The directors present their strategic report of the company and the group for the year ended 31 October 2025.

During the year ended 31 October 2025 the group generated sales of £65.4m which were 3.7% higher than the £63.0m achieved in the previous financial year. Profit before taxation was £6.5m compared to £6.3m in the previous financial year. The increase in turnover and profitability was largely driven by volume increases together with production efficiencies during the year.

The group monitors its financial performance through key performance indicators, which are as follows:

2025 2024

Turnover (£) 65,374,290 63,018,761

Operating Profit (£) 7,197,905 7,328,143

Profit before taxation (£) 6,467,541 6,263,264

Gross profit (%) 15.46 15.86

Net profit (%) 7.69 7.54

Return on capital employed (%) 23.01 27.05

Current ratio 2.27 2.10

Acid test ratio 1.17 1.26

Cash ratio 0.34 0.60

Debt to equity ratio 0.69 0.80

Interest coverage 8.17 6.36

The directors are pleased with the group’s financial performance during the year despite the significant issues and uncertainties around the economy and market conditions. The group is well placed to withstand any future adverse events.

The group has a comprehensive system of risk management to enable the board to identify, evaluate and manage potential risks and uncertainties that could have a material impact on the company's performance.

The main risks under the period of review are summarised below:

Commodity price risk

The group is exposed to commodity price volatility. This is managed by regular monitoring of selling and purchase prices and where appropriate utilisation of appropriate hedging instruments.

Credit risk

The group trades only with recognised and creditworthy parties. It is the group's policy that all customers who wish to trade on credit terms are subject to credit vetting procedures and that payment terms are rigorously enforced. In addition, the company has in place trade credit insurance policies which offer additional protection.

Currency risk

The group is exposed to transaction foreign exchange risk. Transaction risk is managed by the use of forward currency contracts.

SECTION 172(2-1) STATEMENT

The board acknowledges its responsibility and consider they have acted in good faith, and in a way most likely to promote the success of the company for the benefit of its members and stakeholders. In doing this, section 172(1) requires directors to have regard for the following six factors;

Likely consequences of any decisions in the long term.

The group has an annual budget and a three year plan which is reviewed regularly to benchmark performance and achievements against it’s long term strategy. The board then considers the outlook for the entire group and the opportunities to create, deliver and realise value for its members and stakeholders.

Interests of the company’s employees.

The group recognises that employee engagement, development and satisfaction are key to building a successful business. To achieve this, the group has adopted several policies aimed at recruiting, training and rewarding employees.

Need to foster the group’s business relationships with suppliers, customers and others.

The group recognises the need to maintain a supply chain that adheres to and is aligned with our environmental, social and commercial objectives and policies. The group is committed to carrying out dealings with customers, suppliers and stakeholders in a fair, open and honest manner. It is also committed to complying with all legislative and regulatory requirements that are relevant to its business activities in all jurisdictions.

Impact of the group’s operations on the community and the environment.

The group takes its responsibility within the community and wider environment seriously. The group takes a proactive approach to health and safety, and the environment. It is committed to the highest possible standards along with the minimisation of adverse environmental impacts. The group publishes its Greenhouse Gas GHG) emissions in the group strategic report.

Reputation for a high standard of business conduct.

The group is committed to maintaining high standards of corporate governance and annually undertakes a self-assessment performance review.

Need to act fairly between members of the company.

An important role of the board is to represent and promote the interests of the members as well as being accountable to them for the performance and activities of the group. This is done through regular company board meetings which are held throughout the year along with participation from other senior employees.

ENVIRONMENTAL POLICY

The board acknowledges that environmental protection is one of its business responsibilities. The group aims to minimise the environmental impact of its operations by complying with or exceeding its obligations under all relevant environmental legislation, considering full compliance to be the minimum acceptable level of performance. The group routinely assesses the environmental impact of all its operations and aims to reduce (and eliminate wherever practical) waste, the consumption of resources and pollution of the environment. The group is committed to the conservation of energy, water and natural resources through increased efficiency and the introduction of new technologies. In February 2025 the group successfully retained its Environmental Management System ISO 14001 award. The group commits sufficient staff and resources to ensure that these objectives are met and continuously monitors performance. All subsequent independent system audits have been satisfactory.

In November 2021 the group began recording energy and fuel usage across all areas of the business based on both metering and supplier invoices supporting effective measurement, targeting and reporting our Greenhouse Gas (GHG) emissions. The methodology used to define the scope and calculate CO2 emissions was the GHG Protocol Corporate Accounting and Reporting Standard. Under GHG protocols we report Scope 1 and 2 emissions. Scope 1 being direct emissions that result from activities within control of the group and Scope 2 which result from indirect emissions which the group have no direct control of but accept by using the energy we are indirectly responsible for the release of CO2. The conversion factors used are those published by the UK government (Department for Energy Security and Net Zero).

The overall energy consumption of the group was calculated to be:

Energy usage (kWh)         2025         2024        Change      % change

Electricity             412,045      380,442      31,603 8.3%

Gas                 24,405     30,197         (5,792) (19.2%)

Total              436,450 410,639     25,811 6.3%

Energy usage (kg CO2e)

Gas Oil              434,540     516,253      (81,713) (15.8%)

Transport diesel          321,220     305,301     15,919 5.2%

Total              755,760     821,554      (65,794)     (8.0%)

The overall CO2 emissions based on the energy consumption for the group was calculated to be 846 tonnes for year end to October 2025, in accordance with the reporting standard Scope 1 and 2 GHG emissions are:

CO2e (tonnes)          2025        2024     Change        % change

Scope 1 (direct emissions)     761         828 (67) (8.1%)

Scope 2 (indirect emissions) 85          79 6 7.6%

Total 846     906 (60) (6.6%)

The following expresses our annual emissions in relation to quantifiable factors associated with our activities.

Average emissions per employee 2025 2024 Change % change

Emissions reported per employee 13 15 (2) (13.3 %)

The group has established metrics and targets for reducing emissions over the next financial year.

SOCIAL POLICY

The board acknowledges that its people are its most important resource and consequently strives to adopt human resource policies, practices and procedures that provide its employees with a good working environment, equitable compensation and benefits as well as the opportunity to be recognised on the basis of merit and develop their career in line with their ability and potential.

The group through sponsorship, charities and clubs donated £24,289 during the year ended 31 October 2025 compared to £14,727 in the previous financial year. The group supports a local charity which offers support to adults who are homeless or at risk of becoming homeless and where practical the endeavours to offer suitable employment opportunities. For eight years, many employees have given their time to work alongside the charity at busy times of the year. In addition, the group offers support to a local food bank through both direct monthly donations and one-off financial contribution. During the year the group donated £7,000 compared to £6,620 in the previous financial year.

HEALTH AND SAFETY

The board acknowledges that safeguarding the health and safety of employees is integral to its business success and aims to create a working environment that assures this. To fulfil these commitments the group recognises that it must have a risk informed and engaged workforce that fully accepts the health and safety responsibilities of their role within the business, in turn the business is committed to providing leadership and all necessary training. In February 2025 the group in recognition of our Health and Safety Management System was re-awarded ISO 45001.

The group commits sufficient staff and resources to ensure that these objectives are met and continuously monitors performance. All subsequent independent system audits have been satisfactory.

GOVERNANCE

The board is committed to maintaining high standards of corporate governance and in February 2025 the group again retained ISO 9001 which recognises our Quality Management System. The group commits sufficient staff and resources to ensure that these objectives are met and continuously monitors performance. All subsequent independent system audits have been satisfactory.

In 2025 the Group introduced a series of new policies and procedures which sought to improve our selection and expected standards from our suppliers and subcontractors, including; Subcontractor Vetting Procedures, Supplier Code of Conduct, Supplier Sustainability Standards.

The group is a signatory of The Prompt Payment Code (PPC) which set standards for payment practices and is administered by the Office of the Small Business Commissioner (OSBC) on behalf of BEIS.

CUSTOMERS

During the year, with the aim to better service customers in Ireland, and potentially in Europe, a wholly owned subsidiary called Hatfield Industrial Commodities Limited was formed and registered in Ireland.

SUSTAINABILITY

The board acknowledges that sustainability is one of its business responsibilities. In 2025, the group had its sustainability management system reassessed by EcoVadis. EcoVadis operate an evidence-based platform which focuses on four themes, Environment, Labour & Human Rights, Ethics and Sustainable Procurement, which provide a sustainability rating and an assessment of ESG performance. The outcome of the assessment saw the group retaining its Silver medal status (despite tightening of thresholds and standards) achieving a score of 71% and being ranked in the top 15% of scheme participants. We remain committed to our ESG goals and seek further improvement for 2026.

SUBSEQUENT EVENTS AND FUTURE DEVELOPMENTS

There have been no events to the date of this report which have materially affected the group.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 October 2025.

The principal activity of the company and group continued to be that of processing and distribution of metals, minerals and solid fuels, recycling of plasterboard and waste brokerage.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £790,651. The directors do not recommend payment of a further dividend.

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

Sumer Auditco Limited were appointed as auditor to the company following BHP LLP becoming part of the Sumer Group on 31 December 2025, which required a change in audit firm to comply with applicable regulatory requirements. 

In accordance with section 487(2) of the Companies Act 2006, Sumer Auditco Limited are deemed to be reappointed annually.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable 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 group and parent company will continue in business.

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We have audited the financial statements of Roy Hatfield (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

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 group's and parent 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

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

As explained more fully in the directors' responsibilities statement, 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 group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

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.

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

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

• we identified the laws and regulations applicable to the Group through discussions with directors and other management, and from our commercial knowledge and experience of the trade;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Group;

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

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

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

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

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

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

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

• tested journal entries to identify unusual transactions;

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

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.

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

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £389,862 (2024 - £83,749 profit).

Roy Hatfield (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Roy Hatfield Ltd, Fullerton Road, Rotherham, England, S60 1DH.

The group consists of Roy Hatfield (Holdings) Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

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

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

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

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

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

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

All financial statements are made up to 31 October 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

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

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

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

The directors have prepared cashflows and forecasts which cover a period of at least 12 months from the signing date of these financial statements. The forecasts show that the group can meet all of its obligations as they fall due in this period.

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the provision of services is recognised by reference to work performed. Revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

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

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

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

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

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

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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

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

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

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

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

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

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

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

The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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

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

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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

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

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

Tangible fixed assets are depreciated over their useful economic life. Calculation of the useful economic life of assets is considered a key area of judgement due to the value present in the accounts.

Stock is valued at the lower cost and net realisable value. New realisable value includes, where necessary, provisions for differences in quality and quantity of coal. Calculation of these provisions requires judgements to be made, which include stock loss trends and stock count differences.

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

Their aggregate remuneration comprised:

The number of directors to whom retirement benefits were accruing was 3 (2024: 4).

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

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

Details of the company's subsidiaries at 31 October 2025 are as follows:

During the year, Hatfield (Holdings) Limited sold 22.5% of their share holding in Hatfield Site Services Limited.

Amounts owed by group undertakings are interest free and repayable on demand.

Amounts owed to group undertakings are interest free and repayable on demand.

The bank loan is secured on the assets of the group Roy Hatfield (Holdings) Limited, including its subsidiaries. It is also secured with a charge over the cash deposit in Hatfield Energy Ltd. The loan is repayable on demand with interest being charged.

Hire purchase creditors are secured against the assets to which the relate to. The contracts are payable by monthly instalments over their individual periods, with the longest current contract set to be fully repaid by March 2028. Interest is charged on a monthly basis for each contract individually.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

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

There were no outstanding amounts due to the pension scheme at 31 October 2025 or 31 October 2024.

The shareholders are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All share classes rank pari passu with regard to the residual assets of the company.

Following the group restructure by the company in 2017, and transfer of certain assets to the parent company Roy Hatfield (Holdings) Limited, the company's share capital was reduced and the capital redemption reserve was increased.

The bank loan taken out for the group Roy Hatfield (Holdings) Limited and its subsidiaries has a balance of £12,000,000 (2024: £10,500,000).

The Company's bankers hold an Inter-company Guarantee between the following group companies: Roy Hatfield Limited, Roy Hatfield (Holdings) Limited, Hatfield Energy Limited, Hatfield Site Services Limited.

During the year, a total of key management personnel compensation of £613,634 (2024: £464,207) was paid.

The controlling parties are Mr G Hatfield and Mr M Hatfield.

Invoice discounting charges have been reclassified in both the current and prior year from interest payable and similar charges to turnover in order to present these costs more appropriately. In the opinion of management in substance these represent early payment discounts

This reclassification has no impact on profit before tax, total comprehensive income or net assets for either period.