ELECTROSTEEL CASTINGS (UK) LIMITED

Company Registration Number:
04057880 (England and Wales)

Unaudited statutory accounts for the year ended 31 March 2025

Period of accounts

Start date: 1 April 2024

End date: 31 March 2025

ELECTROSTEEL CASTINGS (UK) LIMITED

Contents of the Financial Statements

for the Period Ended 31 March 2025

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

ELECTROSTEEL CASTINGS (UK) LIMITED

Directors' report period ended 31 March 2025

The directors present their report with the financial statements of the company for the period ended 31 March 2025

Principal activities of the company

The company is principally engaged in the supply of ductile iron pipes, fittings and ancillaries into the UK water and waste water industry.

Additional information

Business review - We continue to generate the majority of our sales and profits via our involvement in the supply of our Ductile Iron Pipes and Fittings into the UK Water and Waste Water Industry. The majority of our sales are secured under long term (varying from 3 -12 years) Framework Contracts, which are negotiated directly with the Water and Sewage Companies (WASC) or Water only Companies (WOC). 8.91% of sales were generated via contracts in Europe. The risks and opportunities for the business lie in existing long term Framework Contracts coming up for renewal, and Frameworks not currently held coming out for negotiation. However, this is very much mitigated for 25/26 as the vast majority of Utility Framework negotiations were completed during previous years. Our sales predictions for 2025/26 are projected to be similar to previous year, as activity is expected to remain consistent. Overheads and cost of sales remain under tight control by way of a rigorous suite of KPI’s, and our improvement initiative continues to provide the platform for the whole team (UK and India) to come up with the ideas we use to improve how efficiently and effectively we run our business. Having secured long term Frameworks the key future development for us all, is to deliver continued improvements in world class service to our customers in the most effective and efficient way possible. Principal risks and uncertainties - Competition - Continued global competition pressurises price levels, but we seek to mitigate this by way of the long term Framework Contracts and differentiating ourselves through the service our people provide to our customers. Raw materials and shipping - Volatility in global raw material pricing and shipping costs and availability of containers are a challenge to all. We continue to control these risks through close interaction with our strong and long established supply chain relationships. Financial risk management objectives and policies - The company uses financial instruments, other than derivatives, third party borrowings, inter-company borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company’s operations. The main risks arising from the company financial instruments are interest rate risk, liquidity risk, credit risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous periods. Interest rate risk - The company finances its operations through a mixture of retained profits, third party borrowings and intercompany borrowings. The company’s exposure to interest rate fluctuations on its borrowings is managed on a group basis by the use of both fixed and floating facilities. Liquidity risk - The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Primarily this is achieved through inter-company accounts and bank loans and similar financing. Credit risk - The company’s principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises therefore from the company’s trade debtors. In order to manage credit risk, management set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by management on a regular basis in conjunction with debt ageing, collection history and limits advised by its trade debtor insurers. Foreign currency risk - The company is exposed to transaction and translation foreign exchange risk. At this time no formal hedging of any foreign exchange risk is undertaken in the UK, but this position is reviewed on a regular basis. Trade tariff risk - Due to recent activity in this area, the company has reviewed potential impacts and concluded that none currently exist, as the business neither imports or exports through the USA in either raw materials or finished goods.



Directors

The directors shown below have held office during the whole of the period from
1 April 2024 to 31 March 2025

STEWART BAILIE
 GLENN WHEELER
 MR P LOHIA
 MR S N AGARWAL
 MR M KEJIRWAL

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
30 April 2025

And signed on behalf of the board by:
Name: STEWART BAILIE
Status: Director

ELECTROSTEEL CASTINGS (UK) LIMITED

Profit And Loss Account

for the Period Ended 31 March 2025

2025 2024


£
£
Turnover: 35,456,000 32,222,000
Cost of sales: ( 29,386,000 ) ( 24,035,000 )
Gross profit(or loss): 6,070,000 8,187,000
Distribution costs: ( 2,417,000 ) ( 2,179,000 )
Administrative expenses: ( 3,189,000 ) ( 2,708,000 )
Operating profit(or loss): 464,000 3,300,000
Interest payable and similar charges: ( 552,000 ) ( 590,000 )
Profit(or loss) before tax: (88,000) 2,710,000
Tax: ( 21,000 ) ( 691,000 )
Profit(or loss) for the financial year: (109,000) 2,019,000

