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New West Gypsum Recycling (UK) Limited

Annual Report and Financial Statements
Year Ended 31 December 2023

Registration number: 05185925

 

New West Gypsum Recycling (UK) Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 9

 

New West Gypsum Recycling (UK) Limited

Balance Sheet

31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

1,425,169

1,222,403

Investment property

5

270,286

270,286

 

1,695,455

1,492,689

Current assets

 

Debtors

6

566,444

659,849

Cash at bank and in hand

 

132,258

248,186

 

698,702

908,035

Creditors: Amounts falling due within one year

7

(3,016,733)

(2,774,989)

Net current liabilities

 

(2,318,031)

(1,866,954)

Total assets less current liabilities

 

(622,576)

(374,265)

Creditors: Amounts falling due after more than one year

7

(52,492)

(79,905)

Net liabilities

 

(675,068)

(454,170)

Capital and reserves

 

Called up share capital

501,000

501,000

Profit and loss account

(1,176,068)

(955,170)

Shareholders' deficit

 

(675,068)

(454,170)

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 12 September 2024 and signed on its behalf by:
 

.........................................
G J McCamley
Director

Company Registration Number: 05185925

 

New West Gypsum Recycling (UK) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
The Flight Shed
The Taxi Way
Weston-Super-Mare
Somerset
BS24 8FL
United Kingdom

These financial statements were authorised for issue by the Board on 12 September 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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' , including Section 1A and the Companies Act 2006.

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.

Going concern

Notwithstanding the net liabilities of £675,068 (2022 - £454,170) and net current liabilities of £2,318,031 (2022 - £1,866,954) as at 31 December 2023 the directors are satisfied that the going concern basis of preparation remains appropriate. In forming this opinion, and having made all necessary enquiries and considered a period of no less than 12 months from the date of approval of these financial statements, the directors have considered the following key matters:
• The profitable trading at gross margin level for the year to 31 December 2023, being the fifth full year at the new facility – and with further capacity for turnover growth, noting the production line expansion during the year.
• The committed support of the parent company and wider New West Gypsum group, and ability of the group to provide that support on an ongoing basis. In particular that, for the foreseeable future, being no less than 12 months from the date of approval of these financial statements, the group will not seek repayment, to the extent that it would threaten the going concern status of the company, of the £2,600,577 (2022 - £2,398,118) of amounts due to group undertakings included within creditors falling due within one year.
• Their assessment that the company will continue to be able to meet its liabilities as they fall due.

 

New West Gypsum Recycling (UK) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Key accounting judgements and sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The key judgement which has a significant effect on the financial statements is in respect of going concern, as described in the accounting policy above.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

The company has recognised an accrual of £133,000 (2022 - £130,000) in respect of unprocessed gypsum. The directors must assess both the quantity of unprocessed gypsum and the expected costs in order to recycle this gypsum.

The fair value of the investment property has been derived, by the directors, from comparable real estate using observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. The carrying amount is £270,286 (2022 - £270,286).

Fixed assets are carried at cost, less accumulated depreciation and any subsequent accumulated impairment loss. This requires an estimation in the depreciation rates used as well as assessment of the ongoing economic contribution of the assets of the company as to whether an indicator of impairment has occurred. The carrying amount is £1,425,169 (2022 - £1,222,403).

Revenue recognition

The turnover shown in the profit and loss account represents sales made during the year, exclusive of Value Added Tax.

Turnover is recognised at the point where gypsum waste is transferred to the site.

Government grants

Government grants are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date.

 

New West Gypsum Recycling (UK) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

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 over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Stamp duty

10 years straight line

Machinery and equipment

15 years straight line

Motor vehicles

30% reducing balance

Office equipment

20% reducing balance

Leasehold improvements

10% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate using observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

 

New West Gypsum Recycling (UK) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans and finance leases; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 15 (2022 - 14).

 

New West Gypsum Recycling (UK) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

4

Tangible assets

Land and buildings
£

Office equipment
 
£

Motor vehicles
 
£

Machinery & equipment
£

Total
£

Cost or valuation

At 1 January 2023

92,532

13,952

458,361

1,374,048

1,938,893

Additions

-

-

-

303,552

303,552

Transfers

-

(10,800)

-

10,800

-

At 31 December 2023

92,532

3,152

458,361

1,688,400

2,242,445

Depreciation

At 1 January 2023

38,970

5,118

304,511

367,891

716,490

Charge for the year

6,078

183

46,176

48,349

100,786

Transfers

-

(2,880)

-

2,880

-

At 31 December 2023

45,048

2,421

350,687

419,120

817,276

Carrying amount

At 31 December 2023

47,484

731

107,674

1,269,280

1,425,169

At 31 December 2022

53,562

8,834

153,850

1,006,157

1,222,403

Included within the net book value of land and buildings is £41,705 (2022 - £53,562) in respect of short leasehold land and buildings.

 

New West Gypsum Recycling (UK) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

5

Investment properties

2023
£

At 1 January 2023

270,286

At 31 December 2023

270,286

The directors have valued the property derived from current market prices for comparable real estate using observable market prices.

6

Debtors

2023
£

2022
£

Trade debtors

358,457

397,770

Amounts due from group undertakings

40,727

40,727

Other debtors

27,260

81,352

Prepayments

140,000

140,000

566,444

659,849

 

New West Gypsum Recycling (UK) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

7

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

8

27,413

22,079

Trade creditors

 

200,423

165,609

Amounts owed to group undertakings

10

2,600,577

2,398,118

Taxation and social security

 

12,578

10,279

Accruals and deferred income

 

171,501

178,904

Other creditors

 

4,241

-

 

3,016,733

2,774,989

Creditors falling due within one year includes bank loans and net obligations under finance lease and hire purchase contracts which are secured on the assets of £24,510 (2022 - £22,079).

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

52,492

79,905

Creditors falling due after more than one year includes bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured on the assets of £52,492 (2022 - £79,905).

 

New West Gypsum Recycling (UK) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

8

Loans and borrowings

2023
£

2022
£

Loans and borrowings due after one year

HP and finance lease liabilities

52,492

79,905

2023
£

2022
£

Current loans and borrowings

HP and finance lease liabilities

27,413

22,079

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £853,833 (2022 - £1,071,833). The company has commitments in respect of non-cancellable operating leases.

10

Related party transactions

The company has taken advantage of the exemption available in FRS 102 whereby it has not disclosed transactions or balances with the ultimate parent company.

11

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was Robert Whitehead FCCA, who signed for and on behalf of PKF Francis Clark 17 September 2024 on ........................

12

Parent and ultimate parent undertaking

The company's immediate parent is New West Gypsum Recycling (BC) Ltd, incorporated in Canada.

Relationship between entity and parents

The parent of the smallest group in which these financial statements are consolidated is Cloverdale Disposal Ltd. 1992, incorporated in Canada.

The address of Cloverdale Disposal Ltd. 1992 is:
New West Gypsum Recycling
Unit 201, 20218 Fraser Highway
Langley, BC
Canada
V3a 4E6