REGISTERED NUMBER: 03487296 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

for

Amerex Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Energy and Carbon Report forming part of the Report of the Directors

7

Report of the Independent Auditors

8

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

N J Lawson

C Thoburn

R Newman

R Halman

SECRETARY:

R Newman

REGISTERED OFFICE:

19 Trinity Square

Llandudno

Conwy

LL30 2RD

REGISTERED NUMBER:

03487296 (England and Wales)

AUDITORS:

Bennett Brooks & Co Limited

Chartered Accountants

& Statutory Auditors

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

BANKERS:

Lloyds Bank

1st Floor

102 Grey Street

Newcastle Upon Tyne

NE1 6AG

SOLICITORS:

Iain Nicholson & Co

5 West Road

Ponteland

Newcastle Upon Tyne

NE20 9ST

The directors present their Strategic Report for the Company period ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the Company in the period under review was that of steel stockholders and distributors.

REVIEW OF BUSINESS

The board of directors are very satisfied with the performance of our company for the financial period.

Despite ongoing challenges in UK manufacturing demand, we have successfully maintained turnover and tonnage throughput at levels comparable to the previous period. The prior period was 9 months to 31 December 2024 so is not directly comparable.

Our continued emphasis on operational efficiency has kept our cost base low, and we remain one of the most competitive stockholders in the UK in terms of staff-to-turnover ratio.

Net profit for the year was adversely impacted by the unexpected changes to steel import safeguard measures implemented in July 2025, which significantly restricted tariff-free quotas for imports from key sources including from South Korea and Vietnam with limited notice and no standard transition period. This prevented the usual adjustments to sourcing strategies and increased costs on affected volumes.

Nevertheless, we have stayed firmly profitable and continued to perform well in the market, demonstrating strong resilience and effective management in a difficult trading environment.

We remain confident in our low-cost model and strategic positioning as we navigate ongoing sector headwinds.

The company's net assets increased over the prior year and at 31 December 2025 were £10,739,340 (2024: £10,701,203).

FUTURE DEVELOPMENTS

2026 has started very favourably due to the sharp increase in steel prices. We have continued to reduce costs and diversify our product range to increase our margin.

KEY PERFORMANCE INDICATORS (KPIs)

Gross margin (which is considered to be a key performance indicator) increased to 7.25% from 6.52%. Inflationary pressures on administrative expenses have stabilised with a marginal decrease in expenditure on a pro-rata basis, with the prior period being 9 months. As a percentage of sales, administrative expenditure represents 7.31% (2024: 6.72%).

We use a range of non-financial key performance indicators for the business.

The main non-financial KPI used is the reject rate from our customers, as any reject can be costly both in terms of lost production and transport charges for replacements. We try and keep the reject rate below 0.1% for all material.

The second priority for us is Employee retention and fortunately we are very strong on that regard, we try to retain good staff for the following reasons:

- Long-time employees know how things work and how to get things done, which leads to better process efficiency.

- Long-time employees are usually more efficient and make fewer mistakes than newer ones, who typically need time to get used to the company and its work processes, leading to higher employee productivity.

- Retaining employees helps maintain the business's efficiency and productivity.

- The recruitment process can cost businesses a lot of money, including the resources it takes to recruit, screen, interview and train new team members, therefore employee retention can lead to recruitment cost efficiency.

PRINCIPAL RISKS AND UNCERTAINTIES

The steel market is always operationally geared at a high level, and any change in the contribution generated from sales will affect the Company's performance. Demand for our products is also linked with the ongoing economy, and although the UK has avoided an imminent recession, any further uncertainty may affect demand. However, due to the profit generated over the last two financial periods, we see the above risk as minimal and we continue to operate with no long term debt. We do not see this changing for this financial year.

A good measure of our focus will be again on maintaining our turnover and margins, whilst also maintaining and where possible reducing our overheads. We will do this by monitoring revenues and costs whilst maintaining strong customer and supplier relations and delivering a world class service on which we pride ourselves.

The principal risks are:

Economic price

The steel industry is sensitive to changes such as the price of raw materials and customer demand. Any deterioration in economic conditions could decrease demand which could have a material effect on our business, revenues or profits. Continuing to work closely with suppliers and customers along with regular communication is essential through the demand changes and the movement of the market place. We do not expect a significant impact on the business from the changes with the US trade tariffs. Since the year end we have seen a sharp increase in the steel price, which has sharply increased our margin. This is mainly down to government policy of reduced quotas and increased tariffs for imported material, as well as the impending CBAM legislation being implemented as from 1 January 2027. The increase in energy costs due to the Iran war has also had a positive impact on the price.

Laws and regulations

Our business is subject to GDPR, planning, environmental and health and safety laws/regulations. Our obligations to comply with legislation can result in the business incurring additional costs. The rigorous routine of control and review of all the site was continued throughout the year.

Financial instruments

The Company's principal financial instruments comprise cash at bank, short term deposits and an invoice financing facility. The main purpose of these financial instruments is to raise finance for the Company's operations. The Company has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations.

It is, and has been throughout the period under review, the Company's policy that no trading in financial instruments shall be undertaken. The main risks arising from the company's financial instruments are liquidity risk, interest rate risk, cashflow risk, credit risk and foreign currency risk.

Liquidity risk

There is always a risk that an individual or a business cannot meet its short-term debt obligations to the Company. To mitigate this risk, detailed vetting procedures are undertaken as noted within the Credit risk section below.

Credit risk

The Company trades with only recognised, creditworthy third parties. It is Company policy that all customers who wish to trade on credit terms are subject to vetting procedures. Balances are monitored on an ongoing basis with the result that the Company's exposure to bad debts is not significant. Customer debts are also underwritten by a bad debt insurance policy to mitigate any risks.

Interest rate risk

Interest rate risk is the danger that a value of a fixed income investment will suffer due to a change in interest rates. To mitigate this risk, regular meetings are held with the Company bankers to ensure that the best interest rate available is earned on all fixed investment income amounts.

Cashflow risk

Cashflow risk is the risk that sufficient levels of cash do not flow into the business to allow working capital requirements to be met in a timely manner. The management of the timing of cash inflows and cash outflows is achieved with the close involvement of management with customer and supplier relationships. Management also review financial information on a regular basis to determine whether further measures are needed to ensure sufficient cash inflows to the business.

Foreign currency risk

The Company can be exposed in its trading operations to the risk of changes in foreign currency exchange rates. The main foreign currency in which the Company operates is the Euro. The Company monitors movements in the exchange rates.

SECTION 172(1) STATEMENT

Likely consequences of any decision in the long term

We pride ourselves in our engagement with our employees, suppliers, customers and the community as a whole. This engagement has, and will have in the future years, a positive effect on the business moving forward and will only continue to strengthen our position.

Employee involvement

Our working culture has continued with openly communicating, listening carefully and fully understanding the teams' requirements and ideas. Employee suggestions are encouraged to be made directly to their Manager and Senior Managers and this engagement has been appreciated in continuing improvements to the site.

Company's business relationship with Suppliers and Customers

The Company is in regular communication with both Suppliers and Customers to understand changing requirements and developments so the relationships are maintained and strengthened. Customer service levels are measured as part of our continuous improvement programme.

Impact of the Company's operations on the community and the environment

As can be seen from the carbon emissions report, carbon reduction is a key strategy of the Company. There is a continual improvement policy for carbon reduction having already installed solar panels and LED lights across the factory. The Company employs a team from the local area which is supporting the local community, and the lower travel therefore reduced the impact on the environment.

Standards of business conduct

The Company drives to maintain a reputation of high standards of business conduct by working with Customers and Suppliers with regular audits in addition to the various industry standards. The benefit of a rigorous routine of high standards has been continued throughout the period.

Members of the Company

In addition to the formal board meetings the Directors and Shareholders discuss their industry knowledge through regular communication on pricing and production as well as investment decisions.

GOING CONCERN

Due to the significant profits generated in previous years, the Company has significant cash reserves which negates the need for any long term debt.

We continue to review potential exposures on our balance sheet such as the ability of our customers to make payments but our strong balance sheet has reduced our sensitivity to the impact of any external risks to our business.

The Company is financed principally through an invoice discounting facility. Due to the uncertainties to both the general sector and the current state of world events, we have considered the impact of the next 12 months trading activity on our cash reserves and available facilities. This shows that over the following 12 months from the date of signature of these financial statements there will be adequate cash headroom and available facilities in order for the Company to meet its liabilities as they fall due. On that basis, the Directors have prepared the financial statements on a going concern basis.

ON BEHALF OF THE BOARD:

R Halman - Director

30 April 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

DIVIDENDS

No dividends were declared for the period ended 31 December 2025 (31 December 2024: NIL)

The directors recommend that no final dividend be paid.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

N J Lawson

C Thoburn

R Newman

R Halman

Other changes in directors holding office are as follows:

S W S Maxwell - resigned 31 July 2025

POLITICAL DONATIONS AND EXPENDITURE

No political donations were made in the year. All donations were made to charitable organisations.

Charitable donations in excess of £2,000 were as follows:

Alan Shearer Foundation £9,000

DISCLOSURE IN THE STRATEGIC REPORT

The Company has chosen in accordance with section 414(c) of the Companies Act 2006 (Strategic and Directors Report) Regulations 2013 to set out in the Company's Strategic Report information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008.

Review of business, future developments and principal risks and uncertainties are disclosed in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Strategic Report, Directors' 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 prepared the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (FRS 102). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

-

select suitable accounting policies and then apply them consistently;

-

make judgements and accounting estimates that are reasonable and prudent;

-

state whether applicable UK Accounting Standards, including FRS 102, 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Bennett Brooks & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R Halman - Director

30 April 2026

The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (the 2018 Regulations) implement the government's policy on Streamlined Energy and Carbon Reporting (SECR). The regulation came into effect on 1 April 2019 and the Company is required to report the emissions and energy consumption for this period to 31 December 2025 to coincide with the financial reporting period.

Carbon Reduction is an integral part of the Company strategy both now and going forward. We are implementing a continuous improvement policy for Carbon Reduction. The first steps that we have made are installing solar panels on our flagship site in Newcastle. The 151kw of solar is projected to reduce our annual energy demand, from the grid, by a third.

In addition to our Solar project in 2022 we changed most of our company cars to fully electric, and to service this we have installed 10 charging points across the site. We have also changed all lighting to LED energy saving lights across the factory which are activated with motion sensors.

We are also in discussions with our steel mills about their carbon reduction plans and hope to start purchasing steel that is fossil free within the next two years.

In addition to all the above, we are collaborating with a company who are assisting us to reach the goal of carbon net zero.

The following figures show the consumption and associated emissions for the reporting year for our operations, with figures from the previous year for comparison.

Energy consumption

Year to 31 December 2025

Period ended 31 December 2024

Electricity

kWh

kWh

Total electricity purchased

188,819

164,801

Carbon emissions

Tonnes

Tonnes

Total Co2 emissions

38.48

33.58

Gas

kWh

kWh

Total gas purchased

52,442

39,143

Carbon emissions

Tonnes

Tonnes

Total Co2 emissions

9.60

7.16

The solar arrays installed are saving approximately 2 tonnes of Co2 emissions from the smaller array and approximately 30 tonnes of Co2 emissions from the larger array.

The average Co2 emissions per employee for the period was 1.23 Tonnes (2024: 0.95 Tonnes)

Opinion

We have audited the financial statements of Amerex Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

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 the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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 five, 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 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.

Auditors' 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 a Report of the Auditors 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.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation and regulations which govern the preparation of financial statements, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue, through management bias in manipulation of accounting estimates or accounting for significant transactions outside the normal course of business. Audit procedures performed included:

-

Enquiry of management around actual and potential litigation and claims and instances of non-compliance with laws and regulations;

-

Auditing the risk of management override of controls, through testing journal entries and other adjustments for appropriateness, testing accounting estimates (because of the risk of management bias), and evaluating the business rationale of significant transactions outside the normal course of business;

-

Reviewing financial statement disclosures and agreeing to supporting documentation to assess compliance with applicable laws and regulations.

There are inherent limitations in the audit procedures described above. We are 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.

Also, 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 concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

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 a Report of the Auditors 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.

