Company registration number 06457815 (England and Wales)
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
COMPANY INFORMATION
Directors
S Petithuguenin
(Appointed 27 May 2022)
B R Joly
(Appointed 27 May 2022)
Company number
06457815
Registered office
Unit 5D, Ashroyd Business Park
Ashroyd Way
Hoyland
Barnsley
South Yorkshire
S74 9SB
Auditor
Royce Peeling Green Limited
The Copper Room
Deva City Office Park
Trinity Way
Manchester
M3 7BG
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7 - 8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

During the year under review, the principal activity of the company continued to be that of the provision of maintenance and repair functions in relation to the energy from waste sites in the UK operated by the Group and external customers along with the construction of boilers and piping in respect to new plants.

 

During 2023, following a restructuring of the group's activities, the decision was made to cease the previous activities within this business and become the overhead cost centre and Holding Company for Paprec Group in the UK.

Results and dividends

The results for the year are set out on page 6.

No ordinary dividends were paid (2021: £Nil). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G G P Turc
(Resigned 27 May 2022)
T G P Carrabin
(Resigned 27 May 2022)
S Petithuguenin
(Appointed 27 May 2022)
B R Joly
(Appointed 27 May 2022)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to 39 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Auditor

In accordance with the company's articles, a resolution proposing that Royce Peeling Green Limited be reappointed as auditor of the company will be put at a General Meeting.

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

 

 

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 auditor

Each director in office at the date of approval of this annual report confirms that:

 

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
S Petithuguenin
Director
29 September 2023
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
- 3 -
Opinion

We have audited the financial statements of Paprec UK Limited (formerly CNIM Environmental Construction and Services Limited) (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the statement of financial position, 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 UK adopted international accounting standards.

In our opinion the financial statements:

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 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.

Other information

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:

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
- 4 -
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 identified material misstatements in the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
- 5 -

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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.

Use of our report

This report is made solely to the company’s member 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 member, those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Jonathan Hayward (Senior Statutory Auditor)
For and on behalf of Royce Peeling Green Limited
29 September 2023
Chartered Accountants
Statutory Auditor
The Copper Room
Deva City Office Park
Trinity Way
Manchester
M3 7BG
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
2022
2021
Notes
£
£
Revenue
3
2,271,291
4,204,566
Cost of sales
(694,934)
(2,748,700)
Gross profit
1,576,357
1,455,866
Administrative expenses
(1,803,006)
(2,220,760)
Operating loss
4
(226,649)
(764,894)
Finance costs
7
(35,836)
(18,110)
Loss before taxation
(262,485)
(783,004)
Income tax income/(expense)
8
10,664
(7,953)
Loss and total comprehensive income for the year
(251,821)
(790,957)

The income statement has been prepared on the basis that all operations are continuing operations.

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 7 -
2022
2021
Notes
£
£
ASSETS
Non-current assets
Right-of-use assets
9
378,790
423,356
Deferred tax asset
14
12,633
1,969
391,423
425,325
Current assets
Trade and other receivables
10
259,011
881,565
Current tax recoverable
23,344
23,344
Cash and cash equivalents
603,943
185,928
886,298
1,090,837
Total assets
1,277,721
1,516,162
EQUITY
Called up share capital
16
1,000
1,000
Retained earnings
226,892
478,713
Total equity
227,892
479,713
LIABILITIES
Non-current liabilities
Lease liabilities
13
405,599
444,646
Current liabilities
Trade and other payables
12
605,201
573,380
Lease liabilities
13
39,029
18,423
644,230
591,803
Total liabilities
1,049,829
1,036,449
Total equity and liabilities
1,277,721
1,516,162

The notes on pages 11 to 22 form part of these financial statements.

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

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
S Petithuguenin
Director
Company registration number 06457815
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2021
1,000
1,269,670
1,270,670
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(790,957)
(790,957)
Balance at 31 December 2021
1,000
478,713
479,713
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(251,821)
(251,821)
Balance at 31 December 2022
1,000
226,892
227,892
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
472,292
(243,171)
Net cash inflow/(outflow) from operating activities
472,292
(243,171)
Financing activities
Payment of lease liabilities
(18,441)
-
Interest paid
(35,836)
(18,110)
Net cash used in financing activities
(54,277)
(18,110)
Net increase/(decrease) in cash and cash equivalents
418,015
(261,281)
Cash and cash equivalents at beginning of year
185,928
447,209
Cash and cash equivalents at end of year
603,943
185,928
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information

Paprec UK Limited (formerly CNIM Environmental Construction and Services Limited) is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5D, Ashroyd Business Park, Ashroyd Way, Hoyland, Barnsley, South Yorkshire, S74 9SB. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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

Following the group restructuring decision, ttruehe directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue comprises the value of goods and services (excluding VAT) earned from the provision of maintenance and repair activities within the energy from waste sector.

The company transfers control of its performance obligation for work performed at a point in time in line with the services provided. Revenue from the provision of services is therefore recognised in the accounting period in which the work is performed and the service is provided to the customer. Where the work happens in advance of an invoice being raised, an accrued income balance is recognised based upon costs incurred at that time.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and equipment
3 to 5 years
Office equipment
3 to 5 years
Motor vehicles
3 to 5 years

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 recognised in the income statement.

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of tangible assets

At each reporting 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.

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.

 

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
Cash and cash equivalents

Cash and cash equivalents 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.

1.7
Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances, investments and loans to fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest.

 

Such assets are subsequently carried at amortised cost using the effective interest method.

1.8
Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts discounted at a market rate of interest.

 

Debt instruments are subsequently carried at amortised cost using the effective interest method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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 inventories or non-current 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

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.14
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.

2
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
3
Revenue
2022
2021
£
£
Revenue analysed by class of business
Sales to group undertakings
1,263,123
3,517,072
Sales to external customers
1,008,168
687,494
2,271,291
4,204,566
2022
2021
£
£
Revenue analysed by geographical market
UK
1,280,993
1,063,998
Rest of world
990,298
3,140,568
2,271,291
4,204,566
4
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange gains
(947)
(4,977)
Depreciation of property, plant and equipment
44,566
41,845
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,000
39,500
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
18
14
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
1,242,407
989,890
Social security costs
138,742
130,143
Pension costs
34,131
34,290
1,415,280
1,154,323
7
Finance costs
2022
2021
£
£
Interest on lease liabilities
35,836
18,110
8
Income tax expense
2022
2021
£
£
Deferred tax
Origination and reversal of temporary differences
(8,104)
7,953
Changes in tax rates
(2,560)
-
0
(10,664)
7,953

The charge for the year can be reconciled to the loss per the income statement as follows:

2022
2021
£
£
Loss before taxation
(262,485)
(783,004)
Expected tax credit based on a corporation tax rate of 19.00% (2021: 19.00%)
(49,872)
(148,771)
Effect of expenses not deductible in determining taxable profit
45,413
560
Unutilised tax losses carried forward
4,660
156,637
Adjustment in respect of prior years
-
0
(3,133)
Difference between current and deferred tax rates
-
0
2,660
Deferred tax movements
(10,664)
-
0
Net capital allowances
(201)
-
0
Taxation (credit)/charge for the year
(10,664)
7,953
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
9
Property, plant and equipment
Leasehold land and buildings
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2021
-
0
71,052
10,843
42,598
124,493
Additions
445,639
-
0
-
0
-
0
445,639
At 31 December 2021
445,639
71,052
10,843
42,598
570,132
At 31 December 2022
445,639
71,052
10,843
42,598
570,132
Accumulated depreciation and impairment
At 1 January 2021
-
0
71,052
10,843
23,036
104,931
Charge for the year
22,283
-
0
-
0
19,562
41,845
At 31 December 2021
22,283
71,052
10,843
42,598
146,776
Charge for the year
44,566
-
0
-
0
-
0
44,566
At 31 December 2022
66,849
71,052
10,843
42,598
191,342
Carrying amount analysed between owned assets and right-of-use assets
At 31 December 2022
Owned assets
-
-
-
-
-
Right-of-use assets
378,790
-
-
-
378,790
378,790
-
-
-
378,790
At 31 December 2021
Owned assets
-
-
-
-
-
Right-of-use assets
423,356
-
-
-
423,356
423,356
-
-
-
423,356

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2022
2021
£
£
Net values at the year end
Property
378,790
423,356
Total additions in the year
-
445,639
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Property, plant and equipment
(Continued)
- 18 -
Depreciation charge for the year
Property
44,566
22,283
Motor vehicles
-
19,562
44,566
41,845
10
Trade and other receivables
2022
2021
£
£
Trade receivables
185,148
14,583
VAT recoverable
7,540
42,729
Amounts owed by fellow group undertakings
37,463
789,831
Other receivables
28,860
400
Prepayments
-
0
34,022
259,011
881,565
11
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

Impaired trade receivables

The above trade and other receivables are net of a provision for expected credit losses of £1,095,225.

12
Trade and other payables
2022
2021
£
£
Trade payables
119,553
113,802
Amounts owed to fellow group undertakings
2
79,891
Accruals
335,308
362,802
Social security and other taxation
129,154
14,888
Other payables
21,184
1,997
605,201
573,380
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
13
Lease liabilities
2022
2021
Maturity analysis
£
£
Within one year
72,345
54,259
In two to five years
289,380
289,380
In over five years
247,661
320,006
Total undiscounted liabilities
609,386
663,645
Future finance charges and other adjustments
(164,758)
(200,576)
Lease liabilities in the financial statements
444,628
463,069

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2022
2021
£
£
Current liabilities
39,029
18,423
Non-current liabilities
405,599
444,646
444,628
463,069
2022
2021
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
35,836
18,110
PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
(Continued)
- 20 -
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

ACAs
Tax losses
STTDs
Total
£
£
£
£
Asset at 1 January 2021
(1,362)
-
0
(8,560)
(9,922)
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(108)
-
8,061
7,953
Asset at 1 January 2022
(1,470)
-
0
(499)
(1,969)
Deferred tax movements in current year
Charge/(credit) to profit or loss
265
(6,132)
(4,797)
(10,664)
Asset at 31 December 2022
(1,205)
(6,132)
(5,296)
(12,633)
15
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,131
34,290

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.

16
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000

The company has one class of ordinary shares which carry no right to fixed income.

17
Capital risk management

The company is not subject to any externally imposed capital requirements.

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
18
Financial instruments

The company's financial instruments are disclosed in the relevant notes to the financial statements. The directors do not believe there are material risks resulting from the company's financial instruments that warrant disclosure in the financial statements.

19
Related party transactions
Remuneration of key management personnel

The directors and key management personnel are remunerated by a group company, therefore no remuneration is disclosed.

Other transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Purchases
2022
2021
2022
2021
£
£
£
£
Group companies
1,263,123
3,517,072
79,191
98,435

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due to related parties
£
£
Group companies
2
79,891

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due from related parties
£
£
Group companies
37,463
789,831
20
Controlling party

The Company's immediate parent undertaking is Paprec Engineering CNIM, which itself is a wholly owned subsidiary of Paprec Energy from Waste, a company incorporated in France with registered office 7 Rue Du Docteur Lancereaux, 75008 Paris. Paprec Energy from Waste is ultimately owned by Paprec Holding which is the only Group in which the results of Paprec UK Limited are consolidated.

 

The ultimate controlling party is J L Petithuguenin.

PAPREC UK LIMITED (FORMERLY CNIM ENVIRONMENTAL CONSTRUCTION AND SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
21
Cash generated from/(absorbed by) operations
2022
2021
£
£
Loss for the year before income tax
(262,485)
(783,004)
Adjustments for:
Finance costs
35,836
18,110
Depreciation and impairment of property, plant and equipment
44,566
41,845
Movements in working capital:
Decrease in inventories
-
0
69,854
Decrease in trade and other receivables
622,554
279,483
Increase in trade and other payables
31,821
130,541
Cash generated from/(absorbed by) operations
472,292
(243,171)
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