ELECTROSTEEL CASTINGS (UK) LIMITED

Balance sheet

As at 31 March 2025

Notes 2025 2024


£
£
Fixed assets
Tangible assets: 3 547,000 457,000
Total fixed assets: 547,000 457,000
Current assets
Stocks: 4 14,905,000 13,478,000
Debtors: 5 7,246,000 8,190,000
Cash at bank and in hand: 371,000 444,000
Total current assets: 22,522,000 22,112,000
Creditors: amounts falling due within one year: 6 ( 15,406,000 ) ( 17,686,000 )
Net current assets (liabilities): 7,116,000 4,426,000
Total assets less current liabilities: 7,663,000 4,883,000
Provision for liabilities: ( 2,950,000 ) ( 61,000 )
Total net assets (liabilities): 4,713,000 4,822,000
Capital and reserves
Called up share capital: 1,100,000 1,100,000
Profit and loss account: 3,613,000 3,722,000
Total Shareholders' funds: 4,713,000 4,822,000

The notes form part of these financial statements

ELECTROSTEEL CASTINGS (UK) LIMITED

Balance sheet statements

For the year ending 31 March 2025 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 30 April 2025
and signed on behalf of the board by:

Name: STEWART BAILIE
Status: Director

The notes form part of these financial statements

ELECTROSTEEL CASTINGS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2025

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Tangible fixed assets depreciation policy

    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. The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using a straight-line method. Depreciation is provided on the following bases: Freehold buildings - 10% Plant & machinery - 15% to 35% Fixtures & fittings - 15% to 35% Computer equipment - 20% to 33% 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 and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.

    Other accounting policies

    Going concern Foreign currency translation Operating leases Pension Current and deferred taxation Finance costs Stocks Cash and Cash equivalents

ELECTROSTEEL CASTINGS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2025

  • 2. Employees

    2025 2024
    Average number of employees during the period 73 56

ELECTROSTEEL CASTINGS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2025

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 April 2024 487,000 739,000 228,000 371,000 1,825,000
Additions 188,000 1,000 3,000 9,000 201,000
Disposals
Revaluations
Transfers
At 31 March 2025 675,000 740,000 231,000 380,000 2,026,000
Depreciation
At 1 April 2024 228,000 626,000 166,000 348,000 1,368,000
Charge for year 45,000 40,000 8,000 18,000 111,000
On disposals
Other adjustments
At 31 March 2025 273,000 666,000 174,000 366,000 1,479,000
Net book value
At 31 March 2025 402,000 74,000 57,000 14,000 547,000
At 31 March 2024 259,000 113,000 62,000 23,000 457,000

ELECTROSTEEL CASTINGS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2025

4. Stocks

2025 2024
£ £
Stocks 14,905,000 13,478,000
Total 14,905,000 13,478,000

ELECTROSTEEL CASTINGS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2025

5. Debtors

2025 2024
£ £
Trade debtors 6,960,000 8,080,000
Prepayments and accrued income 98,000 98,000
Other debtors 188,000 12,000
Total 7,246,000 8,190,000

ELECTROSTEEL CASTINGS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2025

6. Creditors: amounts falling due within one year note

2025 2024
£ £
Bank loans and overdrafts 6,976,000 7,215,000
Trade creditors 7,470,000 7,710,000
Taxation and social security 304,000 1,585,000
Accruals and deferred income 649,000 1,159,000
Other creditors 7,000 17,000
Total 15,406,000 17,686,000