High Peak Steels Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—8

1. General Information

High Peak Steels Limited is a private company, limited by shares, incorporated in England & Wales, registered number 01878509 . The registered office is Thornfield House, Brookfield Industrial Estate, Glossop, Derbyshire, SK13 6LQ.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The company has traded profitably in the year and has sufficient working capital to enable it to pay its debts as they fall due. The level of dividends withdrawn take into account the cashflow requirements of the company. Accordingly, the directors have prepared the accounts on a going concern basis.

2.3. Turnover

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. the following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be reliably measured;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant & Machinery	10% straight line on cost
Motor Vehicles	25% straight line on cost
Fixtures & Fittings	10% straight line on cost

The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains or losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

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High Peak Steels Limited

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2026

2.5. Leasing and Hire Purchase Contracts

Operating lesses: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.7. Interest Payable

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.8. Foreign Currencies

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign curreny transacions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value is determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monerary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

2.9. Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income or expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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High Peak Steels Limited

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2026

2.10. Pensions

The company operates a defined pension contribution scheme for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

2.11.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transactions costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 32 (2025: 34)

4. Tax on Profit

	2026	2025
	£	£
Current tax
UK Corporation Tax	25,247	(91,831 )
Prior period adjustment	7,207	-

	32,454	(91,831 )
Deferred Tax
Deferred taxation	(75,611 )	104,710


Total tax charge for the period	(43,157 )	12,879

	2026	2025
	£	£
Profit before tax	(208,380)	31,479

Breakdown of tax charge is:
Tax on profit at 25% (UK standard rate)	(52,095 )	7,869
Expenses not deductible for tax purposes	3,839	4,536
Capital allowances	-	(104,236 )
Prior period adjustment	7,207	-
Difference in tax rates	(2,108 )	104,710

Total tax charge for the period	(43,157)	12,879

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High Peak Steels Limited

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2026

5. Tangible Assets

	Plant & Machinery	Motor Vehicles	Fixtures & Fittings	Total
	£	£	£	£
Cost
As at 1 March 2025	1,468,146	1,088,882	262,071	2,819,099
Additions	11,355	12,000	-	23,355

As at 28 February 2026	1,479,501	1,100,882	262,071	2,842,454

Depreciation
As at 1 March 2025	1,167,844	307,513	261,519	1,736,876
Provided during the period	119,914	207,260	390	327,564

As at 28 February 2026	1,287,758	514,773	261,909	2,064,440

Net Book Value
As at 28 February 2026	191,743	586,109	162	778,014

As at 1 March 2025	300,302	781,369	552	1,082,223

Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

	2026	2025
	£	£
Plant & Machinery	67,523	172,602
Motor Vehicles	537,445	695,427

	604,968	868,029

6. Stocks

	2026	2025
	£	£
Stock	3,773,898	4,004,755

7. Debtors

	2026	2025
	£	£
Due within one year
Trade debtors	1,511,167	1,852,781
Other debtors	46,710	135,730

	1,557,877	1,988,511

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High Peak Steels Limited

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2026

8. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Net obligations under finance lease and hire purchase contracts	154,693	173,186
Trade creditors	1,283,173	1,139,680
Other creditors	66,776	73,060
Taxation and social security	194,079	233,250

	1,698,721	1,619,176

9. Creditors: Amounts Falling Due After More Than One Year

	2026	2025
	£	£
Net obligations under finance lease and hire purchase contracts	479,743	634,435

Secured debts

Obligations under finance lease and hire purchase contracts amounting to £634,436, (2025 £807,621) are secured against the assets to which they relate.

10. Obligations Under Finance Leases and Hire Purchase

	2026	2025
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	154,693	173,186
Later than one year and not later than five years	479,743	634,435

	634,436	807,621

	634,436	807,621

11. Deferred Taxation

The provision for deferred tax is made up as follows:

	2026	2025
	£	£
Other timing differences	187,588	263,199

12. Share Capital

	2026	2025
Allotted, called up and fully paid	£	£
10,000 Ordinary Shares of £ 1.00 each	10,000	10,000

13. Financial Instruments

Financial assets and liabilities are measured at transaction price.

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High Peak Steels Limited

Notes to the Financial Statements (continued)

For The Year Ended 28 February 2026

14. Dividends

	2026	2025
	£	£
On equity shares:
Interim dividend paid	150,000	160,000

Interim dividend paid to the holders of 10,000 £1 ordinary shares.

15. Related Party Transactions

The company was under the joint control of Mr M S Thornley and Mrs A Thornley throughout the current and previous year.

During the year, the company paid dividends of £150,000 (2025: £80,000) each to Mr M S Thornley and Mrs A Thornley.

Included in storage costs is an amount of £60,458 (2025: £54,000) paid to Mr M S Thornley and Mrs A Thornley for storage space at Oakwood Farm Estates.

Also, included within rent and rates is an amount of £71,042 (2025: £65,000) paid to High Peak Steels Pension Scheme.

As at 28 February 2026, the company owed £16,810 (2025: £9,870) to Mr M S Thornley and Mrs A Thornley jointly.

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	5		778,014		1,082,223

			778,014		1,082,223
CURRENT ASSETS
Stocks	6	3,773,898		4,004,755
Debtors	7	1,557,877		1,988,511
Cash at bank and in hand		726,989		227,270

		6,058,764		6,220,536
Creditors: Amounts Falling Due Within One Year	8	(1,698,721 )		(1,619,176 )

NET CURRENT ASSETS (LIABILITIES)			4,360,043		4,601,360

TOTAL ASSETS LESS CURRENT LIABILITIES			5,138,057		5,683,583

Creditors: Amounts Falling Due After More Than One Year	9		(479,743 )		(634,435 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	11		(187,588 )		(263,199 )

NET ASSETS			4,470,726		4,785,949

CAPITAL AND RESERVES
Called up share capital	12		10,000		10,000
Profit and Loss Account			4,460,726		4,775,949

SHAREHOLDERS' FUNDS			4,470,726		4,785,949