IRIS Accounts Production v23.4.0.336 09370749 Board of Directors 30.6.23 1.7.22 30.6.23 30.6.23 true true true false true true false false false false false true false Ordinary 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh093707492022-06-30093707492023-06-30093707492022-07-012023-06-30093707492021-06-30093707492021-07-012022-06-30093707492022-06-3009370749ns15:EnglandWales2022-07-012023-06-3009370749ns14:PoundSterling2022-07-012023-06-3009370749ns10:Director12022-07-012023-06-3009370749ns10:Consolidated2023-06-3009370749ns10:ConsolidatedGroupCompanyAccounts2022-07-012023-06-3009370749ns10:PrivateLimitedCompanyLtd2022-07-012023-06-3009370749ns10:Consolidatedns10:FRS1022022-07-012023-06-3009370749ns10:Consolidatedns10:Audited2022-07-012023-06-3009370749ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-07-012023-06-3009370749ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-07-012023-06-3009370749ns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-07-012023-06-3009370749ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Consolidated2022-07-012023-06-3009370749ns10:FullAccounts2022-07-012023-06-3009370749ns5:Subsidiary12022-07-012023-06-3009370749ns5:Subsidiary22022-07-012023-06-300937074912022-07-012023-06-3009370749ns10:OrdinaryShareClass12022-07-012023-06-3009370749ns10:Consolidated2022-07-012023-06-3009370749ns10:Director22022-07-012023-06-3009370749ns10:Director32022-07-012023-06-3009370749ns10:RegisteredOffice2022-07-012023-06-3009370749ns10:Consolidated2021-07-012022-06-3009370749ns5:ShareCapital2023-06-3009370749ns5:ShareCapital2022-06-3009370749ns5:ShareCapital2021-06-3009370749ns5:RetainedEarningsAccumulatedLosses2021-06-3009370749ns5:RetainedEarningsAccumulatedLosses2022-06-3009370749ns5:RetainedEarningsAccumulatedLosses2023-06-3009370749ns5:NetGoodwill2022-07-012023-06-3009370749ns5:CostValuation2022-06-3009370749ns5:Subsidiary112022-07-012023-06-30093707493ns5:Subsidiary22022-07-012023-06-3009370749ns10:OrdinaryShareClass12023-06-3009370749ns5:RetainedEarningsAccumulatedLosses2022-07-012023-06-30
REGISTERED NUMBER: 09370749 (England and Wales)
















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 June 2023

for

Ellgia Holdings Limited

Ellgia Holdings Limited (Registered number: 09370749)






Contents of the Consolidated Financial Statements
for the Year Ended 30 June 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Income Statement 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 17


Ellgia Holdings Limited

Company Information
for the Year Ended 30 June 2023







DIRECTORS: S R Crook
J R Lavington
N K Amonoo





REGISTERED OFFICE: Unit 7
Lancaster Way Business Park
Ely
Cambridgeshire
CB6 3NW





REGISTERED NUMBER: 09370749 (England and Wales)





AUDITORS: Hardcastle Burton LLP
Lake House
Market Hill
Royston
Hertfordshire
SG8 9JN

Ellgia Holdings Limited (Registered number: 09370749)

Group Strategic Report
for the Year Ended 30 June 2023

The directors present their strategic report of the company and the group for the year ended 30 June 2023.

The results for the year ended 30 June 2023 were in line with expectations. Further site development has taken place during the year to centralise systems and make all of the sites operate efficiently and as environmentally friendly as possible.

The key performance indicators monitored by the directors are those that best demonstrate the financial performance and strength of the group.

REVIEW OF BUSINESS
The results for the year and financial position of the group are as shown in the annexed financial statements.

The key financial highlights are as follows:

2023 2022
£'000 £'000
Turnover 28,268 29,486
Gross profit 6,234 7,235
Net profit before tax 952 2,414
Gross assets 15,240 14,409
Net assets 8,013 6,865

The group has been trading strongly during the year adapting well to the pandemic. Levels of recyclate have increased due to improved extraction rates which has been helped by significant investment in new equipment. This has had the added benefit of reducing disposal cost and therefore improved financial performance.

The group also carried out a full cost revenue analysis of the waste collection methodology and was able to initiate considerable cost savings based on consolidation and rationalisation.

PRINCIPAL RISKS AND UNCERTAINTIES
During the course of its business the group is exposed to relatively low levels of financial risks. Main risks include, but are not limited to the failure to comply with legislative and regulatory requirements such as Health and Safety and those imposed by the Environment Agency. The group implements a rigorous health and safety management system which is routinely monitored and improved, to mitigate the risk to the group.

The group has been trading at regular capacity during the year and has been able to take advantage of increase in some commodity prices and a general contraction of competitor base within some of the geographical areas the group operates in.

FUTURE DEVELOPMENTS
The Board has a strategy of growth for the group through expansion within existing markets and new areas when opportunities arise. The Board will continue to invest capital funds into site improvements in Ely, Boston, Scunthorpe and Prickwillow during the year to 30 June 2024, with a view to expand processing capacity, drive efficiencies and value for money strategies.


Ellgia Holdings Limited (Registered number: 09370749)

Group Strategic Report
for the Year Ended 30 June 2023

FINANCIAL RISK MANAGEMENT
The group uses various financial instruments including invoice finance facilities, operating leases and hire purchase agreements, as well as trade debtors and trade creditors risk management. The main risks from the group's financial instruments are interest rate risk and credit risk. The directors review and agree policies for managing these risks.

Interest rate risk - The group's exposure to interest rate risk is interest arising on the invoice finance facility and hire purchase agreements, this is managed through negotiations with the provider to ensure interest rates remain at a minimal and competitive level.

Credit risk - This is the risk associated with trade debtors. The directors mitigate this risk by ensuring procedures are in place to limit credit facilities to customers based on credit searches and trading history. In addition to this the group has a dedicated commercial risk department that reviews trade debtors on a weekly basis to ensure no commercial transactions are done to a bad credit risk.

Workforce risk - Our workforce remains stable and committed despite challenges within the UK employment market as a result of labour shortages. The group has overcome these challenges through the use of modernisation of its processes, limiting the manual labour requirements on their sites and offering driver training programmes in order to minimise impact from lack of haulage drivers.

ON BEHALF OF THE BOARD:





S R Crook - Director


10 April 2024

Ellgia Holdings Limited (Registered number: 09370749)

Report of the Directors
for the Year Ended 30 June 2023

The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of waste management.

DIVIDENDS
No dividends will be distributed for the year ended 30 June 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.

S R Crook
J R Lavington

Other changes in directors holding office are as follows:

N K Amonoo - appointed 28 September 2022

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with the Companies Act 2006, s.414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Group (Accounts and Reports) Regulations 2008, Sch,7 to be contained in the directors' report. It has done so in respect of principle risks and uncertainties, and financial instruments.

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

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

- select suitable accounting policies 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Ellgia Holdings Limited (Registered number: 09370749)

Report of the Directors
for the Year Ended 30 June 2023


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

ON BEHALF OF THE BOARD:





S R Crook - Director


10 April 2024

Report of the Independent Auditors to the Members of
Ellgia Holdings Limited

Opinion
We have audited the financial statements of Ellgia Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 June 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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
Ellgia Holdings Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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

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

Our approach was as follows:-

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group. We determined that the reporting frameworks directly relevant to the financial statements are FRS 102, Companies Act 2006 and the relevant tax compliance regulations in the group's jurisdiction.

We had a discussion with management to obtain an understanding of the controls in place with regards to the compliance of relevant frameworks. We corroborated this during our fieldwork by reviewing the group's board minutes and carrying out walkthroughs to ensure that the controls in place were effective.

At the planning stage, we carried out a risk assessment on the group's susceptivity to a material misstatement. Our risk assessment included a review of systems and controls in place and how fraud might occur. We devised specific substantive tests to combat potential areas of fraud. Our procedures involved manual journal testing, with a particular focus on the journals around the year end to ensure cut off.

We designed audit procedures to investigate whether any non-compliance with relevant laws and regulations described above occurred during or after the year. This included enquiries with management which were corroborated with a review of the related nominal ledger and board minutes.

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
Ellgia Holdings 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.




