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REGISTERED NUMBER: 03954111 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

CAPITAL COMPACTORS LIMITED

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Financial Statements 13


CAPITAL COMPACTORS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: A W J Lindsay
Mrs J Lindsay





SECRETARY: Mrs J Lindsay





REGISTERED OFFICE: Appledram Barns
Birdham Road
Chichester
West Sussex
PO20 7EQ





REGISTERED NUMBER: 03954111 (England and Wales)





AUDITORS: Lewis Brownlee (Chichester) Limited
Chartered Accountants
Statutory Auditors
Appledram Barns
Birdham Road
Chichester
West Sussex
PO20 7EQ

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023


The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS
Capital Compactors Ltd was incorporated in March 2000 and is a well-established leading designer, manufacturer and supplier of high-quality waste compaction and recycling machinery for lease and sale throughout the UK. As at the end of the 2023 financial year it has 796 (2022: 822) rental machines on its fleet and provides service and maintenance contracts generating long-term recurring revenues from a prestigious client base.

The directors monitor the performance of the company using Key Performance Indicators (KPIs) which include turnover and gross profit. Company performance is monitored by measurement of turnover, margins, overheads and operating profit compared to budgets. The company generated operating profit of £622,278 from revenues of £7,014,720 compared to profit of £518,989 from £7,239,368 of revenues for the previous year.

PRINCIPAL RISKS AND UNCERTAINTIES
The revenues of the company are wholly derived from the United Kingdom and any weakness in the economy would potentially impact sales. The directors monitor cash flows as part of the day-to-day control procedures and the cash flow projections are regularly reviewed to ensure that there is adequate provision to cover obligations.

ECONOMICS
Multiple income streams from sales, rentals, lease renewals and maintenance agreements provide some protection from downturns in the economy.

GROWTH
The company has continued to expand and employs approximately 72 (2022: 73) staff. In 2015 the company purchased an extensive modern manufacturing facility in Barnsley, South Yorkshire, offering a clear competitive advantage in build quality and efficiency: one of the largest manufacturing facilities in the industry in the UK. The company retained its former outgrown factory as an investment property, which was rented out on lease to a long-term tenant in the manufacturing industry until it was sold in April 2023 as a Transfer of Going Concern with the tenant remaining in situ. The sale proceeds were used to clear the company's borrowing against the manufacturing facility in Barnsley, all other bank borrowings, and to purchase new vans to replace the older ones to reinforce the service fleet.

SERVICES
The company's maintenance and back-up service is unrivalled in the sector, with one of the largest experienced teams of field engineers in the industry strategically based across the UK, providing prompt responses to call outs.

It is our strategy to keep our trusted and highly respected industry reputation by continuing to produce an extensive range of high quality products, provide detailed technical knowledge and waste management advice to our customers, and retain our unrivalled reputation for fast and efficient back up service.

ENVIRONMENT
We aim to continue contributing to protecting the environment by reducing our own carbon footprint and helping our customers to reduce their waste by increasing awareness of the need to recycle materials such as plastics and cardboard, as well as reducing landfill of general waste and subsequent reduction in the transportation of waste by reducing its volume.

We have increased our own in-house recycling to include mixed recycling as well as cardboard, plastics, paint tins and aerosols. We have fitted auto-sensor LED lighting throughout the manufacturing plant. We have replaced many of the older service vehicles with new lower-emission ones. We are developing components for remote machine fault diagnostics which will reduce the number of service call outs.

PEOPLE
The company has a strong management team in place and benefits from a well-structured, established, skilled, loyal workforce.

We are committed to providing our staff with a safe and comfortable working environment and to making the right business decisions to grow the business to safeguard their futures with the company.


CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

TRAINING AND LEGISLATION
We continually provide, update and monitor training to improve our services and enhance our Health & Safety compliance for the protection of our staff, customers and the public. We engage professional HR and H&S advisors to ensure our continual adhesion to updated current legislation.

MANUFACTURING
We are continually striving to streamline our manufacturing processes to improve our products and increase cost efficiency. Several new innovative design ideas and implementation of more lean manufacturing processes have returned many benefits so far, and this is an area we are continuing to work on and progress. We are currently working on a project that will see significant cost savings in relation to remote machine fault diagnostics, and in turn returning further potential savings on engineers' call-outs.

FUNDING AND REINVESTMENT
We have forged strong, solid, long term relationships with our commercial banks and funders over the years. Consequently, we have much backing support from them, and substantial credit facilities in place readily available to us as and when needed. We have now cleared all bank borrowing with minimal HP agreements left outstanding with our lease funder Kennet.

