REGISTERED NUMBER: 12529565 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 April 2023 |
for |
Sun Environmental Services Ltd |
REGISTERED NUMBER: 12529565 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 April 2023 |
for |
Sun Environmental Services Ltd |
Sun Environmental Services Ltd (Registered number: 12529565) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 April 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Sun Environmental Services Ltd |
Company Information |
for the Year Ended 30 April 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Eldo House |
Kempson Way |
Suffolk Business Park |
Bury St Edmunds |
Suffolk |
IP32 7AR |
Sun Environmental Services Ltd (Registered number: 12529565) |
Group Strategic Report |
for the Year Ended 30 April 2023 |
The directors present their strategic report of the company and the group for the year ended 30 April 2023. |
REVIEW OF BUSINESS |
The year to April 2023 is characterised by significant change at Sun Environmental Services Ltd. We continued our rapid pace of expansion; growing our site at Cottenham Cambridge to capacity, opening a sister site in Haverhill which we built for purpose, and in November acquiring the business of Cooks Wastekare Ltd in Ipswich. The group now has unmatched operating capacity across Suffolk and reaches into North Essex and East Cambridgeshire. |
We have continued to invest in the operating capacity of the company with new lorries, plant and machinery and skip bins, all designed to improve operational efficiency and to offer our customers the best possible service. At the same time we have invested in our people and by the year end our workforce has grown to 100 (circa 100%). |
We have posted another strong set of financial results even as we continue to invest in growing the operating capacity of the business. The financial results reflect a year adversely impacted by high wage and cost inflation and significant additional costs from the spikes in fuel and energy prices. |
Our business is predominately focused on managing construction and demolition material. Whilst we recover circa 80% of the material we receive the economic recovery of a large percentage of this material is currently below its potential. We believe passionately in returning this material to its true economic value and thereby reducing the demand for virgin resources. During the year we purchased a site at Thetford with a view to building a recycling facility designed to return circa 100,000 tons per annum of soils, sands and aggregates back into the local building trade. This facility is in the planning process. |
The 20% of material we cannot currently recover to a second life is either sent for energy recovery as Refuse Derived Fuel (RDF) or sent to disposal at a registered landfill site. We recognise that RDF does not represent the highest possible use for this material, but at this time offers the best practical outcome given the nature of the material and the volumes involved. We have continued to invest in the process capacity at our facilities and strive to reduce the amount of waste that is sent to landfill to as close to zero as is possible. |
We actively engage with our regulator the Environment Agency, to ensure we are meeting our environmental obligations. We are mindful of our responsibilities to our employees who have to operate heavy goods vehicles (HGV), plant and machinery and processing lines in their day to day operations. We engage with the Health and Safety Executive, The Transport Commissioner and various consultants to ensure that we have as safe a working environment as is possible for our employees and any members of the community that our business encounters. We continue to invest in our people, our sites and our equipment to manage these risks. |
During the year our employees reported 2 working time accidents which resulted in the loss of 172 working days (less than 0.72% of the total hours worked during the year). Our HGV fleet has an average age of just over 2 years. This fleet is professionally managed and maintained to meet and exceed the obligations of our operating licence. |
The growth and improvements we have made to the business, and the success it has achieved are in large part due to the efforts of our employees and the Board extends its thanks to them. |
ON BEHALF OF THE BOARD: |
Sun Environmental Services Ltd (Registered number: 12529565) |
Report of the Directors |
for the Year Ended 30 April 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of skip hire and waste disposal. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 April 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Sun Environmental Services Ltd (Registered number: 12529565) |
Report of the Directors |
for the Year Ended 30 April 2023 |
AUDITORS |
The auditors, Knights Lowe 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 |
Sun Environmental Services Ltd |
Opinion |
We have audited the financial statements of Sun Environmental Services Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 April 2023 and of the group's 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. |
As set out in notes 2 & 8 to these financial statements the Directors have chosen not to amortise intangible assets. We have explained in the Emphasis of Matter paragraph below that our opinion is not modified in this respect. |
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 group 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 group's and the parent 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. |
Emphasis of matter |
As discussed in Note 2 to the financial statements, the Company has chosen not to charge amortisation of goodwill within their accounting policy for the year ended 30 April 2023. The reasoning is due to attaining appreciating assets bought on acquisition. As such our opinion has not been modified with respect to that matter. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Report of the Independent Auditors to the Members of |
Sun Environmental Services Ltd |
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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on page three, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Sun Environmental Services Ltd |
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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below: |
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 companies operating 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 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; |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
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 were indicative of potential bias; |
- investigated the rationale behind significant or unusual transactions; and |
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; |
- reviewing correspondence with HMRC and the company's legal advisors; |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
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. |
Report of the Independent Auditors to the Members of |
Sun Environmental Services Ltd |
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 |
Eldo House |
Kempson Way |
Suffolk Business Park |
Bury St Edmunds |
Suffolk |
IP32 7AR |
Sun Environmental Services Ltd (Registered number: 12529565) |
Consolidated |
Income Statement |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 7,417,124 | 3,806,239 |
Cost of sales | 5,070,325 | 2,433,394 |
GROSS PROFIT | 2,346,799 | 1,372,845 |
Administrative expenses | 1,850,561 | 1,016,279 |
OPERATING PROFIT | 4 | 496,238 | 356,566 |
Interest payable and similar expenses | 5 | 48,936 | 40,320 |
PROFIT BEFORE TAXATION | 447,302 | 316,246 |
Tax on profit | 6 | 76,781 | (39,018 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 370,521 | 355,264 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 370,521 | 355,264 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
370,521 |
355,264 |
Total comprehensive income attributable to: |
Owners of the parent | 370,521 | 355,264 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Consolidated Balance Sheet |
30 April 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 2,315,031 | 797,001 |
Tangible assets | 9 | 10,580,676 | 5,986,636 |
Investments | 10 | - | - |
12,895,707 | 6,783,637 |
CURRENT ASSETS |
Debtors | 11 | 911,717 | 573,171 |
Cash at bank | 741,555 | 241,176 |
1,653,272 | 814,347 |
CREDITORS |
Amounts falling due within one year | 12 | 1,921,263 | 1,050,237 |
NET CURRENT LIABILITIES | (267,991 | ) | (235,890 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | 12,627,716 | 6,547,747 |
CREDITORS |
Amounts falling due after more than one year |
13 |
(1,428,718 |
) |
(905,192 |
) |
PROVISIONS FOR LIABILITIES | 16 | (312,118 | ) | (22,981 | ) |
NET ASSETS | 10,886,880 | 5,619,574 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 7,701,653 | 5,000,000 |
Share premium | 18 | 2,195,132 | - |
Retained earnings | 18 | 990,095 | 619,574 |
SHAREHOLDERS' FUNDS | 10,886,880 | 5,619,574 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2023 and were signed on its behalf by: |
Q R Stewart - Director |
Sun Environmental Services Ltd (Registered number: 12529565) |
Company Balance Sheet |
30 April 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium | 18 |
Retained earnings | 18 | ( |
) |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year | 627,674 | (2,446 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Sun Environmental Services Ltd (Registered number: 12529565) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 April 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 May 2021 | 3,000,000 | 264,310 | - | 3,264,310 |
Changes in equity |
Issue of share capital | 2,000,000 | - | - | 2,000,000 |
Total comprehensive income | - | 355,264 | - | 355,264 |
Balance at 30 April 2022 | 5,000,000 | 619,574 | - | 5,619,574 |
Changes in equity |
Issue of share capital | 2,701,653 | - | 2,195,132 | 4,896,785 |
Total comprehensive income | - | 370,521 | - | 370,521 |
Balance at 30 April 2023 | 7,701,653 | 990,095 | 2,195,132 | 10,886,880 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Company Statement of Changes in Equity |
for the Year Ended 30 April 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 May 2021 | ( |
) |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 April 2022 | ( |
) |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | - |
Balance at 30 April 2023 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Consolidated Cash Flow Statement |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,155,243 | 879,736 |
Interest element of hire purchase payments paid |
(45,835 |
) |
(35,427 |
) |
Finance costs paid | (3,101 | ) | (4,893 | ) |
Net cash from operating activities | 1,106,307 | 839,416 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (26,758 | ) | (9,561 | ) |
Purchase of tangible fixed assets | (4,682,592 | ) | (3,331,421 | ) |
Sale of tangible fixed assets | 52,832 | 18,555 |
Purchase of subsidiary | (2,617,440 | ) | - |
Net cash from investing activities | (7,273,958 | ) | (3,322,427 | ) |
Cash flows from financing activities |
New HP/Finance Leases | 1,514,710 | 782,364 |
Capital repayments in year | (612,808 | ) | (265,705 | ) |
Share issue | 4,896,785 | 2,000,000 |
Share capital to be paid | - | (50,000 | ) |
Purchase of cash acquisition | 869,343 | - |
Net cash from financing activities | 6,668,030 | 2,466,659 |
Increase/(decrease) in cash and cash equivalents | 500,379 | (16,352 | ) |
Cash and cash equivalents at beginning of year |
2 |
241,176 |
257,528 |
Cash and cash equivalents at end of year | 2 | 741,555 | 241,176 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 April 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 447,302 | 316,246 |
Depreciation charges | 750,855 | 302,612 |
Loss on disposal of fixed assets | 7,168 | - |
Finance costs | 48,936 | 40,320 |
1,254,261 | 659,178 |
Decrease/(increase) in trade and other debtors | 60,621 | (297,932 | ) |
(Decrease)/increase in trade and other creditors | (159,639 | ) | 518,490 |
Cash generated from operations | 1,155,243 | 879,736 |
2. | 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 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 741,555 | 241,176 |
Year ended 30 April 2022 |
30.4.22 | 1.5.21 |
£ | £ |
Cash and cash equivalents | 241,176 | 257,528 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.5.22 | Cash flow | At 30.4.23 |
£ | £ | £ |
Net cash |
Cash at bank | 241,176 | 500,379 | 741,555 |
241,176 | 500,379 | 741,555 |
Debt |
Finance leases | (1,054,202 | ) | (1,040,342 | ) | (2,094,544 | ) |
(1,054,202 | ) | (1,040,342 | ) | (2,094,544 | ) |
Total | (813,026 | ) | (539,963 | ) | (1,352,989 | ) |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 April 2023 |
1. | STATUTORY INFORMATION |
Sun Environmental Services Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under historic cost conversion. |
These group accounts highlight that there has been a FRS 102 departure with respect to goodwill. |
Business Combinations |
The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. |
Critical judgements in applying the company's accounting policies |
The following are the critical judgements, including those involving estimations, that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
Depreciation of tangible fixed assets |
Tangible fixed assets are recognised at cost and depreciated over the basis appropriate to charge to the profit and loss account the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on the directors' knowledge of the reduction in the residual value of trading assets on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to residual value at the end of their economic lives. |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue attributable to a rental or haulage activity is recognised when the skip or service has been delivered to the customer, and recovery of the consideration is probable. |
Revenue attributable to a skip let on consignment and derived from the weight and or composition of the material recovered from the customer is recognised when the skip has been collected from the customer, weighed, and recovery of the consideration is probable. |
Revenue is measured net of cancelled bookings, trade discounts and volume rebates. |
Intangible assets |
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. |
Other intangible assets, including the Sun Skips website, trademarks and licences to operate, that are acquired by the Group are measured at cost less any accumulated impairment losses. |
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred. |
No amortisation has been included on intangible assets and this is a departure from FRS 102, however the directors consider this to be the most appropriate basis of valuing intangible assets, they are considered to be appreciating assets or are developed and improved ongoing, therefore the carrying value is at least the net realisable value or the benefit in use. Impairment reviews are carried out periodically and at each year end to ensure the carrying value is still appropriate. |
Values are reviewed at each reporting date and adjusted if appropriate. |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and any accumulated impairment losses. |
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. |
Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. |
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group. Maintenance expenditure is recognised in profit or loss. |
Depreciation |
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight line method over their estimated useful lives, and is generally recognised in profit or loss. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. |
Land is not depreciated, its holding value is reviewed annually. |
The estimated useful lives of property, plant and equipment for current and comparative periods are as follows: |
Buildings | 25 years |
Operational vehicles | 10 years |
Plant & machinery | 7 to 15 years |
Skips | 10 years |
Computer & office equipment | 3 to 5 years |
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. |
Taxation |
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity. |
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years.The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax assets and liabilities are offset only if certain criteria are met. |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. |
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on business plans for individual subsidiaries in the Group and the reversal of temporary differences. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves. Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used. |
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. |
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities |
Deferred tax assets and liabilities are offset only if certain criteria are met. |
Hire purchase and leasing commitments |
Leases of property, plant and equipment that transfer to the Group substantially all of the risks and rewards of ownership are classified as finance leases. The leased assets are measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the assets are accounted for in accordance with the accounting policy applicable to that asset. |
Assets held under other leases are classified as operating leases and are not recognised in the Group's statement of financial position. |
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. |
Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability.The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Financial instruments |
Financial assets and financial liabilities are recognised in accordance with FRS 102 when the company becomes a party to the contractual provisions of the instrument. |
Currently all financial liabilities are basic financial instruments as defined by section 11 of FRS 102 which are recognised at amortised cost. |
Where relevant, derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in the profit or loss account. |
Employee benefits |
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. |
Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available. |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The company is in a net current liabilities position primarily due to the financing of some plant and machinery. Due to the nature of the business this is not unexpected and the company has a strong net assets position which has continued to strengthen this year. |
