REGISTERED NUMBER: 00817600 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 March 2025

for

Hereford Galvanizers Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

Directors:

E J Hayes

Ms M B Jackson

Dr F Shallcross

D A Watkins

P Shipley

Secretary:

Ms M B Jackson

Registered office:

Westfields Trading Estate

Hereford

HR4 9NS

Registered number:

00817600 (England and Wales)

Auditors:

Acre Accountancy Limited

Statutory Auditor

Certified Accountants

Unit 2 Foley Works

Foley Trading Estate

Hereford

Herefordshire

HR1 2SF

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

Review of business

The principal activities of Hereford Galvanizers Limited throughout the year were that of hot dip galvanizing and the powder coating of mild steel products & fabrications. The principal activities of Zinco International Limited were providing technical services to the hot dip galvanizing industry and the distribution of wire & chemicals through its Quantum Group Division.

The results for the year and financial position are shown in the annexed financial statements.

Business review

The turnover for to 31/03/2025 increased to £13,633,917 (23/24 - £12,246,427) with an operating profit of £1,787,458 (23/24 - £925,228).

During the period, the Company saw good demand from its core galvanizing and powder coating customers operating in various markets, resulting in total steel processed being ahead of budget. Base prices were raised to cover increased costs. The Company regularly assesses price / margins / volumes and risk.

Turnover for Zinco International Limited increased by 111% over the previous year thanks in part to the sale of a new Licence for its kettle inspection technology. Quantum Group increased sales volumes by 56% through providing a wider product range and attracting new regular customers.

Overall, margins and returns were satisfactory.

The Directors believe, whilst the U.K. general economic climate remains challenging, demand for the services and products supplied by Hereford Galvanizers Group will be sustained.

The Board has implemented the Company's capital plans by updating infrastructure and replacing plant and machinery across all coating sites.

Unemployment rates in the U.K. remain low creating additional challenges in the recruitment / retention of personnel for all businesses. The Company awarded an above inflation increase in pay rates this year and continues to enhance its employee benefits programme as well as investing in the training & development of all employees.

The Company is working towards the British Standards accreditation of ISO 14001 and ISO45001 for its coating operations during 2025/26. The health, safety and welfare of all employees & stakeholders is important to the business and the Company continues to monitor such matters on a regular basis.

The Directors consider the results to be excellent.

Principal risks and uncertainties

The Directors and senior management team continue to assess the performance of the business on a regular basis and evaluate the likelihood and potential impact of each risk ensuring appropriate action is taken to mitigate such.

The principal risks to Company include customers, suppliers, liquidity, interest rates, commodity prices (zinc), and energy costs.

On behalf of the board:

Ms M B Jackson - Director

13 November 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2025.

Principal activities

The principal activities of the Company throughout the year was that of hot dip galvanizing and powder coatings of mild steel products & fabrications.The principal activities of our subsidiary company were those of providing technical services to the hot dip galvanizing industry. The Quantum division sells wire and chemicals that are used by galvanizers.

Dividends

The directors recommended and paid dividends in the year of £65,720 to preference shareholders (2024: £76,470) and £420,000 to ordinary shareholders (2024: £290,000).

Directors

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

E J Hayes

Ms M B Jackson

Dr F Shallcross

D A Watkins

P Shipley

Statement of directors' responsibilities

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Auditors

The auditors, Acre Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

Ms M B Jackson - Director

13 November 2025

Opinion

We have audited the financial statements of Hereford Galvanizers Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We enquired with management about the legal framework that the company operates in. We also enquired about the risk of fraud and whether they were aware of any instances of fraud.

We communicated the outcome of this risk assessment with the audit team and planned our audit work accordingly. Our work in these areas is limited to analytical procedures and inspection of relevant documentation. Where a breach of operational regulations is not disclosed to us, or it is not evident from documentation that we receive during the audit, an audit will not detect that breach.

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.

Russell John Spencer FCCA (Senior Statutory Auditor)

for and on behalf of Acre Accountancy Limited

Statutory Auditor

Certified Accountants

Unit 2 Foley Works

Foley Trading Estate

Hereford

Herefordshire

HR1 2SF

13 November 2025

TURNOVER

13,633,917

12,246,427

Cost of sales

(8,550,427

)

(8,580,729

)

GROSS PROFIT

5,083,490

3,665,698

Distribution costs

(988,396

)

(826,253

)

Administrative expenses

(2,307,636

)

(1,914,217

)

OPERATING PROFIT

4

1,787,458

925,228

Interest receivable and similar income

4,587

1,823

1,792,045

927,051

Interest payable and similar expenses

5

(90,212

)

(105,550

)

PROFIT BEFORE TAXATION

1,701,833

821,501

Tax on profit

6

(449,433

)

(230,524

)

PROFIT FOR THE FINANCIAL YEAR

1,252,400

590,977

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,252,400

590,977

Profit attributable to:

Owners of the parent

1,252,400

590,977

Total comprehensive income attributable to:

Owners of the parent

1,252,400

590,977

FIXED ASSETS

Tangible assets

9

2,332,292

1,995,177

Investments

10

-

-

2,332,292

1,995,177

CURRENT ASSETS

Stocks

11

1,189,650

1,198,745

Debtors

12

2,476,953

1,832,180

Cash at bank and in hand

1,804,144

1,825,089

5,470,747

4,856,014

CREDITORS

Amounts falling due within one year

13

(1,732,804

)

(1,633,411

)

NET CURRENT ASSETS

3,737,943

3,222,603

TOTAL ASSETS LESS CURRENT LIABILITIES

6,070,235

5,217,780

CREDITORS

Amounts falling due after more than one year

14

(785,156

)

(853,433

)

PROVISIONS FOR LIABILITIES

18

(410,268

)

(321,936

)

NET ASSETS

4,874,811

4,042,411

CAPITAL AND RESERVES

Called up share capital

19

17,840

17,840

Retained earnings

20

4,856,971

4,024,571

SHAREHOLDERS' FUNDS

4,874,811

4,042,411

The financial statements were approved by the Board of Directors and authorised for issue on 13 November 2025 and were signed on its behalf by:

D A Watkins - Director

FIXED ASSETS

Tangible assets

9

2,154,535

1,815,046

Investments

10

20,001

20,001

2,174,536

1,835,047

CURRENT ASSETS

Stocks

11

1,078,567

1,136,508

Debtors

12

2,399,752

1,754,506

Cash at bank and in hand

1,566,521

1,484,300

5,044,840

4,375,314

CREDITORS

Amounts falling due within one year

13

(1,659,648

)

(1,294,378

)

NET CURRENT ASSETS

3,385,192

3,080,936

TOTAL ASSETS LESS CURRENT LIABILITIES

5,559,728

4,915,983

CREDITORS

Amounts falling due after more than one year

14

(785,156

)

(853,433

)

PROVISIONS FOR LIABILITIES

18

(371,046

)

(279,542

)

NET ASSETS

4,403,526

3,783,008

CAPITAL AND RESERVES

Called up share capital

19

17,840

17,840

Retained earnings

20

4,385,686

3,765,168

SHAREHOLDERS' FUNDS

4,403,526

3,783,008

Company's profit for the financial year

1,040,518

584,090

The financial statements were approved by the Board of Directors and authorised for issue on 13 November 2025 and were signed on its behalf by:

D A Watkins - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

17,840

3,723,594

3,741,434

Changes in equity

Dividends

-

(290,000

)

(290,000

)

Total comprehensive income

-

590,977

590,977

Balance at 31 March 2024

17,840

4,024,571

4,042,411

Changes in equity

Dividends

-

(420,000

)

(420,000

)

Total comprehensive income

-

1,252,400

1,252,400

Balance at 31 March 2025

17,840

4,856,971

4,874,811

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

17,840

3,471,078

3,488,918

Changes in equity

Dividends

-

(290,000

)

(290,000

)

Total comprehensive income

-

584,090

584,090

Balance at 31 March 2024

17,840

3,765,168

3,783,008

Changes in equity

Dividends

-

(420,000

)

(420,000

)

Total comprehensive income

-

1,040,518

1,040,518

Balance at 31 March 2025

17,840

4,385,686

4,403,526

Cash flows from operating activities

Cash generated from operations

1

1,382,169

2,027,609

Interest paid

(15,286

)

(19,232

)

Interest element of hire purchase payments paid

(9,206

)

(9,848

)

Finance costs paid

(65,720

)

(76,470

)

Tax paid

(200,459

)

(247,202

)

Net cash from operating activities

1,091,498

1,674,857

Cash flows from investing activities

Purchase of tangible fixed assets

(677,476

)

(330,101

)

Sale of tangible fixed assets

63,261

43,156

Interest received

4,587

1,823

Net cash from investing activities

(609,628

)

(285,122

)

Cash flows from financing activities

Loan repayments in year

(50,000

)

(70,000

)

New finance agreements

255,805

-

Capital repayments in year

(78,620

)

(124,423

)

Share buyback

(210,000

)

(65,000

)

Equity dividends paid

(420,000

)

(290,000

)

Net cash from financing activities

(502,815

)

(549,423

)

(Decrease)/increase in cash and cash equivalents

(20,945

)

840,312

Cash and cash equivalents at beginning of year

2

1,825,089

984,777

Cash and cash equivalents at end of year

2

1,804,144

1,825,089

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

2025

2024

£

£

Profit before taxation

1,701,833

821,501

Depreciation charges

273,503

245,501

Loss/(profit) on disposal of fixed assets

3,597

(8,328

)

Finance costs

90,212

105,550

Finance income

(4,587

)

(1,823

)

2,064,558

1,162,401

Decrease in stocks

9,095

177,948

(Increase)/decrease in trade and other debtors

(644,773

)

606,731

(Decrease)/increase in trade and other creditors

(46,711

)

80,529

Cash generated from operations

1,382,169

2,027,609

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,804,144

1,825,089

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

1,825,089

984,777

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

1,825,089

(20,945

)

1,804,144

1,825,089

(20,945

)

1,804,144

Debt

Finance leases

(128,186

)

(177,185

)

(305,371

)

Debts falling due within 1 year

(50,000

)

-

(50,000

)

Debts falling due after 1 year

(803,867

)

260,000

(543,867

)

(982,053

)

82,815

(899,238

)

Total

843,036

61,870

904,906

1.	STATUTORY INFORMATION

Hereford Galvanizers Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

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

Positive purchased goodwill arising on acquisitions is capitalised, classified as an asset on the Balance Sheet and, where appropriate, amortised over its useful life of 5 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.

Freehold property

-

2% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

25% on cost and 15% on reducing balance

Motor vehicles

-

25% on reducing balance and 20% on reducing balance

Stocks

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 items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

Financial instruments are classified and accounted for according to the substance of the contractual arrangement. They are classified as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Taxation

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

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

Pension costs and other post-retirement benefits

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

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,911,673

3,799,416

Social security costs

387,146

356,496

Other pension costs

177,790

139,951

4,476,609

4,295,863

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

2025

2024

Production staff

89

84

Administration staff

21

20

Directors

5

5

115

109

2025

2024

£

£

Directors' remuneration

353,862

419,880

Directors' pension contributions to money purchase schemes

49,307

35,075

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

162,359

152,114

Pension contributions to money purchase schemes

23,719

17,385