REGISTERED NUMBER: 06387601 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 March 2023 |
for |
Associated Waste Group Ltd |
REGISTERED NUMBER: 06387601 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 March 2023 |
for |
Associated Waste Group Ltd |
Associated Waste Group Ltd (Registered number: 06387601) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
Associated Waste Group Ltd |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
The Retreat |
406 Roding Lane South |
Woodford Green |
Essex |
IG8 8EY |
Associated Waste Group Ltd (Registered number: 06387601) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
The director presents his strategic report of the company and the group for the year ended 31 March 2023. |
The principal activity of the Group during the year was that of the provision of waste management services to the public and private sections, including ware collection, recycling, disposal and environmental cleansing. The Group prides itself of the fact that 0% of the waste it handles is sent to landfill. |
Founded in 2007, the Group provides a wide range of waste management services to clients across various industry sectors. The Group waste management services run the full spectrum to meet the requirements of today's business and regulatory landscape. |
Our mission is to provide the highest quality waste management services to commercial, industrial and domestic customers. |
REVIEW OF BUSINESS |
The key performance indicators of the Group are considered to be; turnover, operating profit and net financial debt. The Group's major non-financial key performance indicators revolve around health and safety monitoring. |
Group turnover from continuing operations for the year ended 31 March 2023 was £11.414k (period ended 31 March 2022: £19.919k). Operating profit was £1.083k (2022: £5,218k). |
Financial charges for 2023 were £40k compared to £125k in 2022. |
Net Group Assets at 31 March 2023 were £16.469k, an increase of 6% from 31 March 2022 when they were £15.561K. As a whole, the Group continues to invest heavily in new plant and machinery, waste processing technology, new waste management procedures, intensive training of the workforce and improved communications with our customers. |
Overall, the Director is satisfied with the performance of the Group. |
Associated Waste Group Ltd (Registered number: 06387601) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
During the year, senior management reviewed the risk register and confirmed their view that the more significant risks, in additions to those around the macro and micro economic environment issues, relevant to the delivery of the Group's strategy, are those set out below: |
Market risks |
The technologies employed by the Group delivered the expected performance for the markets in which the Group operates and was able to remain competitive. |
Legislative and market dynamics |
In mitigation of these risks, the Group has made significant investment in new technologies and regularly reviews its service offerings to ensure that they are fully compliant and can meet the needs of customers. |
Financial Risks |
It is the Group's objective to manage the financial risks so as to minimise the adverse effects of fluctuation in the financial markets on the Group's profits and cashflows. |
The Group conducts an exercise on an annual basis to identify those risks which management considers could prevent it from achieving its objectives or otherwise materially reduce its value. |
Interest rate risk |
The Group borrows at both fixed and floating rates of interest to generate the desired interest profile and to manage the Group's exposure to interest rate fluctuations. |
Liquidity risk |
The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of group loans, finance leases and hire purchase contracts. Short term flexibility is achieved by the use of overdraft facilities. |
ON BEHALF OF THE BOARD: |
Associated Waste Group Ltd (Registered number: 06387601) |
Report of the Director |
for the Year Ended 31 March 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 March 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023. |
DIRECTOR |
GOING CONCERN |
After reviewing the Group's forecasts and projections, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements. |
DISABLED EMPLOYEES |
It is the Group's policy to give full consideration to suitable applications from employment for disabled persons. |
Disabled employees are eligible to participate in all career development opportunities available to staff. Opportunities also exist for employees of the Group who become disabled to continue in their employment or to be trained for other positions in the Group. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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. |
Associated Waste Group Ltd (Registered number: 06387601) |
Report of the Director |
for the Year Ended 31 March 2023 |
AUDITORS |
The auditors, Nordens Audit Limited, 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 |
Associated Waste Group Ltd |
Opinion |
We have audited the financial statements of Associated Waste Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 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 31 March 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Associated Waste Group Ltd |
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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Associated Waste Group Ltd |
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: |
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: |
- Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. |
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. |
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
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 |
Associated Waste Group Ltd |
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 |
The Retreat |
406 Roding Lane South |
Woodford Green |
Essex |
IG8 8EY |
Associated Waste Group Ltd (Registered number: 06387601) |
Consolidated Income Statement |
for the Year Ended 31 March 2023 |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
Notes | £ | £ |
TURNOVER | 11,413,932 | 19,919,295 |
Cost of sales | 7,986,521 | 10,740,064 |
GROSS PROFIT | 3,427,411 | 9,179,231 |
Administrative expenses | 2,348,902 | 3,984,756 |
1,078,509 | 5,194,475 |
Other operating income | - | 23,824 |
OPERATING PROFIT | 4 | 1,078,509 | 5,218,299 |
Interest receivable and similar income | 4,783 | - |
1,083,292 | 5,218,299 |
Interest payable and similar expenses | 6 | 39,998 | 125,365 |
PROFIT BEFORE TAXATION | 1,043,294 | 5,092,934 |
Tax on profit | 7 | 135,648 | 1,023,155 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 907,646 | 4,069,779 |
Associated Waste Group Ltd (Registered number: 06387601) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 March 2023 |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 907,646 | 4,069,779 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
907,646 |
4,069,779 |
Total comprehensive income attributable to: |
Owners of the parent | 907,646 | 4,069,779 |
Associated Waste Group Ltd (Registered number: 06387601) |
Consolidated Balance Sheet |
31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | - | 1 |
Tangible assets | 10 | 5,813,945 | 6,121,852 |
Investments | 11 | - | - |
5,813,945 | 6,121,853 |
CURRENT ASSETS |
Debtors | 12 | 14,859,684 | 13,381,302 |
Cash at bank and in hand | 3,394,891 | 3,956,797 |
18,254,575 | 17,338,099 |
CREDITORS |
Amounts falling due within one year | 13 | 7,162,915 | 7,197,695 |
NET CURRENT ASSETS | 11,091,660 | 10,140,404 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 16,905,605 | 16,262,257 |
CREDITORS |
Amounts falling due after more than one year |
14 |
(97,755 |
) |
(375,407 |
) |
PROVISIONS FOR LIABILITIES | 16 | (338,759 | ) | (325,405 | ) |
NET ASSETS | 16,469,091 | 15,561,445 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 1 | 1 |
Retained earnings | 16,469,090 | 15,561,444 |
SHAREHOLDERS' FUNDS | 16,469,091 | 15,561,445 |
The financial statements were approved by the director and authorised for issue on 12 April 2024 and were signed by: |
Mr P Thornton - Director |
Associated Waste Group Ltd (Registered number: 06387601) |
Company Balance Sheet |
31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
Company's loss for the financial year | (39,613 | ) | (81,909 | ) |
The financial statements were approved by the director and authorised for issue on |
Associated Waste Group Ltd (Registered number: 06387601) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2020 | 1 | 11,491,665 | 11,491,666 |
Changes in equity |
Total comprehensive income | - | 4,069,779 | 4,069,779 |
Balance at 31 March 2022 | 1 | 15,561,444 | 15,561,445 |
Changes in equity |
Total comprehensive income | - | 907,646 | 907,646 |
Balance at 31 March 2023 | 1 | 16,469,090 | 16,469,091 |
Associated Waste Group Ltd (Registered number: 06387601) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2020 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2023 | ( |
) | ( |
) |
Associated Waste Group Ltd (Registered number: 06387601) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 272,112 | 6,941,848 |
Interest paid | - | (34,863 | ) |
Interest element of hire purchase payments paid |
(39,998 |
) |
(90,502 |
) |
Tax paid | (244,729 | ) | (300,001 | ) |
Net cash from operating activities | (12,615 | ) | 6,516,482 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (965,809 | ) | (1,016,972 | ) |
Sale of tangible fixed assets | 776,924 | 317,761 |
Interest received | 4,783 | - |
Net cash from investing activities | (184,102 | ) | (699,211 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (1,691,743 | ) |
Capital repayments in year | (365,189 | ) | (494,822 | ) |
Net cash from financing activities | (365,189 | ) | (2,186,565 | ) |
(Decrease)/increase in cash and cash equivalents | (561,906 | ) | 3,630,706 |
Cash and cash equivalents at beginning of year |
2 |
3,956,797 |
326,091 |
Cash and cash equivalents at end of year | 2 | 3,394,891 | 3,956,797 |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
£ | £ |
Profit before taxation | 1,043,294 | 5,092,934 |
Depreciation charges | 898,313 | 1,022,303 |
Profit on disposal of fixed assets | (401,519 | ) | (118,065 | ) |
Government grants | - | (23,824 | ) |
Finance costs | 39,998 | 125,365 |
Finance income | (4,783 | ) | - |
1,575,303 | 6,098,713 |
Increase in trade and other debtors | (1,478,382 | ) | (589,249 | ) |
Increase in trade and other creditors | 175,191 | 1,432,384 |
Cash generated from operations | 272,112 | 6,941,848 |
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 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 3,394,891 | 3,956,797 |
Period ended 31 March 2022 |
31.3.22 | 1.11.20 |
£ | £ |
Cash and cash equivalents | 3,956,797 | 326,091 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,956,797 | (561,906 | ) | 3,394,891 |
3,956,797 | (561,906 | ) | 3,394,891 |
Debt |
Finance leases | (740,595 | ) | 365,188 | (375,407 | ) |
(740,595 | ) | 365,188 | (375,407 | ) |
Total | 3,216,202 | (196,718 | ) | 3,019,484 |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Associated Waste Group Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirement of paragraph 33.7. |
Basis of consolidation |
The Group financial statements consolidate the financial statements of Associated Waste Group Limited and all of its subsidiary undertakings drawn up to 31 March each year. |
The consolidated financial statements present the results of the Group and its own subsidiaries as if they form one single entity. Intercompany transactions and balances between Group companies are eliminated in full. |
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probably and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. |
Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In preparing these financial statements, management have made the following judgements: |
- Determine whether leases entered into by the Group, either as a lessor or a lessee, are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. |
- Determine whether there are indicators of impairment of the Group's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. |
Key sources of estimation uncertainty are: |
(a) Tangible fixed assets |
Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the assets and projected disposal values. |
(b) Impairment of debtors |
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management consider factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is recognised to the extent that the Group obtains the right to consideration in exchange for its performance. Turnover is measured at the fair value of the consideration received including landfill tax where appropriate and excluding discounts, rebates, VAT and other sales taxes or duties. The following criteria must also be met before turnover is recognised: |
- Turnover arising from the handling and disposal of waste is recognised on receipt of the waste by the Group. |
- Turnover arising from the sale of recycled waste is recognised when the significant risks and rewards of ownership of the goods have been passed to the buyer, usually when the goods are dispatched. |
- Turnover from the provision of services is recognised when the contracted service has been performed. |
Goodwill |
The difference between the cost of acquisition and the fair value of the net assets acquired at the date of acquisition is capitalised in the balance sheet. In conformity with the long-term nature of the Group's business, the directors are amortising goodwill on a straight line basis over its estimated useful life of twenty years. For goodwill that is amortised over 20 years, a review for impairment at the end of the first full financial year following the acquisition is carried out and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable. |
If a subsidiary, associate or business is subsequently sold or closed, any goodwill arising on acquisition that has not been amortised through the profit and loss account is taken into account on determining the profit or loss on sale or closure. |
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. |
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. |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter. |
Freehold property - 2% on cost |
Plant and machinery - 25% on reducing balance, 20% on cost and 15% on reducing balance |
Fixtures and fittings - 25% on reducing balance and 15% on reducing balance |
Motor vehicles - 25% on reducing balance |
Computer equipment - 25% on reducing balance |
At each reporting period end date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the profit or loss, unless the relevant asset is carried at a revalued amount, in which case, the reversal of the impairment loss is treated as a revaluation increase. |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the Group's balance sheet when the Group becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets which include debtors, cash and bank balances are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Impairment of financial assets |
Financial assets, other than those held at fair value through the profit and loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after he initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. THe impairment loss is recognised in the profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, are settled, when the Group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Basic financial liabilities, including creditors, bank loans, loans from fellow Group companies and preference shares 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Debt instruments are subsequently carried at amortised costs, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transactions price and subsequently measured at amortised cost using the effective interest method. |
Other financial liabilities |
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in the profit or loss in finance cs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge. |
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. Debt instruments may be designated as being measured at fair value through the profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled. |
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. |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
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 profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
The Group is financed by long term arrangements with its subsidiaries. As the Group has net current assets and its forecasts remain profitable and cash generative, the director believes that the Group has adequate resources to continue to trade for the foreseeable future. For this reason, the director continues to adopt the going concern basis in the financial statements. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
3. | EMPLOYEES AND DIRECTORS |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
£ | £ |
Wages and salaries | 2,365,189 | 2,806,918 |
Social security costs | 273,535 | 386,012 |
Other pension costs | 42,950 | 148,419 |
2,681,674 | 3,341,349 |
The average number of employees during the year was as follows: |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
£ | £ |
Director's remuneration | 271,666 | 495,833 |
Information regarding the highest paid director is as follows: |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
£ | £ |
Emoluments etc | 60,000 | 85,000 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
£ | £ |
Hire of plant and machinery | - | 538 |
Other operating leases | 10,117 | 17,649 |
Depreciation - owned assets | 898,311 | 803,335 |
Profit on disposal of fixed assets | (401,519 | ) | (118,065 | ) |
Goodwill amortisation | 1 | 218,969 |
5. | AUDITORS' REMUNERATION |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
10,000 |
8,500 |
Fees payable to the company's auditors for other services to the group: |
The auditing of accounts of any associate of the company | - | 24,500 |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
£ | £ |
Bank loan interest | - | 34,863 |
Hire purchase | 39,998 | 90,502 |
39,998 | 125,365 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
£ | £ |
Current tax: |
UK corporation tax | 122,294 | 868,333 |
Deferred tax | 13,354 | 154,822 |
Tax on profit | 135,648 | 1,023,155 |
Reconciliation of total tax 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: |
Period |
1.11.20 |
Year Ended | to |
31.3.23 | 31.3.22 |
£ | £ |
Profit before tax | 1,043,294 | 5,092,934 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
198,226 |
967,657 |
Effects of: |
Expenses not deductible for tax purposes | 90,907 | 92,914 |
Depreciation in excess of capital allowances | 120,048 | 170,347 |
Utilisation of tax losses | (273,533 | ) | (207,763 | ) |
Total tax charge | 135,648 | 1,023,155 |
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. |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 | 1,700,408 |
AMORTISATION |
At 1 April 2022 | 1,700,407 |
Amortisation for year | 1 |
At 31 March 2023 | 1,700,408 |
NET BOOK VALUE |
At 31 March 2023 | - |
At 31 March 2022 | 1 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 April 2022 | 2,981,297 | - | 7,682,739 |
Additions | 33,106 | 372,226 | 87,264 |
Disposals | (366,423 | ) | - | (76,000 | ) |
At 31 March 2023 | 2,647,980 | 372,226 | 7,694,003 |
DEPRECIATION |
At 1 April 2022 | - | - | 5,554,254 |
Charge for year | - | - | 528,723 |
Eliminated on disposal | - | - | (68,327 | ) |
At 31 March 2023 | - | - | 6,014,650 |
NET BOOK VALUE |
At 31 March 2023 | 2,647,980 | 372,226 | 1,679,353 |
At 31 March 2022 | 2,981,297 | - | 2,128,485 |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 | 83,634 | 3,545,613 | 35,602 | 14,328,885 |
Additions | 190 | 470,249 | 2,774 | 965,809 |
Disposals | - | (3,102 | ) | - | (445,525 | ) |
At 31 March 2023 | 83,824 | 4,012,760 | 38,376 | 14,849,169 |
DEPRECIATION |
At 1 April 2022 | 74,563 | 2,543,335 | 34,881 | 8,207,033 |
Charge for year | 1,282 | 364,972 | 3,334 | 898,311 |
Eliminated on disposal | - | (1,793 | ) | - | (70,120 | ) |
At 31 March 2023 | 75,845 | 2,906,514 | 38,215 | 9,035,224 |
NET BOOK VALUE |
At 31 March 2023 | 7,979 | 1,106,246 | 161 | 5,813,945 |
At 31 March 2022 | 9,071 | 1,002,278 | 721 | 6,121,852 |
Included in the cost of land and buildings is freehold land of £2,647,980 (2022: £2,981,297) which is not depreciated. |
The property currently held in the group is in its final stages of development. It will be revalued and depreciated once the development has been completed. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | 2,392,214 | 464,230 | 2,856,444 |
Transfer to ownership | (467,078 | ) | (107,965 | ) | (575,043 | ) |
At 31 March 2023 | 1,925,136 | 356,265 | 2,281,401 |
DEPRECIATION |
At 1 April 2022 | 1,340,830 | 396,292 | 1,737,122 |
Transfer to ownership | (266,361 | ) | (100,394 | ) | (366,755 | ) |
At 31 March 2023 | 1,074,469 | 295,898 | 1,370,367 |
NET BOOK VALUE |
At 31 March 2023 | 850,667 | 60,367 | 911,034 |
At 31 March 2022 | 1,051,384 | 67,938 | 1,119,322 |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The principal subsidiaries of the company are shown below: |
Company | Ownership | Incorporation | Principal Activity |
Regional Waste Recycling (Commercial) Limited | 100% | England and Wales | Waste recycling |
Associated Waste Land Management Limited |
100% |
England and Wales |
Property management |
Docklands Waste Recycling Limited | 100% | England and Wales | Waste recycling |
Docklands Waste Disposal Limited | 100% | England and Wales | Waste recycling |
V.C Cooke Limited | 100% | England and Wales | Waste recycling |
12. | DEBTORS |
Group | Company |
31.3.23 | 31.3.22 | 31.3.23 | 31.3.22 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 2,768,230 | 3,317,243 |
Amounts owed by group undertakings | - | - |
Other debtors | 11,326,868 | 9,149,473 |
14,095,098 | 12,466,716 |
Amounts falling due after more than one | year: |
Other debtors | 764,586 | 914,586 |
Aggregate amounts | 14,859,684 | 13,381,302 |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.3.23 | 31.3.22 | 31.3.23 | 31.3.22 |
£ | £ | £ | £ |
Hire purchase contracts (see note 15) | 277,652 | 365,188 |
Trade creditors | 1,174,682 | 897,762 |
Amounts owed to group undertakings | - | - |
Tax | 1,115,265 | 1,237,700 |
Social security and other taxes | 230,577 | 499,871 |
Other creditors | 2,684,506 | 2,668,665 |
Accrued expenses | 1,680,233 | 1,528,509 |
7,162,915 | 7,197,695 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.3.23 | 31.3.22 |
£ | £ |
Hire purchase contracts (see note 15) | 97,755 | 375,407 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.3.23 | 31.3.22 |
£ | £ |
Net obligations repayable: |
Within one year | 277,652 | 365,188 |
Between one and five years | 97,755 | 375,407 |
375,407 | 740,595 |
16. | PROVISIONS FOR LIABILITIES |
Group |
31.3.23 | 31.3.22 |
£ | £ |
Deferred tax | 338,759 | 325,405 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 325,405 |
Provided during year | 13,354 |
Balance at 31 March 2023 | 338,759 |
Associated Waste Group Ltd (Registered number: 06387601) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.23 | 31.3.22 |
value: | £ | £ |
Ordinary | 1 | 1 | 1 |
18. | 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
19. | ULTIMATE CONTROLLING PARTY |
Mr P Thornton is the ultimate controlling party as he owns 100% of the share capital and voting rights of the Associated Waste Group Limited. |