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REGISTERED NUMBER: 07155029 (England and Wales)


















STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

1 MARCH 2023 TO 31 DECEMBER 2023

FOR

ALLWOOD RECYCLING SOLUTIONS LIMITED

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 9

Statement of Financial Position 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 14


ALLWOOD RECYCLING SOLUTIONS LIMITED

COMPANY INFORMATION
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023







DIRECTORS: M Wheeler
D Wheeler
K McNeilly
A G Milne





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





REGISTERED NUMBER: 07155029 (England and Wales)





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

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

STRATEGIC REPORT
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


The directors present their strategic report for the period 1 March 2023 to 31 December 2023.

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

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

We have changed our year end and will be reporting January to December going forward. This has resulted in a 10-month year for the period March to December 2023.

For the 10 months ended December 2023 turnover was £15.4m (full year 2022/23 : £16.2m) increased activity and new clients has contributed to a higher turnover with gross margins remaining largely consistent previous years.

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

PRINCIPAL RISKS AND UNCERTAINTIES
Credit Risk

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

Economic Risk

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

Regulatory Risk

Regulation constantly changes that affects the waste and recycling sectors. The Company mitigates the risk by maintaining the highest standards with our certifications to IS9001 Quality Management Systems, ISO14001 Environmental Management Systems, ISO45001 Occupational Health and Safety Systems, ISO27001 Information Security Systems and Safe Contractor status. We are also a CIWM Affiliated member.

Reputational Risk

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


ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

STRATEGIC REPORT
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023

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

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

ON BEHALF OF THE BOARD:





D Wheeler - Director


25 March 2024

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the period 1 March 2023 to 31 December 2023.

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

DIVIDENDS
No dividends will be distributed for the period ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report.

M Wheeler
D Wheeler
K McNeilly

Other changes in directors holding office are as follows:

N R Scott - resigned 22 August 2023
A G Milne - appointed 22 August 2023

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

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

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

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

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

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

ON BEHALF OF THE BOARD:





D Wheeler - Director


25 March 2024

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


Opinion
We have audited the financial statements of Allwood Recycling Solutions Limited (the 'company') for the period ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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


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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have considered how irregularities, including fraud, can be detected in this business and how they may occur. We are aware there are always opportunities to manipulate the accounts, in particular by increasing or decreasing profits and window dressing by making the balance sheet look stronger than it may in reality be.

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




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

27 March 2024

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023

Period
1.3.23
to Year Ended
31.12.23 28.2.23
Notes £    £   

TURNOVER 15,376,323 16,237,300

Cost of sales 12,077,895 13,203,852
GROSS PROFIT 3,298,428 3,033,448

Administrative expenses 1,161,970 995,582
OPERATING PROFIT 4 2,136,458 2,037,866

Interest receivable and similar income 2,239 4,585
2,138,697 2,042,451

Interest payable and similar expenses 5 2,052 2,462
PROFIT BEFORE TAXATION 2,136,645 2,039,989

Tax on profit 6 542,818 400,271
PROFIT FOR THE FINANCIAL PERIOD 1,593,827 1,639,718

Retained earnings at beginning of period 1,639,716 499,998

Dividends 7 - (500,000 )

RETAINED EARNINGS AT END OF
PERIOD

3,233,543

1,639,716

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 1,066,328 548,522

CURRENT ASSETS
Debtors 9 3,235,362 2,189,039
Cash at bank and in hand 1,254,019 1,401,596
4,489,381 3,590,635
CREDITORS
Amounts falling due within one year 10 2,142,625 2,456,329
NET CURRENT ASSETS 2,346,756 1,134,306
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,413,084

1,682,828

CREDITORS
Amounts falling due after more than one
year

11

(31,721

)

(43,110

)

PROVISIONS FOR LIABILITIES 15 (147,818 ) -
NET ASSETS 3,233,545 1,639,718

CAPITAL AND RESERVES
Called up and paid share capital 16 2 2
Retained earnings 3,233,543 1,639,716
SHAREHOLDERS' FUNDS 3,233,545 1,639,718

