Company registration number 08466840 (England and Wales)
FLETCHER PLANT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FLETCHER PLANT LIMITED
COMPANY INFORMATION
Directors
B McCabe
(Appointed 11 March 2024)
M C Mountain
(Appointed 11 March 2024)
W Fisher
(Appointed 11 March 2024)
Company number
08466840
Registered office
Clement Works
Clement Street
Sheffield
S9 5EA
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
FLETCHER PLANT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 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 - 22
FLETCHER PLANT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -
The directors present the strategic report for the year ended 30 June 2023.
Fair Review of the Business
Business Activities
FPL’s principal business activity is the provision of waste management services across the UK, to both commercial and domestic customers.
Performance Review
Turnover for the year grew by approximately 28% on the previous year from £17.3m in 2022 to £22.1m in 2023, which is a very positive outcome and undoubtably benefits from an element of post-Covid rebound in activity levels.
Gross profits increased by £2.7m, from £5.2m in 2022 to £7.8m in 2023 and as a percentage of sales the 2023 numbers were 5% higher than 2022 as a result of a combination of factors including sales mix and the inclusion of semi-fixed costs in cost of sales.
Distribution costs rose by £0.9m from £1.7m in 2022 to £2.7m in 2023, which is a 2% increase as a percentage of sales year on year and reflects the continued high cost of diesel and the full year impact of the removal of red diesel in April 2022. In real terms distribution costs should be taken into account when considering gross profits and as such would better reflect the underlying change in the business.
Administration costs rose by £0.8m, with 50% of this increase being related to salary costs, both from additional people and the much publicised levels of inflationary pressure on labour costs. In addition, the company was impacted by a small number of bad debts in the year which together amounted to £0.1m; whilst disappointing, this cost remains a small percentage of turnover compared to industry norms.
The net result from all of the aforementioned changes was an operating profit of £1.7m, which compares favourably to £0.8m in 2022, particularly given the fuel costs increases and ongoing investment in the future of the group.
Future Prospects, Development and Performance
Trading since the year end has been positive, with all areas of the business performing in line with expectations. Sales to December 2023, the Company’s half-year, are in excess of £12m and as such are tracking at levels consistent with the numbers achieved in these financial statements.
The remaining 6 months of the 2024 financial year are expected to be consistent with the first 6 months and whilst the construction sector (the Group’s main market segment), is being talked about cautiously from a broad economic perspective, locally it appears to be resilient.
Principal Risks and Uncertainties
The main risk to the business is slow economic growth and the resulting impact on the company’s main customer segments, however as waste generally is a growing challenge for all elements of the economy, it is hoped that the growing demand for better waste recovery will out-strip downturns in any one customer segment.
FLETCHER PLANT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Key Performance Indicators
The following are the main key performance indicators of the Company:
Post Balance Sheet Events
On 11 March 2024, the Company’s parent undertaking, Fletchers Waste Management Limited, was sold to DM TopCo Limited, a member of the Beauparc Utilities Group. This sale is an exciting next step in the Company’s future and will enable it to unlock further opportunities that exist within both the Sheffield City Region and nationally.
W Fisher
Director
22 March 2024
FLETCHER PLANT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2023.
Principal activities
The principal activity of the company continued to be that of the recycling of metals and waste commodities.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. 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:
R P Fletcher
(Resigned 11 March 2024)
G L Leverett
(Resigned 11 March 2024)
F Lythgoe
(Resigned 11 March 2024)
F Ward
(Resigned 11 March 2024)
M L Loy
(Resigned 11 March 2024)
L Jarman
(Resigned 11 March 2024)
B McCabe
(Appointed 11 March 2024)
M C Mountain
(Appointed 11 March 2024)
W Fisher
(Appointed 11 March 2024)
Auditor
The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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.
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 (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and important events occurring since the year end.
FLETCHER PLANT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
W Fisher
Director
22 March 2024
FLETCHER PLANT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLETCHER PLANT LIMITED
- 5 -
Opinion
We have audited the financial statements of Fletcher Plant Limited (the 'company') for the year ended 30 June 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 30 June 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.
FLETCHER PLANT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLETCHER PLANT 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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations
we identified the laws and regulations applicable to the company through discussions with the directors and other management, and from our commercial knowledge and experience of the sector
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, employment, environmental and health and safety legislation
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
FLETCHER PLANT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLETCHER PLANT LIMITED
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships
tested journal entries to identify unusual transactions
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation
enquiring of management as to actual and potential litigation and claims
discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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.
Lisa Leighton
Senior Statutory Auditor
For and on behalf of BHP LLP
3 April 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
FLETCHER PLANT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
22,096,007
17,278,751
Cost of sales
(14,260,863)
(12,094,405)
Gross profit
7,835,144
5,184,346
Distribution costs
(2,682,266)
(1,733,990)
Administrative expenses
(3,533,287)
(2,755,452)
Other operating income
60,000
60,000
Operating profit
4
1,679,591
754,904
Interest payable and similar expenses
7
(109,193)
(101,860)
Profit before taxation
1,570,398
653,044
Tax on profit
8
(348,953)
(1,397)
Profit for the financial year
1,221,445
651,647
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FLETCHER PLANT LIMITED
BALANCE SHEET
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
9
6,804,346
6,244,889
Investments
10
100
100
6,804,446
6,244,989
Current assets
Debtors
12
8,953,115
7,324,963
Cash at bank and in hand
93,433
77,732
9,046,548
7,402,695
Creditors: amounts falling due within one year
13
(6,967,097)
(5,940,895)
Net current assets
2,079,451
1,461,800
Total assets less current liabilities
8,883,897
7,706,789
Creditors: amounts falling due after more than one year
14
(1,954,069)
(2,424,406)
Provisions for liabilities
Deferred tax liability
16
1,473,000
1,047,000
(1,473,000)
(1,047,000)
Net assets
5,456,828
4,235,383
Capital and reserves
Called up share capital
18
200,000
200,000
Capital redemption reserve
300,000
300,000
Profit and loss reserves
4,956,828
3,735,383
Total equity
5,456,828
4,235,383
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 22 March 2024 and are signed on its behalf by:
W Fisher
Director
Company registration number 08466840 (England and Wales)
FLETCHER PLANT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2021
200,000
300,000
3,083,736
3,583,736
Year ended 30 June 2022:
Profit and total comprehensive income
-
-
651,647
651,647
Balance at 30 June 2022
200,000
300,000
3,735,383
4,235,383
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
1,221,445
1,221,445
Balance at 30 June 2023
200,000
300,000
4,956,828
5,456,828
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
1
Accounting policies
Company information
Fletcher Plant Limited is a private company limited by shares incorporated in England and Wales. The registered office is Clement Works, Clement Street, Sheffield, S9 5EA.
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 under 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 company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Fletcher Plant Limited is a wholly owned subsidiary of Fletchers Waste Management Limited and the results of Fletcher Plant Limited are included in the consolidated financial statements of Fletchers Waste Management Limited which are available from Clement Works, Clement Street, Sheffield, S9 5EA.
1.2
Prior year restatement
Comparative amounts in relation to directors remuneration and NBV of assets held on hire purchase have been restated within the relevant notes to reflect their accurate balances. This has no impact on the profit or the reserves.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
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.
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 12 -
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.
1.5
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:
Improvements to property
10% straight line
Plant and equipment
10% straight line
Fixtures and fittings
10% straight line
Motor vehicles
20% 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.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
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).
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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.
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 13 -
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, 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. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in 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, bank loans, and loans from fellow group companies that are classified as debt, 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.
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Share capital issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on share capital are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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 tax profit nor the accounting profit.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.
2
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Accruals
Significant estimates and assumptions have been made relating to the costs of waste disposal included within accruals. Assessment of the anticipated costs of disposal have been made when determining the value of provision required. In determining this provision, judgements regarding the tonnage and the disposal cost per tonne of waste held at the year-end are made. Estimates are based on historical experience and knowledge of the composition of the waste held at the year-end.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Waste disposal
21,694,305
16,691,705
Metals
401,702
587,046
22,096,007
17,278,751
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
22,096,007
17,278,751
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
22,650
19,600
Depreciation of owned tangible fixed assets
470,800
423,479
Depreciation of tangible fixed assets held under finance leases
493,440
459,432
Loss on disposal of tangible fixed assets
23,438
39,475
Operating lease charges
215,108
184,569
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management
6
6
Production
30
30
Drivers
25
24
Yard operatives
48
39
Total
109
99
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,138,674
3,407,364
Social security costs
282,225
119,694
Pension costs
88,752
75,259
4,509,651
3,602,317
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
445,294
383,019
Company pension contributions to defined contribution schemes
11,713
14,827
457,007
397,846
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
125,760
100,000
Company pension contributions to defined contribution schemes
6,430
6,374
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
10,141
24,607
Interest on finance leases and hire purchase contracts
99,052
74,078
Other interest
3,175
109,193
101,860
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
5,523
Adjustments in respect of prior periods
(82,570)
(123,303)
Total current tax
(77,047)
(123,303)
Deferred tax
Origination and reversal of timing differences
426,000
124,700
Total tax charge
348,953
1,397
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
8
Taxation
(Continued)
- 18 -
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
1,570,398
653,044
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
321,932
124,078
Tax effect of expenses that are not deductible in determining taxable profit
3,780
218
Tax effect of income not taxable in determining taxable profit
(2,731)
(22,354)
Adjustments in respect of prior years
(82,570)
(123,303)
Group relief
(20)
50,360
Other permanent differences
(66)
517
Deferred tax adjustments in respect of prior years
51,167
Tax at marginal rate
(206)
Fixed asset differences
(18,907)
(96,891)
Remeasurement of deferred tax for changes in tax rates
65,545
17,029
Movement in deferred tax not recognised
62,196
576
Taxation charge for the year
348,953
1,397
9
Tangible fixed assets
Improvements to property
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2022
193,672
8,661,152
54,979
319,542
9,229,345
Additions
87,762
1,374,507
64,838
221,177
1,748,284
Disposals
(534,927)
(93,464)
(628,391)
At 30 June 2023
281,434
9,500,732
119,817
447,255
10,349,238
Depreciation and impairment
At 1 July 2022
19,761
2,869,152
2,528
93,015
2,984,456
Depreciation charged in the year
22,835
864,380
12,290
64,735
964,240
Eliminated in respect of disposals
(346,159)
(57,645)
(403,804)
At 30 June 2023
42,596
3,387,373
14,818
100,105
3,544,892
Carrying amount
At 30 June 2023
238,838
6,113,359
104,999
347,150
6,804,346
At 30 June 2022
173,911
5,792,000
52,451
226,527
6,244,889
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
9
Tangible fixed assets
(Continued)
- 19 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and equipment
4,164,211
3,995,602
10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
11
100
100
11
Subsidiaries
Details of the company's subsidiaries at 30 June 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Mr Rubble Limited
Clement Works, Clement Street, Sheffield, S9 5EA
Dormant
Ordinary
100.00
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,302,235
2,887,980
Corporation tax recoverable
599,336
293,202
Amounts owed by group undertakings
3,656,732
2,912,905
Prepayments and accrued income
1,394,812
1,230,876
8,953,115
7,324,963
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
15
1,380,450
990,688
Trade creditors
2,622,893
2,610,142
Amounts owed to group undertakings
200
200
Corporation tax
521,129
Other taxation and social security
522,519
374,111
Other creditors
1,265,375
1,448,776
Accruals and deferred income
654,531
516,978
6,967,097
5,940,895
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
13
Creditors: amounts falling due within one year
(Continued)
- 20 -
Obligations under finance leases are secured by a fixed charge over the assets to which they relate.
Included in other creditors is an invoice discounting facility of £1,026,228 (2022: £1,404,728). This is secured by an all assets debenture over the present and future assets of the company.
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
15
1,954,069
2,424,406
Obligations under finance leases are secured by a fixed charge over the assets to which they relate.
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
1,954,069
990,688
In two to five years
1,380,450
2,424,406
3,334,519
3,415,094
Finance lease payments represent rentals payable by the company for certain items of plant and machinery.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,475,000
1,047,000
Short term timing differences
(2,000)
-
1,473,000
1,047,000
2023
Movements in the year:
£
Liability at 1 July 2022
1,047,000
Charge to profit or loss
426,000
Liability at 30 June 2023
1,473,000
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 21 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
88,752
75,259
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.
Accrued pension contributions at the year end in respect of defined contribution schemes amounted to £7,807 (2022: £9,306)
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
100,000
100,000
100,000
100,000
Ordinary B shares of £1 each
100,000
100,000
100,000
100,000
200,000
200,000
200,000
200,000
19
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
222,953
211,376
Between two and five years
824,526
758,657
In over five years
326,197
478,750
1,373,676
1,448,783
20
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
218,200
-
21
Events after the reporting date
On 11 March 2024 the company's parent undertaking Fletchers Waste Management Limited was acquired by DM TopCo Limited a member of the Beauparc Utilities Group.
FLETCHER PLANT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
22
Related party transactions
The company has taken advantage of the exemption in FRS 102 paragraph 33.11 from the requirement to disclose transactions with group companies on the grounds that significant influence is held by the ultimate parent company of the group companies.
S A Lythgoe and R P Fletcher hold a cross guarantee and debenture between the following group companies: Fletchers Waste Management Limited, Fletcher Plant Limited and Mr Rubble Limited in relation to loan notes which are held within Fletchers Waste Management Limited. At the year end the balance remaining on these loan notes is £5,370,641 (2022: £6,286,714)
Payments to related party pension schemes totalled £215,000 (2022: £185,000) in relation to property rental agreements.
The company entered into transactions with other business interests of Mr G Leverett, a director of the company. A summary of these transactions is set out below:
Materials Market Limited
During the year the company made purchases of £492,037 (2022: £Nil). A balance of £61,264 (2022: £Nil) was owed to Materials Market and is included in trade creditors at the year end.
23
Ultimate controlling party
At 30 June 2023 the immediate and ultimate parent undertaking of Fletcher Plant Limited was Fletchers Waste Management Limited, a private company limited by shares incorporated in England and Wales. The registered office is Clement Works, Clement Street, Sheffield, United Kingdom, S9 5EA.
On 11 March 2024 the company's parent undertaking Fletchers Waste Management Limited was acquired by DM TopCo Limited a company incorporated in the Republic of Ireland and a member of the Beauparc Utilities Group.
24
Prior period adjustment
The investment held by Fletcher Plant Limited in its subsidiary company Mr Rubble Limited of £100 has been reclassified from amounts owed to group undertakings to investment to reflect the position.
The prior period adjustment does not give rise to any effect on profit or equity as previously reported.
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