Tamworth Steel Stockholders Limited - Limited company accounts 25.1

REGISTERED NUMBER: 01109834 (England and Wales)

Tamworth Steel Stockholders Limited

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 March 2026

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

J E V Ratledge

O Ratledge

SECRETARY:

J E V Ratledge

REGISTERED OFFICE:

Gagarin

Lichfield Road Industrial Estate

Tamworth

Staffordshire

B79 7TA

REGISTERED NUMBER:

01109834 (England and Wales)

AUDITORS:

TC Group

Statutory Auditor

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

The directors present their strategic report of the company and the group for the year ended 31 March 2026.

REVIEW OF BUSINESS

The directors are satisfied overall with the results for the year, given the challenging economic environment in the period under review. Turnover for the year has decreased by 8% to £17.8m (2025 - £19.3m) due to a reduction in overall demand. The gross margin has also decreased slightly to 31.2% (2025 - 32.2%), reflecting competitive trading conditions.

Profit before tax reduced to £1.4m (2025 - £1.9m) with the Group continuing to keep strict control of overhead costs, whilst continuing to reinvest in the structure of the business. Net cash inflow of the business was £432k (2025 - £496k).

The directors consider that the state of affairs of the group at 31 March 2026 is satisfactory and the Group is well placed to cope with any future risks and uncertainties affecting the sector.

PRINCIPAL RISKS AND UNCERTAINTIES

As for many businesses of our size, the business environment in which we operate continues to be challenging. The Group has had to contend with high interest rates and inflation, and increased payroll pressure as a result of the increase in employers national insurance and the national minimum wage. Energy costs continue to rise together with transport costs. Whilst the Group is well capitalised to absorb these costs, they continue to affect the gross margin. Tariffs and quotas are affecting supply chains, but the Group has strong supply chains to be able to deal with this. The introduction of Carbon Border Adjustment Mechanism (CBAM) reporting is likely to add further challenges and red tape to business processes.

The directors will continue to reinvest in the business, maintaining a strong balance sheet and cash balances and are confident that the Group can meet future challenges.

ON BEHALF OF THE BOARD:

J E V Ratledge - Director

28 August 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2026.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of steel stockholders and fabrication/machining services.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2026.

DIRECTORS

J E V Ratledge has held office during the whole of the period from 1 April 2025 to the date of this report.

Other changes in directors holding office are as follows:

J W Ratledge - deceased 17 November 2025

O Ratledge - appointed 27 November 2025

FINANCIAL INSTRUMENTS

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director 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 group's auditors are aware of that information.

AUDITORS

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J E V Ratledge - Director

28 August 2026

Opinion

We have audited the financial statements of Tamworth Steel Stockholders Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2026 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 March 2026 and of the group's 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 group 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 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 group's and the parent 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have 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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

- we identified areas of laws and regulations that could reasonably be expected to have a material effect on the

financial statements from our general commercial and sector experience, and through discussion with the directors

and other management (as required by auditing standards), and discussed with the directors and other

management the policies and procedures regarding compliance with laws and regulations;

- we considered the legal and regulatory frameworks directly applicable to the financial statements reporting

framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

- we considered the nature of the industry, the control environment and business performance, including the key

drivers for management’s remuneration;

- we communicated identified laws and regulations throughout our team and remained alert to any indications of

non-compliance throughout the audit, also all areas where fraud might occur in the financial statements and how;

- we considered the procedures and controls that the company has established to address risks identified, or that

otherwise prevent, deter and detect fraud; and how senior management monitors these programmes and controls;

- we considered how the directors and management respond to risks of fraud and whether they have knowledge of

any actual, suspected or alleged fraud;

- we performed detailed analytical procedures to identify and unusual or unexpected relationships that may indicate

risks of material misstatement due to fraud;

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance 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.

Stephen Butler BA FCA (Senior Statutory Auditor)

for and on behalf of TC Group

Statutory Auditor

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

28 August 2026

TURNOVER

3

17,772,215

19,323,057

Cost of sales

12,215,669

13,099,619

GROSS PROFIT

5,556,546

6,223,438

Administrative expenses

4,584,805

4,702,135

971,741

1,521,303

Other operating income

4

114,445

106,947

OPERATING PROFIT

6

1,086,186

1,628,250

Interest receivable and similar income

7

280,882

247,824

1,367,068

1,876,074

Interest payable and similar expenses

8

20,595

52,534

PROFIT BEFORE TAXATION

1,346,473

1,823,540

Tax on profit

9

324,868

478,168

PROFIT FOR THE FINANCIAL YEAR

1,021,605

1,345,372

Profit attributable to:

Owners of the parent

1,021,605

1,345,372

PROFIT FOR THE YEAR

1,021,605

1,345,372

OTHER COMPREHENSIVE INCOME

Company repurchase of shares

-

(1,299,900

)

Income tax relating to other comprehensive
income

-

OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

-

(1,299,900

)

TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,021,605

45,472

Total comprehensive income attributable to:

Owners of the parent

1,021,605

45,472

FIXED ASSETS

Intangible assets

12

99,319

161,670

Tangible assets

13

6,716,312

6,632,555

Investments

14

-

6,815,631

6,794,225

CURRENT ASSETS

Stocks

15

3,260,814

3,373,063

Debtors

16

4,098,423

4,030,296

Cash at bank and in hand

12,490,295

12,056,479

19,849,532

19,459,838

CREDITORS

Amounts falling due within one year

17

4,530,605

5,154,688

NET CURRENT ASSETS

15,318,927

14,305,150

TOTAL ASSETS LESS CURRENT
LIABILITIES

22,134,558

21,099,375

PROVISIONS FOR LIABILITIES

21

275,742

262,164

NET ASSETS

21,858,816

20,837,211

CAPITAL AND RESERVES

Called up share capital

22

900

Capital redemption reserve

23

100

Other reserves

23

2,000

Retained earnings

23

21,855,816

20,834,211

SHAREHOLDERS' FUNDS

21,858,816

20,837,211

The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2026 and were signed on its behalf by:

J E V Ratledge - Director

FIXED ASSETS

Intangible assets

12

-

Tangible assets

13

4,950,695

4,771,844

Investments

14

5,018,875

5,082,051

9,969,570

9,853,895

CURRENT ASSETS

Stocks

15

1,307,995

1,274,996

Debtors

16

2,274,597

2,131,905

Cash at bank and in hand

4,413,760

4,064,624

7,996,352

7,471,525

CREDITORS

Amounts falling due within one year

17

5,944,641

6,081,229

NET CURRENT ASSETS

2,051,711

1,390,296

TOTAL ASSETS LESS CURRENT
LIABILITIES

12,021,281

11,244,191

PROVISIONS FOR LIABILITIES

21

160,015

111,104

NET ASSETS

11,861,266

11,133,087

CAPITAL AND RESERVES

Called up share capital

22

900

Capital redemption reserve

23

100

Other reserves

23

2,000

Retained earnings

23

11,858,266

11,130,087

SHAREHOLDERS' FUNDS

11,861,266

11,133,087

Company's profit for the financial year

728,179

498,317

The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2026 and were signed on its behalf by:

J E V Ratledge - Director

Called up

Capital

share

Retained

redemption

Other

Total

capital

earnings

reserve

reserves

equity

£

Balance at 1 April 2024

1,000

20,863,839

-

2,000

20,866,839

Changes in equity

Issue of share capital

(100

)

-

(100

)

Dividends

-

(75,000

)

-

(75,000

)

Total comprehensive income

-

45,372

100

-

45,472

Balance at 31 March 2025

900

20,834,211

100

2,000

20,837,211

Changes in equity

Total comprehensive income

-

1,021,605

-

1,021,605

Balance at 31 March 2026

900

21,855,816

100

2,000

21,858,816

Called up

Capital

share

Retained

redemption

Other

Total

capital

earnings

reserve

reserves

equity

£

Balance at 1 April 2024

1,000

12,006,770

-

2,000

12,009,770

Changes in equity

Issue of share capital

(100

)

-

(100

)

Dividends

-

(75,000

)

-

(75,000

)

Total comprehensive income

-

(801,683

)

100

-

(801,583

)

Balance at 31 March 2025

900

11,130,087

100

2,000

11,133,087

Changes in equity

Total comprehensive income

-

728,179

-

728,179

Balance at 31 March 2026

900

11,858,266

100

2,000

11,861,266

Cash flows from operating activities

Cash generated from operations

1

1,312,518

2,739,716

Interest paid

(20,595

)

(52,534

)

Tax paid

(228,577

)

(587,517

)

Net cash from operating activities

1,063,346

2,099,665

Cash flows from investing activities

Purchase of tangible fixed assets

(440,475

)

(689,723

)

Sale of tangible fixed assets

5,129

41,500

Interest received

280,882

247,824

Net cash from investing activities

(154,464

)

(400,399

)

Cash flows from financing activities

Capital repayments in year

(12,021

)

(13,226

)

Amount introduced by directors

281,177

355,000

Amount withdrawn by directors

(746,482

)

(170,000

)

Company repurchase of shares

-

(1,300,000

)

Equity dividends paid

-

(75,000

)

Net cash from financing activities

(477,326

)

(1,203,226

)

Increase in cash and cash equivalents

431,556

496,040

Cash and cash equivalents at beginning
of year

2

12,056,479

11,560,439

Cash and cash equivalents at end of year

2

12,488,035

12,056,479

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

2026

2025

£

Profit before taxation

1,346,473

1,823,540

Depreciation charges

399,191

395,813

Profit on disposal of fixed assets

(1,681

)

(8,041

)

Impairment of tangible fixed assets

16,431

-

Finance costs

20,595

52,534

Finance income

(280,882

)

(247,824

)

1,500,127

2,016,022

Decrease in stocks

112,249

564,550

(Increase)/decrease in trade and other debtors

(146,068

)

686,198

Decrease in trade and other creditors

(153,790

)

(527,054

)

Cash generated from operations

1,312,518

2,739,716

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2026

31.3.26

1.4.25

£

Cash and cash equivalents

12,490,295

12,056,479

Bank overdrafts

(2,260

)

-

12,488,035

12,056,479

Year ended 31 March 2025

31.3.25

1.4.24

£

Cash and cash equivalents

12,056,479

11,560,439

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

Net cash

Cash at bank and in hand

12,056,479

433,816

12,490,295

Bank overdrafts

-

(2,260

)

(2,260

)

12,056,479

431,556

12,488,035

Debt

Finance leases

(12,021

)

12,021

-

(12,021

)

12,021

-

Total

12,044,458

443,577

12,488,035

1.	STATUTORY INFORMATION

Tamworth Steel Stockholders 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 General Information page.

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

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.

Going concern

At the time of approval of these financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In making this assessment the directors are required to consider a period of at least 12 months from the date of approval of the financial statements.

Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issues and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated financial statements incorporate those of Tamworth Steel Stockholders Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are also incorporated from the date that control passes.

All financial statements are made up to 31 March 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover

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

Goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected useful life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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.

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.

Freehold property

- 2% on cost

Improvements on property

- 20% on cost

Plant and machinery

- 20% on reducing balance, 20% on cost, 15% on reducing balance

Fixtures and fittings

- 25% on cost, 20% on cost and 15% on reducing balance

Motor vehicles

- 33% on cost, 25% on reducing balance and 25% on cost

Computer equipment

- 20% on cost

Tangible assets are initially measured at cost and subsequently measured at cost less depreciation and impairment.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss

All group properties are primarily used as trading assets. Freehold properties are carried at cost or deemed cost less accumulated depreciation and impairment. Certain properties were previously revalued prior to the transition to FRS 102 and the resulting carrying values were adopted as deemed cost on transition. The directors perform annual impairment reviews in accordance with FRS 102 to ensure that the recoverable amount is not lower than the carrying value.

Where lettings to external tenants occur they are ancillary to the trading activities at the properties affected. Accordingly, the directors do not consider it appropriate to partially reclassify any properties on the balance sheet as investment properties on the grounds of cost, materiality and practicality.

Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risk specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.

Stock held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment reversal is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risk and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loan, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the preset value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Pension costs and other post-retirement benefits

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

Judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Property and stock assets valuation

Property assets are carried at cost less depreciation. Certain properties were previously revalued and the revalued amounts were adopted as deemed cost on transition to FRS 102. The determination of carrying values involves judgement by the directors, including consideration of available market information and periodic assessments of impairment indicators.

Inventories are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast customer demand, the promotional, competitive and economic environment and inventory loss trends.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2026

2025

£

Steel stockholding

11,469,422

11,032,090

Steel fabrication/machining

1,835,416

2,977,389

Surgical/industrial instrument

1,350,627

1,652,391

Fast steel stockholding

2,765,184

3,228,626

Other fabricated products

351,566

432,561

17,772,215

19,323,057

4.	OTHER OPERATING INCOME

2026

2025

£

Rents received

114,445

106,947

5.	EMPLOYEES AND DIRECTORS

2026

2025

£

Wages and salaries

4,198,125

4,679,949

Social security costs

516,715

456,810

Other pension costs

184,141

135,419

4,898,981

5,272,178

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

2026

2025

Production staff

76

79

Office and management

32

Administration staff

9

117

120

The average number of employees by undertakings that were proportionately consolidated during the year was 117 (2025 - 120 ) .

2026

2025

£

Directors' remuneration

332,930

607,883

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

Information regarding the highest paid director is as follows:

2026

2025

£

Emoluments etc

316,247

591,247

6.	OPERATING PROFIT

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

2026

2025

£

Other operating leases

128,431

141,011

Depreciation - owned assets

324,153

261,603

Depreciation - assets on hire purchase contracts

12,686

16,018

Profit on disposal of fixed assets

(1,681

)

(8,041

)

Goodwill amortisation

62,351

118,192

Auditors' remuneration

69,109

49,691

Auditors' remuneration for non audit work

4,837

14,809

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2026

2025

£

Deposit account interest

273,382

247,824

Corporation tax interest

7,500

-

280,882

247,824

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2026

2025

£

Interest on taxation

-

7,046

Mortgage

20,595

45,488

20,595

52,534

9.

TAXATION

Analysis of the tax charge

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

2026

2025

£

Current tax:

UK corporation tax

311,290

411,668

Corporation tax prior year

-

(196

)

Total current tax

311,290

411,472

Deferred tax

13,578

66,696

Tax on profit

324,868

478,168

Reconciliation of total tax charge included in profit and loss

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

2026

2025

£

Profit before tax

1,346,473

1,823,540

Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2025 - 25 %)

336,618

455,885

Effects of:

Expenses not deductible for tax purposes

(11,605

)

21,182

Capital allowances in excess of depreciation

(13,348

)

(94,607

)

Adjustments to tax charge in respect of previous periods

-

196

Other consolidation adjustments

(375

)

28,816

Deferred tax movements

13,578

66,696

Total tax charge

324,868

478,168

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 March 2026.

2025

Gross

Tax

Net

£

Company repurchase of shares

(1,299,900

)

-

(1,299,900

)

10.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

11.

DIVIDENDS

2026

2025

£

Ordinary shares of £1 each

Interim

-

75,000

12.	INTANGIBLE FIXED ASSETS

Group

Goodwill

£

COST

At 1 April 2025

and 31 March 2026

1,958,508

AMORTISATION

At 1 April 2025

1,796,838

Amortisation for year

62,351

At 31 March 2026

1,859,189

NET BOOK VALUE

At 31 March 2026

99,319

At 31 March 2025

161,670

Company

Goodwill

£

COST

At 1 April 2025

and 31 March 2026

664,931

AMORTISATION

At 1 April 2025

and 31 March 2026

664,931

NET BOOK VALUE

At 31 March 2026

-

At 31 March 2025

-

13.	TANGIBLE FIXED ASSETS

Group

Improvements

Freehold

Long

to

Plant and

property

leasehold

property

machinery

£

COST

At 1 April 2025

5,654,010

29,935

7,839

1,759,617

Additions

-

119,753

Disposals

-

(29,500

)

Impairments

-

(43,049

)

At 31 March 2026

5,654,010

29,935

7,839

1,806,821

DEPRECIATION

At 1 April 2025

257,572

29,935

7,800

1,468,584

Charge for year

16,283

-

39

79,179

Eliminated on disposal

-

(28,903

)

Impairments

-

(26,618

)

At 31 March 2026

273,855

29,935

7,839

1,492,242

NET BOOK VALUE

At 31 March 2026

5,380,155

-

314,579

At 31 March 2025

5,396,438

-

39

291,033

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

COST

At 1 April 2025

1,666,070

949,151

4,149

10,070,771

Additions

132,057

188,665

-

440,475

Disposals

-

(65,257

)

-

(94,757

)

Impairments

-

(43,049

)

At 31 March 2026

1,798,127

1,072,559

4,149

10,373,440

DEPRECIATION

At 1 April 2025

1,040,825

629,912

3,588

3,438,216

Charge for year

98,587

142,433

318

336,839

Eliminated on disposal

-

(62,406

)

-

(91,309

)

Impairments

-

(26,618

)

At 31 March 2026

1,139,412

709,939

3,906

3,657,128

NET BOOK VALUE

At 31 March 2026

658,715

362,620

243

6,716,312

At 31 March 2025

625,245

319,239

561

6,632,555

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 April 2025

and 31 March 2026

50,748

DEPRECIATION

At 1 April 2025

27,909

Charge for year

12,686

At 31 March 2026

40,595

NET BOOK VALUE

At 31 March 2026

10,153

At 31 March 2025

22,839

Company

Freehold

Long

Plant and

property

leasehold

machinery

£

COST

At 1 April 2025

4,177,464

15,380

744,806

Additions

-

112,087

Disposals

-

(29,500

)

At 31 March 2026

4,177,464

15,380

827,393

DEPRECIATION

At 1 April 2025

-

15,380

640,908

Charge for year

-

32,233

Eliminated on disposal

-

(28,903

)

At 31 March 2026

-

15,380

644,238

NET BOOK VALUE

At 31 March 2026

4,177,464

-

183,155

At 31 March 2025

4,177,464

-

103,898

Fixtures

and

Motor

fittings

vehicles

Totals

£

COST

At 1 April 2025

1,114,586

830,405

6,882,641

Additions

94,611

188,665

395,363

Disposals

-

(65,257

)

(94,757

)

At 31 March 2026

1,209,197

953,813

7,183,247

DEPRECIATION

At 1 April 2025

875,297

579,212

2,110,797

Charge for year

71,580

109,251

213,064

Eliminated on disposal

-

(62,406

)

(91,309

)

At 31 March 2026

946,877

626,057

2,232,552

NET BOOK VALUE

At 31 March 2026

262,320

327,756

4,950,695

At 31 March 2025

239,289

251,193

4,771,844

14.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

£

COST

At 1 April 2025

5,082,051

Impairments

(63,176

)

At 31 March 2026

5,018,875

NET BOOK VALUE

At 31 March 2026

5,018,875

At 31 March 2025

5,082,051

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Lycett Holdings Limited

Registered office: Gagarin, Lichfield Road Industrial Estate, Lichfield Road, Tamworth, Staffordshire, B79 7TA

Nature of business: Property letting

%

Class of shares:

holding

Ordinary

100.00

Lycett Fabrications Limited

Registered office: Gagarin, Lichfield Road Industrial Estate, Lichfield Road, Tamworth, Staffordshire, B79 7TA

Nature of business: Metal fabricator

%

Class of shares:

holding

Ordinary

100.00

Lycett Fabrications Limited is 100% owned by Lycett Holdings Limited so owned indirectly by Tamworth Steel Stockholders Limited.

Stainless Tube & Needle Company Ltd

Registered office: Gagarin, Lichfield Road Industrial Estate, Lichfield Road, Tamworth, Staffordshire, B79 7TA

Nature of business: Medical equipment manufacture

%

Class of shares:

holding

Ordinary

100.00

Taylor Special Steels Limited

Registered office: Gagarin, Lichfield Road Industrial Estate, Lichfield Road, Tamworth, Staffordshire, B79 7TA

Nature of business: Specialist steel stockholder

%

Class of shares:

holding

Ordinary

100.00

C. H. Taylor & Co Ltd

Registered office: Gagarin, Lichfield Road Industrial Estate, Lichfield Road, Tamworth, Staffordshire, B79 7TA

Nature of business: Property letting

%

Class of shares:

holding

Ordinary

100.00

C. H. Taylor & Co Limited is 100% owned by Taylor Special Steels Limited so owned indirectly by Tamworth Steel Stockholders Limited.

Coppice Side Engineering Ltd

Registered office: Gagarin, Lichfield Road Industrial Estate, Lichfield Road, Tamworth, Staffordshire, B79 7TA

Nature of business: Fabricated products

%

Class of shares:

holding

Ordinary

100.00

Coppice Side Engineering Limited is 100% owned by Jaycee (Coppice Side) Limited so owned indirectly by Tamworth Steel Stockholders Limited.

Jaycee (Coppice Side) Limited

Registered office: Gagarin, Lichfield Road Industrial Estate, Lichfield Road, Tamworth, Staffordshire, B79 7TA

Nature of business: Investment holding company

%

Class of shares:

holding

Ordinary

100.00

15.

STOCKS

Group

Company

2026

2025

2026

2025

£

Stocks

2,926,840

3,010,158

1,307,995

1,274,996

Finished goods

333,974

362,905

-

3,260,814

3,373,063

1,307,995

1,274,996

16.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2026

2025

2026

2025

£

Trade debtors

3,579,092

3,376,662

1,990,945

1,912,436

Amounts owed by group undertakings

-

150,458

109,689

Other debtors

309,408

409,065

79,776

58,148

Tax

16,445

94,386

-

34,413

Prepayments and accrued income

193,478

150,183

53,418

17,219

4,098,423

4,030,296

2,274,597

2,131,905

17.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2026

2025

2026

2025

£

Bank loans and overdrafts (see note 18)

2,260

-

2,260

-

Hire purchase contracts (see note 19)

-

12,021

-

Trade creditors

2,717,671

2,791,797

1,824,976

1,573,752

Amounts owed to group undertakings

-

2,771,902

2,719,942

Tax

172,263

167,491

69,064

-

Social security and other taxes

501,124

152,948

436,861

90,333

Net wages control

1,375

-

1,375

-

VAT

339,383

287,403

197,753

217,535

Other creditors

20,220

93,785

-

76,098

Directors' current accounts

281,177

746,482

281,177

746,482

Accruals and deferred income

495,132

902,761

359,273

657,087

4,530,605

5,154,688

5,944,641

6,081,229

18.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

2026

2025

2026

2025

£

Amounts falling due within one year or on

demand:

Bank overdrafts

2,260

-

2,260

-

19.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase

contracts

2026

2025

£

Net obligations repayable:

Within one year

-

12,021

Group

Non-cancellable

operating leases

2026

2025

£

Within one year

18,436

16,302

Between one and five years

25,471

15,210

43,907

31,512

20.	FINANCIAL INSTRUMENTS

Group

Financial assets include debt instruments measured at amortised cost with a carrying value of £3,888,500 (2025 - £3,785,727).

Financial liabilities include loans, trade and other creditors measured at amortised cost with a carrying value of £3,019,068 (2025 - £3,644,085).

Company

Financial assets include debt instruments measured at amortised cost with a carrying value of £2,070,721 (2025 - £1,970,584).

Financial liabilities include loans, trade and other creditors measured at amortised cost with a carrying value of £2,106,153 (2025 - £2,396,332).

21.	PROVISIONS FOR LIABILITIES

Group

Company

2026

2025

2026

2025

£

Deferred tax

275,742

262,164

160,015

111,104

Group

Deferred

tax

£

Balance at 1 April 2025

262,164

Charge to Income Statement during year

13,578

Balance at 31 March 2026

275,742

Company

Deferred

tax

£

Balance at 1 April 2025

111,104

Provided during year

48,911

Balance at 31 March 2026

160,015

22.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2026

2025

value:

£

900

Ordinary

£1

900

During the prior year the company repurchased 100 ordinary £1 shares from two former shareholders for a total consideration of £1,300,000. The nominal value of the shares was deducted from share capital and the excess of the consideration over nominal value was charged to retained earnings.

Ordinary shares have a right to receive notice of, attend and vote at a general meeting of the company, receive dividends and capital on wind up.

23.

RESERVES

Group

Capital

Retained

redemption

Other

earnings

reserve

reserves

Totals

£

At 1 April 2025

20,834,211

100

2,000

20,836,311

Profit for the year

1,021,605

At 31 March 2026

21,855,816

100

2,000

21,857,916

Company

Capital

Retained

redemption

Other

earnings

reserve

reserves

Totals

£

At 1 April 2025

11,130,087

100

2,000

11,132,187

Profit for the year

728,179

At 31 March 2026

11,858,266

100

2,000

11,860,366

The retained earnings reserve represents the cumulative profits and losses, net of dividends.

24.	PENSION COMMITMENTS

The group operates defined pension contribution schemes for all qualifying employees. The assets of the schemes are held separately from those of the group in an independently administered fund. The charge to profit or loss in the year in respect of employer contributions was £184,141 (2025 - £135,419).

25.	RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption available under FRS102 from disclosing transactions with wholly owned subsidiaries within the group.

The following related parties had loan accounts with the company during the year. The balances outstanding at the year-end were as follows:

J E V Ratledge

2026

2025

£

Amount due to related party

281,177

746,482

Other related parties

All amounts above represent amounts due from the company and are included in creditors.

Key management personnel only consists of the directors whose aggregate remuneration is disclosed in note 5.

26.	ULTIMATE CONTROLLING PARTY

The controlling party is J E V Ratledge.