Company registration number 05043631 (England and Wales)
CROW METALS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
CROW METALS LIMITED
COMPANY INFORMATION
Directors
W C Wakefield
J W Wakefield
Secretary
W C Wakefield
Company number
05043631
Registered office
Old Station Road
Loughton
Essex
IG10 4PL
Auditors
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
Principal business address
Crow Lane
Romford
Essex
RM7 0EE
CROW METALS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
CROW METALS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -
The directors present the strategic report for the year ended 31 March 2022.
Fair review of the business
Turnover has
increased by £
20.4
m
, representing a 41%
increase on 202
1. The turnover
increase has been due to a recovery in market activity, caused by the increase in scrap metal prices.
The directors consider the gross profit margin to be a key performance indicator which has fallen slightly to 4.67% (20
2
1: 5.42%). The financial position at the year end remains strong. The business continues to monitor staff numbers and employs an experienced management team who are managing the business in a manner that ensures the company will perform profitably and provide quality to our customers.
Principal risks and uncertainties
The risk implications of business decisions affecting the company are considered by the director. The director assesses these risks on a regular basis to ensure that any risks arising from changes in the company’s operations to the external environment are identified and appropriately managed. The individual risks have been categorised into the following areas:
-
laws and regulations
;
- taxation;
- financing;
- economic climate;
- health and safety
The nature of the specific risk areas and related controls are as follows:
Laws and regulations
risk
The
adherence to laws and regulations are a priority of the company. The company also ensures that it complies with the requirements of the environmental agency.
Taxation risk
The company is exposed to financial risks from increases in tax rates and changes to the basis of taxation including corporation tax and VAT.
Financing risk
The company’s principal financial instrument is cash and hire purchase. The main purpose of this instrument is to manage the company’s funding and liquidity requirements. The company has other financial assets and liabilities such as trade debtors and trade creditors, which arise directly from its operations.
Economic climate
The directors have identified and evaluated risks and uncertainties and has controls in place to mitigate these. Responsibility for management of each key risk is identified and delegated. The company has limited exposure to the risks of the current economic climate that could lower the company’s revenues and operating results in the future.
Health and safety
Health and safety are taken as a priority by the company. The risk of non-compliance with health and safety legislation is minimised through training, development and review policies and procedures to maintain higher standards.
CROW METALS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
Other performance indicators
The directors continue to seek long term improvements in the performance of the company. The company has been able to overcome the industry wide obstacles faced by COVID-19, which is reflected by the improved revenue and profits in the year ended 31 March 202
2
.
To maintain business relationships with customers continues to offer normal credit terms, where customers had difficulties paying due to COVID-19.
The directors have also implemented measures to comply with the environmental agency requirements and considered the feedback by the local community to reduce environmental impacts.
The company endeavours to maintain a high standard of operations and business conduct
. The company continues to treat its members fairly.
COVID-19
In light of the COVID-19 pandemic, and the likely expected level of economic disruption that it will cause, the
d
irectors have considered the impact this will have on the
c
ompany's future prospects.
At the close of the 202
2
financial year, the
c
ompany held a significant amount of liquid funds amounting to £3
76,681
. There
was
limited impact from COVID-19 within management’s forecasts, however the
c
ompany will continue to assess and adapt to meet the challenge.
W C Wakefield
Director
10 February 2023
CROW METALS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2022.
Principal activities
The principal activity of the company continued to be that of supply of and recycling ferrous and non
-
ferrous metals.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
W C Wakefield
J W Wakefield
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £122,000. The directors do not recommend payment of a final dividend.
Auditors
The auditor
s
, Gerald Edelman
LLP
, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditors
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditors
are unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditors
are aware of that information.
CROW METALS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -
Going concern
Having reviewed the company’s financial forecasts and expected future cash flows, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing these financial statements.
Based on the considerations set out above, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
On behalf of the board
W C Wakefield
Director
10 February 2023
CROW METALS LIMITED
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF CROW METALS LIMITED
- 5 -
Opinion
We have audited the financial statements of Crow Metals Limited (the 'company') for the year ended 31 March 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 company's affairs as at 31 March 2022 and of its 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.
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
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CROW METALS LIMITED
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF CROW METALS LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
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 directors'
r
esponsibilities
s
tatement, 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 is 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 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 company or to cease operations, or have
no realistic alternative but to do so.
Auditor's 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 an
auditor's
report 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 planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.
The extent to which the audit was considered capable of detecting irregularities including fraud
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
-
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
-
Enquiring of management of whether they are aware of any non-compliance with laws and regulations
, in particular, environmental Agency regulations.
-
Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud.
-
Enquiring of management their internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.
-
Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in posting of unusual journals.
-
Obtaining understanding of the legal and regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we considered in this context included UK Companies Act,
Environmental Agency Regulations,
tax legislation, employment law
, data protection, anti-bribery
and
h
ealth and
s
afety.
CROW METALS LIMITED
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF CROW METALS LIMITED
- 7 -
Audit response to risks identified
Fraud due to management override
To address the risk of fraud through management bias and override of controls, we:
-
Performed analytical procedures to identify any unusual or unexpected relationships.
-
Audited the risk of management override of controls, including through testing journal entries for appropriateness.
Irregularities and non-compliance with laws and regulations
In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but are not limited to:
-
Agreeing financial statements disclosures to underlying supporting documentation
-
Enquiring of management as to actual and potential litigation claims.
-
Enquiry of management with any non-compliance with Environment Agency regulations.
-
Enquiry of management as to whether there has been any disputes with HMRC.
The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance. Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report 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.
Hiten Patel FCCA (Senior Statutory Auditor)
for and on behalf of Gerald Edelman LLP
10 February 2023
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
CROW METALS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
70,429,674
49,987,624
Cost of sales
(67,143,628)
(47,277,734)
Gross profit
3,286,046
2,709,890
Administrative expenses
(2,085,816)
(1,844,398)
Other operating income
97,943
928,639
Operating profit
5
1,298,173
1,794,131
Interest receivable and similar income
7
29,853
27,963
Interest payable and similar expenses
8
(4,594)
(4,214)
Profit before taxation
1,323,432
1,817,880
Tax on profit
9
(208,339)
(344,716)
Profit for the financial year
1,115,093
1,473,164
Other comprehensive income
-
-
Total comprehensive income for the year
1,115,093
1,473,164
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CROW METALS LIMITED
BALANCE SHEET
AS AT 31 MARCH 2022
31 March 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
820,602
862,461
Current assets
Stocks
12
1,240,850
1,720,512
Debtors
13
6,914,111
6,735,420
Cash at bank and in hand
376,681
343,307
8,531,642
8,799,239
Creditors: amounts falling due within one year
14
(2,858,315)
(4,331,826)
Net current assets
5,673,327
4,467,413
Total assets less current liabilities
6,493,929
5,329,874
Creditors: amounts falling due after more than one year
15
(408,650)
(238,081)
Provisions for liabilities
Deferred tax liability
18
144,038
143,645
(144,038)
(143,645)
Net assets
5,941,241
4,948,148
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
5,941,141
4,948,048
Total equity
5,941,241
4,948,148
The financial statements were approved by the board of directors and authorised for issue on 10 February 2023 and are signed on its behalf by:
W C Wakefield
Director
Company Registration No. 05043631
CROW METALS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2020
100
3,709,578
3,709,678
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
1,473,164
1,473,164
Dividends
10
-
(234,694)
(234,694)
Balance at 31 March 2021
100
4,948,048
4,948,148
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
1,115,093
1,115,093
Dividends
10
-
(122,000)
(122,000)
Balance at 31 March 2022
100
5,941,141
5,941,241
CROW METALS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
502,964
250,930
Interest paid
(4,594)
(4,214)
Income taxes (paid)/refunded
(251,723)
129,859
Net cash inflow from operating activities
246,647
376,575
Investing activities
Purchase of tangible fixed assets
(108,758)
(303,961)
Proceeds on disposal of tangible fixed assets
31,750
Repayment of loans
(299,224)
(888)
Interest received
29,853
27,963
Net cash used in investing activities
(346,379)
(276,886)
Financing activities
Bank loans issued
300,000
Payment of finance leases obligations
(44,894)
220,256
Dividends paid
(122,000)
(234,694)
Net cash generated from/(used in) financing activities
133,106
(14,438)
Net increase in cash and cash equivalents
33,374
85,251
Cash and cash equivalents at beginning of year
343,307
258,056
Cash and cash equivalents at end of year
376,681
343,307
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 12 -
1
Accounting policies
Company information
Crow Metals Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Old Station Road, Loughton, Essex, IG10 4PL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover comprises revenue recognised by the company in respect of the supply of recycling ferrous and non ferrous metals exclusive of VAT. Sales of ferrous and non ferrous metals are recognised on the date of delivery.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings leasehold
10% reducing balance
Plant and machinery
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 13 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises cost of goods that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less cost to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 14 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 16 -
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
1.16
Contributions to employee benefit trust
The company has established an Employee Benefit Trust ("EBT") for the benefit of certain employees. In accordance with UITF 32, until such time as the assets of the EBT vest unconditionally with the employees, the assets and liabilities of the EBT are included within the relevant assets and liabilities of the company.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2022
2021
£
£
Turnover analysed by class of business
For the provision of ferrous and non-ferrous metals
70,429,674
49,987,624
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
3
Turnover and other revenue
(Continued)
- 17 -
2022
2021
£
£
Other significant revenue
Interest income
29,853
27,963
Grants received
169,799
Rental income
97,943
132,275
VAT Refund from HMRC
-
621,157
Other income
-
5,408
2022
2021
£
£
Turnover analysed by geographical market
UK
26,534,778
19,410,417
Europe
35,317,949
22,673,369
Rest of the world
8,576,947
7,903,838
70,429,674
49,987,624
Grants received
in the year ended 2021
relate to CJRS income from the furlough of employees.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Office and workshop staff
32
34
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
1,059,709
968,823
Social security costs
104,390
95,125
Pension costs
22,649
20,255
1,186,748
1,084,203
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 18 -
5
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,828
(1,569)
Government grants
(169,799)
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
18,000
Depreciation of owned tangible fixed assets
117,756
118,361
Depreciation of tangible fixed assets held under finance leases
24,317
23,502
(Profit)/loss on disposal of tangible fixed assets
(23,206)
6,356
Cost of stocks recognised as an expense
66,169,139
46,485,326
Operating lease charges
150,000
150,000
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to a loss of £1,828 (2021 a gain of £1,569).
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
19,414
15,714
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
961
186
Other interest income
28,892
27,777
Total income
29,853
27,963
Investment income includes the following:
Interest income
961
186
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
4,459
4,214
Other finance costs:
Other interest
135
4,594
4,214
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 19 -
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
207,947
293,379
Deferred tax
Origination and reversal of timing differences
392
51,337
Total tax charge
208,339
344,716
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
1,323,432
1,817,880
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
251,452
345,397
Tax effect of expenses that are not deductible in determining taxable profit
1,804
1,310
Gains not taxable
(4,409)
Permanent capital allowances in excess of depreciation
(29,176)
(61,878)
Depreciation on assets not qualifying for tax allowances
26,994
26,954
Research and development tax credit
(38,718)
(18,404)
Deferred tax adjustments
392
51,337
Taxation charge for the year
208,339
344,716
10
Dividends
2022
2021
£
£
Interim paid
122,000
234,694
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 20 -
11
Tangible fixed assets
Land and buildings leasehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2021
320,452
1,430,027
447,254
2,197,733
Additions
11,980
96,778
108,758
Disposals
(90,920)
(12,500)
(103,420)
At 31 March 2022
332,432
1,435,885
434,754
2,203,071
Depreciation and impairment
At 1 April 2021
111,507
1,103,430
120,335
1,335,272
Depreciation charged in the year
21,417
84,840
35,816
142,073
Eliminated in respect of disposals
(87,320)
(7,556)
(94,876)
At 31 March 2022
132,924
1,100,950
148,595
1,382,469
Carrying amount
At 31 March 2022
199,508
334,935
286,159
820,602
At 31 March 2021
208,945
326,597
326,919
862,461
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2022
2021
£
£
Plant and machinery
70,506
Motor vehicles
252,651
276,968
252,651
347,474
12
Stocks
2022
2021
£
£
Ferrous & Non-Ferrous Metals
1,240,850
1,720,512
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 21 -
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
4,375,260
4,371,002
Other debtors
2,484,804
2,315,548
Prepayments and accrued income
54,047
48,870
6,914,111
6,735,420
Other D
ebtors includes an amount of £750,000 (2020: £750,000) which is due after more than one year.
In 2010, the company established an Employee Benefit Trust ("EBT"), which has been advanced loans of £750,000 in previous years. As at the balance sheet date this amount was still due to the company by the EBT and is included in other debtors due after more than one year.
14
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
16
50,000
Obligations under finance leases
17
83,322
48,785
Trade creditors
1,795,839
2,460,219
Corporation tax
207,947
251,723
Other taxation and social security
35,522
27,350
Other creditors
565,303
1,519,159
Accruals and deferred income
120,382
24,590
2,858,315
4,331,826
The bank borrowings are secured by a fixed and floating charge over the assets of the company by Barclays Bank Plc and a limited guarantee given by W C Wakefield for £300,000.
15
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
16
250,000
Obligations under finance leases
17
158,650
238,081
408,650
238,081
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 22 -
16
Loans and overdrafts
2022
2021
£
£
Bank loans
300,000
Payable within one year
50,000
Payable after one year
250,000
The above relates to a £300,000 Coronavirus Business Interruption Loan (CBIL) issued by Barclays Bank on the 23rd April 2021. This is to be repaid over 60 installments ending in May 2027. A 12 month capital repayment holiday was in place from the first drawdown until May 2022. 80% of this loan, being £240,000, is guaranteed by the UK Government.
17
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
83,322
48,785
In two to five years
158,650
238,081
241,972
286,866
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
144,038
143,645
2022
Movements in the year:
£
Liability at 1 April 2021
143,645
Charge to profit or loss
393
Liability at 31 March 2022
144,038
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
18
Deferred taxation
(Continued)
- 23 -
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
19
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,649
20,255
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
150,000
150,000
22
Related party transactions
The director W C Wakefield has given the bank, in respect of an overdraft facility, a limited guarantee for the total sum of £300,000 (202
1
: £300,000).
At the year end a net balance of £
108,733
(202
1
: £
91,328
) was due from Crow Skip Hire Limited, a company controlled by J W Wakefield.
Management fees were charged to Crow Skip Hire in the year of £10,878 (2021: 14,222). Purchases from Crow Skip Hire Limited totalled £9,547 (2021: £9,926).
At the year end, £750,000 (202
1
: £750,000) was due from the Employee Benefit Trust, of which directors are the beneficiaries.
During the year the company used premises owned by its pension fund. The company was charged rent of £150,000 (202
1
: £150,000) by the pension fund.
During the year the company received Nil in rental fees from Crow Cable Processing Limited (2021: £38,050), a company under common control of the director J Wakefield. No rental fees were charged to Crow Cable in this period. There were also sales of £420 (2021: £2,483) and purchases of £41,564 (2021: £4,157) throughout the year. Crow Cable have ceased trading on 30th April 2022.
During the year dividends of
£62,220
and £
59,780
(20
2
1:
£1
19,694
and
£1
15,000)
were paid to the directors W C Wakefield and J W Wakefield respectively.
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 24 -
23
Directors' transactions
At the year end the following amounts were due to directors:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Dividends
Closing balance
£
£
£
£
£
W C Wakefield - Director's loan account
3.00
(51,594)
92,545
(12,595)
62,220
(33,864)
J W Wakefield - Director's loan account
3.00
(2,701)
415,485
(19,915)
59,780
333,089
(54,295)
508,030
32,510
122,000
299,224
The directors overdrawn loan account was repaid within 9 months of the year-end.
24
Control
The ultimate controlling party is W C Wakefield by virtue of his majority interest in the share capital of the company.
25
Analysis of changes in net funds/(debt)
1 April 2021
Cash flows
31 March 2022
£
£
£
Cash at bank and in hand
343,307
33,374
376,681
Borrowings excluding overdrafts
-
(300,000)
(300,000)
Obligations under finance leases
(286,866)
44,894
(241,972)
56,441
(221,732)
(165,291)
CROW METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 25 -
26
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
1,115,093
1,473,164
Adjustments for:
Taxation charged
208,339
344,716
Finance costs
4,594
4,214
Investment income
(29,853)
(27,963)
(Gain)/loss on disposal of tangible fixed assets
(23,206)
6,357
Depreciation and impairment of tangible fixed assets
142,073
141,863
Movements in working capital:
Decrease/(increase) in stocks
479,662
(955,472)
Decrease/(increase) in debtors
120,533
(2,188,661)
(Decrease)/increase in creditors
(1,514,272)
1,452,712
Cash generated from operations
502,964
250,930
2022-03-31
2021-04-01
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W C Wakefield
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