Company registration number 05956680 (England and Wales)
SWEEEP KUUSAKOSKI LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SWEEEP KUUSAKOSKI LIMITED
COMPANY INFORMATION
Directors
P Watts
A P Watts
M Kuusilehto
T Kuusakoski
Secretary
P Watts
Company number
05956680
Registered office
Sweeep Building, Gas Road
Sittingbourne
Kent
United Kingdom
ME10 2QB
Auditor
Azets Audit Services
Globe House
Eclipse Park
Sittingbourne Road
Maidstone
Kent
United Kingdom
ME14 3EN
SWEEEP KUUSAKOSKI LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
SWEEEP KUUSAKOSKI LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report and financial statements for the year ended 31 December 2023.
Principal activity
The principal activity of the company is that of a Waste Electrical and Electronic Equipment recycler.
Review of the business
2023 saw an increase in turnover with £16,707,134 in 2023 and £15,902,324 in 2022, driven by an increase in gate fee’s required to manage the energy crisis which significantly increased operating costs in 2023. Sweeep Kuusakoski continue to see higher energy costs and increasing labour costs, which have put pressure on gate fees whilst also squeezing profit margins.
The company has made a profit before interest and taxation of £1,124,385 in 2023 compared with a profit of £2,581,467 in 2022.
The company is committed to promoting best practice and remains active in the industry to ensure standards are upheld and continuously improved. The company also recognises that employee development and training is a vital part of its future success and continues to invest in its teams and their Health and Wellbeing. The company is a 61% subsidiary of Kuusakoski Oy, a global recycling enterprise based in Finland, which provides strong processing and engineering experience.
Principal risks and uncertainties
The board are aware that global commodity price volatility and competitive pressures may affect future margins and are therefore continuing to develop new service offerings and processing techniques in order to remain at the forefront of the industry and reflect what the market wants.
Ongoing legislation changes around POP’s (Persistent Organic Pollutants) will continue to be monitored to ensure the company remain able to meet requirements and flow of outbound material.
The company has a number of key relationships and continues to develop these with a collaborative approach to maintain and extend its offering and client base.
Development and performance of the company
Sweeep Kuusakoski Limited is one of the forerunners of research and development within the industry and continues to innovate and extend its recycling processes in order to optimise the values achieved and minimise the environmental impact of its activities. Sweeep Kuusakoski Limited is also committed to investing in its people to ensure they can help it to continue to provide best value to its customers.
The company continues to work with compliance Schemes, local authorities and other stakeholders to increase the collections of WEEE by innovative means and is actively engaged in promoting and improving best practise within the industry.
Employees
Information on employees is shown in note 5 to the financial statements.
Fixed assets
The movement in fixed assets are shown in note 10.
SWEEEP KUUSAKOSKI LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
The indicators used by management to determine the progress and performance of the company are primarily the gross profit margin achieved and the revenues per tonne of WEEE processed, analysed according to streams. The latter measure being dependent upon commodity prices in the global environment as well as the actual tonnage of WEEE processed.
Financial Instruments
The company manages cash flow and borrowing requirements to maximise the availability of funds to develop income streams whilst ensuring there are sufficient liquid resources to meet the operating needs of the business.
Trade debtors are managed in respect of credit and cash flow risk by policies in place over the credit terms offered to clients and regular monitoring of amounts for both time and credit limits.
Liquidity risk in respect of creditors is managed by ensuring sufficient funds are available to meet amounts as they fall due.
Outlook 2024
At the time of signing these financial statements the board of directors are reviewing the impact of higher electric costs and increasing labour costs for the business, however the board remain confident of another good year in 2024 and remain committed to using all necessary means to secure the company's cashflow and business activities.
The company will continue to take measures to improve efficiency and will invest in improving value added processes, serving key customers and risk management.
T Kuusakoski
Director
25 March 2024
SWEEEP KUUSAKOSKI LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 8. The profit for the year after taxation is £709,443.
