Company registration number 06457815 (England and Wales)
PAPREC UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
PAPREC UK LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
PAPREC UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
5
966,241
294,988
Cash at bank and in hand
89,275
603,943
1,055,516
898,931
Creditors: amounts falling due within one year
6
(1,999,423)
(605,201)
Net current (liabilities)/assets
(943,907)
293,730
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
(944,907)
292,730
Total equity
(943,907)
293,730

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 6 August 2024 and are signed on its behalf by:
B R Joly
Director
Company registration number 06457815 (England and Wales)
PAPREC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Paprec UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pennine Five Campus Block 2, Tenter Street, Sheffield, S1 4BY.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

These financial statements for the year ended 31 December 2023 are the first financial statements of Paprec UK Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2023. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 10.

1.2
Going concern

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

1.3
Turnover

Revenue comprises the value of services (excluding VAT) earned from the provision of maintenance and repair activities within the energy from waste sector.

The company transfers control of its performance obligation for work performed at a point in time in line with the services provided. Revenue from the provision of services is therefore recognised in the accounting period in which the work is performed and the service is provided to the customer. Where the work happens in advance of an invoice being raised, an accrued income balance is recognised based upon costs incurred at that time.

1.4
Tangible fixed assets

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

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

Plant and equipment
Three to five years
Office equipment
Three to five years
Motor vehicles
Three to five years

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.

PAPREC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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

Basic financial assets, including trade and other debtors, cash and bank balances, investments and loans to fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest.

 

Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts discounted at a market rate of interest.

 

Debt instruments are subsequently carried at amortised cost using the effective interest method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less.

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.

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.

PAPREC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

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

1.11
Leases

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.

1.12
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.

PAPREC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
3
Employees

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

2023
2022
Number
Number
Total
10
18
4
Tangible fixed assets
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
71,052
10,843
42,598
124,493
Disposals
(71,052)
(10,843)
(42,598)
(124,493)
At 31 December 2023
-
0
-
0
-
0
-
0
Depreciation and impairment
At 1 January 2023
71,052
10,843
42,598
124,493
Eliminated in respect of disposals
(71,052)
(10,843)
(42,598)
(124,493)
At 31 December 2023
-
0
-
0
-
0
-
0
Carrying amount
At 31 December 2023
-
0
-
0
-
0
-
0
At 31 December 2022
-
0
-
0
-
0
-
0
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
705
185,148
Corporation tax recoverable
-
0
23,344
Amounts owed by group undertakings
848,328
37,463
Other debtors
117,208
36,400
966,241
282,355
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
-
0
12,633
Total debtors
966,241
294,988
PAPREC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
88,036
119,553
Amounts owed to group undertakings
1,587,304
2
Taxation and social security
12,546
129,154
Other creditors
311,537
356,492
1,999,423
605,201
7
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Jonathan Hayward
Statutory Auditor:
Royce Peeling Green Limited
Date of audit report:
6 August 2024
8
Operating lease commitments
Lessee

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

2023
2022
£
£
151,417
717,431
9
Parent company

The company's immediate parent undertaking is Paprec Engineering CNIM, which itself is a wholly owned subsidiary of Paprec Energy from Waste, a company incorporated in France with registered office 7 Rue Du Docteur Lancereaux, 75008 Paris. Paprec Energy from Waste is ultimately owned by Paprec Holding which is the only Group in which the results of Paprec UK Limited are consolidated.

 

The ultimate controlling party is J L Petithuguenin.

10
Reconciliations on adoption of FRS 102

Reconciliations and descriptions of the effect of the transition to FRS 102 on; (i) equity at the start of the comparative period; (ii) equity at the end of the comparative period; and (iii) profit or loss for the comparative period reported under IFRS are given below.

PAPREC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Reconciliations on adoption of FRS 102
(Continued)
- 7 -
Reconciliation of equity
1 January
31 December
2022
2022
£
£
Equity as reported under IFRS
479,713
227,892
Adjument to prior years
-
39,713
As restated
479,713
267,605
Adjustments arising from transition to FRS 102
39,713
26,125
Equity reported under FRS 102
519,426
293,730
Reconciliation of loss for the financial period
2022
£
Loss as reported under IFRS
(251,821)
Adjustments arising from transition to FRS 102:
Depreciation charges
44,566
Interest charges
35,836
Purchases
(54,277)
Loss reported under FRS 102
(225,696)
Notes to reconciliations on adoption of FRS 102

The above transition adjustments relate to the derecognition of the right of use asset and associated liability for an office building lease previously recognised under IFRS 16.

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