Caseware UK (AP4) 2022.0.179 2022.0.179 2022-09-302022-09-302022-09-3014false2021-10-01No description of principal activity21falsefalse 01092292 2021-10-01 2022-09-30 01092292 2020-10-01 2021-09-30 01092292 2022-09-30 01092292 2021-09-30 01092292 2020-10-01 01092292 c:Director1 2021-10-01 2022-09-30 01092292 c:Director2 2021-10-01 2022-09-30 01092292 c:Director3 2021-10-01 2022-09-30 01092292 c:Director5 2021-10-01 2022-09-30 01092292 c:RegisteredOffice 2021-10-01 2022-09-30 01092292 d:Buildings 2021-10-01 2022-09-30 01092292 d:Buildings d:LongLeaseholdAssets 2021-10-01 2022-09-30 01092292 d:Buildings d:ShortLeaseholdAssets 2021-10-01 2022-09-30 01092292 d:PlantMachinery 2021-10-01 2022-09-30 01092292 d:PlantMachinery 2022-09-30 01092292 d:PlantMachinery 2021-09-30 01092292 d:PlantMachinery d:OwnedOrFreeholdAssets 2021-10-01 2022-09-30 01092292 d:MotorVehicles 2021-10-01 2022-09-30 01092292 d:MotorVehicles 2022-09-30 01092292 d:MotorVehicles 2021-09-30 01092292 d:MotorVehicles d:OwnedOrFreeholdAssets 2021-10-01 2022-09-30 01092292 d:FurnitureFittings 2021-10-01 2022-09-30 01092292 d:FurnitureFittings 2022-09-30 01092292 d:FurnitureFittings 2021-09-30 01092292 d:FurnitureFittings d:OwnedOrFreeholdAssets 2021-10-01 2022-09-30 01092292 d:OtherPropertyPlantEquipment 2021-10-01 2022-09-30 01092292 d:OwnedOrFreeholdAssets 2021-10-01 2022-09-30 01092292 d:Goodwill 2021-10-01 2022-09-30 01092292 d:CurrentFinancialInstruments 2022-09-30 01092292 d:CurrentFinancialInstruments 2021-09-30 01092292 d:CurrentFinancialInstruments d:WithinOneYear 2022-09-30 01092292 d:CurrentFinancialInstruments d:WithinOneYear 2021-09-30 01092292 d:ShareCapital 2022-09-30 01092292 d:ShareCapital 2021-09-30 01092292 d:ShareCapital 2020-10-01 01092292 d:RevaluationReserve 2021-10-01 2022-09-30 01092292 d:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 01092292 d:RetainedEarningsAccumulatedLosses 2022-09-30 01092292 d:RetainedEarningsAccumulatedLosses 2020-10-01 2021-09-30 01092292 d:RetainedEarningsAccumulatedLosses 2021-09-30 01092292 d:RetainedEarningsAccumulatedLosses 2020-10-01 01092292 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-09-30 01092292 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-09-30 01092292 d:FinancialAssetsAmortisedCost 2022-09-30 01092292 d:FinancialAssetsAmortisedCost 2021-09-30 01092292 d:FinancialLiabilitiesAmortisedCost 2022-09-30 01092292 d:FinancialLiabilitiesAmortisedCost 2021-09-30 01092292 c:OrdinaryShareClass1 2021-10-01 2022-09-30 01092292 c:OrdinaryShareClass1 2022-09-30 01092292 c:OrdinaryShareClass1 2021-09-30 01092292 c:FRS102 2021-10-01 2022-09-30 01092292 c:Audited 2021-10-01 2022-09-30 01092292 c:FullAccounts 2021-10-01 2022-09-30 01092292 c:PrivateLimitedCompanyLtd 2021-10-01 2022-09-30 01092292 d:Subsidiary1 2021-10-01 2022-09-30 01092292 d:Subsidiary1 1 2021-10-01 2022-09-30 01092292 d:WithinOneYear 2022-09-30 01092292 d:WithinOneYear 2021-09-30 01092292 d:BetweenOneFiveYears 2022-09-30 01092292 d:BetweenOneFiveYears 2021-09-30 01092292 c:Consolidated 2022-09-30 01092292 c:ConsolidatedGroupCompanyAccounts 2021-10-01 2022-09-30 01092292 2 2021-10-01 2022-09-30 01092292 5 2021-10-01 2022-09-30 01092292 6 2021-10-01 2022-09-30 01092292 7 2021-10-01 2022-09-30 xbrli:shares iso4217:GBP xbrli:pure

01092292







SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES

DIRECTORS' REPORT AND AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED
30 SEPTEMBER 2022































SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
COMPANY INFORMATION


Directors
T. M. Bishop 
T. J. Bishop 
S. E. Bishop 
S. M. Bishop 




Registered number
01092292



Registered office
Waldens Road

Orpington

Kent

BR5 4EU




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

Lancashire Gate

21 Tiviot Dale

Stockport

SK1 1TD




Accountants
Evelyn Partners (South East) Limited
Level 1 Brockbourne House

77 Mount Ephraim

Tunbridge Wells

Kent

TN4 8BS





SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES

CONTENTS



Page
Group strategic report
 
 
1 - 3
Directors' report
 
 
4 - 6
Independent auditors' report
 
 
7 - 11
Consolidated statement of comprehensive income
 
 
12
Consolidated balance sheet
 
 
13
Company balance sheet
 
 
14
Consolidated statement of changes in equity
 
 
15
Company statement of changes in equity
 
 
16
Notes to the financial statements
 
 
17 - 38


SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022

The directors have pleasure in presenting their Group Strategic Report for the year ended 30 September 2022

