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REGISTERED NUMBER: 07155029 (England and Wales)


















STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2023

FOR

ALLWOOD RECYCLING SOLUTIONS LIMITED

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 9

Statement of Financial Position 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13


ALLWOOD RECYCLING SOLUTIONS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2023







DIRECTORS: M Wheeler
D Wheeler
K McNeilly
A G Milne





REGISTERED OFFICE: 7 Charles Court
Budbrooke Industrial Estate
Warwick
Warwickshire
CV34 5LZ





REGISTERED NUMBER: 07155029 (England and Wales)





AUDITORS: TGFP
Chartered Accountants & Statutory Auditors
Fulford House
Newbold Terrace
Leamington Spa
Warwickshire
CV32 4EA

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their strategic report for the year ended 28 February 2023.

REVIEW OF BUSINESS
We help organisations of all sizes and niches to recycle as much as possible by offering bespoke recycling solutions to ensure the most sustainable and cost-effective outcome for all involved. We provide a tailored waste management service to include (but not limited to):

- On-site assistance - our trained operatives work on site to sort and segregate all waste streams
- Swift collections - engagement with our nationwide network of reliable carriers, we are able to provide speedy collections to all our clients
- Waste machinery - we provide and service machinery for waste processing
- Stand trailer supply - we supply stand trailers for the transportation of goods
- Complete waste management - services that are designed specifically for our clients

In the year ended February 2023 turnover increased to £16.2m (2022 : £14.5m) due to increased activity on current contracts and the introduction of three new clients. Gross margins remain largely consistent with the exception of the pallet price for one major client which was reviewed during the year.

At the end of this financial year, the company sold 50% of the share capital to Scott Timber Limited

The outlook for the coming year is very positive, we continue to grow organically and it is the intention of the Directors to continue to win new business and grow turnover.

PRINCIPAL RISKS AND UNCERTAINTIES
Credit Risk

Credit risk relates to operating activities and the risk that customers do not pay, this risk is managed by the external rating of credit limits and the robust monitoring of debtors. The Company is in a strong financial position with sufficient cash reserves available and finances its operations through retained earnings.

Economic Risk

Commodities such as scrap metal, cardboard and recycled plastics are subject to world supply and demand which impacts prices. The Company has a wide variety of outlets for the material which allows for alignment of global commodity pricing.

Regulatory Risk

Regulation constantly changes that affects the waste and recycling sectors. The Company mitigates the risk by maintaining the highest standards with our certifications to ISO9001 Quality Management Systems, ISO14001 Environmental Management Systems, ISO45001 Occupational Health and Safety Systems, ISO27001 Information Security Systems and Safe Contractor status. We are also a CIWM Affiliated member.

Reputational Risk

We pride ourselves on providing effective, cost-efficient and responsible waste and recycling services nationwide. Factors adversely affecting our reputation would be detrimental to trade, we mitigate the risk in a number of ways; a) employing the right staff, b) training all our staff by using CIWM waste awareness training courses, c) ensuring the correct resources are deployed, and, d) continuous review and improvement of the services we offer.


ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

KEY PERFORMANCE INDICATORS
The Directors and Senior Management Team review financial performance each month, including turnover, costs, profit and client performance. Debtors and creditors are reviewed regularly along with cashflow projections.

Staff training and performance are actively monitored to ensure our workforce are able to provide the best service possible.

ON BEHALF OF THE BOARD:





D Wheeler - Director


25 October 2023

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of waste management and recycling services.

DIVIDENDS
No interim dividends were paid during the year ended 28 February 2023.

The directors recommend final dividends per share as follows:

A Ordinary £0.50 shares £125,000
B Ordinary £0.50 shares £125,000

The total distribution of dividends for the year ended 28 February 2023 will be £ 500,000 .

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

M Wheeler
D Wheeler
K McNeilly

Other changes in directors holding office are as follows:

A G Milne was appointed as a director after 28 February 2023 but prior to the date of this report.

N R Scott ceased to be a director after 28 February 2023 but prior to the date of this report.

FINANCIAL INSTRUMENTS
The business' principal financial instruments comprise bank balances, insurance debtors, insurance creditors
and other creditors. The main purpose of these instruments is to finance the business' operations.

Debtors are managed in respect of credit risk by policies concerning the credit offered to customers and the
regular monitoring of amounts outstanding for both time and credit limits.

Creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

STRATEGIC REPORT
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors Report)
Regulations 2013, the company has prepared a Strategic Report, which includes information that would have
previously been included in the Directors' Report.


ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
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.

AUDITORS
The auditors, TGFP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D Wheeler - Director


25 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALLWOOD RECYCLING SOLUTIONS LIMITED


Opinion
We have audited the financial statements of Allwood Recycling Solutions Limited (the 'company') for the year ended 28 February 2023 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 28 February 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 directors are responsible for the other information. The other information comprises the information in the 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
ALLWOOD RECYCLING SOLUTIONS LIMITED


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.

