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Company registration number: 05102386











________________________________________________________________________________________


EKMAN RECYCLING LIMITED

________________________________________________________________________________________



ANNUAL REPORT

FOR THE YEAR ENDED 
31 DECEMBER 2023

 
EKMAN RECYCLING LIMITED
 

CONTENTS



Page
Company Information
 
1
Strategic Report
 
2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Income and Retained Earnings
 
9
Balance Sheet
 
10
Statement of Cash Flows
 
11
Notes to the Financial Statements
 
12 - 23


 
EKMAN RECYCLING LIMITED
 
 
COMPANY INFORMATION


Directors
Pankaj Chowdhary 
Neil Cooper 
Frank Crowley 
Dimitrios Lazaris 
Markus Ocklind 




Company secretary
Sanjay Gadhvi



Registered number
05102386



Registered office
Hyde House
Edgware Road

London

NW9 6LH




Independent auditors
F. W. Smith, Riches & Co.
Chartered Accountants & Statutory Auditors

15 Whitehall

London

SW1A 2DD




Page 1

 
EKMAN RECYCLING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors of the company present their Strategic Report for the year ended 31 December 2023. 
The Strategic Report is a statutory requirement under the Companies Act 2006 (Strategic Report and Directors’
Report) Regulations 2013 and is intended to provide fair and balanced information that enables the directors to
be satisfied that they have complied with section 172 of the Companies Act 2006 which sets out the directors'
duty to promote the success of the Company.

Principal activity
 
The Company's principal activity is the international purchase and resale of recyclable materials.

Business review
 
The Company's turnover for the year was $45.8 million, a decrease of $23.6 million compared to 2022. The decrease was primarily a result of lower selling prices. There was a small increase in the metric tonnes sold during the year, and the Company also saw a decrease in gross margin from 4.6% in 2022 to 3.4% in 2023. The Company posted a pre-tax loss of $693,114 (2022: profit $583,299), and saw funds used in operating activities of $47,284 (2022: generated $64,452).
The Company was the recipient of the Paper Recycling Business Of The Year award on the 11 May 2023, as part of the 2023 Awards for Excellence in Recycling and Waste Management. 

Principal risks and uncertainties
 
The war in Ukraine and the resulting energy crisis is anticipated to be a continuing risk into 2024. There is uncertainty over the level of demand within Europe in particular.
Additionally, the disruption to shipping in the Red Sea is expected to continue into next year. This will likely result in longer transit times and increased freight costs in 2024. 
Due to the economic conditions in the UK in 2023, there was a cut back in online retail and consumer spending leading to less demand for recovered waste paper. There is also a lack of material generation. These trends may continue into 2024 and may be exacerbated by the current levels of inflation within the UK.

 



This report was approved by the board on 29 April 2024 and signed on its behalf by:



Pankaj Chowdhary
Director

Page 2

 
EKMAN RECYCLING LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

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 the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the year, after taxation, amounted to $566,340 (2022 - profit $474,445).

No dividends were paid in the year. 

Directors

The directors who served during the year were:

Pankaj Chowdhary 
Neil Cooper 
Frank Crowley 
Dimitrios Lazaris 
Markus Ocklind 

Matters covered in the Strategic Report

The Strategic Report on page 2 contains details of the principal activities of the Company and includes a business review which provides information on the development of the Company's business during the year, together with details of the risks and uncertainties that affect the Company's business.

Page 3

 
EKMAN RECYCLING LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsF. W. Smith, Riches & Co.will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 April 2024 and signed on its behalf.
 





Pankaj Chowdhary
Director

Page 4

 
EKMAN RECYCLING LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EKMAN RECYCLING LIMITED

Opinion


We have audited the financial statements of Ekman Recycling Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its loss 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
EKMAN RECYCLING LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EKMAN RECYCLING LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
EKMAN RECYCLING LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EKMAN RECYCLING LIMITED (CONTINUED)

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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. 
The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
These laws and regulations for which non compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include The Waste (England and Wales) Regulations 2011 and SOLAS Verified Gross Mass Regulations (VGM) 2016.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; inspection of records relating to compliance with waste and VGM regulations; review of minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified.  However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed.  Irregularities that result from fraud may be inherently more difficult to detect than irregularities that result from error.  As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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 Auditors' Report.


