XML 37 R22.htm IDEA: XBRL DOCUMENT
v3.25.4

Derivatives and Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Financial Instruments | Derivatives and Financial Instruments The Company's financial instruments comprise bank and other loans, senior loan notes, derivatives and trade payables. Other than derivatives, the main purpose of these financial instruments is to raise finance for the Company's operations. The Company also has various financial assets, such as trade receivables and cash and cash equivalents, which arise directly from its operations. Derivative financial instruments We are exposed to market risk during the normal course of business from changes in currency exchange rates, interest rates and commodity prices, such as magnesium and aluminum prices. We manage interest rate exposures through a combination of normal operating and financing activities and through the use of derivative financial instruments, such as foreign currency forward purchase contracts. We do not use market risk-sensitive instruments for trading or speculative purposes. In 2025, the Company had $0.3 million (2024: $nil) derivative financial instruments recorded within accounts and other receivables. The value of derivative financial instruments recorded in other current liabilities in 2025 was $nil (2024: $0.9 million). Forward foreign currency exchange contracts The Company incurs currency transaction risk whenever one of the Company's operating subsidiaries enters into either a purchase or sales transaction in a currency other than its functional currency. Currency transaction risk is reduced by matching sales and expenses in the same currency. The Company's U.S. operations have little currency exposure as most purchases, costs and sales are conducted in U.S. dollars. The Company's U.K. operations are exposed to exchange transaction risks, mainly because these operations sell goods priced in U.S. dollars and purchase raw materials priced in U.S. dollars. At December 31, 2025 and 2024, the Company held various forward foreign currency exchange contracts in respect of forward sales for U.S. dollars and Canadian dollars for the receipt of GBP sterling. The Company also held forward foreign currency exchange contracts in respect of forward purchases for U.S. dollars, euros, Canadian dollars and Australian dollars by the sale of GBP sterling. The contract totals in GBP sterling, range of maturity dates and range of exchange rates are disclosed overleaf, with the value denominated in GBP sterling, given that it is the currency the all of the contracts are held in. 13. Derivatives and Financial Instruments (continued)
|  |  | December 31, 2025 |  |  |
| Sales hedges |  | U.S. Dollars |  | Australian Dollars |  | Canadian Dollars |  |  |
| Contract totals/£m |  | 29.4 |  | 1.2 |  | 0.3 |  |  |
| Maturity dates |  | 02/26 |  | 01/26 to 02/26 |  | 01/26 |  |  |
| Exchange rates |  | $1.3098 to $1.3521 |  | $2.0028 to $2.0297 |  | $1.8371 |  |  |
| Purchase hedges |  |  | Euros |  | Canadian Dollars |  | Australian Dollars |  |  |
| Contract totals/£m |  |  | 0.8 |  |  | 15.6 |  |  | 2.2 |  |  |
| Maturity dates |  |  | 01/26 |  | 01/26 to 03/26 |  | 01/26 to 02/26 |  |  |
| Exchange rates |  |  | €1.1445 |  | $1.8454 to $1.8305 |  | $2.0111 to $2.0111 |  |  |
|  |  |  | December 31, 2024 |
| Sales hedges |  |  | U.S. Dollars | Canadian Dollars |
| Contract totals/£m |  |  | 36.5 |  | 0.2 |  |
| Maturity dates |  |  | 01/25 to 03/25 | 01/25 |
| Exchange rates |  |  | $1.2511 to $1.2999 | $1.7969 |
| Purchase hedges | U.S. Dollars |  | Euros |  | Canadian Dollars |  | Australian Dollars |
| Contract totals/£m | 1.2 |  |  | 0.8 |  |  | 15.6 |  |  | 1.0 |  |
| Maturity dates | 01/25 |  | 02/25 |  | 01/25 to 03/25 |  | 01/25 |
| Exchange rates | $1.2507 |  | €1.2104 |  | $1.7451 to $1.8137 |  | $2.0073 to $2.0177 |
The above contracts are held in GBP sterling. Therefore, the analysis in the table has been given in GBP sterling to avoid any movements as a result of translation. Fair value of financial instruments The following methods were used to estimate the fair values of each class of financial instrument: Cash at bank and in hand The carrying value approximates the fair value as a result of the short-term maturity of the instruments. Cash at bank and in hand are subject to a right to offset in the U.S. and U.K. Bank loans At December 31, 2025, bank and other loans of $40.3 million (2024: $45.3 million) were outstanding. At December 31, 2025, bank and other loans are shown net of issue costs of $0.9 million (2024: $0.2 million), and these issue costs are to be amortized to the expected maturity of the facilities. This carrying value approximates to its fair value at December 31, 2025 and 2024 respectively. At December 31, 2025, $15.3 million (2024: $20.3 million) of the total $40.3 million (2024: $45.3 million) bank and other loans was variable interest rate debt and subject to floating interest rate risk, with the remainder being fixed rate debt. Forward foreign currency exchange rate contracts The fair value of these contracts was calculated by determining what the Company would be expected to receive or pay on termination of each individual contract by comparison to present market prices. 13. Derivatives and Financial Instruments (continued) Fair value of financial instruments (continued) The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. The fair values of the financial instruments of the Company at December 31, 2025 and 2024, were analyzed using the hierarchy as follows:
|  | December 31, 2025 |
| In millions | Total |  | Level 1 |  | Level 2 |  | Level 3 |
| Derivative financial assets: |  |  |  |  |  |  |  |
| Foreign currency contract assets | $ | 0.3 |  |  | $ | — |  |  | $ | 0.3 |  |  | $ | — |  |
| Interest bearing loans and borrowings: |  |  |  |  |  |  |  |
| Loan Notes due 2026 | 25.0 |  |  | — |  |  | 25.0 |  |  | — |  |
| Revolving credit facility | $ | 15.3 |  |  | $ | — |  |  | $ | 15.3 |  |  | $ | — |  |
|  | December 31, 2024 |
| In millions | Total |  | Level 1 |  | Level 2 |  | Level 3 |
| Derivative financial liabilities: |  |  |  |  |  |  |  |
| Foreign currency contract liabilities | $ | 0.9 |  |  | $ | — |  |  | $ | 0.9 |  |  | $ | — |  |
| Interest bearing loans and borrowings: |  |  |  |  |  |  |  |
| Loan Notes due 2026 | 25.0 |  |  | — |  |  | 25.0 |  |  | — |  |
| Revolving credit facility | 17.2 |  |  | — |  |  | 17.2 |  |  | — |  |
| Bank overdraft | $ | 3.1 |  |  | $ | — |  |  | $ | 3.1 |  |  | $ | — |  |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivatives and fair value of assets and liabilities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativesAndFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration