Reliance Scrap Metal Merchants (Parkstone) Limited

Reliance Scrap Metal Merchants (Parkstone) Limited

Annual Report and Financial Statements
Year Ended 30 April 2026

Registration number: 00532957

Contents

Company Information	1
Strategic Report	2 to 3
Directors' Report	4 to 5
Statement of Directors' Responsibilities	6
Independent Auditor's Report	7 to 10
Profit and Loss Account	11
Balance Sheet	12
Statement of Changes in Equity	13
Statement of Cash Flows	14
Notes to the Financial Statements	15 to 31

Reliance Scrap Metal Merchants (Parkstone) Limited

Company Information

Director

Mrs R Matthews

Mrs N J Hawkins

Registered office

Towngate House
2-8 Parkstone Road
Poole
Dorset
BH15 2PW

Auditors

PKF Francis Clark
Chartered Accountants & Registered AuditorsTowngate House
2-8 Parkstone Road
Poole
Dorset
BH15 2PW

Reliance Scrap Metal Merchants (Parkstone) Limited

Strategic Report for the Year Ended 30 April 2026

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

Principal activity

The principal activity of the company is the recycling of ferrous and non-ferrous metals. The company is actively engaged in all stages of the recycling process, from the reclamation and processing to the haulage and freight activity necessary for the delivery of recycled commodities to the company’s customer base.

Fair review of the business

The Company’s financial performance improved during the year, returning to more expected levels despite continued challenging market conditions. The business generated a trading profit, supported by an improvement in gross profit margins and focused management of operational activities.

The wider economic environment remained uncertain, and the competitive conditions experienced in the prior year continued. Sustained competition for market share and volume placed pressure on margins; however, the Company successfully adapted to these challenges and delivered an improved operating performance despite lower revenues.

Gross profit remains a key performance indicator monitored by the Board. The directors continue to closely assess the impact of cost inflation, market demand and competitive pricing pressures to ensure the business remains well positioned to respond to changing market conditions.

Although uncertainties remain within global markets, the directors believe that the ongoing transition towards net-zero economies and increased emphasis on sustainable resource management will provide long-term opportunities for the sector. The Company benefits from an experienced management team and remains focused on delivering high-quality service and recycled materials to its customers, whilst maintaining a disciplined approach to growth and profitability.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs	Unit	2026	2025
Turnover	£	22,608,728	24,922,840
Gross profit margin	%	7	3
EBITDA (excluding exceptional expense)	£	1,204,147	405,755

Reliance Scrap Metal Merchants (Parkstone) Limited

Strategic Report for the Year Ended 30 April 2026

Principal risks and uncertainties

The company is exposed to risks associated with fluctuations in metal prices which the company mitigates by reviewing market rates and setting prices to maximise margin whilst taking account of supply and demand pressures.

Environmental and health and safety risks are controlled through careful planning and management, risk assessments, inspection visits and the use of external consultants.

Financial Risk Management

The business' principal financial instruments comprise bank balances, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The company also has an invoice discounting facility. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Loans comprise loans from financial institutions. The interest rate and monthly repayments on the loans from financial institutions are fixed. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.

Approved by the Board on 8 October 2026 and signed on its behalf by:

.........................................
Mrs R Matthews
Director

Reliance Scrap Metal Merchants (Parkstone) Limited

Directors' Report for the Year Ended 30 April 2026

The directors present their report and the financial statements for the year ended 30 April 2026.

Going concern

The financial statements have been prepared on a going concern basis.

At the balance sheet date the company had net current liabilities of £201,199. However, a 5-year plan was prepared by the directors in 2025. The Company outperformed the forecasted performance in 2026, with improved profitability and cash generation exceeding the levels forecast by the directors.

Key assumptions included within the cashflow forecasts include:

• Existing levels of facilities will continue to be made available to the company for the foreseeable future

• Annual growth in turnover and associated costs of 5% for 2027 and beyond

• Amounts due from related parties will not be recovered for the foreseeable future

The cashflow forecasts prepared indicate the company will be able to continue to operate within its current level of facilities available, and so the directors consider that the company is a going concern.

Reliance Scrap Metal Merchants (Parkstone) Limited

Directors' Report for the Year Ended 30 April 2026

Directors of the company

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

Mrs R Matthews

Mrs N J Hawkins

Disclosure of information to the auditors

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

Financial instruments
The director has chosen to include information on the company's financial risk management objectives and policies in their Strategic Report.

