Company Registration No. 11373602 (England and Wales)
ROYDON HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2023
31 October 2023
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
ROYDON HOLDINGS LIMITED
COMPANY INFORMATION
Directors
S P Sumner
W Sumner
G R Wallwork
Company number
11373602
Registered office
Units 1-3
Junction Eco Park
Rake Lane
Swinton
M27 8LU
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
ROYDON HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
ROYDON HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

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

Review of the business

The principal activity of the Group continues to be that of plastic waste reclamation and the trade of buying, selling and merchanting waste plastic.

The marketplace continues to be turbulent, with ongoing volatility in both availability and material price. The Deposit Return Scheme, originally intended for launch in 2023 has been further delayed, with the start date now expected to be in 2028. Whilst this is still expected to have a material effect on the supply of feedstock once implemented, the ongoing delay continues to bring uncertainty to the industry.

The Group has continued to invest in technology to improve the quality of material and product yield by spending £2.6 million on a new sorting line. It is expected that this investment will continue to ensure that the Group remain a market leader in the plastic waste reclamation sector.

Overall, the Directors remain pleased with the performance for the year.

Principal risks and uncertainties

The group finances its operations through a mixture of retained profits, bank borrowings and where necessary to fund capital expenditure programmes through the hire purchase financing arrangements. The management's objectives are to:

 

- retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due; and

 

- match the repayment schedule of any external finance with the expected cash flows expected to arise from the company's trading activities.

 

As the group's surplus funds are primarily invested in sterling bank accounts, this limits exposure to price risk.

 

Surplus funds held in foreign currencies do however expose the group to price risk from foreign exchange movements.

 

Credit risk associated with these funds is minimised through holding accounts with a UK clearing bank.

 

The group is exposed to price risk in connection with sales being denominated in foreign currencies. This exposes the group to the uncertainty of exchange rate movements. Hedge accounting is not used by the group since the directors do not consider the additional costs incurred in reducing exchange risk to be worthwhile.

 

The group's credit risk is primarily attributable to its trade debtors. Credit insurance is utilised to reduce this particular risk.

 

It is the group's policy that payments to suppliers are made in accordance with those terms and conditions agreed between the group and it's suppliers, provided that all trading terms and conditions have been complied with.

 

 

 

 

 

 

ROYDON HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Key performance indicators

The Group's key financial and other performance indicators during the year were as follows:

2023             2022

Turnover                £27,764,312        £32,664,765

Gross Profit             £6,928,034         £7,079,835

Gross Profit %             25%         22%

Operating Profit             £4,919,564         £3,591,039

Profit/(Loss) Before tax         £4,277,495         £3,313,883

Net Assets             £8,206,755         £4,697,189

On behalf of the board

S P Sumner
Director
19 July 2024
ROYDON HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 October 2023.

Principal activities

The principal activity of the Group continued to be that of an investment holding company.

 

The principal activity of the trading subsidiaries continued to be that of plastic waste reclamation, and the trade of buying, selling and merchanting waste plastics.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £378,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

S P Sumner
W Sumner
G R Wallwork
Auditor

PM+M Solutions for Business LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

ROYDON HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
S P Sumner
Director
19 July 2024
ROYDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROYDON HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Roydon Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ROYDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYDON HOLDINGS LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

ROYDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYDON HOLDINGS LIMITED
- 7 -

Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Group's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

ROYDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYDON HOLDINGS LIMITED
- 8 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Daniel Bowles FCCA (Senior Statutory Auditor)
For and on behalf of PM+M Solutions for Business LLP
19 July 2024
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
ROYDON HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
4
27,764,312
32,664,765
Cost of sales
(20,836,278)
(25,584,930)
Gross profit
6,928,034
7,079,835
Administrative expenses
(2,802,656)
(3,950,207)
Other operating income
794,186
461,411
Operating profit
5
4,919,564
3,591,039
Share of results of associates
9,209
(34,561)
Interest receivable and similar income
9
2,498
-
0
Interest payable and similar expenses
10
(653,776)
(242,595)
Profit before taxation
4,277,495
3,313,883
Tax on profit
11
(389,929)
(826,211)
Profit for the financial year
3,887,566
2,487,672
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ROYDON HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
1,400,239
1,705,746
Tangible assets
14
9,789,177
7,982,120
Investments
15
1,644,955
1,635,746
12,834,371
11,323,612
Current assets
Stocks
18
2,142,782
2,393,890
Debtors
19
4,091,136
7,468,257
Cash at bank and in hand
929,953
2,096,324
7,163,871
11,958,471
Creditors: amounts falling due within one year
20
(7,449,417)
(14,172,955)
Net current liabilities
(285,546)
(2,214,484)
Total assets less current liabilities
12,548,825
9,109,128
Creditors: amounts falling due after more than one year
21
(3,300,959)
(3,733,159)
Provisions for liabilities
Deferred tax liability
24
1,041,111
678,780
(1,041,111)
(678,780)
Net assets
8,206,755
4,697,189
Capital and reserves
Called up share capital
26
100
100
Profit and loss reserves
8,206,655
4,697,089
Total equity
8,206,755
4,697,189

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 19 July 2024 and are signed on its behalf by:
19 July 2024
S P Sumner
Director
Company registration number 11373602 (England and Wales)
ROYDON HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
7,879,609
7,879,609
Current assets
Debtors
19
165,775
1,291,166
Creditors: amounts falling due within one year
20
(8,045,284)
(7,343,675)
Net current liabilities
(7,879,509)
(6,052,509)
Total assets less current liabilities
100
1,827,100
Creditors: amounts falling due after more than one year
21
-
(1,827,000)
Net assets
100
100
Capital and reserves
Called up share capital
26
100
100

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £378,000 (2022 - £612,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 19 July 2024 and are signed on its behalf by:
19 July 2024
S P Sumner
Director
Company registration number 11373602 (England and Wales)
ROYDON HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2021
100
2,821,417
2,821,517
Year ended 31 October 2022:
Profit and total comprehensive income
-
2,487,672
2,487,672
Dividends
12
-
(612,000)
(612,000)
Balance at 31 October 2022
100
4,697,089
4,697,189
Year ended 31 October 2023:
Profit and total comprehensive income
-
3,887,566
3,887,566
Dividends
12
-
(378,000)
(378,000)
Balance at 31 October 2023
100
8,206,655
8,206,755
ROYDON HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2021
100
-
0
100
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
612,000
612,000
Dividends
12
-
(612,000)
(612,000)
Balance at 31 October 2022
100
-
0
100
Year ended 31 October 2023:
Profit and total comprehensive income
-
378,000
378,000
Dividends
12
-
(378,000)
(378,000)
Balance at 31 October 2023
100
-
0
100
ROYDON HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
4,137,401
4,918,169
Interest paid
(653,776)
(242,595)
Income taxes paid
(1,030,374)
(542,633)
Net cash inflow from operating activities
2,453,251
4,132,941
Investing activities
Purchase of tangible fixed assets
(555,042)
(364,771)
Repayment of loans
600,000
-
Interest received
2,498
-
0
Net cash generated from/(used in) investing activities
47,456
(364,771)
Financing activities
Repayment of borrowings
(2,217,000)
(366,000)
Repayment of bank loans
(805,656)
(1,350,235)
Payment of finance leases obligations
(266,422)
(109,761)
Dividends paid to equity shareholders
(378,000)
(612,000)
Net cash used in financing activities
(3,667,078)
(2,437,996)
Net (decrease)/increase in cash and cash equivalents
(1,166,371)
1,330,174
Cash and cash equivalents at beginning of year
2,096,324
766,150
Cash and cash equivalents at end of year
929,953
2,096,324
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
1
Accounting policies
Company information

Roydon Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Units 1-3, Junction Eco Park, Rake Lane, Swinton, M27 8LU.

 

The group consists of Roydon Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

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 probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Roydon Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Investments in associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in associates include acquired goodwill.

 

If the group’s share of losses in a associate equals or exceeds its investment in the associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the associate.

 

Unrealised gains arising from transactions with associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover represents goods delivered and PRN (Packaging recovery note) / PERN (Packaging export recovery note) sales during the year excluding VAT. PRN/PERN sales are recognised on the supply of PRN/PERN's.

 

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

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.

ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% Straight Line
Leasehold land and buildings
Straight line over the term of the lease
Leasehold improvements
Straight line over the term of the lease
Plant and equipment
5-50% Straight line
Fixtures and fittings
33.3% Straight line
Motor vehicles
25% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of fixed assets

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.

1.10
Stocks

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

 

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

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

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
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 and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price. 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.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Change in accounting policy

During the year, the entity changed the method in valuation of the properties held to use the cost. Previously they have been valued using the revaluation model, which is not available for investment properties leased within the group. This has resulted in additional depreciation charges during the year of £53,965.

 

The additional depreciation charge that would need to be included retrospectively to date of acquistion has been concluded immaterial to the accounts, and therefore prior year has not been restated.

ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
3
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The main areas of judgement that have a risk of causing material misstatement to the carrying amounts of assets and liabilities are in relation to stock provisions and useful economic lives of the company's fixed assets.

4
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Plastic waste reclamation
27,764,312
32,664,765
2023
2022
£
£
Turnover analysed by geographical market
UK
25,221,088
28,494,394
Rest of World
2,543,224
4,170,371
27,764,312
32,664,765
2023
2022
£
£
Other revenue
Interest income
2,498
-
Grants received
-
0
76,438
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(50,224)
(31,392)
Government grants
-
0
(76,438)
Depreciation of owned tangible fixed assets
586,529
491,180
Depreciation of tangible fixed assets held under finance leases
74,215
47,529
Loss on disposal of tangible fixed assets
415,881
-
0
Amortisation of intangible assets
305,507
305,507
Operating lease charges
403,323
777,975
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
14,250
26,624
Audit of the financial statements of the company's subsidiaries
42,650
-
56,900
26,624
For other services
Taxation compliance services
8,000
-
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production
60
57
-
-
Administration
9
14
-
-
Directors
3
3
3
3
Total
72
74
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,906,400
2,750,411
-
0
-
0
Social security costs
43,008
23,394
-
0
-
0
Pension costs
79,051
54,089
-
0
-
0
3,028,459
2,827,894
-
0
-
0
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
337,589
187,200
Company pension contributions to defined contribution schemes
28,670
11,544
366,259
198,744
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
8
Directors' remuneration
(Continued)
- 23 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
117,600
-
Company pension contributions to defined contribution schemes
4,350
-
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
2,498
-
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
114,730
107,043
Interest on invoice finance arrangements
150,177
103,413
Other interest on financial liabilities
5,166
-
Interest on finance leases and hire purchase contracts
143,843
28,452
Other interest
239,860
3,687
Total finance costs
653,776
242,595
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
48,639
716,070
Adjustments in respect of prior periods
32
-
0
Total current tax
48,671
716,070
Deferred tax
Origination and reversal of timing differences
442,793
110,141
Adjustment in respect of prior periods
(101,535)
-
0
Total deferred tax
341,258
110,141
Total tax charge
389,929
826,211

From the 1 April 2023 the effective tax rate is 25%. During the period the effective tax rate has changed to 22.52%.

ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
11
Taxation
(Continued)
- 24 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
4,277,495
3,313,883
Expected tax charge based on the standard rate of corporation tax in the UK of 22.52% (2022: 19.00%)
963,292
629,638
Tax effect of expenses that are not deductible in determining taxable profit
41,501
22,563
Tax effect of income not taxable in determining taxable profit
(546,498)
64,613
Effect of change in corporation tax rate
43,717
-
Group relief
50,014
-
0
Permanent capital allowances in excess of depreciation
(60,768)
(744)
Other differences
206
110,141
Deferred tax adjustments in respect of prior years
(101,535)
-
0
Taxation charge
389,929
826,211
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
378,000
612,000
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
3,055,069
Amortisation and impairment
At 1 November 2022
1,349,323
Amortisation charged for the year
305,507
At 31 October 2023
1,654,830
Carrying amount
At 31 October 2023
1,400,239
At 31 October 2022
1,705,746
The company had no intangible fixed assets at 31 October 2023 or 31 October 2022.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 25 -
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 November 2022
5,044,916
275,009
136,845
9,006,387
232,719
24,753
14,720,629
Additions
10,795
-
0
-
0
2,824,940
47,947
-
0
2,883,682
Disposals
-
0
-
0
-
0
(941,196)
(1,021)
(11,086)
(953,303)
At 31 October 2023
5,055,711
275,009
136,845
10,890,131
279,645
13,667
16,651,008
Depreciation and impairment
At 1 November 2022
-
0
274,699
121,899
6,098,739
231,326
11,846
6,738,509
Depreciation charged in the year
53,965
310
8,507
568,000
24,647
5,315
660,744
Eliminated in respect of disposals
-
0
-
0
-
0
(526,336)
-
0
(11,086)
(537,422)
At 31 October 2023
53,965
275,009
130,406
6,140,403
255,973
6,075
6,861,831
Carrying amount
At 31 October 2023
5,001,746
-
0
6,439
4,749,728
23,672
7,592
9,789,177
At 31 October 2022
5,044,916
310
14,946
2,907,648
1,393
12,907
7,982,120
The company had no tangible fixed assets at 31 October 2023 or 31 October 2022.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
14
Tangible fixed assets
(Continued)
- 26 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
2,708,236
221,389
-
0
-
0

 

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
6,478,963
6,478,963
Investments in associates
17
1,644,955
1,635,746
1,400,646
1,400,646
1,644,955
1,635,746
7,879,609
7,879,609
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 November 2022
1,635,746
Share of profit/(loss)
9,209
At 31 October 2023
1,644,955
Carrying amount
At 31 October 2023
1,644,955
At 31 October 2022
1,635,746
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
15
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 November 2022 and 31 October 2023
7,879,609
Carrying amount
At 31 October 2023
7,879,609
At 31 October 2022
7,879,609
16
Subsidiaries

Details of the company's subsidiaries at 31 October 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Roydon Group PLC
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
100.00
-
Roydon Polythene Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
-
100.00
Roydon Resource Recovery Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
-
100.00
Roydon Granulation Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
-
100.00
17
Associates

Details of associates at 31 October 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Roydon Bottle Recycling Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
20
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
2,142,782
2,393,890
-
0
-
0
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,080,740
3,292,165
-
0
-
0
Corporation tax recoverable
303,015
-
0
-
0
-
0
Other debtors
282,456
3,528,674
165,775
1,291,166
Prepayments and accrued income
403,852
647,418
-
0
-
0
4,070,063
7,468,257
165,775
1,291,166
Amounts falling due after more than one year:
Deferred tax asset (note 24)
21,073
-
0
-
0
-
0
Total debtors
4,091,136
7,468,257
165,775
1,291,166
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
22
272,000
833,338
-
0
-
0
Obligations under finance leases
23
515,219
92,119
-
0
-
0
Other borrowings
22
-
0
390,000
-
0
390,000
Trade creditors
2,557,330
4,030,990
-
0
-
0
Corporation tax payable
48,552
727,240
-
0
11,114
Other taxation and social security
278,730
118,064
-
-
Other creditors
2,096,866
6,733,653
8,045,284
6,942,561
Accruals and deferred income
1,680,720
1,247,551
-
0
-
0
7,449,417
14,172,955
8,045,284
7,343,675

Amounts due to the directors of £1,601,683 (2022: £NIL) was included in other creditors at the year end.

21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
1,547,058
1,791,376
-
0
-
0
Obligations under finance leases
23
1,753,901
114,783
-
0
-
0
Other borrowings
22
-
0
1,827,000
-
0
1,827,000
3,300,959
3,733,159
-
1,827,000
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
21
Creditors: amounts falling due after more than one year
(Continued)
- 29 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
827,058
1,446,932
-
-
22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,819,058
2,624,714
-
0
-
0
Other loans
-
0
2,217,000
-
0
2,217,000
1,819,058
4,841,714
-
2,217,000
Payable within one year
272,000
1,223,338
-
0
390,000
Payable after one year
1,547,058
3,618,376
-
0
1,827,000

Bank loans of £1,819,058 (2022 - £2,624,714) are secured by a cross Guarantee in favour of Barclays Bank PLC and Debenture in favour of Barclays Bank PLC from/granted by all group companies. The loan interest is base rate plus a standard variable rate and has no fixed repayment amounts.

23
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
615,400
92,119
-
0
-
0
In two to five years
2,116,514
129,151
-
0
-
0
2,731,914
221,270
-
-
Less: future finance charges
(462,794)
(14,368)
-
0
-
0
2,269,120
206,902
-
0
-
0

Obligations due under finance leases are secured on the assets to which the agreement relates.

ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 30 -
24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
1,042,105
678,780
21,073
-
Short term timing differences
(994)
-
-
-
1,041,111
678,780
21,073
-
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 November 2022
678,780
-
Charge to profit or loss
341,258
-
Liability at 31 October 2023
1,020,038
-
25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
79,051
54,089

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

There are no contribution amounts outstanding at year end.

26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 31 -
27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
158,797
102,445
-
-
Between two and five years
443,452
5,792
-
-
602,249
108,237
-
-
28
Related party transactions

Roydon Recycling UK Limited

During the year the group entered into transactions with Roydon Recycling UK Limited, a company of which Mr G Wallwork and Mrs S P Sumner were directors and shareholders of the parent company Roydon Recycling Holdings (UK) Limited.

 

During the year the group made sales of goods and services to this company of £254,057( 2022: £785,865) and purchased goods and services from this company totalling £1,802,369 (2022: £1,477,827).

 

A balance of £Nil (2022: owed to £2,707,158) was owed by Roydon Recycling UK Limited at year end.

 

Outstanding balances are payable on demand, interest free and not secured.

 

Roydon Bottle Recycling Limited

During the year the group entered into transactions with Roydon Bottle Recycling Limited.

 

During the year the group made sales of goods and services to Roydon Bottle Recycling Limited of £5,585,427 (2022: £9,212,506) and purchased goods and services from this company totalling £5,137,334 (2022: £3,113,398).

 

A balance of £23,592 (2022: due from £234,513) was owed to Roydon Bottle Recycling Limited at year end.

 

Outstanding balances are payable on demand, interest free and not secured.

29
Directors' transactions

Dividends totalling £378,000 (2022 - £612,000) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors Loan Account
-
-
1,754,475
(3,356,157)
(1,601,682)
-
1,754,475
(3,356,157)
(1,601,682)
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 32 -
30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,887,566
2,487,669
Adjustments for:
Share of results of associates and joint ventures
(9,209)
34,561
Taxation charged
389,929
826,211
Finance costs
653,776
242,595
Investment income
(2,498)
-
0
Loss on disposal of tangible fixed assets
415,881
-
Amortisation and impairment of intangible assets
305,507
305,507
Depreciation and impairment of tangible fixed assets
660,744
538,709
Movements in working capital:
Decrease/(increase) in stocks
251,108
(1,068,431)
Decrease/(increase) in debtors
3,255,284
(1,560,646)
(Decrease)/increase in creditors
(5,670,687)
3,111,994
Cash generated from operations
4,137,401
4,918,169
31
Analysis of changes in net debt - group
1 November 2022
Cash flows
New finance leases
31 October 2023
£
£
£
£
Cash at bank and in hand
2,096,324
(1,166,371)
-
929,953
Borrowings excluding overdrafts
(4,841,714)
3,022,656
-
(1,819,058)
Obligations under finance leases
(206,902)
266,422
(2,328,640)
(2,269,120)
(2,952,292)
2,122,707
(2,328,640)
(3,158,225)
2023-10-312022-11-01falseCCH SoftwareCCH Accounts Production 2024.100S P SumnerW SumnerG R Wallworkfalse113736022022-11-012023-10-31113736022023-10-3111373602bus:Director12022-11-012023-10-3111373602bus:Director22022-11-012023-10-3111373602bus:Director32022-11-012023-10-3111373602bus:RegisteredOffice2022-11-012023-10-3111373602bus:Consolidated2022-11-012023-10-3111373602bus:Consolidated2021-11-012022-10-31113736022021-11-012022-10-3111373602bus:Consolidated2023-10-3111373602core:Goodwillbus:Consolidated2023-10-3111373602core:Goodwillbus:Consolidated2022-10-3111373602bus:Consolidated2022-10-3111373602core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-10-3111373602core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-10-3111373602core:LeaseholdImprovementsbus:Consolidated2023-10-3111373602core:PlantMachinerybus:Consolidated2023-10-3111373602core:FurnitureFittingsbus:Consolidated2023-10-3111373602core:MotorVehiclesbus:Consolidated2023-10-3111373602core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-10-3111373602core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-10-3111373602core:LeaseholdImprovementsbus:Consolidated2022-10-3111373602core:PlantMachinerybus:Consolidated2022-10-3111373602core:FurnitureFittingsbus:Consolidated2022-10-3111373602core:MotorVehiclesbus:Consolidated2022-10-31113736022022-10-3111373602core:ShareCapitalbus:Consolidated2023-10-3111373602core:ShareCapitalbus:Consolidated2022-10-3111373602core:ShareCapital2023-10-3111373602core:ShareCapital2022-10-3111373602core:ShareCapitalbus:Consolidated2021-10-3111373602core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-10-3111373602core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-10-3111373602core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-10-3111373602core:ShareCapital2021-10-3111373602core:RetainedEarningsAccumulatedLosses2021-10-3111373602core:RetainedEarningsAccumulatedLosses2022-10-3111373602core:RetainedEarningsAccumulatedLosses2023-10-3111373602bus:Consolidated2021-10-3111373602core:Goodwill2022-11-012023-10-3111373602core:LandBuildingscore:OwnedOrFreeholdAssets2022-11-012023-10-3111373602core:LandBuildingscore:LongLeaseholdAssets2022-11-012023-10-3111373602core:LeaseholdImprovements2022-11-012023-10-3111373602core:PlantMachinery2022-11-012023-10-3111373602core:FurnitureFittings2022-11-012023-10-3111373602core:MotorVehicles2022-11-012023-10-3111373602core:UKTaxbus:Consolidated2022-11-012023-10-3111373602core:UKTaxbus:Consolidated2021-11-012022-10-3111373602bus:Consolidated12022-11-012023-10-3111373602bus:Consolidated12021-11-012022-10-3111373602core:Goodwillbus:Consolidated2022-10-3111373602core:Goodwillbus:Consolidated2022-11-012023-10-3111373602core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-10-3111373602core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-10-3111373602core:LeaseholdImprovementsbus:Consolidated2022-10-3111373602core:PlantMachinerybus:Consolidated2022-10-3111373602core:FurnitureFittingsbus:Consolidated2022-10-3111373602core:MotorVehiclesbus:Consolidated2022-10-3111373602bus:Consolidated2022-10-3111373602core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-11-012023-10-3111373602core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-11-012023-10-3111373602core:LeaseholdImprovementsbus:Consolidated2022-11-012023-10-3111373602core:PlantMachinerybus:Consolidated2022-11-012023-10-3111373602core:FurnitureFittingsbus:Consolidated2022-11-012023-10-3111373602core:MotorVehiclesbus:Consolidated2022-11-012023-10-3111373602core:PlantMachinery2023-10-3111373602core:PlantMachinery2022-10-3111373602core:CurrentFinancialInstruments2023-10-3111373602core:CurrentFinancialInstruments2022-10-3111373602core:CurrentFinancialInstrumentsbus:Consolidated2023-10-3111373602core:CurrentFinancialInstrumentsbus:Consolidated2022-10-3111373602core:Non-currentFinancialInstrumentsbus:Consolidated2023-10-3111373602core:Non-currentFinancialInstrumentsbus:Consolidated2022-10-3111373602core:Non-currentFinancialInstruments2023-10-3111373602core:Non-currentFinancialInstruments2022-10-3111373602core:WithinOneYearbus:Consolidated2023-10-3111373602core:WithinOneYearbus:Consolidated2022-10-3111373602core:CurrentFinancialInstrumentscore:WithinOneYear2023-10-3111373602core:CurrentFinancialInstrumentscore:WithinOneYear2022-10-3111373602core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-10-3111373602core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-10-3111373602core:Non-currentFinancialInstrumentscore:AfterOneYear2023-10-3111373602core:Non-currentFinancialInstrumentscore:AfterOneYear2022-10-3111373602core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-10-3111373602core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-10-3111373602core:WithinOneYear2023-10-3111373602core:WithinOneYear2022-10-3111373602core:BetweenTwoFiveYearsbus:Consolidated2023-10-3111373602core:BetweenTwoFiveYearsbus:Consolidated2022-10-3111373602core:BetweenTwoFiveYears2023-10-3111373602core:BetweenTwoFiveYears2022-10-3111373602bus:PrivateLimitedCompanyLtd2022-11-012023-10-3111373602bus:FRS1022022-11-012023-10-3111373602bus:Audited2022-11-012023-10-3111373602bus:ConsolidatedGroupCompanyAccounts2022-11-012023-10-3111373602bus:FullAccounts2022-11-012023-10-31xbrli:purexbrli:sharesiso4217:GBP