REGISTERED NUMBER: 01028890 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2026

FOR

M.D.J. LIGHT BROTHERS (SCRAP PROCESSERS)

LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

M D Light

J M Light

REGISTERED OFFICE:

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

REGISTERED NUMBER:

01028890 (England and Wales)

AUDITORS:

Watson Associates (Audit Services) Ltd

Statutory Auditor

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

The directors present their strategic report for the year ended 30 April 2026.

REVIEW OF BUSINESS

In a significantly better year, the company has made a trading profit for the year and increased turnover by 11.2% from the previous period. The increase in turnover has been achieved by a combination of factors. The introduction of new treatment lines including the completion of the POPs processing plant, along with the exit from the market of a number of established competitors. This latter factor has helped to increase the volume of material available.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors have identified the key risks to be global commodity prices, international freight rates, and the fluctuation of Sterling against other international currencies. The impact of these factors on the price that the Company receives for the sales of processed materials from national and international customers can be significant. These risks are mitigated by the ability to react quickly to volatile trading conditions and the identification of new markets and opportunities.

A further risk is the rapid development of waste recycling technology in respect of new processes. This is

accompanied by changes in environmental and other legislation that influence costs, treatments and available markets. To address this concern the Company operates a rolling replacement programme for the existing vehicle and mobile plant fleets and continues to explore and invest in new and advanced waste recycling technology. New markets are constantly explored: many national and international trade fairs and conferences are attended by Company representatives. This investment strategy will ensure that the Company remains competitive, adaptable and will contribute to ensuring ongoing profitability.

Trading conditions through 2025 and the early part of 2026 were impacted by the ongoing war in Ukraine and the conflict in the Middle East. These conflicts have significantly impacted costs; with specific impacts on fuel prices and the availability of export routes. Furthermore, there is the consequence of higher inflation on operating and borrowing costs, with the additional financial burden incurred because the Government has introduced several measures that increase the costs of employment.

PERFORMANCE OF THE BUSINESS

Key performance indicators

2026

2025

Turnover

£35,186,718

£31,638,649

Turnover growth/(decline)

11.21%

0.94%

EBITDA

£1,923,668

£1,127,916

EBITDA growth/(decline)

(70.6%)

(16.6%)

Profit/(loss) before tax

£113,667

(£496,401)

Profit growth/(decline)

(122.9%)

(925.5%)

Employee numbers

101

119

FURTHER BUSINESS REVIEW AND RISKS

Alternative outlets for materials are regularly explored. There has been a lot of uncertainty with commodity prices during the year and ongoing at the date of these accounts with the ongoing conflict in Ukraine and more pertinently in the Strait of Hormuz. Management is continuing to monitor the impact these conflicts are having on commodity prices. Another consequence of this global instability is increased fuel and energy costs which have increased operational costs significantly. We have introduced various mechanisms to counter this and are now enjoying a return to improved margins and profitability.

Measures to improve energy efficiency are being reviewed on an ongoing basis. Renewable energy installations and the electrification of the plant and vehicle fleets have continued. We will invest in new equipment to substantially increase processing capacity in the next 12 months. The liquidity of the company remains stable and additional financing measures are not considered necessary. The balance sheet remains positive, increasing on the previous year.

The company has an increasing order pipeline and will be in a strong position to maintain market share and contracts with both new and existing customers.

ON BEHALF OF THE BOARD:

J M Light - Director

1 October 2026

The directors present their report with the financial statements of the company for the year ended 30 April 2026.

DIVIDENDS

The total distribution of dividends for the year ended 30 April 2024 will be £nil.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2025 to the date of this report.

M D Light

J M Light

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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 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.

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 company'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 company's auditors are aware of that information.

AUDITORS

The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J M Light - Director

1 October 2026

Opinion

We have audited the financial statements of M.D.J. Light Brothers (Scrap Processers) Limited (the 'company') for the year ended 30 April 2026 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 30 April 2026 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the 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, 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 four, 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 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.

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.

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

Based on our understanding of the company and industry, we identified that the principal risks of

non-compliance with laws and regulations related to employment laws and we considered the extent to which

non-compliance might have a material effect on the financial statements.

