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Reliance Scrap Metal Merchants (Parkstone) Limited
Annual Report and Financial Statements
Year Ended 30 April 2025

Registration number: 00532957

Reliance Scrap Metal Merchants (Parkstone) Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4 to 5
Statement of Directors' Responsibilities | 6
Independent Auditor's Report | 7 to 10
Profit and Loss Account | 11
Balance Sheet | 12
Statement of Changes in Equity | 13
Statement of Cash Flows | 14
Notes to the Financial Statements | 15 to 31

Reliance Scrap Metal Merchants (Parkstone) Limited

Company Information

Director | Mrs R Matthews Mrs N J Hawkins

Registered office | Towngate House 2-8 Parkstone Road Poole Dorset BH15 2PW

Auditors | PKF Francis Clark Chartered Accountants & Registered Auditors Towngate House 2-8 Parkstone Road Poole Dorset BH15 2PW

Reliance Scrap Metal Merchants (Parkstone) Limited

Strategic Report for the Year Ended 30 April 2025

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

Principal activity

The principal activity of the company is the recycling of ferrous and non-ferrous metals. The company is actively engaged in all stages of the recycling process, from the reclamation and processing to the haulage and freight activity necessary for the delivery of recycled commodities to the company’s customer base.

Fair review of the business

The Company’s financial performance showed early signs of returning towards expected levels. However, market conditions softened progressively over the course of the year, limiting overall momentum. Although turnover increased, input costs rose at a faster rate, resulting in margin compression.
Inflationary pressures remained a significant factor, particularly in relation to energy and other manufacturing inputs, which continued to drive higher production costs. These cost increases were not fully recoverable through pricing, thereby adversely affecting profitability.
The wider global market environment remained uncertain, and the competitive dynamics experienced in the prior year persisted. Continued competition for volume placed further pressure on margins, constraining the Company’s ability to convert revenue growth into improved operating performance.
As a result, while revenue growth was achieved, increased operating costs reduced overall profitability. Gross Profit remains a key performance indicator for the Board, and the impact of sustained cost inflation and competitive pricing pressures will continue to be closely monitored in the forthcoming financial year.
Whilst there is on-going uncertainty in global markets and challenging market circumstances, The company believe that the global drive to net zero will result in stronger markets for the sector. The directors continue to oversee an experienced management team who are managing the business in a manner that ensures it provide a quality service and recycled material to its customers.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs | Unit | 2025 | 2024
Turnover | £ | 24,922,840 | 23,502,958
Gross profit margin | % | 3 | 5
EBITDA (excluding exceptional expense) | £ | 405,755 | 506,020

Reliance Scrap Metal Merchants (Parkstone) Limited

Strategic Report for the Year Ended 30 April 2025

Principal risks and uncertainties

The company is exposed to risks associated with fluctuations in metal prices which the company mitigates by reviewing market rates and setting prices to maximise margin whilst taking account of supply and demand pressures.
Environmental and health and safety risks are controlled through careful planning and management, risk assessments, inspection visits and the use of external consultants.

Financial Risk Management

The business' principal financial instruments comprise bank balances, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The company also has an invoice discounting facility. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Loans comprise loans from financial institutions. The interest rate and monthly repayments on the loans from financial institutions are fixed. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.
The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.

Approved by the Board on 22 April 2026 and signed on its behalf by:

......................................... Mrs R Matthews Director |  |

Reliance Scrap Metal Merchants (Parkstone) Limited

Directors' Report for the Year Ended 30 April 2025

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

Going concern

The financial statements have been prepared on a going concern basis.
At 30 April 2025 the Company reported net current liabilities of £334,627 and a loss after taxation of £1,237,345 for the financial year. This loss included an exceptional cost of £1,083,026 (see note 6 and note 25). The company has been in breach of financial covenants during the year to 30 April 2025 and since the balance sheet date.
A 5-year plan has been prepared by the directors which include financial and cashflow forecasts. Key assumptions included within the cashflow forecasts include:
• Existing levels of facilities will continue to be made available to the company for the foreseeable future
• Identified loss making contracts have successfully exited
• Notwithstanding the point above, a level of growth in turnover and associated costs will be achieved annually
• Amounts due from related parties will not be recovered for the foreseeable future
The cashflow forecasts prepared indicate the company will be able to continue to operate within its current level of facilities available. However, the forecasts do show breaches in covenant compliance .
The company is exposed to movements in metal prices, and as a result the level of growth forecast may be substantially different to that achieved. Applying sensitivity analysis to the forecasts for a realistic potential downturn in trade would indicate that the company would be reliant on securing additional funding beyond the facilities currently available to them.
The directors are currently in discussion with the bank to re-negotiate the existing facilities. Whilst the directors are pleased with the interactions they have had with the bank, at the date of approval of these financial statements no agreement has been reached.
In the event that the bank is unwilling to provide additional facilities or call in facilities due to covenant breaches, the directors would implement other plans to ensure liabilities are serviced. These plans include the sale of a certain strategic asset of the company which would not impact the day-to-day trade of the business. However, the value of the strategic asset may not be sufficient to repay all facilities which in turn may impact the going concern status of the company.
The ongoing refinancing together with the historical and forecasted breaches in covenants and sensitivity analysis performed on the cashflow forecasts indicate that a material uncertainty exists which may cast significant doubt on the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that would result if the Company were unable to continue as a going concern.

Reliance Scrap Metal Merchants (Parkstone) Limited

Directors' Report for the Year Ended 30 April 2025

Directors of the company

The directors who held office during the year were as follows:

Mrs R Matthews

Mrs N J Hawkins

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Financial instruments
The director has chosen to include information on the company's financial risk management objectives and policies in their Strategic Report.

Approved by the Board on 22 April 2026 and signed on its behalf by:

......................................... Mrs R Matthews Director |  |

Reliance Scrap Metal Merchants (Parkstone) Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

• | select suitable accounting policies and apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

Reliance Scrap Metal Merchants (Parkstone) Limited

Independent Auditor's Report to the Members of Reliance Scrap Metal Merchants (Parkstone) Limited

Opinion

We have audited the financial statements of Reliance Scrap Metal Merchants (Parkstone) Limited (the 'company') for the year ended 30 April 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the company's affairs as at 30 April 2025 and of its 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 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.

Material uncertainty relating to going concern

We draw attention to note 2, page 16, of the financial statements which indicates that, whilst the company is in discussions to refinance existing facilities, the company has and is forecasting to breach covenants and sensitivity analysis prepared on forecasts indicate additional facilities may be required. As stated in note 2, these events and conditions, along with other matters as set forth in note 2, indicate a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.
Our opinion is not modified in this matter.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Reliance Scrap Metal Merchants (Parkstone) Limited

Independent Auditor's Report to the Members of Reliance Scrap Metal Merchants (Parkstone) Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and 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 our 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 and the Directors' Report.

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

• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• | the financial statements are not in agreement with the accounting records and returns; or
• | certain disclosures of directors' remuneration specified by law are not made; or
• | we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

Reliance Scrap Metal Merchants (Parkstone) Limited

Independent Auditor's Report to the Members of Reliance Scrap Metal Merchants (Parkstone) Limited

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

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to Reliance Scrap Metal Merchants (Parkstone) Limited. Our understanding was gained through appropriate audit engagement team selection (ensuring competence and capability to recognise non-compliance) and discussions with management. This covered any knowledge or evidence of actual and potential fraud, litigation and claims, which was followed up with corroborative audit review work. Key regulations we identified were breaches around health and safety regulations as well as employment law. We considered the extent to which non-compliance with these laws and regulations may have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as The Companies Act 2006 and relevant tax legislation.
Based on this understanding we designed our audit procedures to identify non-compliance with relevant laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances of fraud, of which there were none.
• Review of legal and professional costs to identify any possible non-compliance.
We assessed the susceptibility of the financial statements to material misstatement through management override or fraud and obtained an understanding of the controls in place to mitigate the risk of fraud. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key risk we identified was in relation to the completeness of revenue and the existence and valuation of stock. Based upon our understanding we designed and conducted audit procedures including:
• Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
• Reviewed estimates and judgements made in the accounts for any indication of bias, and challenged assumptions used by management in making the estimates.
• Substantive testing of sales to delivery notes to ensure revenue recognition is complete in the accounts.
• Attended a stock count at the year end date with pictures taken for all significant stock lines and additional photo evidence where appropriate to compare against prior year stock lines to confirm managements estimations were accurate.

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. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

Reliance Scrap Metal Merchants (Parkstone) Limited

Independent Auditor's Report to the Members of Reliance Scrap Metal Merchants (Parkstone) Limited

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

Use of our report

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

......................................
Chloe Mills FCA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor
Towngate House
2-8 Parkstone Road
Poole
Dorset
BH15 2PW

22 April 2026

Reliance Scrap Metal Merchants (Parkstone) Limited

Profit and Loss Account

Year Ended 30 April 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 24,922,840 | 23,502,958
Cost of sales |  | (24,223,708) | (22,386,347)
Gross profit |  | 699,132 | 1,116,611
Administrative expenses |  | (773,864) | (1,093,965)
Exceptional costs | 6 | (1,083,026) | -
Other operating income | 4 | - | 100
Operating (loss)/profit | 5 | (1,157,758) | 22,746
Other interest receivable and similar income | 7 | 24,752 | 23,596
Interest payable and similar expenses | 10 | (122,798) | (172,096)
|  | (98,046) | (148,500)
Loss before tax |  | (1,255,804) | (125,754)
Tax on loss | 11 | 18,459 | (30,750)
Loss for the financial year |  | (1,237,345) | (156,504)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Reliance Scrap Metal Merchants (Parkstone) Limited

Balance Sheet

30 April 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 13 | 3,551,486 | 3,965,570
Investments | 14 | 1 | 1
|  | 3,551,487 | 3,965,571
Current assets |  |  |
Stocks | 15 | 676,183 | 919,143
Debtors | 16 | 2,263,380 | 2,363,334
Cash at bank and in hand |  | 747 | 292,303
|  | 2,940,310 | 3,574,780
Creditors: Amounts falling due within one year | 18 | (3,274,937) | (2,645,001)
Net current (liabilities)/assets |  | (334,627) | 929,779
Total assets less current liabilities |  | 3,216,860 | 4,895,350
Creditors: Amounts falling due after more than one year | 18 | (482,175) | (804,799)
Provisions for liabilities | 21 | (437,367) | (544,388)
Net assets |  | 2,297,318 | 3,546,163
Capital and reserves |  |  |
Called up share capital |  | 627 | 627
Capital redemption reserve | 22 | 373 | 373
Profit and loss account | 22 | 2,296,318 | 3,545,163
Shareholders' funds |  | 2,297,318 | 3,546,163

Approved and authorised by the Board on 22 April 2026 and signed on its behalf by:

......................................... Mrs R Matthews Director

Company Registration Number: 00532957

Reliance Scrap Metal Merchants (Parkstone) Limited

Statement of Changes in Equity

Year Ended 30 April 2025

| Share capital £ | Capital redemption reserve £ | Profit and loss account £ | Total £
At 1 May 2024 | 627 | 373 | 3,545,163 | 3,546,163
Loss for the year | - | - | (1,237,345) | (1,237,345)
Dividends | - | - | (11,500) | (11,500)
At 30 April 2025 | 627 | 373 | 2,296,318 | 2,297,318

| Share capital £ | Capital redemption reserve £ | Profit and loss account £ | Total £
At 1 May 2023 | 627 | 373 | 3,803,667 | 3,804,667
Loss for the year | - | - | (156,504) | (156,504)
Dividends | - | - | (102,000) | (102,000)
At 30 April 2024 | 627 | 373 | 3,545,163 | 3,546,163

