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 unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102 "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 The level of dividends withdrawn take into account the cashflow requirements of the company.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.
Significant judgements and estimations
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Judgements are applied in the provision against stock and trade debtors and the estimate of useful economic lives of fixed assets.
2.4.
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.
2.5.
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 |
|
| Motor Vehicles |
|
| Fixtures & Fittings |
|
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.
High Peak Steels Limited
Notes to the Financial Statements (continued)
For The Year Ended 28 February 2025
2.6.
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.
2.7.
Stocks and Work in Progress
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is 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.
2.8.
Cash and Cash Equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
2.9.
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.
2.10.
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.
High Peak Steels Limited
Notes to the Financial Statements (continued)
For The Year Ended 28 February 2025
2.11.
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.
2.12.
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.
2.13.
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.
Operating Profit
The operating profit is stated after charging:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bad debts | 17,342 | 11,822 | |
| Depreciation of tangible fixed assets |
|
|
|
High Peak Steels Limited
Notes to the Financial Statements (continued)
For The Year Ended 28 February 2025
4.
Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Audit Services | |||
| Audit of the company's financial statements |
|
|
|
5.
Staff Costs
Staff costs, including directors' remuneration, were as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Wages and salaries |
|
|
|
| Social security costs |
|
|
|
| Other pension costs |
|
|
|
|
|
|
||
6.
Average Number of Employees
Average number of employees, including directors, during the year was: 34 (2024: 34)
7.
Directors' remuneration
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Emoluments |
|
|
|
8.
Interest Payable and Similar Charges
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bank loans and overdrafts |
|
|
|
| Finance charges payable under finance leases and hire purchase contracts | 41,137 | 16,967 | |
| Late payment tax charges | - |
|
|
| 41,601 | 41,446 | ||
9.
Tax on Profit
|
The tax charge on the profit for the year was as follows:
|
|||
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Current tax | |||
| UK Corporation Tax |
( |
|
|
| Deferred Tax | |||
| Deferred taxation |
|
|
|
| Total tax charge for the period |
|
|
|
|
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
|
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...CONTINUED
High Peak Steels Limited
Notes to the Financial Statements (continued)
For The Year Ended 28 February 2025
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Profit before tax | 31,479 | 692,381 | |
| Tax on profit at 25% (UK standard rate) |
|
|
|
| Expenses not deductible for tax purposes |
|
|
|
| Capital allowances |
( |
( |
|
| Difference in tax rates |
|
|
|
| Total tax charge for the period | 12,879 | 190,194 | |
|
Tax refund relates to a carry back loss relief for taxable losses arising in the current year. 'Difference in tax rates' refers to Deferred Tax in the year.
|
|||
10.
Tangible Assets
| Plant & Machinery | Motor Vehicles | Fixtures & Fittings | Total | |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Cost | ||||
| As at 1 March 2024 |
|
|
|
|
| Additions |
|
|
|
|
| Disposals |
|
( |
|
( |
| As at 28 February 2025 |
|
|
|
|
| Depreciation | ||||
| As at 1 March 2024 |
|
|
|
|
| Provided during the period |
|
|
|
|
| Disposals |
|
( |
|
( |
| As at 28 February 2025 |
|
|
|
|
| Net Book Value | ||||
| As at 28 February 2025 |
|
|
|
|
| As at 1 March 2024 |
|
|
|
|
Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Plant & Machinery |
|
|
|
| Motor Vehicles |
|
|
|
|
|
|
||
11.
Stocks
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Stock |
|
|
|
High Peak Steels Limited
Notes to the Financial Statements (continued)
For The Year Ended 28 February 2025
12.
Debtors
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
|
|
|
| Other debtors | 135,730 | 46,702 | |
|
|
|
||
13.
Creditors: Amounts Falling Due Within One Year
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Net obligations under finance lease and hire purchase contracts |
|
|
|
| Trade creditors |
|
|
|
| Bank loans and overdrafts | - |
|
|
| Other creditors | 9,870 | 11,767 | |
| Corporation tax | - |
|
|
| Taxation and social security | 233,250 | 253,360 | |
| Accruals and deferred income | 63,190 | 78,639 | |
|
|
|
||
14.
Creditors: Amounts Falling Due After More Than One Year
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Net obligations under finance lease and hire purchase contracts |
|
|
|
Secured debts
Obligations under finance lease and hire purchase contracts amounting to £807,621, (2024 £218,594) are secured against the assets to which they relate.
15.
Obligations Under Finance Leases and Hire Purchase
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| The future minimum finance lease payments are as follows: | |||
| Not later than one year |
|
|
|
| Later than one year and not later than five years |
|
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|
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16.
Deferred Taxation
The provision for deferred tax is made up as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Other timing differences | 263,199 | 158,489 | |
Other timing differences are made up of accelerated capital allowances.
High Peak Steels Limited
Notes to the Financial Statements (continued)
For The Year Ended 28 February 2025
17.
Provisions for Liabilities
| Deferred Tax | Total | |
|---|---|---|
| £ | £ | |
| As at 1 March 2024 |
|
158,489 |
| Balance at 28 February 2025 |
|
158,489 |
19.
Financial Instruments
The company has the following financial instruments:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Financial assets | |||
| Financial assets measured at fair value through profit and loss | 2,177,222 | 1,925,710 | |
| Financial liabilities | |||
| Financial liabilities measured at fair value through profit and loss | 2,020,362 | 1,977,150 | |
Financial assets and liabilities are measured at transaction price.
20.
Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Not later than one year |
|
|
|
| Later than one year and not later than five years |
|
|
|
|
|
|
||
|
2025
|
2024
|
||
|
Motor Vehicles
|
£
|
£
|
|
|
Not later than 1 year
|
1,779
|
9,080
|
|
|
Later than 1 year and not later than 5 years
|
1,779
|
||
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|
|
||
|
1,779
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none">
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|
10,859
|
21.
Pension Commitments
The company operates a defined contribtuion pension scheme. The assets of the scheme are hled seperately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £19,788 (2024: £21,277).
High Peak Steels Limited
Notes to the Financial Statements (continued)
For The Year Ended 28 February 2025
22.
Dividends
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| On equity shares: | |||
| Interim dividend paid |
|
|
|
Interim dividend paid to the holders of 10,000 £1 ordinary shares.
23.
Related Party Disclosures
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 £80,000 (2024: £135,000) each to Mr M S Thornley and Mrs A Thornley.
Included in storage costs is an amount of £54,000 (2024: £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 £65,000 (2024: £65,000) paid to High Peak Steels Pension Scheme.
As at 28 February 2025, the company owed £9,870 (2024: £11,767) to Mr M S Thornley and Mrs A Thornley jointly.