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Registered number: 12028555













Plasterboard Recycling Group Ltd

Annual report

30 June 2023




 
Plasterboard Recycling Group Ltd
 
 
Company information


Directors
I Bainbridge 
J D Simpson 




Registered number
12028555



Registered office
Hill Top Farm
Winston

Darlington

DL2 3RR




Independent auditor
UNW LLP
Chartered Accountants

Citygate

St James' Boulevard

Newcastle upon Tyne

NE1 4JE





 
Plasterboard Recycling Group Ltd
 

Contents



Page
Strategic report
 
 
1 - 2
Directors' report
 
 
3
Directors' responsibilities statement
 
 
4
Independent auditor's report to the members of Plasterboard Recycling Group Ltd
 
 
5 - 8
Statement of comprehensive income
 
 
9
Balance sheet
 
 
10
Statement of changes in equity
 
 
11
Notes to the financial statements
 
 
12 - 29


 
Plasterboard Recycling Group Ltd
 
 
Strategic report 
Year ended 30 June 2023

Introduction
 
The directors present their strategic report for the year ended 30 June 2023.
Principal activity
The principal activity of the company in the year was the recycling of plasterboard waste.  

Business review
 
The directors are pleased with the company’s performance during the financial year despite significant issues and uncertainties around the economy and market conditions. The company is well placed to withstand any future adverse effects.
The company monitors its financial performance through key performance indicators which are as follows:
        
 2023   2022
Turnover (£k)       £16,120  £5,154
Operating profit (£k)      £1,610  £249
Profit before tax (£k)      £1,408  £144
Operating profit %       10%   5%
Profit before tax %       9%   3%
The company also uses non-financial key performance indicators, including the landfill diversion rate, which for the financial year was over 99% by weight of plasterboard received.

Principal risks and uncertainties
 
The company has a risk management system in place to enable the board to identify, evaluate and manage potential risks and uncertainties that could have a material impact on the company’s performance.
The main risks under the period of review are summarised below:
General economic climate
The company can be affected by the state of the UK economy and the resulting impact it has on investment in infrastructure and building projects, which provide the source of the material for processing. 
Credit risk
The company trades with recognised and creditworthy parties. It is the company’s policy that customers who wish to trade on credit terms are subject to credit vetting procedures and payment terms and credit limits are strictly enforced.
The company’s strategy has been designed to limit these risks as far as possible.

Subsequent events and future developments
 
There have been no subsequent events to the date of this report which have materially affected the company.
The directors anticipate that the business environment will remain competitive but are confident that the company will continue to grow in the future.

1

 
Plasterboard Recycling Group Ltd
 

Strategic report (continued)
Year ended 30 June 2023


This report was approved by the board on 26 July 2024 and signed on its behalf by:



I Bainbridge
Director

2

 
Plasterboard Recycling Group Ltd
 

 
Directors' report
Year ended 30 June 2023

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

Results and dividends

The profit for the year, after taxation, amounted to £1,251,527 (2022: £65,619).

Directors

The directors who served during the year and up to the date of signing the financial statements were:

I Bainbridge 
J D Simpson (appointed 21 October 2022)

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Auditor

UNW LLP were appointed as auditor after the year end. Pursuant to section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and UNW LLP will therefore continue in office.

This report was approved by the board on 26 July 2024 and signed on its behalf by:
 





I Bainbridge
Director

3

 
Plasterboard Recycling Group Ltd
 
 
Directors' responsibilities statement
Year ended 30 June 2023

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

4

 
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Independent auditor's report to the members of Plasterboard Recycling Group Ltd

Opinion


We have audited the financial statements of Plasterboard Recycling Group Ltd ('the company') for the year ended 30 June 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) ('ISAs (UK)') and applicable law. Our responsibilities under those standards are further described in the '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 United Kingdom, including the Financial Reporting Council'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.


5

 
img3cee.png
 

 
Independent auditor's report to the members of Plasterboard Recycling Group Ltd (continued)

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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 4, 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.


6

 
img48a5.png
 

 
Independent auditor's report to the members of Plasterboard Recycling Group Ltd (continued)

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.


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 identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience and through discussions with the directors and other management (as required by Auditing Standards) and from inspection of the company's legal correspondence and we discussed with the directors and other management the policies and procedures in place regarding compliance with the laws and regulations. We communicated identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit.
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; health and safety, employment law, data protection, environmental law and certain aspects of company legislation, recognising the nature of the company's activities. Auditing Standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance material to the financial statements.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.