Matthew Bailey BSc (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Bennett Brooks & Co Limited

Chartered Accountants

& Statutory Auditors

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

30 April 2026

TURNOVER

3

44,872,305

35,093,609

Cost of sales

(41,620,768

)

(32,806,180

)

GROSS PROFIT

3,251,537

2,287,429

Administrative expenses

(3,278,923

)

(2,357,953

)

(27,386

)

(70,524

)

Other operating income

14,290

25,007

OPERATING LOSS

5

(13,096

)

(45,517

)

Interest receivable and similar income

6

171,534

182,145

158,438

136,628

Interest payable and similar expenses

7

(83,394

)

(18,948

)

PROFIT BEFORE TAXATION

75,044

117,680

Tax on profit

8

(36,907

)

(38,304

)

PROFIT FOR THE FINANCIAL YEAR

38,137

79,376

PROFIT FOR THE YEAR

38,137

79,376

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

38,137

79,376

FIXED ASSETS

Tangible assets

9

1,146,759

908,244

CURRENT ASSETS

Stocks

10

3,465,024

4,386,458

Debtors

11

10,619,991

11,290,662

Cash at bank and in hand

4,661,022

5,116,214

18,746,037

20,793,334

CREDITORS

Amounts falling due within one year

12

(8,987,740

)

(10,846,935

)

NET CURRENT ASSETS

9,758,297

9,946,399

TOTAL ASSETS LESS CURRENT LIABILITIES

10,905,056

10,854,643

PROVISIONS FOR LIABILITIES

15

(165,716

)

(153,440

)

NET ASSETS

10,739,340

10,701,203

CAPITAL AND RESERVES

Called up share capital

16

1,000

1,000

Retained earnings

10,738,340

10,700,203

SHAREHOLDERS' FUNDS

10,739,340

10,701,203

The financial statements were approved by the Board of Directors and authorised for issue on 30 April 2026 and were signed on its behalf by:

R Halman - Director

R Newman - Director

N J Lawson - Director

C Thoburn - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2024

1,000

10,620,827

10,621,827

Changes in equity

Total comprehensive income

-

79,376

79,376

Balance at 31 December 2024

1,000

10,700,203

10,701,203

Changes in equity

Total comprehensive income

-

38,137

38,137

Balance at 31 December 2025

1,000

10,738,340

10,739,340

Cash flows from operating activities

Cash generated from operations

1

(598,078

)

1,520,209

Interest paid

(83,394

)

(18,948

)

Tax received/(paid)

244,536

(160,001

)

Net cash from operating activities

(436,936

)

1,341,260

Cash flows from investing activities

Purchase of tangible fixed assets

(406,131

)

(243,609

)

Sale of tangible fixed assets

-

22,850

Interest received

171,534

182,145

Net cash from investing activities

(234,597

)

(38,614

)

(Decrease)/increase in cash and cash equivalents

(671,533

)

1,302,646

Cash and cash equivalents at beginning of year

2

4,317,528

3,014,882

Cash and cash equivalents at end of year

2

3,645,995

4,317,528

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.4.24

Year Ended

to

31.12.25

31.12.24

£

£

Profit before taxation

75,044

117,680

Depreciation charges

167,616

123,682

Profit on disposal of fixed assets

-

(5,079

)

Finance costs

83,394

18,948

Finance income

(171,534

)

(182,145

)

154,520

73,086

Decrease/(increase) in stocks

921,434

(665,984

)

Decrease in trade and other debtors

401,504

1,910,195

(Decrease)/increase in trade and other creditors

(2,075,536

)

202,912

Cash generated from operations

(598,078

)

1,520,209

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

4,661,022

5,116,214

Bank overdrafts

(1,015,027

)

(798,686

)

3,645,995

4,317,528

Period ended 31 December 2024

31.12.24

1.4.24

£

£

Cash and cash equivalents

5,116,214

3,742,076

Bank overdrafts

(798,686

)

(727,194

)

4,317,528

3,014,882

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

5,116,214

(455,192

)

4,661,022

Bank overdrafts

(798,686

)

(216,341

)

(1,015,027

)

4,317,528

(671,533

)

3,645,995

Total

4,317,528

(671,533

)

3,645,995

1.	STATUTORY INFORMATION

Amerex Limited is a private company, limited by shares, incorporated and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.The principal activity can be found in the Strategic Report.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" ("FRS102") and the Companies Act 2006.

