REGISTERED NUMBER: 03031502 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025

FOR

BENFLEET SCRAP CO LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Statement of Financial Position

8

Company Statement of Financial Position

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Statement of Cash Flows

12

Notes to the Consolidated Statement of Cash Flows

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

R B Leeman

L B Leeman

SECRETARY:

L B Leeman

REGISTERED OFFICE:

Second Floor South

The Fitted Rigging House

Anchor Wharf, The Historic Dockyard

Chatham

Kent

ME4 4TZ

REGISTERED NUMBER:

03031502 (England and Wales)

AUDITORS:

Carleys

Statutory Auditor

Second Floor South

The Fitted Rigging House

The Historic Dockyard

Chatham

Kent

ME4 4TZ

BANKERS:

Lloyds TSB Bank plc

34 High Street

Grays

Essex

RM17 6LZ

SOLICITORS:

Cripps LLP

Wallside House

12 Mount Ephraim Road

Tunbridge Wells

Kent

TN1 1EG

The directors present their strategic report of the company and the group for the year ended 28 February 2025.

REVIEW OF BUSINESS

The group operates mainly from Caxton House , Basildon, Essex.

The market has been difficult but the directors have continued to explore opportunities to invest and expand the operations of the group throughout the year. The group has maintained a strong financial position, with large reserves held of liquid funds as at the balance sheet date.

The group is aware of its social and environmental responsibilities and continually seek ways to improve their environment policies and investing in new technologies to reduce it's carbon footprint.

Fair review of business and key performance indicators

The directors consider that the key financial performance indicators (KPIs) are those factors by reference to which the performance, development and strength of the group's business can be measured by its members. These KPIs comprise turnover, gross profit percentage, operating profit and net assets.

- Turnover for the year decreased by 20.12% to £31.21 million (2023: increased by 12.04% to £39.07 million).

- Gross profit percentage decreased to 10.15% (2023: decreased to 13.84%).

- Operating loss for the year was £0.59 million (2023: operating profit £2.20 million).

- Net current assets decreased to £7.34 million (2023: decreased to £7.40 million).

Principal risks and uncertainties

The operations and management of the business are subject to a number of risks. These risks are reviewed by the directors on an ongoing basis. The main risks identified by the director are as follows:-

- Scrap prices are fixed by the end users and reflect supply and demand worldwide: as a result prices can be

volatile and may fluctuate on a daily basis.

- Scrap demand depends on both domestic and overseas levels of steel production and currency

which in turn is closely linked to economic conditions.

- Possible scrap shortage.

- Continuing regulation of the industry will significantly increase the cost of compliance.

- High transport costs.

- Fluctuation in exchange rates, which affect exports and scrap prices.

The group maintains a high level of liquid funds to mitigate some of the uncertainties in the business environment in which it operates.

Financial risk, management objective and policies

The group's principal financial instruments comprise cash balances. The group has no bank loans.

The group has taken action to mitigate its liquidity risk by making sure all liabilities are paid on time and the group's cash has been spread over different financial institutions.

ON BEHALF OF THE BOARD:

R B Leeman - Director

28 November 2025

The directors present their report with the financial statements of the company and the group for the year ended 28 February 2025.

DIVIDENDS

The total distribution of dividends for the year ended 28 February 2025 will be £ 1,000 .

DIRECTORS

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

R B Leeman

L B Leeman

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

R B Leeman - Director

28 November 2025

Opinion

We have audited the financial statements of Benfleet Scrap Co Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 28 February 2025 and of the group's loss 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, our approach was as follows:

- we obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that are applicable to the company and of how the company is complying with those frameworks;

- we enquired of management about their own identification and assessment of the risks of irregularities, including any known instances of fraud;

- we discussed matters concerning non-compliance with laws and regulations and how fraud might occur including assessment of how the financial statements might be susceptible to fraud.

As a result of these procedures we consider that the most significant laws and regulations relating to the financial statements are FRS102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to enable us to detect non-compliance with significant laws and regulations which may have a material impact on the financial statements which included reviewing disclosures within the financial statements and inspecting correspondence with tax authorities.

We considered the risk of fraud through management override and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. In response, we incorporated testing of the appropriateness of journal entries, assessing judgements made by management in making accounting estimates and evaluating the business rationale for any significant unusual transactions or those outside the normal course of business.

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.

Claire Ralph (Senior Statutory Auditor)

for and on behalf of Carleys

Statutory Auditor

Second Floor South

The Fitted Rigging House

The Historic Dockyard

Chatham

Kent

ME4 4TZ

28 November 2025

TURNOVER

3

34,680,206

31,207,447

Cost of sales

(31,262,163

)

(28,041,158

)

GROSS PROFIT

3,418,043

3,166,289

Administrative expenses

(3,683,612

)

(3,758,100

)

OPERATING LOSS

5

(265,569

)

(591,811

)

Income from interest in associated undertakings

(362

)

(344

)

Interest receivable and similar income

6

130,652

129,154

(135,279

)

(463,001

)

Interest payable and similar expenses

7

(19,848

)

(19,017

)

LOSS BEFORE TAXATION

(155,127

)

(482,018

)

Tax on loss

8

63,914

115,129

LOSS FOR THE FINANCIAL YEAR

(91,213

)

(366,889

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(91,213

)

(366,889

)

Loss attributable to:

Owners of the parent

(126,354

)

(411,478

)

Non-controlling interests

35,141

44,589

(91,213

)

(366,889

)

Total comprehensive income attributable to:

Owners of the parent

(126,355

)

(411,478

)

Non-controlling interests

35,142

44,589

(91,213

)

(366,889

)

FIXED ASSETS

Tangible assets

11

5,471,611

5,432,840

Investments

12

Interest in associate

370,851

371,213

Investment property

13

3,670,000

3,670,000

9,512,462

9,474,053

CURRENT ASSETS

Stocks

14

1,737,404

1,342,882

Debtors

15

7,745,730

4,156,390

Cash at bank and in hand

7,071,708

8,232,189

16,554,842

13,731,461

CREDITORS

Amounts falling due within one year

16

(9,496,806

)

(6,395,098

)

NET CURRENT ASSETS

7,058,036

7,336,363

TOTAL ASSETS LESS CURRENT LIABILITIES

16,570,498

16,810,416

CREDITORS

Amounts falling due after more than one year

17

(165,976

)

(249,767

)

PROVISIONS FOR LIABILITIES

19

(1,513,287

)

(1,577,202

)

NET ASSETS

14,891,235

14,983,447

CAPITAL AND RESERVES

Called up share capital

20

500

500

Retained earnings

21

13,323,085

13,450,439

SHAREHOLDERS' FUNDS

13,323,585

13,450,939

NON-CONTROLLING INTERESTS

1,567,650

1,532,508

TOTAL EQUITY

14,891,235

14,983,447

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

R B Leeman - Director

FIXED ASSETS

Tangible assets

11

5,471,611

5,432,840

Investments

12

2,683,355

2,683,355

Investment property

13

-

-

8,154,966

8,116,195

CURRENT ASSETS

Stocks

14

1,737,404

1,342,882

Debtors

15

7,705,329

4,147,581

Cash at bank and in hand

6,224,237

7,472,806

15,666,970

12,963,269

CREDITORS

Amounts falling due within one year

16

(9,460,175

)

(6,361,658

)

NET CURRENT ASSETS

6,206,795

6,601,611

TOTAL ASSETS LESS CURRENT LIABILITIES

14,361,761

14,717,806

CREDITORS

Amounts falling due after more than one year

17

(165,976

)

(249,767

)

PROVISIONS FOR LIABILITIES

19

(915,064

)

(978,978

)

NET ASSETS

13,280,721

13,489,061

CAPITAL AND RESERVES

Called up share capital

20

500

500

Retained earnings

21

13,280,221

13,488,561

SHAREHOLDERS' FUNDS

13,280,721

13,489,061

Company's loss for the financial year

(207,340

)

(477,298

)

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

R B Leeman - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 March 2023

500

13,861,917

13,862,417

1,487,919

15,350,336

Changes in equity

Total comprehensive income

-

(411,478

)

(411,478

)

44,589

(366,889

)

Balance at 29 February 2024

500

13,450,439

13,450,939

1,532,508

14,983,447

Changes in equity

Dividends

-

(1,000

)

(1,000

)

-

(1,000

)

Total comprehensive income

-

(126,354

)

(126,354

)

35,142

(91,212

)

Balance at 28 February 2025

500

13,323,085

13,323,585

1,567,650

14,891,235

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2023

500

13,965,859

13,966,359

Changes in equity

Total comprehensive income

-

(477,298

)

(477,298

)

Balance at 29 February 2024

500

13,488,561

13,489,061

Changes in equity

Dividends

-

(1,000

)

(1,000

)

Total comprehensive income

-

(207,340

)

(207,340

)

Balance at 28 February 2025

500

13,280,221

13,280,721

Cash flows from operating activities

Cash generated from operations

1

600,996

1,331,350

Interest element of hire purchase payments paid

(19,848

)

(19,017

)

Tax paid

-

238,747

Net cash from operating activities

581,148

1,551,080

Cash flows from investing activities

Purchase of tangible fixed assets

(1,323,705

)

(1,309,454

)

Sale of tangible fixed assets

2,042

140,387

Interest received

130,652

129,154

Dividends received

(362

)

(344

)

Net cash from investing activities

(1,191,373

)

(1,040,257

)

Cash flows from financing activities

Capital repayments in year

(32,311

)

283,855

Amount withdrawn by directors

(516,945

)

(382,401

)

Equity dividends paid

(1,000

)

-

Net cash from financing activities

(550,256

)

(98,546

)

(Decrease)/increase in cash and cash equivalents

(1,160,481

)

412,277

Cash and cash equivalents at beginning of year

2

8,232,189

7,819,912

Cash and cash equivalents at end of year

2

7,071,708

8,232,189

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

2025

2024

£

£

Loss before taxation

(155,127

)

(482,018

)

Depreciation charges

1,284,892

1,317,269

(Profit)/loss on disposal of fixed assets

(2,000

)

26,007

Interest in associate undertakings

362

344

Finance costs

19,848

19,017

Finance income

(130,290

)

(128,810

)

1,017,685

751,809

Increase in stocks

(394,522

)

(51,965

)

(Increase)/decrease in trade and other debtors

(3,589,340

)

1,087,314

Increase/(decrease) in trade and other creditors

3,567,173

(455,808

)

Cash generated from operations

600,996

1,331,350

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 28 February 2025

28.2.25

1.3.24

£

£

Cash and cash equivalents

7,071,708

8,232,189

Year ended 29 February 2024

29.2.24

1.3.23

£

£

Cash and cash equivalents

8,232,189

7,819,912

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.24

Cash flow

At 28.2.25

£

£

£

Net cash

Cash at bank and in hand

8,232,189

(1,160,481

)

7,071,708

8,232,189

(1,160,481

)

7,071,708

Debt

Finance leases

(437,594

)

32,311

(405,283

)

(437,594

)

32,311

(405,283

)

Total

7,794,595

(1,128,170

)

6,666,425

1.	STATUTORY INFORMATION

Benfleet Scrap Co Limited is a private company, limited by shares, registered in England and Wales. The Company's registered number and registered address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Statement of compliance

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

Basis of preparing financial statements

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the statement of comprehensive income.

The financial statements are presented in Sterling, which is the functional currency of the entity.

Basis of consolidation

The consolidated financial statements comprise the accounts of Benfleet Scrap Co Limited and its subsidiary undertaking, P W Leeman Limited, to 28th February 2024 prepared using the purchase method in accordance with FRS102. Intra group transactions and balances have been eliminated on consolidation.

Significant judgements and estimates

The useful economic life of the group's fixed assets have been estimated in line with the depreciation policies explained below.

The fair value of the group's investment property has been estimated based on a previous valuation completed by a Chartered Surveyor and the director's belief that there have been no impairments since then.

When valuing the year end stock the directors have estimated that there is no provision for stock obsolescence required as the nature of the stock is scrap metal and stock is only held on a short term basis.

Revenue recognition

Revenue refers to the amounts earned from the group's principal activity that was mainly the sale of scrap metal, plus amounts receivable for rent.

The revenue shown in the income statement represents amounts invoiced during the year, exclusive of Value Added Tax.

Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant & machinery - 20% on reducing balance & 10% on cost

Motor vehicles - 25% on reducing balance

Short Leasehold - Amortised over period of lease or amortised at 20% on a straight line basis

Investments in associates

Associate undertakings are accounted for using the equity method in accordance with FRS102.

Investment property

Investment properties are included in the financial statements at fair value. Gains and losses are recognised in the income statement. Deferred taxation is provided on these gains and losses at the rate expected to apply when the properties are sold.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items. The nature of the company's stock are scrap metal.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either 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.

The group has a long-term financial asset that is recognised at amortised cost. More details can be found in the related party disclosure note.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 the profit and loss account on a straight line basis over the period of the lease.

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Debtors

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

Creditors

Short term trade 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.