Ordinary dividends were declared amounting to £1,000,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P Watts
A P Watts
M Kuusilehto
T Kuusakoski
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
T Kuusakoski
Director
25 March 2024
SWEEEP KUUSAKOSKI LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The directors are responsible for preparing the annual report 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.
SWEEEP KUUSAKOSKI LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SWEEEP KUUSAKOSKI LIMITED
- 5 -
Opinion
We have audited the financial statements of Sweeep Kuusakoski Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SWEEEP KUUSAKOSKI LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SWEEEP KUUSAKOSKI LIMITED
- 6 -
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 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, 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 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, 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 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.
Auditor's 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 auditor's 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 financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
SWEEEP KUUSAKOSKI LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SWEEEP KUUSAKOSKI LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 an auditor's 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.
Claire Parry FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
25 March 2024
Chartered Accountants
Statutory Auditor
Globe House
Eclipse Park
Sittingbourne Road
Maidstone
Kent
United Kingdom
ME14 3EN
SWEEEP KUUSAKOSKI LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
16,707,134
15,902,324
Cost of sales
(12,736,252)
(10,658,719)
Gross profit
3,970,882
5,243,605
Administrative expenses
(2,846,497)
(2,662,138)
Operating profit
4
1,124,385
2,581,467
Interest receivable and similar income
6
13,914
5,836
Interest payable and similar expenses
7
(16,010)
Profit before taxation
1,138,299
2,571,293
Tax on profit
8
(428,856)
(485,274)
Profit for the financial year
709,443
2,086,019
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SWEEEP KUUSAKOSKI LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,820,117
1,626,441
Current assets
Stocks
11
1,027,332
1,029,626
Debtors
12
1,545,274
1,960,576
Cash at bank and in hand
1,437,029
1,997,500
4,009,635
4,987,702
Creditors: amounts falling due within one year
13
(3,104,696)
(2,780,515)
Net current assets
904,939
2,207,187
Total assets less current liabilities
3,725,056
3,833,628
Provisions for liabilities
Deferred tax liability
15
361,105
179,120
(361,105)
(179,120)
Net assets
3,363,951
3,654,508
Capital and reserves
Called up share capital
17
200
200
Share premium account
636
636
Profit and loss reserves
3,363,115
3,653,672
Total equity
3,363,951
3,654,508
The financial statements were approved by the board of directors and authorised for issue on 25 March 2024 and are signed on its behalf by:
T Kuusakoski
Director
Company Registration No. 05956680
SWEEEP KUUSAKOSKI LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
200
636
2,567,653
2,568,489
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
2,086,019
2,086,019
Dividends
9
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2022
200
636
3,653,672
3,654,508
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
709,443
709,443
Dividends
9
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
200
636
3,363,115
3,363,951
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Sweeep Kuusakoski Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sweeep Building, Gas Road, Sittingbourne, Kent, United Kingdom, ME10 2QB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Kuusakoski Group Oy. These consolidated financial statements are available from its registered office, Metsänneidonkuja 10, Kvartti Building, 02130 Espoo, Finland.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.true
Persistent Organic Pollutants (POP’s)
The directors have reviewed the ongoing impact of POP’s legislation and whilst they have continued to see significant effects and disruption it is not expected to affect overall going concern. This said, the directors are regularly monitoring the effects of POP’s on trading and cash and implementing measures for reducing any impacts on the business.
Ongoing Investment
Sweeep Kuusakoski’s ongoing investment in new processes and technology, will allow them to remain competitive whilst also improving quality and dealing with future changes in legislation.
As a consequence of these factors and other evidence available to the directors in respect of the company's trading prospects, the directors are satisfied that the company has sufficient resources to meet its liabilities as they fall due for a period of at least twelve months from the date of signing these financial statements. Accordingly, the financial statements are prepared on a going concern basis and do not include any adjustments which would be necessary if this basis of preparation was inappropriate.
