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Registration number: 07428170

Japanese Knotweed Limited

Unaudited Filleted Financial Statements

for the Year Ended 30 November 2023

 

Japanese Knotweed Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Statement of Changes in Equity

4

Notes to the Unaudited Financial Statements

5 to 13

 

Japanese Knotweed Limited

Company Information

Directors

S N Wreford

J D Stangroom

B Lindley

Registered office

Unit A7 The Arena
9 Nimrod Way
Ferndown
Wimborne
Dorset
BH21 7UH

Accountants

Elysium
Chartered Accountants
Unit A7 The Arena
9 Nimrod Way
Wimborne
Dorset
BH21 7UH

 

Japanese Knotweed Limited

(Registration number: 07428170)
Balance Sheet as at 30 November 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

63,482

84,156

Tangible assets

5

248,082

241,614

 

311,564

325,770

Current assets

 

Stocks

6

23,026

21,111

Debtors

7

2,332,334

2,373,695

Cash at bank and in hand

 

201,938

166,189

 

2,557,298

2,560,995

Creditors: Amounts falling due within one year

8

(1,362,831)

(1,312,716)

Net current assets

 

1,194,467

1,248,279

Total assets less current liabilities

 

1,506,031

1,574,049

Creditors: Amounts falling due after more than one year

8

(1,057,295)

(1,227,106)

Provisions for liabilities

(42,145)

(23,755)

Net assets

 

406,591

323,188

Capital and reserves

 

Called up share capital

9

80

80

Capital redemption reserve

20

20

Retained earnings

406,491

323,088

Shareholders' funds

 

406,591

323,188

 

Japanese Knotweed Limited

(Registration number: 07428170)
Balance Sheet as at 30 November 2023

For the financial year ending 30 November 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 1 August 2024 and signed on its behalf by:
 

.........................................
J D Stangroom
Director

.........................................
B Lindley
Director

 

Japanese Knotweed Limited

Statement of Changes in Equity for the Year Ended 30 November 2023

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 December 2022

80

20

323,088

323,188

Profit for the year

-

-

193,670

193,670

Dividends

-

-

(110,267)

(110,267)

At 30 November 2023

80

20

406,491

406,591

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 December 2021

80

20

377,227

377,327

Profit for the year

-

-

56,921

56,921

Dividends

-

-

(111,060)

(111,060)

At 30 November 2022

80

20

323,088

323,188

 

Japanese Knotweed Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Unit A7 The Arena
9 Nimrod Way
Ferndown
Wimborne
Dorset
BH21 7UH

The principal place of business is:
13A Westlink
Belbins Business Park
Cupernham Lane
Romsey
Hampshire
SO51 7JF

These financial statements were authorised for issue by the Board on 1 August 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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 years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Japanese Knotweed Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

Government grants

Grants of a revenue nature are recognised in income in the period the related costs are incurred and for which the grant is intended to compensate.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant & machinery

25% on reducing balance

Fixtures & fittings

25% on reducing balance

Motor vehicles

Straight line over 5 years

Office equipment

Straight line over 3 years

Buildings

Straight line over 50 years

 

Japanese Knotweed Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences (including software) and customer-related intangible assets (including software and website development costs) that are generated internally are recognised to the extent that the costs were incurred at the development stage. Costs incurred at the reasearch stage are expensed in the period the costs were incurred.

Where development stage costs are recognised as an intangible asset, the criteria for recognition including the intention and ability to use the intangible asset within the business and the ability to measure reliably the expenditure attributable to the intangible asset during its development has been met.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life . Trade marks are held at their nominal value

Asset class

Amortisation method and rate

Trade marks

Nil

Website and software development costs

Straight line over 5 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Japanese Knotweed Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Japanese Knotweed Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 50 (2022 - 52).

4

Intangible assets

Trademarks, patents and licenses
 £

Internally generated software development costs
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 December 2022

100

94,282

9,084

103,466

At 30 November 2023

100

94,282

9,084

103,466

Amortisation

At 1 December 2022

-

18,856

454

19,310

Amortisation charge

-

18,857

1,817

20,674

At 30 November 2023

-

37,713

2,271

39,984

Carrying amount

At 30 November 2023

100

56,569

6,813

63,482

At 30 November 2022

100

75,426

8,630

84,156

Internally generated software development costs of £94,282 and the external costs of £9,084 disclosed under Other intangible assets comprise the development and launch of the company's new website and software system.

 

Japanese Knotweed Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

5

Tangible assets

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 December 2022

27,051

124,139

431,453

582,643

Additions

2,807

2,629

60,995

66,431

Disposals

-

-

(80,101)

(80,101)

At 30 November 2023

29,858

126,768

412,347

568,973

Depreciation

At 1 December 2022

18,551

105,900

216,578

341,029

Charge for the year

2,325

9,118

43,038

54,481

Eliminated on disposal

-

-

(74,619)

(74,619)

At 30 November 2023

20,876

115,018

184,997

320,891

Carrying amount

At 30 November 2023

8,982

11,750

227,350

248,082

At 30 November 2022

8,500

18,239

214,875

241,614

6

Stocks

2023
£

2022
£

Other inventories

23,026

21,111

7

Debtors

Note

2023
£

2022
£

Trade debtors

 

590,387

514,108

Amounts owed by group undertakings and undertakings in which the company has a participating interest

12

643,518

538,571

Prepayments

 

25,278

24,084

Other debtors

12

1,073,151

1,296,932

 

2,332,334

2,373,695

8

Creditors

Creditors: amounts falling due within one year

 

Japanese Knotweed Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

178,522

168,568

Trade creditors

 

175,029

249,945

Amounts owed to group undertakings and undertakings in which the company has a participating interest

12

80,520

-

Taxation and social security

 

211,190

270,944

Accruals and deferred income

 

67,836

96,465

Other creditors

 

649,734

526,794

 

1,362,831

1,312,716

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

10

71,509

199,612

Other non-current financial liabilities

 

985,786

1,027,494

 

1,057,295

1,227,106

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

36,283

128,878

HP and finance lease liabilities

35,226

70,734

71,509

199,612

 

Japanese Knotweed Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

9

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary "A" shares of £1 each

76

76

74

74

Ordinary "C" shares of £1 each

4

4

6

6

80

80

80

80

10

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

36,283

128,878

Hire purchase contracts

35,226

70,734

71,509

199,612

Current loans and borrowings

2023
£

2022
£

Bank borrowings

98,902

94,560

Hire purchase contracts

79,620

74,008

178,522

168,568

 

Japanese Knotweed Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

11

Dividends

Interim dividends paid

 

2023
£

2022
£

Interim dividend of £1,451 (2022 - £1,308) per each Ordinary "A" shares share

110,267

85,010

Interim dividend of £0 (2022 - £670) per each Ordinary "B" shares share

-

10,050

Interim dividend of £0 (2022 - £1,600) per each Ordinary "C" shares share

-

16,000

 

110,267

111,060

12

Related party transactions

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

12,213

92,162

Contributions paid to money purchase schemes

-

4,105

12,213

96,267

Summary of transactions with parent

During the year, inter-company transactions resulted in a balance of £643,518 (2022: £538,571) being due to the company by the parent entity, Environmental Controls Group Limited, at the year-end.
 

Summary of transactions with subsidiaries

During the year, inter-company transactions resulted in a balance of £80,520 (2022: £Nil) being due from the company to a fellow subsidiary, Ground Contamination Limited, at the year-end.
 

Summary of transactions with other related parties

Included within Other debtors is £928,000 (2022: £1,045,000) due from SWAM Limited, a company in which one of the shareholders is a director and shareholder.
 

13

Parent and ultimate parent undertaking

The company's immediate parent and ultimate controlling party is Environmental Controls Group Limited, a company incorporated in England.