Approved by the Board on 8 October 2026 and signed on its behalf by:

.........................................
Mrs R Matthews
Director

Reliance Scrap Metal Merchants (Parkstone) Limited

Statement of Directors' Responsibilities

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;

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

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

•	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Reliance Scrap Metal Merchants (Parkstone) Limited

Independent Auditor's Report to the Members of Reliance Scrap Metal Merchants (Parkstone) Limited

Opinion

We have audited the financial statements of Reliance Scrap Metal Merchants (Parkstone) Limited (the 'company') for the year ended 30 April 2026, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Reliance Scrap Metal Merchants (Parkstone) Limited

Independent Auditor's Report to the Members of Reliance Scrap Metal Merchants (Parkstone) Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

•	the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors' remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Reliance Scrap Metal Merchants (Parkstone) Limited

Independent Auditor's Report to the Members of Reliance Scrap Metal Merchants (Parkstone) Limited

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to Reliance Scrap Metal Merchants (Parkstone) Limited. Our understanding was gained through appropriate audit engagement team selection (ensuring competence and capability to recognise non-compliance) and discussions with management. This covered any knowledge or evidence of actual and potential fraud, litigation and claims, which was followed up with corroborative audit review work. Key regulations we identified were breaches around health and safety regulations as well as employment law. We considered the extent to which non-compliance with these laws and regulations may 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 and relevant tax legislation.

Based on this understanding we designed our audit procedures to identify non-compliance with relevant laws and regulations. Our procedures involved the following:

• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances of fraud.

• Review of legal and professional costs to identify any possible non-compliance.

• Review of the annual Health and Safety reports, and ad hoc Environment Agency reports prepared during the year.

We assessed the susceptibility of the financial statements to material misstatement through management override or fraud and obtained an understanding of the controls in place to mitigate the risk of fraud. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key risk we identified was in relation to the completeness of revenue and the existence and valuation of stock. Based upon our understanding we designed and conducted audit procedures including:

• Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

• Reviewed estimates and judgements made in the accounts for any indication of bias, and challenged assumptions used by management in making the estimates.

• Substantive testing of sales to delivery notes to ensure revenue recognition is complete in the accounts.

• Attended a stock count at the year end date with pictures taken for all significant stock lines and additional photo evidence where appropriate to compare against prior year stock lines to confirm managements estimations were accurate.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

Reliance Scrap Metal Merchants (Parkstone) Limited

Independent Auditor's Report to the Members of Reliance Scrap Metal Merchants (Parkstone) Limited

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Chloe Mills FCA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Towngate House
2-8 Parkstone Road
Poole
Dorset
BH15 2PW

9 October 2026

Reliance Scrap Metal Merchants (Parkstone) Limited

Profit and Loss Account

Year Ended 30 April 2026

	Note	2026 £	2025 £
Turnover	3	22,608,728	24,922,840
Cost of sales		(21,052,042)	(24,223,708)
Gross profit		1,556,686	699,132
Administrative expenses		(978,940)	(773,864)
Exceptional costs	5	-	(1,083,026)
Operating profit/(loss)	4	577,746	(1,157,758)
Other interest receivable and similar income	6	42,600	24,752
Interest payable and similar expenses	7	(134,831)	(122,798)
Profit/(loss) before tax		485,515	(1,255,804)
Tax on profit/(loss)	11	(176,568)	18,459
Profit/(loss) for the financial year		308,947	(1,237,345)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Reliance Scrap Metal Merchants (Parkstone) Limited

Balance Sheet

30 April 2026

	Note	2026 £	2025 £
Fixed assets
Tangible assets	12	4,491,188	3,551,486
Investments	13	1	1
		4,491,189	3,551,487
Current assets
Stocks	14	644,418	676,183
Debtors	15	950,585	2,263,380
Cash at bank and in hand		231,350	747
		1,826,353	2,940,310
Creditors: Amounts falling due within one year	17	(2,027,552)	(3,274,937)
Net current liabilities		(201,199)	(334,627)
Total assets less current liabilities		4,289,990	3,216,860
Creditors: Amounts falling due after more than one year	17	(1,072,290)	(482,175)
Provisions for liabilities	20	(651,435)	(437,367)
Net assets		2,566,265	2,297,318
Capital and reserves
Called up share capital		627	627
Capital redemption reserve	21	373	373
Profit and loss account	21	2,565,265	2,296,318
Shareholders' funds		2,566,265	2,297,318

Approved and authorised by the Board on 8 October 2026 and signed on its behalf by:

