REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2023 |
for |
Ellgia Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2023 |
for |
Ellgia Limited |
Ellgia Limited (Registered number: 00860123) |
Contents of the Financial Statements |
for the Year Ended 30 June 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
Ellgia Limited |
Company Information |
for the Year Ended 30 June 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Lake House |
Market Hill |
Royston |
Hertfordshire |
SG8 9JN |
Ellgia Limited (Registered number: 00860123) |
Strategic Report |
for the Year Ended 30 June 2023 |
The directors present their strategic report for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
The year ended 30 June 2023 was in line with expectations. Further site development has taken place during the year to centralise systems and make all of our 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 company. |
The key financial highlights are as follows: |
2023 | 2022 |
£'000 | £'000 |
Turnover | 28,268 | 29,486 |
Gross profit | 6,234 | 7,235 |
Net profit | 1,316 | 2,161 |
Gross assets | 20,601 | 19,603 |
Net assets | 13,374 | 12,058 |
The company has been trading strongly during the year. 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 company 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 company 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 company implements a rigorous health and safety management system which is routinely monitored and improved, to mitigate the risk to the company. |
The company 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 company operates in. |
FUTURE DEVELOPMENTS |
The Board has a strategy of growth for the company 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 Limited (Registered number: 00860123) |
Strategic Report |
for the Year Ended 30 June 2023 |
FINANCIAL RISK MANAGEMENT |
The company 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 company's financial instruments are interest rate risk and credit risk. The directors review and agree policies for managing these risks. |
Interest rate risk - The company'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 company 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 company 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: |
Ellgia Limited (Registered number: 00860123) |
Report of the Directors |
for the Year Ended 30 June 2023 |
The directors present their report with the financial statements of the company for the year ended 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company 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. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report. It has done so in respect of principal risks and uncertainties. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Ellgia Limited (Registered number: 00860123) |
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: |
Report of the Independent Auditors to the Members of |
Ellgia Limited |
Opinion |
We have audited the financial statements of Ellgia Limited (the 'company') for the year ended 30 June 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Ellgia Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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 company. 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 company'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 company'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 company'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 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. |
for and on behalf of |
Lake House |
Market Hill |
Royston |
Hertfordshire |
SG8 9JN |
Ellgia Limited (Registered number: 00860123) |
Income Statement |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,189,717 | 2,805,672 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,202,186 | 2,817,373 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Ellgia Limited (Registered number: 00860123) |
Other Comprehensive Income |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Ellgia Limited (Registered number: 00860123) |
Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 | 1,400 | 1,400 |
Revaluation reserve | 19 | 257,977 | 257,977 |
Capital redemption reserve | 19 | 600 | 600 |
Retained earnings | 19 | 13,113,837 | 11,798,275 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Ellgia Limited (Registered number: 00860123) |
Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2021 | 1,400 | 9,636,859 | 257,977 | 600 | 9,896,836 |
Changes in equity |
Total comprehensive income | - | 2,161,416 | - | - | 2,161,416 |
Balance at 30 June 2022 | 1,400 | 11,798,275 | 257,977 | 600 | 12,058,252 |
Changes in equity |
Total comprehensive income | - | 1,315,562 | - | - | 1,315,562 |
Balance at 30 June 2023 | 1,400 | 13,113,837 | 257,977 | 600 | 13,373,814 |
Ellgia Limited (Registered number: 00860123) |
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 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan to subsidiary | - | (3,674,903 | ) |
Capital repayments in year | ( |
) | ( |
) |
Amount withdrawn by directors | (811,407 | ) | (27,636 | ) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
595,762 |
Cash and cash equivalents at end of year | 2 | 728,659 | 767,149 |
Ellgia Limited (Registered number: 00860123) |
Notes to the 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 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 83,796 | 61,543 |
Finance income | (12,469 | ) | (1,160 | ) |
2,743,983 | 4,387,478 |
Decrease/(increase) in stocks | ( |
) |
Decrease in trade and other debtors |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
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 | ( |
) | 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 Limited (Registered number: 00860123) |
Notes to the Financial Statements |
for the Year Ended 30 June 2023 |
1. | STATUTORY INFORMATION |
Ellgia Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
These financial statements are prepared in sterling which is the functional currency of the company. Monetary items are rounded to the nearest £1. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirement of paragraph 33.7. |
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. |
Goodwill |
When the fair value of the consideration for an acquired business exceeds the fair value of its separable net assets the difference is treated as purchased goodwill and is capitalised and amortised through the income statement over its economic life. The estimated life of goodwill for the various business' acquired 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 the other periods if events or changes in circumstances indicate that carrying value may not be recoverable. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Ellgia Limited (Registered number: 00860123) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life 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. |
Financial instruments |
The company 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 company's statement of financial position when the company 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. |
Ellgia Limited (Registered number: 00860123) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to 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 company. |
An analysis of turnover by class of business is given below: |
30.6.23 | 30.6.22 |
£ | £ |
Ellgia Limited (Registered number: 00860123) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
4. | EMPLOYEES AND DIRECTORS |
30.6.23 | 30.6.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.6.23 | 30.6.22 |
Directors | 3 | 3 |
Other staff | 143 | 140 |
30.6.23 | 30.6.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
30.6.23 | 30.6.22 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.6.23 | 30.6.22 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Goodwill amortisation |
Computer software amortisation |
Auditors' remuneration |
Ellgia Limited (Registered number: 00860123) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.23 | 30.6.22 |
£ | £ |
Interest to related parties |
Hire purchase |
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 |
Adjustment to previous periods | (455,807 | ) | - |
Total current tax | ( |
) |
Deferred tax |
Tax on profit | ( |
) |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
Group relief | - | (33,232 | ) |
Super deduction | (65,329 | ) | (67,743 | ) |
Depreciation on assets ineligible for Capital allowances | 26,776 | 23,241 |
Change in deferred tax rate | 47,074 | 110,323 |
Total tax (credit)/charge | (197,172 | ) | 594,414 |
As at 30 June 2023 the company had taxable trading losses carried forward of £21,205 (2022: £Nil) available to utilise against future trading losses. |
Ellgia Limited (Registered number: 00860123) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
8. | INTANGIBLE FIXED ASSETS |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
Additions |
At 30 June 2023 |
AMORTISATION |
At 1 July 2022 |
Amortisation for year |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
9. | TANGIBLE FIXED ASSETS |
Freehold | Improvements |
land and | to | Plant and |
buildings | property | machinery |
£ | £ | £ |
COST |
At 1 July 2022 |
Additions |
Disposals | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Ellgia Limited (Registered number: 00860123) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
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. 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). |
10. | FIXED ASSET INVESTMENTS |
Investments |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
11. | STOCKS |
30.6.23 | 30.6.22 |
£ | £ |
Stocks |
Ellgia Limited (Registered number: 00860123) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' loan accounts | 309,412 | - |
Tax |
Prepayments |
Included in trade debtors is an invoice financing facility amounting to £663,577 (2022: £521,231). |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Hire purchase contracts (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 426,506 | 480,554 |
Other creditors |
Directors' loan accounts | 1,210 | - |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Hire purchase contracts (see note 15) |
Directors' loan accounts | - | 503,205 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.6.23 | 30.6.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Ellgia Limited (Registered number: 00860123) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
15. | LEASING AGREEMENTS - continued |
Non-cancellable operating | leases |
30.6.23 | 30.6.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
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 the company 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 the company 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 the company in relation to all debts incurred by the company 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. |
17. | PROVISIONS FOR LIABILITIES |
30.6.23 | 30.6.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Tax losses carried forward | ( |
) |
843,910 | 585,275 |
Ellgia Limited (Registered number: 00860123) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
17. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 July 2022 |
Provided during year |
Balance at 30 June 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.23 | 30.6.22 |
value: | £ | £ |
Ordinary shares | £1 | 1,400 | 1,400 |
19. | RESERVES |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 July 2022 | 11,798,275 | 257,977 | 600 | 12,056,852 |
Profit for the year | 1,315,562 | 1,315,562 |
At 30 June 2023 | 13,113,837 | 257,977 | 600 | 13,372,414 |
20. | 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 company to the fund and amount to £162,771 (2022: £113,881). At the year end outstanding contributions totalled £13,670 (2022: £8,439). |
21. | CONTINGENT LIABILITIES |
The company has provided a guarantee dated 5 April 2023 in favour of The Environment Agency for £39,595. |
22. | CAPITAL COMMITMENTS |
30.6.23 | 30.6.22 |
£ | £ |
Contracted but not provided for in the |
financial statements |
23. | 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. |
Ellgia Limited (Registered number: 00860123) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
24. | RELATED PARTY DISCLOSURES |
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. |
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. |
25. | ULTIMATE CONTROLLING PARTY |
The immediate parent company is Ellgia Recycling Limited, a company incorporated in England and Wales. The ultimate parent company is Ellgia Holdings Limited. The largest and smallest group of undertakings for which group accounts have been drawn up is that headed by Ellgia Holdings Limited and copies are available from the Registrar of Companies (www.companieshouse.gov.uk). |
The ultimate controlling party is Mr S Crook. |