KEENAN (RECYCLING) LIMITED
No. SC254053
DIRECTORS' REPORT
AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
KEENAN (RECYCLING) LIMITED
COMPANY INFORMATION
Directors
Grant Keenan
Gregor Keenan
J Melvin Keenan
James Clark
Richard Pugh
Ritchie Clark
Claire Keenan
Company number
SC254053
Registered office
6 & 7 Queens Terrace
Aberdeen
AB10 1XL
Business address
Campus One, Bridge of Don
Aberdeen
AB22 8GT
Auditor
Hall Morrice LLP
6 & 7 Queens Terrace
Aberdeen
AB10 1XL
Bankers
Virgin Money
43 Broad Street
Peterhead
Aberdeenshire
AB42 1JB
KEENAN (RECYCLING) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 30
KEENAN (RECYCLING) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of food waste collection and organic recycling services.

Fair review of the business

Food waste collection and organic recycling services are provided to a wide range of local authorities, waste management companies and brokers, private companies both national and independents, and other public service organisations across the UK. Operations are run from headquarters based in Aberdeen. Food waste is collected utilising specialised collection vehicles and its own drivers based at eighteen operating depots across the UK which allows the company to collect food waste from every postcode on the mainland of the UK without the need to subcontract out any of the service. Food waste collected is taken to Anaerobic Digestion plants and turned into renewable energy.

 

Organic materials received at the recycling centre located in Aberdeenshire are converted into compost and sold into the local agricultural sector. Any food waste received at the recycling centre in Aberdeenshire and the recycling centre in Glasgow is processed into a biofuel for supply to Anaerobic Digestion plants.

Development and performance

The performance achieved in the period is set out in the Statement of Comprehensive Income on page 9.

 

Year on year revenue showed an increase of 12% from the prior year to £17.1m with both the organics division and food waste collections division delivering robust growth in the year. The food waste collections division continues to benefit from the significant investment made in the division over the last few years to provide a full UK wide service offering. Two additional depots were opened during the year at Plymouth and Essex to enhance our service offering in the South West of England, London, and East Anglia regions. Growth through new and existing partners resulted in the number of food waste bins the company lifted across the UK increasing 10% on the prior year.

The volume of waste processed through the recycling centre in Aberdeenshire and the food waste processing facility in Linwood, Glasgow, also increased on the prior year, with a number of local authority contracts renewed or extended.

Gross profit margin of 45% was broadly consistent with the prior year. An Operating profit of £802k and a profit after tax of £116k was generated.

During the year, a £0.33m investment was made in the people, management systems, infrastructure, plant and machinery and the fleet of food waste collection vehicles to ensure the company continues to deliver an elevated level of service which the customers require. An example being the ability to provide key carbon reporting information and assist customers reduce their carbon footprint.

The outlook for the waste management sector remains extremely positive both in the short and long term. Addressing climate change continues to remain high on the agenda of the UK government. One fifth of the UK’s greenhouse gas emissions are associated with the landfilling of food waste. As food items degrade over time, they release methane gases which are twenty-eight times more harmful than carbon dioxide in terms of trapping heat in the atmosphere, making it the second largest cause of global warming after CO2. Reducing emissions by diverting waste from landfill is a fundamental driver.

Regulation remains one of the key drivers in the sector. The Environment Act 2021 and the long-awaited supporting regulation, represents one of the most significant changes in the space for many years.

In Wales this was enacted in the shape of The Waste Separation Requirements (Wales) Regulations that were introduced in April 2024. The regulation demands that all premises generating more than 5kg of waste food per week offer it up for separate collection. There is an obligation placed both on the waste producer and the waste collector to ensure that as much food waste as possible is captured and treated, in accordance with the waste hierarchy, through Anaerobic Digestion (AD) processes. Failure to do so will result in fixed penalty fines. This change has stimulated the market, and the company experienced an increase in food waste collections in the run up to the implementation date.

KEENAN (RECYCLING) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

In England, the Simpler Recycling regulations are set to commence from April 2025. Similar to the regulation in Wales, all non-domestic premises generating any food waste at all will require separate collection. These changes are likely to support the diversion of over c5 million tonnes of food waste away from landfill and incineration and into Anaerobic Digestion. With UK wide infrastructure in place, combined with an enlarged fleet of specialised food waste collection vehicles, the company is well placed to benefit from the significant growth opportunities provided through the introduction of regulations in England and Wales.

In Scotland, food waste recycling legislation already exists. However, pressure on local authorities to recycle more persists. The Scottish government has committed to banning the landfilling of all biodegradable waste by 2025, with local authorities having to divert more organic waste to composting or Anaerobic Digestion.

There continues to be a shortage of capacity to treat co-mingled food and garden waste in Scotland. During the year SEPA approved an extension to the company’s licenced capacity allowing the company to accept and process the increasing volume of organic waste.

The company diverted c139,000 tonnes of food, green and co-mingled green and food waste away from landfill in the year saving c93,000 tonnes of CO2 equivalent.

The Company continues its journey towards Net Zero, with a clear road map to obtain the goal of reducing carbon emissions from Scopes 1 and 2 to as close to zero as practicable by 2030. The plan includes decarbonising the fleet of food waste collection vehicles by transitioning away from diesel vehicles to low carbon alternatives. The company’s fleet now includes vehicles using HVO (Hydrated Vegetable Oil) fuel and a hybrid of HVO and hydrogen. During the year, the company placed an order for 10 Compressed Natural Gas (CNG) food waste collection vehicles. These vehicles will use the gas produced from the anaerobic digestion processing of food waste collected by the company thereby offering an effective circular solution. A blend of innovative green technology is planned for the coming years including moving more of the fleet of collection vehicles to CNG and electric.

Through the organics division the Company is looking at the electrification and optimisation of its processing operations. A number of mobile plant has now switched to HVO fuel or electric alternatives.

This steady incremental decarbonisation activity will continue for the remainder of the decade with the company’s vision to be the supplier of choice for customers on a similar net zero journey and operate seamlessly within scope 3 when its customers look at their supply chain.

Post year end the company obtained approval from Science Based Targets Initiative (SBTi) which commits the company to publishing carbon emission data.

There is a strong ethos within the company towards health and safety. Significant investment continues to be made in this area with safety technology and additional cameras being rolled out to all food waste collection vehicles and the continual training of its employees. The company is subject to audits of its health, safety and environmental operations by various bodies and customers. All this combined with the directors' attitudes towards the area of health and safety ensures that a fully compliant, efficient, and safe service is provided.

The company has worked with Business in the Community to build out a social value matrix to ensure the company continues to create social value and enhance the well-being of its employees. Over the course of the year various wellbeing policies have been introduced, young people have been brought into the business as part of a Career Ready scheme and a number of local charities and community groups have been supported to name but a few of the numerous initiatives. The company has also developed an ESG centred supply chain matrix to provide greater transparency around supplier relationships.

Post year end the company finalised the sale of the trade and assets of its Linwood processing centre. The funds received will be reinvested into the business to enhance the company’s food waste collection service offering which the directors are looking to continue to grow and maintain the company’s position as the UK’s leading food waste collection business.

Financial Instruments

The main risks arising from the company’s financial instruments are liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks. The policies have remained unchanged from the prior year.

KEENAN (RECYCLING) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Liquidity Risk
The company manages its cash and borrowing requirements to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meeet the operating needs of the business. Post year end the company restructured its banking facilities and made an early redemption in full of the shareholder loan notes. The repayment of shareholder loans was financed by a mixture of bank debt and cash.
Interest Rate Risk
The company finance their operations through a mixture of bank overdrafts and loans, shareholder loans and finance leases for the purchase of significant assets. The company monitors its exposure to interest fluctuations on its borrowings to ensure the risk is minimised. In the case of finance leases and shareholder loans the interest rate is fixed and not vulnerable to fluctuation. The bank loans are subject to the bank base rate which can fluctuate. Interest rates are not seen as a material risk.
Credit Risk
The company's principal financial assets are trade debtors. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. A significant portion of the revenue is generated from Local Authorities and large commercial businesses. The company has not suffered any significant bad debts during the year.

On behalf of the board

Grant Keenan
Director
9 August 2024
KEENAN (RECYCLING) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors present their report and audited financial statements for the year ended 31 March 2024.

Directors

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

Grant Keenan
Gregor Keenan
J Melvin Keenan
James Clark
Richard Pugh
Ritchie Clark
Claire Keenan
Results and dividends

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

Dividends amounting to £Nil (2023 - £Nil) were declared to A Ordinary shareholders. As at 31 March 2024 £179,994 (2023 - £179,994) remained outstanding. The directors do not recommend payment of a further dividend.

Auditor

The auditor, Hall Morrice LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic report, 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 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.

Development and performance

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's Strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' report. It has done so in respect of information on the future developments in the business of the company.

KEENAN (RECYCLING) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
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.

On behalf of the board
Grant Keenan
Director
9 August 2024
KEENAN (RECYCLING) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KEENAN (RECYCLING) LIMITED
- 6 -
Opinion

We have audited the financial statements of Keenan (Recycling) Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 Strategic report and the Directors' report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the Strategic report and the Directors' 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:

KEENAN (RECYCLING) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEENAN (RECYCLING) LIMITED
- 7 -
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, as set out in the Directors' report, 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.

Irregularities, including fraud, are instances on 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.

In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have:

 

KEENAN (RECYCLING) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEENAN (RECYCLING) LIMITED
- 8 -

In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, and the potential for management bias and the override of controls we have:

 

 

We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.

 

Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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.

Robert J C Bain MA CA CTA
Senior Statutory Auditor
For and on behalf of Hall Morrice LLP
Statutory Auditor
Aberdeen
9 August 2024
KEENAN (RECYCLING) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
4
17,126,736
15,356,387
Cost of sales
(9,357,260)
(8,325,114)
Gross profit
7,769,476
7,031,273
Administrative expenses
(7,037,379)
(7,155,966)
Other operating income
70,206
68,315
Operating profit/(loss)
5
802,303
(56,378)
Interest receivable and similar income
307
-
0
Interest payable and similar expenses
9
(608,990)
(544,583)
Profit/(loss) before taxation
193,620
(600,961)
Tax on profit/(loss)
10
(77,281)
259,733
PROFIT/(LOSS) FOR THE FINANCIAL YEAR
116,339
(341,228)

The Statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

KEENAN (RECYCLING) LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
29,797
40,971
Tangible assets
12
10,854,165
12,918,345
Investments
13
50
50
10,884,012
12,959,366
Current assets
Stocks
15
114,210
101,325
Debtors
16
3,644,791
3,543,484
Cash at bank and in hand
894,255
140,790
4,653,256
3,785,599
Creditors: amounts falling due within one year
17
(8,809,764)
(4,068,227)
Net current liabilities
(4,156,508)
(282,628)
Total assets less current liabilities
6,727,504
12,676,738
Creditors: amounts falling due after more than one year
18
(3,790,479)
(9,933,333)
Provisions for liabilities
21
(381,286)
(304,005)
Net assets
2,555,739
2,439,400
Capital and reserves
Called up share capital
26
153
153
Share premium account
27
499,947
499,947
Revaluation reserve
27
1,923,508
1,923,508
Capital redemption reserve
27
150,000
150,000
Profit and loss reserves
27
(17,869)
(134,208)
Total equity
2,555,739
2,439,400
The financial statements were approved by the board of directors and authorised for issue on 9 August 2024 and are signed on its behalf by:
Grant Keenan
Director
Company Registration No. SC254053
KEENAN (RECYCLING) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 April 2022
153
499,947
1,923,508
150,000
207,020
2,780,628
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
-
-
(341,228)
(341,228)
Balance at 31 March 2023
153
499,947
1,923,508
150,000
(134,208)
2,439,400
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
-
116,339
116,339
Balance at 31 March 2024
153
499,947
1,923,508
150,000
(17,869)
2,555,739
KEENAN (RECYCLING) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
3,247,708
2,006,133
Interest paid
(586,310)
(511,003)
Net cash inflow from operating activities
2,661,398
1,495,130
Investing activities
Purchase of tangible fixed assets
(190,614)
(760,460)
Proceeds on disposal of tangible fixed assets
45,858
342,000
Net cash used in investing activities
(144,756)
(418,460)
Financing activities
Proceeds of grants
-
0
26,635
Repayment of bank loans
(333,333)
(3,207,821)
Proceeds of bank loans
-
2,800,000
Payment of finance leases obligations
(1,429,844)
(1,363,754)
Net cash used in financing activities
(1,763,177)
(1,744,940)
Net increase/(decrease) in cash and cash equivalents
753,465
(668,270)
Cash and cash equivalents at beginning of year
140,790
809,060
Cash and cash equivalents at end of year
894,255
140,790
KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
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 £.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from the date of signing the financial statements. Thus the directors have continued to adopt the going concern basis of accounting in preparing the financial statements.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

Revenue from the provision of services is recognised by reference to the date on which the services were rendered.

1.4
Intangible fixed assets - goodwill

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

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
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:

Land
Nil
Buildings
2% - 5% Straight line
Plant and machinery
6% - 50% Straight line
Fixtures, fittings & equipment
20% - 33% Straight line
Motor vehicles
20% - 50% Straight line

Freehold land and assets in the course of construction are not depreciated.

KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 14 -

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.

Each class of asset is measured using the cost model other than land, which is measured using the revaluation model.

 

Land is carried at its revalued amount, being fair value at the date of valuation less subsequent impairment losses. Revaluations are performed by professional qualified valuers with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period.

 

Any revaluation increase in the carrying amount of land is recognised in other comprehensive income and included in the revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in which case the increase is credited to profit or loss to the extent of the decrease previously expended. Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against the revaluation reserve in equity; decreases exceeding the balance in the revaluation reserve relating to an asset are recognised in profit or loss.

 

Provision is made for deferred tax liabilities arising on the revaluation of land. Deferred tax assets arising on the revaluation of land are not recognised as it is not considered probable that they will be recovered due to the anticipated future upward movement in the fair value of the land.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

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

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

KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 15 -
1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
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 profit or loss as reported in the Statement of comprehensive income 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 to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity through other comprehensive income. 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.

KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 17 -
1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of 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.

1.14
Retirement benefits

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

1.15
Share-based payments

The valuation of the equity was carried out on an enterprise basis with reference to the underlying profitability and Net asset position. The market price of similar quoted companies at the date of the award was also taken into consideration.

1.16
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.

1.17
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.

KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Goodwill
The company establishes a reliable estimate of the useful life of goodwill arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected usual life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses. See note 10 for the carrying amount of the goodwill and note 1.4 for its useful economic life.
Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of each asset and note 1.5 for the useful economic lives for each class of asset.

Revaluation of land

Land is carried at valuation. The fair value at each reporting date is normally determined by the directors at estimated market value. Annual professional valuations are not obtained due to the cost involved and the fact that the directors have no intention to sell the land. Periodic professional valuations are obtained when there is considered to have been a material change in the economic environment. The carrying amount of the land is disclosed in note 12.

3
Change in accounting estimate

During the year, the residual values of some of the motor fleet was revised due to the significant increase in the cost of second hand lorries. Within the Statement of comprehensive income, this has resulted in Administrative expenses decreasing by £118,668 and Profit for the financial year increasing by £118,668. Within the Balance sheet, this has resulted in Tangible assets and Net assets both increasing by £118,668.

4
Turnover and other revenue

Turnover

The directors are of the opinion that disclosure of the different classes of turnover would be seriously prejudicial to the company's interest. Such disclosure has therefore not been made.

KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
5
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Amortisation of grants
(70,206)
(68,315)
Depreciation of owned tangible fixed assets
886,872
924,589
Depreciation of tangible fixed assets held under finance leases
1,418,631
1,617,505
Loss/(profit) on disposal of tangible fixed assets
17,933
(81,793)
Amortisation of intangible assets
11,174
11,174
Cost of stocks recognised as an expense
563,485
504,509
Operating lease charges
159,605
127,690
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
Audit of the financial statements of the company
21,500
14,825
For other services
All other non-audit services
6,574
7,285
7
Employees

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

2024
2023
Number
Number
Administration
34
41
Operations
102
90
Total
136
131

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,775,217
5,053,154
Social security costs
573,714
531,564
Pension costs
140,656
125,142
6,489,587
5,709,860
KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
810,367
733,970
Company pension contributions to defined contribution schemes
47,680
45,294
858,047
779,264

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
211,719
189,219
Company pension contributions to defined contribution schemes
13,240
12,600
Non-cash benefits included in remuneration relate to car benefits and health cover.
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
270,778
192,795
Other interest on financial liabilities
150,089
150,020
420,867
342,815
Other finance costs:
Interest on finance leases and hire purchase contracts
188,123
201,768
608,990
544,583
KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
10
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
77,281
(259,733)

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2023 (on 10 January 2023). These changes included an increase in the main rate to 25% from April 2023. Deferred taxes at the balance sheet date, in relation to UK companies, are measured using tax rates enacted as at the balance sheet date (25%).

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

2024
2023
£
£
Profit/(loss) before taxation
193,620
(600,961)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25% (2023: 19%)
48,405
(114,183)
Tax effect of expenses that are not deductible in determining taxable profit
11,670
3,461
Permanent capital allowances
16,486
(85,954)
Other permanent differences
720
181
Deferred tax adjustments in respect of prior years
-
0
(63,238)
Taxation charge/(credit) for the year
77,281
(259,733)
11
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
55,000
Amortisation and impairment
At 1 April 2023
14,029
Amortisation charged for the year
11,174
At 31 March 2024
25,203
Carrying amount
At 31 March 2024
29,797
At 31 March 2023
40,971
KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
12
Tangible fixed assets
Land
Buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 April 2023
2,685,000
2,935,289
7,877,328
934,115
9,642,430
24,074,162
Additions
-
0
-
0
289,043
9,271
6,800
305,114
Disposals
-
0
(5,781)
(279,831)
(149,672)
(375)
(435,659)
At 31 March 2024
2,685,000
2,929,508
7,886,540
793,714
9,648,855
23,943,617
Depreciation
At 1 April 2023
-
0
753,016
4,768,396
647,537
4,986,868
11,155,817
Depreciation charged in the year
-
0
93,267
839,758
177,561
1,194,917
2,305,503
Eliminated in respect of disposals
-
0
(5,781)
(216,040)
(149,672)
(375)
(371,868)
At 31 March 2024
-
0
840,502
5,392,114
675,426
6,181,410
13,089,452
Carrying amount
At 31 March 2024
2,685,000
2,089,006
2,494,426
118,288
3,467,445
10,854,165
At 31 March 2023
2,685,000
2,182,273
3,108,932
286,578
4,655,562
12,918,345

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

2024
2023
£
£
Plant and machinery
1,149,618
1,550,417
Motor vehicles
3,307,311
4,428,207
4,456,929
5,978,624
Depreciation charge for the year in respect of leased assets
1,418,631
1,617,505

Land is held at valuation. The land at New Deer, Turriff was independently valued at 23 June 2017 by Ryden LLP Chartered Surveyors, independent valuers not connected with the company, at £2,385,000 on the basis of market value. The land at Linwood, Paisley was independently valued at 24 August 2020 by DM Hall LLP Chartered Surveyors at £300,000 on the basis of market value. The directors are of the opinion that the market value of the remaining items of land is not materially different from its carrying amount as at the reporting end date.

KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets (continued)
- 23 -

If revalued assets were stated on an historical cost basis rather that a fair value basis, the total amounts included would have been as follows:

2024
2023
£
£
Cost
234,099
234,099
Accumulated depreciation
-
-
Carrying value
234,099
234,099
13
Fixed asset investments
2024
2023
£
£
Unlisted investments
50
50
Financial assets for which fair value cannot be measured reliably

The unlisted investment is not publicly traded and its fair value cannot otherwise be measured reliably. The unlisted investment is therefore measured at cost less impairment.

Movements in fixed asset investments
Investments other than loans
£
Cost
At 1 April 2023 & 31 March 2024
50
Carrying amount
At 31 March 2024
50
At 31 March 2023
50
14
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,357,529
3,352,132
Equity instruments measured at cost less impairment
50
50
Carrying amount of financial liabilities
Measured at amortised cost
11,915,511
13,389,645
KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
114,210
101,325
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,321,527
3,301,356
Other debtors
36,002
50,776
Prepayments and accrued income
287,262
191,352
3,644,791
3,543,484
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Loan notes
20
1,533,813
31,849
Bank loans and overdrafts
20
3,133,333
333,333
Obligations under finance leases
19
1,362,152
1,419,842
Trade creditors
697,225
685,622
Other taxation and social security
684,734
611,916
Government grants
23
70,206
70,206
Dividends payable
179,994
-
0
Other creditors
60,939
123,551
Accruals and deferred income
1,087,368
791,908
8,809,764
4,068,227
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Loan notes
20
-
0
1,501,667
Bank loans and overdrafts
20
55,556
3,188,889
Obligations under finance leases
19
3,458,789
4,716,443
Government grants
23
276,134
346,340
Dividends payable
-
0
179,994
3,790,479
9,933,333
Amounts included above which fall due after five years are as follows:
Payable by instalments
20,128
250,578
KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
1,505,607
1,670,160
In two to five years
3,620,402
4,774,188
In over five years
20,302
256,243
5,146,311
6,700,591
Less: future finance charges
(325,370)
(564,306)
4,820,941
6,136,285

Finance lease payments represent rentals payable by the company for certain items of Plant and machinery and Motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Loans and overdrafts
2024
2023
£
£
Loan notes
1,533,813
1,533,516
Bank loans
3,188,889
3,522,222
4,722,702
5,055,738
Payable within one year
4,667,146
365,182
Payable after one year
55,556
4,690,556

Bank loans and overdrafts are secured by: standard security over the land at 81 Burnbrae Road, Linwood, Paisley; Hillhead of Auchreddie, New Deer; and two floating charges that create a fixed and floating charge over the assets of the company. The company is not allowed to create subsequent fixed securities having priority over or ranking equally with the floating charges.

Bank loans consist of variable rate loans that attract interest at rates of 3% and 3.75% above base rate per annum. The bank loans are repayable in August 2024 and May 2025.

 

Loan notes consist of £1,020,720 A loan notes, £128,116 B loan notes and £384,978 C loan notes. The A, B and C loan notes attract interest of 10% per annum, paid quarterly. The A, B and C loan notes and premiums are redeemable in 31 December 2024.

21
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
22
381,286
304,005
KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
932,306
1,275,204
Tax losses
(1,142,748)
(1,562,927)
Revaluations
591,728
591,728
381,286
304,005
2024
Movements in the year:
£
Liability at 1 April 2023
304,005
Charge to profit or loss
77,281
Liability at 31 March 2024
381,286
23
Government grants
2024
2023
£
£
Arising from government grants
346,340
416,546
2024
2023
£
£
Current liabilities
70,206
70,206
Non-current liabilities
276,134
346,340
346,340
416,546
KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
140,656
125,142

The company offers defined contribution pension schemes for all qualifying employees under the government NEST pension scheme and a private scheme. The assets of the schemes are held separately from those of the company in an independently administered fund.

At the reporting end date the company had a defined contribution pension liability included in creditors of £28,125 (2023 - £23,316).

25
Share-based payment transactions
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 April 2023 and 31 March 2024
313
313
15.00
15.00
Exercisable at 31 March 2024
-
0
-
0
-
0
-
0

The options outstanding at 31 March 2024 had an exercise price of £15, and a remaining contractual life of 3.5 years.

The valuation of the equity was carried out as detailed in accounting policy 1.15.

26
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
7,956 Ordinary shares of 1p each
80
80
4,590 A Ordinary shares of 1p each
46
46
1,529 A1 Ordinary shares of 1p each
15
15
1,225 B Ordinary shares of 1p each
12
12
153
153

Ordinary shares, A Ordinary shares, A1 Ordinary shares and B Ordinary shares
On a show of hands each holder has one vote. On a poll or written resolution each holder has one vote per share. The holders of A Ordinary shares shall be entitled to receive a cumulative preferential net cash dividend. The shares are not redeemable.

KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
27
Reserves
Share premium

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Revaluation reserve

This reserve records increases in the fair value of land and decreases to the extent that such decrease relates to an increase on the same asset previously recognised in this reserve. Deferred tax liabilities arising on the revaluation of land are provided for and movements in such deferred tax liabilities are also recorded through this reserve.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Profit and loss reserves

This reserve records the accumulated distributable profits made by the company net of distributions to shareholders.

28
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:

2024
2023
£
£
Within one year
136,654
99,779
Between two and five years
391,211
254,666
527,865
354,445
29
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
1,913,619
161,968
30
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Services received
Loan note interest paid
2024
2023
2024
2023
£
£
£
£
Other related parties
106,053
103,374
24,167
24,167
KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
30
Related party transactions (continued)
- 29 -

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts owed to related parties
£
£
Other related parties
289,032
285,099

Services received are considered to be arm's length transactions conducted under normal business conditions. The amounts outstanding are in relation to trading accounts, which are unsecured and will be settled in cash.

31
Directors' transactions

Loan notes issued by the company are held by its directors as follows:

Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
C Loan notes
10.00
134,714
11,699
(11,667)
134,746

The terms attached to the loan notes are detailed in note 20.

32
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
116,339
(341,228)
Adjustments for:
Taxation charged/(credited)
77,281
(259,733)
Finance costs
608,683
544,583
Loss/(gain) on disposal of tangible fixed assets
17,933
(81,793)
Amortisation and impairment of intangible assets
11,174
11,174
Depreciation and impairment of tangible fixed assets
2,305,503
2,542,094
Amortisation of grants
(70,206)
(68,315)
Movements in working capital:
(Increase) in stocks
(12,885)
(10,479)
(Increase) in debtors
(101,307)
(637,285)
Increase in creditors
295,193
307,115
Cash generated from operations
3,247,708
2,006,133
KEENAN (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
33
Analysis of changes in net debt
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
140,790
753,465
-
894,255
Borrowings excluding overdrafts
(5,055,738)
333,036
-
(4,722,702)
Obligations under finance leases
(6,136,285)
1,429,844
(114,500)
(4,820,941)
(11,051,233)
2,516,345
(114,500)
(8,649,388)
34
Company information

Keenan (Recycling) Limited is a private company limited by shares incorporated in Scotland (registered no. SC254053). The registered office is 6 & 7 Queens Terrace, Aberdeen, AB10 1XL.

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