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Registration number: 00159061

Bright Steels Limited
Annual Report and Financial Statements
For The Year Ended 31 December 2025

Bright Steels Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4 to 5
Independent Auditor's Report | 6 to 8
Statement of Income and Retained Earnings | 9
Balance Sheet | 10
Statement of Cash Flows | 11
Notes to the Financial Statements | 12 to 20

Bright Steels Limited

Company Information

Directors | Mr L.P. Chouler Mrs M.R.C. Pratt

Registered office | Norton Works Norton Malton North Yorkshire YO17 9BD

Auditors | Farrar Smith Limited Chartered Accountants & Statutory Auditors Unit 11, Fusion Court Aberford Road Garforth Leeds LS25 2GH

Bright Steels Limited

Strategic Report For The Year Ended 31 December 2025

The directors present their strategic report for the year ended 31 December 2025.

Fair review of the business

2025 proved to be a particularly challenging year for the business, with demand remaining subdued across both UK and international markets. Reported turnover reduced from £18.187m to £15.496m, with a loss before tax reported of £604,008, (2024 £387,305 profit). Gross margin decreased from £4,592,074 to £3,367,751, a deterioration from 25.25% to 21.73%
The downturn was especially evident within the stockholding industry, where reduced activity levels and cautious purchasing behaviour impacted overall market demand.
Despite these difficult trading conditions, the Company achieved encouraging sales to Original Equipment Manufacturers (OEMs). This sector has provided greater stability and continues to present attractive opportunities, giving confidence that this positive momentum will carry forward into 2026.
The introduction of tariffs and quotas in North American markets created additional challenges during the year. These measures disrupted established trade patterns, affected supply chain dynamics, and led to uncertainty within key export markets, resulting in a degree of volatility in normal trading flows.
Profit margins came under increasing pressure throughout the year as inflation continued to drive higher operating costs. The Company remains committed to investing in its employees, recognising that a skilled and engaged workforce is fundamental to long-term success. However, significant increases in statutory wage requirements materially increased labour costs. In addition, higher employer National Insurance contributions further added to the overall cost burden.
The UK manufacturing sector also continues to be disadvantaged by persistently high energy prices. Compared with many international competitors, elevated energy costs remain a significant challenge, placing additional pressure on domestic manufacturers and impacting competitiveness in both home and export markets.
Overall, while 2025 presented a range of economic and operational challenges, the Company remains focused on strengthening its position through continued investment in equipment, its people, developing OEM relationships, and pursuing opportunities for sustainable growth in 2026 and beyond.

Principal risks and uncertainties

The management of the business and the nature of the market area where the company operates are subject to a number of risks.
The directors are of the opinion that a thorough risk management process is in place which involves the formal review of the risks identified.

Financial risk management
The company's operations expose it to a variety of financial business risks including the effects of changes in interest rates, foreign currency exchange rates, credit risk and liquidity risk, which are offset by a robust system of company research and analysis, credit insurance and foreign exchange management.
The directors believe that the company is well placed to manage its business risk successfully despite the current uncertain economic outlook.

The main risks arising from the company's financial instruments can be analysed as follows:
Foreign currency risk
The company is exposed in its trading operations to the risk of changes in foreign currency exchange rates. As the company buys and sells goods in foreign currencies the overall risk is minimised and controlled by the use of non speculative foreign exchange contracts. The main foreign currencies in which the company operates are the Euro, the US dollar and the Canadian dollar.

Bright Steels Limited

Strategic Report For The Year Ended 31 December 2025 (continued)

Credit risk
The company's principal financial assets are bank balances, cash, and trade debtors, which represent the company's maximum exposure to credit risk in relation to financial assets.
The company's credit risk is primarily attributable to it's trade debtors. Credit risk is managed by monitoring the aggregate amount and duration of exposure to any one customer depending upon their credit rating plus credit insurance. The amounts presented in the balance sheet are net of doubtful debts, estimated by the company's management based on prior experience and their assessment of the current economic environment.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit ratings agencies. The company has no significant concentration of credit risk, with exposure spread over a number of counterparties and customers.

Approved and authorised by the Board on 29 July 2026 and signed on its behalf by:

......................................... Mr L.P. Chouler Director

Bright Steels Limited

Directors' Report For The Year Ended 31 December 2025

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

Principal activity

The principal activity of the company is the production, stockholding and sale of bright drawn steel bar.

Directors of the company

The directors who held office during the year were as follows:

Mr L.P. Chouler

Mrs M.R.C. Pratt

Dividends

The total distribution of dividends for the year ended 31 December 2025 was £198,880 (2024: £405,738).

Information included in the Strategic Report

Certain information has not been included in the director's report because it has been included in the strategic report instead under s.414c(11) Companies Act 2006. The information shown in the strategic report relates to the business review, principal risks and uncertainties and key performance indicators.

Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• | select suitable accounting policies and apply them consistently;

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

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 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.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Farrar Smith Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Bright Steels Limited

Directors' Report For The Year Ended 31 December 2025 (continued)

Approved and authorised by the Board on 29 July 2026 and signed on its behalf by:

Mr L.P. Chouler Director

Bright Steels Limited

Independent Auditor's Report to the Members of Bright Steels Limited

Opinion

We have audited the financial statements of Bright Steels Limited (the 'company') for the year ended 31 December 2025, which comprise the Statement of Income and Retained Earnings, Balance Sheet, Statement of Cash Flows, 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 loss for the year then ended;
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• | have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Bright Steels Limited

Independent Auditor's Report to the Members of Bright Steels Limited (continued)

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 directors' remuneration specified by law are not made; or
• | we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risk of material misstatements in respect of irregularities, including fraud and non compliance with laws and regulations, we considered the following:

• | The nature of the industry and sector. Control environment and business performance including the design of the remuneration policies, bonus levels and performance targets.
• | Enquiry of management and those charged with governance about their own identification and assessment of the risks of irregularities and whether such irregularities may occur as a result of fraud or error.
• | Detecting and responding to the risk of fraud and whether management have knowledge of any actual, suspected or alleged fraud.
• | When identifying and assessing the risks of material misstatement due to fraud, there is a presumption that there are risks of fraud in revenue recognition, therefore an evaluation of which type of revenue and transactions or assertions give rise to such risks.

Bright Steels Limited

Independent Auditor's Report to the Members of Bright Steels Limited (continued)

• | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
• | In addressing the risk of fraud through management override of controls, 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.
| Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. In assessing the potential risks of material misstatement we obtained an understanding of the Company's operations, including the nature of it's revenue sources, the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in material misstatement. We did not identify any matters relating to non compliance with laws and regulations relating to fraud.

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

Use of our report
This report is made solely to the 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 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.

......................................
Julie Konczyk BFP FCA FCCA (Senior Statutory Auditor)
For and on behalf of Farrar Smith Limited, Statutory Auditor
Unit 11, Fusion Court
Aberford Road
Garforth
Leeds
LS25 2GH

29 July 2026

Bright Steels Limited

Profit and Loss Account and Statement of Retained Earnings
For The Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Turnover | 3 |  | 15,495,605 |  | 18,186,974
Cost of sales |  |  | (12,126,100) |  | (13,594,900)
Gross profit |  |  | 3,369,505 |  | 4,592,074
Distribution costs |  |  | (1,917,083) |  | (2,046,311)
Administrative expenses |  |  | (2,161,740) |  | (2,281,593)
Other operating income | 4 |  | 91,099 |  | 103,960
Operating (loss)/profit | 6 |  | (618,219) |  | 368,130
Interest receivable and similar income | 7 | 18,211 |  | 22,841 |
Interest payable and similar charges | 8 | (4,000) |  | (3,666) |
|  |  | 14,211 |  | 19,175
(Loss)/profit before tax |  |  | (604,008) |  | 387,305
Taxation | 12 |  | 137,507 |  | (124,626)
(Loss)/profit for the financial year |  |  | (466,501) |  | 262,679
Retained earnings brought forward |  |  | 12,787,257 |  | 12,930,316
Dividends paid |  |  | (198,880) |  | (405,738)
Retained earnings carried forward |  |  | 12,121,876 |  | 12,787,257

Bright Steels Limited

(Registration number: 00159061)
Balance Sheet as at 31 December 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |  |  |
Tangible assets | 13 |  | 2,641,819 |  | 2,784,259
Investment property | 14 |  | 2,200,000 |  | 2,200,000
Other financial assets | 15 |  | 91,838 |  | 91,838
|  |  | 4,933,657 |  | 5,076,097
Current assets |  |  |  |  |
Stocks | 16 | 6,283,728 |  | 5,862,827 |
Debtors | 17 | 3,788,686 |  | 4,230,285 |
Cash at bank and in hand |  | 960,605 |  | 1,183,721 |
|  | 11,033,019 |  | 11,276,833 |
Creditors: Amounts falling due within one year | 19 | (3,034,582) |  | (2,617,948) |
Net current assets |  |  | 7,998,437 |  | 8,658,885
Total assets less current liabilities |  |  | 12,932,094 |  | 13,734,982
Provisions for liabilities | 20 |  | (786,218) |  | (923,725)
Net assets |  |  | 12,145,876 |  | 12,811,257
Capital and reserves |  |  |  |  |
Called up share capital |  | 20,025 |  | 20,025 |
Capital redemption reserve | 23 | 3,975 |  | 3,975 |
Profit and loss account | 23 | 12,121,876 |  | 12,787,257 |
Total equity |  |  | 12,145,876 |  | 12,811,257

Approved and authorised by the Board on 29 July 2026 and signed on its behalf by:

......................................... Mrs M.R.C. Pratt Director

Bright Steels Limited

Statement of Cash Flows For The Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
(Loss)/profit for the year |  | (466,501) | 262,679
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 6 | 316,059 | 277,944
Profit on disposal of tangible assets | 5 | (2,617) | (3,200)
Finance income | 7 | (18,211) | (22,841)
Finance costs | 8 | 4,000 | 3,666
Income tax expense | 12 | (137,507) | 124,626
|  | (304,777) | 642,874
Working capital adjustments |  |  |
(Increase)/decrease in stocks | 16 | (420,901) | 1,205,688
Decrease/(increase) in trade debtors | 17 | 357,926 | (93,423)
Increase/(decrease) in trade creditors | 19 | 416,634 | (676,923)
Cash generated from operations |  | 48,882 | 1,078,216
Income taxes received/(paid) | 12 | 83,673 | (8,775)
Net cash flow from operating activities |  | 132,555 | 1,069,441
Cash flows from investing activities |  |  |
Interest received | 7 | 18,211 | 22,841
Acquisitions of tangible assets |  | (207,685) | (1,052,172)
Proceeds from sale of tangible assets |  | 36,683 | 3,200
Net cash flows from investing activities |  | (152,791) | (1,026,131)
Cash flows from financing activities |  |  |
Interest paid | 8 | (4,000) | (3,666)
Dividends paid | 24 | (198,880) | (405,738)
Net cash flows from financing activities |  | (202,880) | (409,404)
Net decrease in cash and cash equivalents |  | (223,116) | (366,094)
Cash and cash equivalents at 1 January |  | 1,183,721 | 1,549,815
Cash and cash equivalents at 31 December |  | 960,605 | 1,183,721

Bright Steels Limited

Notes to the Financial Statements For The Year Ended 31 December 2025

1 | General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Norton Works
Norton
Malton
North Yorkshire
YO17 9BD

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The presentational and functional currency is the British Pound Sterling (£).

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered the funding facilities available to the Company along with the forecast trading performance for at least twelve months following the approval of these financial statements and continue to adopt the going concern basis in the preparation of these financial statements.

Judgements

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the anticipated actual results.The key areas requiring the use of accounting estimates and assumptions are addressed below,

Key sources of estimation uncertainty

The Directors have taken judgements and estimates and applied them consistently with regard to accounting estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities. The items in the financial statements where these judgements and estimates have been made include the useful economic lives and residual value of fixed assets, the fair value of investments, the recoverability of trade and other debtors and the valuation of inventories. Whilst every attempt is made to ensure that the estimates and provisions are as accurate as possible, there remains a risk that they will not match the ultimate outcomes.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the company. Turnover is not disclosed by class or market since in the opinion of the directors this would be prejudicial to the interests of the company.

Bright Steels Limited

Notes to the Financial Statements For The Year Ended 31 December 2025 (continued)

2 | Accounting policies (continued)

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Land and buildings | 2% straight line
Furniture, fittings and equipment | 10% - 25% straight line
Motor vehicles | 20% - 25% straight line
Other property, plant & equipment | 5% - 10% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Bright Steels Limited

Notes to the Financial Statements For The Year Ended 31 December 2025 (continued)

2 | Accounting policies (continued)

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3 | Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Sale of goods | 15,495,605 | 18,186,974

4 | Other operating income

The analysis of the company's other operating income for the year is as follows:

| 2025 £ | 2024 £
Rent received | 87,734 | 81,942
Sundry income | 3,365 | 22,018
| 91,099 | 103,960

Bright Steels Limited

Notes to the Financial Statements For The Year Ended 31 December 2025 (continued)

5 | Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

| 2025 £ | 2024 £
Gain/loss on disposal of property, plant and equipment | 2,617 | 3,200

6 | Operating (loss)/profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 316,059 | 277,944
Foreign exchange losses/(gains) | 46,677 | (71,339)
Profit on disposal of property, plant and equipment | (2,617) | (3,200)

7 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 18,211 | 22,841

8 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest expense on other finance liabilities | 4,000 | 3,666

9 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 2,804,637 | 3,089,843
Social security costs | 374,914 | 348,439
Pension and related costs, defined contribution scheme | 294,476 | 305,506
| 3,474,027 | 3,743,788

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Production | 55 | 53
Administration and support | 14 | 13
Sales, marketing and distribution | 10 | 8
| 79 | 74

Bright Steels Limited

Notes to the Financial Statements For The Year Ended 31 December 2025 (continued)

10 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 389,013 | 572,100
Contributions paid to money purchase schemes | 20,303 | 21,822
| 409,316 | 593,922

During the year the number of directors who were receiving benefits and share incentives was as follows:

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 1 | 1

In respect of the highest paid director:

| 2025 £ | 2024 £
Remuneration | 264,111 | 372,597

11 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 17,000 | 17,000

12 | Taxation

Tax charged/(credited) in the income statement

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | - | (83,673)
UK corporation tax adjustment to prior periods | - | 8,775
| - | (74,898)
Deferred taxation |  |
Arising from origination and reversal of timing differences | (137,507) | 199,524
Tax (receipt)/expense in the income statement | (137,507) | 124,626

Bright Steels Limited

Notes to the Financial Statements For The Year Ended 31 December 2025 (continued)

12 | Taxation (continued)

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
(Loss)/profit before tax | (604,008) | 387,305
Corporation tax at standard rate | (151,002) | 96,826
Effect of expenses not deductible in determining taxable profit (tax loss) | 13,495 | 13,977
Deferred tax expense relating to changes in tax rates or laws | - | 5,048
Tax increase from effect of capital allowances and depreciation | - | 8,775
Total tax (credit)/charge | (137,507) | 124,626

