Company Registration No. 03852634 (England and Wales)
ROYDON RESOURCE RECOVERY LTD
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 RESOURCE RECOVERY LTD
COMPANY INFORMATION
Directors
Mr W Sumner
Mr GR Wallwork
Mrs SP Sumner
Secretary
Mrs SP Sumner
Company number
03852634
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 RESOURCE RECOVERY LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 21
ROYDON RESOURCE RECOVERY LTD
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.

Key performance indicators

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

2023             2022

Turnover                £16,860,782        £22,347,482

Gross Profit             £3,604,101         £2,917,364

Gross Profit %             21%         13%

Operating Profit             £1,092,130         £738,196

Profit/(Loss) Before tax         £731,745         £666,127

Net Assets             £4,244,976         £3,932,857

ROYDON RESOURCE RECOVERY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

On behalf of the board

Mr W Sumner
Director
14 June 2024
ROYDON RESOURCE RECOVERY LTD
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 company continued to be that of plastic waste reclamation.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr W Sumner
Mr GR Wallwork
Mrs SP Sumner
Auditor

PM+M Solutions for Business LLP were appointed as auditor to the company 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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

ROYDON RESOURCE RECOVERY LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
On behalf of the board
Mr W Sumner
Mrs SP Sumner
Director
Director
14 June 2024
ROYDON RESOURCE RECOVERY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROYDON RESOURCE RECOVERY LTD
- 5 -
Opinion

We have audited the financial statements of Roydon Resource Recovery Ltd (the 'company') for the year ended 31 October 2023 which comprise the statement of income and retained earnings, the balance sheet 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The 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 RESOURCE RECOVERY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYDON RESOURCE RECOVERY LTD
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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 RESOURCE RECOVERY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYDON RESOURCE RECOVERY LTD
- 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 Company'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 Company 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 RESOURCE RECOVERY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYDON RESOURCE RECOVERY LTD
- 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 RESOURCE RECOVERY LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
16,860,782
22,347,482
Cost of sales
(13,256,681)
(19,430,118)
Gross profit
3,604,101
2,917,364
Administrative expenses
(3,302,437)
(2,578,779)
Other operating income
790,466
399,611
Operating profit
4
1,092,130
738,196
Interest receivable and similar income
6
415
-
0
Interest payable and similar expenses
7
(360,800)
(72,069)
Profit before taxation
731,745
666,127
Tax on profit
8
(419,626)
(221,401)
Profit for the financial year
312,119
444,726
Retained earnings brought forward
3,932,856
3,488,130
Retained earnings carried forward
4,244,975
3,932,856

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ROYDON RESOURCE RECOVERY LTD
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
3,749,753
2,058,121
Current assets
Stocks
10
1,459,913
1,475,385
Debtors
11
6,357,582
6,555,491
Cash at bank and in hand
369,697
339,847
8,187,192
8,370,723
Creditors: amounts falling due within one year
12
(5,334,320)
(6,030,585)
Net current assets
2,852,872
2,340,138
Total assets less current liabilities
6,602,625
4,398,259
Creditors: amounts falling due after more than one year
13
(1,541,319)
(68,666)
Provisions for liabilities
Deferred tax liability
15
816,330
396,736
(816,330)
(396,736)
Net assets
4,244,976
3,932,857
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
4,244,975
3,932,856
Total equity
4,244,976
3,932,857

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

The financial statements were approved by the board of directors and authorised for issue on 14 June 2024 and are signed on its behalf by:
Mr W Sumner
Mrs SP Sumner
Director
Director
Company registration number 03852634 (England and Wales)
ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
1
Accounting policies
Company information

Roydon Resource Recovery Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Units 1-3, Junction Eco Park, Rake Lane, Swinton, M27 8LU.

1.1
Accounting convention

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

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

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

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

 

 

The financial statements of the company are consolidated in the financial statements of Roydon Holdings Limited. These consolidated financial statements are available from its registered office, Units 1-3 Junction Eco Park, Rake Lane, Swinton, United Kingdom, M27 8LU.

 

1.2
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.

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

1.3
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:

Leasehold land and buildings
Straight line over the term of the lease
Plant and equipment
5% - 50% straight line
Fixtures and fittings
33.33% straight line
ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 12 -

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

1.4
Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis together with attributable overheads based on normal level of activity, after making due allowance for production losses.

 

Net realisable value is based on estimated selling price less further costs to completion and disposal.

1.5
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.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. 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 company after deducting all of its liabilities.

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.

1.7
Equity instruments

Equity instruments issued by the company 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 company.

1.8
Taxation

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

ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 13 -
Current tax

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

Deferred tax

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

 

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 when the company has 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.

1.9
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.

1.10
Retirement benefits

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

1.11
Leases

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

 

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

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

ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -
1.12
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.

1.13
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
Judgements and key sources of estimation uncertainty

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

 

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

 

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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Plastic waste reclamation
16,860,782
22,347,482
2023
2022
£
£
Turnover analysed by geographical market
UK
16,447,182
22,106,862
Rest of the world
413,600
240,620
16,860,782
22,347,482
ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
3
Turnover and other revenue
(Continued)
- 15 -
2023
2022
£
£
Other revenue
Interest income
415
-
Grants received
-
0
76,438
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(11,973)
3,800
Government grants
-
0
(76,438)
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
6,000
Depreciation of owned tangible fixed assets
225,486
243,286
Depreciation of tangible fixed assets held under finance leases
74,215
47,529
Loss on disposal of tangible fixed assets
415,881
-
0
Operating lease charges
392,581
424,636
5
Employees

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

2023
2022
Number
Number
Production
35
34
Administration
4
6
Directors
3
3
Total
42
43

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,442,636
1,470,174
Pension costs
27,012
24,218
1,469,648
1,494,392
ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 16 -
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
415
-
0
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
1,341
327
Interest on invoice finance arrangements
71,256
51,335
Interest on finance leases and hire purchase contracts
128,264
20,407
Other interest
159,939
-
0
360,800
72,069
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
156,410
Adjustments in respect of prior periods
32
-
0
Total current tax
32
156,410
Deferred tax
Origination and reversal of timing differences
419,594
64,991
Total tax charge
419,626
221,401
ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
8
Taxation
(Continued)
- 17 -

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
731,745
666,127
Expected tax charge based on the standard rate of corporation tax in the UK of 22.52% (2022: 19.00%)
164,789
126,564
Tax effect of expenses that are not deductible in determining taxable profit
29,837
-
0
Adjustments in respect of prior years
32
-
0
Effect of change in corporation tax rate
41,660
-
0
Group relief
246,320
-
0
Permanent capital allowances in excess of depreciation
(63,218)
29,846
Other permanent differences
206
64,991
Taxation charge for the year
419,626
221,401

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

9
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 November 2022
275,009
4,934,810
86,884
5,296,703
Additions
-
0
2,383,827
23,387
2,407,214
Disposals
-
0
(941,196)
(1,021)
(942,217)
At 31 October 2023
275,009
6,377,441
109,250
6,761,700
Depreciation and impairment
At 1 November 2022
274,699
2,878,020
85,863
3,238,582
Depreciation charged in the year
310
291,545
7,846
299,701
Eliminated in respect of disposals
-
0
(526,336)
-
0
(526,336)
At 31 October 2023
275,009
2,643,229
93,709
3,011,947
Carrying amount
At 31 October 2023
-
0
3,734,212
15,541
3,749,753
At 31 October 2022
310
2,056,790
1,021
2,058,121
ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Tangible fixed assets
(Continued)
- 18 -

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

2023
2022
£
£
Plant and equipment
2,468,366
221,389
10
Stocks
2023
2022
£
£
Raw materials and consumables
1,459,913
1,475,385
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
976,589
1,414,983
Corporation tax recoverable
127,375
-
0
Amounts owed by group undertakings
3,213,024
3,073,552
Other debtors
1,764,719
1,822,740
Prepayments and accrued income
275,875
244,216
6,357,582
6,555,491

Amounts owed by group undertakings are interest free and repayable on demand.

12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
14
423,468
38,400
Trade creditors
2,279,298
3,579,175
Corporation tax
-
0
156,410
Other taxation and social security
217,148
29,518
Other creditors
945,526
1,189,038
Accruals and deferred income
1,468,880
1,038,044
5,334,320
6,030,585

The amounts owed to group undertakings are interest free and repayable on demand.

 

The amounts advanced under invoice discounting £473,969 (2022: £995,059) are secured by a cross guarantee and debenture given by all group companies.

 

ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
14
1,541,319
68,666
14
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
521,276
38,400
In two to five years
1,904,198
78,428
2,425,474
116,828
Less: future finance charges
(460,687)
(9,762)
1,964,787
107,066

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

15
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
816,823
396,736
Short term timing differences
(493)
-
816,330
396,736
2023
Movements in the year:
£
Liability at 1 November 2022
396,736
Charge to profit or loss
419,594
Liability at 31 October 2023
816,330
ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
27,012
24,218

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.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
18
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
403,637
3,085
Between two and five years
315,773
5,792
719,410
8,877
ROYDON RESOURCE RECOVERY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
19
Related party transactions

Roydon Recycling UK Limited

During the year the company 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 company made sales of goods and services to this company of £801,976 (2022: £700,903) and purchased goods and services from this company totalling £1,123,800 (2022: £1,395,644).

 

A net balance of £153,458 was owed by (2022: owed to £323,135) 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 company entered into transactions with Roydon Bottle Recycling Limited, a company of which Mr G Wallwork and Mr W Sumner are directors and shareholders, and of which Mrs S Sumner is a director.

 

During the year the company made sales of goods and services to Roydon Bottle Recycling Limited of £4,667,812 (2022: £9,195,954) and purchased goods and services from this company totalling £68,109 (2022: £176,367).

 

A balance of £1,390,171 was owed from (2022: owed from £1,792,900) Roydon Bottle Recycling Limited at year end.

 

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

20
Ultimate controlling party

The parent of Roydon Resource Recovery Limited is Roydon Group PLC, a company registered and incorporated in England and Wales. The financial statements can be obtained from the registered office.

The smallest and largest group into which the entity is consolidated is Roydon Holdings Limited, a company registered and incorporated in England and Wales. This being the ultimate controlling party. The financial statements can be obtained from the registered office.

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