We also considered those laws and regulations that have a direct impact on the preparation of the financial

statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for

fraudulent manipulation of the financial statements (including the risk of override of controls), and determine

that the principal risks were related to posting inappropriate journal entries to achieve desired financial results

and the manipulation of exceptional items and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

- enquiries with management, including consideration of known or suspected instances of fraud and

non-compliance with laws and regulations and examining supporting calculations where a provision has been

made in respect of these;

- reading key correspondence with regulatory authorities in relation to compliance with certain employment

laws;

- understanding and evaluating the design and implementation of management’s controls designed to prevent

and detect irregularities;

- challenging assumptions and judgements made by management in their significant accounting estimates, in

particular in relation to valuation of investment property, impairment of investments in subsidiaries and the

measurement and classification of exceptional items;

- identifying and testing journal entries, in particular any journal entries posted with unusual account

combinations and postings by unusual users.

There are inherent limitations in the audit procedures described above and the further removed

non-compliance with laws and regulations is from the events and transactions reflected in the financial

statements, the less likely we would become aware of it. Also, 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.

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 James Moore (Senior Statutory Auditor)

for and on behalf of Watson Associates (Audit Services) Ltd

Statutory Auditor

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

2 October 2026

TURNOVER

5

35,245,355

31,638,649

Cost of sales

(30,247,909

)

(27,705,665

)

GROSS PROFIT

4,997,446

3,932,984

Administrative expenses

(4,701,904

)

(4,339,497

)

OPERATING PROFIT/(LOSS)

8

295,542

(406,513

)

Interest receivable and similar income

678

3,780

296,220

(402,733

)

Interest payable and similar expenses

9

(123,916

)

(93,668

)

PROFIT/(LOSS) BEFORE TAXATION

172,304

(496,401

)

Tax on profit/(loss)

10

(130,122

)

60,298

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

42,182

(436,103

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR

42,182

(436,103

)

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

9,065,650

9,334,434

Investments

14

-

-

Investment property

15

375,000

375,000

9,440,650

9,709,434

CURRENT ASSETS

Stocks

16

2,144,700

2,687,282

Debtors

17

2,393,597

2,743,959

Cash at bank and in hand

257,391

279,120

4,795,688

5,710,361

CREDITORS

Amounts falling due within one year

18

(5,489,200

)

(6,090,849

)

NET CURRENT LIABILITIES

(693,512

)

(380,488

)

TOTAL ASSETS LESS CURRENT LIABILITIES

8,747,138

9,328,946

CREDITORS

Amounts falling due after more than one year

19

(1,439,591

)

(2,183,702

)

PROVISIONS FOR LIABILITIES

23

(773,188

)

(643,066

)

NET ASSETS

6,534,359

6,502,178

CAPITAL AND RESERVES

Called up share capital

24

90

90

Revaluation reserve

25

616,892

616,892

Capital redemption reserve

25

10

10

Other reserves

25

128,165

128,165

Retained earnings

25

5,789,202

5,757,021

SHAREHOLDERS' FUNDS

6,534,359

6,502,178

The financial statements were approved by the Board of Directors and authorised for issue on 1 October 2026 and were signed on its behalf by:

J M Light - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 May 2024

90

6,152,624

616,892

Changes in equity

Total comprehensive loss

-

(395,603

)

-

Balance at 30 April 2025

90

5,757,021

616,892

Changes in equity

Dividends

-

(10,001

)

-

Total comprehensive income

-

42,182

-

Balance at 30 April 2026

90

5,789,202

616,892

Capital

redemption

Other

Total

reserve

reserves

equity

£

£

£

Balance at 1 May 2024

10

168,665

6,938,281

Changes in equity

Total comprehensive loss

-

(40,500

)

(436,103

)

Balance at 30 April 2025

10

128,165

6,502,178

Changes in equity

Dividends

-

-

(10,001

)

Total comprehensive income

-

-

42,182

Balance at 30 April 2026

10

128,165

6,534,359

Cash flows from operating activities

Cash generated from operations

1

3,510,504

(289,732

)

Interest paid

(123,916

)

(93,668

)

Net cash from operating activities

3,386,588

(383,400

)

Cash flows from investing activities

Purchase of tangible fixed assets

(837,412

)

(1,697,808

)

Sale of tangible fixed assets

215,301

461,613

Interest received

678

3,780

Net cash from investing activities

(621,433

)

(1,232,415

)

Cash flows from financing activities

New loans in year

687,098

925,470

Loan repayments in year

(880,712

)

(1,063,945

)

Capital repayments in year

(1,039,001

)

(506,637

)

Equity dividends paid

(10,001

)

-

Net cash from financing activities

(1,242,616

)

(645,112

)

Increase/(decrease) in cash and cash equivalents

1,522,539

(2,260,927

)

Cash and cash equivalents at beginning of year

2

(1,265,148

)

995,779

Cash and cash equivalents at end of year

2

257,391

(1,265,148

)

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2026

2025

£

£

Profit/(loss) before taxation

172,304

(496,401

)

Depreciation charges

1,686,085

1,535,554

Profit on disposal of fixed assets

(75,502

)

(143,309

)

Finance costs

123,916

93,668

Finance income

(678

)

(3,780

)

1,906,125

985,732

Decrease/(increase) in stocks

542,582

(713,482

)

Decrease/(increase) in trade and other debtors

350,362

(305,069

)

Increase/(decrease) in trade and other creditors

711,435

(256,913

)

Cash generated from operations

3,510,504

(289,732

)

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 30 April 2026

30.4.26

1.5.25

£

£

Cash and cash equivalents

257,391

279,120

Bank overdrafts

-

(1,544,268

)

257,391

(1,265,148

)

Year ended 30 April 2025

30.4.25

1.5.24

£

£

Cash and cash equivalents

279,120

995,779

Bank overdrafts

(1,544,268

)

-

(1,265,148

)

995,779

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.5.25

Cash flow

changes

At 30.4.26

£

£

£

£

Net cash

Cash at bank

and in hand

279,120

(21,729

)

257,391

Bank overdrafts

(1,544,268

)

1,544,268

-

(1,265,148

)

1,522,539

257,391

Debt

Finance leases

(2,330,631

)

1,039,001

(716,635

)

(2,008,265

)

Debts falling due

within 1 year

(399,872

)

(288,640

)

-

(688,512

)

Debts falling due

after 1 year

(711,716

)

482,254

-

(229,462

)

(3,442,219

)

1,232,615

(716,635

)

(2,926,239

)

Total

(4,707,367

)

2,755,154

(716,635

)

(2,668,848

)

1.	STATUTORY INFORMATION

M.D.J. Light Brothers (Scrap Processers) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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, being the amount paid in connection with the acquisition of a business in 2012, is being amortised evenly over its estimated useful life of five years.

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

-

in accordance with the property

Short leasehold

-

over term of lease

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance and not provided

Motor vehicles

-

25% on reducing balance

Computer equipment

-

20% on reducing balance

Tangible assets, other than investment and freehold properties, are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Freehold property is carried at fair value at the date of the revaluation less subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in the Statement of Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the profit and loss.

No provision for depreciation is made in respect of the freehold properties as the directors consider such a charge to be immaterial.

Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are initially measured at cost, including transaction costs. Subsequently investment properties whose fair value can be measured reliably without undue cost or effort on an on-going basis are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise.

Investment properties whose fair value cannot be measured reliably without undue cost or effort on an on-going basis are included in plant, property and equipment at cost less accumulated depreciation and accumulated impairment losses.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Where the cost of a stock item cannot be determined, it is valued at selling price less margin, based on normal levels of activity, which is deemed comparable to cost.

Quantities of inventories are determined using various estimation techniques, including observation, weighing and other industry methods.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of the financial assets and liabilities like trade and other accounts receivable and payable, loans from bank and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at the amortised cost using the effective interest method

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an enforceable right to set off the recognised amounts and there is no intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Pension costs and other post-retirement benefits

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