13 | Tangible assets

| Land and buildings £ | Furniture, fittings and equipment £ | Motor vehicles £ | Other property, plant and equipment £ | Total £
Cost or valuation
At 1 January 2025 | 2,457,186 | 551,732 | 517,642 | 7,373,957 | 10,900,517
Additions | - | - | 140,200 | 67,485 | 207,685
Disposals | - | - | (91,080) | - | (91,080)
At 31 December 2025 | 2,457,186 | 551,732 | 566,762 | 7,441,442 | 11,017,122
Depreciation
At 1 January 2025 | 1,778,781 | 502,458 | 294,732 | 5,540,287 | 8,116,258
Charge for the year | 44,862 | 32,500 | 79,779 | 158,918 | 316,059
Eliminated on disposal | - | - | (57,014) | - | (57,014)
At 31 December 2025 | 1,823,643 | 534,958 | 317,497 | 5,699,205 | 8,375,303
Carrying amount
At 31 December 2025 | 633,543 | 16,774 | 249,265 | 1,742,237 | 2,641,819
At 31 December 2024 | 678,405 | 49,274 | 222,910 | 1,833,670 | 2,784,259

Included within the net book value of land and buildings above is £633,543 (2024 - £678,405) in respect of freehold land and buildings.

Bright Steels Limited

Notes to the Financial Statements For The Year Ended 31 December 2025 (continued)

14 | Investment properties

| 2025 £
At 1 January | 2,200,000
At 31 December | 2,200,000

The investment properties were last valued by an independent third party valuer as of 31 December 2021. The directors have reviewed similar properties in the area and other available data as a basis for determining a suitable fair value at the balance sheet date. In the opinion of the directors, this value remains appropriate for the current year.
On a depreciated historic cost basis the investment properties would have a net book value of £25,458. (2024 £28,440)

15 | Other financial assets (current and non-current)

| 2025 £ | 2024 £
Non-current financial assets
Financial assets at cost less impairment | 91,838 | 91,838

16 | Stocks

| 2025 £ | 2024 £
Raw materials and consumables | 2,860,617 | 2,042,188
Finished goods and goods for resale | 3,423,111 | 3,820,639
| 6,283,728 | 5,862,827

17 | Debtors

Due within one year | Note | 2025 £ | 2024 £
Trade debtors |  | 3,518,995 | 3,856,323
Other debtors |  | 74,488 | 88,625
Prepayments |  | 195,203 | 201,664
Corporation tax repayable | 12 | - | 83,673
|  | 3,788,686 | 4,230,285

18 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash at bank | 960,605 | 1,183,721

Bright Steels Limited

Notes to the Financial Statements For The Year Ended 31 December 2025 (continued)

19 | Creditors

| 2025 £ | 2024 £
Due within one year |  |
Trade creditors | 2,543,093 | 1,786,661
Social security and other taxes | 137,392 | 305,954
Other creditors | 100,000 | 100,000
Accrued expenses | 254,097 | 425,333
| 3,034,582 | 2,617,948

20 | Provisions for liabilities

| Deferred tax £
At 1 January 2025 | 923,725
Increase (decrease) in existing provisions | (137,507)
At 31 December 2025 | 786,218

21 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and related costs and amounted to £294,476 (2024 - £305,506).

22 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary of £1 each | 20,025 | 20,025 | 20,025 | 20,025

23 | Reserves

Profit and Loss Reserves represent all current and prior period retained profits and losses. £1,577,335 of the Profit and Loss reserves at 31 December 2025 (2024: £1,577,335) is non-distributable. The non-distributable element of the Profit and Loss reserves relate to investment property revaluation gains, net of related deferred taxation.

Capital Redemption Reserve represents the nominal value of share capital bought back by the company.

Bright Steels Limited

Notes to the Financial Statements For The Year Ended 31 December 2025 (continued)

24 | Dividends

| 2025 | 2024
| £ | £
Final dividend | - | 67,684
Interim dividends | 198,880 | 338,054
| 198,880 | 405,738

25 | Commitments

Capital commitments

At the year end the Company had capital commitments, contracted for but not provided in the financial statements of £21,000. (2024 £39,900).

26 | Related party transactions

There were no related party transactions requiring disclosure under FRS 102 Section 33.