.........................................
Mrs R Matthews
Director

Company Registration Number: 00532957

Reliance Scrap Metal Merchants (Parkstone) Limited

Statement of Changes in Equity

Year Ended 30 April 2026

	Share capital £	Capital redemption reserve £	Profit and loss account £	Total £
At 1 May 2025	627	373	2,296,318	2,297,318
Profit for the year	-	-	308,947	308,947
Dividends	-	-	(40,000)	(40,000)
At 30 April 2026	627	373	2,565,265	2,566,265

	Share capital £	Capital redemption reserve £	Profit and loss account £	Total £
At 1 May 2024	627	373	3,545,163	3,546,163
Loss for the year	-	-	(1,237,345)	(1,237,345)
Dividends	-	-	(11,500)	(11,500)
At 30 April 2025	627	373	2,296,318	2,297,318

Reliance Scrap Metal Merchants (Parkstone) Limited

Statement of Cash Flows

Year Ended 30 April 2026

	Note	2026 £	2025 £
Cash flows from operating activities
Profit/(loss) for the year		308,947	(1,237,345)
Adjustments to cash flows from non-cash items
Depreciation and amortisation	4	583,801	428,084
Loss/(profit) on disposal of tangible assets		4,680	(397,500)
Finance income	6	(42,600)	(24,752)
Finance costs	7	134,831	122,798
Income tax expense	11	176,568	(18,459)
		1,166,227	(1,127,174)
Working capital adjustments
Decrease in stocks	14	31,765	242,960
Decrease in trade debtors	15	116,595	99,954
Increase in trade creditors	17	217,069	237,389
Cash generated from operations		1,531,656	(546,871)
Income taxes (paid)/received	11	(109,585)	62,615
Net cash flow from operating activities		1,422,071	(484,256)
Cash flows from investing activities
Interest received	6	42,600	24,752
Acquisitions of tangible assets		(331,983)	(14,000)
Proceeds from sale of tangible assets		-	397,500
Net cash flows from investing activities		(289,383)	408,252
Cash flows from financing activities
Interest paid	7	(134,831)	(122,798)
Repayment of bank borrowing		(226,129)	(228,004)
Proceeds from new finance lease taken out on existing assets		549,169	-
Proceeds from bank borrowing draw downs		200,000	-
Payments to finance lease creditors		(386,433)	(360,760)
Dividends paid		(40,000)	(11,500)
Net cash flows from financing activities		(38,224)	(723,062)
Net increase/(decrease) in cash and cash equivalents		1,094,464	(799,066)
Cash and cash equivalents at 1 May		(897,703)	(98,637)
Cash and cash equivalents at 30 April		196,761	(897,703)

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

1	General information

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

The address of its registered office is:
Towngate House
2-8 Parkstone Road
Poole
Dorset
BH15 2PW

The principal place of business is:
78-86 Nuffield Road
Poole
Dorset
BH17 0RS

These financial statements were authorised for issue by the Board on 8 October 2026.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

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

These financial statements are presented in Pounds Sterling, rounded to the nearest whole pound.

Key sources of estimation uncertainty

Due to the access requirements at the yard and the large volume of metal stock held, it is not practical to weigh all stock when completing the monthly stock take procedures. The stock lines which cannot practically be weighed are instead estimated by an employee of the company (who is also the main shareholder and spouse of the Director of the company), who has considerable experience in this industry. The level of stock recorded in these financial statements are in line with this estimate. The carrying amount is £644,418 (2025: £676,183).

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

Going concern

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

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

Asset class	Depreciation method and rate
Freehold land	No depreciation
Freehold buildings	Over 50 years
Plant and machinery	15% straight line basis
Fixtures and fittings	20% straight line basis
Motor vehicles	20% straight line basis

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts within the company.

The company recognises revenue from the sale of scrap metal on dispatch of goods over the weighbridge, where it is considered that the amount of revenue can be reliably measured, and it is probable that future economic benefits will flow to the entity.

Turnover

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

	2026 £	2025 £
Sale of goods	22,608,728	24,922,840

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

4	Operating profit/(loss)

Arrived at after charging/(crediting)

	2026 £	2025 £
Depreciation expense	583,801	428,084
Foreign exchange losses	-	25,105
Loss/(profit) on disposal of property, plant and equipment	4,680	(397,500)

5	Exceptional expense

Included in exceptional expenses for 2025 is a provision against the Directors loan account balance of £1,083,026.

6	Other interest receivable and similar income

	2026 £	2025 £
Other finance income	42,600	24,752

7	Interest payable and similar expenses

	2026 £	2025 £
Interest on bank overdrafts and borrowings	41,008	41,349
Interest on obligations under finance leases and hire purchase contracts	91,550	74,833
Interest expense on other finance liabilities	2,273	6,616
	134,831	122,798

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

8	Staff costs

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

	2026 £	2025 £
Wages and salaries	1,131,069	1,156,744
Social security costs	126,362	128,059
Pension costs, defined contribution scheme	13,700	14,084
	1,271,131	1,298,887

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

	2026 No.	2025 No.
Administration and support	4	5
Production	22	23
	26	28

9	Directors' remuneration

The directors' remuneration for the year was as follows:

	2026 £	2025 £
Remuneration	178,182	173,099

10	Auditors' remuneration

	2026 £	2025 £
Audit of the financial statements	44,000	44,000

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

Taxation

Tax charged/(credited) in the profit and loss account

	2026 £	2025 £
Current taxation
UK corporation tax	51,062	88,562
UK corporation tax adjustment to prior periods	(88,562)	-
	(37,500)	88,562
Deferred taxation
Arising from origination and reversal of timing differences	214,068	(107,021)
Tax expense/(receipt) in the income statement	176,568	(18,459)

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2025 - higher than the standard rate of corporation tax in the UK) of 25% (2025 - 25%).

The differences are reconciled below:

	2026 £	2025 £
Profit/(loss) before tax	485,515	(1,255,804)
Corporation tax at standard rate	121,379	(313,951)
Decrease in UK and foreign current tax from adjustment for prior periods	(88,562)	-
Tax increase/(decrease) from effect of capital allowances and depreciation	340,465	(290,819)
Tax increase from other short-term timing differences	3,425	3,521
Effect of expense not deductible in determining taxable profit (tax loss)	1,427	381,594
Tax (decrease)/increase from effect of unrelieved tax losses carried forward	(201,196)	201,196
Tax decrease from other tax effects	(370)	-
Total tax charge/(credit)	176,568	(18,459)

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

12	Tangible assets

	Freehold land and buildings £	Plant and machinery £	Fixtures and fittings £	Motor vehicles £	Total £
Cost or valuation
At 1 May 2025	2,163,019	3,664,478	33,881	67,721	5,929,099
Additions	317,282	1,210,901	-	-	1,528,183
Disposals	-	(24,202)	-	-	(24,202)
At 30 April 2026	2,480,301	4,851,177	33,881	67,721	7,433,080
Depreciation
At 1 May 2025	111,460	2,184,228	32,919	49,006	2,377,613
Charge for the year	7,221	565,901	962	9,717	583,801
Eliminated on disposal	-	(19,522)	-	-	(19,522)
At 30 April 2026	118,681	2,730,607	33,881	58,723	2,941,892
Carrying amount
At 30 April 2026	2,361,620	2,120,570	-	8,998	4,491,188
At 30 April 2025	2,051,559	1,480,250	962	18,715	3,551,486

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

	2026 £	2025 £
Plant and machinery	2,059,149	1,401,257
Motor Vehicles	8,999	17,999
	2,068,148	1,419,256

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

13	Investments held as fixed assets

	2026 £	2025 £
Investments in subsidiaries	1	1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2026	2025
Subsidiary undertakings
Walter Shaw & Son Limited	Towngate House 2-8 Parkstone Road, Poole, Dorset, BH15 2PW	Ordinary	100%	100%

Subsidiary undertakings

Walter Shaw & Son Limited

The principal activity of Walter Shaw & Son Limited is dormant.

14

Stocks

2026
£

2025
£

Raw materials and consumables

644,418

676,183

15

Debtors

Note

2026
£

2025
£

Trade debtors

535,207

674,999

Amounts owed by related parties

24

19,345

-

Other debtors

395,929

1,588,196

Prepayments

104

185

950,585

2,263,380

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

16	Cash and cash equivalents

	2026 £	2025 £
Cash on hand	840	745
Cash at bank	46,551	-
Short-term deposits	183,959	2
	231,350	747
Bank overdrafts	(34,589)	(898,450)
Cash and cash equivalents in statement of cash flows	196,761	(897,703)

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

Creditors

	Note	2026 £	2025 £
Due within one year
Loans and borrowings	18	497,630	1,814,999
Trade creditors		561,305	489,742
Social security and other taxes		482,917	541,007
Other creditors		15,787	30,090
Accruals		399,042	181,143
Corporation tax	11	70,871	217,956
		2,027,552	3,274,937
Due after one year
Loans and borrowings	18	1,072,290	482,175

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

18	Loans and borrowings

Non-current loans and borrowings

	2026 £	2025 £

Bank borrowings	434,168	-
Finance lease liabilities	638,122	482,175
	1,072,290	482,175

Current loans and borrowings

	2026 £	2025 £

Bank borrowings	134,951	595,248
Bank overdrafts	34,589	898,450
Finance lease liabilities	328,090	321,301
	497,630	1,814,999

Secured borrowings
Bank borrowings and overdrafts due under one year of £169,540 (2025: £1,493,698) and bank borrowings due after one year of £434,168 (2025: £nil) are secured by a fixed charge on land and buildings. Finance lease liabilities due under one year of £328,090 (2025: £321,301) and due after one year of £638,122 (2025: £482,175) are secured by fixed charges over the plant and machinery to which they relate.

At 30 April 2025, the company was in breach of specific financial covenants and, as a result, the related bank borrowings were classified as current. The company was not in breach of these financial covenants at 30 April 2026 and the bank borrowings have therefore been classified according to their contractual repayment terms.

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

19	Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

	2026 £	2025 £
Not later than one year	328,089	321,303
Later than one year and not later than five years	638,122	482,175
	966,211	803,478

Operating leases

The total of future minimum lease payments is as follows:

	2026 £	2025 £
Not later than one year	136,756	175,744
Later than one year and not later than five years	153,286	280,682
Later than five years	-	9,360
	290,042	465,786

20	Deferred tax and other provisions

	Deferred tax £
At 1 May 2025	437,367
Additional provisions	214,068
At 30 April 2026	651,435

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

Reserves

Called up share capital:

Ordinary shares issued, measured at par.

Capital redemption reserve:

Amounts of ordinary shares, at par, bought back from the shareholders by the company.

Profit and loss account:

Accumulated profits/ losses less dividend distributions to shareholders.

22	Share capital

Allotted, called up and fully paid shares

	2026		2025
	No.	£	No.	£
Ordinary of £1 each	627	627	627	627

23	Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £13,700 (2025 - £14,084).

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

24	Related party transactions

Key management compensation

	2026 £	2025 £
Salaries and other short term employee benefits	332,834	327,299

Transactions with directors

2026

At 1 May 2025
£

Advances to director
£

Repayments by director
£

Loan provision
£

At 30 April 2026
£

Mrs R Matthews

Interest is charged on all amounts outstanding.

(1,068,479)

(39,634)

-

1,083,026

(25,087)

Mrs N J Hawkins

Interest is charged on all amounts outstanding.

(14,547)

(19,711)

34,258

-

-

2025

At 1 May 2024
£

Advances to director
£

Loan provision
£

At 30 April 2025
£

Mrs R Matthews

Interest is charged on all amounts outstanding.

(1,027,189)

(41,290)

1,068,479

-

Mrs N J Hawkins

Interest is charged on all amounts outstanding.

-

(14,547)

14,547

-

Interest is charged on all amounts outstanding at 3.75% (2025: 2.25%).

A provision was made against the above Director's loan account during the year ended 30 April 2025. This was treated as an exceptional item.

Reliance Scrap Metal Merchants (Parkstone) Limited

Notes to the Financial Statements

Year Ended 30 April 2026

25	Analysis of changes in net debt

	At 1 May 2025 £	Financing cash flows £	New finance leases £	At 30 April 2026 £
Cash and cash equivalents
Cash	747	230,603	-	231,350
Overdrafts	(898,450)	863,861	-	(34,589)
	(897,703)	1,094,464	-	196,761
Borrowings
Short term borrowings	(595,248)	26,129	-	(569,119)
Lease liabilities	(803,476)	386,433	(549,169)	(966,212)
	(1,398,724)	412,562	(549,169)	(1,535,331)
	(2,296,427)	1,507,026	(549,169)	(1,338,570)

2026	At 1 May 2025 £	Advances to director £	Repayments by director £	Loan provision £	At 30 April 2026 £
Mrs R Matthews
Interest is charged on all amounts outstanding.	(1,068,479)	(39,634)	-	1,083,026	(25,087)


Mrs N J Hawkins
Interest is charged on all amounts outstanding.	(14,547)	(19,711)	34,258	-	-

2025	At 1 May 2024 £	Advances to director £	Loan provision £	At 30 April 2025 £
Mrs R Matthews
Interest is charged on all amounts outstanding.	(1,027,189)	(41,290)	1,068,479	-


Mrs N J Hawkins
Interest is charged on all amounts outstanding.	-	(14,547)	14,547	-