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COMPANY REGISTRATION NUMBER: 06029580
Central Waste (UK) Ltd
Financial Statements
31 December 2023
Central Waste (UK) Ltd
Financial Statements
Year ended 31 December 2023
Contents
Page
Strategic report
1
Director's report
2
Independent auditor's report to the members
4
Statement of income and retained earnings
8
Statement of financial position
9
Statement of cash flows
10
Notes to the financial statements
11
Central Waste (UK) Ltd
Strategic Report
Year ended 31 December 2023
Principal activities
The principal activity of the company is that of skip hire and waste disposal.
Review of the business
The company has continued to benefit from a relatively buoyant housing development market, assisted by government help to buy schemes and despite an increase in interest rates, which has seen it's turnover increase year on year. The turnover stabilised in 2023, which is consistent with a national decrease in new construction work over the same period. The company has been partially insulated from rising costs due to providing services, but has seen increases in both cost of sales and overheads as a a result of the increasing energy and living costs and a decline in the resale value of used vehicles.
Principal risks and uncertainties
The principal risks to the company are that of a recession impacting the construction industry, the loss of key suppliers or customers and the risk of breaches of laws and regulations that allow the company to continue in trade. The rising inflation costs of 2023 did not significantly impact the construction industry and there have been no losses of key customers or suppliers. The company has a wide customer base in order to minimise risks within the construction industry. The company also takes care to manage its regulatory responsibilities, ensuring that the site and assets are well maintained and that staff are properly trained in safety.
Analysis of development and performance in the year and position at the year end
The company has had a successful year and has maintained its level of turnover. It remains solvent, with a strong balance sheet and a good mix of liquid and capital assets. The company continues to invest in plant and makes plans to replace assets on a regular basis.
Key performance indicators
The company monitors its performance by reference to its turnover, gross profit and liquidity.
This report was approved by the board of directors on 1 August 2024 and signed on behalf of the board by:
Mr D Robinson
Director
Registered office:
15b Wigwam Lane
Hucknall
Nottingham
NG15 7TA
Central Waste (UK) Ltd
Director's Report
Year ended 31 December 2023
The director presents his report and the financial statements of the company for the year ended 31 December 2023 .
Director
The director who served the company during the year was as follows:
Mr D Robinson
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is 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. He is 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 1 August 2024 and signed on behalf of the board by:
Mr D Robinson
Director
Registered office:
15b Wigwam Lane
Hucknall
Nottingham
NG15 7TA
Central Waste (UK) Ltd
Independent Auditor's Report to the Members of Central Waste (UK) Ltd
Year ended 31 December 2023
Opinion
We have audited the financial statements of Central Waste (UK) Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's 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 director 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 annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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: In respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following: - the nature of the business and its industry, the level of autonomy of management and the controls put in place by those charged with governance and business performance. - results of our enquiries of management and those charged with governance regarding their own identification and assessment of the risks of irregularities. - any matters we identified having documented and tested the company's policies and procedures including compliance with laws and regulations, internal controls and also from discussion within the audit engagement team and associated internal specialists regarding how and where fraud might occur and whether there were any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in the following areas: recognition of income, payroll and personal use of company funds. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context were Companies Act 2006 (UK), VOSA, environmental regulations regarding the storage and disposal of waste, employment law, health and safety, pensions and tax legislation. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Peter Stewart FCA
(Senior Statutory Auditor)
For and on behalf of
Gregory Priestley & Stewart
Chartered Accountants & statutory auditor
Lyndhurst
1-3 Cranmer Street
Long Eaton
Nottingham
NG10 1NJ
1 August 2024
Central Waste (UK) Ltd
Statement of Income and Retained Earnings
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
6,639,544
6,691,670
Cost of sales
4,145,285
4,118,723
------------
------------
Gross profit
2,494,259
2,572,947
Administrative expenses
1,132,614
846,116
Other operating income
5
3,400
------------
------------
Operating profit
6
1,361,645
1,730,231
Interest payable and similar expenses
10
27,744
32,671
------------
------------
Profit before taxation
1,333,901
1,697,560
Tax on profit
11
328,764
362,367
------------
------------
Profit for the financial year and total comprehensive income
1,005,137
1,335,193
------------
------------
Dividends paid and payable
12
( 1,500,000)
( 2,092,846)
Retained earnings at the start of the year (as previously reported)
3,178,507
3,913,323
Prior period adjustments
22,837
------------
------------
Retained earnings at the start of the year (restated)
3,178,507
3,936,160
------------
------------
Retained earnings at the end of the year
2,683,644
3,178,507
------------
------------
All the activities of the company are from continuing operations.
Central Waste (UK) Ltd
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Intangible assets
13
170
510
Tangible assets
14
3,004,776
3,101,792
------------
------------
3,004,946
3,102,302
Current assets
Debtors
15
2,292,357
1,665,036
Cash at bank and in hand
570,052
457,964
------------
------------
2,862,409
2,123,000
Creditors: amounts falling due within one year
16
2,586,617
1,123,527
------------
------------
Net current assets
275,792
999,473
------------
------------
Total assets less current liabilities
3,280,738
4,101,775
Creditors: amounts falling due after more than one year
17
54,995
303,525
Provisions
19
541,999
619,643
------------
------------
Net assets
2,683,744
3,178,607
------------
------------
Capital and reserves
Called up share capital
22
100
100
Profit and loss account
2,683,644
3,178,507
------------
------------
Shareholders funds
2,683,744
3,178,607
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 1 August 2024 , and are signed on behalf of the board by:
Mr D Robinson
Director
Company registration number: 06029580
Central Waste (UK) Ltd
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
1,005,137
1,335,193
Adjustments for:
Depreciation of tangible assets
465,504
432,525
Amortisation of intangible assets
340
340
Interest payable and similar expenses
27,744
32,671
Loss/(gains) on disposal of tangible assets
22,752
( 222,809)
Tax on profit
328,764
362,367
Accrued expenses
24,237
11,914
Changes in:
Trade and other debtors
( 627,321)
568,628
Trade and other creditors
74,970
( 3,548)
------------
------------
Cash generated from operations
1,322,127
2,517,281
Interest paid
( 27,744)
( 32,671)
Tax paid
( 262,325)
( 68,112)
------------
------------
Net cash from operating activities
1,032,058
2,416,498
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 893,235)
( 858,906)
Proceeds from sale of tangible assets
501,995
783,469
------------
------------
Net cash used in investing activities
( 391,240)
( 75,437)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
( 209,948)
( 15,617)
Proceeds from loans from group undertakings
1,402,326
( 263,460)
Payments of finance lease liabilities
( 221,108)
( 275,049)
Dividends paid
( 1,500,000)
( 2,092,846)
------------
------------
Net cash used in financing activities
( 528,730)
( 2,646,972)
------------
------------
Net increase/(decrease) in cash and cash equivalents
112,088
( 305,911)
Cash and cash equivalents at beginning of year
457,964
763,875
---------
---------
Cash and cash equivalents at end of year
570,052
457,964
---------
---------
Central Waste (UK) Ltd
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is 15b Wigwam Lane, Hucknall, Nottingham, NG15 7TA.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements In the course of preparing the financial statements, no judgements have been made on the process of applying the company's accounting policies, other than those involving estimations, that have had a significant effect on the amounts recognised in the financial statements. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: The key accounting estimates are those regarding the useful lives of fixed assets held by the company, which are used to establish the most accurate depreciation policies and rates to use.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. When the outcome of a transaction involving the hire of skips can be reliably estimated, revenue from the hire is measured by reference to the commencement of the period of provision of the service. Additional services rendered such as specialist disposal fees are recognised at collection. When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Property improvement
-
10% straight line
Plant & machinery
-
10% reducing balance
Fixtures & fittings
-
20% reducing balance
Motor vehicles
-
25% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
6,639,544
6,691,670
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
Other operating income
3,400
----
-------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Amortisation of intangible assets
340
340
Depreciation of tangible assets
465,504
432,525
Loss/(gains) on disposal of tangible assets
22,752
( 222,809)
Impairment of trade debtors
2,075
1,255
---------
---------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
8,000
7,500
-------
-------
8. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2023
2022
No.
No.
Production staff
40
42
Administrative staff
5
6
Management staff
3
3
----
----
48
51
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
1,699,497
1,641,149
Other pension costs
27,664
25,488
------------
------------
1,727,161
1,666,637
------------
------------
9. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
12,826
10,882
--------
--------
10. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
8,684
8,684
Interest on obligations under finance leases and hire purchase contracts
17,300
23,987
Other interest payable and similar charges
1,760
--------
--------
27,744
32,671
--------
--------
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
406,408
262,325
Deferred tax:
Origination and reversal of timing differences
( 77,644)
100,042
---------
---------
Tax on profit
328,764
362,367
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,333,901
1,697,560
------------
------------
Profit on ordinary activities by rate of tax
313,733
322,537
Adjustment to tax charge in respect of prior periods
( 348)
26,600
Effect of expenses not deductible for tax purposes
5,249
13,745
Effect of capital allowances and depreciation
10,130
84,760
Group relief
(88,028)
Chargeable gains
2,753
------------
------------
Tax on profit
328,764
362,367
------------
------------
Factors that may affect future tax expense
For profits in excess of £250,000, the rate of corporation tax payable by the company rose to 25% from 1 April 2023.
12. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
1,500,000
2,092,846
------------
------------
13. Intangible assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
19,400
--------
Amortisation
At 1 January 2023
18,890
Charge for the year
340
--------
At 31 December 2023
19,230
--------
Carrying amount
At 31 December 2023
170
--------
At 31 December 2022
510
--------
14. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
753,193
2,581,509
36,321
920,219
4,291,242
Additions
24,571
607,609
6,592
254,463
893,235
Disposals
( 600,500)
( 118,499)
( 718,999)
---------
------------
--------
------------
------------
At 31 December 2023
777,764
2,588,618
42,913
1,056,183
4,465,478
---------
------------
--------
------------
------------
Depreciation
At 1 January 2023
251,484
626,952
26,157
284,857
1,189,450
Charge for the year
39,368
212,860
3,353
209,923
465,504
Disposals
( 131,819)
( 62,433)
( 194,252)
---------
------------
--------
------------
------------
At 31 December 2023
290,852
707,993
29,510
432,347
1,460,702
---------
------------
--------
------------
------------
Carrying amount
At 31 December 2023
486,912
1,880,625
13,403
623,836
3,004,776
---------
------------
--------
------------
------------
At 31 December 2022
501,709
1,954,557
10,164
635,362
3,101,792
---------
------------
--------
------------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Motor vehicles
Total
£
£
£
At 31 December 2023
293,703
180,469
474,172
---------
---------
---------
At 31 December 2022
692,680
240,625
933,305
---------
---------
---------
15. Debtors
2023
2022
£
£
Trade debtors
442,542
415,886
Amounts owed by group undertakings
1,603,115
980,551
Prepayments and accrued income
74,277
63,532
Director's loan account
161,337
193,981
Other debtors
11,086
11,086
------------
------------
2,292,357
1,665,036
------------
------------
16. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
17,344
Trade creditors
224,320
248,621
Amounts owed to group undertakings
1,536,649
134,323
Accruals and deferred income
41,028
16,791
Corporation tax
406,408
262,325
Social security and other taxes
195,060
95,789
Obligations under finance leases and hire purchase contracts
183,152
348,334
------------
------------
2,586,617
1,123,527
------------
------------
Included within creditors are hire purchase amounts due within 1 year of £183,152 (2022 - £348,334) secured against the assets to which they relate. Also included within creditors is a bank loan due within 1 year totalling £ nil (2022 - £17,344) secured against the land to which it relates.
17. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loan
192,604
Obligations under finance leases and hire purchase contracts
54,995
110,921
--------
---------
54,995
303,525
--------
---------
Included within creditors are hire purchase amounts due after 1 year of £54,995 (2022 - £110,921) secured against the assets to which they relate. Also included within creditors is a bank loan due after 1 year totalling £ nil (2022 - £192,604) secured against the land to which it relates.
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
183,152
348,334
Later than 1 year and not later than 5 years
54,995
110,921
---------
---------
238,147
459,255
---------
---------
19. Provisions
Deferred tax (note 20)
£
At 1 January 2023
619,643
Additions
( 77,644)
---------
At 31 December 2023
541,999
---------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 19)
541,999
619,643
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
541,999
619,643
---------
---------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 27,664 (2022: £ 25,488 ).
22. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
The Ordinary Shares hold the right to attend and vote at meetings, the right to participate in dividends and the right to participate in distributions.
23. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
457,964
112,088
570,052
Debt due within one year
(500,001)
(1,219,800)
(1,719,801)
Debt due after one year
(303,525)
248,530
(54,995)
---------
------------
------------
( 345,562)
( 859,182)
( 1,204,744)
---------
------------
------------
24. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
165,690
122,681
Later than 1 year and not later than 5 years
87,991
163,575
---------
---------
253,681
286,256
---------
---------
Central Waste (UK) Ltd
Notes to the Financial Statements (continued)
Year ended 31 December 2023
25. Director's advances, credits and guarantees
During the year the director entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the director
Amounts repaid
Balance outstanding
£
£
£
£
Mr D Robinson
193,981
181,377
( 214,021)
161,337
---------
---------
---------
---------
2022
Balance brought forward
Advances/ (credits) to the director
Amounts repaid
Balance outstanding
£
£
£
£
Mr D Robinson
161,809
214,172
( 182,000)
193,981
---------
---------
---------
---------
The director's loan is interest free and repayable on demand.
26. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2023
2022
2023
2022
£
£
£
£
Companies with control over the entity
1,662,005
2,256,713
( 19,673)
765,677
Companies subject to common control or influence
86,139
80,551
------------
------------
--------
---------
During the year the company traded with group companies and received and provided loans within the group. The trading activity was in the normal course of business and at market rate.
27. Controlling party
The company was controlled throughout the year by Central Waste Holdings Limited. The ultimate controlling party is Anchorage Holdings Limited, a company registered in the UK. The registered office of Anchorage Holdings Limited is Lyndhurst, 1 Cranmer Street, Long Eaton, Nottingham, NG10 1NJ.