Registered number: 05579683
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The principal activity of the company is the manufacture of cold-rolled steel products, primarily for the UK construction and renewable sector. During the year, the company expanded its operations into the renewable sector, commencing the manufacture of steel frames for ground-mounted solar installations and car port systems. The company also provides specialist design and manufacturing services, including profiled MetFloor metal decking, the MetPurl purlin range, and a range of sections for industrial building systems and associated cold-formed steel construction products.
Following the investment in a second factory in Magor, the company has continued to attract and retain new customers, resulting in growth in external sales across the purlin, mezzanine flooring and renewables markets.
Construction Metal Forming Limited (‘CMF’) is a joint venture between Kenai Holdings Limited and Severfield plc. The support from distributors within the Kenai group has underpinned the success of CMF for many years. CMF’s products are sold to the external market through its Kenai group sales arms: Construction Metal Sales Limited (‘CMS’) for purlin and mezzanine floor products, and MetSolar Limited for solar ground mount frames and car port structures. During the year, CMF expanded into the renewables sector, with these products manufactured by the company and sold externally through MetSolar Limited. The formation of the joint venture with Severfield plc, the largest steel fabricator in the UK, continues to produce encouraging results and has been a significant factor in the company’s continued growth. The joint venture relationship has also been instrumental in supporting the company’s expansion into new product areas.
Page 1
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The UK construction market remained challenging during the year ended 31 March 2026, with subdued demand driven by elevated interest rates and ongoing cost pressures, despite some easing over the period, alongside a continued cautious investment environment. Broader market conditions were further impacted by supply chain disruption within the steel sector, including the effect of import quota constraints and geopolitical factors influencing raw material availability and pricing. CMF was not immune to these pressures, which are reflected in the financial performance for the year. In addition, the company continued to incur the operational and overhead costs associated with its second manufacturing facility at Magor, ahead of fully utilising its expanded capacity. As a result, the year represented another period of investment and transition as the business continued to scale its operations and strengthen its market position. Despite these short-term challenges, the company has made good progress in developing its order book and product offering, including entry into new markets, and is well positioned to benefit from improved utilisation levels. The directors remain confident in the strategic direction of the business and expect performance to improve as market conditions stabilise and the benefits of recent investments are realised.
Sales for the year ended 31 March 2026 were £21.2m (2025: £33.5m), representing a decrease of 36.6%. The prior year covered a 15-month period and is therefore not directly comparable to the current 12-month period. During the year, the company experienced delays and cancellations of prospective projects, reflecting challenging conditions in the wider construction market, as customers adopted a more cautious approach to investment. Gross profit for the year was £3.1m (2025: £6.0m), with gross margin decreasing from 18.0% in the prior period to 14.8% in the current year, primarily due to reduced demand and margin pressure within the sector. Steel prices remained broadly stable for much of the year before increasing towards the year end, driven by import quota constraints and geopolitical disruption impacting supply. The company continues to mitigate steel price risk through disciplined inventory management, purchasing policies and ongoing market analysis. Administrative expenses reduced from £5.8m in the prior period to £4.8m in the current year; however, when adjusted for the shorter 12-month reporting period, this represents a small underlying increase of approximately £0.1m. The company continues to invest in its future growth, including the expansion of its management, technical, sales and engineering teams, to support increased presence in both new and existing markets.
Looking ahead beyond FY25/26, the company’s strategic focus is centred on several key areas. Firstly, to build on the progress made within the purlin and mezzanine markets. Secondly, to further diversify the product portfolio, with particular emphasis on the recently established renewables offering, leveraging the company’s extensive manufacturing and technical expertise. Finally, the company will continue to strengthen its position as a leading supplier of metal decking in the UK. The company closed the year with a strong forward order book extending into FY26/27, supported by continued demand and the ongoing support of its joint venture partners.
We strive for high quality in both product and service and take pride in our continued mission statement to be '3 steps ahead... and always a little further'.
A summary of the company's key performance indicators (KPI's) for the current and previous years are included below.
Page 2
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Market and Economic Risk
The Company operates within the construction sector, which remains highly sensitive to macroeconomic conditions. During the year ended March 2026, the industry has continued to experience subdued activity levels, reflecting the lagged impact of previously elevated interest rates, ongoing inflationary pressures, and continued political and economic uncertainty both domestically and globally. Whilst there are early signs of improving market sentiment, recovery remains uneven and fragile. These conditions continue to present a risk to volumes and margins. The Company mitigates this exposure through a diversified product offering, strong customer relationships, and the established market position of its joint venture partners. The Board believes the Company remains well positioned to capitalise on improved demand as confidence returns to the construction sector.
Cash Preservation & Interest Rates
Although UK base rates began to reduce during the latter part of the prior financial year, interest rates remain elevated relative to historical norms, and inflation continues to track above the Bank of England’s 2% target. Whilst further rate cuts are anticipated by the market, the timing and scale of such reductions remain uncertain. Accordingly, the preservation of cash and maintenance of liquidity remain key strategic priorities, ensuring the Company is well positioned to manage financing costs and respond to market opportunities. Supported by the strong financial backing of its joint venture partners, the Company continues to maintain a solid financial position. This is complemented by a healthy forward order book and ongoing tender activity across its distributor network.
Cost Base
The Company continues to face upward pressure on its cost base as a result of recent and anticipated UK Government policy changes. In particular, the increase in employer National Insurance contributions effective from April 2025 has resulted in a material increase in payroll costs, reflecting the Company’s reliance on a skilled workforce. In addition, ongoing inflationary pressures across energy, logistics, and general operating costs continue to impact profitability. Future policy developments, including changes to employment legislation, environmental regulation, and energy taxation, may further increase cost pressures. The Company mitigates these risks through regular review of its cost base, operational efficiency initiatives, and disciplined capital investment aligned to productivity improvements.
Brexit
The UK’s exit from the European Union continues to present residual economic and operational risks, particularly in relation to cross-border trade. While the majority of the Company’s revenue is generated domestically, its supply chain remains partially reliant on imported raw materials, including from the EU. Ongoing regulatory divergence, customs requirements and documentation obligations may impact the cost, timing and administrative burden associated with imports. In addition, currency volatility may affect input pricing. The Board mitigates these risks through maintaining a flexible procurement approach, working with a diversified supplier base, and monitoring regulatory developments to respond effectively to changes in the trading environment.
Steel Imports & Tariffs
The availability and cost of steel represent the most significant risk to the Company given its reliance on steel as a core raw material. Market conditions remain volatile, driven by global trade policies, regulatory change and geopolitical uncertainty. The continuation and potential tightening of UK safeguard measures, including reductions in import quotas, may restrict access to competitively priced imported steel and place upward pressure on costs. In addition, the introduction of the UK Carbon Border Adjustment Mechanism (CBAM) is expected to increase administrative requirements and, over time, introduce additional costs on imported steel. Global tariff policies and supply chain disruption may further constrain availability and increase price volatility, creating a risk of margin compression and supply delays. The Company mitigates this risk through active supplier management, a diversified sourcing strategy, and ongoing monitoring of quota utilisation and market conditions.
Page 3
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Overview
The business' activities expose it to a variety of financial risks. Risk management is governed by the company's operational policies, which are subject to periodic review by the board of directors. The business' principal financial instruments comprise bank balances, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.
Liquidity Risk
In respect of bank balances and trade creditors, the liquidity risk that the company will not be able to meet its financial obligations as and when they fall due, is managed by maintaining the continuity of funding.
Effective management of cash and working capital are a key ongoing priority and in 2015 the directors secured an overdraft facility to enable the company to secure steel at rates significantly below the anticipated market value. In addition to this, in Q4-2021 the directors secured additional funding in the form of a trade loan to increase our capacity to capitalise on purchasing opportunities within the steel market, without limiting our ability to invest in future growth opportunities.
Credit Risk
Credit Risk
The company's exposure to credit risk arises from the potential for non-payment or default from its trade debtors. The degree to which the company is exposed to this credit risk is reduced as the majority of our trading is through our Joint Venture shareholders.
For external turnover the company manages its exposure to credit risk through the application of its credit risk management policies which specify the minimum requirements in respect of the creditworthiness of potential customers, assessed through reports from credit agencies. Management regularly monitor amounts outstanding for both time and credit limits.
Price and Innovation Risk
The company operates in highly competitive markets. Significant product innovations, technical advances or the intensification of price competition could adversely impact the results for the company. CMF invests in significant training of its staff to ensure that the company is well placed to provide a choice for customers, to ensure that they are aware of their options and are satisfied with the level of service we provide. The company also continually works to streamline its cost base to ensure that it remains competitive.
Employees
We are an equal opportunities employer and are committed to encouraging diversity and eliminating discrimination in both our role as an employer and as a provider of services. The company's reputation is dependent on the quality, effectiveness and skill base of its employees. We aim to create a culture that respects and values each other's differences, that promotes dignity, equality and diversity and that encourages individuals to develop and maximise their true potential. We are committed, wherever practicable, to achieving and maintaining a workforce that broadly reflects the communities in which we operate.
Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the company continues and the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of a disabled person should be, as far as possible, identical to that of a person who does not suffer from a disability.
The board of directors takes account of employees' interests when making decisions and suggestions from employees aimed at improving the company's performance are welcomed. Employees are provided with information concerning the performance and future developments of the company through regular briefing bulletins.
Page 4
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
This report was approved by the board and signed on its behalf.
Page 5
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The directors present their report and the financial statements for the year ended 31 March 2026.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £1,114,281 (2025 - loss £69,092).
No dividends will be distributed for the year ended 31 March 2026.
The directors who served during the year were:
Page 6
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The auditors, from the previous year, Haines Watts Wales LLP, merged with Menzies LLP mid-year. Menzies LLP will conduct the audit for the financial year ending March 2026 and will be proposed for re-appointment at the forthcoming Annual General Meeting.,
This report was approved by the board and signed on its behalf.