We are continuing our lifelong constant commitment to prudent reinvestment in the business to enhance further future growth. This ensures long-term stability for the business by creating job security for our staff, longevity of service to our valued customers, and continuity of business for our trusted suppliers.

BUSINESS CONTINUITY
We have a comprehensive and up to date Disaster Recovery Plan prepared for immediate implementation should any unforeseen business interruption occur.

TRADE MARKS
Capital Compactors Ltd and Capital Compactors & Balers are registered trademarks and therefore are protected. The company has built a recognised and highly respected brand and it is our intention to preserve its good name.

ACCREDITATIONS
The business is audited annually by relevant regulating bodies to successfully maintain its numerous Quality Assurance, Environmental and Health & Safety Accreditations.

FINANCIAL INSTRUMENTS
The company seeks to operate within its agreed overdraft facility with the bank. The company has not entered into any hedging arrangements in respect of risks relating to trade debtors or accrued income as its invoicing arrangements are made in sterling.

The company is no longer exposed to interest rate risk as the borrowing with the bank has been cleared from the proceeds of the sale of the investment property.

FUTURE DEVELOPMENTS
The company has evaluated subsequent events through to the date that these financial statements were approved and has not identified any additional significant subsequent events that require consideration as adjustment to or disclosure in the accompanying financial statements.

RESEARCH AND DEVELOPMENT
The company undertook research and development activities amounting to £Nil (2022: £536,376) in the year.


ON BEHALF OF THE BOARD:





Mrs J Lindsay - Director


1 November 2023

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of the sale, refurbishment and rental of compacting and baling machines.

DIVIDENDS
A final dividend of £2,740.99 per ordinary share was paid on 19 December 2022.

The total distributions of dividends for the year ended 31 March 2023 was £274,099.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

A W J Lindsay
Mrs J Lindsay

DIRECTORS' INDEMNITIES
The company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report.

DONATIONS
Charitable donations in the year totalled £1,745 (2022: £2,167).

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


AUDITORS
The auditors, Lewis Brownlee (Chichester) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mrs J Lindsay - Director


1 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CAPITAL COMPACTORS LIMITED


Opinion
We have audited the financial statements of Capital Compactors Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of 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 2023 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.

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 Auditors' 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CAPITAL COMPACTORS LIMITED


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 Strategic Report or the Report of the Directors.

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 returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' 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' Responsibilities Statement set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- 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;
- we identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the
financial statements or the operations of the company, including legislation such as the Companies Act 2006,
taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of
management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert
to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge
of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CAPITAL COMPACTORS LIMITED


To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in the
accounting policies were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors, where applicable.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our 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 a Report of the Auditors 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.




Sam Ede BFP FCA FCCA (Senior Statutory Auditor)
for and on behalf of Lewis Brownlee (Chichester) Limited
Chartered Accountants
Statutory Auditors
Appledram Barns
Birdham Road
Chichester
West Sussex
PO20 7EQ

1 November 2023

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £ £

TURNOVER 3 7,014,720 7,239,368

Cost of sales 2,403,799 2,861,059
GROSS PROFIT 4,610,921 4,378,309

Administrative expenses 4,068,049 3,931,079
542,872 447,230

Other operating income 4 79,406 71,759
OPERATING PROFIT 6 622,278 518,989

Interest receivable and similar income 7 6,771 5,876
629,049 524,865
Fair value adjustment to
investment property 235,000 200,000
864,049 724,865

Interest payable and similar expenses 8 39,231 44,861
PROFIT BEFORE TAXATION 824,818 680,004

Tax on profit 9 153,132 24,453
PROFIT FOR THE FINANCIAL YEAR 671,686 655,551

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

671,686

655,551

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

BALANCE SHEET
31 MARCH 2023

2023 2022
Notes £ £ £ £
FIXED ASSETS
Intangible assets 11 17,766 21,737
Tangible assets 12 3,353,047 3,504,845
Investment property 13 1,335,000 1,100,000
4,705,813 4,626,582

CURRENT ASSETS
Stocks 14 672,799 616,075
Debtors 15 2,303,153 2,022,435
Cash at bank and in hand 188,779 530,574
3,164,731 3,169,084
CREDITORS
Amounts falling due within one year 16 2,283,649 2,576,792
NET CURRENT ASSETS 881,082 592,292
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,586,895