Principal activities

The Group continues to operate in the demolition and waste management sector
 
Business review

The Group has had another challenging year even with an increase in turnover of 10%, as the Demolition business started back up after being practically dormant during the Covid-19 pandemic period and the waste management sector was still dealing with the aftershock of catastrophic fire to the operating plant. The Directors sought to review the value of the property assets held in the group and obtained professional valuations of each property for the group to revalue its significant property holding, so as to more accurately reflect the strength of the asset base held.
The Directors have continued to look at areas of the Group where cost savings can be achieved as well as looking at price structures to ensure the GP% moves closer towards 25%.
 
Demolition
The Directors’ response after pandemic was to gradually build up the work carried out by Syd Bishop & Sons (Demolition) Limited to work towards profitability but they recognised that this was not going to be achieved over a short period of time. The negative gross profit margin moved from 8% in 2021 to 17% in 2022, with the overall operating loss falling from £723k in 2021 to £591k in 2022. Administration expenses decreased by £0.5m due to a reduction in staff costs, whilst other operating income was £nil, following £0.25m furlough income in the prior period.
The Demolition company experienced losses totalling £0.5m in 2022 (2021: £0.6m) and the subsidiary has net liabilities totalling £4.5m (2021: £3.9m) at 30 September 2022 as a result.
Waste, Transport and Asbestos Landfill
The Waste, Transport and Asbestos Landfill parts of the business (comprising Pinden Limited, Erith Waste Management Limited and Asbestos Waste Management Limited) experienced an overall increase in turnover of 8% with gross profit margin static at 24%. The impact of inflationary pressures on all costs, specifically wage and fuel costs put significant pressure on the profitability, together with the damaging impact of the 2020 fire on the customer base. These had a significant effect upon the business which, together with provisions being made against loans with entities within the Watch It Come Down group totalling £0.2m and the increased cost of finance, led the business to suffer a loss of £0.9m.
Waste Transfer Station
The impact of the fire in August 2020 continued to be felt in 2022 as the Company tried to rebuild its general waste customer base. Further pressure came from the increased cost of energy to supply the plant, and the significant wage pressures felt as economic inflationary pressure mounted. However, the Directors have sought to secure energy security in the future by looking at a renewable energy solution for the site.
Transport
The skip business maintained its position in the market, but the continued pressure on drivers’ wages cannot be discounted. The Directors sought to incentivise members of the transport team with increasing productivity bonuses to maintain the appropriate staffing levels. Furthermore, the Directors have instigated a review of the digital presence of the business to help maintain and improve the position in the market.
Asbestos Landfill
The market is tough, but the position has remained steady with no further contraction.
 
Page 1

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022

Group summary
The Group headed by Syd Bishop & Sons (Demolition) Limited (‘the Group’) has net assets totalling £4.2m at 30 September 2022 (2021: £2.3m) and net current liabilities totalling £4.3m (2021: £7.2m). The Group meets its working capital requirements through cash generated from operations and bank funding. The increase in net assets is due to a £3.4m surplus arising upon revaluation of group properties, outweighing the group’s £1.5m loss in the period.
At 30 September 2021, the Group breached its bank covenants, and the breaches continued throughout the year until they were waived by the Bank in September 2022.
Subsequent to the year-end, the Group breached its bank covenants, and tax liabilities totalling £2.3m were overdue for payment. 
In November 2023, the main trading company in the Group, Pinden Limited, arranged a £5.5m commercial bridging loan which is enabling the tax liabilities to be paid under the terms of a payment arrangement, and Shawbrook Bank loans and invoice discounting facilities have been settled early. The bridging loan is repayable in November 2024, less than 12 months after the date of these accounts being approved, and the Group intends to either sell property that is not required for the day to day running of the Group’s business, or arrange new, longer-term bank facilities, ahead of the repayment date. 
During the year, the Group started to see an improvement in its order book and the unaudited management accounts for the year to 30 September 2023 show an improvement in results. The Directors are confident that further improvements will be seen in the year ended 30 September 2024, as they build the solid foundations towards profitability.
The Directors feel confident about the trading future of the business and look forward to the year ahead.


Principal risks and uncertainties
 
The Group uses financial instruments including bank loans, invoice discounting and hire purchase agreements. These instruments expose the Group to several financial risks, which are described below:
Funding risk
The Group finances its operations through a combination of equity, bank loans, invoice discounting, hire purchase contracts and working capital. The Group undertakes short-term cash forecasting to monitor its expected cash flows against its cash availability and finance facilities. The Group also undertakes longer term cash forecasting to monitor its expected funding requirements in order to meet its current business plan, in the context of its existing facilities, and to identify and address its requirement for future funding facilities.
Interest risk
The Group finances its operations through a mixture of profits and bank and hire purchase borrowings.
Liquidity risk
In normal trading periods, the Group seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet ongoing operations and future development. Short term debt finance flexibility is achieved by invoice discounting, hire purchase and bank loans which helps to smooth the cashflow in a seasonally affected industry.
Currently liquidity risk is being managed by the directors in accordance with the usual procedures, but utilising the short term bridging facilities in place. The directors have/are close to securing an invoice discounting facility, which together with planned property sales will address any liquidity risk for the longer term.
 