The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2024 and were signed on its behalf by:





D Wheeler - Director


ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

STATEMENT OF CASH FLOWS
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023

Period
1.3.23
to Year Ended
31.12.23 28.2.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,435,710 2,123,405
Interest element of hire purchase
payments paid

(2,052

)

(2,462

)
Tax paid (429,966 ) (377,226 )
Net cash from operating activities 1,003,692 1,743,717

Cash flows from investing activities
Purchase of tangible fixed assets (637,616 ) (4,336 )
Interest received 2,239 4,585
Net cash from investing activities (635,377 ) 249

Cash flows from financing activities
Capital repayments in year (14,348 ) (20,769 )
Amount reimbursed to directors (1,544 ) (1,547,881 )
Equity dividends paid (500,000 ) -
Net cash from financing activities (515,892 ) (1,568,650 )

(Decrease)/increase in cash and cash equivalents (147,577 ) 175,316
Cash and cash equivalents at
beginning of period

2

1,401,596

1,226,280

Cash and cash equivalents at end of
period

2

1,254,019

1,401,596

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
Period
1.3.23
to Year Ended
31.12.23 28.2.23
£    £   
Profit before taxation 2,136,645 2,039,989
Depreciation charges 119,783 74,932
Loss on disposal of fixed assets 27 -
Finance costs 2,052 2,462
Finance income (2,239 ) (4,585 )
2,256,268 2,112,798
Increase in trade and other debtors (1,046,323 ) (301,699 )
Increase in trade and other creditors 225,765 312,306
Cash generated from operations 1,435,710 2,123,405

2. CASH AND CASH EQUIVALENTS

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

Period ended 31 December 2023
31.12.23 1.3.23
£    £   
Cash and cash equivalents 1,254,019 1,401,596
Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 1,401,596 1,226,280


ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 1,401,596 (147,577 ) 1,254,019
1,401,596 (147,577 ) 1,254,019
Debt
Finance leases (59,735 ) 14,348 (45,387 )
(59,735 ) 14,348 (45,387 )
Total 1,341,861 (133,229 ) 1,208,632

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

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

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

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

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


ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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

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

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

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

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

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

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

3. EMPLOYEES AND DIRECTORS
Period
1.3.23
to Year Ended
31.12.23 28.2.23
£    £   
Wages and salaries 3,005,267 3,186,834
Social security costs 19,812 19,331
Other pension costs 90,000 8,000
3,115,079 3,214,165

The average number of employees during the period was as follows:
Period
1.3.23
to Year Ended
31.12.23 28.2.23

Directors 2 2
Clerical and managerial 12 11
Site managers and supervisors 16 20
Operatives 88 81
118 114

Period
1.3.23
to Year Ended
31.12.23 28.2.23
£    £   
Directors' remuneration 125,000 153,060
Directors' pension contributions to money purchase schemes 90,000 8,000

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

Money purchase schemes 1 1

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


4. OPERATING PROFIT

The operating profit is stated after charging:

Period
1.3.23
to Year Ended
31.12.23 28.2.23
£    £   
Hire of plant and machinery 35,188 51,368
Depreciation - owned assets 119,783 74,932
Loss on disposal of fixed assets 27 -
Auditors' remuneration 6,500 6,600

5. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.3.23
to Year Ended
31.12.23 28.2.23
£    £   
Hire purchase 2,052 2,462

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the period was as follows:
Period
1.3.23
to Year Ended
31.12.23 28.2.23
£    £   
Current tax:
UK corporation tax 395,000 400,271

Deferred tax 147,818 -
Tax on profit 542,818 400,271

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


6. TAXATION - continued

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

Period
1.3.23
to Year Ended
31.12.23 28.2.23
£    £   
Profit before tax 2,136,645 2,039,989
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

534,161

387,598

Effects of:
Expenses not deductible for tax purposes 1,826 419
Capital allowances in excess of depreciation (131,143 ) -
Depreciation in excess of capital allowances - 11,734
HMRC CT interest - 520
Part of the profits are charged at 19 percent (9,844 ) -
Deferred tax 147,818 -
Total tax charge 542,818 400,271

7. DIVIDENDS
Period
1.3.23
to Year Ended
31.12.23 28.2.23
£    £   
A Ordinary shares of £0.50 each
Final - 250,000
B Ordinary shares of £0.50 each
Final - 250,000
- 500,000

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


8. TANGIBLE FIXED ASSETS
Fixtures
Long Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1 March 2023 373,469 84,092 112,549
Additions - 583,290 8,047
Disposals - - (443 )
At 31 December 2023 373,469 667,382 120,153
DEPRECIATION
At 1 March 2023 18,673 34,011 45,734
Charge for period 7,781 66,455 23,961
Eliminated on disposal - - (416 )
At 31 December 2023 26,454 100,466 69,279
NET BOOK VALUE
At 31 December 2023 347,015 566,916 50,874
At 28 February 2023 354,796 50,081 66,815

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 March 2023 128,781 19,979 718,870
Additions 43,940 2,339 637,616
Disposals - (985 ) (1,428 )
At 31 December 2023 172,721 21,333 1,355,058
DEPRECIATION
At 1 March 2023 63,090 8,840 170,348
Charge for period 17,235 4,351 119,783
Eliminated on disposal - (985 ) (1,401 )
At 31 December 2023 80,325 12,206 288,730
NET BOOK VALUE
At 31 December 2023 92,396 9,127 1,066,328
At 28 February 2023 65,691 11,139 548,522

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2023
£    £   
Trade debtors 2,281,476 1,778,328
Other debtors 808,208 347,595
Prepayments and accrued income 145,678 63,116
3,235,362 2,189,039

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2023
£    £   
Hire purchase contracts (see note 12) 13,666 16,625
Trade creditors 1,562,508 1,359,154
Tax 177,150 212,116
Social security and other taxes 87,455 -
VAT 111,461 280,230
Other creditors 34,278 264,220
Directors' current accounts 111 251,655
Accruals and deferred income 155,996 72,329
2,142,625 2,456,329

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2023
£    £   
Hire purchase contracts (see note 12) 31,721 43,110

12. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2023
£    £   
Net obligations repayable:
Within one year 13,666 16,625
Between one and five years 31,721 43,110
45,387 59,735

13. SECURED DEBTS

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

The above charge is still outstanding.

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


14. FINANCIAL INSTRUMENTS

Categorisation of financial instruments:

Financial assets that are debt instruments measured at amortised cost £4,343,703 (February 2023 - £3,527,519)
Financial instruments measured at amortised cost £2,298,281 (February 2023 - £2,004,557)

15. PROVISIONS FOR LIABILITIES
2023 2023
£    £   
Deferred tax 147,818 -

Deferred
tax
£   
Provided during period 147,818
Balance at 31 December 2023 147,818

16. CALLED UP AND PAID SHARE CAPITAL

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

17. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £126,295 (February 2023 - £145,809).
Contributions totalling £28,907 (February 2023 - £12,250) were payable to the scheme at the end of the period and are included in creditors.

18. RELATED PARTY DISCLOSURES

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

During the period, the company made sales of £5,832,943 and purchases of £11,872 respectively to and from companies in the group (February 2023: £6,109,635 and £16,981). The related balances receivable and payable at the period end were £71,358 and £nil (February 2023: £343,821 and £528).

ALLWOOD RECYCLING SOLUTIONS LIMITED (REGISTERED NUMBER: 07155029)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 MARCH 2023 TO 31 DECEMBER 2023


19. ULTIMATE CONTROLLING PARTY

The company is under the control of the directors.