REGISTERED NUMBER: 01651205 (England and Wales)

Strategic Report,

Report of the Director and

Financial Statements

for the Year Ended 30 September 2025

for

Southwark Metals Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

8

Other Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTOR:

T W Pratt

SECRETARY:

N Pratt

REGISTERED OFFICE:

Horn Link Way

Horn Lane

London

SE10 0RT

REGISTERED NUMBER:

01651205 (England and Wales)

AUDITORS:

Ardor Business Solutions Limited

Statutory Auditors

Chartered Certified Accountants

Unit 1

Shrine Barn

Sandling Road

Hythe

Kent

CT21 4HE

The director presents his strategic report for the year ended 30 September 2025.

REVIEW OF BUSINESS

The Director's review is consistent with the size and non-complex nature of the business.

The Company continues to operate in the metals recycling industry. Over the last few years considerable investment has been made in new technology, plant and trucks as part of the Company's philosophy. The Company has over 31 years of experience in the metals recycling industry.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company is extremely conscious of the suppliers it deals with. The Director and staff take stringent measures to ensure that they know the details of all of their suppliers and the source of the metals that they are purchasing. The Company has a close relationship with the local community and authorities and has been given a "Green Light" by the local police with whom they work closely to monitor possible risks of illegal activities in the vicinity.

The price of metals varies in accordance with the external market. The Company manages this risk by regularly reviewing prices on both sides of the transaction in order to compensate for price fluctuations.

Trade debtors are managed in respect of credit and cash flow risks by policies concerning the credit offered to customers and the regular monitoring of amounts of both time and credit limits. Provision for doubtful debts is made as necessary.

LIQUIDITY RISK

The Company monitors and reviews liquidity risks regularly on an ongoing basis and also as part of the planning process. The Director considers short-term requirements against available sources of funding, taking into account cashflow and response to any identified needs as necessary to support the business.

CREDIT RISK

The Company's credit risk relates to recovery of amounts owed by customers for invoiced sales. The credit risk is managed by regular monitoring of outstanding amounts.

FINANCIAL INDICATORS

Gross profit margin for the year for the Company was 29% (2024: 24%) and operating profit margin was 8% (2024: 3%). The Company seeks to provide growth in earnings through improved efficiencies and operations in light of market conditions.

Markets have proven to be difficult and the Company is seeking improved volumes to be able to command better sales prices which are volume related. The generation of earnings is essential to deliver growth and to fund future growth in the business. Overheads are reviewed, monitored and controlled by management on a regular basis.

Financial indicators

Turnover

Year ended 30 September 2025 - £17,695,577

Year ended 30 September 2024 - £17,297,967

ON BEHALF OF THE BOARD:

T W Pratt - Director

4 June 2026

The director presents his report with the financial statements of the company for the year ended 30 September 2025.

DIVIDENDS

A final dividend of £51,255 per Ordinary Share was paid on 2 June 2025. No dividends were paid in respect of B shares.

The total distribution of dividends for the year ended 30 September 2025 will be £5,125,500.

DIRECTOR

T W Pratt held office during the whole of the period from 1 October 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director 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 he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 him 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Ardor Business Solutions Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T W Pratt - Director

4 June 2026

Opinion

We have audited the financial statements of Southwark Metals Limited (the 'company') for the year ended 30 September 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards).

We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Bryan Michael Kemsley FCCA FMAAT (Senior Statutory Auditor)

for and on behalf of Ardor Business Solutions Limited

Statutory Auditors

Chartered Certified Accountants

Unit 1

Shrine Barn

Sandling Road

Hythe

Kent

CT21 4HE

8 June 2026

TURNOVER

17,695,577

17,297,967

Cost of sales

12,636,162

13,008,368

GROSS PROFIT

5,059,415

4,289,599

Distribution costs

1,745,085

1,698,786

Administrative expenses

2,068,252

2,146,854

3,813,337

3,845,640

1,246,078

443,959

Other operating income

233,173

185,063

OPERATING PROFIT

5

1,479,251

629,022

Interest payable and similar expenses

6

205,079

125,254

PROFIT BEFORE TAXATION

1,274,172

503,768

Tax on profit

7

313,240

207,367

PROFIT FOR THE FINANCIAL YEAR

960,932

296,401

PROFIT FOR THE YEAR

960,932

296,401

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

960,932

296,401

FIXED ASSETS

Tangible assets

9

3,777,345

3,613,764

CURRENT ASSETS

Stocks

10

106,964

215,021

Debtors

11

3,363,668

7,499,209

Cash at bank

1,210,120

675,311

4,680,752

8,389,541

CREDITORS

Amounts falling due within one year

12

2,840,344

1,242,192

NET CURRENT ASSETS

1,840,408

7,147,349

TOTAL ASSETS LESS CURRENT LIABILITIES

5,617,753

10,761,113

CREDITORS

Amounts falling due after more than one year

13

(1,193,302

)

(2,194,327

)

PROVISIONS FOR LIABILITIES

17

(853,381

)

(831,148

)

NET ASSETS

3,571,070

7,735,638

CAPITAL AND RESERVES

Called up share capital

18

101

101

Retained earnings

19

3,570,969

7,735,537

SHAREHOLDERS' FUNDS

3,571,070

7,735,638

The financial statements were approved by the director and authorised for issue on 4 June 2026 and were signed by:

T W Pratt - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

101

7,439,136

7,439,237

Changes in equity

Total comprehensive income

-

296,401

296,401

Balance at 30 September 2024

101

7,735,537

7,735,638

Changes in equity

Dividends

-

(5,125,500

)

(5,125,500

)

Total comprehensive income

-

960,932

960,932

Balance at 30 September 2025

101

3,570,969

3,571,070

Cash flows from operating activities

Cash generated from operations

1

1,686,839

(149,155

)

Interest paid

(107,653

)

(65,821

)

Interest element of finance lease payments paid

(97,426

)

(59,433

)

Tax paid

(285,703

)

(51,608

)

Net cash from operating activities

1,196,057

(326,017

)

Cash flows from investing activities

Purchase of tangible fixed assets

(812,347

)

(1,619,339

)

Sale of tangible fixed assets

59,567

646,983

Net cash from investing activities

(752,780

)

(972,356

)

Cash flows from financing activities

New loans in year

67,654

-

Loan repayments in year

-

30,052

Capital repayments in year

(34,122

)

869,011

Amount introduced by directors

58,000

-

Net cash from financing activities

91,532

899,063

Increase/(decrease) in cash and cash equivalents

534,809

(399,310

)

Cash and cash equivalents at beginning of year

2

675,311

1,074,621

Cash and cash equivalents at end of year

2

1,210,120

675,311

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

30/9/25

30/9/24

£

£

Profit before taxation

1,274,172

503,768

Depreciation charges

395,246

377,070

Loss on disposal of fixed assets

193,952

149,349

Finance costs

205,079

125,254

2,068,449

1,155,441

Decrease/(increase) in stocks

108,057

(106,002

)

(Increase)/decrease in trade and other debtors

(995,263

)

446,836

Increase/(decrease) in trade and other creditors

505,596

(1,645,430

)

Cash generated from operations

1,686,839

(149,155

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 September 2025

30/9/25

1/10/24

£

£

Cash and cash equivalents

1,210,120

675,311

Year ended 30 September 2024

30/9/24

1/10/23

£

£

Cash and cash equivalents

675,311

1,074,621

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/10/24

Cash flow

At 30/9/25

£

£

£

Net cash

Cash at bank and in hand

675,311

534,809

1,210,120

675,311

534,809

1,210,120

Debt

Finance leases

(1,528,734

)

34,122

(1,494,612

)

Debts falling due within 1 year

(408,232

)

(1,038,401

)

(1,446,633

)

Debts falling due after 1 year

(970,748

)

970,748

-

(2,907,714

)

(33,531

)

(2,941,245

)

Total

(2,232,403

)

501,278

(1,731,125

)

1.	STATUTORY INFORMATION

Southwark Metals Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

Amounts are rounded to the nearest Pound Sterling.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

In the application of the company's accounting policies, the Director is required to make judgements, estimations 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

10% on reducing balance

Fixtures, fittings and computer equipment

-

10% on reducing balance

Motor vehicles

-

10% on reducing balance

Freehold property comprising land is not depreciated and is of a value at least equal to cost.

Impairment of fixed assets

At each reporting period end date, the company 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.

Stocks

Stocks 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. 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.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

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

4.	EMPLOYEES AND DIRECTORS

30/9/25

30/9/24

£

£

Wages and salaries

1,015,617

794,723

Social security costs

-

125

Other pension costs

49,915

26,915

1,065,532

821,763

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

30/9/25

30/9/24

Director

1

1

Management and production

22

18

23

19

30/9/25

30/9/24

£

£

Director's remuneration

10,004

10,004

5.	OPERATING PROFIT

The operating profit is stated after charging:

30/9/25

30/9/24

£

£

Depreciation - owned assets

197,176

221,018

Depreciation - assets on finance leases

198,071

156,051

Loss on disposal of fixed assets

193,952

149,349

Auditors' remuneration

15,600

15,200

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

30/9/25

30/9/24

£

£

Late payment tax charges

-

768

Other loan interest

107,653

65,053

Hire purchase interest

97,426

59,433

205,079

125,254

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30/9/25

30/9/24

£

£

Current tax:

UK corporation tax

291,007

238

Deferred tax

22,233

207,129

Tax on profit

313,240

207,367

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30/9/25

30/9/24

£

£

Profit before tax

1,274,172

503,768

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

318,543

125,942

Effects of:

Expenses not deductible for tax purposes

71,335

46,005

Income not taxable for tax purposes

(6,450

)

-

Capital allowances in excess of depreciation

(92,421

)

(171,634

)

Marginal relief

-

(75

)

Deferred taxation

22,233

207,129

Total tax charge

313,240

207,367

8.

DIVIDENDS

30/9/25

30/9/24

£

£

Ordinary shares of £1 each

Interim

5,125,500

-

9.	TANGIBLE FIXED ASSETS

Fixtures,

fittings

and

Freehold

Plant and

computer

Motor

property

machinery

equipment

vehicles

Totals

£

£

£

£

£

COST

At 1 October 2024

220,137

3,687,811

336,010

1,143,066

5,387,024

Additions

-

651,214

-

161,133

812,347

Disposals

-

(155,309

)

(68,441

)

(342,190

)

(565,940

)

At 30 September 2025

220,137

4,183,716

267,569

962,009

5,633,431

DEPRECIATION

At 1 October 2024

-

1,253,624

167,523

352,113

1,773,260

Charge for year

-

299,862

16,582

78,803

395,247

Eliminated on disposal

-

(68,528

)

(65,781

)

(178,112

)

(312,421

)

At 30 September 2025

-

1,484,958

118,324

252,804

1,856,086

NET BOOK VALUE

At 30 September 2025

220,137

2,698,758

149,245

709,205

3,777,345

At 30 September 2024

220,137

2,434,187

168,487

790,953

3,613,764