REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
CAPITAL COMPACTORS LIMITED |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
Appledram Barns |
Birdham Road |
Chichester |
West Sussex |
PO20 7EQ |
CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
542,872 | 447,230 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest receivable and similar income | 7 |
629,049 | 524,865 |
Fair value adjustment to |
investment property | 235,000 | 200,000 |
864,049 | 724,865 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
CAPITAL COMPACTORS LIMITED (REGISTERED NUMBER: 03954111) |
BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investment property | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Fair value reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
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 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of finance lease payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 274,065 | 360,274 |
Amount withdrawn by directors | (409,756 | ) | (315,035 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
30 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Property | - |
Improvements to leasehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
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 |
£ | £ |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received |
Government grants |
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 |
Social security costs |
Other pension costs |
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 |
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 |
Directors' pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Patents and licences amortisation |
Computer software amortisation |
Auditors' remuneration |
Other services provided by auditors |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Interest income |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Mortgage interest |
Finance lease interest |
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 | ( |
) |
Deferred tax |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
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 |
Interim |
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 |
Additions |
At 31 March 2023 |
AMORTISATION |
At 1 April 2022 |
Amortisation for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
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 |
Additions |
Disposals | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
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 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
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 |
Revaluations | 235,000 |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
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 |
Work-in-progress |
Finished goods |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 409,790 | 274,099 |
Tax |
Prepayments and accrued income |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 18) |
Finance leases (see note 19) |
Trade creditors |
Corporation Tax |
Social security and other taxes |
VAT | 268,037 | 286,163 |
Other creditors |
Accruals and deferred income |
Deferred service contracts | 880,521 | 887,195 |
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) |
Finance leases (see note 19) |
Deferred service contracts |
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 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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 date | Interest above | Monthly | Carrying amount |
base rate | repayment | 2023 | 2022 |
£ | £ | £ |
Mortgage | 2026 | 2.00% | 2,110 | 96,834 | 118,231 |
Mortgage | 2029 | 1.60% | 1,733 | 128,005 | 145,107 |
Mortgage | 2035 | 2.16% | 6,942 | 516,756 | 578,464 |
Bounce back loan | 2026 | 2.50% | 833 | 33,191 | 42,882 |
774,787 | 884,684 |
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 |
Between one and five years |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Finance leases | 38,550 | 149,893 |
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 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 March 2023 |
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: | £ | £ |
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 |
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 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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 £ |
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 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
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 | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
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 | ( |
) | 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 | ) |