The director presents the strategic report for the year ended 31 December 2025.
The principal activity of Tradmet Limited and its subsidiaries (together the "group") in the year under review was that of
The core product base is recyclable and recycled metals. This has been the case since the group was established, and is a specialism of the director. The group is proud to be deeply engaged in this sector, demonstrating its inherent long-term commitment to environmental sustainability.
Revenue for the year was £88.5m (2024: £88.7m) and gross profit was £2.8m (2024: £3.1m), resulting in a gross profit margin of 3.2% (2024: 3.6%). Finance costs remained stable at 34% (2024: 34%) of gross profit.
During 2025 the group continued to use the ongoing lending facilities secured in 2022 which continues to provide opportunities to improve traded volumes. However, during the year increased prices has supressed potential increases in volume but revenue has remained comparable to the previous year. Achievable margins remained stable despite keener competition for reduced availability of metal units, which correlates to global economic activity. |
Unfortunately, during the year the Group suffered an exceptional loss in relation to theft of material and associated costs amounting to £2.389M, resulting in the loss for the year reported. The Group is pursuing an insurance claim for the recovery of its losses, but relevant accounting standards do not permit the recognition of any potential recoveries in these financial statements.
Financial instruments of significance to the group include primary financial instruments (mainly cash, borrowings, debtors, and creditors) and derivative financial instruments (mainly London Metal Exchange (LME) contracts and foreign exchange contracts).
The financial risks to which the group is exposed are mainly market risk, foreign currency risk, credit risk and liquidity risk.
Market risk
Market risk is the risk that the movements in metal prices and/or foreign exchange rates will cause fluctuations in the value of, or cash flows arising from, financial assets and liabilities, and from other contracts for the future delivery of metal. Exposures to metal price movements and foreign exchange rate fluctuations are restricted by trading/credit limits imposed by the LME brokers and foreign exchange brokers or banks.
Credit risk
Credit risk is the risk that a supplier or customer will fail to fulfil their contractual obligations. Exposure to this risk is reduced by the use of credit control policies which may include the use of credit limits, volume of business and margining of suppliers/customers.
Liquidity risk
The risk that adequate funding is not available to the group to meets its commitments associated with financial instruments is liquidity risk. The group plans its future business in conjunction with its borrowing facilities to avoid liquidity problems and maintains relationships with lenders to ensure sufficient facility levels are in place.
Foreign currency risk
The group has significant trading activities with counterparties in Africa, Asia, America and Europe. As a result, it has trading balances with both customers and suppliers that are designated in currencies other than pound sterling. In order to mitigate these exposures, the group enters into forward currency contracts and options.
Future outlook and developments
Although interest rates fell during 2025, the continued global levels of debt levels are not encouraging growth. As a result, economic activity including the construction and infrastructure sector remains subdued. Development of AI technology and the continued growth in the electronics sector suggests there is significant potential demand for metals within these markets.
It remains to be seen whether the expectation for this sector is overstated whilst another element is the power required by these data centres, being a matter of global concern at the time of writing. In the UK we have seen significant tax increases during 2025 to manage the demands of public funding and this is contributing to higher cost of funding to the Treasury and increase of UK debt. It is clear that economic activity will remain subdued in the near term. Despite the various pressures on global funding and tradeable volumes, the group considers the trading return was acceptable and line with our peers.
The emphasis of matter noted in the Independent Auditor’s Report remains unchanged from the prior year due to recent positive developments which provides the director with confidence that the trade receivable noted therein may be refunded in due course.
Whilst the financial and liquidity position of the group has been affected, with the continued support of its lenders and stakeholders, the group’s trading activities and its ability to continue to trade as normal are unaffected and profitability levels remain good. With an improving global economic situation in the medium term this will provide opportunity to enhance volume and revenue over the coming years.
During the preparation of these financial statements the director has had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 when performing his duties under section 172.
Under the Act a director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
(a) the likely consequences of any decision in the long term,
(b) the interests of the group's employees,
(c) the need to foster the group's business relationships with suppliers, customers and others,
(d) the impact of the group's operations on the community and the environment,
(e) the desirability of the group maintaining a reputation for high standards of business conduct, and
(f ) the need to act fairly, as between members of the group.
The group has identified the following stakeholders:
Employees
The director recognises that employees are fundamental to the group's long-term success. The group has taken significant steps to ensure that health and wellbeing is valued and supported.
Bank and brokers
The director considers the fostering of relationships with the group's banks and brokers, who facilitate the financing and hedging of its commodities, to be integral to the long term success of the business. The group maintains strong, open relationships with these institutions and maintaining these is fundamental to its continued success. The group is aware that the financial institution risk to providing ongoing credit is very real and not to be taken for granted.
Suppliers and customers
The group has a strong supplier and customer base right across the globe. Fostering close and enduring relationships with them is vital to the long-term success of the business. These are relationships gained from years in the industry that the group continues to develop, and as the group grows its relationships with the organisations continue to become stronger. The group takes pride in its integrity and transparency, to meet the highest standards possible when it comes to dealing with its customers and suppliers.
On behalf of the board
The director presents his annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 9. Dividends of £177,000 (2024: £171,000) were declared during the year.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
We have audited the financial statements of Tradmet Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for opinion
Emphasis of matter - recoverability of trade receivable
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 group's and 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 director with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102, the Companies Act 2006) and the relevant direct and indirect tax compliance regulation in the United Kingdom. In addition, the company is required to comply with shipping regulations, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation.
We understood how the company is complying with those frameworks by making enquiries of management and seeking representations from those charged with governance to understand how management maintains and communicates its policies and procedures in these areas. We corroborated this by reviewing supporting documentation.
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal control and by designating revenue recognition as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business. We tested specific transactions reconciling to source documentation or independent confirmations.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of management and those charged with governance, together with a review of legal and professional expenses.
The senior statutory auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate competence and capabilities.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s loss for the year was £1,818,806 (2024 : £640,751 profit).
Tradmet Limited (the "company”) is a private limited company domiciled and incorporated in England and Wales. The registered office and business address is First Floor, Unit 5, Rotherbrook Court, Bedford Road, Petersfield, Hants, GU32 3QG.
The group consists of Tradmet Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group that prepares publicly available consolidated financial statements, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.
The consolidated group financial statements consist of the financial statements of the parent company Tradmet Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. 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 and balances between group companies are eliminated on consolidation.
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied, net of any discounts and rebates allowed by the group and value added taxes.
The group recognises revenue when:
the significant risks and rewards of ownership have been transferred to the buyer;
the group retains no continuing involvement or control over the goods;
the amount of revenue can be measured reliably;
it is probable that future economic benefits will flow to the entity; and
when the specific criteria relating to each of the group's sales channels have been met, as described below.
Revenue is recognised when the significant risks and rewards of ownership have passed to the buyer, and it is probable that the group will receive the previously agreed consideration. This generally occurs at the point of agreed delivery to the buyer.
For certain materials, the sales price is determined on a provisional basis at the date of the sale, as the final selling price is subject to movements in market prices up to the date of the final pricing, normally ranging from 30 to 90 days after initial delivery. Sales prices on provisionally priced sales are recognised based on the estimated fair value of the total consideration receivable.
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 recognised in the statement of comprehensive income.
In the company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible 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.
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 statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade and other receivables 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.
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 loss 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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks 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.
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, which include trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present 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.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.
Trade payables 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 due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The group uses derivative financial instruments to hedge exposures to financial risks, such as foreign exchange and commodity price risks.
All derivative instruments are measured at fair value through the statement of comprehensive income upon initial recognition and are remeasured to fair value through the statement of comprehensive income at each subsequent reporting date. Fair value is determined by reference to quoted prices on a recognised exchange. Derivative instruments are carried as assets when the fair value is positive and liabilities when the fair value is negative.
Included within derivatives are the forward physical contracts and the fair value adjustments on open contracts at the year end.
Assets and liabilities are only offset when the group has a legally enforceable right to set off the recognised amounts and either intends to settle on a net basis or to realise the receivable and settle the payment simultaneously. Hedge accounting rules have not been applied.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
For cash-settled share-based payments, a liability is recognised for the goods and services acquired, measured initially at the fair value of the liability. At the balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognised in profit or loss for the year.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using available market data. The fair value determined at the grant date is expensed once it is probably that the non-market vesting conditions will be met. A corresponding adjustment is made to equity.
The company has issued share options that can only be exercised upon the fulfilment of a non-market vesting condition. As a result, a variable vesting period exists, and the associated expense is recognised only when it is deemed probable that the non-market vesting condition will be met and when the timing of such fulfilment can be reliably estimated. At the reporting date, the director believes that the relevant conditions exist and can be reliably assessed; accordingly, the associated expense has been recognised in the financial statements.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
Rentals payable under operating leases, including any lease incentives received, are charged to the statement of comprehensive income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pound sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the statement of comprehensive income for the period.
In the application of the group’s accounting policies, the director is 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.
Receivables are assessed for indicators of impairment at each reporting period end.
The director applies his judgement in considering the likely recovery of receivables outstanding at the period end to ensure that a provision is made against any uncertain balances. In arriving at a suitable provision, regard is given to the age profile of the debt and assessment is made by the director based on the particular circumstances of each matter.
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.
For certain contracts, where the initial price is determined on a provisional basis, the final price is subject to movements in market prices up to the date of the final pricing. The value of these open elements is valued against the published LME price at the year end date, and LME futures contracts are used to hedge the group's commodity price risk exposure.
The company has issued share options that can only be exercised in the event of a company sale, listing or asset sale. A share option expense is only recognised once the director believes it is probable that one of these events will occur and when it can be reliably estimated when this will occur. At the reporting date, the director believes that the relevant conditions exist and can be reliably assessed; accordingly, the associated expense has been recognised in the financial statements.
The average monthly number of persons (including the director) employed by the group and parent company during the year was:
Their aggregate remuneration comprised:
The director's remuneration above is also considered to be the remuneration of key management personnel.
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2025 are as follows:
1 - Unit A 25/F, One Island South, 2 Heung Yip Road, Wong Chuk Hang, Hong Kong
2 - Solonos 10, GR-106 73, Athens, Greece
Included in trade receivables is an amount of $2,000,000 (2024: $2,000,000) relating to an overdue supplier advance, which was to be settled through the supply of materials. There is a material uncertainty over the recoverability of this advance due to the length of time it has remained unpaid. The director remains confident that this debt will be satisfied in full, however to date the balance remains outstanding. Should the advance prove not to be recovered, the company's net assets and retained earnings would be reduced by the amount unrecovered, net of tax.
The group uses short-term borrowings to finance the trade of the business. These loans are generally secured on the value of the future delivery obligations or underlying material already purchased and they bear commercial rates of interest agreed annually with the group's finance provider. The loans are repayable between 85-110 days but generally before or on the subsequent sale of the materials.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the year end, the group had no pension liabilities (2024: £Nil).
The shares granted to the employees under the share scheme are £0.01 ordinary shares, therefore the nominal value of the shares is £7.45.
During the financial year ended 31 December 2025, the Group recognised an expense of £367,765 (2024: £Nil) in profit or loss in respect of equity-settled share-based payment arrangements.
The Ordinary shares have attached to them full voting rights, varying dividend rights, capital distribution(including on winding up) rights; they do not confer any rights of redemption.
The 'A' Ordinary shares have attached to them no voting rights, varying dividend rights, and par value on capital distribution (including on winding up) rights; they do not confer any rights of redemption.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year dividends totalling £177,000 (2024: £171,000) were paid to the director and his immediate family.