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REGISTERED NUMBER: 01857473 (England and Wales)














Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

Oil Salvage Limited

Oil Salvage Limited (Registered number: 01857473)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


Oil Salvage Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: V R Vernon
M Vernon
Miss L Vernon
J R Vernon





SECRETARY: Miss L Vernon





REGISTERED OFFICE: Seymour Chambers
92 London Road
Liverpool
Merseyside
L3 5NW





REGISTERED NUMBER: 01857473 (England and Wales)





AUDITORS: Douglas Fairless Partnership
Chartered Certified Accountants
and Statutory Auditors
Seymour Chambers
92 London Road
Liverpool
Merseyside
L3 5NW

Oil Salvage Limited (Registered number: 01857473)

Strategic Report
for the Year Ended 31 December 2023

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

2023 has seen Oil Salvage Ltd maintain it's position as one of Britain's largest specialist waste oil management and oil recycling organisations and deliver one of our most successful years to date. The company remain committed to an ongoing capital expenditure programme to help satisfy ever changing waste oils legislation, which has seen large amounts of capital used to develop the site and plant & machinery which has led to continued compliance with waste oils legislation and improved margins.

REVIEW OF BUSINESS
The directors consider turnover, gross profit margins, net profit margins and cash flows to be the key performance indicators of the business.Turnover during 2023 has decreased, as expected, due to the drop in oil barrel price. Turnover for 2023 has come in at £26,488,846 compared to £33,950,372 in 2022, which is a 21.98% year on year decrease.

Gross profit margins have decreased due to the global oil price decreasing during the year after the initial price surge during the start of the Ukraine war, gross profit margins for the year have come in at 31.51% (2022 - 42.51%), which is more consistent with what we expect to achieve. The strong gross profit margins over the past few years have ensured that net profit margins have also remained healthy. The net profit before taxation for this year is coming in at £4,383,059 which is a 16.55% return (2022 - £11,544,167 - 34.00%).

The business will continue to invest in new plant & machinery to increase the purity of the oil they produce to open up new revenue streams and improve margins and comply with vehicle emissions standards, over £2.3 million has been invested in 2023 in our fixed assets (see page 18). As previously mentioned, significant investment has taken place during 2023 and the 5 years prior to this, in specific plant & machinery, further investment in the site will continue through 2024, which is expected to allow further growth for Oil Salvage Ltd in 2024 and beyond.

The business has been delivering cash surpluses from trading activities for a number of years, which has now been invested in the construction of a new refinery and new low emission vehicles. Further site expansion is expected to be completed in 2024 without any outside finance, whilst still maintaining a positive cash position. The significant capital investment throughout 2023 the business has shown a decrease in cashflow of £3,200,038 at 31/12/23, as detailed on page 12, with available cash at 31/12/23 being a healthy position of £5,067,207.

PRINCIPAL RISKS AND UNCERTAINTIES
Routine Environment Agency site visits have not raised any concerns and show Oil Salvage Ltd's commitment to minimising the impact of the business on the environment. Possible breach of environmental legislation and resulting fines will continue to be a risk to the business and will keep management on their toes. Further changes to regulations regarding the quality of waste oils could result in increases to direct costs, but the business has the margins to be able to absorb additional costs without it affecting the business significantly. There are added pressures on cash flows at the moment due to the plant improvement project, but as this is coming to an end and the business still has available cash and continues to generate cash surpluses, this will not impact on the business.The spike in global energy prices in recent years, will continue to impact the net profit margins for the foreseeable future, but due to the economies of scale that the business is currently achieving, these increases in energy prices will be easily absorbed without impacting seriously on profit margins.

ON BEHALF OF THE BOARD:





V R Vernon - Director


25 September 2024

Oil Salvage Limited (Registered number: 01857473)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of acquisitions, refinement and sale of oil.

DIVIDENDS
Interim dividends per share were paid as follows:
Ordinary £1 shares £1900 - 31 January 2023
£1900 - 28 February 2023
£2075 - 31 March 2023
£205 - 30 April 2023
£205 - 31 May 2023
£205 - 30 June 2023
£205 - 31 July 2023
£205 - 31 August 2023
£205 - 30 September 2023
£205 - 31 October 2023
£205 - 30 November 2023
£205 - 31 December 2023
7720

Preference £1 shares £1.50 - 1 January 2023



The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 7,870,000 .

RESEARCH AND DEVELOPMENT
Oil Salvage Ltd is committed to a continuing research & development program. Area's of research involve the development of processes to improve the quality of re-cycled oils and improvements to processes to improve the efficiency of the business.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

V R Vernon
M Vernon
Miss L Vernon
J R Vernon

Other changes in directors holding office are as follows:

V Vernon - deceased 6 September 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), 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 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.


Oil Salvage Limited (Registered number: 01857473)

Report of the Directors
for the Year Ended 31 December 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





V R Vernon - Director


25 September 2024

Report of the Independent Auditors to the Members of
Oil Salvage Limited

Opinion
We have audited the financial statements of Oil Salvage Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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.

Report of the Independent Auditors to the Members of
Oil Salvage Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, 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 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.

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

In identifying and assessing risks of material misstatement in the financial statements in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, the control environment and the impact of business performance on Directors earnings.
- results of our enquiries of management and key finance persons about their own identification and assessment of the risks and irregularities.
- any matters we identified after obtaining and reviewing company policies and procedures relating to; identifying, evaluating and complying with laws and regulations. Detecting and responding to risks of fraud. The internal controls in place to mitigate the risks of fraud or non-compliance with laws and regulations.

From this assessment, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis of our opinion. Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reading minutes of meetings of those charged with governance, reviewing correspondence with HMRC; and
- in addressing the risk of fraud through management override of controls; we have tested the operational effectiveness of internal controls relevant to the financial statements, tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Oil Salvage Limited


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 a Report of the Auditors 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.




Mr Gregory Newton FCCA (Senior Statutory Auditor)
for and on behalf of Douglas Fairless Partnership
Chartered Certified Accountants
and Statutory Auditors
Seymour Chambers
92 London Road
Liverpool
Merseyside
L3 5NW

25 September 2024

Oil Salvage Limited (Registered number: 01857473)

Statement of Comprehensive
Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 3 26,488,846 33,950,372

Cost of sales 18,142,228 19,518,983
GROSS PROFIT 8,346,618 14,431,389

Administrative expenses 6,321,641 5,448,147
2,024,977 8,983,242

Other operating income 2,247,070 2,552,281
OPERATING PROFIT 5 4,272,047 11,535,523

Interest receivable and similar income 121,740 8,644
PROFIT BEFORE TAXATION 4,393,787 11,544,167

Tax on profit 6 875,478 2,218,658
PROFIT FOR THE FINANCIAL YEAR 3,518,309 9,325,509

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

3,518,309

9,325,509

Oil Salvage Limited (Registered number: 01857473)

Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 9,946,251 9,125,136
9,946,251 9,125,136

CURRENT ASSETS
Stocks 12 2,756,712 2,319,575
Debtors 13 4,948,747 4,608,966
Cash at bank and in hand 5,109,032 8,402,764
12,814,491 15,331,305
CREDITORS
Amounts falling due within one year 14 4,721,902 2,500,056
NET CURRENT ASSETS 8,092,589 12,831,249
TOTAL ASSETS LESS CURRENT
LIABILITIES

18,038,840

21,956,385

PROVISIONS FOR LIABILITIES 18 1,970,309 1,536,163
NET ASSETS 16,068,531 20,420,222

CAPITAL AND RESERVES
Called up share capital 19 101,000 101,000
Retained earnings 20 15,967,531 20,319,222
SHAREHOLDERS' FUNDS 16,068,531 20,420,222

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2024 and were signed on its behalf by:





V R Vernon - Director


Oil Salvage Limited (Registered number: 01857473)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 101,000 12,459,713 12,560,713

Changes in equity
Dividends - (1,466,000 ) (1,466,000 )
Total comprehensive income - 9,325,509 9,325,509
Balance at 31 December 2022 101,000 20,319,222 20,420,222

Changes in equity
Dividends - (7,870,000 ) (7,870,000 )
Total comprehensive income - 3,518,309 3,518,309
Balance at 31 December 2023 101,000 15,967,531 16,068,531

Oil Salvage Limited (Registered number: 01857473)

Cash Flow Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 7,497,032 10,335,301
Tax paid (1,018,443 ) (1,561,470 )
Net cash from operating activities 6,478,589 8,773,831

Cash flows from investing activities
Purchase of tangible fixed assets (2,375,367 ) (1,928,631 )
Sale of tangible fixed assets 445,000 13,026
Interest received 121,740 8,644
Net cash from investing activities (1,808,627 ) (1,906,961 )

Cash flows from financing activities
Amount withdrawn by directors - (1,000,000 )
Equity dividends paid (7,870,000 ) (1,466,000 )
Net cash from financing activities (7,870,000 ) (2,466,000 )

(Decrease)/increase in cash and cash equivalents (3,200,038 ) 4,400,870
Cash and cash equivalents at beginning
of year

2

8,267,245

3,866,375

Cash and cash equivalents at end of year 2 5,067,207 8,267,245

Oil Salvage Limited (Registered number: 01857473)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 4,393,787 11,544,167
Depreciation charges 976,134 902,582
Loss/(profit) on disposal of fixed assets 133,117 (9,598 )
Government grants 1 -
Finance income (121,740 ) (8,644 )
5,381,299 12,428,507
Increase in stocks (437,137 ) (823,496 )
Increase in trade and other debtors (226,581 ) (1,131,833 )
Increase/(decrease) in trade and other creditors 2,779,451 (137,877 )
Cash generated from operations 7,497,032 10,335,301

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 5,109,032 8,402,764
Bank overdrafts (41,825 ) (135,519 )
5,067,207 8,267,245
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 8,402,764 4,027,264
Bank overdrafts (135,519 ) (160,889 )
8,267,245 3,866,375


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 8,402,764 (3,293,732 ) 5,109,032
Bank overdrafts (135,519 ) 93,694 (41,825 )
8,267,245 (3,200,038 ) 5,067,207
Total 8,267,245 (3,200,038 ) 5,067,207

Oil Salvage Limited (Registered number: 01857473)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Oil Salvage Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
The directors have made judgements regarding the depreciation of fixed assets and provision for sludge within stock.

Turnover
Turnover represents net invoice value of goods or services provided, excluding value added tax.

Revenue is recognised based on delivery of goods or service.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - Straight line over 20 years and Straight line over 24 years
Plant and machinery - 10% on reducing balance
Fixtures and fittings - 10% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance

Tangible fixed assets are initially measured at cost. After initial recognition, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

No depreciation has been charged on the costs to date contained within Plant & Machinery which represent an asset under construction, as the asset is not in use, depreciation will be charged once the asset is fully live.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for any waste and evaporation element. Cost is based on the purchase price of oils determined by the average rate at the year end and including direct costs in relation to chemicals used to purify the oils in to a resalable product.

Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from third parties and loans to and from related parties.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Tax credits resulting from research & development claims are recognised in the year in which the tax credits are received.

