Company registration number 09073239 (England and Wales)
PHOENIX ADVANCE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PHOENIX ADVANCE LIMITED
COMPANY INFORMATION
Directors
P C L Knight
S J Marriott
(Appointed 1 January 2024)
R Bentley
(Appointed 1 January 2024)
Mr M L Turner
Company number
09073239
Registered office
1 Victoria Stables
Essex Way
Bourne
Lincolnshire
PE10 9JZ
Auditor
KPMG LLP
EastWest
Tollhouse Hill
Nottingham
NG1 5FS
Bankers
Lloyds Bank plc
Citymark
150 Fountainbridge
Edinburgh
EH3 9PE
Solicitors
Hegarty LLP
48 Broadway
Peterborough
PE1 1YW
PHOENIX ADVANCE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 7
Statement of directors' responsibilities
7
Independent auditor's report to the members of Phoenix Advance Limited
8 - 11
Statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 34
PHOENIX ADVANCE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

After the trials and tribulations’ of 2022 that saw inflation rising sharply and The Bank of England forced into raising interest rates in an attempt to curb the rising cost of living, 2023 saw inflation rate peak during mid-2023 before easing back in the latter half of the year. The annual rate of “core inflation”, which excludes the volatile energy and food components of the CPI, peaked at 7.1% in May 2023, its highest rate since 1992. Metal prices, which represent a high proportion of our income, held up well in the first half of the year before unfortunately starting a gradual fall off in the second half of the year, this coupled with the construction industry feeling the effects of the country moving towards a recession, the overall performance of the Group was to fall short of budgeted EBITDA for the whole year.

 

Overall turnover was down by 3.2% over the previous period, despite this the Group will be posting Profits Before Tax similar to year 2022 at £18,383k.

 

The health and well-being of its people is the Group’s number one priority, with strong emphasis on Health and Safety at all sites. Due to the dedication, commitment and hard work of its people, the Group continues to function adequately with all 11 production sites operating throughout the year. There were three serious accidents in the year, with two being RIDDOR reportable for lost time injury.

 

The Environment Agency had reissued the Regulatory Position Statement (“RPS”) that governs the use and application of the Group’s recycled aggregate product, Incinerator Bottom Ash Aggregate, (“IBAA”), in its current form with no major amendments, in January 2023. This latest version, RPS248, is valid until 31 January 2025. Industry bodies, of which the Group is a member, continue their dialogue with The Environment Agency with regards to seeking a more permanent regulatory regime for the use of IBAA.

 

Future developments

The Group continues to pursue improvements to existing processing plants to improve the health and safety of its employees and better separation of products sold to customers. New IBA processing contracts, and IBAA products are being explored, with the possibility of further new sites being built when long term contracts are secured to support such investment.

 

The Group has contracts to receive 1.5 million tonnes of IBA for processing in 2024, with opportunities for additional amounts also being pursued.

Financial risk management objectives and policies

Some of the Group’s product selling prices are linked to wider supply and demand commodity pricing. The Group operates a through put model, and so some prices rise and fall with their associated commodity benchmark. The Group does not take speculative positions on the future price of its commodity price linked products.

 

The Group uses financial instruments, which include cash and other items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's working capital requirements and provide funding for capital expenditure where required.

 

The existence of these financial instruments exposes the Group to a number of financial risks, which are described in more detail below.

 

The Group policy throughout the year has been to manage these risks through the day to day involvement of management in business decisions. The directors review and agree policies for managing each of these risks.

PHOENIX ADVANCE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Liquidity risk

The Group seeks to manage such risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

 

Interest rate risk

The Company finances its operations through retained profits, bank facilities and lease agreements. Competitive rates of interest are sought from the market when new interest bearing finance is brought into the business operation. The balance sheet includes trade debtors and creditors which do not attract interest.

 

Foreign exchange risk

While the Group trades predominately in Sterling, Euro cash flows are also managed. The Group seeks to firstly match common currency payments and receipts, taking into account future cash flow requirements, to minimise exposure to exchange rate movement and to minimise foreign exchange costs.

 

Credit risk

The principal credit risk arises from the Group's trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis with debt ageing and collection history, influencing insured limits agreed between the Group and credit insurers from time to time.

 

Metal pricing risk

Blue Phoenix Group BV have implemented commodity hedging to lock in forward position for metal sales with the aims to reduce risk exposure on commodity sales, lock in value of high metal price levels (compared to historic 10-year average) and improve its commercial position by having hedging tools in place.

On behalf of the board

R Bentley
Director
4 September 2024
PHOENIX ADVANCE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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 a holding company together with the provision of management services.

 

The principal activity of the group is the processing and marketing of incinerator bottom ash (IBA).

Directors

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

P C L Knight
D M York
(Resigned 1 January 2024)
S J Marriott
(Appointed 1 January 2024)
R Bentley
(Appointed 1 January 2024)
Mr M L Turner
Results and dividends

The results for the year are set out on page 12.

The company declared ordinary dividends amounting to £11,507,600 in the year (2022: £7,000,000). Following the year end, ordinary dividends amounting to £12,840,000 have been paid.

Section 172(1) Statement - Promoting the success of the company
Phoenix Advance Limited is a wholly owned subsidiary of Blue Phoenix Group B.V. (the "Group") and therefore is subject to and abides by all Group policies and procedures. The governance framework of the Group delegates authority for local decision making to the Company up to defined levels of cost and impact. Reports are regularly made to the Group Board by the business units about the strategy, performance and key decisions taken which provides the Group Board with assurance that proper consideration is given to stakeholder interests in decision making.

The Board and management of the Company places significant importance on the strength of its relationships with all its stakeholders to promote the sustainable success of the Company. In order to fulfil their duties, the Directors of the Company, and the Group itself take care to have regard to the likely consequences on all stakeholders of the decisions and actions which they take. Such considerations ensure the business is making decisions with a longer term view in mind and with the sustainable success of the business is at its core.

Where possible, decisions are carefully discussed with affected groups and are therefore fully understood and supported when taken. Details of the Company's key stakeholders and how we engage with them are set out below:
Shareholder
We rely on the support of our shareholder, and its opinions are important to us. We have an open dialogue with our shareholder through regular one-to-one meetings and reporting to the Group Board.
Discussions cover a wide range of topics including financial performance, strategy, outlook, governance and ethical practices.

Colleagues
We are enabled by our highly engaged colleagues and winning culture. Our people are key to the Company's success and we want them to be successful individually and as a team. There are many ways we engage with and listen to our people including colleague surveys, regular meetings, face-to-face briefings, and newsletters. Key areas of focus include business updates, new products and services, health and wellbeing, inclusivity programmes, development opportunities, pay and benefits. Regular reports about what is important to our colleagues are made to the Board ensuring consideration is given to colleague needs.
PHOENIX ADVANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Customer
Our vision is to be the partner of choice for the energy from waste industry in the field of recycling IBA and the provider of quality recycled products to the construction and metals recovery industries. We build relationships with our customers and spend considerable time to understand their needs and views and listen to how we can improve our offer and service.

Suppliers
We build strong relationships with our suppliers to develop mutually beneficial and lasting partnerships. Engagement with suppliers is primarily through a series of interactions and formal reviews. Key areas of focus include innovation, product development, health and safety and sustainability.

Communities and the environment
We engage with the communities in which we operate to build trust and understand the local issues that are important to them. Key areas of focus include how we can support local causes and issues, create opportunities to recruit and develop local people and help to look after the environment. In consultation with our colleagues we select one main charity partner to work with across the business but also work with local charities and organisations at a site level to raise awareness and funds.
Government and regulators
We engage with the government and regulators through a range of industry consultations, forums, meetings and conferences to communicate our views to policy makers relevant to our business. Key areas of focus are compliance with laws and regulations, health and safety and product safety. The Board is updated on legal and regulatory developments and takes these into account when considering future actions.
Auditor

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

PHOENIX ADVANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Energy and carbon report
2023
2022
Emissions of CO2 equivalent
Metric tonnes
Metric tonnes
Metric tonnes
Metric tonnes
Scope 1 - direct emissions
- Gas combustion
0.10
0.70
- Fuel consumed for owned transport
263.50
65.10
263.60
65.80
Scope 2 - indirect emissions
- Electricity purchased
260.40
228.70
Scope 3 - other indirect emissions
- Fuel, energy related activities and HVO
471.00
812.30
- Waste generated in operations
5.00
0.90
- Mains Water supply
14.40
15.70
- Business travel
67.80
6.90
- Employee commuting
125.50
164.50
Total gross emissions
1,207.70
1,294.80
Intensity ratio
KG of GHG for 1 tonne IBA processed
0.86
0.89
Quantification and reporting methodology

DEFRA Carbon Factors 2018 has been used as the methodology for calculating the company’s emissions.

PHOENIX ADVANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

Key assumptions

1. Use of HVO fuels has reduced carbon emissions from fuels used on sites

 

Phoenix Advance Ltd follow the guidance set out in PAS 2060 White Paper which follows ISO 14000 series and PAS 2050 ‘the assessment of life cycle green house emissions of goods and services’. To ensure compliance with standards we follow ISO 14064-1 (measure) and EN 16001 (reduction) of GHG within the business. Each year we produce an externally audited report (2023, RSK plc were the authors) which is made available to our clients and customers.

 

The business involves all personnel at all levels for ideas towards a more sustainable future; with their involvement we are confident of achieving our goal.

PHOENIX ADVANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Directors’ Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the group and parent company financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 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 group and parent company and of their profit or loss for that period. In preparing each of the group and parent company financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect 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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
R Bentley
Director
4 September 2024
PHOENIX ADVANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PHOENIX ADVANCE LIMITED
- 8 -
Opinion

We have audited the financial statements of Phoenix Advance Limited (“the Company”) for the year ended 31 December 2023 which comprise the group profit and loss account and other comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group cash flow statement and related notes, including the accounting policies in note 1.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Group or the Company or to cease their operations, and as they have concluded that the Group and the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

 

In our evaluation of the directors’ conclusions, we considered the inherent risks to the Group’s business model and analysed how those risks might affect the Group and Company’s financial resources or ability to continue operations over the going concern period.

 

Our conclusions based on this work:

 

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Group or the Company will continue in operation.

PHOENIX ADVANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PHOENIX ADVANCE LIMITED
- 9 -

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

 

As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries.

 

On this audit we do not believe there is a fraud risk related to revenue recognition because there are limited incentives, rationalisations and opportunities to fraudulently adjust revenue recognition.

 

We did not identify any additional fraud risks.

 

In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of some of the Company-wide fraud risk management controls.

We also performed procedures including:

Identifying and responding to risks of material misstatement related to compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors and other management (as required by auditing standards),and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, data protection laws, anti-bribery, employment law, regulatory capital and certain aspects of company legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

PHOENIX ADVANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PHOENIX ADVANCE LIMITED
- 10 -

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. 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.

Strategic report and directors' report

The directors are responsible for the strategic report and the directors’ report. Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon.

 

Our responsibility is to read the strategic report and the directors’ report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:

 

Matters on which we are required to report by exception

Under the Companies Act 2006, we are required to report to you if, in our opinion:

 

We have nothing to report in these respects.

Responsibilities of directors

As explained more fully in their statement set out on page 7, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Group and parent 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 they either intend to liquidate the Group or the parent 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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

 

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

 

PHOENIX ADVANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PHOENIX ADVANCE LIMITED
- 11 -

The purpose of our audit work and to whom we owe our responsibilities

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.

Thomas Atkinson (Senior Statutory Auditor)
For and on behalf of KPMG LLP
Statutory Auditor
Chartered Accountants
EastWest
Tollhouse Hill
Nottingham
NG1 5FS
4 September 2024
PHOENIX ADVANCE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£'000
£'000
Turnover
3
78,276
80,869
Cost of sales
(49,938)
(49,638)
Gross profit
28,338
31,231
Administrative expenses
(10,655)
(10,621)
Exceptional item
4
-
0
(6,138)
Operating profit
7
17,683
14,472
Other interest receivable and similar income
10
140
-
0
Interest payable and similar expenses
11
(1,016)
(1,349)
Realised and unrealised gains & losses on derivatives
5
(28)
1,329
Profit before taxation
16,779
14,452
Tax on profit
12
(4,699)
(3,251)
Profit for the financial year
12,080
11,201
PHOENIX ADVANCE LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Goodwill
14
1,102
3,310
Tangible assets
17
14,869
18,124
15,971
21,434
Current assets
Stocks
18
848
760
Debtors
19
12,466
11,482
Cash at bank and in hand
4,768
13,944
18,082
26,186
Creditors: amounts falling due within one year
20
(14,744)
(13,316)
Net current assets
3,338
12,870
Total assets less current liabilities
19,309
34,304
Creditors: amounts falling due after more than one year
21
(13,132)
(28,542)
Provisions for liabilities
Deferred tax liability
25
(430)
(587)
(430)
(587)
Net assets
5,747
5,175
Capital and reserves
Called up share capital
27
2
2
Share premium account
92
92
Profit and loss reserves
5,653
5,081
Total equity
5,747
5,175
The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
04 September 2024
R Bentley
Director
Company registration number 09073239 (England and Wales)
PHOENIX ADVANCE LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 14 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Investments
15
28,940
28,940
Current assets
-
-
Creditors: amounts falling due within one year
20
(14,728)
(284)
Net current liabilities
(14,728)
(284)
Total assets less current liabilities
14,212
28,656
Creditors: amounts falling due after more than one year
21
(12,350)
(27,256)
Net assets
1,862
1,400
Capital and reserves
Called up share capital
27
2
2
Share premium account
92
92
Profit and loss reserves
1,768
1,306
Total equity
1,862
1,400

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £11,970,000 (2022 - £4,306,000)

The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
04 September 2024
R Bentley
Director
Company Registration No. 09073239
PHOENIX ADVANCE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
Balance at 1 January 2022
2
92
880
974
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
11,201
11,201
Dividends
13
-
-
(7,000)
(7,000)
Balance at 31 December 2022
2
92
5,081
5,175
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
12,080
12,080
Dividends
13
-
-
(11,508)
(11,508)
Balance at 31 December 2023
2
92
5,653
5,747
PHOENIX ADVANCE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
Balance at 1 January 2022
2
92
4,000
4,094
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
4,306
4,306
Dividends
13
-
-
(7,000)
(7,000)
Balance at 31 December 2022
2
92
1,306
1,400
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
11,970
11,970
Dividends
13
-
-
(11,508)
(11,508)
Balance at 31 December 2023
2
92
1,768
1,862
PHOENIX ADVANCE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
33
24,549
17,953
Interest paid
(1,016)
(1,349)
Income taxes paid
(3,340)
(3,202)
Net cash inflow from operating activities
20,193
13,402
Investing activities
Purchase of tangible fixed assets
(2,146)
(2,373)
Interest received
140
-
0
Net cash used in investing activities
(2,006)
(2,373)
Financing activities
Repayment of borrowings
(14,905)
(1,000)
Payment of finance lease liabilities
(950)
(1,035)
Dividends paid to equity shareholders
(11,508)
(7,000)
Net cash used in financing activities
(27,363)
(9,035)
Net (decrease)/increase in cash and cash equivalents
(9,176)
1,994
Cash and cash equivalents at beginning of year
13,944
11,950
Cash and cash equivalents at end of year
4,768
13,944
PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
1
Accounting policies
Company information

Phoenix Advance Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered number is 09073239 and the registered office is 1 Victoria Stables, Essex Way, Bourne, Lincolnshire, PE10 9JZ.

 

The group consists of Phoenix Advance Limited and all of its subsidiaries.

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 group. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiary undertakings made up to 31 December 2023. A subsidiary is an entity that is controlled by the parent. The results of subsidiary undertakings are included in the consolidated profit and loss account from the date that control commences until the date that control ceases. Control is established when the Company has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable.

 

Under Section 408 of the Companies Act 2006 the Company is exempt from the requirement to present its own profit and loss account.

 

In the parent financial statements, investments in subsidiaries are carried at cost less impairment.

1.3
Going concern

The Directors continue to adopt the going concern basis in preparing the financial statements which they consider to be appropriate for the following reasons.

 

Forecasts have been prepared for the 12 months following the date of approval of these financial statements showing continued profitability and positive cash generation, even when taking into account reasonably possible downsides and pressure on the cost base. These forecasts indicate that the Group is expected to be able to operate within the level of its current cash position and available facilities and that the Group will have sufficient funds to meet it's liabilities as they fall due for that period.

 

The Group funds its working capital requirements from its available cash balances as well as holding company loan facilities (more detail of which given in note 23). These holding company loans (being from the Group headed by Blue Phoenix Group B.V., together the “Blue Phoenix Group”) are long term in nature, although can be recalled should the group breach its financial covenants, with these covenants being measured on a Blue Phoenix Group wide basis. The Directors consider the likelihood of such a recall of the holding company loans to be low.

 

The Directors have therefore made appropriate enquiries and reviewed the forecasts prepared by the Blue Phoenix Group. These forecasts indicate that the Blue Phoenix Group will be able to comply with the relevant covenants even in reasonably possible downside scenarios at the Blue Phoenix Group level. Consequently, the Directors are confident that the Group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.4
Turnover

Turnover represents income receivable from the processing and marketing of incinerator bottom ash in the period exclusive of Value Added Tax and trade discounts.

 

For all streams of income i.e. gate fees, management fees, sale of aggregates and metals, revenue is recognised when the product leaves the site for either processing (in the case of metals) or delivery to a customer.

 

One of the Group's income streams is the receipt of a tonnage fee from incinerator operators for taking IBA from them and thereby reducing their landfill burden. Owing to the nature and location of each site, some contracts provide for this fee to be paid on collection or delivery of the OBA to our processing site, whereas others provide for payment when the processed material leaves the site. The directors believe the most appropriate accounting policy is that revenue is recognised with the contractual position.

1.5
Research and development expenditure

Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same year unless the directors are satisfied as to the technical, commercial and financial viability of the individual projects. In this situation, the expenditure is capitalised and amortised over the period from which the group is expected to benefit.

1.6
Intangible fixed assets
Goodwill is the difference between the amount paid on the acquisition of a business and the aggregate fair value of its separable net assets. Goodwill is stated cost less any accumulated amortisation and accumulated impairment losses. Goodwill is allocated to cash-generating units or a group of cash-generating units that are expected to benefit from the synergies of the business combination from which it arose. Goodwill is amortised on a straight line basis over its useful life. Goodwill has no residual value. The finite useful life of goodwill is estimated to be 10 years.
1.7
Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

 

Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example land is treated separately from buildings.

 

Leases in which the entity assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other leases are classified as operating leases. Leased assets acquired by way of finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present value of the leased asset or, if lower, the present value of the minimum lease payments. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. Lease payments are accounted for as described at 1.12 below.

 

The Group assesses at each reporting date whether tangible fixed assets (including those leased under a finance lease) are impaired.

Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. Land is not depreciated. The estimated useful lives are as follows:

Land
Not depreciated
Plant and equipment
5-10 years straight line
Fixtures and fittings
33.33% per annum straight line
PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the first-in first-out principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to the existing location and condition. In the case of manufactured stocks and work in progress, cost where appropriate includes a share of overheads based on normal operating capacity.

1.9
Financial instruments

Trade and other debtors / creditors

 

Trade and other debtors are recognised initially at transaction price. Trade and other creditors are raised initially at transactions price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors.

 

Interest-bearing borrowings classified as basic financial instruments

 

Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

Investments in ordinary shares

 

Investments in equity instruments are measured initially at fair value, which is normally the transaction price. Transaction costs are excluded if the investments are subsequently measured at fair value through profit and loss. Subsequent to initial recognition investments that can be measured reliably are measured at fair value with changes recognised in profit or loss. Other investments are measured at cost less impairment in profit or loss.

 

Cash and cash equivalents

 

Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Group's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

 

Derivative financial instruments and hedging

 

Derivative financial instruments and hedging in relation to intercompany metal price swaps are recognised at fair value. The gain or loss on remeasurement to fair value is recognised immediately and shown as a separate line in the Profit and Loss Account.

1.10
Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Deferred tax

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

 

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted.

 

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.

1.11
Employee benefits

Defined contribution plans and other long term employees benefits

 

A defined contribution plan is a post-employment benefit plan under which the Group pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.

1.12
Expenses

Operating lease

 

Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense.

 

Finance lease

 

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred.

Interest payable and Interest receivable

 

Interest payable and similar expenses include interest payable, finance expenses on shares classified as liabilities and finance leases recognised in profit or loss using the effective interest method, and unwinding of the discount on provisions.

 

Other interest receivable and similar income includes interest receivable on funds invested.

 

Interest income and interest payable are recognised in profit and loss as they accrue, using the effective interest method. Dividend income is recognised in the profit and loss account on the date the entity's right to receive payments is established.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.13
Foreign exchange

Transactions in foreign currencies are translated to the Group's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account within administrative expenses.

1.14

Dividends

Final dividends are only provided if they have been declared before the balance sheet date.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

The directors believe that there are no judgements that have a significant effect on the financial statements and no estimates with a risk of material adjustment in the next year.

3
Turnover and other revenue
2023
2022
£'000
£'000
Turnover analysed by geographical market
United Kingdom and Eire
59,722
60,886
Europe
18,554
19,983
78,276
80,869
4
Exceptional item
2023
2022
£'000
£'000
Expenditure
Bonus payments
-
6,138

During the prior year, bonus payments were made payable to the staff (£1.313m) and directors (£4.825m) following the sale of the Blue Phoenix Group. This amount includes National Insurance contributions.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
5
Realised and unrealised gains & losses on derivatives

The (gains)/losses on derivatives relates to metal price swaps with Blue Phoenix Group BV and is separately disclosed below operating profit on the face of the profit and loss account.

 

These swaps are related to the exposure of copper and aluminium prices that are allocated from group level to Blue Phoenix Limited.

 

The total of realised gains for the year were £1,126k (2022 £646k losses).

 

The total of unrealised losses for the year were £1,154k (2022 £1,975k gains).

6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
17
11
Audit of the financial statements of the company's subsidiaries
100
80
117
91
For other services
All other non-audit services
-
30
7
Operating profit
2023
2022
£'000
£'000
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
63
(389)
Research and development costs
47
209
Depreciation of tangible fixed assets
5,218
5,149
Amortisation of intangible assets
2,208
2,208
8
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
37
40
-
-
Operational
112
116
-
-
Administration
31
25
-
-
Total
180
181
-
0
-
0
PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Wages and salaries
8,359
13,306
-
0
-
0
Social security costs
945
1,847
-
-
Pension costs
583
555
-
0
-
0
9,887
15,708
-
0
-
0

Included within aggregate remuneration above is £nil (2022: £5,338k) in wages and salaries and £nil (2022: £800k) in social security costs in relation to bonuses paid. These amounts have been included within exceptional items on the face of the profit and loss account. See note 4 for further details.

                        

9
Directors' remuneration
2023
2022
£'000
£'000
Remuneration for qualifying services
557
5,419
Group pension contributions to defined contribution schemes
33
35
Employee benefits
6
-
596
5,454

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£'000
£'000
Remuneration for qualifying services
420
4,999
Group pension contributions to defined contribution schemes
33
25
Employee benefits
2
-
455
5,024

Included within directors remuneration were bonus payments that have been included within exceptional items - see note 4.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
10
Interest receivable and similar income
2023
2022
£'000
£'000
Interest income
Other interest income
140
-
11
Interest payable and similar expenses
2023
2022
£'000
£'000
Interest on financial liabilities measured at amortised cost:
Interest on finance leases and hire purchase contracts
72
110
Interest payable to group undertakings
885
1,037
Bank fees
59
202
1,016
1,349
PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Taxation
2023
2022
£'000
£'000
Current tax
UK corporation tax on profits for the current year
4,856
3,317
Deferred tax
Origination and reversal of timing differences
(157)
(51)
Changes in tax rates
-
0
(15)
Total deferred tax
(157)
(66)
Total tax charge for the year
4,699
3,251

On 1 April 2023 the UK tax rate increased from 19% to 25%. This has had a consequential effect on the company's tax charge.

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

2023
2022
£'000
£'000
Profit before taxation
16,779
14,452
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
4,195
2,746
Tax effect of expenses that are not deductible in determining taxable profit
554
419
Tax effect of income not taxable in determining taxable profit
(2)
-
0
Effect of change in corporation tax rate
(307)
-
Permanent capital allowances in excess of depreciation
(9)
-
0
Depreciation in excess of capital allowances
268
101
Difference in tax rate on deferred tax balances
-
0
(15)
Taxation charge for the year
4,699
3,251
13
Dividends
2023
2022
Recognised as distributions to equity holders:
£'000
£'000
Interim paid
11,508
7,000

Following the year end, ordinary dividends amounting to £12,840,000 have been paid.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
14
Intangible fixed assets
Group
Goodwill
£'000
Cost
At 1 January 2023 and 31 December 2023
22,076
Amortisation and impairment
At 1 January 2023
18,766
Amortisation charged for the year
2,208
At 31 December 2023
20,974
Carrying amount
At 31 December 2023
1,102
At 31 December 2022
3,310
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
16
-
0
-
0
28,940
28,940
Movements in fixed asset investments
Company
Shares in subsidiaries
£'000
Cost or valuation
At 1 January 2023 and 31 December 2023
28,940
Carrying amount
At 31 December 2023
28,940
At 31 December 2022
28,940
PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Blue Phoenix Limited (previously Ballast Phoenix Limited)
England and Wales
Processing and marketing of IBA
Ordinary
100.00
Ballast Phoenix Limited (previously Blue Phoenix Limited)
England and Wales
Dormant
Ordinary
100.00
Blue Phoenix Group Limited
England and Wales
Dormant
Ordinary
100.00

Blue Phoenix Limited has a registered address of 1 Victoria Stables, Essex Way, Bourne, Lincolnshire, PE10 9JZ.

 

Ballast Phoenix Limited has a registered address of 1 Victoria Stables, Essex Way, Bourne, Lincolnshire, PE10 9JZ.

 

Blue Phoenix Group Limited has a registered address of 1 Victoria Stables, Essex Way, Bourne, Lincolnshire, PE10 9JZ.

 

 

17
Tangible fixed assets
Group
Land
Assets under construction
Plant and equipment
Fixtures and fittings
Total
£'000
£'000
£'000
£'000
£'000
Cost
At 1 January 2023
909
947
56,631
172
58,659
Additions
-
0
777
1,369
-
0
2,146
Amounts written off
-
0
(75)
(108)
-
0
(183)
At 31 December 2023
909
1,649
57,892
172
60,622
Depreciation and impairment
At 1 January 2023
-
0
-
0
40,363
172
40,535
Depreciation charged in the year
-
0
-
0
5,218
-
0
5,218
At 31 December 2023
-
0
-
0
45,581
172
45,753
Carrying amount
At 31 December 2023
909
1,649
12,311
-
0
14,869
At 31 December 2022
909
947
16,268
-
0
18,124
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.

At the year end the net carrying amount of Plant and Equipment leased under finance lease was £nil (2022: £847,132).

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
18
Stocks
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Raw materials and consumables
848
760
-
-

The write-down of stocks to net realisable value amounted to £0 (2022:£0).

19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
6,023
5,764
-
0
-
0
Amounts owed by group undertakings
5,358
4,187
-
-
Intercompany financial instruments - note 24
56
1,211
-
0
-
0
Prepayments and accrued income
1,029
320
-
0
-
0
12,466
11,482
-
-

Amounts owed by group undertakings are due under one year and are repayable on demand. No interest is charged in respect of these balances.

 

20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£'000
£'000
£'000
£'000
Obligations under finance leases
22
450
896
-
0
-
0
Trade creditors
7,178
5,355
-
0
-
0
Amounts owed to group undertakings
611
138
14,586
284
Corporation tax payable
3,252
1,736
142
-
0
Other taxation and social security
376
653
-
-
Intercompany financial instruments
24
-
0
-
0
-
0
-
0
Accruals and deferred income
2,877
4,538
-
-
14,744
13,316
14,728
284

Amounts due to group undertakings are repayable on demand. No interest is charged in respect of these balances.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£'000
£'000
£'000
£'000
Obligations under finance leases
22
782
1,286
-
0
-
0
Loans from group undertakings
23
12,350
27,256
12,350
27,256
13,132
28,542
12,350
27,256
22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Future minimum lease payments due under finance leases:
Within one year
450
896
-
0
-
0
In two to five years
782
1,286
-
0
-
0
1,232
2,182
-
-

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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Finance lease and hire purchase creditors are secured on the assets concerned.

23
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Loans from group undertakings
12,350
27,256
12,350
27,256
Payable after one year
12,350
27,256
12,350
27,256
12,350
27,256
12,350
27,256

On 1 July 2021 the Group refinanced its debt structure with it's debt now being repayable through intercompany. This agreement is due to expire on 30 June 2026. Interest is payable at 3.89% per annum and the Group is entitled to repay the debt in whole or in part, without any penalty.

 

At year end a cash deposit account was held with Lloyds Bank for £452,529 (2022: £527,767) to cover bank guarantees that the Group is required to provide to the Environment Agency.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
24
Financial instruments
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Financial assets
Financial assets measured at amortised cost
16,149
23,895
-
-
Financial assets measured at fair value
56
1,211
-
-
16,205
25,106
-
-
Financial liabilities
Financial liabilities measured at amortised cost
(24,248)
(39,469)
(27,078)
(27,540)
Financial liabilities measured at fair value
-
-
-
-
(24,248)
(39,469)
(27,078)
(27,540)

 

Financial assets measured at amortised cost comprise cash and cash equivalents, trade debtors and amounts owed by related group undertakings.

 

Financial liabilities measured at amortised cost comprise bank loans, trade creditors, accruals, finance leases and amounts owed to related group undertakings.

 

The Financial assets/liabilities which are measured at fair value are metal price swaps. The fair value of metal price swaps is based on their listed market price as at the valuation date, if available. If a listed market price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

25
Provisions for Liabilities

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

Liabilities
Liabilities
2023
2022
Group
£'000
£'000
Accelerated capital allowances
430
587
The company has no deferred tax assets or liabilities.
26
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
583
555

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
27
Share capital
Group and company
2023
2022
Ordinary share capital
£'000
£'000
Issued and fully paid
202,323 'A' Ordinary shares of 1p each
2
2
6,300 'B' Ordinary shares of 1p each
-
-
2
2

The 'A' and 'B' ordinary shares rank pari-passu in all respects other than that the 'B' ordinary shares have no voting rights.

28
Financial commitments, guarantees and contingent liabilities

At 31 December 2023, the Group had provided supply chain guarantees totaling £1,197,605 (2022 - £1,136,853) and guarantees to the Environmental Agency totaling £378,656 (2022 - £496,609).

29
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Within one year
2,685
2,842
-
-
Between two and five years
3,498
5,261
-
-
In over five years
2,056
2,424
-
-
8,239
10,527
-
-
During the year £3,127,613 was recognised as an expense in the profit and loss account in respect of operating leases (2022: £3,076,070).
30
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Acquisition of tangible fixed assets
1,611
540
-
-

Capital commitment is in relation to additional land at Johnsons Lane. Payment will only become due pending planning permission approval.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
31
Related party transactions

Group

 

Transactions with key management personnel

Key management personnel are considered to be the directors and total compensation is disclosed in note 9.

 

Identity of related parties with which the Group has transacted

The Group has taken advantage of the exemption available under FRS 102 from the disclosures relating to transactions with other group companies.

 

The premises from which the head office operates are owned by D M York, a director of the Company during the year. The rent paid in the year by the Group was £32,500 (2022 - £30,000). There was £10,670 owing to D M York at the year-end (2022 - £nil). All transactions are considered to be on an arm's length basis.

32
Controlling party

On 27 July 2022 INFRAVIA Capital Partners purchased a 70% equity stake in Blue Phoenix Holding B.V. from Waterland Private Equity. Waterland was the main shareholder of the Company since 2015 and has developed the Company to become the leading Incinerator Bottom Ash processing company in the world. INFRAVIA Capital Partners has become the new majority shareholder next to Daiwa ICP European Infrastructure 1.

 

On December 30th, 2022, the 30% equity stake of Daiwa ICP European Infrastructure 1 was sold to Hope Holdco B.V., which holds 100% of the shares in Hope Bidco B.V. as from that date.

 

On February 14th, 2023, Blue Phoenix Holding B.V. merged into Hope Bidco B.V. and simultaneously Hope Bidco B.V. was renamed into Blue Phoenix Holding B.V.

 

On 30 March 2023 Daiwa ICP European Infrastructure 1 increased its stake in Hope Holdco B.V. to 40% by acquiring an additional 10% from INFRAVIA Capital Partners.

 

The Company is a subsidiary undertaking of Blue Phoenix Group B.V. The directors consider the ultimate controlling party to be Hope Holdco B.V. by virtue of their 100% shareholding in the equity of Blue Phoenix Holding B.V.

 

The largest and smallest group in which the results of the Company and its group are consolidated is that headed by Hope Holdco B.V., a company incorporated in the Netherlands.

PHOENIX ADVANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
33
Cash generated from group operations
2023
2022
£'000
£'000
Profit for the year after tax
12,080
11,201
Adjustments for:
Taxation charged
4,699
3,251
Interest payable and similar expenses
1,016
1,349
Interest receivable and similar income
(140)
-
0
Capital items expensed
183
-
Unrealised gains and losses on intercompany derivatives
1,154
(1,975)
Amortisation and impairment of intangible assets
2,208
2,208
Depreciation and impairment of tangible fixed assets
5,218
5,149
Revaluation of intercompany loans
-
1,432
Movements in working capital:
(Increase) in stocks
(88)
-
(Increase) in debtors
(2,139)
(1,328)
Increase/(decrease) in creditors
358
(3,334)
Cash generated from operations
24,549
17,953
34
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£'000
£'000
£'000
Cash at bank and in hand
13,944
(9,176)
4,768
Borrowings excluding overdrafts
(27,256)
14,906
(12,350)
Obligations under finance leases
(2,182)
950
(1,232)
(15,494)
6,680
(8,814)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200P C L KnightD M YorkS J MarriottR BentleyMr M L Turnerfalsefalse09073239bus:Consolidated2023-01-012023-12-31090732392023-01-012023-12-3109073239bus:Director12023-01-012023-12-3109073239bus:Director32023-01-012023-12-3109073239bus:Director42023-01-012023-12-3109073239bus:Director52023-01-012023-12-3109073239bus:Director22023-01-012023-12-3109073239bus:RegisteredOffice2023-01-012023-12-3109073239bus:Agent12023-01-012023-12-3109073239bus:Consolidated2023-12-31090732392023-12-3109073239bus:Consolidated2022-01-012022-12-3109073239bus:Consolidated12023-01-012023-12-3109073239bus:Consolidated12022-01-012022-12-31090732392022-01-012022-12-3109073239core:Goodwillbus:Consolidated2023-12-3109073239core:Goodwillbus:Consolidated2022-12-3109073239bus:Consolidated2022-12-3109073239core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-12-3109073239core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2023-12-3109073239core:PlantMachinerybus:Consolidated2023-12-3109073239core:FurnitureFittingsbus:Consolidated2023-12-3109073239core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-12-3109073239core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2022-12-3109073239core:PlantMachinerybus:Consolidated2022-12-3109073239core:FurnitureFittingsbus:Consolidated2022-12-3109073239core:ShareCapitalbus:Consolidated2023-12-3109073239core:ShareCapitalbus:Consolidated2022-12-3109073239core:SharePremiumbus:Consolidated2023-12-3109073239core:SharePremiumbus:Consolidated2022-12-3109073239core:ShareCapital2023-12-3109073239core:ShareCapital2022-12-3109073239core:SharePremium2023-12-3109073239core:SharePremium2022-12-3109073239core:RetainedEarningsAccumulatedLosses2023-12-31090732392022-12-3109073239core:ShareCapitalbus:Consolidated2021-12-3109073239core:SharePremiumbus:Consolidated2021-12-3109073239core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-12-3109073239core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3109073239core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3109073239core:ShareCapital2021-12-3109073239core:SharePremium2021-12-3109073239core:RetainedEarningsAccumulatedLosses2021-12-3109073239core:RetainedEarningsAccumulatedLosses2022-12-3109073239core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3109073239core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3109073239core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3109073239core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3109073239core:CurrentFinancialInstruments2023-12-3109073239core:CurrentFinancialInstruments2022-12-3109073239core:Non-currentFinancialInstruments2023-12-3109073239core:Non-currentFinancialInstruments2022-12-3109073239bus:Consolidated2021-12-3109073239core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3109073239core:PlantMachinery2023-01-012023-12-3109073239core:FurnitureFittings2023-01-012023-12-3109073239core:OwnedAssetsbus:Consolidated2023-01-012023-12-3109073239core:OwnedAssetsbus:Consolidated2022-01-012022-12-3109073239core:UKTaxbus:Consolidated2023-01-012023-12-3109073239core:UKTaxbus:Consolidated2022-01-012022-12-3109073239core:Goodwillbus:Consolidated2022-12-3109073239core:Goodwillbus:Consolidated2023-01-012023-12-3109073239core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-12-3109073239core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2022-12-3109073239core:PlantMachinerybus:Consolidated2022-12-3109073239core:FurnitureFittingsbus:Consolidated2022-12-3109073239bus:Consolidated2022-12-3109073239core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-01-012023-12-3109073239core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2023-01-012023-12-3109073239core:PlantMachinerybus:Consolidated2023-01-012023-12-3109073239core:FurnitureFittingsbus:Consolidated2023-01-012023-12-3109073239core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3109073239core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3109073239core:Non-currentFinancialInstrumentsbus:Consolidated2023-12-3109073239core:Non-currentFinancialInstrumentsbus:Consolidated2022-12-3109073239core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3109073239core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3109073239core:WithinOneYearbus:Consolidated2023-12-3109073239core:WithinOneYearbus:Consolidated2022-12-3109073239core:WithinOneYear2023-12-3109073239core:WithinOneYear2022-12-3109073239core:BetweenTwoFiveYearsbus:Consolidated2023-12-3109073239core:BetweenTwoFiveYearsbus:Consolidated2022-12-3109073239core:BetweenTwoFiveYears2023-12-3109073239core:BetweenTwoFiveYears2022-12-3109073239core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-12-3109073239core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-12-3109073239bus:PrivateLimitedCompanyLtd2023-01-012023-12-3109073239bus:FRS1022023-01-012023-12-3109073239bus:Audited2023-01-012023-12-3109073239bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3109073239bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP