REGISTERED NUMBER: 07395898 (England and Wales)

SCRAPCO METAL RECYCLING LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Income Statement

10

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTOR:

D T A Hunn

REGISTERED OFFICE:

Suite D, The Business Centre

Faringdon Avenue

Romford

Essex

RM3 8EN

REGISTERED NUMBER:

07395898 (England and Wales)

AUDITORS:

Clay Ratnage Daffin & Co Limited

Chartered Accountants and

Statutory Auditors

Suite D, The Business Centre

Faringdon Avenue

Romford

Essex

RM3 8EN

The director presents his strategic report for the year ended 31 December 2025.

REVIEW OF BUSINESS

Having had regard to Section 417 of the Companies Act 2006 the directors consider the profit on ordinary activities to be in accordance with their expectations, after taking into account general trading conditions prevailing during the year under review.

The turnover of the company reduced by some £368k to £19,096,509 compared to the previous year. Gross profit margins have reduced by some 2.2% to 29.2%. The reduction in turnover was predominately caused by the sale of the skip side of the business at the end of September 2025.

The directors are continually mindful of the volatility of prices and the need to invest in plant and diversify the activities of the company where practicable. The directors have invested some £970k in new plant to ensure the company remains competitive.

Overall the 2025 results are in line with expectation. The director expects 2026 to show increased turnover but similar percentage margins as a result of an increase in metal prices at the start of the year. The directors are aware of the challenges as when prices are high they can fall sharply and have plans in place to mitigate the effect of this.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors regularly review issues, risks and uncertainties that face the company in order to plan ways to mitigate risk.

The commodity prices, particularly when moving on a downward trend, present an ongoing challenge for the company to ensure they do not pay too much for material, while at the same time offering prices at a level sufficient to attract sellers. Stock holding during such times can lead to stock losses if prices work against the company.

Material which is recycled is mostly destined for the emerging export markets. Economic buoyancy in those locations determine demand and consequently price.

The company operates in a high value capital intensive industry. Individual items of plant can cost £3/4 million or more. Investment on such scale will be necessary for the company to retain its competitive edge and operate efficiently.

The company operates in an industry which is highly regulated by various Government agencies and compliance with increasing regulation always presents a risk in addition to escalating costs.

FINANCIAL KEY PERFORMANCE INDICATORS

The gross profit of the company for the current year is 29.2% compared to 31.5% in the prior year. The current ratio is at 1.99 (2024 - 1.22) and quick ratio is at 1.51 (2024 - 1.04). The average stockholding period was 23 days (2024 - 24 days) and has fixed asset turnover at 7 (2024 - 7).

ON BEHALF OF THE BOARD:

D T A Hunn - Director

28 July 2026

The director presents his report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of recycling metal waste, scrap and skip hire.

DIVIDENDS

During the year the directors recommended the payment of dividends totalling £124,097 (2024 - £127,653). The directors do not recommend the payment of a further dividend.

FUTURE DEVELOPMENTS

The directors are not aware of any future developments which would have a significant effect on the company, other than as noted in the strategic report.

DIRECTORS

D T A Hunn has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

Ms K P Frost and R G Hunn ceased to be directors after 31 December 2025 but prior to the date of this report.

DIRECTOR'S RESPONSIBILITIES STATEMENT

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, Clay Ratnage Daffin & Co Limited, will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

D T A Hunn - Director

28 July 2026

Opinion

We have audited the financial statements of Scrapco Metal Recycling Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 Director's Responsibilities Statement set out on page four, 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.

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:

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

• Obtaining an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate.

• Obtaining an understanding of how the company are complying with those legal and regulatory frameworks by making enquiries to the management of the company’s accounting department, and management itself.

• The susceptibility of the company’s financial statements to material misstatement caused by fraud or other irregularities were assessed with the following procedures:

o Identifying and assessing the design effectiveness of controls which management have in place to prevent and detect fraud

o Understanding how those charged with governance considered and addressed the potential for override of controls and management biases

o Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations

o Assessing the extent of compliance with the relevant laws and regulations

o Assessing the extent to which pressures existed which may have increased the risk of fraudulent revenue recognition

Potential fraud risks that had been identified throughout the planning and commencement of the audit were communicated to the audit team.

The inherent limitations of audit present an unavoidable risk that we, the auditors, may not have detected some material misstatements within the financial statements despite proper planning and performance of our duties as auditors. Equally, there remains a risk of the non-detection of fraud which could involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. The audit procedures carried out are designed to detect material misstatements within the financial statements, and as such we take no responsibility for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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.