Page 7

 
EKMAN RECYCLING LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EKMAN RECYCLING LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Martin J. Rooney (Senior Statutory Auditor)
for and on behalf of
F. W. Smith, Riches & Co.
Chartered Accountants & Statutory Auditors
London

29 April 2024
Page 8

 
EKMAN RECYCLING LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS 
(INCLUDING THE PROFIT AND LOSS ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
$
$

  

Turnover
 3 
45,768,372
69,361,940

Cost of sales
  
(44,226,824)
(66,177,952)

Gross profit
  
1,541,548
3,183,988

Administrative expenses
  
(2,319,403)
(2,559,868)

Operating (loss)/profit
 4 
(777,855)
624,120

Interest receivable and similar income
 8 
129,792
16,305

Interest payable and similar expenses
 9 
(45,051)
(57,126)

(Loss)/profit before tax
  
(693,114)
583,299

Tax on (loss)/profit
 10 
126,774
(108,854)

(Loss)/profit after tax
  
(566,340)
474,445

  

  

Retained earnings at the beginning of the year
  
2,128,984
1,654,539

(Loss)/profit for the year
  
(566,340)
474,445

Retained earnings at the end of the year
  
1,562,644
2,128,984
Page 9

 
EKMAN RECYCLING LIMITED
REGISTERED NUMBER:05102386

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
$
$

Fixed assets
  

Tangible assets
 11 
66,582
52,363

Investments
 12 
1
1

  
66,583
52,364

Current assets
  

Stocks
 13 
1,593,563
2,612,208

Debtors: amounts falling due within one year
 14 
6,732,593
7,409,496

  
8,326,156
10,021,704

Creditors: amounts falling due within one year
 15 
(6,681,905)
(7,796,894)

Net current assets
  
 
 
1,644,251
 
 
2,224,810

Total assets less current liabilities
  
1,710,834
2,277,174

  

Net assets
  
1,710,834
2,277,174


Capital and reserves
  

Called up share capital 
 18 
148,190
148,190

Profit and loss account
 19 
1,562,644
2,128,984

  
1,710,834
2,277,174


The financial statements on pages 9 to 23 were approved and authorised for issue by the board on 29 April 2024 and were signed on its behalf by:




Pankaj Chowdhary
Director

Page 10

 
EKMAN RECYCLING LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
$
$

Cash flows from operating activities

(Loss)/profit for the financial year
(566,340)
474,445

Adjustments for:

Depreciation of tangible assets
36,813
37,966

Loss on disposal of tangible assets
(13,575)
-

Interest paid
45,051
57,126

Interest received
(129,792)
(16,305)

Taxation charge
(126,774)
108,854

Decrease/(increase) in stocks
1,018,645
(1,349,269)

Decrease/(increase) in debtors
833,077
(1,664,201)

(Decrease)/increase in creditors
(1,114,989)
2,504,040

Corporation tax (paid)
(29,400)
(88,204)

Net cash (used in) / generated from operating activities

(47,284)
64,452


Cash flows from investing activities

Purchase of tangible fixed assets
(80,476)
(23,631)

Sale of tangible fixed assets
43,019
-

Interest received
129,792
16,305

Net cash from / (used in) investing activities

92,335
(7,326)

Cash flows from financing activities

Interest paid
(45,051)
(57,126)

Net cash used in financing activities
(45,051)
(57,126)

Net increase in cash and cash equivalents
-
-

Cash and cash equivalents at the end of year
-
-




Page 11

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies

  
1.1

Statement of compliance

The Company's principal activity is the international purchase and resale of recyclable materials.
Ekman Recycling Limited is a private company limited by shares and is incorporated and domiciled in England and Wales. The address of its registered office and principal place of business is Hyde House, Edgware Road, London, NW9 6LH.

  
1.2

Basis of preparation of financial statements

The financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland’ (“FRS 102”) and the Companies Act 2006.  The financial statements have been prepared under the historical cost convention.
The company has claimed exemption under Section 405 of the Companies Act 2006 from the preparation of group accounts on the grounds that the subsidiary entities are immaterial to the group. Therefore these financial statements present information about the Company as an individual undertaking and not about its group. 
The preparation of financial statements requires the use of certain critical accounting estimates.  It also requires management to exercise its judgement in the process of applying the Company's accounting policies.  The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

  
1.3

Revenue

Revenue is recognised to the extent that the Company obtains the right to consideration in exchange for its performance.  Revenue is measured at the fair value of the consideration received or receivable, net of discounts, rebates and value added tax.  The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually in accordance with the relevant shipping terms, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
 
Interest income
Revenue is recognised as interest accrues using the effective interest method.

Page 12

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)

  
1.4

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.  Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use and dismantling and restoration costs.
 
Depreciation is calculated, using the straight line method, to allocate the cost of assets less their residual value over their estimated useful lives, as follows:
                Plant & Machinery        -  3 to 5 years
                Motor Vehicles             -  4 years
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.
Subsequent costs are included in the assets’ carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the Company and the cost can be measured reliably.  Repairs and maintenance costs are expensed as incurred.
Tangible fixed assets are derecognised on disposal or when no future economic benefits are expected.  On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Profit and Loss Account and included in ‘administrative expenses’.

  
1.5

Investments

In the Company's financial statements, investments in subsidiaries are measured at cost less accumulated impairment.

  
1.6

Stock

Stock is stated at the lower of cost and estimated selling price less costs to sell. Stock is recognised as an expense in the period in which the related revenue is recognised. 
Cost is determined on the first-in, first-out (FIFO) method. Cost includes all costs incurred in bringing the stock to its present location and condition. 
At the end of each reporting period stock is assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the Profit and Loss Account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the Profit and Loss Account.

Page 13

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)

  
1.7

Financial instruments

The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.
 
Short term debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.  Any losses arising from impairment are recognised in the Profit and Loss Account in ‘administrative expenses’.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.
Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

  
1.8

Foreign currency translation

Functional and presentation currency
The functional and presentation currency of the Company is United States Dollar.
 
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.  At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.  Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Profit and Loss Account.
Foreign exchange gains and losses are presented in the Profit and Loss Account under the heading to which they relate.

  
1.9

Operating leases: lessee

At inception the Company assesses agreements that transfer the right to use assets.  The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement.
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases.  Rentals payable under operating leases are charged to the Profit and Loss Account on a straight line basis over the period of the lease.  Lease incentives are recognised over the lease term on a straight line basis.

Page 14

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)

  
1.10

Defined contribution pension plans

The Company contributes to a defined contribution plan for its employees.  A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity.  Once the contributions have been paid the Company has no further payment obligations.  The contributions are recognised as an expense when they are due.  Amounts not paid are shown in accruals in the balance sheet.  The assets of the plan are held separately from the Company in independently administered funds.

  
1.11

Distributions to equity holders

Final dividends to the Company's shareholder are recognised as a liability in the financial statements in the period in which the dividends are approved by the shareholder. These amounts are recognised in the Statement of Income and Retained Earnings. Interim dividends are recognised in the Statement of Income and Retained Earnings as paid.

  
1.12

Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the Profit and Loss Account. Current or deferred taxation assets and liabilities are not discounted.
Current tax
Current tax is the amount of corporation tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
 
Deferred tax
Deferred tax arises from timing differences that are differences between taxable profits and profit on ordinary activities before taxation as stated in the financial statements. These timing differences 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 recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

  
1.13

Share capital

Ordinary shares are classified as equity.

Page 15

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)

  
1.14

Related party transactions

The Company discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors separate disclosure is necessary to understand the effect of the transactions on the Company’s financial statements.


2.


Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements management are required to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year.  However, the nature of estimation means that actual outcomes could differ from these estimates.  Whilst management have made judgements, estimates and assumptions in preparing the financial statements, they consider that these have not had a significant effect on amounts recognised.


3.


Turnover

The whole of the turnover is attributable to the sale of goods.

Analysis of turnover by country of destination:

2023
2022
$
$

United Kingdom
790,352
1,181,454

Rest of Europe
2,837,376
7,101,294

Rest of the world
42,140,644
61,079,192

45,768,372
69,361,940



4.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
$
$

Depreciation on tangible fixed assets
36,813
37,966

Net loss on foreign currency translation
34,275
171,361

Operating lease charges
50,247
51,913

Page 16

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Auditors' remuneration

2023
2022
$
$

Fees payable to the Company's auditors for the audit of the Company's financial statements
33,796
32,015


6.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
$
$

Wages and salaries
1,044,698
1,012,129

Social security costs
124,016
138,584

Costs of defined contribution scheme
90,447
42,849

1,259,161
1,193,562


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Sales staff
1
1



Administrative staff
5
4



Logistics staff
5
5



Purchasing staff
3
2



Finance staff
1
2



Quality inspectors
2
2

17
16

Page 17

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Directors' remuneration

2023
2022
$
$

Directors' emoluments
198,986
286,685

Company contributions to defined contribution pension schemes
90,447
42,849

289,433
329,534


During the year retirement benefits were accruing one director (2022 - 1) in respect of defined contribution pension schemes.
Key management compensation equates to directors' remuneration.


8.


Interest receivable

2023
2022
$
$


Bank interest receivable
129,792
16,305


9.


Interest payable and similar expenses

2023
2022
$
$


Bank interest payable
45,051
57,126

Page 18

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Taxation


2023
2022
$
$

Corporation tax


Current tax on profits for the year
(128,500)
115,000

Adjustments in respect of previous periods
2,710
(193)


Total current tax
(125,790)
114,807

Deferred tax


Deferred tax charge
5,651
(2,443)

Adjustments in respect of previous periods
(6,635)
(3,510)

Total deferred tax
(984)
(5,953)


Tax on (loss)/profit on ordinary activities
(126,774)
108,854

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
$
$


(Loss)/profit on ordinary activities before tax
(693,114)
583,299


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
(162,882)
110,827

Effects of:


Expenses not deductible for tax purposes
2,566
3,692

Capital allowances - super deduction
(85)
(1,347)

Difference in tax rate for deferred tax
(273)
(615)

Adjustments to tax charge in respect of prior periods
2,710
(3,703)

Losses utilised at different rate
31,190
-

Total tax charge for the year
(126,774)
108,854

Page 19

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Tangible fixed assets





Plant and machinery
Motor vehicles
Total

$
$
$



Cost


At 1 January 2023
108,809
126,822
235,631


Additions
12,337
68,139
80,476


Disposals
-
(56,207)
(56,207)



At 31 December 2023

121,146
138,754
259,900



Depreciation


At 1 January 2023
72,740
110,528
183,268


Charge for the year on owned assets
13,859
22,954
36,813


Disposals
-
(26,763)
(26,763)



At 31 December 2023

86,599
106,719
193,318



Net book value



At 31 December 2023
34,547
32,035
66,582



At 31 December 2022
36,069
16,294
52,363

Page 20

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Fixed asset investments





Investments in subsidiary companies

$



Cost


At 1 January 2023
1



At 31 December 2023
1




The Company owns 100% of the £1 ordinary shares of Reliance Fibres Limited, a dormant subsidiary registered in England and Wales. Reliance Fibres Limited's aggregate amount of capital and reserves as at 31 December 2022 was £1. The address of its registered office is Hyde House, The Hyde, Edgware Road, London, NW9 6LH. 



13.


Stocks

2023
2022
$
$

Finished goods and goods for resale
1,593,563
2,612,208



14.


Debtors

2023
2022
$
$


Trade debtors
5,158,839
6,299,413

Amounts owed by group undertakings (see note 16)
932,811
503,033

Other debtors
401,866
523,801

Prepayments and accrued income
14,601
14,947

Tax recoverable
211,572
56,382

Deferred taxation
12,904
11,920

6,732,593
7,409,496


Page 21

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Creditors: Amounts falling due within one year

2023
2022
$
$

Trade creditors
1,951,076
3,601,910

Other creditors
4
-

Accruals and deferred income
4,730,825
4,194,984

6,681,905
7,796,894



16.


Cash balances

The Company has access to cash balances via a cash pool provided by its ultimate parent company. These amounts have been included in amounts owed by or to group undertakings. In the current year, there are net balances with the group cash pool of £1,056,914 (2021: overdrawn by £566,767).


17.


Deferred taxation




2023


$






At 1 January 2023
11,920


Charged to the Profit and Loss Account
984



At 31 December 2023
12,904

The deferred tax asset is made up as follows:

2023
2022
$
$


Capital allowances
12,904
11,920


The net deferred tax asset expected to reverse in 2023 is $9,492. 

Page 22

 
EKMAN RECYCLING LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Share capital

2023
2022
$
$
Authorised, allotted, called up and fully paid



100,000 (2022 - 100,000) Ordinary shares of £1 each
148,190
148,190


There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.


19.


Reserves

Profit and loss account

The profit and loss reserve is a distributable reserve.


20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
$
$


Not later than 1 year
36,111
34,233

Later than 1 year and not later than 5 years
72,628
103,086

108,739
137,319


21.


Related party transactions

During the period the Company was invoiced $148,738 (2022: $136,486) by a company controlled by a close family member of a director. At the period end the balance due to this company was $11,762 (2022: $12,022).


22.


Controlling party

The Company is 100% (2022: 100%) owned by Ekman & Co AB, a company registered in Sweden, which is the ultimate controlling party and also the parent of the smallest group of undertakings for which group accounts have been drawn up and of which the Company is a member. The financial statements of Ekman & Co AB can be obtained from Bolagsverket, Swedish Companies Registration Office at www.bolagsverket.se and the address of the company is P.O. Box 230, 401 23 Gothenburg, Sweden. 

Page 23