Page 7
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CONSTRUCTION METAL FORMING LIMITED
We have audited the financial statements of Construction Metal Forming Limited (the 'Company') for the year ended 31 March 2026, which comprise the Statement of comprehensive income, the Analysis of net debt, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, 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 auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Strategic Report and the Report of the Directors other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Strategic Report and the Report of the Directors. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 8
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CONSTRUCTION METAL FORMING LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
Page 9
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CONSTRUCTION METAL FORMING LIMITED (CONTINUED)
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 Auditors' 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Discussing with Director and Management which areas of the business they believe to be more susceptible to fraud, and whether they have any knowledge or suspicion of fraudulent activities;
- Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing the effectiveness of those and discussing how these are maintained and monitored internally;
- Assessing the risk of management override and review and testing of journal entries made into the accounting system;
- Challenging assumptions and judgements made by the company in relation to the significant accounting estimates employed in the preparation of the financial statements;
- Discussing with Director and Management the legal and regulatory obligations of the business and whether they have any knowledge or suspicion of non-compliance.
- Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing the effectiveness of those and discussing how these are maintained and monitored internally;
- Assessing the risk of management override and review and testing of journal entries made into the accounting system;
- Challenging assumptions and judgements made by the company in relation to the significant accounting estimates employed in the preparation of the financial statements;
- Discussing with Director and Management the legal and regulatory obligations of the business and whether they have any knowledge or suspicion of non-compliance.
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 Auditors' report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Hodge House
114-116 St Mary Street
CF10 1DY
Page 10
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2026
Page 11
BALANCE SHEET
AS AT 31 MARCH 2026
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 30 form part of these financial statements.
Page 12
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2026
Page 13
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2026
Page 14
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2026
Page 15
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Construction Metal Forming 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.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The company's current financial year covers the 12-month period ended 31 March 2026. The comparative figures relate to the 15-month period ended 31 March 2025 and are therefore not directly comparable.
The following principal accounting policies have been applied:
The company reported net current liabilities of £3.8m at 31 March 2026. This position arises principally from amounts due to its joint owners of £5.0m. The joint owners have confirmed that they will not seek repayment of these balances unless and until the company has sufficient funds available to make repayment. The directors have reviewed cash flow forecasts for a period of at least 12 months from the date of approval of the financial statements and are satisfied that the company will be able to meet its liabilities as they fall due. Accordingly, the financial statements have been prepared on the going concern basis.
Functional and presentation currency
Transactions and balances
Page 16
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Page 17
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Page 18
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Page 20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
7.Taxation (continued)
Page 23
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Page 24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
Page 25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
11.Debtors (continued)
Page 26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
a) Debenture dated 04/07/2016
b) Limited guarantee given by Severfield PLC dated 28/08/2018
c) Limited guarantee given by Severfield PLC dated 01/12/2021
d) Limited guarantee given by Kenai Holdings Limited dated 22/11/2022
The Mortgage creditor has the following security:
a) Rights, title and interest in the assets to which the loan relates;
b) Rights, title and interest in all presently held insurances;
c) The benefit of and all of the rights under all existing guarantees, warranties, all servicing and maintenance
agreements and all IP rights owned by it or licensed to it or to which it is entitled relating to such assets or their use.
d) A First Fixed charge;
- on all assets which are not owned by the borrower on the date of the mortgage and which the Borrower
subsequently acquires.
- all assets of the same or similar type as the assets required which are acquired by the borrower at any time in the
future in replacement for, as a renewal of, as additions to or otherwise to supplement the assets.
- all future guarantees, warranties and servicing and maintenance agreements to which it becomes entitled in
relation to the assets.
- the benefit of all present and future insurances.
b) Limited guarantee given by Severfield PLC dated 28/08/2018
c) Limited guarantee given by Severfield PLC dated 01/12/2021
d) Limited guarantee given by Kenai Holdings Limited dated 22/11/2022
The Mortgage creditor has the following security:
a) Rights, title and interest in the assets to which the loan relates;
b) Rights, title and interest in all presently held insurances;
c) The benefit of and all of the rights under all existing guarantees, warranties, all servicing and maintenance
agreements and all IP rights owned by it or licensed to it or to which it is entitled relating to such assets or their use.
d) A First Fixed charge;
- on all assets which are not owned by the borrower on the date of the mortgage and which the Borrower
subsequently acquires.
- all assets of the same or similar type as the assets required which are acquired by the borrower at any time in the
future in replacement for, as a renewal of, as additions to or otherwise to supplement the assets.
- all future guarantees, warranties and servicing and maintenance agreements to which it becomes entitled in
relation to the assets.
- the benefit of all present and future insurances.
Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Page 28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
At 31 March 2026 the company had capital commitments of £264k (2025: £nil) relating to the purchase of manufacturing equipment.
Page 29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
The company is jointly owned and controlled by Kenai Holdings Limited and Severfield plc and accordingly there is no single ultimate controlling party.
Page 30