Dean Osborne (Senior Statutory Auditor)

for and on behalf of Clay Ratnage Daffin & Co Limited

Chartered Accountants and

Statutory Auditors

Suite D, The Business Centre

Faringdon Avenue

Romford

Essex

RM3 8EN

28 July 2026

TURNOVER

3

17,358,433

1,738,076

19,096,509

Cost of sales

(12,763,894

)

(752,063

)

(13,515,957

)

GROSS PROFIT

4,594,539

986,013

5,580,552

Administrative expenses

(4,082,535

)

(469,029

)

(4,551,564

)

512,004

516,984

1,028,988

Other operating income

4

2,490

7,086

9,576

OPERATING PROFIT

6

514,494

524,070

1,038,564

Interest receivable and similar income

10,631

-

10,631

Interest payable and similar expenses

8

(50,913

)

-

(50,913

)

PROFIT BEFORE TAXATION

474,212

524,070

998,282

Tax on profit

9

(73,128

)

(181,880

)

(255,008

)

PROFIT FOR THE FINANCIAL YEAR

401,084

342,190

743,274

TURNOVER

3

17,401,030

2,063,949

19,464,979

Cost of sales

(12,735,892

)

(601,063

)

(13,336,955

)

GROSS PROFIT

4,665,138

1,462,886

6,128,024

Administrative expenses

(3,781,527

)

(1,326,144

)

(5,107,671

)

OPERATING PROFIT

6

883,611

136,742

1,020,353

Interest receivable and similar income

18,169

-

18,169

Interest payable and similar expenses

8

(44,904

)

-

(44,904

)

PROFIT BEFORE TAXATION

856,876

136,742

993,618

Tax on profit

9

(218,921

)

(34,185

)

(253,106

)

PROFIT FOR THE FINANCIAL YEAR

637,955

102,557

740,512

FIXED ASSETS

Intangible assets

11

7,534

-

Tangible assets

12

2,474,175

2,815,263

2,481,709

2,815,263

CURRENT ASSETS

Stocks

13

913,279

782,319

Debtors

14

2,266,799

3,045,958

Cash at bank and in hand

604,389

1,288,524

3,784,467

5,116,801

CREDITORS

Amounts falling due within one year

15

1,905,916

4,186,266

NET CURRENT ASSETS

1,878,551

930,535

TOTAL ASSETS LESS CURRENT LIABILITIES

4,360,260

3,745,798

CREDITORS

Amounts falling due after more than one year

16

-

(10,916

)

PROVISIONS FOR LIABILITIES

20

(537,717

)

(531,516

)

NET ASSETS

3,822,543

3,203,366

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

3,822,443

3,203,266

3,822,543

3,203,366

The financial statements were approved by the director and authorised for issue on 28 July 2026 and were signed by:

D T A Hunn - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100

2,590,407

2,590,507

Changes in equity

Dividends on equity shares

-

(127,653

)

(127,653

)

Total comprehensive income

-

740,512

740,512

Balance at 31 December 2024

100

3,203,266

3,203,366

Changes in equity

Dividends on equity shares

-

(124,097

)

(124,097

)

Total comprehensive income

-

743,274

743,274

Balance at 31 December 2025

100

3,822,443

3,822,543

1.	STATUTORY INFORMATION

Scrapco Metal Recycling 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 (£).

The principal place of business is 2a Landau Way, Erith, DA8 2LF.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial information in the accounts is rounded to the nearest £1.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d).

This information is included in the consolidated financial statements of Hunn Group Limited as at 31 December 2025 and these financial statements may be obtained from the registered office.

Critical accounting judgements and key sources of estimation uncertainty

The directors have made key assumptions on the depreciation rate of fixed assets and amortisation period of goodwill. They have also estimated the closing stock value at the year end of £913,279 (2024 - £782,319).

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Number plates is being amortised evenly over its estimated useful life of ten years.

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.

Property

-

Straight line over 15 years

Plant and machinery

-

25% on reducing balance

Furniture, fittings and equipment

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the selling price less margin to account for the cost of processing materials as well as the purchase price.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's Balance sheet 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, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

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.

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

Pension costs and other post-retirement benefits

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

Interest income

Interest income is recognised in profit or loss using the effective interest method.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

15,386,342

16,226,268

Europe

1,504,657

1,297,352

Rest of the world

2,205,510

1,941,359

19,096,509

19,464,979

4.	OTHER OPERATING INCOME

2025

2024

£

£

Plant hire

9,576

-

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,698,730

1,762,098

Social security costs

175,675

157,547

Other pension costs

33,521

33,738

1,907,926

1,953,383

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

2025

2024

Directors

3

3

Administration

8

6

Staff

41

46

52

55

2025

2024

£

£

Directors' remuneration

16,050

15,685

Directors' pension contributions to money purchase schemes

294

-

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

8,000

14,614

Other operating leases

159,518

159,518

Depreciation - owned assets

779,174

817,518

Depreciation - assets on hire purchase contracts

27,188

98,500

Profit on disposal of fixed assets

(508,626

)

(64,330

)

Number plates amortisation

837

-

7.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

15,685

15,225

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

24,604

27,271

Other interest payable

21,714

-

Hire purchase

4,595

17,633

50,913

44,904

9.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

248,807

209,434

Deferred tax

6,201

43,672

Tax on profit

255,008

253,106

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

998,282

993,618

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

249,571

248,405

Effects of:

Expenses not deductible for tax purposes

2,567

1,997

Capital allowances in excess of depreciation

(55,869

)

(40,986

)

(Decrease)/increase in pension fund creditor leading to a (decrease)/increase in tax

(238

)

18

Deferred tax timing differences leading to an increase in taxation

6,201

43,672

Capital gains

52,776

-

year leading to a decrease in

Total tax charge

255,008

253,106