The financial statements have been prepared on a going concern basis under the historical cost convention in accordance with the Companies Act 2006. The financial statements are presented in Sterling.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted principles requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Some of these estimates and judgements are inherently uncertain and subject to change. The impact of any change in accounting estimates is reflected in the period in which the estimate is revised, if the revision only affects the period, or in the period of the revision and future periods if the revision affects both current and future periods. In this respect the directors believe that the critical accounting policies where judgements or estimations are necessarily applied are as follows.

Critical judgements in applying the Company's accounting policies

There were no critical judgements made in applying the Company's accounting policies.

Impairment of debtors

Management perform ongoing reviews of the recoverability of debtor balances. An allowance for doubtful debts is maintained for potential credit losses based on management's assessment of the expected collectability of amounts receivable. The allowance for bad debts is reviewed periodically to assess the adequacy of the allowance.

Provision for obsolete and slow moving stocks

The Company reviews its stocks to assess loss on account of obsolescence on a regular basis. In determining whether provision for obsolescence should be recorded in the profit and loss, the company makes judgements as to whether there is any observable date indicating that there is any future saleability of the product and the estimated net realisable value for such product. Accordingly, provision for impairment is made where the net realisable value is less than the cost based on best estimates by the management. The provision for obsolescence of stock is based on the ageing and historical sales pattern.

Turnover

Turnover is the amount of revenue derived from the provision of goods after the deduction of discounts, rebates, value added tax and other sales taxes. Turnover is measured at the fair value of the consideration received or receivable and is recognised at the point in which goods are dispatched to a customer.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

All fixed assets are stated at cost less accumulated depreciation.

Depreciation on all assets is calculated to allocate the depreciable amount to their residual values over their estimated useful lives as follows:

Long leasehold - 2% on cost

Plant and machinery - 15% on reducing balance

Fixtures and fittings - 15% on reducing balance

Motor vehicles - 25% on reducing balance

Computer equipment - 33% on reducing balance

Stocks

Stock is recognised as an expense in the period in which the related revenue is recognised.

Stocks are valued at the lower of cost and net realisable value on a First in First Out (FIFO) basis, after making allowance for obsolete and slow moving items.

Financial instruments

The company has chosen to adopt Section 11 of FRS 102 in respect of financial instruments.

Financial assets

Basic financial assets, including trade debtors, cash and bank balances and amounts due from connected undertakings are initially recognised at transaction price and subsequently carried at amortised cost using the effective interest method. At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment, with any impairment recognised in profit or loss.

Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, loans from related undertakings are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The Company meets its day-to-day working capital requirements through its bank facilities. As noted in the Strategic Report, the directors have considered the future performance and confirm that the company should be able to operate within the level of its facilities. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Share capital

Ordinary shares are classed as equity.

Distributions to equity holders

Dividends are recognised as a liability in the financial statements in the period in which the dividends are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, cash held with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Interest receivable/payable

Interest income and expense are recognised in the financial statements on an accrual basis using the effective interest rate (EIR) method. Interest income is recognised when it is probable that the economic benefits will flow to the entity and the amount can be reliably measured. Interest expenses on financial liabilities, are recorded as expenses in the period they accrue.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period

1.4.24

Year Ended

to

31.12.25

31.12.24

£

£

United Kingdom and Ireland

44,872,305

35,093,609

44,872,305

35,093,609

All turnover relates to one segment which is the sale of steel in the UK and Ireland.

4.	EMPLOYEES AND DIRECTORS

Period

1.4.24

Year Ended

to

31.12.25

31.12.24

£

£

Wages and salaries

1,607,744

1,165,971

Social security costs

191,490

125,747

Other pension costs

25,452

17,208

1,824,686

1,308,926

The average number of employees during the year was as follows:

Period

1.4.24

Year Ended

to

31.12.25

31.12.24

Directors

4

5

Admin

2

2

Warehouse

27

30

Sales

6

6

39

43