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Registered number: 12363829
Northern Metal Recycling Ltd
Strategic Report, Director's Report and
Financial Statements
For The Year Ended 30 December 2024
Northern Metal Recycling Ltd
Contents
Contents

| Page
--- | ---
Company Information | 1
Strategic Report | 2—4
Director's Report | 5—6
Independent Auditor's Report | 7—10
Profit and Loss Account | 11
Statement of Comprehensive Income | 12
Balance Sheet | 13
Statement of Changes in Equity | 14
Statement of Cash Flows | 15
Notes to the Statement of Cash Flows | 16
Notes to the Financial Statements | 17—27

Page 1
Northern Metal Recycling Ltd
Company Information
For The Year Ended 30 December 2024
Company Information

Director | Mr Jordan Bell
Company Number | 12363829
Registered Office | Unit 11 Hackworth Industrial Park
| Shildon
| Durham
| DL4 1HF
Accountants | Kudos Accountants Ltd
| 15 Front Street
| Sherburn Hill
| Durham
| Co. Durham
| DH6 1PA
Auditors | King & King
| Chartered Accountants & Statutory Auditors
| 83-85 Baker Street
| London
| W1U 6AG

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Northern Metal Recycling Ltd
Strategic Report
For The Year Ended 30 December 2024
Strategic Report
The director presents his strategic report for the year ended 30 December 2024.
Principal Activity
The company’s principal activity is the industrial‑scale trading, processing and supply of scrap metal, serving customers in both domestic and international markets. Operations are conducted from the company’s sites in Shildon, County Durham and Blaydon, Tyne & Wear.
Review of the Business
The company delivered a strong performance during the year ended 31 December 2024, reflecting increased demand, higher sales volumes and improved operational efficiency.
Turnover increased to £30.8 million (2023: £25.3 million). Operating profit rose to £3.19 million (2023: £2.22 million), resulting in a profit after tax of £2.33 million (2023: £1.15 million).
The improvement in profitability was supported by stronger gross margins, effective cost control and continued investment in processing capacity. Administrative expenses increased in line with higher activity levels and planned expansion.
At 31 December 2024, the company had net assets of £6.59 million (2023: £4.48 million), reflecting retained profits for the year after dividend payments.

- Tangible fixed assets increased to £6.1 million (2023: £4.3 million) following significant investment in plant and machinery to enhance production capacity and efficiency.
- Net current assets improved to £2.08 million (2023: £0.97 million), demonstrating a strengthened working capital position.
- Cash at bank and in hand at year end amounted to £1.0 million (2023: £1.38 million).

The company remains appropriately financed with a balanced mix of internally generated funds and external borrowing. Total borrowings reduced during the year as a result of scheduled repayments.
Net cash generated from operating activities amounted to £2.87 million (2023: £0.94 million), enabling the company to fund capital expenditure of £3.53 million (2023 : £1.92 million), service debt obligations and pay dividends of £205,175 (2023 : £55,500).
The directors consider the company’s cash generation and liquidity position to be robust and sufficient to support ongoing operations and planned investment.
Key Performance Indicators
The directors monitor performance using the following key indicators:

- Revenue growth
- Operating profit and margin
- Net cash generated from operations
- Capital investment in tangible fixed assets