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 annual financial statements. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,560,418 | 1,386,714 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 4 | 3 |
Employees | 88 | 45 |
The average number of employees by undertakings that were proportionately consolidated during the year was 92 (2022 - 48 ) . |
Employee benefits & staff related costs | 2023 | 2022 |
Net wages, salaries & bonuses | 2,219,855 | 1,132,560 |
Taxes and social security contributions | 188,964 | 101,613 |
Defined pension contributions | 35,249 | 17,680 |
Contracted labour | 58,134 | 87,272 |
Other employee costs | 58,216 | 47,589 |
Total | 2,560,418 | 1,386,714 |
2023 | 2022 |
£ | £ |
Directors' remuneration | - | - |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 64,976 | 16,645 |
Depreciation - owned assets | 458,318 | 173,176 |
Depreciation - assets on hire purchase contracts | 292,539 | 129,436 |
Loss on disposal of fixed assets | 7,168 | - |
Auditors' remuneration | 21,199 | 10,734 |
Directors fees | 72,000 | 60,000 |
Waste disposal & haulage costs | 1,826,943 | 792,361 |
Repairs, maintenance & vehicle operating costs | 805,786 | 561,166 |
Operating profit is the result generated from the continuing principal revenue producing activities of the Group as well as other income and expenses related to operating activities. Operating profit excludes net finance costs and income taxes. |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Hire purchase interest | 45,835 | 35,427 |
Finance costs | 3,101 | 4,893 |
48,936 | 40,320 |
6. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
Prior year adjustment | (112,330 | ) | - |
Deferred tax: |
Accelerated capital allowances | 664,838 | 443,195 |
Other timing differences | (475,727 | ) | (482,213 | ) |
Total deferred tax | 189,111 | (39,018 | ) |
Tax on profit | 76,781 | (39,018 | ) |
UK corporation tax has been charged at 19 % (2022 - 19 %). |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
6. | TAXATION - continued |
Reconciliation of total tax charge/(credit) 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 | 447,302 | 316,246 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
84,987 |
60,087 |
Effects of: |
Expenses not deductible for tax purposes | 51 | 66 |
Capital allowances in excess of depreciation | (329,564 | ) | (385,218 | ) |
Trading losses carried forward | 239,342 | 325,065 |
Other tax movements | 5,184 | - |
Deferred tax charge | 189,111 | (39,018 | ) |
Corporation tax prior year adjustment | (112,330 | ) | - |
Total tax charge/(credit) | 76,781 | (39,018 | ) |
Tax losses amounting to £4,522,028 (2022 - £2,619,116) are available to offset against future profits of the company. A deferred tax asset recognised at 25% (2022 - 25%) of £1,130,507 (2022 - £654,780) has been included within the deferred tax provision. |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | INTANGIBLE FIXED ASSETS |
Group |
Intangible |
Goodwill | assets | Totals |
£ | £ | £ |
COST |
At 1 May 2022 | 776,193 | 20,808 | 797,001 |
Additions | 1,491,272 | 26,758 | 1,518,030 |
At 30 April 2023 | 2,267,465 | 47,566 | 2,315,031 |
NET BOOK VALUE |
At 30 April 2023 | 2,267,465 | 47,566 | 2,315,031 |
At 30 April 2022 | 776,193 | 20,808 | 797,001 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
8. | INTANGIBLE FIXED ASSETS - continued |
Group |
On 28 April 2020, the group acquired certain assets and operations of Stowmarket Skip Hire Ltd, together with related property assets owned directly by the shareholders of Stowmarket Skip Hire Ltd. |
Consideration paid for the trade and assets of Stowmarket Skips Hire Ltd amounted £1,500,000. The cost of the fixed assets acquired totalled £723,807. This transaction has given rise to goodwill of £776,193 to be carried forward. |
During the 2023 financial year, the Group acquired 100% of the shares of Cooks WasteKare Ltd. |
Consideration paid for shares of Cooks WasteKare Ltd amounted £2,601,086. The value of assets acquired totalled £1,109,814. This transaction has given rise to goodwill of £1,491,272 to be carried forward. |
Departure from FRS 102 |
As set out in note 2 no amortisation has been included on intangible assets and this is a departure from FRS 102, however the directors consider this to be the most appropriate basis of valuing intangible assets, they are considered to be appreciating assets or are developed and improved ongoing, therefore the carrying value is at least the net realisable value or the benefit in use. Impairment reviews are carried out periodically and at each year end to ensure the carrying value is still appropriate. |
If they had been amortised, a charge to the profit and loss account of £231,503 (2022 £79,700) would have been required to amortise the assets over 10 years. The accumulative amortisation amounts to £468,148 (2022 £236,645). |
9. | TANGIBLE FIXED ASSETS |
Group |
Land & |
freehold | Plant and |
property | machinery | Skips |
£ | £ | £ |
COST |
At 1 May 2022 | 2,941,279 | 1,104,549 | 958,497 |
Additions | 2,228,834 | 958,558 | 139,222 |
Disposals | - | (60,000 | ) | - |
Reclassification/transfer | 69,886 | 456,085 | 444,817 |
At 30 April 2023 | 5,239,999 | 2,459,192 | 1,542,536 |
DEPRECIATION |
At 1 May 2022 | 40,409 | 122,388 | 81,867 |
Charge for year | 76,340 | 202,960 | 150,518 |
Reclassification/transfer | 49,882 | 221,442 | 360,956 |
At 30 April 2023 | 166,631 | 546,790 | 593,341 |
NET BOOK VALUE |
At 30 April 2023 | 5,073,368 | 1,912,402 | 949,195 |
At 30 April 2022 | 2,900,870 | 982,161 | 876,630 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Computer |
Motor | & office |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2022 | 1,320,304 | 84,507 | 6,409,136 |
Additions | 1,305,765 | 33,012 | 4,665,391 |
Disposals | - | - | (60,000 | ) |
Reclassification/transfer | 636,386 | - | 1,607,174 |
At 30 April 2023 | 3,262,455 | 117,519 | 12,621,701 |
DEPRECIATION |
At 1 May 2022 | 154,511 | 23,325 | 422,500 |
Charge for year | 287,030 | 34,009 | 750,857 |
Reclassification/transfer | 244,258 | (8,870 | ) | 867,668 |
At 30 April 2023 | 685,799 | 48,464 | 2,041,025 |
NET BOOK VALUE |
At 30 April 2023 | 2,576,656 | 69,055 | 10,580,676 |
At 30 April 2022 | 1,165,793 | 61,182 | 5,986,636 |
On 30 June 2023 the Group acquired land at Cottenham next to our existing site for £1,250,000 with a view to further expanding our business around Cambridge. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 May 2022 | 568,076 | 1,120,362 | 1,688,438 |
Additions | 782,435 | 1,208,315 | 1,990,750 |
Reclassification/transfer | - | 308,915 | 308,915 |
At 30 April 2023 | 1,350,511 | 2,637,592 | 3,988,103 |
DEPRECIATION |
At 1 May 2022 | 59,555 | 98,954 | 158,509 |
Charge for year | 80,838 | 211,701 | 292,539 |
Reclassification/transfer | - | 64,194 | 64,194 |
At 30 April 2023 | 140,393 | 374,849 | 515,242 |
NET BOOK VALUE |
At 30 April 2023 | 1,210,118 | 2,262,743 | 3,472,861 |
At 30 April 2022 | 508,521 | 1,021,408 | 1,529,929 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 May 2022 |
Additions |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Alpha 3 The Buntings, Cedars Park, Stowmarket, Suffolk, England, IP14 5GZ |
Nature of business: |
% |
Class of shares: | holding |
This subsidiary is fully consolidated in these financial statements. |
Cooks Wastekare Ltd |
Registered office: Alpha 3 The Buntings, Cedars Park, Stowmarket, Suffolk, England, IP14 5GZ |
Nature of business: Collection of non-hazardous waste |
% |
Class of shares: | holding |
Ordinary | 100.00 |
11. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 819,113 | 470,898 |
Other debtors | 3,320 | 50,000 |
VAT | - | 8,563 |
Deferred tax asset | - | - | 3,222 | 2,447 |
Prepayments | 89,284 | 43,710 |
911,717 | 573,171 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
11. | DEBTORS - continued |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 911,717 | 573,171 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 14) | 844,119 | 398,531 |
Trade creditors | 499,751 | 551,006 |
VAT | 239,168 | - |
Other creditors | 2,405 | - |
Accruals & deferred income | 335,820 | 100,700 |
1,921,263 | 1,050,237 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 14) | 1,250,425 | 655,671 |
Amounts owed to group undertakings | 178,293 | 249,521 | 183,186 | 249,521 |
1,428,718 | 905,192 |
14. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 844,119 | 398,531 |
Between one and five years | 1,250,425 | 655,671 |
2,094,544 | 1,054,202 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
14. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 25,474 | 7,184 |
Between one and five years | 101,896 | - |
In more than five years | 229,266 | - |
356,636 | 7,184 |
The Group lease an office facility under operating leases. The lease runs for a period of 3 years. Lease payments are fixed. The lease expense is recognised in the profit and loss and was £18,130 in the year. |
The group leases two yards. The leases run for a further 14 years. Lease payments total £25,474 per annum and are subject to a market review in 2025 and every three years thereafter. The lease expense is recognised in the profit and loss account as incurred and was £12,737 in the year. |
The Group's policy is to maintain a strong capital base to maintain investor, creditor and regulator confidence and to sustain future development of the business. Management monitors the return on capital, as well as the level of dividends to ordinary shareholders. |
The board of directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowing and the advantages and security afforded by a sound capital position. |
The Group monitors 'adjusted net debt' to 'adjusted equity'. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of equity other than amounts accumulated in the hedging reserve. The Group's adjusted net debt to equity ratio at 30 April 2023 was 0.27 to 1. |
Debt | Interest rate | Year of maturity | Carrying amount |
£ |
Finance leases | 4.5% | 2024 to 2026 | 2,094,544 |
Shareholder loan | 2% | 2030 | 178,293 |
Finance leases |
Future minimum lease payments |
Interest |
Present value of minimum lease payments |
£ | £ | £ |
Due within 1 year | 911,448 | 67,329 | 844,119 |
Due between 1 and 5 years | 1,393,596 | 143,171 | 1,250,425 |
2,305,044 | 210,500 | 2,094,544 |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 2,094,544 | 1,054,202 |
16. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Other timing differences | (1,130,507 | ) | (654,780 | ) |
Accelerated capital allowances | 1,442,625 | 677,761 |
312,118 | 22,981 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2022 | 22,981 |
Accelerated capital allowances | 664,838 |
Tax loss asset recognised | (475,727 | ) |
Brought forward on acquisition | 100,026 |
Balance at 30 April 2023 | 312,118 |
Company |
Deferred |
tax |
£ |
Balance at 1 May 2022 | ( |
) |
Tax loss asset recognised | (775 | ) |
Balance at 30 April 2023 | ( |
) |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
17. | CALLED UP SHARE CAPITAL |
Class | Nominal value | 2023 | 2022 |
£ | £ | £ |
Allotted, issued & fully paid |
7,701,653 | Ordinary shares | £1 | 7,701,653 | 4,950,000 |
Allotted, issued to be paid |
Nil | Ordinary shares | £1 | - | 50,000 |
7,701,653 | 5,000,000 |
All ordinary shares rank equally with regard to the Company's residual assets. Holders of these shares are entitled to dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company. |
At general meetings of the shareholders in May and July 2022, the shareholders approved an increase in the authorised shares and the issue of 1,000,000 ordinary shares at an exercise price of £1 per share (2022: 2,000,000 at £1 per share). On 10 November 2022 a general meeting of the shareholders approved an increase in the authorised shares and the issue of 1,701,653 shares at £2.29 per share. |
18. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 May 2022 | 619,574 | - | 619,574 |
Profit for the year | 370,521 | 370,521 |
Cash share issue | - | 2,195,132 | 2,195,132 |
At 30 April 2023 | 990,095 | 2,195,132 | 3,185,227 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 May 2022 | ( |
) | (7,339 | ) |
Profit for the year |
Cash share issue | - | 2,195,132 | 2,195,132 |
At 30 April 2023 | 2,815,467 |
19. | COMMITMENTS & POST BALANCE SHEET EVENTS |
The Group has no outstanding commitments as at the 30 April 2023. During the year ended 30 April 2023 the Group entered into contracts with cancellation clauses for operational vehicles for £740,000, all of which have been delivered. |
Sun Environmental Services Ltd (Registered number: 12529565) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
20. | RELATED PARTY DISCLOSURES |
Directors' fees of £6,000 a month are paid to JMJ Environmental Limited, a company owned and controlled by director Mr M A Stewart. Total directors' fees paid in the year total £72,000 (2022: £60,000). |
On 28 April 2020 the company borrowed £244,628 from its parent. This loan was repaid during the year in exchange for shares in the company. During the year the company drew down £170,000 on this facility. At the 30 April 2023 the outstanding balance is £178,293. Interest accrues on this loan at 2% per annum. |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party of the Group is Symmons & Co Ltd which is owned and controlled by Mr Q R Stewart. Symmons & Co Ltd was incorporated in Guernsey Registered office address - Maison de Bas Farm Rue des Truchots St Andrew, Guernsey, GY6 8U. Company no. 56906. |
Directors of the company control directly and indirectly 58% of the voting shares of the company. In addition some of the Directors of the company are also Directors of the ultimate controlling party. |