IRIS Accounts Production v23.3.0.418 12258436 Board of Directors 1.4.22 31.3.23 31.3.23 Cheshire West Recycling Limited is a council owned company operating in accordance with cooperative principles with a social and environmental purpose. ++ The company was established in October 2019 and became operationally active on 30th March 2020 providing refuse, recycling, and garden waste collection activities on behalf of Cheshire West and Chester council. ++ We employ over 270 local people, operate over 90 frontline commercial vehicles, and provide a service to every resident across the borough at least once per week. true false true true false false true true true true false iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure122584362022-03-31122584362023-03-31122584362022-04-012023-03-31122584362021-03-31122584362021-04-012022-03-31122584362022-03-3112258436ns16:EnglandWales2022-04-012023-03-3112258436ns15:PoundSterling2022-04-012023-03-3112258436ns11:Director12022-04-012023-03-3112258436ns11:PrivateLimitedCompanyLtd2022-04-012023-03-3112258436ns11:FRS1022022-04-012023-03-3112258436ns11:Audited2022-04-012023-03-3112258436ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-04-012023-03-3112258436ns11:LargeMedium-sizedCompaniesRegimeForAccounts2022-04-012023-03-3112258436ns11:FullAccounts2022-04-012023-03-3112258436ns11:Director32022-04-012023-03-3112258436ns11:Director72022-04-012023-03-3112258436ns11:Director82022-04-012023-03-3112258436ns11:Director92022-04-012023-03-3112258436ns11:RegisteredOffice2022-04-012023-03-3112258436ns11:Director42022-04-012023-03-3112258436ns11:Director52022-04-012023-03-3112258436ns11:Director62022-04-012023-03-3112258436ns11:Director22022-04-012023-03-311225843612022-04-012023-03-311225843612021-04-012022-03-311225843622022-04-012023-03-311225843622021-04-012022-03-311225843632022-04-012023-03-311225843632021-04-012022-03-3112258436ns6:CurrentFinancialInstruments2023-03-3112258436ns6:CurrentFinancialInstruments2022-03-3112258436ns6:Non-currentFinancialInstruments2023-03-3112258436ns6:Non-currentFinancialInstruments2022-03-3112258436ns6:RevaluationReserve2023-03-3112258436ns6:RevaluationReserve2022-03-3112258436ns6:RetainedEarningsAccumulatedLosses2023-03-3112258436ns6:RetainedEarningsAccumulatedLosses2022-03-3112258436ns6:RetainedEarningsAccumulatedLosses2021-03-3112258436ns6:RevaluationReserve2021-03-3112258436ns6:RetainedEarningsAccumulatedLosses2021-04-012022-03-3112258436ns6:RevaluationReserve2021-04-012022-03-3112258436ns6:RetainedEarningsAccumulatedLosses2022-04-012023-03-3112258436ns6:RevaluationReserve2022-04-012023-03-311225843612022-04-012023-03-3112258436ns6:ReportableOperatingSegment12022-04-012023-03-3112258436ns6:ReportableOperatingSegment12021-04-012022-03-3112258436ns6:ReportableOperatingSegment22022-04-012023-03-3112258436ns6:ReportableOperatingSegment22021-04-012022-03-3112258436ns6:ReportableOperatingSegment32022-04-012023-03-3112258436ns6:ReportableOperatingSegment32021-04-012022-03-3112258436ns6:ReportableOperatingSegment42022-04-012023-03-3112258436ns6:ReportableOperatingSegment42021-04-012022-03-3112258436ns6:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2022-04-012023-03-3112258436ns6:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2021-04-012022-03-3112258436ns11:HighestPaidDirector2022-04-012023-03-3112258436ns11:HighestPaidDirector2021-04-012022-03-3112258436ns6:OwnedAssets2022-04-012023-03-3112258436ns6:OwnedAssets2021-04-012022-03-3112258436ns6:LeaseholdImprovements2022-03-3112258436ns6:PlantMachinery2022-03-3112258436ns6:FurnitureFittings2022-03-3112258436ns6:MotorVehicles2022-03-3112258436ns6:LeaseholdImprovements2022-04-012023-03-3112258436ns6:PlantMachinery2022-04-012023-03-3112258436ns6:FurnitureFittings2022-04-012023-03-3112258436ns6:MotorVehicles2022-04-012023-03-3112258436ns6:LeaseholdImprovements2023-03-3112258436ns6:PlantMachinery2023-03-3112258436ns6:FurnitureFittings2023-03-3112258436ns6:MotorVehicles2023-03-3112258436ns6:LeaseholdImprovements2022-03-3112258436ns6:PlantMachinery2022-03-3112258436ns6:FurnitureFittings2022-03-3112258436ns6:MotorVehicles2022-03-3112258436ns6:WithinOneYearns6:CurrentFinancialInstruments2023-03-3112258436ns6:WithinOneYearns6:CurrentFinancialInstruments2022-03-3112258436ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2023-03-3112258436ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2022-03-3112258436ns6:WithinOneYear2023-03-3112258436ns6:WithinOneYear2022-03-3112258436ns6:BetweenOneFiveYears2023-03-3112258436ns6:BetweenOneFiveYears2022-03-3112258436ns6:AllPeriods2023-03-3112258436ns6:AllPeriods2022-03-3112258436ns6:DeferredTaxation2022-03-3112258436ns6:DeferredTaxation2022-04-012023-03-3112258436ns6:DeferredTaxation2023-03-3112258436ns6:RetainedEarningsAccumulatedLosses2022-03-3112258436ns6:RevaluationReserve2022-03-31
REGISTERED NUMBER: 12258436 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

CHESHIRE WEST RECYCLING LIMITED

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023










Page


Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


CHESHIRE WEST RECYCLING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: Mr J Cowell
Ms C M Skeldon
Mr F Rogers
Mr J Sherratt
Mr A Edwards





REGISTERED OFFICE: Road Three Operations Hub
Road Three
Winsford
CW7 3PD





REGISTERED NUMBER: 12258436 (England and Wales)





AUDITORS: Sedulo Audit Limited
Statutory Auditors
5th Floor, Walker House
Exchange Flags
Liverpool
L2 3YL

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023


The directors present their strategic report for the year ended 31 March 2023.

Principal Business Activities
Cheshire West Recycling Limited is a council owned company operating in accordance with cooperative principles with a social and environmental purpose.

The company was established in October 2019 and became operationally active on 30th March 2020 providing refuse, recycling, and garden waste collection activities on behalf of Cheshire West and Chester council.

In October 2022 CWR established a Fleet Services division, this new division provides vehicle maintenance service for both internal and external vehicles.

We employ over 270 local people, operate over 80 frontline commercial vehicles, and provide a service to every resident across the borough at least once per week.

Review of Business Activity

Impact of Covid-19

Whilst the direct impact of the pandemic upon frontline operations has now begun to recede,
wider global factors continue to impact both our cost base and delivery of wider strategic
activity. Internationally, the supply of silicone chips continues to be suppressed; at a local level
this has continued to impact the rollout of the Council's new frontline operational fleet delaying
full completion of the new service implementation until bespoke narrow vehicles arrive.

Russia's invasion of Ukraine is a humanitarian tragedy, one which is impacting economies
across the globe. Fluctuations in global commodities such as fuel, steel and raw materials have
impacted Cheshire West Recycling at an operational level.

We continue to seek ways to mitigate these strategic impacts and ensure the organisation
continues to operate within budget.

Base Operational Statistics

The overall volume of domestic waste collected in 2022/23 decreased by 10% in comparison to the previous year. Recycling volumes have increased following the introduction of Cheshire West and Chester Council's new waste collection service methodology. Garden waste volumes collected have fallen significantly following the Council's decision to introduce a subscription-based garden waste service.

Other significant achievements

Our 2022/23 objectives, linked to our established 'Pillars of Performance', focused on delivering the Council's Waste Strategy whilst also continuing to maintain top quartile operational and HSEQ performance.

Over the last year, we have continued to optimise the business working closely with our
shareholder to implement major operational change, facilitating delivery of the Council's new Waste Strategy, whilst also seeking to grow the organisation.

Building upon the foundations established in 2021/22 through the successful delivery of Project Via, Cheshire West Recycling has successfully implemented the Council's new twin bin recycling
service. A change impacting every household and offering significant financial and environmental benefits.


CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Through the establishment of a new internal Fleet Services division, Cheshire West Recycling has implemented a platform to internalise its own maintenance provision. This approach provides a long-term cost-effective solution not only for Cheshire West Recycling's fleet but importantly also providing maintenance facilities for the shareholder and its wider commercial partners.

Building upon the achievements of our 'One of Our Own' frontline development initiative, this year has seen the introduction of the 'Growing Our Own' Staff Development Programme. Focusing upon employees, from supervisor level through to management, this competency-based training programme ensures that all employees understand what is required of them and possess the skills required to meet that standard.

Social Value
Aligning with our cooperative principles CWR have continued to positively impact upon the local community, including the donation of almost 14,000 food items to local food banks. We have continued to show our support for the Armed services, signing the Armed Forces Covenant and continuing to provide employment opportunities alongside those recruited through both care leavers and kickstart programmes.

Our shift from the use of pure diesel to blended HVO fuel for our front-line fleet, combined with the introduction of our 'Plan, Deliver Review' approach to service optimisation has significantly reduced our CO2 emissions.

Through our continued third sector partnership with Changing Lives Together, we deliver a bulky waste service which delivers user satisfaction whilst also maximising both recycling and social value.

Financial Review

The Profit Before Taxation of £207k is broadly explained as follows.

The high prices for the sale of recovered materials from 2021/22 continued into the first half of 2022/23, however they dropped off significantly in the second half of 2022/23. This gave an upside of £180k.

The company have continued to use an experienced material trader to ensure this revenue stream is maximised fully, the actual levels of revenue achieved are higher than published indices.

A significant increase in Diesel price led to an additional cost of £190k, however profit on disposal of fixed assets of £213k mitigated this.

Having repaid a £1M loan from the shareholder in full in the year, the company was able to benefit from unbudgeted bank interest of £56k.

Controls around operational delivery remain effective, ensuring that no material variances regarding headcount, overtime or absence have been seen in the year.


CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

PRINCIPAL RISKS AND UNCERTAINTIES
Since 2019, we have maintained a robust approach to risk management. Operational business continuity planning sits at the heart of everything we do and, as a minimum, is reviewed quarterly. Our continuity planning has been vital in maintaining service provision throughout a range of events from extreme weather to a global pandemic.

At a strategic level our organisational risk registers are maintained and reported to our Board on a six-monthly basis.

The shareholder has written to the board of directors to confirm its ongoing support of the business.

ON BEHALF OF THE BOARD:





Mr A Edwards - Director


13 December 2023

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


The directors present their report with the financial statements of the company for the year ended 31 March 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2023.

DIRECTORS
Mr J Cowell has held office during the whole of the period from 1 April 2022 to the date of this report.

Other changes in directors holding office are as follows:

Mr R Edmondson - resigned 31 March 2023
Mr S N Jennings - resigned 18 October 2022
Mr R P Spencer - resigned 9 May 2022
Ms C M Skeldon - appointed 8 September 2022
Mr F Rogers - appointed 23 January 2023
Mr J Sherratt - appointed 31 March 2023

Mr A Edwards was appointed as a director after 31 March 2023 but prior to the date of this report.

Mrs J M Bannister ceased to be a director after 31 March 2023 but prior to the date of this report.

ENGAGEMENT WITH EMPLOYEES
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the
applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their
employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff engagement and at meetings, matters likely to affect employees' interests. The company has also appointed two employee directors.
Information about matters of concern to employees is given through communication channels which include monthly
newsletters, video boards, Vlogs, text media and ongoing PDR reviews which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

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), 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 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.


CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 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, Sedulo Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr A Edwards - Director


13 December 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHESHIRE WEST RECYCLING LIMITED


Opinion
We have audited the financial statements of Cheshire West Recycling Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 March 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

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

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

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

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHESHIRE WEST RECYCLING LIMITED


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 five and six, 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.

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.

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:

Extent to which the audit was capable of detecting irregularities, including fraud
The primary responsibility for the prevention and detection of fraud rests with directors and management, and we cannot be expected to detect non-compliance with all laws and regulations.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.

We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiry of management and examination of relevant documentation, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHESHIRE WEST RECYCLING LIMITED


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.




Peter Alcock (Senior Statutory Auditor)
for and on behalf of Sedulo Audit Limited
Statutory Auditors
5th Floor, Walker House
Exchange Flags
Liverpool
L2 3YL

13 December 2023

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
Notes £    £   

TURNOVER 3 18,686,801 19,488,499

Cost of sales 16,507,462 16,519,233
GROSS PROFIT 2,179,339 2,969,266

Administrative expenses 2,000,573 2,351,463
178,766 617,803

Other operating income - 7,859
OPERATING PROFIT 5 178,766 625,662

Interest receivable and similar income 55,664 -
234,430 625,662

Interest payable and similar expenses 6 27,878 41,804
PROFIT BEFORE TAXATION 206,552 583,858

Tax on profit 7 (76,131 ) 57,599
PROFIT FOR THE FINANCIAL YEAR 282,683 526,259

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
Notes £    £   

PROFIT FOR THE YEAR 282,683 526,259


OTHER COMPREHENSIVE INCOME
Revaluation of tangible fixed assets (134,000 ) (121,000 )
Tax on other comprehensive income 82,365 -
Disposal of acq'd tangible fixed assets (199,000 ) (113,500 )
Income tax relating to components of other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME FOR THE
YEAR, NET OF INCOME TAX

(250,635

)

(234,500

)
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

32,048

291,759

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

BALANCE SHEET
31 MARCH 2023

31.3.23 31.3.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 549,014 760,711

CURRENT ASSETS
Stocks 9 73,001 369,666
Debtors 10 779,694 1,729,161
Cash at bank 2,070,637 1,430,234
2,923,332 3,529,061
CREDITORS
Amounts falling due within one year 11 3,185,663 2,876,641
NET CURRENT (LIABILITIES)/ASSETS (262,331 ) 652,420
TOTAL ASSETS LESS CURRENT LIABILITIES 286,683 1,413,131

CREDITORS
Amounts falling due after more than one
year

12

-

(1,000,000

)

PROVISIONS FOR LIABILITIES 15 (37,063 ) (195,559 )
NET ASSETS 249,620 217,572

RESERVES
Revaluation reserve 16 53,920 304,555
Retained earnings 16 195,700 (86,983 )
249,620 217,572

The financial statements were approved by the Board of Directors and authorised for issue on 13 December 2023 and were signed on its behalf by:





Mr A Edwards - Director


CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Retained Revaluation Total
earnings reserve equity
£    £    £   

Balance at 1 April 2021 (613,242 ) 539,055 (74,187 )

Changes in equity
Total comprehensive income 526,259 (234,500 ) 291,759
Balance at 31 March 2022 (86,983 ) 304,555 217,572

Changes in equity
Total comprehensive income 282,683 (250,635 ) 32,048
Balance at 31 March 2023 195,700 53,920 249,620

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023


1. STATUTORY INFORMATION

Cheshire West Recycling 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.

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 as modified by the revaluation of certain assets.

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 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 paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7.

The financial statements of the company are consolidated in the financial statements of Cheshire West and Chester Council.These consolidated financial statements are available from its registered office, 4 Civic Way, Ellesmere Port, CH65 OBE.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying 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.

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 . The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financial arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and 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:

Plant and equipment1.5 - 10 years straight line
Fixtures and fittings3 years straight line
Motor vehicles1 - 10 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 changed to surplus or deficit.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to to the extent that a revaluation gain reserves a revaluation loss previously recognised in surplus or deficit or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in surplus or deficit.

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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred 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 balance sheet date.

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

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

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

Foreign exchange
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Employee 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.

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


2. ACCOUNTING POLICIES - continued

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are
received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Retirement benefits

Retirement benefits to employees are provided by the Local Government Pension Scheme (‘LGPS’). This is a defined benefit pension scheme and the assets are held separately from those of the company.

The LGPS is a funded multi-employer scheme. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected method and discounted at a rate equivalent to the current rate of return on high quality corporate bonds of equivalent term to the liabilities.

On 26 March 2020, the company, the scheme employer and the administering authority (Cheshire West and Chester Borough Council) entered into a ‘pass-through’ agreement. The effect of this agreement is to make the company responsible only for the primary contributions. Any surplus or deficit relating to the company’s share of the fund stays with the scheme employer.

Consequently, the LGPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the profit and loss account in the period to which they relate.

Going concern
At the time of signing these accounts, having considered the economic climate, the Directors expectations and intentions for the next twelve months, and the availability of working capital, the Directors are of the opinion that the Company will remain viable for the foreseeable future and therefore these Financial Statements have been prepared on the Going Concern basis.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.3.23 31.3.22
£    £   
Contract Income 15,572,916 15,397,584
Other Service Income 50,000 50,000
Sale of Materials 2,696,379 4,040,915
Workshops income 367,506 -
18,686,801 19,488,499

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


4. EMPLOYEES AND DIRECTORS
31.3.23 31.3.22
£    £   
Wages and salaries 7,858,519 8,039,859
Social security costs 791,275 666,665
Other pension costs 297,983 283,214
8,947,777 8,989,738

The average number of employees during the year was as follows:
31.3.23 31.3.22

Administration 15 14
Operational 257 263
272 277

31.3.23 31.3.22
£    £   
Directors' remuneration 217,871 209,101

Information regarding the highest paid director is as follows:
31.3.23 31.3.22
£    £   
Emoluments etc 194,506 182,218

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.3.23 31.3.22
£    £   
Depreciation - owned assets 128,394 124,530
Profit on disposal of fixed assets (213,446 ) (112,100 )
Auditors' remuneration 14,000 12,000
Foreign exchange differences 41 148

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.3.23 31.3.22
£    £   
Bank interest received - (1,029 )
Bank loan interest 27,878 42,833
27,878 41,804

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
31.3.23 31.3.22
£    £   
Deferred tax:
Deferred tax (158,496 ) 57,599
Deferred tax on revalued asset 82,365 -
Total deferred tax (76,131 ) 57,599
Tax on profit (76,131 ) 57,599

Tax effects relating to effects of other comprehensive income

31.3.23
Gross Tax Net
£    £    £   
Revaluation of tangible fixed assets (134,000 ) - (134,000 )
Tax on other comprehensive income 82,365 - 82,365
Disposal of acq'd tangible fixed assets (199,000 ) - (199,000 )
(250,635 ) - (250,635 )

31.3.22
Gross Tax Net
£    £    £   
Revaluation of tangible fixed assets (121,000 ) - (121,000 )
Tax on other comprehensive income
Disposal of acq'd tangible fixed assets (113,500 ) - (113,500 )
(234,500 ) - (234,500 )

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


8. TANGIBLE FIXED ASSETS
Assets
acquired
through Fixtures
business Plant and and Motor
combinations equipment fittings vehicles Totals
£    £    £    £    £   
COST OR VALUATION
At 1 April 2022 431,000 130,798 2,313 334,300 898,411
Additions - 170,551 - 83,000 253,551
Disposals (199,000 ) - - (12,000 ) (211,000 )
Revaluations (134,000 ) - - - (134,000 )
At 31 March 2023 98,000 301,349 2,313 405,300 806,962
DEPRECIATION
At 1 April 2022 - 67,295 835 69,570 137,700
Charge for year - 31,377 771 96,246 128,394
Eliminated on disposal - - - (8,146 ) (8,146 )
At 31 March 2023 - 98,672 1,606 157,670 257,948
NET BOOK VALUE
At 31 March 2023 98,000 202,677 707 247,630 549,014
At 31 March 2022 431,000 63,503 1,478 264,730 760,711

Assets acquired through business combinations with a carrying value after disposals during the year, were revalued to £98,000 by Dennis Eagle and Whitham Mills, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar assets. If the assets were measured using the cost model, the cost and carrying amount would be £nil.

The revaluation deficit of £134,000 was taken to the revaluation reserve together with proceeds on disposals of assets at valuation.

Cost or valuation at 31 March 2023 is represented by:

Assets
acquired
through Fixtures
business Plant and and Motor
combinations equipment fittings vehicles Totals
£    £    £    £    £   
Valuation in 2022 431,000 - - - 431,000
Valuation in 2023 (134,000 ) - - - (134,000 )
Cost (199,000 ) 301,349 2,313 405,300 509,962
98,000 301,349 2,313 405,300 806,962

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


9. STOCKS
31.3.23 31.3.22
£    £   
Consumable stock 73,001 369,666

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
£    £   
Trade debtors 45,092 3,978
Amounts owed by group undertakings 186,219 286,584
Other debtors 4,055 8,297
Prepayments and accrued income 544,328 1,430,302
779,694 1,729,161

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
£    £   
Trade creditors 582,267 406,495
VAT 438,948 600,403
Accruals and deferred income 2,164,448 1,869,743
3,185,663 2,876,641

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.3.23 31.3.22
£    £   
Other loans (see note 13) - 1,000,000

13. LOANS

An analysis of the maturity of loans is given below:

31.3.23 31.3.22
£    £   
Amounts falling due between two and five years:
Other loans - 2-5 years - 1,000,000

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.3.23 31.3.22
£    £   
Within one year 120,646 698,387
Between one and five years - 279,406
120,646 977,793

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


15. PROVISIONS FOR LIABILITIES
31.3.23 31.3.22
£    £   
Deferred tax 37,063 195,559

Deferred
tax
£   
Balance at 1 April 2022 195,559
Credit to Income Statement during year (76,131 )
Deferred tax on revalued asset (82,365 )
Balance at 31 March 2023 37,063

16. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 April 2022 (86,983 ) 304,555 217,572
Profit for the year 282,683 282,683
Disposal of tangible fixed assets
acquired through business
combinations


-


(199,000


)


(199,000


)


PPE - (134,000 ) (134,000 )
Deferred tax - 82,365 82,365
At 31 March 2023 195,700 53,920 249,620

17. PENSION COMMITMENTS

20232022
£   £   
Charge to profit or loss in respect of defined contribution schemes297,983283,214

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.

The LGPS is a funded defined benefit pension scheme with the assets held in separate trustee-administered funds. The employer contribution rate was 20.4% (2022: 20.4%).

As referred to in the accounting policies notes, the company entered into a ‘pass-through’ agreement with the scheme employer and the administering authority and as a result the LGPS is treated a defined contribution scheme for accounting purposes.

Total contributions payable to the scheme was £297,983 (2022: £283,214) and the amount outstanding and included in creditors was £25,000 (2022: £21,618).

CHESHIRE WEST RECYCLING LIMITED (REGISTERED NUMBER: 12258436)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


18. MEMBERS' LIABILITY

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

19. RELATED PARTY DISCLOSURES

S Jennings is paid for his directors' services through Blue Banyan Consulting Limited, a company in which he is a director and shareholder. A total of £6,000 (2022: £12,633) was paid to the company during the period. As at the year end there was £nil (2022: £3,747) due to the company from Cheshire West Recycling Limited.