5,218,874

CREDITORS
Amounts falling due after more than one
year

17

(1,231,199

)

(1,341,264

)

PROVISIONS FOR LIABILITIES 21 (366,268 ) (285,769 )
NET ASSETS 3,989,428 3,591,841

CAPITAL AND RESERVES
Called up share capital 22 100 100
Fair value reserve 23 602,235 411,497
Retained earnings 23 3,387,093 3,180,244
SHAREHOLDERS' FUNDS 3,989,428 3,591,841

The financial statements were approved by the Board of Directors and authorised for issue on 1 November 2023 and were signed on its behalf by:





Mrs J Lindsay - Director


CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up
share Retained Fair value Total
capital earnings reserve equity
£ £ £ £

Balance at 1 April 2021 100 2,944,032 211,497 3,155,629

Changes in equity
Dividends - (219,339 ) - (219,339 )
Total comprehensive income - 455,551 200,000 655,551
Balance at 31 March 2022 100 3,180,244 411,497 3,591,841

Changes in equity
Dividends - (274,099 ) - (274,099 )
Total comprehensive income - 480,948 190,738 671,686
Balance at 31 March 2023 100 3,387,093 602,235 3,989,428

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 29 (165,625 ) 214,442
Interest paid (33,015 ) (21,500 )
Interest element of finance lease payments
paid

(6,216

)

(23,361

)
Tax paid - (94,542 )
Net cash from operating activities (204,856 ) 75,039

Cash flows from investing activities
Purchase of intangible fixed assets (1,755 ) (12,500 )
Purchase of tangible fixed assets (303,588 ) (208,547 )
Sale of tangible fixed assets 792,663 452,904
Interest received 6,771 5,876
Net cash from investing activities 494,091 237,733

Cash flows from financing activities
Loan repayments in year (109,897 ) (212,623 )
Capital repayments in year (111,343 ) (229,123 )
Amount introduced by directors 274,065 360,274
Amount withdrawn by directors (409,756 ) (315,035 )
Equity dividends paid (274,099 ) (219,339 )
Net cash from financing activities (631,030 ) (615,846 )

Decrease in cash and cash equivalents (341,795 ) (303,074 )
Cash and cash equivalents at beginning
of year

30

530,574

833,648

Cash and cash equivalents at end of
year

30

188,779

530,574

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023


1. STATUTORY INFORMATION

Capital Compactors 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The presentational currency of the financial statements is the Pound Sterling (£).

Going concern
The directors have assessed the company's ability to continue trading as a going concern. 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 of accounting in preparing the financial statements.

Significant judgements and estimates
Application of the accounting policies in the preparation of the financial statements requires the directors to apply judgment involving assumptions and estimates concerning future results and other developments, including the likelihood, timing or amount of future transactions or events. There can be no assurance that actual results will not materially differ from those estimates.

Estimates and underlying expectations are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

i) Useful economic lives of plant and machinery;
The annual depreciation charge for plant and machinery is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. See note 12 for the carrying amount of plant and machinery, and 'Tangible fixed assets' accounting policy for the depreciation policy used.

ii) Manufactured stocks and plant and machinery;
Where stocks and plant and machinery are manufactured, the cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. The labour element is calculated using actual rates that have been calculated by the company.

In the process of applying the company's accounting policies, management have made the following judgements that have the most significant effect of the amounts recognised in the Financial Statements.

Impairment of tangible fixed assets
Management have considered whether there are any indications that Property, Plant and Equipment may have suffered an impairment at the reporting date as required by FRS 102. Management believe that there are no internal or external factors which indicate that such tangible assets may have been impaired. As such, the Directors have not considered it necessary to estimate the recoverable amount of such assets.

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents net invoiced sales of goods and services, excluding value added tax, except in respect of service contracts where turnover is recognised when the company obtains the right to consideration, and sale and leaseback transactions where the balance of risk and rewards remains with the company.

The revenue for machines leased by the company to the customer is recognised according to the terms of the lease. Revenue relating to future periods is shown as deferred income.

The revenue for machines that are sold is recognised when ownership is transferred in accordance with the contract with the customer.

Any sales proceeds relating to the servicing and repair of the machines to be provided in future periods by Capital Compactors Limited are deferred to the periods in which the services are to be undertaken. Deferred income is calculated from the beginning of the month during which the contract commences.

Other sales are recognised as delivered, installed or service performed.

Sale and leaseback
The sale of items to leasing companies and the immediate leaseback of those items where the risk and reward of the transaction mainly remains with the company is treated purely as a financing transaction.

Intangible fixed 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.

The trade mark has been fully amortised over its estimated useful life of 10 years. Computer software is being amortised at 25% per annum on the reducing balance method.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Property - 2% and 10% on cost
Improvements to leasehold property - in accordance with the property lease
Plant and machinery - at varying rates on cost
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Plant and machinery that forms the fleet of machines is depreciated at 10% on cost for 5 years and 10% reducing balance thereafter. Other items of plant and machinery are depreciated at 10% on a reducing balance basis. Additions during the year are depreciated from the month of addition to the fixed assets. Depreciation is charged in full up to and including the month of disposal for assets disposed of during the year.

Plant and machinery that is manufactured in house and then capitalised is capitalised at a cost that includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Machines that were owned by finance providers and acquired by the company at the end of the lease are capitalised at the cost of the buy back and the cost of any subsequent refurbishment. Refurbishment work done to machines that have been included in the rental fleet is taken to profit and loss as incurred.

Investment property
Investment property is stated at fair value as determined by the directors.

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Further information on the company's accounting policy for stock can be found above, within the policy details for significant judgements and estimates.

Financial instruments
Financial instruments are classified by the director as basic or advanced following the conditions in FRS 102 section 11. Basic financial instruments are recognised at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. The company has no advanced financial instruments.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Research and development
Research and development costs are charged to the profit and loss in the year incurred.

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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account using the sum of digits method which produces an acceptable approximation to the results obtained using the effective interest method.

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

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


2. ACCOUNTING POLICIES - continued

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.

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.

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

2023 2022
£ £
Sales of goods - UK 3,117,121 3,501,177
Rendering of services - UK 3,897,599 3,738,191
7,014,720 7,239,368

4. OTHER OPERATING INCOME
2023 2022
£ £
Rents received 79,406 67,500
Government grants - 4,259
79,406 71,759

Government grants include receipts relating to the Coronavirus Job Retention Scheme (CJRS) grant.

5. EMPLOYEES AND DIRECTORS
2023 2022
£ £
Wages and salaries 2,551,376 2,437,880
Social security costs 281,314 252,073
Other pension costs 74,612 111,079
2,907,302 2,801,032

The average number of employees during the year was as follows:
2023 2022

Factory staff 36 35
Field engineers 16 16
Admin and sales 18 20
Directors 2 2
72 73

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


5. EMPLOYEES AND DIRECTORS - continued

2023 2022
£ £
Directors' remuneration 18,200 17,680
Directors' pension contributions to money purchase schemes 2,340 42,340

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£ £
Depreciation - owned assets 308,173 332,812
Profit on disposal of fixed assets (645,450 ) (342,539 )
Patents and licences amortisation - 115
Computer software amortisation 5,726 6,204
Auditors' remuneration 12,000 12,360
Other services provided by auditors 55,043 59,028

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£ £
Interest income 6,771 5,876

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£ £
Bank interest 941 868
Mortgage interest 32,074 20,632
Finance lease interest 6,216 23,361
39,231 44,861

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax 72,633 (47,511 )

Deferred tax 80,499 71,964
Tax on profit 153,132 24,453

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


9. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 824,818 680,004
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

156,715

129,201

Effects of:
Expenses not deductible for tax purposes 8,006 5,683
Effect of change in deferred tax rate 19,255 63,111
Non-qualifying asset depreciation 7,506 7,728
Capital gain reliefs, indexation etc. (15,797 ) (10,305 )
Research & development claims - (132,485 )
Donations unable to utilise - 412
Fair value adjustment not expected to result in chargeable gain (9,738 ) (38,000 )
Impact of super deduction (12,815 ) (892 )
Total tax charge 153,132 24,453

Factors that may affect the future tax charges
At Budget 2021, the government announced that the Corporation Tax main rate for the years starting 1 April 2023 will increase from 19% to 25%. In addition, the government legislated in Finance Bill 2021 to introduce a small profits rate of 19% for financial year April 2023. The small profits rate will apply to profits of £50,000 or less.