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
5 years straight line
Plant and machinery
5 years to 15 years straight line
Fixtures, fittings & equipment
5 years straight line
Motor vehicles
5 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.6
Stocks
Stocks are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, those overheads that have been incurred in bringing the stocks to their present location and condition.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The critical judgements that the directors have made in the process of applying the company's policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no material indicators of impairments identified during the current financial year other than in respect of bad and doubtful trade debtor balances recognised in the financial statements.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Estimating value in use
Where an indication of impairment exists the directors will carry out an impairment review to determine the recoverable amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the asset or the cash generating unit and a suitable discount rate in order to calculate present value.
Recoverability of receivables
The company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of individual or groups of customers.
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Critical accounting estimates and judgements
(Continued)
- 16 -
Determined residual values and useful exconomic lives of tangible fixed assets (property, plant and equipment)
The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
Provision for liabilities
A provision is recognised when the company has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions for the expected costs of disposal of leaded glass are charged against profits when the glass has been removed from the recycled premises. The effect of the time value of money is not material and therefore the provisions are not discounted.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover
Principal activity
16,707,134
15,902,324
Turnover analysed by geographical market
2023
2022
£
£
United Kingdom
11,375,803
10,627,473
European Union
5,331,331
5,274,851
16,707,134
15,902,324
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(39)
Fees payable to the company's auditor for the audit of the company's financial statements
15,900
14,200
Depreciation of owned tangible fixed assets
454,695
446,907
Profit on disposal of tangible fixed assets
-
(2,500)
Operating lease charges
469,341
469,370
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Office and management
24
22
Production
154
150
Total
178
172
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
6,235,224
5,470,242
Social security costs
439,497
393,520
Pension costs
107,820
99,094
6,782,541
5,962,856
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
13,914
5,586
Other interest income
250
Total income
13,914
5,836
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on finance leases and hire purchase contracts
-
255
Other interest
15,755
16,010
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
246,871
408,738
Adjustments in respect of prior periods
(24,542)
Total current tax
246,871
384,196
Deferred tax
Origination and reversal of timing differences
181,985
76,433
Changes in tax rates
24,645
Total deferred tax
181,985
101,078
Total tax charge
428,856
485,274
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,138,299
2,571,293
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
267,728
488,546
Tax effect of expenses that are not deductible in determining taxable profit
8,179
(28,113)
Capital allowances in excess of depreciation
(29,036)
(51,695)
Under/(over) provided in prior years
(24,542)
Deferred tax movement
181,985
101,078
Taxation charge for the year
428,856
485,274
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
9
Dividends
2023
2022
£
£
Interim paid
1,000,000
1,000,000
10
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,177,045
5,482,489
1,140,608
705,528
8,505,670
Additions
1,636,544
7,629
4,198
1,648,371
At 31 December 2023
1,177,045
7,119,033
1,148,237
709,726
10,154,041
Depreciation and impairment
At 1 January 2023
1,028,627
4,580,627
931,590
338,385
6,879,229
Depreciation charged in the year
31,781
268,123
54,396
100,395
454,695
At 31 December 2023
1,060,408
4,848,750
985,986
438,780
7,333,924
Carrying amount
At 31 December 2023
116,637
2,270,283
162,251
270,946
2,820,117
At 31 December 2022
148,418
901,862
209,018
367,143
1,626,441
11
Stocks
2023
2022
£
£
Raw materials and consumables
1,027,332
1,029,626
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,216,345
1,337,662
Corporation tax recoverable
24,542
Amounts owed by group undertakings
215,604
460,323
Other debtors
250
Prepayments and accrued income
113,325
137,799
1,545,274
1,960,576
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
14
117,961
Trade creditors
1,190,230
1,019,864
Amounts owed to group undertakings
11,395
Corporation tax
86,871
243,738
Other taxation and social security
107,673
189,105
Other creditors
1,000,000
500,000
Accruals and deferred income
708,527
709,847
3,104,696
2,780,515
14
Loans and overdrafts
2023
2022
£
£
Other loans
117,961
Payable within one year
117,961
15
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Fixed asset timing differences
378,074
187,907
Short-term timing differences
(16,969)
(8,787)
361,105
179,120
2023
Movements in the year:
£
Liability at 1 January 2023
179,120
Charge to profit or loss
181,985
Liability at 31 December 2023
361,105
SWEEEP KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
107,820
99,094
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £22,744 (2022: £20,515) were payable to the fund at the balance sheet date and are included within creditors.
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
685,313
460,000
Between two and five years
2,741,252
1,840,000
In over five years
6,167,817
4,801,667
9,594,382
7,101,667
19
Related party transactions
During the year the company was charged rent of £220,000 (2022: £220,000) by the Oaktree Trust Retirement Benefit Scheme, of which two of the directors are trustees.
During the year the company paid rent of £240,000 (2022: £240,000) to two of the directors.
During the year the company was charged for electricity generated of £134,067 (2022: £53,285) by Oaktree Investment (Kent) Limited, a company in which two of the directors are also directors.
20
Ultimate controlling party
During the year the immediate parent company was Kuusakoski Oy, a company incorporated in Finland.
During the year the ultimate parent undertaking and controlling party was Kuusakoski Group Oy.
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2023.300No description of principal activityA P WattsM KuusilehtoT KuusakoskiT KuusakoskiP Wattsfalse059566802023-01-012023-12-3105956680bus:CompanySecretaryDirector12023-01-012023-12-3105956680bus:Director12023-01-012023-12-3105956680bus:Director22023-01-012023-12-3105956680bus:Director32023-01-012023-12-3105956680bus:CompanySecretary12023-01-012023-12-3105956680bus:Director42023-01-012023-12-3105956680bus:RegisteredOffice2023-01-012023-12-31059566802023-12-31059566802022-01-012022-12-3105956680core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3105956680core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31059566802022-12-3105956680core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3105956680core:PlantMachinery2023-12-3105956680core:FurnitureFittings2023-12-3105956680core:MotorVehicles2023-12-3105956680core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3105956680core:PlantMachinery2022-12-3105956680core:FurnitureFittings2022-12-3105956680core:MotorVehicles2022-12-3105956680core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3105956680core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3105956680core:CurrentFinancialInstruments2023-12-3105956680core:CurrentFinancialInstruments2022-12-3105956680core:ShareCapital2023-12-3105956680core:ShareCapital2022-12-3105956680core:SharePremium2023-12-3105956680core:SharePremium2022-12-3105956680core:RetainedEarningsAccumulatedLosses2023-12-3105956680core:RetainedEarningsAccumulatedLosses2022-12-3105956680core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3105956680core:PlantMachinery2023-01-012023-12-3105956680core:FurnitureFittings2023-01-012023-12-3105956680core:MotorVehicles2023-01-012023-12-3105956680core:OwnedAssets2023-01-012023-12-3105956680core:OwnedAssets2022-01-012022-12-310595668012023-01-012023-12-310595668012022-01-012022-12-3105956680core:UKTax2023-01-012023-12-3105956680core:UKTax2022-01-012022-12-3105956680core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3105956680core:PlantMachinery2022-12-3105956680core:FurnitureFittings2022-12-3105956680core:MotorVehicles2022-12-31059566802022-12-3105956680core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3105956680core:WithinOneYear2023-12-3105956680core:WithinOneYear2022-12-3105956680core:BetweenTwoFiveYears2023-12-3105956680core:BetweenTwoFiveYears2022-12-3105956680core:MoreThanFiveYears2023-12-3105956680core:MoreThanFiveYears2022-12-3105956680bus:PrivateLimitedCompanyLtd2023-01-012023-12-3105956680bus:FRS1022023-01-012023-12-3105956680bus:Audited2023-01-012023-12-3105956680bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP