAL LIABILITIES - BORROWINGS
An analysis of the maturity of loans is given below:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Amounts falling due within one year or on demand:
Other loans | 5,109,449 |  | 5,257,601

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Amounts falling due between one and five years:
Bank loans | 4,400,000 |  | 656,086

|  | 2025 | 2024
|  | £ | £
Current: |  |  |
Bank invoice discounting |  | 5,109,449 | 5,257,601
Non Current: |  |  |
Right to use Asset Leases (See Note 19) |  | 2,844,436 | 3,315,827
Loans |  | 4,400,000 | 656,086
|  | 7,244,436 | 3,971,913
Terms and debt repayment schedule | I year or less | 2-5 years | Totals
| £ | £ | £
Bank invoice diiscounting | 5,109,449 | - | 5,109,449
Bank loans | - | 4,400,000 | 4,400,000
Right to use asset finance lease | - | 2,844,436 | 2,844,4361
| 5,109,449 | 7,244,436 | 12,353,885
The invoice discounting facility is securted by a fixed and floating charge over the assets of the Company.
The bank loans are secured by a guarantee from the ultimate holding company. |

-
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Kocaer Steel UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
19. Obligations Under Finance Leases and Hire Purchase

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
The future minimum finance lease payments are as follows:
Later than one year and not later than five years | 2,844,436 |  | 3,315,827

Right-of-use assets
Property, plant and equipment

|  | 2025 | 2024
|  | £ | £
COST |  |  |
At 1 January 2023 |  | 4,782,768 | 4,782,798
|  | 4,782,768 | 4,782,498
DEPRECIATION |  |  |
At I January 2023 |  | 1,544,644 | 1,065,888
Charge for the year |  | 477,797 | 478,756
|  | 2,022,441 | 1,544,644
NET BOOK VALUE |  | 2,760,357 | 3,238,154
Lease Liabilities |  |  |
Minimum leaase payments fall due as follows: |  |
|  | 2025 | 2024
|  | £ | £
Gross obligations repayable: |  |  |
Between one and five years |  | 2,844,436 | 3,315,827

20. Share Capital

| 2025 |  | 2024
--- | --- | --- | ---
Allotted, called up and fully paid | £ |  | £
1 Ordinary Shares of £ 4,000,000.00 each | 4,000,000 |  | 4,000,000

21. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to the income statement in respect of defined contribution schemes was £8,462 (2024: £9,504).
At the statement of financial position date contributions of £NIL were due to the fund and are included in creditors.
22. Controlling Parties
The company's ultimate controlling party is Kocaer Celik Sanayi Ve Ticaret Anonim Sirketi by virtue of their interest in the share capital of the company. Kocaer Celik Sanayi Ve Ticaret Anonim Sirketi is controlled by Mr Hakan Kocae.
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