Reliance Scrap Metal Merchants (Parkstone) Limited

Statement of Cash Flows

Year Ended 30 April 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
Loss for the year |  | (1,237,345) | (156,504)
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 5 | 428,084 | 494,178
(Profit)/loss on disposal of tangible assets |  | (397,500) | 101,802
Finance income | 7 | (24,752) | (23,596)
Finance costs | 10 | 122,798 | 172,096
Income tax expense | 11 | (18,459) | 30,750
|  | (1,127,174) | 618,726
Working capital adjustments |  |  |
Decrease in stocks | 15 | 242,960 | 228,995
Decrease/(increase) in trade debtors | 16 | 99,954 | (116,568)
Increase in trade creditors | 18 | 237,389 | 240,248
Cash generated from operations |  | (546,871) | 971,401
Income taxes received/(paid) | 11 | 62,615 | (23,195)
Net cash flow from operating activities |  | (484,256) | 948,206
Cash flows from investing activities |  |  |
Interest received | 7 | 24,752 | 23,596
Acquisitions of tangible assets |  | (14,000) | (507,890)
Proceeds from sale of tangible assets |  | 397,500 | 363,448
Net cash flows from investing activities |  | 408,252 | (120,846)
Cash flows from financing activities |  |  |
Interest paid | 10 | (122,798) | (172,096)
Proceeds from bank borrowing draw downs |  | (228,004) | (248,651)
Payments to finance lease creditors |  | (360,760) | (200,933)
Dividends paid |  | (11,500) | (102,000)
Net cash flows from financing activities |  | (723,062) | (723,680)
Net (decrease)/increase in cash and cash equivalents |  | (799,066) | 103,680
Cash and cash equivalents at 1 May |  | (98,637) | (202,317)
Cash and cash equivalents at 30 April |  | (897,703) | (98,637)

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Towngate House
2-8 Parkstone Road
Poole
Dorset
BH15 2PW

The principal place of business is:
78-86 Nuffield Road
Poole
Dorset
BH17 0RS

These financial statements were authorised for issue by the Board on 22 April 2026.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are presented in Pounds Sterling, rounded to the nearest whole pound.

Key sources of estimation uncertainty

Due to the access requirements at the yard and the large volume of metal stock held, it is not practical to weigh all stock when completing the monthly stock take procedures. The volume of each stock type is instead estimated by an employee of the company (who is also the main shareholder and spouse of the Director of the company), who has considerable experience in this industry. The level of stock recorded in these financial statements are in line with this estimate. The carrying amount is £676,183 (2024: £919,143).

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

Going concern

The financial statements have been prepared on a going concern basis.
At 30 April 2025 the Company reported net current liabilities of £334,627 and a loss after taxation of £1,237,345 for the financial year. This loss included an exceptional cost of £1,083,026 (see note 21). The company has been in breach of financial covenants during the year to 30 April 2025 and since the balance sheet date.
A 5-year plan has been prepared by the directors which include financial and cashflow forecasts. Key assumptions included within the cashflow forecasts include:
• Existing levels of facilities will continue to be made available to the company for the foreseeable future
• Identified loss making contracts have successfully exited
• Notwithstanding the point above, a level of growth in turnover and associated costs will be achieved annually
• Amounts due from related parties will not be recovered for the foreseeable future
The cashflow forecasts prepared indicate the company will be able to continue to operate within its current level of facilities available. However, the forecasts do show breaches in covenant compliance .
The company is exposed to movements in metal prices, and as a result the level of growth forecast may be substantially different to that achieved. Applying sensitivity analysis to the forecasts for a realistic potential downturn in trade would indicate that the company would be reliant on securing additional funding beyond the facilities currently available to them.
The directors are currently in discussion with the bank to re-negotiate the existing facilities. Whilst the directors are pleased with the interactions they have had with the bank, at the date of approval of these financial statements no agreement has been reached.
In the event that the bank is unwilling to provide additional facilities or call in facilities due to covenant breaches, the directors would implement other plans to ensure liabilities are serviced. These plans include the sale of a certain strategic asset of the company which would not impact the day-to-day trade of the business. However, the value of the strategic asset may not be sufficient to repay all facilities which in turn may impact the going concern status of the company.
The ongoing refinancing together with the historical and forecasted breaches in covenants and sensitivity analysis performed on the cashflow forecasts indicate that a material uncertainty exists which may cast significant doubt on the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that would result if the Company were unable to continue as a going concern.

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Freehold land | No depreciation
Freehold buildings | Over 50 years
Plant and machinery | 15% straight line basis
Fixtures and fittings | 20% straight line basis
Motor vehicles | 20% straight line basis

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

Financial instruments

Classification
The company holds the following financial instruments:
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts within the company.
The company recognises revenue from the sale of scrap metal on dispatch of goods over the weighbridge, where it is considered that the amount of revenue can be reliably measured, and it is probable that future economic benefits will flow to the entity.

3 | Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Sale of goods | 24,922,840 | 23,502,958

4 | Other operating income

The analysis of the company's other operating income for the year is as follows:

| 2025 £ | 2024 £
Miscellaneous other operating income | - | 100

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

5 | Operating (loss)/profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 428,084 | 494,178
Foreign exchange losses | 25,105 | -
(Profit)/loss on disposal of property, plant and equipment | (397,500) | 101,802

6 | Exceptional expense

Included in exceptional expenses is a provision against the Directors loan account balance of £1,083,026.

7 | Other interest receivable and similar income

| 2025 £ | 2024 £
Other finance income | 24,752 | 23,596

8 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 173,099 | 176,900

9 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 44,000 | 39,000

10 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 41,349 | 58,572
Interest on obligations under finance leases and hire purchase contracts | 74,833 | 113,524
Interest expense on other finance liabilities | 6,616 | -
| 122,798 | 172,096

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

11 | Taxation

Tax charged/(credited) in the profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 88,562 | 83,177
Deferred taxation |  |
Arising from origination and reversal of timing differences | (107,021) | (52,427)
Tax (receipt)/expense in the income statement | (18,459) | 30,750

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Loss before tax | (1,255,804) | (125,754)
Corporation tax at standard rate | (30,094) | (31,439)
Tax (decrease)/increase from effect of capital allowances and depreciation | (1,061) | 61,068
Tax increase from other short-term timing differences | 3,521 | 462
Effect of expense not deductible in determining taxable profit (tax loss) | 9,175 | 659
Total tax (credit)/charge | (18,459) | 30,750

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

12 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 1,156,744 | 1,216,010
Social security costs | 128,059 | 131,932
Pension costs, defined contribution scheme | 14,084 | 13,644
| 1,298,887 | 1,361,586

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Administration and support | 5 | 6
Production | 23 | 23
| 28 | 29

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

13 | Tangible assets

| Freehold land and buildings £ | Plant and machinery £ | Fixtures and fittings £ | Motor vehicles £ | Total £
Cost or valuation
At 1 May 2024 | 2,149,019 | 4,394,192 | 33,881 | 67,721 | 6,644,813
Additions | 14,000 | - | - | - | 14,000
Disposals | - | (729,714) | - | - | (729,714)
At 30 April 2025 | 2,163,019 | 3,664,478 | 33,881 | 67,721 | 5,929,099
Depreciation
At 1 May 2024 | 104,240 | 2,506,590 | 29,235 | 39,178 | 2,679,243
Charge for the year | 7,220 | 407,352 | 3,684 | 9,828 | 428,084
Eliminated on disposal | - | (729,714) | - | - | (729,714)
At 30 April 2025 | 111,460 | 2,184,228 | 32,919 | 49,006 | 2,377,613
Carrying amount
At 30 April 2025 | 2,051,559 | 1,480,250 | 962 | 18,715 | 3,551,486
At 30 April 2024 | 2,044,779 | 1,887,602 | 4,646 | 28,543 | 3,965,570

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Plant and machinery | 1,401,257 | 1,759,685
Motor Vehicles | 17,999 | 26,999
| 1,419,256 | 1,786,684

14 | Investments held as fixed assets

| 2025 £ | 2024 £
Investments in subsidiaries | 1 | 1

Subsidiaries | £
Cost or valuation
At 1 May 2024 | 1
Provision
Carrying amount
At 30 April 2025 | 1
At 30 April 2024 | 1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Registered office | Holding | Proportion of voting rights and shares held
|  |  | 2025 | 2024
Subsidiary undertakings
Walter Shaw & Son Limited | Towngate House 2-8 Parkstone Road, Poole, Dorset, BH15 2PW | Ordinary | 100% | 100%

Subsidiary undertakings
Walter Shaw & Son Limited The principal activity of Walter Shaw & Son Limited is dormant.

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

15 | Stocks

| 2025 £ | 2024 £
Raw materials and consumables | 676,183 | 919,143

16 | Debtors

| Note | 2025 £ | 2024 £
Trade debtors |  | 674,999 | 685,862
Amounts owed by related parties | 25 | - | 1,027,189
Other debtors |  | 1,588,196 | 650,112
Prepayments |  | 185 | 171
|  | 2,263,380 | 2,363,334

17 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash on hand | 745 | 942
Cash at bank | - | 189,854
Short-term deposits | 2 | 101,507
| 747 | 292,303
Bank overdrafts | (898,450) | (390,940)
Cash and cash equivalents in statement of cash flows | (897,703) | (98,637)

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

18 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 19 | 1,814,999 | 1,573,629
Trade creditors |  | 489,742 | 447,950
Social security and other taxes |  | 541,007 | 478,655
Other creditors |  | 30,090 | 19,786
Accruals |  | 181,143 | 58,202
Corporation tax | 11 | 217,956 | 66,779
|  | 3,274,937 | 2,645,001
Due after one year |  |  |
Loans and borrowings | 19 | 482,175 | 804,799

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

19 | Loans and borrowings

Non-current loans and borrowings

| 2025 £ | 2024 £
Finance lease liabilities | 482,175 | 804,799

Current loans and borrowings

| 2025 £ | 2024 £
Bank borrowings | 595,248 | 823,252
Bank overdrafts | 898,450 | 390,940
Finance lease liabilities | 321,301 | 359,437
| 1,814,999 | 1,573,629

Secured borrowings
Bank borrowings due under one year of £1,493,698 (2024: £1,214,192) and due after one year of £nil (2024: £nil) are secured by a fixed charge on land and buildings. Finance lease liabilities due under one year of £321,301 (2024: £359,437) and due after one year of £482,175 (2024: £804,799) are secured by fixed charges over the plant and machinery to which they relate.

Some of the company's loan agreements are subjected to covenant clauses, whereby the company is required to meet certain key financial ratios. The company did not fulfil the following financial covenant:
EBITDA after dividends at least 200% of the capital repayments plus interest payable for the period covered by the accounts.
Due to this breach of the covenant clause, the bank is contractually entitled to request for immediate repayment of the outstanding loans 1, 2, 3, 4 and 5 amounting to £595,248 (2024: £823,252). All bank loans have therefore been disclosed as falling due in less than one year.
The bank had not requested early repayment of the loan as of the date when these financial statements were approved by the Board of Directors.

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

20 | Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 321,303 | 359,437
Later than one year and not later than five years | 482,175 | 804,799
| 803,478 | 1,164,236

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 175,744 | 176,327
Later than one year and not later than five years | 280,682 | 331,809
Later than five years | 9,360 | 18,720
| 465,786 | 526,856

21 | Deferred tax and other provisions

| Deferred tax £
At 1 May 2024 | 544,388
Additional provisions | (107,021)
At 30 April 2025 | 437,367

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

22 | Reserves

Called up share capital:

Ordinary shares issued, measured at par.

Capital redemption reserve:

Amounts of ordinary shares, at par, bought back from the shareholders by the company.

Profit and loss account:

Accumulated profits/ losses less dividend distributions to shareholders.

23 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary of £1 each | 627 | 627 | 627 | 627

24 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £14,084 (2024 - £13,644).

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

25 | Related party transactions

Key management compensation

| 2025 £ | 2024 £
Salaries and other short term employee benefits | 327,299 | 350,300

Transactions with directors

2025 | At 1 May 2024 £ | Advances to director £ | At 30 April 2025 £
Director 1
Interest is charged on all amounts outstanding at a rate of 2.25% per annum. | (1,027,189) | (41,290) | (1,068,479)

2024 | At 1 May 2023 £ | Advances to director £ | At 30 April 2024 £
Director 1
Interest is charged on all amounts outstanding at a rate of 2.25% per annum. | (963,731) | (63,458) | (1,027,189)

A provision has been made against the above Director's loan account during the year ended 30 April 2025. This has been treated as an exceptional item.

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2025

26 | Analysis of changes in net debt

| At 1 May 2024 £ | Financing cash flows £ | At 30 April 2025 £
Cash and cash equivalents |  |  |
Cash | 292,303 | (291,556) | 747
Overdrafts | (390,940) | (507,510) | (898,450)
| (98,637) | (799,066) | (897,703)
Borrowings |  |  |
Short term borrowings | (823,252) | 228,004 | (595,248)
Lease liabilities | (1,164,236) | 360,760 | (803,476)
| (1,987,488) | 588,764 | (1,398,724)
| (2,086,125) | (210,302) | (2,296,427)