Other matters - prior period financial statements
 

In forming our opinion on the financial statements, which is unmodified, we note that the prior year financial statements were not audited. Consequently, International Standards on Auditing (UK and Ireland) require that the auditor state that corresponding figures contained within these financial statements are unaudited.


7

 
img03c9.png
 

 
Independent auditor's report to the members of Plasterboard Recycling Group Ltd (continued)

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 2006Our 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.







Martin Cross PhD BSc FCA (Senior Statutory Auditor)
for and on behalf of UNW LLP, Statutory Auditor
Chartered Accountants
Newcastle upon Tyne

26 July 2024
8

 
Plasterboard Recycling Group Ltd
 
 
Statement of comprehensive income
Year ended 30 June 2023

2023
Unaudited 2022
As restated
Note
£
£

Profit and loss account
  

Turnover
 6 
16,209,984
5,153,970

Cost of sales
  
(11,336,250)
(2,966,156)

Gross profit
  
4,873,734
2,187,814

Administrative expenses
  
(3,293,323)
(1,970,610)

Other operating income
 7 
29,533
32,000

Operating profit
 8 
1,609,944
249,204

Interest receivable
 12 
-
131

Interest payable and similar expenses
 13 
(202,458)
(105,185)

Profit before tax
  
1,407,486
144,150

Taxation
 14 
(155,959)
(78,531)

Profit for the financial year
  
1,251,527
65,619

There was no other comprehensive income for 2023 (2022£nil).

The notes on pages 12 to 29 form part of these financial statements.

9

 
Plasterboard Recycling Group Ltd


Balance sheet
At 30 June 2023

2023
Unaudited 2022
Note
£
£

Fixed assets
  

Intangible assets
 15 
4,567,764
5,132,848

Tangible assets
 16 
6,650,253
3,201,756

Investments
 17 
945,014
945,014

  
12,163,031
9,279,618

Current assets
  

Stocks
 18 
14,188
23,463

Debtors
 19 
4,046,140
4,052,046

Cash at bank and in hand
  
107,410
695,067

  
4,167,738
4,770,576

Creditors: amounts falling due within one year
 20 
(8,054,765)
(9,534,609)

Net current liabilities
  
 
 
(3,887,027)
 
 
(4,764,033)

Total assets less current liabilities
  
8,276,004
4,515,585

Creditors: amounts falling due after more than one year
 21 
(565,961)
(2,213,028)

Provisions for liabilities
  

Deferred taxation
 23 
(599,301)
(443,342)

Net assets
  
7,110,742
1,859,215


Capital and reserves
  

Called up share capital 
 24 
119
100

Share premium account
 25 
5,287,316
1,287,335

Profit and loss account
 25 
1,823,307
571,780

  
7,110,742
1,859,215


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 July 2024.


I Bainbridge
Director

Company registered number: 12028555
The notes on pages 12 to 29 form part of these financial statements.

10

 
Plasterboard Recycling Group Ltd
 

Statement of changes in equity
Year ended 30 June 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 July 2021 (unaudited)
100
1,287,335
506,161
1,793,596



Profit for the year
-
-
65,619
65,619



At 1 July 2022 (unaudited)
100
1,287,335
571,780
1,859,215



Profit for the year
-
-
1,251,527
1,251,527

Shares issued during the year
19
3,999,981
-
4,000,000


At 30 June 2023
119
5,287,316
1,823,307
7,110,742


The notes on pages 12 to 29 form part of these financial statements.

11

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

1.


General information

Plasterboard Recycling Group Ltd (‘the company’) and its subsidiaries (together ‘the group’) are engaged in the recycling of plasterboard.
The company is a private company limited by shares, incorporated in the United Kingdom and registered in England and Wales. The address of its registered office is given in the company information page of this annual report.

2.


Statement of compliance

The financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland’ (‘FRS 102’), and the Companies Act 2006.

3.


Prior year restatement

There was a prior year restatement from administrative expenses to cost of sales for £138,567 of costs. Management considers this classification to be a better representation of the costs incurred. There was no effect on the profit or the net asset position of the company at 30 June 2022 and the only impacted statement is the statement of comprehensive income.

4.Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

 
4.1

Basis of preparation of financial statements

These financial statements are the company's separate financial statements. The company is exempt by virtue of Section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the basis that it is itself a subsidiary undertaking and is included in the consolidated financial statements of its parent undertaking, EVB Holdings Ltd, which are publicly available.
These financial statements are prepared on a going concern basis and under the historical cost convention. They are presented in pounds sterling and rounded to the nearest pound.
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 5.

  
4.2

Reduced disclosures

FRS 102 allows a qualifying entity certain disclosure exemptions. The company meets the definition of a qualifying entity and has taken advantage of the exemptions relating to the disclosure of key management personnel compensation and the preparation of a cash flow statement. The consolidated financial statements of EVB Holdings Ltd include the equivalent key management personnel compensation disclosures and a consolidated cash flow statement.

12

 
Plasterboard Recycling Group Ltd
 

 
Notes to the financial statements
Year ended 30 June 2023

4.Accounting policies (continued)

 
4.3

Going concern

The company meets its working capital requirements through its operating cash flows.
The directors have prepared financial forecasts which, having regard for reasonably possible changes in trading performance as a result of the current economic environment, indicate that the company will maintain sufficient financial headroom to enable it to continue meeting its liabilities as they fall due in the normal course of business for at least the next twelve months following approval of these financial statements.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

 
4.4

Revenue

Turnover
Turnover comprises revenue recognised in respect of goods and services supplied during the year, net of discounts and excluding Value Added Tax.
Turnover is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company, and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Government grants
Government grants are recognised on the accruals basis. Grants relating to assets are recognised in the profit and loss account over the expected life of the asset. Other grants are recognised in the profit and loss account over the period in which the related costs are recognised. Grant monies received but deferred to future periods are included on the balance sheet within creditors.
Interest income
Interest income is recognised on an accruals basis, using the effective interest method.

 
4.5

Foreign currency translation

The company’s functional currency is the pound sterling.
Transactions and balances 
Transactions in foreign currencies are translated into sterling using the spot exchange rates at the dates of the transactions. At each period end, foreign currency monetary assets and liabilities are translated using the closing rate. Foreign exchange gains and losses are recognised in the profit and loss account.

13

 
Plasterboard Recycling Group Ltd
 

 
Notes to the financial statements
Year ended 30 June 2023

4.Accounting policies (continued)

 
4.6

Employee benefits

Short-term benefits
Short-term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.
Defined contribution pension plan
The company operates a defined contribution pension plan for its employees. Contributions are recognised as an expense when they fall due. Amounts due but not yet paid are included within creditors on the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 
4.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
4.8

Taxation

The taxation expense for the year comprises current and deferred tax and is recognised in the profit and loss account.
Current tax is the amount of income tax payable in respect of the taxable profit for the current or past reporting periods. It is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences arise from the inclusion of transactions and events in the financial statements in periods different from those in which they are assessed for tax.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.

 
4.9

Intangible assets

Goodwill
Goodwill represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the group’s interest in the identifiable net assets, liabilities and contingent liabilities acquired.
Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the profit and loss account. No reversals of impairment are recognised.

14

 
Plasterboard Recycling Group Ltd
 

 
Notes to the financial statements
Year ended 30 June 2023

4.Accounting policies (continued)

 
4.10

Tangible fixed assets

Tangible fixed assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their estimated useful lives as follows:

Long-term leasehold property
-
5%
straight line
Plant and machinery
-
25%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
25%
reducing balance
Office equipment
-
25%
reducing balance

Asset residual values and useful lives are reviewed at the end of each reporting period, and adjusted if appropriate. The effect of any change is accounted for prospectively.

 
4.11

Leased assets

Assets held under finance leases and hire purchase contracts, which confer rights and obligations on the company similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease term and their useful lives. The capital elements of future lease obligations are recorded as liabilities, and the interest elements are charged to the profit and loss account over the period of the leases to produce a constant periodic rate of charge on the remaining balance of the liability.
Leases that do not confer rights and obligations approximating to ownership are classified as operating leases. Rental payments under operating leases are charged to the profit and loss account on a straight-line basis over the lease term, even if payments are not made on such a basis.

 
4.12

Impairment of non-financial assets

At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset (or asset’s cash generating unit (‘CGU’)) may be impaired. If there is such an indication the recoverable amount of the asset (or asset’s CGU) is compared to the carrying amount of the asset (or asset’s CGU).
The recoverable amount of the asset (or asset’s CGU) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset’s (or asset’s CGU’s) continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the asset.
If the recoverable amount of the asset (or asset’s CGU) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the profit and loss account unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in profit or loss.
 
15

 
Plasterboard Recycling Group Ltd
 

 
Notes to the financial statements
Year ended 30 June 2023

4.Accounting policies (continued)


4.12
Impairment of non-financial assets (continued)

If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset’s CGU) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the profit and loss account.
Goodwill is allocated on acquisition to the cash generating unit expected to benefit from the synergies of the combination. Goodwill is included in the carrying value of cash generating units for impairment testing.

 
4.13

Fixed asset investments

Investment in subsidiaries
Investments in subsidiary undertakings are measured at cost less accumulated impairment losses.

 
4.14

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is determined using the first-in, first-out (FIFO) method and includes the purchase price (including taxes and duties) and transport and handling costs directly attributable to bringing the stock to its present location.
Provision is made as necessary for damaged, obsolete or slow-moving items.

 
4.15

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, cash and bank balances, bank loans and loans to or from related parties, including fellow group companies.
All such instruments are due within one year and are measured, initially and subsequently, at the transaction price.
At the end of each reporting period, financial assets are assessed for impairment, and their carrying
value reduced if necessary. Any impairment charge is recognised in the profit and loss account.

16

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

5.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including the expectations of future events that are believed to be reasonable under the circumstances.
Significant judgments in applying the entity's accounting policies
No significant judgments were required in the process of applying the company's accounting policies for these financial statements.
Key sources of estimation uncertainty
Useful lives of fixed assets - the annual depreciation and amortisation charges for fixed assets is sensitive to changes in the estimated useful lives and the residual values of the assets, which are re-assessed annually and amended to reflect current estimates. There have been no changes in the estimation bases during the current reporting period.  See notes 15 and 16 for the carrying amount of fixed assets and note 4.10 for the estimated useful lives of each class of asset.
Other sources of estimation uncertainty
Other estimates included within these financial statements include asset impairments, such as provisions against debtors.  None of the other estimates made in the preparation of these financial statements are considered to carry significant estimation uncertainty, nor to bear significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.


6.


Turnover

The whole of the turnover is attributable to the principal activity of the business.

All turnover arose within the United Kingdom.


7.


Other operating income

2023
Unaudited 2022
£
£

Government grants receivable
8,000
32,000

Insurance claims receivable
21,533
-

29,533
32,000


17

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

8.


Operating profit

The operating profit is stated after charging:

2023
Unaudited 2022
£
£

Depreciation of tangible fixed assets
681,585
392,312

Amortisation of intangible fixed assets
565,084
517,994

Exchange differences
12,330
(12)

Operating lease rentals
397,241
397,241


9.


Auditor's remuneration

During the year, the company obtained the following services from the company's auditor:


2023
Unaudited 2022
£
£

Fees payable to the company's auditor for the audit of the company's financial statements

20,000
-

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

18

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

10.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
Unaudited 2022
£
£

Wages and salaries
2,170,871
676,851

Social security costs
235,141
80,633

Cost of defined contribution scheme
93,920
32,742

2,499,932
790,226


The average monthly number of employees, including the directors, during the year was as follows:


        2023
   Unaudited 2022
            No.
            No.







Administration
4
2



Management
2
2



Production
44
15

50
19


11.


Directors' remuneration

2023
Unaudited 2022
£
£

Directors' emoluments
12,500
-



12.


Interest receivable

2023
Unaudited 2022
£
£


Other interest receivable
-
131

19

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

13.


Interest payable and similar expenses

2023
Unaudited 2022
£
£


Bank interest payable
47,736
192

Other loan interest payable
3,258
-

Loans from group undertakings
43,209
74,721

Finance leases and hire purchase contracts
54,533
25,019

Other interest payable
53,722
5,253

202,458
105,185


14.


Taxation


2023
Unaudited 2022
£
£

Corporation tax


Adjustment in respect of previous periods
-
(61,167)


Deferred tax


Origination and reversal of timing differences
284,002
106,591

Changes to tax rates
62,412
33,659

Adjustments in respect of previous periods
(190,455)
(552)

Total deferred tax
155,959
139,698


Taxation on profit
155,959
78,531
20

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023
 
14.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 20.5% (2022:19%). The differences are explained below:

2023
Unaudited 2022
£
£


Profit before tax
1,407,486
144,150


Profit multiplied by standard rate of corporation tax in the UK of 20.5% (2022: 19%)
288,535
27,389

Effects of:


Expenses not deductible
150,217
137,244

Non-taxable income
-
(12,160)

Benefits of super-deduction
(154,750)
(49,404)

R&D benefit
-
(53,611)

Gains/rollover relief etc
-
(87,266)

Adjustments in respect of previous periods
(190,455)
(61,719)

Tax rate changes
62,412
33,659

Deferred tax not provided/recognised
-
144,399

Total tax charge for the year
155,959
78,531


Factors that may affect future tax charges

In the Spring Budget 2021 it was announced that the main UK corporation tax rate would increase from 19% to 25% from 1 April 2023. This rate increase was substantively enacted as part of the Finance Act 2021 on 24 May 2021 and has now taken effect. Accordingly, the company’s profits are taxed at an effective rate of 20.5% for the year ended 30 June 2023 (19% for year ended 30 June 2022), and future profits will be taxed at a rate of 25%. Deferred tax at the balance sheet date has been calculated at 25% (2022: 25%), as this was the tax rate substantively enacted at the year end.

21

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

15.


Intangible assets




Goodwill

£



Cost


At 1 July 2022 (unaudited)
5,650,842



At 30 June 2023

5,650,842



Amortisation


At 1 July 2022 (unaudited)
517,994


Charge for the year
565,084



At 30 June 2023

1,083,078



Net book value



At 30 June 2023
4,567,764



At 30 June 2022 (unaudited)
5,132,848



22

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

16.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£
£



Cost


At 1 July 2022 (unaudited)
1,229,689
2,851,816
17,270
24,334
50,235
4,173,344


Additions
100,325
3,745,462
274,696
10,499
9,087
4,140,069


Disposals
-
(12,750)
(11,426)
-
-
(24,176)



At 30 June 2023

1,330,014
6,584,528
280,540
34,833
59,322
8,289,237



Depreciation


At 1 July 2022 (unaudited)
173,268
775,054
9,498
2,808
10,960
971,588


Charge for the year
62,599
549,522
52,956
5,893
10,615
681,585


Disposals
-
(7,798)
(6,391)
-
-
(14,189)



At 30 June 2023

235,867
1,316,778
56,063
8,701
21,575
1,638,984



Net book value



At 30 June 2023
1,094,147
5,267,750
224,477
26,132
37,747
6,650,253



At 30 June 2022 (unaudited)
1,056,421
2,076,762
7,772
21,526
39,275
3,201,756

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
Unaudited 2022
£
£



Plant and machinery
1,071,336
1,456,551

Motor vehicles
196,427
-

23

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

17.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 July 2022 (unaudited)
945,014



At 30 June 2023
945,014


Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Class of shares

Holding

Plasterboard Recycling Solutions Limited
Hill Top Farm
Winston
Darlington
DL2 3RR
Ordinary
100%
Recycool (Plasterboard) Limited
Hill Top Farm
Winston
Darlington
DL2 3RR
Ordinary
100%


18.


Stocks

2023
Unaudited 2022
£
£

Raw materials and consumables
14,188
23,463


The carrying value of stocks are stated net of impairment losses totalling £nil (2022: £nil).

24

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

19.


Debtors

2023
Unaudited 2022
£
£


Trade debtors
3,297,916
2,331,817

Amounts owed by group undertakings
55,450
13

Amounts owed by joint ventures and associated undertakings
9,821
6,752

Other debtors
62,911
1,386,294

Prepayments and accrued income
620,042
327,170

4,046,140
4,052,046


Amounts owed by group undertakings are unsecured, repayable on demand and no interest is charged.
Trade debtors are stated after provisions for impairment totalling £20,670 (2022: £70,201). The bad debt charge, included within administrative expenses, totalled £23,866 (2022: £27,265).


20.


Creditors: amounts falling due within one year

2023
Unaudited 2022
£
£

Short term funding
563,428
597,300

Bank loans
2,655,000
-

Other loans
50,451
-

Trade creditors
1,425,915
1,163,395

Amounts owed to group undertakings
894,821
5,687,121

Other taxation and social security
315,574
50,260

Obligations under finance lease and hire purchase contracts (note 22)
442,922
409,910

Other creditors
1,510,003
1,553,007

Accruals and deferred income
196,651
73,616

8,054,765
9,534,609


Amounts owed to group undertakings are unsecured and repayable on demand. Interest is charged at 0% or 2.0%/2.5% over base rate.

25

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

21.


Creditors: amounts falling due after more than one year

2023
Unaudited 2022
£
£

Obligations under finance leases and hire purchase contracts (note 22)
565,961
713,028

Other creditors
-
1,500,000

565,961
2,213,028



22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
Unaudited 2022
£
£


Within one year
480,810
441,096

Between 1-5 years
604,563
738,807

Less future interest charges
(76,490)
(56,963)

1,008,883
1,122,940


23.


Deferred taxation




2023


£






At beginning of year (unaudited)
443,342


Charged to profit or loss
346,414


Adjustment in respect of previous periods
(190,455)



At end of year
599,301

26

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023
 
23.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2023
Unaudited 2022
£
£


Fixed asset timing differences
1,371,824
496,012

Short term timing differences - trading
(2,320)
(2,389)

Losses
(770,203)
(50,281)

599,301
443,342


24.


Share capital

2023
Unaudited 2022
£
£
Allotted, called up and fully paid



10,000 (2022: 100) ordinary shares of £0.01 (2022: £1.00) each
100
100
1,764 (2022: nil) A ordinary shares of £0.01 each
18
-
100 (2022: nil) preference shares of £0.01 each
1
-

119

100


During the year, the 100 ordinary shares at £1.00 each were subdivided into 10,000 ordinary shares at £0.01 each.
During the year 1,764 A ordinary shares of £0.01 each were issued for a total consideration of £1,000,000 and 100 preference shares of £0.01 each were issued for a total consideration of £3,000,000.
Ordinary and A ordinary shares have full voting, dividend and same right to a return of capital rights. Preference shares have no voting rights, rights to discretionary dividend and on exit event, exit proceeds payable of £3,000,000 less any preferred dividend paid since preference share adoption date.


25.


Reserves

Share premium account

The share premium account represents the premium arising on the issue of shares classified as equity, net of issue costs.

Profit and loss account

The profit and loss account represents cumulative profits and losses, net of cumulative dividends paid and other adjustments.

27

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

26.


Capital commitments

At 30 June 2023 the company had capital commitments of £1,006,022 for new plant and machinery.


27.


Commitments under operating leases

At 30 June 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
Unaudited 2022
£
£


Not later than 1 year
476,288
476,288

Later than 1 year and not later than 5 years
1,845,978
1,866,266

Later than 5 years
6,252,462
6,708,462

8,574,728
9,051,016


28.


Related party transactions

During the year, the company used a loan account to record amounts due to and from companies in the group. At the year end the following balances were owed to the company. The loans are unsecured, interest free, apart from EVB Holdings Limited, which bears interest at 2% above base rate, and no fixed terms of repayment have been agreed. 
At the year end, the balance owed by the company to EVB Holdings Limited was £72,154 (2022 - £3,486,268). In the year, the company made payments of £3,488,988 to and received £74,874 from EVB Holdings Limited.
At the year end, the balance owed by the company to A.R.B Estates Limited was £Nil (2022 - £2,659). In the year, there was a reduction in the creditor relating to A.R.B Estates Limited of £2,659.
During the year, an intercompany account was operated between the company and Plasterboard Recycling Solutions Limited to record normal transactions. At the year end, the balance owed by the company to Plasterboard Recycling Solutions Limited was £822,654 (2022 - £866,578). In the year, there was a reduction in the creditor relating to Plasterboard Recycling Solutions Limited by £43,924.
During the year, an intercompany account was operated between the company and Recycool (Plasterboard) Limited to record normal transactions. At the year end, the balance owed to the company by Recycool (Plasterboard) Limited was £55,450 (2022 - £Nil). At the year end, the balance owed by the company to Recycool (Plasterboard) Limited was £Nil (2022 - £1,331,616). In the year, there was a reduction in the creditor relating to Recyool (Plasterboard) Limited due  to nominal payments of £2,001,991 and  there was an increase in the debtor relating to Reycool (Plasterboard) Limited due to nominal receipts of £614,925 to the company.
At the year end, the balance owed to the company by Gips Recycling Benelux BV was £9,821 (2022 - £6,752). In the year there was a reduction in the debtor relating to Gips Recycling Benelux BV of £3,069.

28

 
Plasterboard Recycling Group Ltd
 
 

Notes to the financial statements
Year ended 30 June 2023

29.


Controlling party

Plasterboard Recycling Group Limited is a 100% owned subsidiary of EVB Holdings Ltd. The smallest group and largest group preparing consolidated financial statements is EVB Holdings Ltd. The consolidated financial statements are publicly available from the parent registered address at Hill Top Farm, Winston, Darlington, County Durham, DL2 3RR.
The company considers I Bainbridge to be the ultimate controlling party.

29