Page 2

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022

Credit risk
The Group principal financial assets are cash and trade debtors. In order to manage credit risk, the directors set limits for customers based on carrying out independent credit checks, credit agency and third-party references. Payment history is also monitored based on trading history. Credit limits are reviewed on a regular basis by the credit control team in conjunction with debt aging and collection history.
Competitive risks
The Group operates in competitive markets. The breadth of the client base reduces the possible effect of the loss of any one single client. The Group focuses on providing clients with a high level of service and wide range of services. This enables the Group to maintain long-term relationships with clients and attract new custom.

Compliance risk
Compliance is central to everything the Group does, particularly the operation of a landfill site, recycling facility and waste transfer stations alongside carrying out demolition services and managing a large fleet of vehicles and plant and machinery. The Group has continually invested in people and systems whilst engaging with external professional bodies and stakeholders to ensure the business the highest standards and levels of compliance.

Financial key performance indicators

The financial key performance indicators of the group are detailed for the last 3 years below:

2022
2021
2020
£
£
£
Turnover £'000


12,754

11,584
 
12,476
 
Gross profit £'000


2,972

2,967
 
2,681
 
Gross profit %


23

26
 
21
 
Operating profit/(loss) £'000


(1,225)

(846)
 
564
 
Operating profit or loss / turnover %


(10)

(7)
 
5
 


This report was approved by the board and signed on its behalf.



S. E. Bishop
Director

Date: 30 January 2024

Page 3

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022

The directors present their report and the financial statements for the year ended 30 September 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the year, after taxation, amounted to £1,448,044 (2021 - loss £698,627).
No dividend was recommended for the year ended 30 September 2022.

Directors

The directors who served during the year were:

T. M. Bishop 
T. J. Bishop 
S. E. Bishop 
S. M. Bishop 

Future developments

Please see the Strategic Report for a description of these.

Page 4

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events and going concern

SBS Company
The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis on which the directors have reached their conclusion.
The Directors’ response after the covid pandemic was to gradually build up the work carried out by Syd Bishop & Sons (Demolition) Limited, to work towards profitability, and it was recognised that this was not going to be achieved over a short time period. The Company’s operating loss fell from £723k in 2021 to £591k in 2022. During the year, the Company started to see an improvement in its order book and the unaudited management accounts for the year to 30 September 2023 show a further reduction in operating losses. The Directors are confident that further improvements will be seen in the year ended 30 September 2024, as they build the solid foundations towards profitability.
The Demolition company experienced losses totalling £0.5m in 2022 (2021: £0.6m) and the Company has net liabilities totalling £4.5m (2021: £3.9m) at 30 September 2022 as a result.
The Company currently meets its working capital requirements through its cash balances and intercompany loans, aided by the Group headed by Watch It Come Down Limited’s facility with Together Finance. The Company relies on continued financial support from its parent company, Watch It Come Down and the group subsidiaries. Such financial support has been confirmed by the Watch It Come Down group.
SBS Group
The SBS Group has net assets totalling £4.2m at 30 September 2022 (2021: £2.3m) and net current liabilities totalling £4.3m (2021: £7.2m). The Group meets its working capital requirements through cash generated from operations and bank funding.
At 30 September 2021, the Group breached its bank covenants, and the breaches continued throughout the year until they were waived by the Bank in September 2022.
Subsequent to the year-ended 30 September 2022, the Group again breached its bank covenants, and tax liabilities, totalling £2.3m, were overdue for payment. 
In November 2023, the main trading company in the Group, Pinden Limited, arranged a £5.5m commercial bridging loan which is enabling the tax liabilities to be paid under the terms of a time to pay arrangement, and Shawbrook Bank loans and invoice discounting facilities have been settled early. The bridging loan is repayable in November 2024, less than 12 months after the financial statements have been approved.
 
Page 5

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022

The directors believe it is appropriate, to prepare the consolidated financial statements to 30 September 2022 on a going concern basis. The directors are expecting to agree a new Working capital facility for the Group imminently, but acknowledge that long-term bank facilities are not yet in place, and Group and Company property assets have not yet been sold, at the date of these financial statements. This represents a material uncertainty over the Group and Company’s ability to continue to trade as a going concern. However, given the significant value in the property assets held in the group headed by Watch It Come Down Limited amounting to £15m, together with further group tangible assets of £6m, the Directors are very confident that a long-term refinance will be achievable ahead of the repayment date, alongside the sale of the Watch It Come Down group’s development land asset.  
 
This report was approved by the board and signed on its behalf.
 





S. E. Bishop
Director

Date: 30 January 2024

Page 6

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES

Opinion


We have audited the financial statements of Syd Bishop & Sons (Demolition) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2022, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 30 September 2022 and of the Group's loss 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Material uncertainty related to going concern


We draw attention to note 2.4 in the financial statements, which indicates that conditions exist which indicate that a material uncertainty exists that may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.


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.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
 
Key audit matters

Except for the matter described in the Material uncertainty related to going concern section, we have determined that there are no other key audit matters to be communicated in our report.

Page 7

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report 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 Directors' report.


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


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 Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 8

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES (CONTINUED)

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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


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

Opinion
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
 
The nature of the industry and sector in which the Group and Company operates; the control environment and business performance including key drivers for performance targets.
 
The outcome of enquiries of management, including whether management was aware of any instances  of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. 
 
Supporting documentation relating to the Group and Company's policies and procedures for:
- Identifying, evaluating, and complying with laws and regulations
- Detecting and responding to the risks of fraud
 
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
 
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
 
The legal and regulatory framework in which the Group and Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Group and Company, including General Data Protection requirements, Anti-bribery and Corruption and regulations associated with   the Group and Company’s waste carrier registrations, waste operations permits and landfill permit.
 
Page 9

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES (CONTINUED)

Audit response to risks identified
Our procedures to respond to the risks identified included the following:
 
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
 
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
 
Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
 
Enquiring of management about any actual and potential litigation and claims.
 
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
 
We have also considered the risk of fraud through management override of controls by:
 
Testing the appropriateness of journal entries and other adjustments. 
 
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
 
Evaluating the rationale of any significant transactions that are unusual or outside the normal course of business.
 
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement  team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed  non-compliance with laws and regulations are from the events and transactions reflected in the financial  statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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 Auditors' report.


Page 10

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES (CONTINUED)

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 2006Our 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 an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Anthony Woodings (Senior statutory auditor)
  
for and on behalf of
Hurst Accountants Limited
 
Chartered Accountants
Statutory Auditors
  
Lancashire Gate
21 Tiviot Dale
Stockport
SK1 1TD

Date: 30 January 2024
Page 11

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
12,753,994
11,584,304

Cost of sales
  
(9,781,787)
(8,617,380)

Gross profit
  
2,972,207
2,966,924

Administrative expenses
  
(4,200,469)
(4,535,361)

Other operating income
 5 
3,577
722,557

Operating loss
 6 
(1,224,685)
(845,880)

Interest receivable and similar income
  
79
-

Interest payable and similar expenses
 8 
(345,394)
(295,591)

Loss before taxation
  
(1,570,000)
(1,141,471)

Tax on loss
 9 
121,956
442,844

Loss for the year
  
(1,448,044)
(698,627)

  

Unrealised surplus on revaluation of tangible fixed assets
  
3,411,152
-

  

Total comprehensive income for the year
  
1,963,108
(698,627)

(Loss) for the year attributable to:
  

Owners of the parent Company
  
(1,448,044)
(698,627)

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
1,963,108
(698,627)

The notes on pages 17 to 38 form part of these financial statements.

Page 12

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
REGISTERED NUMBER:01092292

CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 10 
36,000
-

Tangible assets
 11 
14,991,671
11,902,253

Current assets
  

Stocks
 13 
164,511
125,754

Debtors: amounts falling due within one year
 14 
4,711,052
4,764,731

Cash at bank and in hand
  
162,139
799,428

  
5,037,702
5,689,913

Creditors: amounts falling due within one year
 15 
(9,338,328)
(12,868,536)

Net current liabilities
  
 
 
(4,300,626)
 
 
(7,178,623)

Total assets less current liabilities
  
10,727,045
4,723,630

Creditors: amounts falling due after more than one year
 16 
(4,023,849)
(15,745)

Provisions for liabilities
  

Provisions
 21 
(2,470,957)
(2,438,754)

  
 
 
(2,470,957)
 
 
(2,438,754)

Net assets
  
4,232,239
2,269,131


Capital and reserves
  

Called up share capital 
 22 
12,000
12,000

Revaluation reserve
 23 
3,411,152
-

Profit and loss account
 23 
809,087
2,257,131

  
4,232,239
2,269,131


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


S. E. Bishop
T. J. Bishop
Director
Director


Date: 30 January 2024

The notes on pages 17 to 38 form part of these financial statements.

Page 13

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
REGISTERED NUMBER:01092292

COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 11 
203,499
270,114

Investments
 12 
100
100

  
203,599
270,214

Current assets
  

Stocks
 13 
11,464
11,464

Debtors: amounts falling due within one year
 14 
295,728
376,706

Cash at bank and in hand
  
91,399
6,898

  
398,591
395,068

Creditors: amounts falling due within one year
 15 
(5,077,732)
(4,592,124)

Net current liabilities
  
 
 
(4,679,141)
 
 
(4,197,056)

Total assets less current liabilities
  
(4,475,542)
(3,926,842)

  

  

Net liabilities
  
(4,475,542)
(3,926,842)


Capital and reserves
  

Called up share capital 
 22 
12,000
12,000

Profit and loss account
  
(4,487,542)
(3,938,842)

  
(4,475,542)
(3,926,842)


The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements. The loss after tax of the parent company for the year was £548,700 (2021: £601,453).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


S. E. Bishop
T. J. Bishop
Director
Director


Date: 30 January 2024

The notes on pages 17 to 38 form part of these financial statements.

Page 14

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022


Called up share capital
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£


At 1 October 2020
12,000
-
2,955,758
2,967,758
2,967,758



Loss for the year
-
-
(698,627)
(698,627)
(698,627)



At 1 October 2021
12,000
-
2,257,131
2,269,131
2,269,131



Loss for the year
-
-
(1,448,044)
(1,448,044)
(1,448,044)

Surplus on revaluation of freehold property, net of deferred tax
-
3,411,152
-
3,411,152
3,411,152


At 30 September 2022
12,000
3,411,152
809,087
4,232,239
4,232,239


The notes on pages 17 to 38 form part of these financial statements.

Page 15

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 October 2020
12,000
(3,337,389)
(3,325,389)



Loss for the year
-
(601,453)
(601,453)



At 1 October 2021
12,000
(3,938,842)
(3,926,842)



Loss for the year
-
(548,700)
(548,700)


At 30 September 2022
12,000
(4,487,542)
(4,475,542)


The notes on pages 17 to 38 form part of these financial statements.

Page 16

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

1.


General information

Syd Bishop and Sons (Demolition) Limited ('the Company') is a private limited company limited by shares and domiciled and incorporated in England and Wales.
The address of its registered office and its place of business is Waldens Depot, Waldens Road, Orpington, Kent, BR5 4EU.
The principal activities of the Company continue to be that of demolition. The trading subsidiaries' principal activities continue to be those of landfill waste management operations, skip hire and asbestos waste management.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

Monetary amounts in these financial statements are stated in pounds sterling and are rounded to the nearest whole £1, except where otherwise indicated.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 17

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.3

Financial reporting standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Watch It Come Down Limited  as at 30 September 2022 and these financial statements may be obtained from Companies House, Cardiff, CF4 3UZ.
 
 
2.4

Going concern

SBS Company
The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis on which the directors have reached their conclusion.
The Directors’ response after the covid pandemic was to gradually build up the work carried out by Syd Bishop & Sons (Demolition) Limited, to work towards profitability, and it was recognised that this was not going to be achieved over a short time period. The Company’s operating loss fell from £723k in 2021 to £591k in 2022. During the year, the Company started to see an improvement in its order book and the unaudited management accounts for the year to 30 September 2023 show a further reduction in operating losses. The Directors are confident that further improvements will be seen in the year ended 30 September 2024, as they build the solid foundations towards profitability.
The Demolition company experienced losses totalling £0.5m in 2022 (2021: £0.6m) and the Company has net liabilities totalling £4.5m (2021: £3.9m) at 30 September 2022 as a result.
The Company currently meets its working capital requirements through its cash balances and intercompany loans, aided by the Group headed by Watch It Come Down Limited’s facility with Together Finance. The Company relies on continued financial support from its parent company, Watch It Come Down and the group subsidiaries. Such financial support has been confirmed by the Watch It Come Down group.
SBS Group
The SBS Group has net assets totalling £4.2m at 30 September 2022 (2021: £2.3m) and net current liabilities totalling £4.3m (2021: £7.2m). The Group meets its working capital requirements through cash generated from operations and bank funding.
At 30 September 2021, the Group breached its bank covenants, and the breaches continued throughout the year until they were waived by the Bank in September 2022.
Subsequent to the year-ended 30 September 2022, the Group again breached its bank covenants, and tax liabilities, totalling £2.3m, were overdue for payment. 
 
Page 18

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)


2.4
Going concern (continued)

In November 2023, the main trading company in the Group, Pinden Limited, arranged a £5.5m commercial bridging loan which is enabling the tax liabilities to be paid under the terms of a time to pay arrangement, and Shawbrook Bank loans and invoice discounting facilities have been settled early. The bridging loan is repayable in November 2024, less than 12 months after the financial statements have been approved.
The directors believe it is appropriate, to prepare the consolidated financial statements to 30 September 2022 on a going concern basis. The directors are expecting to agree a new Working capital facility for the Group imminently, but acknowledge that long-term bank facilities are not yet in place, and Group and Company property assets have not yet been sold, at the date of these financial statements. This represents a material uncertainty over the Group and Company’s ability to continue to trade as a going concern. However, given the significant value in the property assets held in the group headed by Watch It Come Down Limited amounting to £15m, together with further group tangible assets of £6m, the Directors are very confident that a long-term refinance will be achievable ahead of the repayment date, alongside the sale of the Watch It Come Down group’s development land asset. 

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Demolition contracts
 
When the outcome of contracts can be estimated reliably, contract revenue and costs are recognised and revenue and expenses respectively by reference to the stage of completion at the end of the reporting period.  Reliable estimation of the outcome of demolition contracts required estimates of the stage of completion, future costs and collectability of billings.  The stage of completion is measured by surveys of work performed.
 
When the outcome of a contract cannot be estimated reliably, revenue is only recognised to the extent of contract costs incurred that it is probable will be recoverable.  When it is probable that the total contract costs will exceed contract revenue on a demolition contract, the expected loss shall be recognised as a expense immediately, with a corresponding provision for an onerous contract.  Revenue in respect of variations to contracts is recognised when it is probably it will be agreed by the customer.
Revenue from the saleable materials which are retrieved from demolition sites is recognised when they are delivered to the customer.
Revenue from landfill and waste recycling operations is recognised when the waste is deposited.
Revenue from skip hire is recognised when the skips are delivered.
Revenue from asbestos disposal is recognised on the date on which customers' waste material is disposed of.

Page 19

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives:

Depreciation is provided on the following basis:

Freehold buildings
-
38 years and 50 years
Freehold land
-
Over the life of the site
S/T leasehold property
-
Over the 21-year lease term
Plant and machinery
-
25% on reducing balance and 10% straight line for recycling facility
Motor vehicles
-
25% on reducing balance
Fixtures and fittings
-
25% on reducing balance
Landfill site
-
Over the life of the site (see below)

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of income and retained earnings.

The landfill site is depreciated over its expected useful economic life, as calculated by the proportion of the site which has been filled with waste, relative to its estimated total capacity.
No depreciation is provided on assets under construction. When complete, the asset is transferred to the relevant class and depreciated in accordance with the above policy.

 
2.7

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

Page 20

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.8

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Amortisation is provided on the following basis:
 
          Goodwill            -           20%  straight line

 
2.9

 Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

 Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Consolidated statement of income and retained earnings.

 
2.11

 Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

  
2.12

 Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

Page 21

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.13

 Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.14

 Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

 Finance costs

Finance costs are charged to the Consolidated statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.16

 Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated statement of income and retained earnings on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

  
2.17

  Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Company. 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 Consolidated statement of income and retained earnings so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.18

 Pensions

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 22

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.19

 Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance sheet date.

 
2.20

 Interest income

Interest income is recognised in the Consolidated statement of income and retained earnings using the effective interest method.

 
2.21

 Borrowing costs

All borrowing costs are recognised in the Consolidated statement of income and retained earnings in the year in which they are incurred.

 
2.22

 Provisions for aftercare costs

Aftercare costs are those of reinstating the landfill site at the end of its usage, and of monitoring the site thereafter, as required by the Environment Agency. Provision is made based on the costs estimated at the balance sheet date. The provision is allocated over the estimated useful life of the site, based on the current rate of landfill. The provision is calculated in present-value terms.

 
2.23

 Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated statement of income and retained earnings except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 23

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.24

 Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Specifically, management make judgements relating to the depreciation of the landfill site. This charge is based on the estimated level of fill as a proportion of the space within the landfill cells available. The carrying value of the landfill site at 30 September 2022 was £383,931 (2021: £264,203).
Management also make judgements in relation to the provision made for aftercare costs. The total aftercare costs were calculated by an independent expert and a proportion of this is included within the accounts based on the level of fill of the entire site. The carrying value of the aftercare provision at 30 September 2022 was £2,470,957 (2021: £2,438,754).


4.


Turnover

All turnover arose within the United Kingdom.


5.


Other operating income

2022
2021
£
£

Net rents receivable
705
2,115

Coronavirus Job Retention Scheme Grants
-
510,940

Insurance claims receivable
2,872
209,502

3,577
722,557


Page 24

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

6.


Operating loss

The operating loss is stated after charging:

2022
2021
£
£

Depreciation of tangible fixed assets - owned by the group
1,288,916
1,259,124

Depreciation of tangible fixed assets - held under finance leases
81,081
127,142

Fees payable to the Group's auditor for the audit of the Group's annual financial statements
27,500
25,500

Profit on the sale of fixed assets
(221,402)
(147,311)

Operating lease rentals - plant and machinery
149,431
158,090

Operating lease rentals - other operating leases
93,637
41,919

Defined contribution pension cost
91,624
94,460

Auditors' fees for the Company were £6,600 (2021: £6,100).

Page 25

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Wages and salaries
4,059,769
4,539,234
499,149
796,105

Social security costs
455,948
441,941
58,464
79,078

Cost of defined contribution scheme
91,624
94,460
10,623
16,478

4,607,341
5,075,635
568,236
891,661

The average monthly number of employees, including the directors, during the year was as follows:


2022
2021
No.
No.



Directors
4
3

Administration staff
20
28

Production staff
78
79

102
110




8.


Interest payable and similar expenses

2022
2021
£
£


Bank interest payable
259,415
213,435

Other loan interest payable
50,729
48,455

Finance leases and hire purchase contracts
35,250
33,701

345,394
295,591

Page 26

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

9.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
(37,434)
-

Adjustments in respect of previous periods
(84,522)
(216,987)


Total current tax
(121,956)
(216,987)

Deferred tax


Origination and reversal of timing differences
-
(155,049)

Effect of tax rate change on opening balance
-
(70,808)

Total deferred tax
-
(225,857)


Taxation on loss on ordinary activities
(121,956)
(442,844)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Loss on ordinary activities before tax
(1,953,839)
(1,141,471)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(371,229)
(216,879)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
96,294
1,229

Adjustment for qualifying R&D expenditure
21,327
-

Adjust for closing deferred tax at 25% rate
(80,087)
(108,019)

Adjustments to tax charge in respect of prior periods
(84,522)
(216,987)

Surrendered R&D tax credit
(37,434)
-

Group relief
-
4,308

Deferred tax not recognised
333,695
93,504

Total tax credit for the year
(121,956)
(442,844)

Page 27

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
 
9.Taxation (continued)


Factors that may affect future tax charges

The Group has trading losses of £4,858,181 (2021: £2,865,097) available to carry forward against future trading profits. 
The Company has trading losses of £2,388,005 (2021: £1,929,978) available to carry forward against future trading profits. 


10.


Intangible assets

Group





Goodwill

£



Cost


At 1 October 2021
1,087,000


Additions
36,000



At 30 September 2022

1,123,000



Amortisation


At 1 October 2021
1,087,000



At 30 September 2022

1,087,000



Net book value



At 30 September 2022
36,000



At 30 September 2021
-

The Company has no intangible assets.



Page 28

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

11.


Tangible fixed assets

Group






Freehold property
Assets under   construction
Short-term leasehold property
Plant and machinery
Motor vehicles

£
£
£
£
£



Cost or valuation


At 1 October 2021
6,594,540
664,541
173,773
12,415,595
5,723,109


Additions
-
14,756
-
843,816
97,100


Disposals
-
-
-
(339,270)
-


Revaluations
1,242,234
-
-
-
-



At 30 September 2022

7,836,774
679,297
173,773
12,920,141
5,820,209



Depreciation


At 1 October 2021
1,910,144
-
48,874
7,610,509
4,496,823


Charge for the year on owned assets
173,001
-
8,040
716,782
308,580


Charge for the year on financed assets
-
-
-
81,081
-


Disposals
-
-
-
(330,972)
-


Revaluations
(2,083,145)
-
-
-
-



At 30 September 2022

-
-
56,914
8,077,400
4,805,403



Net book value



At 30 September 2022
7,836,774
679,297
116,859
4,842,741
1,014,806



At 30 September 2021
4,684,396
664,541
124,899
4,805,086
1,226,286
Page 29

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

           11.Tangible fixed assets (continued)


Fixtures and fittings
Landfill sites
Total

£
£
£



Cost or valuation


At 1 October 2021
451,542
5,111,291
31,134,391


Additions
16,934
-
972,606


Disposals
-
-
(339,270)


Revaluations
-
(4,727,360)
(3,485,126)



At 30 September 2022

468,476
383,931
28,282,601



Depreciation


At 1 October 2021
318,700
4,847,088
19,232,138


Charge for the year on owned assets
32,513
50,000
1,288,916


Charge for the year on financed assets
-
-
81,081


Disposals
-
-
(330,972)


Revaluations
-
(4,897,088)
(6,980,233)



At 30 September 2022

351,213
-
13,290,930



Net book value



At 30 September 2022
117,263
383,931
14,991,671



At 30 September 2021
132,842
264,203
11,902,253

Included in land and buildings is freehold land at a revalued amount of £1,751,105 (2021: £1,391,414, which is not depreciated.

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2022
2021
£
£



Plant and machinery
567,567
-

Motor vehicles
79,000
381,425

646,567
381,425

Page 30

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

At the balance sheet date, Freehold property and Landfill sites have been revalued to £7,836,774 and £383,931 respectively. The valuations at 30 September 2022 were carried out by a third party, Avison Young on behalf of the bank, on an open market value for existing use basis. 

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2022
2021
£
£

Group


Cost
6,594,540
6,594,540

Accumulated depreciation
(2,027,438)
(1,910,144)

Net book value
4,567,102
4,684,396


Company






Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£

Cost or valuation


At 1 October 2021
1,816,162
416,171
93,754
2,326,087


Additions
-
-
1,159
1,159



At 30 September 2022

1,816,162
416,171
94,913
2,327,246



Depreciation


At 1 October 2021
1,595,661
382,918
77,394
2,055,973


Charge for the year on owned assets
55,126
8,316
4,332
67,774



At 30 September 2022

1,650,787
391,234
81,726
2,123,747



Net book value



At 30 September 2022
165,375
24,937
13,187
203,499



At 30 September 2021
220,501
33,253
16,360
270,114












Page 31

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

12.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 October 2021 and at 30 September 2021
100





Direct subsidiary undertaking


The following is a subsidary undertaking of the Company:

Name

Principal activity

Class of shares

Holding

Pinden Limited
Landfill and waste management operations
Ordinary
100%

The registered office address for the subsidiary companies listed above and below is Waldens Depot, Waldens Road, Orpington, Kent, BR5 4EU.


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Erith Waste Management Limited
Skip hire
Ordinary
100%
Bexleyheath Skips Limited
Dormant company
Ordinary
100%
Erith Waste Recycling Limited
Dormant company
Ordinary
100%
Asbestos Waste Solutions Limited
Asbestos waste management
Ordinary
100%


13.


Stocks

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Fuel stock and raw materials for skips
161,047
122,290
10,000
10,000

Tyre stock
3,464
3,464
1,464
1,464

164,511
125,754
11,464
11,464


Page 32

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

14.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Trade debtors
1,816,631
1,838,625
65,398
112,008

Amounts owed by group undertakings
2,024,814
1,989,772
-
-

Other debtors
391,400
341,744
127,963
137,676

Prepayments and accrued income
112,079
144,507
102,367
127,022

Deferred taxation
366,128
450,083
-
-

4,711,052
4,764,731
295,728
376,706



15.


Creditors: Amounts falling due within one year


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Bank overdrafts
-
12,884
-
12,884

Bank loans
168,402
4,030,470
-
-

Trade creditors
1,563,573
861,392
272,767
63,711

Invoice discounting advances
1,010,373
926,948
-
-

Amounts owed to group undertakings
4,382,266
4,294,589
4,493,933
3,967,501

Other taxation and social security
1,766,564
2,053,540
192,104
282,831

Obligations under finance lease and hire purchase contracts
131,213
219,013
-
-

Other creditors
192,341
322,434
103,428
254,397

Accruals and deferred income
123,596
147,266
15,500
10,800

9,338,328
12,868,536
5,077,732
4,592,124


Secured liabilities
At the year end, the Group, of which the Company is a subsidiary of, had a cross-company guarantee in favour of Shawbrook Bank Limited, secured via a mortgage debenture in favour of the bank over all the assets of the Group. The cross-company guarantee was in relation to bank loans and invoice discounting facilities provided to the Company. In November 2023 the Group refinanced with new lenders and there is no longer any cross-company guarantee in place. 
Invoice discounting advances are secured by a charge on present and future debts, related rights, revenues or claims of the company.

Page 33

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

16.


Creditors: Amounts falling due after more than one year

Group
Group
2022
2021
£
£

Bank loans
3,572,413
-

Obligations under finance leases and hire purchase contracts
451,436
15,745

4,023,849
15,745


The finance lease liabilities are secured by the assets to which they relate. The aggregate finance lease liability at the year-end amounted to £582,649 (2021: £234,758).




17.


Loans




Group
Group
2022
2021
£
£

Amounts falling due within one year

Amounts falling due within one year
168,402
4,030,470

Amounts falling due 1-2 years
3,572,413
-

3,740,815
4,030,470


Terms of Bank loans
Included in bank loans are amounts totalling £3,740,815 bearing interest at 5.65% above base rate per annum. The loan was repayable in monthly instalments of £24,138, commencing August 2021, with the balance due in January 2036. Arrangement fees totalling £121,254 have been capitalised and offset against the bank loan balance and were being amortised over the loan term.
Disclosure
At 30 September 2021, the Group breached its bank covenants, and the breaches continued throughout the year until they were waived by the Bank in September 2022.
In November 2023, the Group arranged a £5.5m commercial bridging loan which enabled the Shawbrook Bank loans to be settled early. The bridging loan is repayable in November 2024.

Page 34

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2022
2021
£
£

Within one year
131,213
219,013

Between 1-2 years
137,837
15,745

Between 2-5 years
313,599
-

582,649
234,758

The finance lease liabilities are secured by the assets to which they relate, in addition to security held  for the bank loans as noted above. The aggregate finance lease liability at the year-end amounted to £582,649 (2021: £234,758). This secured debt is included in the total sum referred to in the contingent liabilities note.


19.


Financial instruments







Group
2022
Group
2021
Company 2022
Company 2021
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
162,139
799,427
91,399
6,898

Financial assets that are debt instruments measured at amortised cost
2,211,482
3,922,149
193,361
112,009

2,373,621
4,721,576
284,760
118,907


Financial liabilities

Financial liabilities measured at amortised cost
(6,079,378)
(9,756,527)
(4,870,128)
(3,617,936)


Financial assets measured at fair value through profit or loss comprise of cash and cash equivalents.


Financial assets measured at amortised cost comprise of trade debtors, balances due from group companies and other debtors.


Financial liabilities measured at amortised cost comprise of trade creditors, balances due to group companies, finance leases, bank loans and overdrafts, and other creditors.

Page 35

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

20.


Deferred taxation


Group



2022
2021


£

£






Asset at beginning of year
450,083
224,226


Charged to profit or loss
-
225,857


Charged to other comprehensive income
(83,955)
-



Asset at end of year
366,128
450,083

The deferred tax asset is made up as follows:

Group
Group
2022
2021
£
£

Fixed asset temporary differences
37,568
130,825

Short term temporary differences
38,127
29,872

Losses and other deductions
374,388
289,386

Unrealised capital gains
(83,955)
-

366,128
450,083


21.


Provisions


Group



Other provisions

£





At 1 October 2021
2,438,754


Charged to profit or loss
32,203



At 30 September 2022
2,470,957

The aftercare provision relates to the Group's obligation to reinstate the land after quarrying and landfill, and of monitoring the site thereafter, as required by the Environment Agency, which is expected to take place in 22 years.
The Company has no provisions.

Page 36

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

22.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



12,000 (2021 - 12,000) Ordinary shares of £1.00 each
12,000
12,000



23.


Reserves

Revaluation reserve

The revaluation reserve comprises the cumulative effect of revaluations of freehold land and buildings.

Profit and loss account

The cumulative profit and loss, net of distribution to owners.


24.


Contingent liabilities

At the year-end, the Company had a cross-company guarantee in favour of Shawbrook Bank Limited. The cross-company guarantee was in relation to bank loans and invoice discounting facilities provided to the Group, totalling £4,841,186 (2021: £4,957,418), none of which is recognised as a liability of the Company.
The Company also had a mortgage debenture in favour of Shawbrook Bank Limited over all the assets of the Company. The guarantee and debenture were removed subsequent to the year-end when the Group arranged new short-term facilities.


25.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £91,624 (2021: £94,460). Contributions totalling £64,664 (2021: £50,139) were payable to the fund at the balance sheet date and are included in creditors.

Page 37

SYD BISHOP & SONS (DEMOLITION) LIMITED AND SUBSIDIARY COMPANIES
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

26.


Commitments under operating leases

At 30 September 2022 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Not later than 1 year
17,120
7,071
17,120
7,071

Later than 1 year and not later than 5 years
32,814
-
32,814
-

49,934
7,071
49,934
7,071

At 30 September 2022 the Group had the the following commitments in respect of leases of land and buildings:

Group
Group
2022
2021
£
£

Not later than 1 year
56,387
43,000

Later than 1 year and not later than 5 years
153,542
129,000

Later than 5 years
322,500
365,500

532,429
537,500


27.


Related party transactions

The Company has taken advantage of the exemption provided in section 33.1A of Financial Reporting Standard 102 from the requirement to disclose transactions with wholly owned group members.


28.


Ultimate parent undertaking and controlling party

The Company is a wholly owned subsidiary of Watch It Come Down Limited, which is controlled by the board of directors of this company. Watch It Come Down Limited prepares group financial statements, and copies can be obtained from Companies House, Cardiff, CF4 3UZ.

 
Page 38