Oil Salvage Limited (Registered number: 01857473)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is charged to the profit & loss account in the year in which it is incurred. The costs are pure research & development directly related to improving the purity of the waste oil & the recycling processes.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.23 31.12.22
£    £   
Sale of goods 24,036,023 30,995,697
Rendering of services 2,452,823 2,954,675
26,488,846 33,950,372

4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 4,016,607 3,817,632
Social security costs 408,020 411,020
Other pension costs 127,120 100,581
4,551,747 4,329,233

The average number of employees during the year was as follows:
31.12.23 31.12.22

Management 5 5
Administration 22 23
Drivers & yard operatives 65 63
92 91

Oil Salvage Limited (Registered number: 01857473)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. EMPLOYEES AND DIRECTORS - continued

31.12.23 31.12.22
£    £   
Directors' remuneration 581,298 587,149

Information regarding the highest paid director is as follows:
31.12.23 31.12.22
£    £   
Emoluments etc 146,136 144,238

5. OPERATING PROFIT

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

31.12.23 31.12.22
£    £   
Hire of plant and machinery 1,986 2,671
Depreciation - owned assets 976,135 902,581
Loss/(profit) on disposal of fixed assets 133,117 (9,598 )
Auditors' remuneration 12,600 12,000
Other non- audit services 14,974 13,868
Foreign exchange differences 66,622 (75,635 )

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 645,501 1,835,085
Corporation tax adjustment (204,169 ) (264,559 )
Total current tax 441,332 1,570,526

Deferred tax 434,146 648,132
Tax on profit 875,478 2,218,658

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Profit before tax 4,393,787 11,544,167
Profit multiplied by the standard rate of corporation tax in the UK of
23.521% (2022 - 19%)

1,033,463

2,193,392

Effects of:
Expenses not deductible for tax purposes 11,386 7,393
Capital allowances in excess of depreciation (398,248 ) (364,848 )
Research & Development Enhancement Deduction (204,169 ) (264,559 )
Deferred tax movement 434,146 648,132

Group relief (1,100 ) (852 )
Total tax charge 875,478 2,218,658

Corporation tax adjustment of £204,169 related a research and development claim for financial year ended 31/12/22.

Oil Salvage Limited (Registered number: 01857473)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

7. DIVIDENDS
31.12.23 31.12.22
£    £   
Ordinary shares of £1 each
Interim 7,720,000 1,316,000
Preference shares of £1 each
Interim 150,000 150,000
7,870,000 1,466,000

8. PENSION COMMITMENTS

The company operates a defined contributions pension scheme.The assets of the scheme are held separately from those of the company in an independently administered fund.The pension cost charge represents contributions payable by the company to the fund and amounted to £124,549 (2022 -£99,081). At the balance sheet date £19,002 (2022 - £0) was owing to the fund contained within other creditors.

9. RESEARCH AND DEVELOPMENT

The total amount of research & development expenditure charged to the profit & loss account for 2023 was £245,351 (2022 - £130,935).

10. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 January 2023
and 31 December 2023 2,500
AMORTISATION
At 1 January 2023
and 31 December 2023 2,500
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

11. TANGIBLE FIXED ASSETS
Freehold Short Plant and
property leasehold machinery
£    £    £   
COST
At 1 January 2023 462,278 778,703 11,757,160
Additions - - 1,423,044
Disposals (462,278 ) (158,808 ) -
At 31 December 2023 - 619,895 13,180,204
DEPRECIATION
At 1 January 2023 - 290,479 4,709,328
Charge for year - 30,995 555,986
Eliminated on disposal - (91,284 ) -
At 31 December 2023 - 230,190 5,265,314
NET BOOK VALUE
At 31 December 2023 - 389,705 7,914,890
At 31 December 2022 462,278 488,224 7,047,832

Oil Salvage Limited (Registered number: 01857473)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

11. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 98,968 3,184,406 66,034 16,347,549
Additions 280 929,490 22,553 2,375,367
Disposals - (1,100,789 ) - (1,721,875 )
At 31 December 2023 99,248 3,013,107 88,587 17,001,041
DEPRECIATION
At 1 January 2023 51,770 2,135,494 35,342 7,222,413
Charge for year 4,734 371,323 13,097 976,135
Eliminated on disposal - (1,052,474 ) - (1,143,758 )
At 31 December 2023 56,504 1,454,343 48,439 7,054,790
NET BOOK VALUE
At 31 December 2023 42,744 1,558,764 40,148 9,946,251
At 31 December 2022 47,198 1,048,912 30,692 9,125,136

Contained within the cost amount for Plant & Machinery is £2,796,434 for a refinery under construction, the asset is expected to be completed and go live in October 2024. No depreciation has been charged on this element of Plant & Machinery, depreciation will be charged once the asset is in use.

Freehold property was transferred to Vernon Developments Ltd during the year a company within the group under a nil gain/nil loss inter group transfer.

12. STOCKS
31.12.23 31.12.22
£    £   
Stocks 2,756,712 2,319,575

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 3,464,977 3,492,820
Inter-company 785,462 414,462
Corporation tax 113,200 -
VAT 281,585 442,861
Accruals 87,698 61,898
Prepayments 215,825 196,925
4,948,747 4,608,966

Oil Salvage Limited (Registered number: 01857473)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 15) 41,825 135,519
Trade creditors 2,195,220 1,336,544
Corporation taxation 6,712 470,623
Social security and other taxes 107,809 103,906
Other creditors 19,002 -
Credit card - 11,401
Inter-company 1,899,850 30,524
Accruals and deferred income 11,172 -
Accrued expenses 357,872 301,699
Deferred government grants 82,440 109,840
4,721,902 2,500,056

15. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 41,825 135,519

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
£    £   
Within one year 194,400 201,097
Between one and five years 237,600 237,600
In more than five years 144,000 158,400
576,000 597,097

A lease was issued by Vernon Developments Ltd in 2005 for a period of 20 years with monthly rental amounts payable.

A lease was issued by the landlord of 53a Strand Road in 2018 for a period of 20 years with monthly rental amounts payable.

17. SECURED DEBTS

HSBC has a debenture including fixed charge over all present freehold and leasehold property. First charge over book and other debts, chattels, goodwill and uncalled capital, both present and future. Also the first floating charge over all assets and undertaking both present and future dated 16th December 2014.

Unlimited multilateral guarantee dated 06 July 2020 given by Oil Salvage Ltd, Lyster Holdings Ltd, Vernon Developments UK Ltd.

18. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 1,970,309 1,536,163

Deferred
tax
£   
Balance at 1 January 2023 1,536,163
Accelerated capital allowances 434,146
Balance at 31 December 2023 1,970,309

Oil Salvage Limited (Registered number: 01857473)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
1,000 Ordinary £1 1,000 1,000
100,000 Preference £1 100,000 100,000
101,000 101,000

The Ordinary Shares and the Preference Shares shall rank pari passu in all respects save that:

The Preference Shareholders shall be entitled to a fixed cash dividend of £1.50 per share per annum to be paid to the Preference Shareholders on a monthly basis.

20. RESERVES
Retained
earnings
£   

At 1 January 2023 20,319,222
Profit for the year 3,518,309
Dividends (7,870,000 )
At 31 December 2023 15,967,531

21. ULTIMATE PARENT COMPANY

Lyster Holdings Ltd is regarded by the directors as being the company's ultimate parent company.

The registered office of the parent is as follows.

Head Office Works
Lyster Road
Bootle
England
L20 1AS

22. CAPITAL COMMITMENTS
31.12.23 31.12.22
£    £   
Contracted but not provided for in the
financial statements 250,000 681,230

£250,000 has been contracted for a planned extension to the refinery, this is in relation to the Asset under construction referred to in note 11.

23. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
31.12.23 31.12.22
£    £   
Dividends paid 7,870,000 1,466,000
Amount due to related party 1,899,850 30,524

Key management personnel of the entity or its parent (in the aggregate)
31.12.23 31.12.22
£    £   
Rent 330,000 240,000
Land Purchase 445,000 -
Subscriptions 3,000 -
Amount due from related party 713,462 390,462

Oil Salvage Limited (Registered number: 01857473)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

23. RELATED PARTY DISCLOSURES - continued

The loans from the related parties are unsecured, interest free and repayable on demand.