Denise Lindsell FCA (Senior Statutory Auditor)
for and on behalf of Hardcastle Burton LLP
Lake House
Market Hill
Royston
Hertfordshire
SG8 9JN

11 April 2024

Ellgia Holdings Limited (Registered number: 09370749)

Consolidated
Income Statement
for the Year Ended 30 June 2023

30.6.23 30.6.22
Notes £    £   

TURNOVER 3 28,267,751 29,486,398

Cost of sales 22,033,292 22,251,384
GROSS PROFIT 6,234,459 7,235,014

Administrative expenses 5,211,515 4,596,114
1,022,944 2,638,900

Other operating income - 10,541
OPERATING PROFIT 5 1,022,944 2,649,441

Interest receivable and similar income 12,469 1,160
1,035,413 2,650,601

Interest payable and similar expenses 6 83,796 236,446
PROFIT BEFORE TAXATION 951,617 2,414,155

Tax on profit 7 (197,172 ) 594,414
PROFIT FOR THE FINANCIAL YEAR 1,148,789 1,819,741
Profit attributable to:
Owners of the parent 1,148,789 1,819,741

Ellgia Holdings Limited (Registered number: 09370749)

Consolidated
Other Comprehensive Income
for the Year Ended 30 June 2023

30.6.23 30.6.22
Notes £    £   

PROFIT FOR THE YEAR 1,148,789 1,819,741


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,148,789

1,819,741

Total comprehensive income attributable to:
Owners of the parent 1,148,789 1,819,741

Ellgia Holdings Limited (Registered number: 09370749)

Consolidated Balance Sheet
30 June 2023

30.6.23 30.6.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 354,319 584,294
Tangible assets 10 8,695,720 7,761,711
Investments 11 1,802 1,802
9,051,841 8,347,807

CURRENT ASSETS
Stocks 12 137,668 218,683
Debtors 13 5,321,995 5,075,354
Cash at bank 728,659 767,149
6,188,322 6,061,186
CREDITORS
Amounts falling due within one year 14 5,049,182 5,481,854
NET CURRENT ASSETS 1,139,140 579,332
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,190,981

8,927,139

CREDITORS
Amounts falling due after more than one
year

15

(1,333,718

)

(1,477,300

)

PROVISIONS FOR LIABILITIES 18 (843,910 ) (585,275 )
NET ASSETS 8,013,353 6,864,564

CAPITAL AND RESERVES
Called up share capital 19 10 10
Other reserves 20 145 145
Retained earnings 20 8,013,198 6,864,409
SHAREHOLDERS' FUNDS 8,013,353 6,864,564

The financial statements were approved by the Board of Directors and authorised for issue on 10 April 2024 and were signed on its behalf by:





S R Crook - Director


Ellgia Holdings Limited (Registered number: 09370749)

Company Balance Sheet
30 June 2023

30.6.23 30.6.22
Notes £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 - -
Investments 11 10 10
10 10
TOTAL ASSETS LESS CURRENT
LIABILITIES

10

10

CAPITAL AND RESERVES
Called up share capital 19 10 10
SHAREHOLDERS' FUNDS 10 10

Company's profit for the financial year - -

The financial statements were approved by the Board of Directors and authorised for issue on 10 April 2024 and were signed on its behalf by:





S R Crook - Director


Ellgia Holdings Limited (Registered number: 09370749)

Consolidated Statement of Changes in Equity
for the Year Ended 30 June 2023

Called up
share Retained Other Total
capital earnings reserves equity
£    £    £    £   
Balance at 1 July 2021 10 5,044,668 145 5,044,823

Changes in equity
Total comprehensive income - 1,819,741 - 1,819,741
Balance at 30 June 2022 10 6,864,409 145 6,864,564

Changes in equity
Total comprehensive income - 1,148,789 - 1,148,789
Balance at 30 June 2023 10 8,013,198 145 8,013,353

Ellgia Holdings Limited (Registered number: 09370749)

Company Statement of Changes in Equity
for the Year Ended 30 June 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2021 10 - 10

Changes in equity
Balance at 30 June 2022 10 - 10

Changes in equity
Balance at 30 June 2023 10 - 10

Ellgia Holdings Limited (Registered number: 09370749)

Consolidated Cash Flow Statement
for the Year Ended 30 June 2023

30.6.23 30.6.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,463,185 5,418,325
Interest paid (6,250 ) (187,403 )
Interest element of hire purchase payments
paid

(77,546

)

(49,043

)
Tax paid 320,117 (452,073 )
Net cash from operating activities 2,699,506 4,729,806

Cash flows from investing activities
Purchase of intangible fixed assets (33,750 ) -
Purchase of tangible fixed assets (2,471,654 ) (1,101,927 )
Sale of tangible fixed assets 66,581 86,179
Interest received 12,469 1,160
Net cash from investing activities (2,426,354 ) (1,014,588 )

Cash flows from financing activities
New hire purchase in year 1,189,480 626,238
Loan repayments in year - (3,500,000 )
Capital repayments in year (689,715 ) (642,433 )
Amount repaid to directors (811,407 ) (27,636 )
Net cash from financing activities (311,642 ) (3,543,831 )

(Decrease)/increase in cash and cash equivalents (38,490 ) 171,387
Cash and cash equivalents at beginning of
year

2

767,149

595,762

Cash and cash equivalents at end of year 2 728,659 767,149

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 30 June 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
30.6.23 30.6.22
£    £   
Profit before taxation 951,617 2,414,155
Depreciation charges 1,752,084 1,818,004
Profit on disposal of fixed assets (31,045 ) (79,966 )
Finance costs 83,796 236,446
Finance income (12,469 ) (1,160 )
2,743,983 4,387,479
Decrease/(increase) in stocks 81,015 (120,865 )
Decrease in trade and other debtors 180,540 515,862
(Decrease)/increase in trade and other creditors (542,353 ) 635,849
Cash generated from operations 2,463,185 5,418,325

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 728,659 767,149
Year ended 30 June 2022
30.6.22 1.7.21
£    £   
Cash and cash equivalents 767,149 595,762


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.7.22 Cash flow At 30.6.23
£    £    £   
Net cash
Cash at bank 767,149 (38,490 ) 728,659
767,149 (38,490 ) 728,659
Debt
Finance leases (1,385,073 ) (499,765 ) (1,884,838 )
(1,385,073 ) (499,765 ) (1,884,838 )
Total (617,924 ) (538,255 ) (1,156,179 )

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements
for the Year Ended 30 June 2023

1. STATUTORY INFORMATION

Ellgia Holdings 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 General 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.

The financial statements are prepared in sterling which is the functional currency of the company. Monetary items are rounded to the nearest £1.

Basis of consolidation
Subsidiaries acquired during the year are consolidated using the purchase method. their results are incorporated from the date that control passes.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment or the asset transferred.

Where necessary, adjustments are made to the financial statements to being the accounting policies used into line with those used by other members of the group.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions which impact on the reported amounts of assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of estimation means that actual outcomes could differ from those estimates. The judgements and estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the financial statements are as follows:

Unprocessed waste accrual
Management makes an estimate for the costs to process waste held on site. The accrual is based on management's estimate of the amount of waste in tonnes held on site, multiplied by the estimated cost per tonne to process.

Depreciation of fixed assets
The annual depreciation charge for all assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised to the extent that it is probable that economic benefits will flow to the company and can be measured reliably.

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

2. ACCOUNTING POLICIES - continued

Goodwill
When the fair value of the consideration for an acquired undertaking exceeds the fair value of its separable net assets the difference is treated as purchased goodwill and is capitalised and amortised through the profit and loss over its estimated economic life. The estimated economic life of goodwill is between 7 and 10 years.

Goodwill is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that carrying value may not be recoverable.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter.


Freehold land and building- Freehold land is not depreciated, building depreciated at 5% straight line
Improvement to property- Straight line over 20 years
Plant and machinery- Straight line over 10 years
Fixtures and fittings- Straight line over 7 years
Motor vehicles- Straight line over 5 years


The company complied with paragraph 35.10 (d) of FRS 102 upon transition to FRS 102 which allowed certain revalued properties to be held on the balance sheet at deemed cost. Deemed cost is defined by an amount used as surrogate for cost of depreciated cost at the date of transition to FRS 102. Subsequent depreciation assumes that the entity had initially recognised the asset or liability at the given date and that its cost was equal to the deemed cost.

The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Government grants
In the comparative period, grants were obtained under the furlough scheme in light of the Covid-19 outbreak. The cashflows from these grants were accrued in line with section 24 of FRS 102 and are recognised under other income.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

Basic financial assets
Basic financial assets, which include debtors, 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.

Basic financial liabilities
Basic financial liabilities, including creditors and loans 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.

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

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

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

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

2. ACCOUNTING POLICIES - continued

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

Investments
Investments are recognised initially at the transaction price. At the end of each reporting period the investments are measured at fair value with the gain or loss on revaluation being charged to the income statement.

If a reliable measure of fair value is no longer available for an asset measured at fair value, its carrying amount at the last date the asset was reliably measurable becomes its new cost. Annual impairment reviews are performed for all investments where a reliable measure of fair value is not available.

3. TURNOVER

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

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

30.6.23 30.6.22
£    £   
Collections 18,437,333 18,723,946
Recyclates 5,344,068 6,719,482
Tipping 2,749,130 2,688,040
Other 1,737,220 1,354,930
28,267,751 29,486,398

Turnover is recognised to the extent that it is probable that economic benefits will flow to the company and can be measured reliably

4. EMPLOYEES AND DIRECTORS
30.6.23 30.6.22
£    £   
Wages and salaries 5,533,798 5,205,519
Social security costs 587,485 550,561
Other pension costs 162,771 113,881
6,284,054 5,869,961

The average number of employees during the year was as follows:
30.6.23 30.6.22

Directors 3 3
Other staff 143 140
146 143

30.6.23 30.6.22
£    £   
Directors' remuneration 426,597 583,902
Directors' pension contributions to money purchase schemes 3,963 2,897

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

4. EMPLOYEES AND DIRECTORS - continued

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

Money purchase schemes 3 3

Information regarding the highest paid director is as follows:
30.6.23 30.6.22
£    £   
Emoluments etc 198,932 231,217
Pension contributions to money purchase schemes 1,321 256

5. OPERATING PROFIT

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

30.6.23 30.6.22
£    £   
Hire of plant and machinery 582,860 424,405
Other operating leases 206,083 184,850
Depreciation - owned assets 1,090,010 1,140,673
Depreciation - assets on hire purchase contracts 398,349 390,066
Profit on disposal of fixed assets (31,045 ) (79,966 )
Goodwill amortisation 263,444 287,266
Computer software amortisation 281 -
Auditors' remuneration 27,305 25,000

6. INTEREST PAYABLE AND SIMILAR EXPENSES
30.6.23 30.6.22
£    £   
Interest to related parties 6,250 12,500
Interest payable - 174,903
Hire purchase 77,546 49,043
83,796 236,446

7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
30.6.23 30.6.22
£    £   
Current tax:
UK corporation tax - 339,903
Adjustment to previous periods (455,807 ) -
Total current tax (455,807 ) 339,903

Deferred tax 258,635 254,511
Tax on profit (197,172 ) 594,414

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

7. TAXATION - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30.6.23 30.6.22
£    £   
Profit before tax 951,617 2,414,155
Profit multiplied by the standard rate of corporation tax in the UK of
20.500 % (2022 - 19 %)

195,081

458,689

Effects of:
Expenses not deductible for tax purposes 20,844 38,217
Adjustments to tax charge in respect of previous periods (455,807 ) -
Super deduction (65,329 ) (67,742 )
Depreciation on assets ineligible for capital allowances 26,776 23,241
Change in deferred tax rate 47,074 110,322
Consolidated goodwill amortisation 34,189 31,687
Total tax (credit)/charge (197,172 ) 594,414

As at 30 June 2023 the group had taxable trading losses carried forward of £21,205 (2022: £Nil) available to utilise against future trading losses.

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


9. INTANGIBLE FIXED ASSETS

Group
Computer
Goodwill software Totals
£    £    £   
COST
At 1 July 2022 2,980,069 - 2,980,069
Additions - 33,750 33,750
At 30 June 2023 2,980,069 33,750 3,013,819
AMORTISATION
At 1 July 2022 2,395,775 - 2,395,775
Amortisation for year 263,444 281 263,725
At 30 June 2023 2,659,219 281 2,659,500
NET BOOK VALUE
At 30 June 2023 320,850 33,469 354,319
At 30 June 2022 584,294 - 584,294

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

9. INTANGIBLE FIXED ASSETS - continued

Group

Goodwill includes cost of £1,667,727 and accumulated amortisation of £1,500,956 (2022: £1,334,183) relating to the acquisition of Ellgia Ltd on 30 June 2014. The directors have estimated the economic life of this goodwill to be 10 years.

10. TANGIBLE FIXED ASSETS

Group
Freehold Improvements
land and to Plant and
buildings property machinery
£    £    £   
COST
At 1 July 2022 3,058,863 178,814 13,723,108
Additions 344,892 - 956,887
Disposals - - (158,463 )
At 30 June 2023 3,403,755 178,814 14,521,532
DEPRECIATION
At 1 July 2022 834,888 115,850 9,124,491
Charge for year 143,548 7,894 902,355
Eliminated on disposal - - (109,177 )
At 30 June 2023 978,436 123,744 9,917,669
NET BOOK VALUE
At 30 June 2023 2,425,319 55,070 4,603,863
At 30 June 2022 2,223,975 62,964 4,598,617

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 July 2022 409,703 3,611,349 20,981,837
Additions 61,346 1,108,529 2,471,654
Disposals - (135,182 ) (293,645 )
At 30 June 2023 471,049 4,584,696 23,159,846
DEPRECIATION
At 1 July 2022 306,331 2,838,566 13,220,126
Charge for year 36,659 397,903 1,488,359
Eliminated on disposal - (135,182 ) (244,359 )
At 30 June 2023 342,990 3,101,287 14,464,126
NET BOOK VALUE
At 30 June 2023 128,059 1,483,409 8,695,720
At 30 June 2022 103,372 772,783 7,761,711

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

10. TANGIBLE FIXED ASSETS - continued

Group

The group complied with paragraph 35.10 (d) of FRS 102 upon transition to FRS 102 which allowed certain revalued properties to be held on the balance sheet at deemed cost. At the year end date the historical cost of the properties held at deemed cost were £422,449 (2022: £422,449). The historical accumulated depreciation arising on the properties would have been £390,766 (2022: £369,643). No deferred tax liability on the revaluation has been recognised on the basis that after indexation allowance the liability would be immaterial.


Included within the net book value of tangible fixed assets is £1,999,711 (2022: £1,541,418) in respect of assets held under hire purchase contracts. Depreciation for the year on these assets was £398,349 (2022: £390,066).

11. FIXED ASSET INVESTMENTS

Group
Investments
£   
COST
At 1 July 2022
and 30 June 2023 1,802
NET BOOK VALUE
At 30 June 2023 1,802
At 30 June 2022 1,802
Company
Shares in
group
undertakings
£   
COST
At 1 July 2022
and 30 June 2023 10
NET BOOK VALUE
At 30 June 2023 10
At 30 June 2022 10

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Ellgia Recycling Limited
Registered office: Unit 7, Lancaster Way Business Park, Ely, Cambridgeshire, CB6 3NW
Nature of business: Waste management
%
Class of shares: holding
Ordinary 100.00

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

11. FIXED ASSET INVESTMENTS - continued

Ellgia Limited
Registered office: Unit 7, Lancaster Way Business Park, Ely, Cambridgeshire, CB6 3NW
Nature of business: Waste management
%
Class of shares: holding
Ordinary 100.00


12. STOCKS

Group
30.6.23 30.6.22
£    £   
Stocks 137,668 218,683

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
30.6.23 30.6.22
£    £   
Trade debtors 4,211,225 4,598,209
Other debtors 68,895 18,000
Directors' loan accounts 309,412 -
Tax 104,019 -
Prepayments 628,444 459,145
5,321,995 5,075,354

Included in trade debtors is an invoice financing facility amounting to £663,577 (2022: £521,231).

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
30.6.23 30.6.22
£    £   
Hire purchase contracts (see note 16) 551,120 410,978
Trade creditors 2,669,874 2,903,413
Tax 78,724 110,395
Social security and other taxes 149,981 121,243
VAT 426,506 480,554
Other creditors 13,733 8,768
Directors' loan accounts 1,210 -
Accrued expenses 1,158,034 1,446,503
5,049,182 5,481,854

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
30.6.23 30.6.22
£    £   
Hire purchase contracts (see note 16) 1,333,718 974,095
Directors' loan accounts - 503,205
1,333,718 1,477,300

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
30.6.23 30.6.22
£    £   
Net obligations repayable:
Within one year 551,120 410,978
Between one and five years 1,333,718 974,095
1,884,838 1,385,073

Group
Non-cancellable operating leases
30.6.23 30.6.22
£    £   
Within one year 162,324 142,959
Between one and five years 498,385 555,169
In more than five years - 23,240
660,709 721,368

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

17. SECURED DEBTS

The following secured debts are included within creditors:

Group
30.6.23 30.6.22
£    £   
Hire purchase contracts 1,884,838 1,385,073

Hire purchase liabilities are secured by the individual assets to which the liabilities relate.

On 4 February 2013 a floating charge was created over the assets of Ellgia Limited in relation to the original loan of £8,737,865 in Ellgia Recycling Ltd (registration: 07664851) the parent company of Ellgia Ltd, from a third party. The charge was satisfied on 28 July 2022.

On 10 December 2019 a fixed and floating charge was created over the assets of Ellgia Limited in relation to all debts due to HSBC at any point in time. This charge is registered with Companies House under reference 0086 0123 0017.

On 27 December 2019 an Unlimited Multilateral Guarantee was given by the company, Ellgia Recycling Limited and Ellgia Holdings Limited over any of the HSBC bank accounts and any future loans due to HSBC.

On 22 January 2020 a fixed and floating charge was created over the assets of Ellgia Limited in relation to all debts incurred by Ellgia Ltd at any point in time. This charge is registered with Companies House under reference 0086 0123 0018.

On 4 January 2021 a charge was assigned to HSBC securing contract monies over all present and future debts due to HSBC. This charge is registered with Companies House under reference 0086 0123 0019.

18. PROVISIONS FOR LIABILITIES

Group
30.6.23 30.6.22
£    £   
Deferred tax
Accelerated capital allowances 888,487 585,275
Tax losses carried forward (44,577 ) -
843,910 585,275

Group
Deferred
tax
£   
Balance at 1 July 2022 585,275
Provided during year 258,635
Balance at 30 June 2023 843,910

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.23 30.6.22
value: £    £   
10,638 Ordinary 0.001 10 10

Ellgia Holdings Limited (Registered number: 09370749)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 June 2023

20. RESERVES

Group
Retained Other
earnings reserves Totals
£    £    £   

At 1 July 2022 6,864,409 145 6,864,554
Profit for the year 1,148,789 1,148,789
At 30 June 2023 8,013,198 145 8,013,343

Company
Retained
earnings
£   

Profit for the year -
At 30 June 2023 -


21. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge represents contributions payable by the group to the fund amounted to £162,771 (2022: £113,881). At the year end outstanding contributions totalled £13,670 (2022 - £8,439).

22. CONTINGENT LIABILITIES

A subsidiary company, Ellgia Ltd has provided a guarantee dated 5 April 2023 in favour of The Environment Agency for £39,595.

23. CAPITAL COMMITMENTS
30.6.23 30.6.22
£    £   
Contracted but not provided for in the
financial statements 345,471 715,524

24. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the year, a director was advanced a loan of £309,412. At the year end, the balance owed was £309,412. The loan is due for repayment on demand and carries interest at 5% per annum. The maximum outstanding during the year was £309,412.

25. RELATED PARTY DISCLOSURES

During the year the company paid interest totalling £6,250 (2022: £12,500) on a loan provided by a Director. At the year end the loan payable to the director was £1,210 (2022: £503,205). Interest is charged at 5% per annum.

No other key management remuneration was paid during the year other than that disclosed in note 4.

26. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is S R Crook.