Company Registration No. 07089478 (England and Wales)
NORTHWOOD RECYCLING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
Star House
Star Hill
Rochester
Kent
ME1 1UX
NORTHWOOD RECYCLING LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of cash flows
12
Notes to the financial statements
13 - 22
NORTHWOOD RECYCLING LIMITED
COMPANY INFORMATION
- 1 -
Directors
P Fecher
M D Fecher
A Fecher
P E King
C J Davies
J D Garner
Secretary
P E King
Company number
07089478
Registered office
Waterside
Disley
Stockport
SK12 2HW
Auditor
TC Group
Star House
Star Hill
Rochester
Kent
ME1 1UX
NORTHWOOD RECYCLING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

 

Introduction

During the year under review, the company’s principal trading activity has continued to be the sourcing and of recycled paper-based material for subsequent sale to Northwood AfH Group recycled paper mills and other mills where opportunities arise.

 

The Northwood AfH Group* operates 3 recycled paper mills with the capacity to service the internal parent reel requirements of the Group’s converting operations.

Fair review of the business

Weak demand from overseas customers meant that exports all but disappeared in FY23, having been at 6% in FY22, which meant that a greater proportion of available product went to Northwood companies. The net impact was volume down 3% year-on-year. However, with the benefit of the lagging effect of the index for pricing, we actually delivered an increase in margins in the year.

 

Excess supply over demand led to pressure on selling price with the average across different grades falling by ~28% across the 12 months. There are signs that this will turn in FY24 as market confidence returns following the last three years of economic headwinds caused by covid lockdowns, energy crisis, Ukraine war, multiple interest rate hikes together with general inflationary pressures.

 

Supply of furnish to associated companies represented 89% of sales volume in the year which was an increase from 87% in 2022. Lower selling price and volume meant turnover was down £3,787k/18.5% but with a gross profit of £914k/5.5% [£753k/3.7% in 2022] and an operating profit of £529k [£391k in 2022].

Principal risks and uncertainties

The company does not operate in a high‑risk environment and the nature of the vertically integrated supply chain that the company works within, along with related companies who are either suppliers or customers, ensures that there is not an over‑reliance on any specific external supplier or customer. The nature of commercial markets means that where sales are made outside the Group, there is a focus on the credit management controls required to minimise the risk of bad debts and to ensure the smooth flow of product. The company continues to comply with all relevant environmental and industry legislation and this is facilitated through Northwood’s continued membership of the CPI.

NORTHWOOD RECYCLING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Key performance indicators

By order of the board

P E King
Secretary
10 September 2024
NORTHWOOD RECYCLING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

P Fecher
M D Fecher
A Fecher
P E King
C J Davies
J D Garner
Auditor

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

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company’s auditor 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 company’s auditor is aware of that information.

NORTHWOOD RECYCLING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
By order of the board
P E King
Secretary
10 September 2024
NORTHWOOD RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NORTHWOOD RECYCLING LIMITED
- 6 -
Opinion

We have audited the financial statements of Northwood Recycling Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

NORTHWOOD RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTHWOOD RECYCLING LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's responsibilities for the audit of the financial statements

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

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

NORTHWOOD RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTHWOOD RECYCLING LIMITED
- 8 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

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 (irregularities) 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

NORTHWOOD RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTHWOOD RECYCLING LIMITED
- 9 -
Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Sally Meah FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
Star House
Star Hill
Rochester
Kent
ME1 1UX
NORTHWOOD RECYCLING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
Turnover
2
16,658,426
20,445,103
Cost of sales
(15,744,750)
(19,691,615)
Gross profit
913,676
753,488
Administrative expenses
(384,420)
(362,803)
Operating profit
3
529,256
390,685
Interest payable and similar expenses
7
-
0
(34)
Profit before taxation
529,256
390,651
Tax on profit
8
(125,197)
(74,503)
Profit for the financial year
404,059
316,148

The income statement has been prepared on the basis that all operations are continuing operations.

The notes on pages 13 to 22 form part of these financial statements.

NORTHWOOD RECYCLING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
9
20
20
Current assets
Debtors
10
6,344,694
5,912,285
Cash at bank and in hand
45,569
350,056
6,390,263
6,262,341
Creditors: amounts falling due within one year
11
(3,046,358)
(3,322,495)
Net current assets
3,343,905
2,939,846
Net assets
3,343,925
2,939,866
Capital and reserves
Called up share capital
13
100
100
Profit and loss reserves
3,343,825
2,939,766
Total equity
3,343,925
2,939,866

The notes on pages 13 to 22 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 10 September 2024 and are signed on its behalf by:
C J Davies
Director
Company registration number 07089478 (England and Wales)
NORTHWOOD RECYCLING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
16
(396,643)
(455,412)
Interest paid
-
0
(34)
Income taxes paid
(74,646)
(60,495)
Net cash outflow from operating activities
(471,289)
(515,941)
Net decrease in cash and cash equivalents
(471,289)
(515,941)
Cash and cash equivalents at beginning of year
350,056
865,997
Cash and cash equivalents at end of year
(121,233)
350,056
Relating to:
Cash at bank and in hand
45,569
350,056
Bank overdrafts included in creditors payable within one year
(166,802)
-
0

The notes on pages 13 to 22 form part of these financial statements.

NORTHWOOD RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Northwood Recycling Limited is a private company limited by shares incorporated in England and Wales. The registered office is Waterside, Disley, Stockport, SK12 2HW.

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 company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 on dispatch of the goods), 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.

1.4
Fixed asset investments

Interests in unlisted entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

NORTHWOOD RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

NORTHWOOD RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

NORTHWOOD RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.7
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.8
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.9
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.10
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.11

Invoice discounting

The company discounts its trade debts. The accounting policy is to include a gross asset for trade

debtors due within one year and to record the returnable element of the proceeds under creditors due

within one year. Discount fees are charged to the profit and loss account when payable. Bad debts

are bourne by the company and charged to the profit and loss account when reasonably foreseeable.

NORTHWOOD RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
Turnover
2023
2022
£
£
Turnover analysed by geographical market
UK
16,597,693
19,243,823
Europe
60,733
1,201,280
16,658,426
20,445,103
3
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(4,582)
23,846
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,655
11,155
5
Employees

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

2023
2022
Number
Number
5
5
NORTHWOOD RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
268,552
245,244
Social security costs
33,512
26,120
Pension costs
10,355
9,301
312,419
280,665
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
94,682
57,681
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
34
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
125,197
74,646
Deferred tax
Adjustment in respect of prior periods
-
0
(143)
Total tax charge
125,197
74,503
NORTHWOOD RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 19 -

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
£
£
Profit before taxation
529,256
390,651
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
132,314
74,224
Tax effect of expenses that are not deductible in determining taxable profit
830
489
Effect of change in corporation tax rate
(7,875)
-
0
Permanent capital allowances in excess of depreciation
(72)
(67)
Deferred tax adjustments in respect of prior years
-
0
(143)
Taxation charge for the year
125,197
74,503
9
Investment in Subsidiary
2023
2022
£
£
Unlisted investments
20
20
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,294,766
2,194,354
Other debtors
5,049,732
3,712,452
Prepayments and accrued income
196
5,479
6,344,694
5,912,285
NORTHWOOD RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
11
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
166,802
-
0
Trade creditors
937,500
1,459,985
Corporation tax
125,197
74,646
Other taxation and social security
47,264
45,349
Other creditors
4,711
52,976
Accruals and deferred income
1,764,884
1,689,539
3,046,358
3,322,495

National Westminster Bank Plc holds a fixed and floating charge over all assets and property.

 

RBS Invoice Finance (UK) holds a fixed and floating charge over all the property and undertakings of the company.

12
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
10,355
9,301

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

13
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
NORTHWOOD RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
14
Operating lease commitments

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

2023
2022
£
£
Within one year
14,770
14,770
Between two and five years
15,858
30,627
30,628
45,397
15
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
94,682
57,681
Transactions with related parties

 

During the year under review, the following transactions took place with entities over which the entity has significant influence over;

 

Sales of goods and other recharges totalling £15,089,326 (2022 - £18,502,335);

The balance due at the year end is £946,570 (2022 - £1,922,172) and is included in trade debtors.

 

Costs of purchases and other recharges totalling £199,696 (2022 - £178,775);

The balance due at the year end is £51,265 (2022 - £52,499) and is included in trade creditors.

 

Loans of £2,895,413 (2022 - £2,155,705) were made;

Repayments of £1,544,154 (2022 - £1,353,100) were received;

Loans of £0 (2022 - £1,260,100) were received;

Repayments of £0 (2022 - £1,260,100) were made.

 

As at 31 December 2023 £5,044,980 (2022 - £3,693,722) was due from the entities.

NORTHWOOD RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
16
Cash absorbed by operations
2023
2022
£
£
Profit for the year after tax
404,059
316,148
Adjustments for:
Taxation charged
125,197
74,503
Finance costs
-
0
34
Movements in working capital:
Increase in debtors
(432,409)
(1,562,838)
(Decrease)/increase in creditors
(493,490)
716,741
Cash absorbed by operations
(396,643)
(455,412)
17
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
350,056
(304,487)
45,569
Bank overdrafts
-
0
(166,802)
(166,802)
350,056
(471,289)
(121,233)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210No description of principal activityP FecherM D FecherA FecherC J DaviesJ D GarnerJ D GarnerP E Kingfalsefalse070894782023-01-012023-12-3107089478bus:Director12023-01-012023-12-3107089478bus:Director22023-01-012023-12-3107089478bus:Director32023-01-012023-12-3107089478bus:CompanySecretaryDirector12023-01-012023-12-3107089478bus:Director42023-01-012023-12-3107089478bus:Director52023-01-012023-12-3107089478bus:Director62023-01-012023-12-3107089478bus:CompanySecretary12023-01-012023-12-3107089478bus:RegisteredOffice2023-01-012023-12-31070894782023-12-31070894782022-01-012022-12-31070894782022-12-3107089478core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3107089478core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3107089478core:CurrentFinancialInstruments2023-12-3107089478core:CurrentFinancialInstruments2022-12-3107089478core:ShareCapital2023-12-3107089478core:ShareCapital2022-12-3107089478core:RetainedEarningsAccumulatedLosses2023-12-3107089478core:RetainedEarningsAccumulatedLosses2022-12-31070894782022-12-31070894782021-12-3107089478core:WithinOneYear2023-12-3107089478core:WithinOneYear2022-12-3107089478core:UKTax2023-01-012023-12-3107089478core:UKTax2022-01-012022-12-310708947812023-01-012023-12-310708947812022-01-012022-12-3107089478core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-12-3107089478core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2022-12-3107089478core:BetweenTwoFiveYears2023-12-3107089478core:BetweenTwoFiveYears2022-12-3107089478bus:PrivateLimitedCompanyLtd2023-01-012023-12-3107089478bus:FRS1022023-01-012023-12-3107089478bus:Audited2023-01-012023-12-3107089478bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP