REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
BINN SKIPS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
BINN SKIPS LIMITED |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 7 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Statement of Financial Position | 12 |
Statement of Changes in Equity | 13 |
Statement of Cash Flows | 14 |
Notes to the Statement of Cash Flows | 15 |
Notes to the Financial Statements | 16 |
BINN SKIPS LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 March 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Bankhead Drive |
City South Office Park |
Portlethen |
Aberdeenshire |
AB12 4XX |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
STRATEGIC REPORT |
for the Year Ended 31 March 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The company's core activities include the provision of waste management services, recycling and recovery of materials and scrap metal trading. |
In the year under review the company's overall turnover increased by 15.73% to £24.2m, a record turnover for the company. Gross margin has increased from 19.50% to 21.91%. Profit before tax increased by 53.62% on the previous year from £1,248,922 to £1,918,615. The directors are very pleased with the results for the year achieved in a highly competitive industry in an uncertain economic climate challenged by high inflation and interest rates, and believe the business is well placed to build on these results in the coming years. |
The company had originally planned to commence RDF operations in February 2024 however we decided to use the equipment purchased to grow our commodity trading presence in the UK. The early signs are looking very promising and we look forward to seeing the impact of this investment in the 2024/25 financial year and beyond. |
Principal risks and uncertainty |
Risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with all regulation and legal requirements is a high priority for the company. |
The company has developed a framework for identifying the risks that the business is exposed to and their impact on economic capital. The process is risk based and uses individual Capital Assessment principles to manage our capital requirements and to ensure we have the financial strength and capital adequacy to support the growth of the business and to meet the requirements of our clients, customers and regulators. |
The principal risks from our principal activity arise from: |
- Our market: potential adverse impact on financial performance of a detrimental change to the competitive and/or economic environment; |
- Operating in a regulated environment: the implication of levies or other financial penalties of a breach of regulation; and |
- Our people: the detrimental effect of a loss in key personnel. |
In addition the company is exposed to financial risks arising primarily from the investments that it holds. These risks are discussed in the section of the directors' report dealing with financial instruments and risk management. Our business strategies are approved by the Board and communicated clearly throughout the business through policy statements and guidelines. |
Key performance indicators |
We have made significant progress throughout the year in relation to key elements of our strategy. The Board monitors the progress of the company by reference to the following key performance indicators: |
2024 | 2023 | 2022 |
Gross profit as a percentage of sales - Waste management services |
18.22% |
14.24% |
15.63% |
Gross profit as a percentage of sales - Metal Trading |
40.95% |
40.58% |
41.52% |
Total gross profit as a percentage of total sales | 21.91% | 19.50% | 20.41% |
Profit before tax as a percentage of sales | 7.95% | 5.97% | 7.29% |
Total sales increase | 15.73% | 4.04% | 51.37% |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
STRATEGIC REPORT |
for the Year Ended 31 March 2024 |
Future events |
The company has committed to a significant investment in new state-of-the-art processing and recycling equipment at Binn Farm, Glenfarg which will drive operational efficiencies, increase recoveries and recycling rates as well as improving profitability. This is currently under construction, and it is anticipated that the new equipment will be fully operational in August 2024. |
The company is continuing to explore business acquisition opportunities that align with our overall strategy to further enhance growth and profitability. |
ON BEHALF OF THE BOARD: |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of waste management services and recycling. |
DIVIDENDS |
Interim dividends per share on the A Ordinary shares were paid as follows: |
£0.018125 | - 30 June 2023 |
£0.020625 | - 30 September 2023 |
£0.020625 | - 31 December 2023 |
£0.020625 | - 31 March 2024 |
£0.080000 |
Interim dividends per share on the Ordinary shares were paid as follows: |
£71,250.00 | - 31 December 2023 |
£71,250.00 |
The directors recommend that no final dividend be paid on these shares. |
The total distribution of dividends for the year ended 31 March 2024 will be £349,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 March 2024 |
FINANCIAL INSTRUMENTS |
Treasury operations and financial instruments |
The company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and inherent rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied. |
Given the size of the company, the directors have not delegated responsibility of managing financial risk management to a sub-committee of the Board. The policies set by the board of directors are implemented by the company's finance department. |
Liquidity risk |
The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure that the company has sufficient funds available for operations and planned expansions. |
Interest rate risks |
The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances which earns interest at a fixed rate. The company has a policy of maintaining debt at a fixed rate to ensure certainty of future interest and cash flows. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. |
Price risk |
The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors shall revisit the appropriateness of this policy should the company's operations change in size or nature. The company has no exposure to equity securities price risk as it holds no list or other equity investments. |
Credit risk |
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. Where debt finance is utilised, this is subject to pre-approval by the board of directors and such approval is limited to financial institutions with an AA rating or better. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board. |
Business risk |
Business risk is contained because the company's business is well diversified across retail, new build, trade and commercial sectors. The company has much greater business diversity than any of its major competitors. However we are aware that unforeseen events could arise that might affect the individual market sectors in which we operate, but our overall assessment is that such events are unlikely in the short and medium term. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen to set out in the review of the business information required to be stated in relation to the director's report, specifically, likely future developments of the business. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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. |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 March 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Acumen Accountants and Advisors Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BINN SKIPS LIMITED |
Opinion |
We have audited the financial statements of Binn Skips Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, 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 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 March 2024 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. |
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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BINN SKIPS LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks identified include: |
- UK GAAP |
- Companies Act 2006 |
- Corporation Tax legislation |
- VAT legislation |
- Health and Safety legislation |
We gained an understanding of how the company is complying with these laws and regulations by: |
- enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims; |
- enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussions with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error: |
- reviewing the level of and reasoning behind the company's procurement of legal and professional services; |
- performing audit procedures over the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by the management in their calculation of accounting estimates for potential management bias. |
Our audit procedures were designed to respond to the risk of material misstatement in the financial statements, recognising that the risk of not detecting a material risk due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BINN SKIPS LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Bankhead Drive |
City South Office Park |
Portlethen |
Aberdeenshire |
AB12 4XX |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
INCOME STATEMENT |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,905,549 | 1,213,925 |
Other operating income | 5 |
OPERATING PROFIT | 8 |
Interest receivable and similar income |
2,097,165 | 1,389,883 |
Interest payable and similar expenses | 10 |
PROFIT BEFORE TAXATION |
Tax on profit | 11 |
PROFIT FOR THE FINANCIAL YEAR |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
STATEMENT OF FINANCIAL POSITION |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investment property | 15 |
CURRENT ASSETS |
Stocks | 16 |
Debtors | 17 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 19 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 23 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Revaluation reserve | 25 |
Non distributable reserves | 25 |
Retained earnings | 25 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 March 2024 |
Called up | Non |
share | Retained | Revaluation | distributable | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
STATEMENT OF CASH FLOWS |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Loan movements in year - other parties | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year |
Amount introduced by directors | 526,623 | 340,261 |
Amount withdrawn by directors | (381,039 | ) | (464,273 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 753,077 | 940,882 |
Cash and cash equivalents at end of year | 2 |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE STATEMENT OF CASH FLOWS |
for the Year Ended 31 March 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 178,550 | 140,961 |
Finance income | (11,155 | ) | (11,464 | ) |
3,879,819 | 2,956,286 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 1,380,665 | 753,557 |
Bank overdrafts | ( |
) | ( |
) |
1,379,762 | 753,077 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 753,557 | 951,507 |
Bank overdrafts | ( |
) | ( |
) |
753,077 | 940,882 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 753,557 | 627,108 | 1,380,665 |
Bank overdrafts | (480 | ) | (423 | ) | (903 | ) |
753,077 | 1,379,762 |
Debt |
Finance leases | (3,750,624 | ) | (86,329 | ) | (3,836,953 | ) |
Debts falling due within 1 year | (22,000 | ) | (219,694 | ) | (241,694 | ) |
Debts falling due after 1 year | (22,000 | ) | 22,000 | - |
(3,794,624 | ) | (284,023 | ) | (4,078,647 | ) |
Total | (3,041,547 | ) | 342,662 | (2,698,885 | ) |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Binn Skips Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Revenue represents amounts received and receivable, net of VAT and trade discounts, for goods and services in the ordinary course of business. Revenue from supplying services is recognised when those services are completed and invoiced. Revenue from the sale of recycling materials is recognised when the materials have been despatched and invoiced. |
Goodwill |
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 10 years. |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Land, included within long leasehold, is considered to have an infinite useful life and is therefore not depreciated. |
The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
Investment property |
Investment property is included at fair value. Any aggregate surplus or deficit arising from changes in fair value is recognised in the income statement. Deferred taxation is provided on these adjustments at the rate expected to apply when the property is sold. |
No depreciation is provided for in respect of investment properties in accordance with FRS 102. Such properties are held for their investment potential and not for consumption within the business. This is a departure from the Companies Act 2006 which requires all properties to be depreciated and the directors consider that to depreciate them would not enable the financial statements to give a true and fair view. Investments properties are stated at their fair value at the balance sheet date. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
Income from operating leases is recognised on a straight line basis over the lease term. |
Rentals payable under operating leases are charged against income on a straight line basis over the lease term. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable. The company also makes contributions to personal pension funds for certain employees who are not in the company's defined contribution scheme. |
Grants |
Grants are credited to deferred revenue. Based on the accruals model, grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred. |
A government grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs, is recognised in profit or loss of the period in which it becomes receivable. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
5. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Rents received |
Sundry receipts | 85,774 | 53,649 |
Renewable heat incentive |
180,461 | 164,494 |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
6. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 5 | 5 |
Operations | 121 | 113 |
Administration | 10 | 9 |
Sales | 7 | 8 |
7. | DIRECTORS' EMOLUMENTS |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
8. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Goodwill amortisation |
9. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
12,237 |
12,000 |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest |
Hire purchase |
11. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) |
Loss carried forward |
Prior year |
Group relief | ( |
) |
Deferred tax movement |
Total tax charge | 444,179 | 207,872 |
12. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim |
A Ordinary shares of £1 each |
Interim |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
13. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
AMORTISATION |
At 1 April 2023 |
Amortisation for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
14. | TANGIBLE FIXED ASSETS |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) |
Reclassification/transfer | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
Reclassification/transfer | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
14. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Reclassification/transfer |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Included within long leasehold is land of £10,000 (2023: £10,000) which is not depreciated. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Transfer to ownership | (252,751 | ) | (353,710 | ) | (606,461 | ) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Transfer to ownership | (135,746 | ) | (312,565 | ) | (448,311 | ) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
15. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2023 |
Reclassification/transfer | (300,563 | ) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
16. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | 268,605 | 414,189 |
Prepayments and accrued income |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 20) |
Other loans (see note 20) |
Hire purchase contracts (see note 21) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 559,721 | 405,680 |
Other creditors |
Accruals and deferred income |
The company was advanced a loan of £110,000 in December 2019. The loan is repayable in 60 monthly instalments. The rate of interest is 3.75% per annum. |
The company was advanced a loan of £172,924 in December 2023. The loan is repayable in 10 monthly instalments. The rate of interest is 5.35% per annum. |
The company was advanced a loan of £89,321 in March 2024. The loan is repayable in 10 monthly instalments. The rate of interest is 5.28% per annum. |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Other loans (see note 20) |
Hire purchase contracts (see note 21) |
20. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Other loans |
Amounts falling due between one and two years: |
Other loans - 1-2 years | - |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Invoice factoring advance | 535,996 | 904,577 |
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned. |
A bond and floating charge is held over the whole assets of the company. |
There is a cross guarantee between the company, its parent company and its fellow subsidiaries in favour of HSBC Bank plc. |
The invoice factoring advance is secured over £1,899,006 (2023: £1,740,815) of the company's trade debtors under an Invoice Factoring Agreement with HSBC. |
23. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 1,404,517 | 1,100,928 |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Provided during year |
Balance at 31 March 2024 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 4 | 4 |
A Ordinary | £1 | 800,000 | 800,000 |
800,004 | 800,004 |
Holders of Ordinary Shares are entitled to attend and vote at general meetings of the company. |
Holders of 'A' Ordinary Shares are entitled to receive notice of all general meetings but are not entitled to attend or vote. |
All Shares rank pari passu as regards capital distributions but the company may declare and pay differing levels of dividends on each separate class of Share, in such amounts and in such proportions to the holders of the Ordinary Shares and the 'A' Ordinary Shares respectively, as the directors may from time to time determine. |
25. | RESERVES |
Non |
Retained | Revaluation | distributable |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 April 2023 | 3,758,958 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 March 2024 | 4,884,394 |
BINN SKIPS LIMITED (REGISTERED NUMBER: SC223118) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
26. | PENSION COMMITMENTS |
The company's pension cost for the year was £334,884 (2023: £284,131). Outstanding contributions as at the year end totalled £55,437 (2023: £30,551) in relation to employers and employees contributions. |
27. | ULTIMATE PARENT COMPANY |
The ultimate parent company is of the company, are available from the company secretary at 5 Atholl Crescent, Edinburgh, EH3 8EJ. |
28. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements |
29. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 March 2024 and 31 March 2023: |
2024 | 2023 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The above loans are interest free and there are no fixed repayment terms. |
30. | RELATED PARTY DISCLOSURES |
Key management personnel compensation for the year ended 31 March 2024 was £814,702 (2023: £612,344). |
During the year the company transacted with a related party. As at 31 March 2024 there is a nil balance due from (2023: £13,924) the related party to the company. The loan is interest free and repayable on demand. |
31. | ULTIMATE CONTROLLING PARTY |
The company is ultimately controlled by the Group Limited. |