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 Statement of Directors' Responsibilities set out on page five, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALLWOOD RECYCLING SOLUTIONS LIMITED


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:

We have considered how irregularities, including fraud, can be detected in this Business and how they may occur. This is not a cash intensive business and the Group holds no high value stock. However, we are aware there are always opportunities to manipulate the accounts, in particular by increasing or decreasing profits and window dressing by making the balance sheet look stronger than it may in reality be.

To mitigate these risks we have reviewed all Journals made during the year ensuring all are authorised and approved at the appropriate level. We have also reviewed any transactions outside of the business, and we have carried out a detailed analytical review of income and expenses highlighting any variances and obtaining reasons from Senior Management as to the reasons why. Materiality has been set at a level we feel more comfortable to include a greater range of testing to enable us to detect irregularities.

In respect of non- compliance with laws and regulations we have carried out the following enquiries:
Review minutes of meetings of those charged with governance.
Enquiry of management, those charged with governance and the Companies solicitors around actual and potential litigation and claims.
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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.

Other matter
The financial statements of the company for the year ended 28 February 2022 are unaudited.

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.




BENJAMIN R REYNOLDS (Senior Statutory Auditor)
for and on behalf of TGFP
Chartered Accountants & Statutory Auditors
Fulford House
Newbold Terrace
Leamington Spa
Warwickshire
CV32 4EA

31 October 2023

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
Notes £    £   

TURNOVER 16,237,300 14,480,263

Cost of sales 13,203,852 11,456,657
GROSS PROFIT 3,033,448 3,023,606

Administrative expenses 995,582 988,371
OPERATING PROFIT 4 2,037,866 2,035,235

Interest receivable and similar income 4,585 101
2,042,451 2,035,336

Interest payable and similar expenses 5 2,462 5,007
PROFIT BEFORE TAXATION 2,039,989 2,030,329

Tax on profit 6 400,271 371,695
PROFIT FOR THE FINANCIAL YEAR 1,639,718 1,658,634

Retained earnings at beginning of year 499,998 1,110,022

Dividends 7 (500,000 ) (2,268,658 )

RETAINED EARNINGS AT END OF
YEAR

1,639,716

499,998

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

STATEMENT OF FINANCIAL POSITION
28 FEBRUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 548,522 619,118

CURRENT ASSETS
Debtors 9 2,189,039 1,887,340
Cash at bank and in hand 1,401,596 1,226,280
3,590,635 3,113,620
CREDITORS
Amounts falling due within one year 10 2,456,329 3,173,003
NET CURRENT ASSETS/(LIABILITIES) 1,134,306 (59,383 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,682,828

559,735

CREDITORS
Amounts falling due after more than one
year

11

43,110

59,735
NET ASSETS 1,639,718 500,000

CAPITAL AND RESERVES
Called up and paid share capital 15 2 2
Retained earnings 1,639,716 499,998
SHAREHOLDERS' FUNDS 1,639,718 500,000

The financial statements were approved by the Board of Directors and authorised for issue on 25 October 2023 and were signed on its behalf by:





D Wheeler - Director


ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,373,405 1,870,853
Interest element of hire purchase
payments paid

(2,462

)

(5,007

)
Tax paid (377,226 ) (470,388 )
Net cash from operating activities 1,993,717 1,395,458

Cash flows from investing activities
Purchase of tangible fixed assets (4,336 ) (188,948 )
Sale of tangible fixed assets - 34,582
Interest received 4,585 101
Net cash from investing activities 249 (154,265 )

Cash flows from financing activities
Capital repayments in year (20,769 ) (77,012 )
Amount withdrawn by directors (1,297,881 ) -
Equity dividends paid (500,000 ) (735,768 )
Net cash from financing activities (1,818,650 ) (812,780 )

Increase in cash and cash equivalents 175,316 428,413
Cash and cash equivalents at
beginning of year

2

1,226,280

797,867

Cash and cash equivalents at end of
year

2

1,401,596

1,226,280

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 2,039,989 2,030,329
Depreciation charges 74,932 71,254
Loss on disposal of fixed assets - 13,221
Finance costs 2,462 5,007
Finance income (4,585 ) (101 )
2,112,798 2,119,710
Increase in trade and other debtors (301,699 ) (811,433 )
Increase in trade and other creditors 562,306 562,576
Cash generated from operations 2,373,405 1,870,853

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 1,401,596 1,226,280
Year ended 28 February 2022
28.2.22 1.3.21
£    £   
Cash and cash equivalents 1,226,280 797,867


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.22 Cash flow At 28.2.23
£    £    £   
Net cash
Cash at bank and in hand 1,226,280 175,316 1,401,596
1,226,280 175,316 1,401,596
Debt
Finance leases (80,504 ) 20,769 (59,735 )
(80,504 ) 20,769 (59,735 )
Total 1,145,776 196,085 1,341,861

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023


1. STATUTORY INFORMATION

Allwood Recycling Solutions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. For the year under review there were no specific areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates had a material bearing on the financial statements.