These measures are reviewed regularly to support financial and operational decision‑making.
Principal Risks and Uncertainties
The director has identified the following principal risks and uncertainties that could affect the company’s development, performance and financial position. These risks are reviewed on an ongoing basis and are managed through appropriate policies and procedures.
Commodity Price Volatility
The company operates in the scrap metal industry, which is subject to fluctuations in global commodity prices arising from changes in supply and demand, economic conditions and geopolitical factors. Movements in scrap prices may adversely affect margins, inventory values and cash flows, particularly where selling prices decline more rapidly than input costs. The directors seek to manage this exposure by maintaining short‑term pricing arrangements, closely monitoring market trends, actively managing stock levels and maintaining a diversified customer base across domestic and international markets.
Regulatory and Environmental Compliance
...CONTINUED
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Northern Metal Recycling Ltd
Strategic Report (continued)
For The Year Ended 30 December 2024
Principal Risks and Uncertainties - continued
The company’s activities are subject to environmental, health and safety, and waste management regulations. Changes in legislation or non‑compliance with regulatory requirements could result in financial penalties, operational restrictions, reputational damage or interruption to trading. The company mitigates this risk by maintaining appropriate permits and licences, implementing documented compliance procedures, providing ongoing staff training and reviewing regulatory obligations regularly, supported by external professional advice where necessary.
Operational Dependence on Plant and Machinery
The efficient operation of the business depends on the availability and performance of specialist plant and machinery. Equipment failure, unplanned downtime or delays in repair could disrupt production, increase operating costs and affect the company’s ability to meet customer demand. This risk is managed through planned maintenance programmes, continued investment in newer and more efficient machinery, and maintaining appropriate insurance cover to limit the financial impact of unforeseen events.
Credit Risk
The company is exposed to credit risk through its trade receivables, as customer default or delayed settlement could adversely affect cash flow and increase bad debt exposure. The directors mitigate this risk through credit assessments of new customers, ongoing monitoring of customer creditworthiness, setting exposure limits where appropriate and maintaining active credit control and debt collection procedures.
Liquidity and Cash Flow Management
The company must ensure that it maintains sufficient liquidity to meet its obligations as they fall due, particularly given its working capital requirements and ongoing capital investment. Weak cash flow management could restrict operational flexibility or limit the ability to invest in future growth. This risk is addressed through regular cash flow forecasting, close management of working capital, and maintaining access to external sources of finance where required.
Future Developments
The directors remain cautiously optimistic regarding future prospects. Demand for recycled metals continues to be supported by sustainability initiatives and infrastructure activity. The company intends to continue investing in operational efficiency while maintaining disciplined cost control and working capital management.
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Northern Metal Recycling Ltd
Strategic Report (continued)
For The Year Ended 30 December 2024
Section 172(1) Statement
In performing their duties under section 172 of the Companies Act 2006, the director has acted in good faith to promote the success of the company for the benefit of its members as a whole, having regard to:
In making decisions during the year, the director has taken into account the likely long‑term consequences of those decisions, particularly in relation to capital investment, operational capacity and financial sustainability. Significant investment was made in plant and machinery to improve efficiency and support future growth, while maintaining a prudent approach to financing and liquidity.
The interests of employees are considered central to the success of the business. The company aims to provide a safe working environment, appropriate training and fair remuneration. Employee matters, including health and safety, operational staffing levels and skills development, are considered as part of day‑to‑day management and longer‑term planning.
The company recognises the importance of maintaining strong relationships with its customers and suppliers. Customer satisfaction is supported through reliable service delivery, product quality and responsiveness to market requirements. Supplier relationships are managed with a focus on reliability, competitive pricing and ethical conduct, helping to support continuity of supply and operational efficiency.
The director also considers the impact of the company’s operations on the environment and wider community, particularly given the regulated nature of the waste and recycling sector. Compliance with environmental and health and safety legislation is treated as a priority, and the company seeks to operate responsibly within the communities in which it trades.
The need to maintain a reputation for high standards of business conduct is taken into account in all material business decisions. The company seeks to act fairly and transparently in its commercial dealings and to comply with applicable laws and regulations.
The director believes that the approach described above has supported the company’s performance during the year and continues to promote the long‑term success and sustainability of the business.
On behalf of the board

Mr Jordan Bell Director
12th May 2026

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Northern Metal Recycling Ltd
Company No. 12363829
Director's Report For The Year Ended 30 December 2024
Director's Report
The director presents his report and the financial statements for the year ended 30 December 2024.
Directors
The director who held office during the year were as follows:

Mr Jordan Bell

Qualifying Third-party and Pension Scheme Indemnity Provision
The director has the benefit of qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and continues to the current financial year. The company also purchased and maintained throughout the financial year directors’ and officers’ liability insurance in respect of itself and its director.
Results and Dividends
The results for the year are set out on page 11.
Ordinary interim dividends of £205,175 (2023 : £55,500) were paid. The director do not recommend payment of a final dividend.
Going concern
After making appropriate enquiries and reviewing cash flow forecasts and budgets, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company traded profitably during the year and generated strong cash flows from operating activities.
The financial statements have therefore been prepared on the going concern basis and no material uncertainties have been identified that may cast significant doubt on the company’s ability to continue as a going concern for a period of at least 12 months from the date of approval of the financial statements.
Statement of Director's Responsibilities
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the director is required to:

- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The director is responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Director's Report is approved:

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

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Northern Metal Recycling Ltd
Director's Report (continued)
For The Year Ended 30 December 2024
Independent Auditors
The auditors, King & King Chartered Accountants & Statutory Auditors, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board

Mr Jordan Bell Director
12th May 2026

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Independent Auditor's Report
to the Members of
Northern Metal Recycling Ltd
Independent Auditor's Report
Qualified opinion
We have audited the financial statements of Northern Metal Recycling Ltd (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 and of the company’sprofit 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 Qualified Opinion
We were not appointed as auditor of the company until after 31 December 2024 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2024, which are included in the balance sheet at £970,000, by using other audit procedures.
Consequently, we were unable to determine whether any adjustment to this amount was necessary.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Key Audit Matters
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.
Other Information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £970,000 held at 31 December 2024. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.
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Independent Auditor's Report (continued)
to the Members of
Northern Metal Recycling Ltd
Opinions on Other Matters Prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

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

Matters on Which We Are Required to Report by Exception
Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
- we were unable to determine whether adequate accounting records have been kept.

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:

- returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made

Responsibilities of Directors
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
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Independent Auditor's Report (continued)
to the Members of
Northern Metal Recycling Ltd
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Irregularities, including fraud are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the Company operates in and how the Company is complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from external tax advisors.
We also identified laws and regulations that have an indirect but potentially material effect on the financial statements due to the nature of the company’s operations as a scrap metal recycler and site clearance operator. These include the Scrap Metal Dealers Act 2013, environmental permitting and waste duty of care requirements under environmental protection legislation, and health and safety legislation including the Health and Safety at Work etc. Act 1974 and the Construction (Design and Management) Regulations 2015.
We reviewed the scope of the Company's compliance with its regulator and sample test relevant documentation to assess this and effectiveness of its control environment. The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters
The financial statements for the year ended 31 December 2023, were not audited and corresponding figures are unaudited.
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Independent Auditor's Report (continued)
to the Members of
Northern Metal Recycling Ltd
Use Of Our Report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters that we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Shakeel Parkar (Senior Statutory Auditor) for and on behalf of King & King , Statutory Auditor
12th May 2026
King & King Chartered Accountants & Statutory Auditors 83-85 Baker Street London W1U 6AG

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Northern Metal Recycling Ltd
Profit and Loss Account
For The Year Ended 30 December 2024
Profit and Loss Account

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| Notes | £ |  | £
TURNOVER | 3 | 30,806,978 |  | 25,340,162
Cost of sales |  | (25,101,746 ) |  | (21,398,283 )
GROSS PROFIT |  | 5,705,232 |  | 3,941,879
Administrative expenses |  | (2,519,288 ) |  | (1,722,533 )
OPERATING PROFIT | 4 | 3,185,944 |  | 2,219,346
Profit on disposal of fixed assets |  | 131,436 |  | 41,282
Other interest receivable and similar income | 9 | 102,648 |  | 9,095
Interest payable and similar charges | 10 | (1,463 ) |  | (635 )
PROFIT BEFORE TAXATION |  | 3,418,565 |  | 2,269,088
Tax on Profit | 11 | (1,088,554 ) |  | (1,122,232 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR |  | 2,330,011 |  | 1,146,856

The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 16 to 27 form part of these financial statements.
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Northern Metal Recycling Ltd
Statement of Comprehensive Income
For The Year Ended 30 December 2024
Statement of Comprehensive Income

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
PROFIT FOR THE FINANCIAL YEAR |  | 2,330,011 |  | 1,146,856
OTHER COMPREHENSIVE INCOME FOR THE YEAR |  | - |  | -
Prior year adjustment |  | 7,902 |  | -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |  | 2,337,913 |  | 1,146,856

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Northern Metal Recycling Ltd
Balance Sheet
As At 30 December 2024
Balance Sheet

| 2024 | 2023 as restated
--- | --- | ---
| Notes | £ | £ | £ | £
FIXED ASSETS
Tangible Assets | 13 |  | 6,095,913 |  | 4,276,258
|  |  | 6,095,913 |  | 4,276,258
CURRENT ASSETS
Stocks | 14 | 970,000 |  | 577,000 |
Debtors | 15 | 3,296,375 |  | 3,557,603 |
Cash at bank and in hand |  | 1,000,649 |  | 1,378,993 |
|  | 5,267,024 |  | 5,513,596 |
Creditors: Amounts Falling Due Within One Year | 16 | (3,185,317 ) |  | (4,547,461 ) |
NET CURRENT ASSETS (LIABILITIES) |  |  | 2,081,707 |  | 966,135
TOTAL ASSETS LESS CURRENT LIABILITIES |  |  | 8,177,620 |  | 5,242,393
Creditors: Amounts Falling Due After More Than One Year | 17 |  | (254,167 ) |  | (13,218 )
PROVISIONS FOR LIABILITIES
Deferred Taxation | 20 |  | (1,335,948 ) |  | (751,466 )
NET ASSETS |  |  | 6,587,505 |  | 4,477,709
CAPITAL AND RESERVES
Called up share capital | 22 |  | 1 |  | 1
Other reserves |  |  | (574,645 ) |  | (559,605 )
Profit and Loss Account |  |  | 7,162,149 |  | 5,037,313
SHAREHOLDERS' FUNDS |  |  | 6,587,505 |  | 4,477,709

On behalf of the board

Mr Jordan Bell Director
12th May 2026

The notes on pages 16 to 27 form part of these financial statements.
Page 13
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Northern Metal Recycling Ltd
Statement of Changes in Equity
For The Year Ended 30 December 2024
Statement of Changes in Equity

| Share Capital | Other reserves | Profit and Loss Account | Total
--- | --- | --- | --- | ---
| £ | £ | £ | £
As at 1 January 2023 | 1 | - | 3,945,957 | 3,945,958
Profit for the year and total comprehensive income | - | - | 1,146,856 | 1,146,856
Dividends paid | - | - | (55,500) | (55,500)
Movements in capital reserves | - | (559,605) | - | (559,605)
As at 31 December 2023 | 1 | (559,605 ) | 5,037,313 | 4,477,709
As at 1 January 2024 as previously stated | 1 | (559,605 ) | 5,029,411 | 4,469,807
Prior year adjustment | - | - | 7,902 | 7,902
As at 1 January 2024 as restated | 1 | (559,605 ) | 5,037,313 | 4,477,709
5,037,313
Profit for the year and total comprehensive income | - | - | 2,330,011 | 2,330,011
Dividends paid | - | - | (205,175) | (205,175)
Movements in capital reserves | - | (15,040) | - | (15,040)
As at 30 December 2024 | 1 | (574,645 ) | 7,162,149 | 6,587,505

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Northern Metal Recycling Ltd
Statement of Cash Flows
For The Year Ended 30 December 2024
Statement of Cash Flows

| 2024 |  | 2023 as restated
| Notes | £ |  | £
Cash flows from operating activities
Net cash generated from operations | 1 | 3,272,423 |  | 382,366
Interest paid |  | (1,463 ) |  | (635 )
Tax paid |  | (396,612 ) |  | -
Net cash generated from operating activities |  | 2,874,348 |  | 381,731
Cash flows from investing activities
Purchase of tangible assets |  | (3,526,596 ) |  | (1,923,161 )
Proceeds from disposal of tangible assets |  | 724,106 |  | 260,718
Interest received |  | 102,648 |  | 9,095
Net cash used in investing activities |  | (2,699,842 ) |  | (1,653,348 )
Cash flows from financing activities
Equity dividends paid |  | (205,175 ) |  | (55,500 )
Proceeds from new bank borrowings |  | 500,000 |  | -
Repayment of bank borrowings |  | (24,258 ) |  | (10,104 )
Proceeds from new other loans |  | - |  | 2,000,000
Repayment of other loans |  | (900,000) |  | -
Amount introduced by directors |  | 76,583 |  | -
Amount withdrawn by directors |  | - |  | (177,258)
Net cash (used in)/generated from financing activities |  | (552,850 ) |  | 1,757,138
(Decrease)/increase in cash and cash equivalents |  | (378,344 ) |  | 485,521
Cash and cash equivalents at beginning of year | 2 | 1,378,993 |  | 893,472
Cash and cash equivalents at end of year | 2 | 1,000,649 |  | 1,378,993

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Northern Metal Recycling Ltd
Notes to the Statement of Cash Flows
For The Year Ended 30 December 2024
Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Profit for the financial year | 2,330,011 |  | 1,146,856
Adjustments for:
Tax on profit | 1,088,554 |  | 1,122,232
Interest expense | 1,463 |  | 635
Interest income | (102,648 ) |  | (9,095 )
Depreciation of tangible assets | 1,114,271 |  | 910,264
Profit on disposal of tangible assets | (131,436) |  | (41,282)
Movements in working capital:
(Increase)/decrease in stocks | (393,000 ) |  | 23,000
Decrease/(increase) in trade and other debtors | 184,647 |  | (3,615,655 )
(Decrease)/increase in trade and other creditors | (819,439 ) |  | 845,411
Net cash generated from operations | 3,272,423 |  | 382,366

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

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Cash at bank and in hand | 1,000,649 |  | 1,378,993

3. Analysis of changes in net debt

| As at 1 January 2024 | Cash flows | As at 30 December 2024
--- | --- | --- | ---
| £ | £ | £
Cash at bank and in hand | 1,378,993 | (378,344) | 1,000,649
Finance leases | - | (500,000) | (500,000)
Debts falling due within one year | (2,010,165 ) | 900,165 | (1,110,000 )
Debts falling due after more than one year | (13,218) | 9,051 | (4,167)
| (644,390) | 30,872 | (613,518)

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Northern Metal Recycling Ltd
Notes to the Financial Statements
For The Year Ended 30 December 2024
Notes to the Financial Statements
1. General Information
Northern Metal Recycling Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 12363829 . The registered office is Unit 11 Hackworth Industrial Park, Shildon, Durham, DL4 1HF.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
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.
2.2. Going Concern Disclosure
The director has reviewed company's forecasts, carried out risk assessments and made other enquiries. After reviewing the company's position, the director has formed a judgement at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the 12 months from the date of signing this annual report and accounts. Thus the director continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3. Turnover
Revenue represents the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of business and is stated net of value added tax, rebates and other similar discounts.
The company’s principal source of revenue is derived from the sale of scrap metal and recycled materials to customers in the domestic and international markets.
Revenue from the sale of scrap metal is recognised when control of the goods passes to the customer, which is considered to be the point at which the scrap metal is despatched or collected from the company’s site, as evidenced by weighbridge tickets, delivery notes or equivalent contractual documentation. At this point, the significant risks and rewards of ownership are transferred to the customer, the amount of revenue can be measured reliably, and it is probable that the economic benefits associated with the transaction will flow to the company.
Sales are recognised at the contractual price agreed with the customer, which is typically determined by reference to grade, weight and prevailing market prices at the time of despatch or collection. Where sales involve variable pricing or final weight adjustments, revenue is recognised based on the best estimate of the consideration receivable, with any subsequent adjustments recognised in the period in which they are agreed.
The company does not engage in cash sales of scrap metal. Payments from customers are received via traceable banking channels in accordance with relevant regulatory requirements.
Where the company provides ancillary services, such as site clearance or processing services that are ancillary to the sale of scrap metal, revenue is recognised when the service has been performed and the outcome of the transaction can be measured reliably.
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold | 10% SL
Plant & Machinery | 20% RB
Fixtures & Fittings | 20% RB
Computer Equipment | 33% SL

Tangible assets are derecognised on disposal or when no future economic benefits are expected. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.
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Northern Metal Recycling Ltd
Notes to the Financial Statements (continued)
For The Year Ended 30 December 2024
2.5. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.
2.6. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.7. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.8. Financial Instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables 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
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.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
...CONTINUED
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Northern Metal Recycling Ltd
Notes to the Financial Statements (continued)
For The Year Ended 30 December 2024
2.8. Financial Instruments - continued
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
2.9. Foreign Currencies
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.
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Northern Metal Recycling Ltd
Notes to the Financial Statements (continued)
For The Year Ended 30 December 2024
2.10. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.11. Employee Benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current 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.
2.12. Pensions
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.13. Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
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Northern Metal Recycling Ltd
Notes to the Financial Statements (continued)
For The Year Ended 30 December 2024
2.14. Equity instruments
Equity instruments issued by the company 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 company.
2.15. Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Useful lives of assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Allowance for inventory obsolescence
Factors taken into consideration include the nature and condition of inventory, current economic environment and historic trade patterns in ensuring that stock recoverability is appropriately estimated.
3. Turnover
Analysis of turnover by class of business is as follows:

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Resale of goods and services | 201,433 |  | 147,536
Sale of metal | 30,605,545 |  | 25,192,626
| 30,806,978 |  | 25,340,162

Analysis of turnover by geographical market is as follows:

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
United Kingdom | 26,022,654 |  | 16,292,138
Rest of the world | 4,784,324 |  | 9,048,024
| 30,806,978 |  | 25,340,162

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Northern Metal Recycling Ltd
Notes to the Financial Statements (continued)
For The Year Ended 30 December 2024
4. Operating Profit
The operating profit is stated after charging:

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Bad debts | 51,200 |  | 44,000
Depreciation of tangible fixed assets | 1,114,271 |  | 910,264

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

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Audit Services
Audit of the company's financial statements | 25,000 |  | -

6. Staff Costs
Staff costs, including directors' remuneration, were as follows:

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Wages and salaries | 934,749 |  | 738,618
Social security costs | 92,578 |  | 69,105
Other pension costs | 22,335 |  | 16,481
| 1,049,662 |  | 824,204

7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:

| 2024 |  | 2023
--- | --- | --- | ---
Production staff | 20 |  | 18
Administrative staff | 5 |  | 5
| 25 |  | 23

8. Director's remuneration

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Emoluments | 12,570 |  | 12,570

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Northern Metal Recycling Ltd
Notes to the Financial Statements (continued)
For The Year Ended 30 December 2024
9. Interest Receivable and Similar Income

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Bank interest receivable | 632 |  | 1,192
Other interest receivable | 102,016 |  | 7,903
| 102,648 |  | 9,095

10. Interest Payable and Similar Charges

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Bank loans and overdrafts | 1,273 |  | 635
Other finance charges | 190 |  | -
| 1,463 |  | 635

11. Tax on Profit
Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements
The tax charge on the profit for the year was as follows:

| Tax Rate | 2024 |  | 2023 as restated
--- | --- | --- | --- | ---
| 2024 | 2023 | £ |  | £
Current tax
UK Corporation Tax | 25.0% | - | 504,072 |  | 370,766
Deferred Tax
Deferred taxation | 584,482 |  | 751,466
Total tax charge for the period | 1,088,554 |  | 1,122,232

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

| 2024 |  | 2023
--- | --- | --- | ---
| £ |  | £
Profit before tax | 3,418,565 |  | 2,269,088
Tax on profit at 25% (UK standard rate) | 854,641 |  | 533,559
Goodwill/depreciation not allowed for tax | 245,709 |  | 204,211
Expenses not deductible for tax purposes | (16,107 ) |  | 15,348
Tax losses utilised | - |  | (30,669 )
Capital allowances | (580,171 ) |  | (351,683 )
Deferred tax from unrecognised timing difference from a prior period | 584,482 |  | 751,466
Total tax charge for the period | 1,088,554 |  | 1,122,232

Tax charge for the period
In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). There has been no change to corporation tax rates for the financial year ended 31 December 2024. For the financial year ended 31 December 2024 the weighted average tax rate is 25 (31 December 2023 weighted average tax rate was 23.5%. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.
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Northern Metal Recycling Ltd
Notes to the Financial Statements (continued)
For The Year Ended 30 December 2024
12. Prior Period Adjustment
During the year, a material error was discovered regarding an interest free loan from a related party. As a result, the prior year financial statements have been restated. The effect on the comparative figures was increase in Profit for the financial year by £7,903 and increase in opening profit and loss reserves by £7,903. Further decrease in capital reserves by £559,605 and a decrease in amounts owed by group undertakings by £559,605.
13. Tangible Assets

| Land & Property
--- | ---
| Leasehold | Plant & Machinery | Fixtures & Fittings | Computer Equipment | Total
| £ | £ | £ | £ | £
Cost
As at 1 January 2024 | 348,356 | 5,229,297 | 185,505 | 7,482 | 5,770,640
Additions | 492,257 | 2,911,721 | 91,556 | 31,062 | 3,526,596
Disposals | - | (991,000 ) | - | - | (991,000 )
As at 30 December 2024 | 840,613 | 7,150,018 | 277,061 | 38,544 | 8,306,236
Depreciation
As at 1 January 2024 | 27,183 | 1,414,381 | 49,973 | 2,845 | 1,494,382
Provided during the period | 61,307 | 1,011,919 | 33,327 | 7,718 | 1,114,271
Disposals | - | (398,330 ) | - | - | (398,330 )
As at 30 December 2024 | 88,490 | 2,027,970 | 83,300 | 10,563 | 2,210,323
Net Book Value
As at 30 December 2024 | 752,123 | 5,122,048 | 193,761 | 27,981 | 6,095,913
As at 1 January 2024 | 321,173 | 3,814,916 | 135,532 | 4,637 | 4,276,258

The net carrying amount of assets held under finance leases included in plant, machinery, fixtures and fittings is £619,500 (2023: £0).
14. Stocks

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Stock | 970,000 |  | 577,000

15. Debtors

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Due within one year
Trade debtors | 1,019,132 |  | 1,244,300
Amounts owed by group undertakings | - |  | 1,606,558
Other debtors | 497,520 |  | 680,899
| 1,516,652 |  | 3,531,757

...CONTINUED
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Northern Metal Recycling Ltd
Notes to the Financial Statements (continued)
For The Year Ended 30 December 2024

Due after more than one year
Amounts owed by group undertakings | 1,753,877 |  | -
Other debtors | 25,846 |  | 25,846
| 1,779,723 |  | 25,846
| 3,296,375 |  | 3,557,603

Trade debtors are stated after provisions for impairment of £51,200 (2023: £44,000).
The amounts owed by group undertakings comprise of unsecured loan which is interest free and repayable on maturity date at 30 November 2028, though the loan may be repaid in part or in full at an earlier date without penalty. The carrying amount of the loan is initially measured at fair value using a market interest rate of 6% and subsequently at amortised cost. The principal amount outstanding as at the year-end was £2,218,604 (2023 : £2,158,260). The amortised cost as at 31 December 2024 was £1,753,877 (2023 : £1,606,558).
16. Creditors: Amounts Falling Due Within One Year

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Net obligations under finance lease and hire purchase contracts | 250,000 |  | -
Trade creditors | 984,378 |  | 2,066,079
Bank loans and overdrafts | 10,000 |  | 10,165
Other loans | 1,100,000 |  | 2,000,000
Other creditors | 18,878 |  | 53,814
Corporation tax | 504,072 |  | 396,612
Taxation and social security | 268,105 |  | 15,993
Accruals and deferred income | 49,884 |  | 4,798
| 3,185,317 |  | 4,547,461

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

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Net obligations under finance lease and hire purchase contracts | 250,000 |  | -
Bank loans | 4,167 |  | 13,218
| 254,167 |  | 13,218

18. Loans
An analysis of the maturity of loans is given below:

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Amounts falling due within one year or on demand:
Bank loans | 10,000 |  | 10,165
Other loans | 1,100,000 |  | 2,000,000
| 1,110,000 |  | 2,010,165

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Northern Metal Recycling Ltd
Notes to the Financial Statements (continued)
For The Year Ended 30 December 2024

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Amounts falling due between one and five years:
Bank loans | 4,167 |  | 13,218

Bank loan is for 72 months expiring in May 2026. The loan was interest free for the first 12 months. Thereafter, interest is charged at rate of 3.8% over the BOE base rate.
Other loans are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
19. Obligations Under Finance Leases and Hire Purchase

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
The future minimum finance lease payments are as follows:
Not later than one year | 268,200 |  | -
Later than one year and not later than five years | 268,200 |  | -
| 536,400 |  | -
Less: Finance charges allocated to future periods | 36,400 |  | -
| 500,000 |  | -

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase option at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20. Deferred Taxation
The provision for deferred tax is made up as follows:

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
Other timing differences | 1,335,948 |  | 751,466

The net deferred tax liability expected to reverse in 2025 is £268,099. This primarily relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation, offset by expected tax deductions when payments are made to utilise provisions.
21. Provisions for Liabilities

| Deferred Tax | Total
--- | --- | ---
| £ | £
As at 1 January 2024 | 751,466 | 751,466
Additions | 584,482 | 584,482
Balance at 30 December 2024 | 1,335,948 | 1,335,948

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Northern Metal Recycling Ltd
Notes to the Financial Statements (continued)
For The Year Ended 30 December 2024
22. Share Capital

| 2024 |  | 2023 as restated
--- | --- | --- | ---
Allotted, called up and fully paid | £ |  | £
1 Ordinary Shares of £ 1.000 each | 1 |  | 1

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
23. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to the profit and loss account in respect of defined contribution schemes was £22,335 (2023: £16,481)
At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.
24. Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:

| As at 1 January 2024 | Amounts advanced | Amounts repaid | Amounts written off | As at 30 December 2024
--- | --- | --- | --- | --- | ---
| £ | £ | £ | £ | £
Mr Jordan Bell | 76,581 | - | 76,581 | - | -

The above loan is unsecured, interest free and repayable on demand.
25. Dividends

| 2024 |  | 2023 as restated
--- | --- | --- | ---
| £ |  | £
On equity shares:
Final dividend paid | 205,175 |  | 55,500

26. Related Party Disclosures
The company is exempt from disclosing other related party transactions as they are with other companies that are wholly owned within the JS Bell Limited group.
27. Controlling Parties
The company's immediate parent undertaking is JS Bell Ltd .
The ultimate parent undertaking is JS Bell Ltd (incorporated in England & Wales). Its registered office is 15 Front Street, Sherburn Hill, Durham DH6 1PA .
The company's ultimate controlling party is JS Bell by virtue of their interest in the share capital of the parent company.
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