Company registration number 12608794 (England and Wales)
QUATRA UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
QUATRA UK LTD
COMPANY INFORMATION
Directors
P G G Van Pollaert
Company number
12608794
Registered office
Unit 5 Sergro Park
Perivale Hosenden Lane South
Perivale, Greenford
UB6 7RL
Auditor
Gravita Audit II Limited
Aldgate Tower
2 Leman Street
London
E1 8FA
QUATRA UK LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
QUATRA UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Quatra UK aims to collect Used Cooking Oil (UCO) in the UK, which is subsequently sold to parties that process UCO into sustainable, innovative biofuels, resulting in up to 90% fewer CO2 emissions. Quatra UK is part of the Belgium-based Quatra group.
Review of the business
In the first half of the year, Quatra experienced a negative impact due to sharply declining Argus market prices, which had reached a peak in 2022, partly due to the outbreak of the war in Ukraine. To remain competitive in the market, Quatra responded to these falling sales prices by implementing additional cost-saving measures and achieving further efficiency gains. Additionally, Quatra UK significantly increased the volume collected in 2023, positioning the company well for 2024.
Principal risks and uncertainties
The main risks for the company are:
Compliance with, and changes in (environmental) laws and regulations: We have strict procedures to ensure full compliance and closely monitor any changes in these regulations.
Fluctuation in the market pricing of UCO: This price depends on international market prices and trends, which are continuously analysed to ensure our operating margin remains at a healthy level.
Quatra UK does not use financial instruments for its risk exposures.
Key performance indicators
This year, turnover was £13.3 million, and the profit of the year was £13,732. Turnover increased by £2.9 million (+27.9%) due to strong increase in volume, partly offset by lower sales prices. Alongside several cost & efficiency improvements, the operating result improved from a loss of £-164,885 in 2022 to a profit of £279,845 in 2023.
EBITDA is the main key performance indicator (KPI), and increased from £217,386 in 2022 to £999,845 in 2023.
Net liabilities amount to -£778,906 which is explained by start-up costs in previous years. With support from its parent company Quatra International BV, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
No dividend was paid in 2023, and no dividend will be paid based on the result for 2023.
Other information and explanations
No other information to disclose.
P G G Van Pollaert
Director
13 August 2024
QUATRA UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of waste management services.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P G G Van Pollaert
L Nogueira Siqueira
(resigned 14 August 2023)
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
QUATRA UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
P G G Van Pollaert
Director
13 August 2024
QUATRA UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF QUATRA UK LTD
- 4 -
Opinion
We have audited the financial statements of Quatra UK Ltd (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
QUATRA UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF QUATRA UK LTD (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the group, including its foreign subsidiaries through discussions with directors and other management, and from our commercial knowledge and experience of the telecommunications industry;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the parent company and the group, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
QUATRA UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF QUATRA UK LTD (CONTINUED)
- 6 -
We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
understanding the business model as part of the control and business environment;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence and enquiring with the group of actual and potential non-compliance with laws and regulations.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Daniel Howarth
Senior Statutory Auditor
For and on behalf of Gravita Audit II Limited
13 August 2024
Chartered Accountants
Statutory Auditor
Aldgate Tower
2 Leman Street
London
E1 8FA
QUATRA UK LTD
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
13,269,951
10,372,749
Cost of sales
(7,665,308)
(6,525,688)
Gross profit
5,604,643
3,847,061
Distribution costs
(2,601,009)
(1,817,467)
Administrative expenses
(2,792,552)
(2,194,274)
Other operating income/(expenses)
68,763
(205)
Operating profit/(loss)
4
279,845
(164,885)
Interest receivable and similar income
126
Interest payable and similar expenses
7
(302,091)
(39,974)
Loss before taxation
(22,120)
(204,859)
Tax on loss
8
35,852
41,503
Profit/(loss) for the financial year
13,732
(163,356)
The income statement has been prepared on the basis that all operations are continuing operations.
QUATRA UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit/(loss) for the year
13,732
(163,356)
Other comprehensive income
-
-
Total comprehensive income for the year
13,732
(163,356)
QUATRA UK LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
9
280,661
150,686
Other intangible assets
9
1,426,886
1,276,099
Total intangible assets
1,707,547
1,426,785
Tangible assets
10
985,470
1,152,044
2,693,017
2,578,829
Current assets
Stocks
11
484,149
988,689
Debtors - deferred tax
16
370,021
187,509
Debtors - other
12
5,263,447
1,487,998
Cash at bank and in hand
434,370
480,407
6,551,987
3,144,603
Creditors: amounts falling due within one year
13
(5,294,797)
(4,344,451)
Net current assets/(liabilities)
1,257,190
(1,199,848)
Total assets less current liabilities
3,950,207
1,378,981
Creditors: amounts falling due after more than one year
14
(4,582,453)
(2,171,619)
Provisions for liabilities
Deferred tax liability
16
146,660
(146,660)
-
Net liabilities
(778,906)
(792,638)
Capital and reserves
Called up share capital
18
10
10
Profit and loss reserves
(778,916)
(792,648)
Total equity
(778,906)
(792,638)
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 13 August 2024 and are signed on its behalf by:
P G G Van Pollaert
Director
Company registration number 12608794 (England and Wales)
QUATRA UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
10
(629,292)
(629,282)
Year ended 31 December 2022:
Loss and total comprehensive income
-
(163,356)
(163,356)
Balance at 31 December 2022
10
(792,648)
(792,638)
Year ended 31 December 2023:
Profit and total comprehensive income
-
13,732
13,732
Balance at 31 December 2023
10
(778,916)
(778,906)
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Quatra UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5 Sergro Park, Perivale Hosenden Lane South, Perivale, Greenford, UB6 7RL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Quatra International B.V.. These consolidated financial statements are available from its registered office Hoekstraat 165, 9160 Lokeren.
1.2
Going concern
As at the year end the company had net liabilities of £778,906 (net liabilities 2022 : £792,638).true
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 the foreseeable future by receiving support from its parent company Quatra International BV. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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 contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
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 10 and 7 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
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Customer contracts
Over 10 & 7 years
Trademarks
Over 10 & 7 years
Other
Over 10 & 7 years
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
5 years straight line
Plant and equipment
5 years straight line
Fixtures and fittings
5 years straight line
Computers
5 years straight line
Motor vehicles
5 & 3 years straight line
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
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.
1.8
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
1.10
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 statement of financial position 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.
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies that are classified as debt, 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.
1.11
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.
1.12
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 income statement 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.
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 income statement, 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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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 statement of financial position 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.
1.16
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.
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
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.
There are no key estimates or judgments in the year.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of oil for recycling
13,269,951
10,372,749
2023
2022
£
£
Turnover analysed by geographical market
UK
5,943,293
3,338,602
Europe
7,326,658
7,034,147
13,269,951
10,372,749
2023
2022
£
£
Other revenue
Interest income
126
-
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(158,060)
216,252
Depreciation of owned tangible fixed assets
407,321
235,722
Loss on disposal of tangible fixed assets
118,216
35,497
Amortisation of intangible assets
194,463
111,052
Operating lease charges
403,625
303,638
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
41,000
44,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Distribution and operation
37
23
Administration
2
1
Management
4
4
Total
43
28
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,063,279
1,447,233
Social security costs
201,227
149,250
Pension costs
33,918
23,468
2,298,424
1,619,951
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
6,906
-
Interest payable to group undertakings
270,900
28,897
Interest on finance leases and hire purchase contracts
24,285
11,077
302,091
39,974
8
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(35,852)
(41,503)
From April 2023 the Corporation Tax rate changed from 19% to 25%.
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 18 -
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(22,120)
(204,859)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(5,198)
(38,923)
Unutilised tax losses carried forward
(30,654)
(2,580)
Taxation credit for the year
(35,852)
(41,503)
9
Intangible fixed assets
Goodwill
Customer contracts
Trademarks
Other
Total
£
£
£
£
£
Cost
At 1 January 2023
218,953
1,303,566
68,953
42,764
1,634,236
Additions
220,000
238,225
17,000
475,225
At 31 December 2023
438,953
1,541,791
68,953
59,764
2,109,461
Amortisation and impairment
At 1 January 2023
68,267
128,197
6,781
4,206
207,451
Amortisation charged for the year
90,025
97,482
6,956
194,463
At 31 December 2023
158,292
225,679
6,781
11,162
401,914
Carrying amount
At 31 December 2023
280,661
1,316,112
62,172
48,602
1,707,547
At 31 December 2022
150,686
1,175,369
62,172
38,558
1,426,785
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
25,179
380,901
21,555
32,961
986,017
1,446,613
Additions
10,452
89,057
7,871
285,110
392,490
Disposals
(10,300)
(10,996)
(212,635)
(233,931)
At 31 December 2023
35,631
459,658
21,555
29,836
1,058,492
1,605,172
Depreciation and impairment
At 1 January 2023
6,612
34,341
2,047
8,125
243,444
294,569
Depreciation charged in the year
6,850
91,149
4,311
7,947
297,064
407,321
Eliminated in respect of disposals
(5,105)
(2,984)
(74,099)
(82,188)
At 31 December 2023
13,462
120,385
6,358
13,088
466,409
619,702
Carrying amount
At 31 December 2023
22,169
339,273
15,197
16,748
592,083
985,470
At 31 December 2022
18,567
346,560
19,508
24,836
742,573
1,152,044
11
Stocks
2023
2022
£
£
Raw materials and consumables
155,173
122,819
Work in progress
41,002
-
Finished goods and goods for resale
287,974
865,870
484,149
988,689
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
754,819
563,593
Other debtors
1,133,530
855,697
Prepayments and accrued income
3,375,098
68,708
5,263,447
1,487,998
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Debtors
(Continued)
- 20 -
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
370,021
187,509
Total debtors
5,633,468
1,675,507
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
15
134,944
117,480
Trade creditors
964,767
794,563
Amounts owed to group undertakings
3,746,789
3,300,524
Taxation and social security
45,757
Other creditors
250
7,228
Accruals and deferred income
402,290
124,656
5,294,797
4,344,451
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
15
11,941
117,009
Amounts owed to group undertakings
4,570,512
2,054,610
4,582,453
2,171,619
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
134,944
117,480
In two to five years
11,941
117,009
146,885
234,489
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. 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 36 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
146,660
-
-
-
Tax losses
-
-
370,021
187,509
146,660
-
370,021
187,509
2023
Movements in the year:
£
Asset at 1 January 2023
(187,509)
Credit to profit or loss
(35,852)
Asset at 31 December 2023
(223,361)
The deferred tax asset set out above is expected to reverse within [12 months] and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,918
23,468
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10
10
10
10
19
Earnout on asset acquisition
The company has made an asset purchase in the year and included within the agreement is an Earnout Clause. Should certain criteria be met regarding the volumes collected by barrels an amount of £175,625 will be payable.
QUATRA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
280,901
250,501
Between two and five years
161,094
583,186
441,995
833,687
21
Events after the reporting date
The financial commitment discussed in Note.19 in relation to the Earnout was not paid on 31st March 2024 as the targets were not met.
22
Ultimate controlling party
The parent company of the smallest and largest group of which this company is a member of is Quatra International B.V., a company incorporated in Lokeren, Belgium. The accounts for this company are available from Hoekstraat 165, 9160 Lokeren (BE0759.707.562).
QUATRA UK LTD
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
QUATRA UK LTD
SCHEDULES TO THE INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
£
£
Other operating income
Sundry income
68,763
(205)
68,763
(205)
Other external charges
Direct costs
7,555,162
6,463,773
Carriage inwards and import duty
110,146
61,915
7,665,308
6,525,688
Staff costs
Wages and salaries
1,765,408
1,127,538
Social security costs
186,021
126,057
Staff pension costs defined contribution
30,506
19,762
Wages and salaries
146,333
187,305
Social security costs
15,206
23,193
Staff commissions payable
74,702
59,972
Staff pension costs defined contribution
3,412
3,706
Other staff costs
76,836
72,418
2,298,424
1,619,951
Depreciation and other amounts written off tangible and intangible fixed assets
Amortisation
194,463
111,052
Depreciation
407,321
235,722
Profit or loss on sale of tangible assets (non exceptional)
118,216
35,497
720,000
382,271
QUATRA UK LTD
SCHEDULES TO THE INCOME STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
£
£
Other operating expenses
Staff welfare
6,004
252
Staff training
6,797
3,206
Equipment repairs
207,557
219,862
Motor running expenses
271,178
208,226
Insurances (not premises)
3,944
28,696
Sundry expenses
123,594
83,868
Staff recruitment costs
12,848
24,578
Staff welfare
1,629
276
Staff training
95
1,583
Management charge
336,059
165,453
Rent re operating leases
403,625
303,638
Waste disposal
14,706
-
Power, light and heat
39,689
21,792
Property repairs and maintenance
46,119
11,995
Premises insurance
144,173
96,946
Computer running costs
8,208
13,013
Hire of equipment (not operating lease)
14,200
-
Motor running expenses
1,379
-
Travelling expenses
113,609
76,482
Postage, courier and delivery charges
2,686
1,352
Professional subscriptions
5,044
2,152
Legal and professional fees
2,759
12,171
Consultancy fees
551,248
320,619
Accountancy
18,195
(3,640)
Audit fees
41,000
44,000
Bank charges
37,426
24,571
Bad and doubtful debts
(12,727)
(4,778)
Printing and stationery
10,764
13,112
Advertising
74,631
51,789
Telecommunications
28,127
24,818
Sundry expenses
18,631
47,235
Profit or loss on foreign exchange
(158,060)
216,252
2,375,137
2,009,519
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