10. DIVIDENDS
2023 2022
£ £
Ordinary shares of £1 each
Final 274,099 107,339
Interim - 112,000
274,099 219,339

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


11. INTANGIBLE FIXED ASSETS
Patents and Computer
licences software Totals
£ £ £
COST
At 1 April 2022 1,540 39,132 40,672
Additions - 1,755 1,755
At 31 March 2023 1,540 40,887 42,427
AMORTISATION
At 1 April 2022 1,540 17,395 18,935
Amortisation for year - 5,726 5,726
At 31 March 2023 1,540 23,121 24,661
NET BOOK VALUE
At 31 March 2023 - 17,766 17,766
At 31 March 2022 - 21,737 21,737

Computer software with a carrying value of £Nil (2022: £3,322) are pledged as security for the company's finance leases and hire purchase liabilities.

12. TANGIBLE FIXED ASSETS
Improvements
to
leasehold Plant and
Property property machinery
£ £ £
COST
At 1 April 2022 1,613,671 49,919 5,097,461
Additions 28,854 - 94,989
Disposals - - (437,725 )
At 31 March 2023 1,642,525 49,919 4,754,725
DEPRECIATION
At 1 April 2022 225,951 49,919 3,087,206
Charge for year 32,712 - 234,819
Eliminated on disposal - - (295,202 )
At 31 March 2023 258,663 49,919 3,026,823
NET BOOK VALUE
At 31 March 2023 1,383,862 - 1,727,902
At 31 March 2022 1,387,720 - 2,010,255

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


12. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor
fittings vehicles Totals
£ £ £
COST
At 1 April 2022 205,810 379,742 7,346,603
Additions - 179,745 303,588
Disposals - (61,991 ) (499,716 )
At 31 March 2023 205,810 497,496 7,150,475
DEPRECIATION
At 1 April 2022 192,109 286,573 3,841,758
Charge for year 3,425 37,217 308,173
Eliminated on disposal - (57,301 ) (352,503 )
At 31 March 2023 195,534 266,489 3,797,428
NET BOOK VALUE
At 31 March 2023 10,276 231,007 3,353,047
At 31 March 2022 13,701 93,169 3,504,845

Plant and Machinery and Motor Vehicles with a carrying value of £97,310 (2022: £334,770) and £Nil
(2022: £10,039) respectively, are pledged as security for the company's finance leases and hire purchase liabilities.

Property with a carrying value of £1,383,862 (2022: £1,387,719) are pledged as security for the company's bank loans.

13. INVESTMENT PROPERTY
Total
£
FAIR VALUE
At 1 April 2022 1,100,000
Revaluations 235,000
At 31 March 2023 1,335,000
NET BOOK VALUE
At 31 March 2023 1,335,000
At 31 March 2022 1,100,000

Investment property with a carrying value of £1,335,000 (2022: £1,100,000) is pledged as security for the company's bank loans.

Fair value at 31 March 2023 is represented by:
£
Valuation in 2015 1,065,000
Valuation in 2018 35,000
Valuation in 2020 (200,000 )
Valuation in 2022 200,000
Valuation in 2023 235,000
1,335,000

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


13. INVESTMENT PROPERTY - continued

If the Investment Property had not been revalued it would have been included at the following historical cost:

2023 2022
£ £
Cost 835,732 835,732
Aggregate depreciation (297,661 ) (280,946 )

The investment property was valued on an open market basis on 21 December 2021 by Mark Jenkinson & Son at £1,000,000 .

It is the opinion of the directors that the value of the investment property at the balance sheet date was £1,335,000.

14. STOCKS
2023 2022
£ £
Raw materials 323,412 316,739
Work-in-progress 269,595 198,813
Finished goods 79,792 100,523
672,799 616,075

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade debtors 1,669,467 1,445,778
Other debtors 3,000 9,400
Directors' current accounts 409,790 274,099
Tax 82,396 82,396
Prepayments and accrued income 138,500 210,762
2,303,153 2,022,435

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Bank loans and overdrafts (see note 18) 110,509 110,509
Finance leases (see note 19) 38,550 111,343
Trade creditors 642,619 877,352
Corporation Tax 72,633 -
Social security and other taxes 98,675 86,128
VAT 268,037 286,163
Other creditors 40,827 32,905
Accruals and deferred income 131,278 185,197
Deferred service contracts 880,521 887,195
2,283,649 2,576,792

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£ £
Bank loans (see note 18) 664,278 774,175
Finance leases (see note 19) - 38,550
Deferred service contracts 566,921 528,539
1,231,199 1,341,264

18. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£ £
Amounts falling due within one year or on demand:
Bank loans 110,509 110,509

Amounts falling due between one and two years:
Bank loans - 1-2 years 110,509 110,509

Amounts falling due between two and five years:
Bank loans - 2-5 years 314,717 324,408

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more than 5 years
by instalments 239,052 339,258
239,052 339,258

Bank loans comprise:
Maturity dateInterest aboveMonthlyCarrying amount
base raterepayment20232022
£   £   £   
Mortgage20262.00%2,11096,834118,231
Mortgage20291.60%1,733128,005145,107
Mortgage20352.16%6,942516,756578,464
Bounce back loan20262.50%83333,19142,882
774,787884,684

The above bank loans were settled in full within a year from the balance sheet date.

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases
2023 2022
£ £
Net obligations repayable:
Within one year 38,550 111,343
Between one and five years - 38,550
38,550 149,893

Non-cancellable
operating leases
2023 2022
£ £
Within one year 4,130 13,632
Between one and five years - 4,928
4,130 18,560

20. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£ £
Bank loans 774,787 884,684
Finance leases 38,550 149,893
813,337 1,034,577

Bank loans and overdrafts are secured by a first charge over 331 Petre Street, Sheffield, Unit 3 Shortwood Court, Barnsley and all assets of the company. The directors have provided a guarantee for £417,000 for the bank loans and overdraft of the company. This guarantee is supported by a fixed charge over 26 Sudley Road, a property owned by the directors. The finance leases are secured on the assets concerned.

21. PROVISIONS FOR LIABILITIES
2023 2022
£ £
Deferred tax 366,268 285,769

Deferred tax
£
Balance at 1 April 2022 285,769
Charge to Statement of Comprehensive Income during year 80,499
Balance at 31 March 2023 366,268

The deferred taxation liability relates to accelerated capital allowances, timing impact of sale and leaseback transactions, timing of payment of pension contributions and fair value adjustments on investment property that are expected to create a chargeable gain.

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
100 Ordinary £1 100 100

23. RESERVES

The fair value reserve comprises the cumulative effect of fair value adjustments to investment property.

24. PENSION COMMITMENTS

At the balance sheet date the company had an outstanding pension contributions liability of £12,397 (2022: £12,476).

25. CAPITAL COMMITMENTS
2023 2022
£ £
Contracted but not provided for in the
financial statements - 108,332

26. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2023 and 31 March 2022:

2023 2022
£ £
A W J Lindsay and Mrs J Lindsay
Balance outstanding at start of year 274,099 319,338
Amounts advanced 453,548 315,035
Amounts repaid (317,857 ) (360,274 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 409,790 274,099

Interest was charged on the balance owed by the directors, Mr and Mrs Lindsay, at the official rate totalling £6,805 (2022: £5,876) in the year. The balances are repayable on demand.

27. RELATED PARTY DISCLOSURES

During the year, the company incurred rent costs of £43,498 (2022: £40,795) from the directors.

During the year, a total of key management personnel compensation of £ 142,423 (2022 - £ 153,313 ) was paid.

Key management includes the directors and members of senior management.

28. POST BALANCE SHEET EVENTS

On 13 April 2023, the company disposed of the investment property for the sum of £1,335,000.

CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


29. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£ £
Profit before taxation 824,818 680,004
Depreciation charges 313,899 339,131
Profit on disposal of fixed assets (645,450 ) (342,539 )
Gain on revaluation of fixed assets (235,000 ) (200,000 )
Finance costs 39,231 44,861
Finance income (6,771 ) (5,876 )
290,727 515,581
Increase in stocks (56,724 ) (2,553 )
Increase in trade and other debtors (145,027 ) (521,905 )
(Decrease)/increase in trade and other creditors (254,601 ) 223,319
Cash generated from operations (165,625 ) 214,442

30. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023
31/3/23 1/4/22
£ £
Cash and cash equivalents 188,779 530,574
Year ended 31 March 2022
31/3/22 1/4/21
£ £
Cash and cash equivalents 530,574 833,648


31. ANALYSIS OF CHANGES IN NET DEBT

At 1/4/22 Cash flow At 31/3/23
£ £ £
Net cash
Cash at bank and in hand 530,574 (341,795 ) 188,779
530,574 (341,795 ) 188,779
Debt
Finance leases (149,893 ) 111,343 (38,550 )
Debts falling due within 1 year (110,509 ) - (110,509 )
Debts falling due after 1 year (774,175 ) 109,897 (664,278 )
(1,034,577 ) 221,240 (813,337 )
Total (504,003 ) (120,555 ) (624,558 )