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Company Registration number: SC213270

Solway Recycling Limited

Annual Report and Unaudited
Financial Statements


for the Year Ended 31 December 2023

 

Solway Recycling Limited

Contents

Pages

Balance sheet

1 to 2

Notes to the financial statements

3 to 9

 

Solway Recycling Limited

Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

2,890,543

2,913,186

Investments

6

30,000

30,000

 

2,920,543

2,943,186

Current assets

 

Stocks

7

355,690

464,934

Debtors

8

583,955

348,363

Cash at bank and in hand

 

27,173

1,948

 

966,818

815,245

Creditors: Amounts falling due within one year

9

(1,862,588)

(1,573,606)

Net current liabilities

 

(895,770)

(758,361)

Total assets less current liabilities

 

2,024,773

2,184,825

Creditors: Amounts falling due after more than one year

9

(1,117,572)

(1,538,115)

Provisions for liabilities

(119,270)

(103,190)

Net assets

 

787,931

543,520

Capital and reserves

 

Called up share capital

38,652

38,652

Share premium reserve

131,448

131,448

Retained earnings

617,831

373,420

Shareholders' funds

 

787,931

543,520

 

Solway Recycling Limited

Balance Sheet as at 31 December 2023 (continued)

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Company registration number: SC213270

Approved and authorised by the Board on 16 April 2024 and signed on its behalf by:
 

.........................................
Mr R Hiddleston
Director

 

Solway Recycling Limited

Notes to the financial statements for the Year Ended 31 December 2023

1

GENERAL INFORMATION

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
Rigghead
Shawhead
Irongray
Dumfries
DG2 9SH
 

These financial statements were authorised for issue by the Board on 16 April 2024.

2

ACCOUNTING POLICIES

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The financial statements have been prepared on a going concern basis.

 

Solway Recycling Limited

Notes to the financial statements for the Year Ended 31 December 2023 (continued)

2

ACCOUNTING POLICIES (continued)

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of income and retained earnings.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
 

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are 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 the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

 

Solway Recycling Limited

Notes to the financial statements for the Year Ended 31 December 2023 (continued)

2

ACCOUNTING POLICIES (continued)

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold property improvements

4% reducing balance

Plant and machinery

10% reducing balance

Motor vehicles

20% reducing balance

Office equipment

20% reducing balance

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Hire purchase and finance leases

Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
 

 

Solway Recycling Limited

Notes to the financial statements for the Year Ended 31 December 2023 (continued)

2

ACCOUNTING POLICIES (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
 Recognition and measurement
Basic financial instruments are initially recognised at the transaction price.
 Impairment
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

3

STAFF NUMBERS

The average number of persons employed by the company (including directors) during the year, was 26 (2022 - 25).

4

PROFIT BEFORE TAX

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

169,388

59,274

 

Solway Recycling Limited

Notes to the financial statements for the Year Ended 31 December 2023 (continued)

5

TANGIBLE ASSETS

Leasehold property improvements
£

Office equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

1,116,806

37,119

234,199

1,892,863

3,280,987

Additions

39,671

3,149

-

142,129

184,949

Disposals

-

-

-

(58,600)

(58,600)

At 31 December 2023

1,156,477

40,268

234,199

1,976,392

3,407,336

Depreciation

At 1 January 2023

27,155

14,432

211,938

114,276

367,801

Charge for the year

44,019

4,773

4,452

116,144

169,388

Eliminated on disposal

-

-

-

(20,396)

(20,396)

At 31 December 2023

71,174

19,205

216,390

210,024

516,793

Carrying amount

At 31 December 2023

1,085,303

21,063

17,809

1,766,368

2,890,543

At 31 December 2022

1,089,650

22,688

22,261

1,778,587

2,913,186

 

Solway Recycling Limited

Notes to the financial statements for the Year Ended 31 December 2023 (continued)

6

INVESTMENTS

2023
£

2022
£

Investments in subsidiaries

30,000

30,000

Subsidiaries

£

Cost or valuation

At 1 January 2023 and at 31 December 2020

30,000

Carrying amount

At 31 December 2023

30,000

At 31 December 2022

30,000

7

STOCKS

2023
£

2022
£

Stocks

355,690

464,934

8

DEBTORS

Current

2023
£

2022
£

Trade debtors

 

207,352

147,107

Amounts owed by related parties

150,000

150,000

Prepayments

 

130,000

26,667

Other debtors

 

96,603

24,589

   

583,955

348,363

 

Solway Recycling Limited

Notes to the financial statements for the Year Ended 31 December 2023 (continued)

9

CREDITORS

Creditors: amounts falling due within one year

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

380,909

384,063

Trade creditors

 

539,497

356,275

Amounts due to related parties

510,359

524,926

Taxation and social security

 

19,047

19,047

Accruals and deferred income

 

23,000

7,000

Other creditors

 

389,776

282,295

 

1,862,588

1,573,606


Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £333,940 (2022 - £323,471)

Creditors: amounts falling due after more than one year

2023
£

2022
£

Due after one year

 

Loans and borrowings

850,906

1,163,115

Deferred income

 

266,666

375,000

 

1,117,572

1,538,115


Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £805,450 (2022 - £1,094,931).