INFINITY METALS LIMITED - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 10602545 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

FOR

INFINITY METALS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

A P Brewster

I J Taylor FCCA

SECRETARY:

I J Taylor FCCA

REGISTERED OFFICE:

3b Spur Road

Quarry Lane Ind Est

Chichester

West Sussex

PO19 8PR

REGISTERED NUMBER:

10602545 (England and Wales)

AUDITORS:

Gibson Whitter Limited

Statutory Auditors

Larch House, Parklands Business Park

Forest Road, Denmead

Waterlooville

Hampshire

PO7 6XP

FIXED ASSETS

Intangible assets

4

5

5

Tangible assets

5

401,478

292,237

401,483

292,242

CURRENT ASSETS

Stocks

1,589,143

1,026,969

Debtors

6

129,301

457,030

Cash at bank and in hand

6,389

8,109

1,724,833

1,492,108

CREDITORS

Amounts falling due within one year

7

1,954,996

1,619,523

NET CURRENT LIABILITIES

(230,163

)

(127,415

)

TOTAL ASSETS LESS CURRENT LIABILITIES

171,320

164,827

CREDITORS

Amounts falling due after more than one year

8

200,000

300,000

NET LIABILITIES

(28,680

)

(135,173

)

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

(28,682

)

(135,175

)

SHAREHOLDERS' FUNDS

(28,680

)

(135,173

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 March 2023 and were signed on its behalf by:

A P Brewster - Director

1.	STATUTORY INFORMATION

INFINITY METALS LIMITED is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The directors feel it is appropriate to prepare the accounts on a going concern basis due to the ongoing support from the managing director and connected entities.

The core focus of Infinity Metals is closed loop recycling and working with consumers of scrap metal being used as a secondary raw material.

The Company, in its fourth year, is still recovering from the massive impact on business that the entire globe felt during the early COVID pandemic.

The continued economic outlook is challenging when considering the effects of the energy crisis, the political unrest driven by the war in Ukraine led to a global downturn in consumption. This has led to negative performances during Q2, Q3 and Q4 of 2022 as demand reduced in our customer sector.

We have taken the time during the downturn to assess all aspects of costs borne by the Company and to implement changes to become more efficient and improve our quality of product. The cost reduction and processing changes have been carefully considered and we have created a sustainable model for the company looking towards the future as the industry returns to normal activity levels. The commodity prices remain at multi year highs and we have seen a good gradual return to normal activities across the sector during Q1 of 2023 that we expect to continue further into Q2.

We believe that the Company is well supported, including through our bankers, HSBC, to achieve a break even position and become a profitable organisation. The key to this is to remain agile and adaptive as a business to align ourselves with the correct markets. The future will not be without further challenges, but our approach to business should start to show the correct results from the latter stages of year 5 and onwards.

Significant judgements and estimates

In preparing these financial statements, the director has made the following judgements:

- To determine when risks and rewards have been transferred under contractual obligations and as a result the period in which revenue is recognised. Revenue is recognised when title passes which the Company specifies as once material has been loaded onto applicable transport.

- To determine the quantity of stocks. The quantity is determined by weighing and observation which includes regular physical verification.

- To determine whether there are any indicators of impairment of the Company's tangible fixed assets. Factors taken into consideration when reaching such a decision include the economic viability and expected future financial performance of the asset.

Other key sources of estimation uncertainty:

Stock valuation

Stock is valued on the lower of cost or net realisable value. Cost is based on the average cost basis and includes material cost and an appropriate value of variable overheads. Net realisable value is reviewed by the Director on the basis of market conditions and struck contracts.

Tangible fixed assets

Tangible fixed assets are held at net book value, being depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed at each reporting date to include a review of technological innovation and the status of maintenance contracts.

Turnover

Turnover represents amounts in respect of sales of goods and services to customers in the course of ordinary activities, net of value added tax and trade discounts.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Other intangible assets are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

25% on cost

Fixtures and fittings

-

15% on cost

Computer equipment

-

25% on cost

Stocks

Stocks are valued at the lower of cost, using an average cost method, and net realisable value, after making due allowances for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Operating leasing commitments

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the term of the lease.

Pension costs and other post-retirement benefits

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 22 (2021 - 22 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 July 2021

and 30 June 2022

59,904

AMORTISATION

At 1 July 2021

and 30 June 2022

59,899

NET BOOK VALUE

At 30 June 2022

5

At 30 June 2021

5

5.	TANGIBLE FIXED ASSETS

Fixtures

Improvements

Plant and

and

to property

machinery

fittings

£

£

£

COST

At 1 July 2021

133,816

395,284

15,812

Additions

25,025

173,165

9,131

Disposals

-

(39,668

)

-

At 30 June 2022

158,841

528,781

24,943

DEPRECIATION

At 1 July 2021

31,875

222,206

6,423

Charge for year

14,267

89,809

2,486

Eliminated on disposal

-

(33,709

)

-

At 30 June 2022

46,142

278,306

8,909

NET BOOK VALUE

At 30 June 2022

112,699

250,475

16,034

At 30 June 2021

101,941

173,078

9,389

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 July 2021

-

12,088

557,000

Additions

17,420

-

224,741

Disposals

-

-

(39,668

)

At 30 June 2022

17,420

12,088

742,073

DEPRECIATION

At 1 July 2021

-

4,259

264,763

Charge for year

50

2,929

109,541

Eliminated on disposal

-

-

(33,709

)

At 30 June 2022

50

7,188

340,595

NET BOOK VALUE

At 30 June 2022

17,370

4,900

401,478

At 30 June 2021

-

7,829

292,237

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

27,442

22,774

Other debtors

101,859

434,256

129,301

457,030

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

100,000

100,000

Trade creditors

1,109,711

758,604

Taxation and social security

77,856

163,977

Other creditors

667,429

596,942

1,954,996

1,619,523

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

200,000

300,000

9.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank loans

300,000

400,000

The bank loans and overdrafts are secured by way of a debenture and fixed and floating charge over the Company's book debt.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

We draw attention to Note 2 in the financial statements, which explains that the company faces significant challenges as a result of a variety of geo-political events. At 30 June 2022 the company had net current liabilities of £230,163 and, as stated in Note 2, this indicates that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. We have assessed the use of the going concern basis and are content that this remains appropriate for the 2021-22 financial statements. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Our opinion is not modified in respect of this matter.

Gavin Whitter (Senior Statutory Auditor)

for and on behalf of Gibson Whitter Limited

11.	ULTIMATE CONTROLLING PARTY

The controlling party is A P Brewster.