Turnover
Turnover comprises the fair value of the consideration received or receivable for the provision of goods and services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns and discounts.

The company recognises turnover when the amount can be reliably measured and it is probable that future economic benefits will flow to the entity.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - 2.5% on cost
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on cost

Financial instruments
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.


ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued
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 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

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.

Trade debtors
Trade debtors are amounts owed from customers for services performed and goods sold in the ordinary course in business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised costs using the effective interest method, less provision for impairment. A provision for impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors
Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued

Share capital
Ordinary shares are classed as equity. Equity instruments are measured at fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,186,834 2,894,816
Social security costs 19,331 5,923
Other pension costs 8,000 89,874
3,214,165 2,990,613

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

Directors 2 2
Clerical and managerial 11 9
Site managers and supervisors 20 19
Operatives 81 76
114 106

2023 2022
£    £   
Directors' remuneration 153,060 60,583
Directors' pension contributions to money purchase schemes 8,000 89,874

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 51,368 45,585
Depreciation - owned assets 74,932 71,254
Loss on disposal of fixed assets - 13,221
Auditors' remuneration 6,600 -

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Hire purchase 2,462 5,007

6. 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 400,271 371,695
Tax on profit 400,271 371,695

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

2023 2022
£    £   
Profit before tax 2,039,989 2,030,329
Profit multiplied by the standard rate of corporation tax in the UK of
19% (2022 - 19%)

387,598

385,763

Effects of:
Expenses not deductible for tax purposes 419 6,744
Capital allowances in excess of depreciation - (20,812 )
Depreciation in excess of capital allowances 11,734 -
HMRC CT interest 520 -
Total tax charge 400,271 371,695

7. DIVIDENDS
2023 2022
£    £   
A Ordinary shares of £0.50 each
Final 250,000 -
B Ordinary shares of £0.50 each
Final 250,000 2,268,658
500,000 2,268,658

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


8. TANGIBLE FIXED ASSETS
Fixtures
Long Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1 March 2022 373,469 84,092 108,999
Additions - - 3,550
At 28 February 2023 373,469 84,092 112,549
DEPRECIATION
At 1 March 2022 11,200 21,490 17,670
Charge for year 7,473 12,521 28,064
At 28 February 2023 18,673 34,011 45,734
NET BOOK VALUE
At 28 February 2023 354,796 50,081 66,815
At 28 February 2022 362,269 62,602 91,329

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 March 2022 128,781 19,193 714,534
Additions - 786 4,336
At 28 February 2023 128,781 19,979 718,870
DEPRECIATION
At 1 March 2022 41,194 3,862 95,416
Charge for year 21,896 4,978 74,932
At 28 February 2023 63,090 8,840 170,348
NET BOOK VALUE
At 28 February 2023 65,691 11,139 548,522
At 28 February 2022 87,587 15,331 619,118

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,778,328 1,834,139
Other debtors 347,595 6,550
Prepayments and accrued income 63,116 46,651
2,189,039 1,887,340

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 12) 16,625 20,769
Trade creditors 1,359,154 1,014,308
Tax 212,116 189,071
VAT 280,230 294,212
Other creditors 264,220 25,518
Directors' current accounts 251,655 1,549,536
Accruals and deferred income 72,329 79,589
2,456,329 3,173,003

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 12) 43,110 59,735

12. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£    £   
Net obligations repayable:
Within one year 16,625 20,769
Between one and five years 43,110 59,735
59,735 80,504

13. SECURED DEBTS

There is security over the borrowings of the company by way of a fixed and floating charge over all assets.

The above charge is still outstanding.

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


14. FINANCIAL INSTRUMENTS

Catergorisation of financial instruments:

Financial assets that are debt instruments measured at amortised cost £3,527,104 (2022 - £3,066,969)
Financial instruments measured at amortised cost £1,506,838 (2022 - £2,749,455)

15. CALLED UP AND PAID SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2 A Ordinary £0.50 1 1
2 B Ordinary £0.50 1 1
2 2

16. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £145,809 (2022 - £128,037).

Contributions totalling £12,250 (2022 - £23,452) were payable to the scheme at the end of the year and are included in creditors.

17. RELATED PARTY DISCLOSURES

Key management personnel comprises the directors of the company. The directors received remuneration in the year as disclosed in note 3.

During 2023, the company made sales of £6,109,635 and purchases of £16,981 respectively to and from companies in the group (2022: £3,766,936 and £20,293). The related balances receivable and payable at the year end were £343,821 and £528 (2022: £330,482 and £132).

18. ULTIMATE CONTROLLING PARTY

The company is under the control of the directors.