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REGISTERED NUMBER: 11099036 (England and Wales)














Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2023

for

Lyster Holdings Ltd

Lyster Holdings Ltd (Registered number: 11099036)






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




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 15


Lyster Holdings Ltd

Company Information
for the Year Ended 31 December 2023







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





REGISTERED OFFICE: Head Office Works
Lyster Road
Bootle
Liverpool
Merseyside
L20 1AS





REGISTERED NUMBER: 11099036 (England and Wales)





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

Lyster Holdings Ltd (Registered number: 11099036)

Group Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

Lyster Holdings Ltd is the holding company for Oil Salvage Ltd and Vernon Developments UK Ltd, owning 100% of the share capital in both companies Oil Salvage Ltd and Vernon Developments UK Ltd have been trading successfully for several decades.

Oil Salvage Ltd is one of Britain's largest specialist waste oil management and oil recycling organisations. The company remains 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 has also resulted in improved profit margins.

Vernon Developments UK Ltd is company that owns and rents land to Oil Salvage Ltd in relation to the site that it trades from. Vernon Developments Ltd also trades occasionally in scrap metals.

REVIEW OF BUSINESS
The main group activity is through trading and recycling waste oil products through Oil Salvage Ltd. 2023 has seen Oil Salvage Ltd continue to deliver successful results year on year. The group turnover during 2023 has decreased as expected due to the decrease in oil price resulting from the start of the Ukraine war. Group Turnover for 2023 has come in at £26,635,843, compared to £34,117,968 in 2022, which is a 21.93% year on year decrease. The group turnover was driven almost entirely by Oil Salvage Ltd, which contributed £26,488,846.

Gross and net profit margins are considered by the directors to be a key performance indicator for both the group and the main trading subsidiary Oil Salvage Ltd. Gross profit margins have decreased due to the decrease in the global oil price during the year with the year coming in at 31.89% (2022 - 42.79%) Group profits before taxation have come in at £4,795,076 (2022 - £11,892,607) which is a 18% return for the year. Again, this is driven by the activity in Oil Salvage Ltd. Vernon Developments Ltd main activity of the lease of the land that Oil Salvage Ltd trades from does not contribute material income to the group due to the elimination of inter group transactions.

The group, through Oil Salvage Ltd, 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 £3.6 million has been invested in 2023 in our fixed assets (see page 21).During the year the group purchased the main trading site for £1.2million which is owned by the subsidiary Vernon Developments Ltd. As previously mentioned, significant investment has taken place during 2023 and in 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 group has seen a cash decline from the previous year, the decreased cash flows during the year are related the the groups investment in the expansion of newly built refinery during the year which expected to go online in 2024. The group is showing a cash decrease of £3,199,350 at 31/12/23, as detailed on page 14, despite investing over £2.3 million in asset investment during the year and the group maintains a healthy cash balance of £6,102,655 at 31/12/23.

PRINCIPAL RISKS AND UNCERTAINTIES
The risks to the group lie within the main trading subsidiary, Oil Salvage Ltd. Routine Environment Agency site visits have not raised any concerns and show Lyster Holdings Ltd's commitment to minimising the impact of the group on the environment. Possible breach of environmental legislation and resulting fines will continue to be a risk to the group 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 group 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 group still has available cash this will not impact on the group going forward. The volatility of global oil prices will always be a risk to the performance of profit margins, but due to the buoyant market at present, the business will be able to withstand drops in oil prices comfortably in the short to medium term, which would give them time to adjust for the long term. The spike in global energy prices 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

Lyster Holdings Ltd (Registered number: 11099036)

Report of the Directors
for the Year Ended 31 December 2023

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

DIVIDENDS
Interim dividends per share were paid as follows:
Ordinary A £1 shares NIL
Ordinary B £1 shares £9,719
Ordinary C £1 shares £5,614
Ordinary D £1 shares £9,871
Ordinary E £1 shares £9,699
Preference shares £1.50


The directors recommend that no final dividends be paid.

The total distribution of dividends for the period ended 31 December 2023 will be £7,863,710.

RESEARCH AND DEVELOPMENT
Lyster Holdings Ltd is committed to a continuing research & development program through it's main trading subsidiary Oil Salvage Ltd. 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
Miss L Vernon
J R Vernon
M 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 Group 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). 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 the group and of the profit or loss of the group 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.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

Lyster Holdings Ltd (Registered number: 11099036)

Report of the Directors
for the Year Ended 31 December 2023


AUDITORS
The auditors, Douglas Fairless Partnership, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





V R Vernon - Director


25 September 2024

Report of the Independent Auditors to the Members of
Lyster Holdings Ltd

Opinion
We have audited the financial statements of Lyster Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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
Lyster Holdings Ltd


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 group's and the parent 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 group or the parent 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
Lyster Holdings Ltd


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

25 September 2024

Lyster Holdings Ltd (Registered number: 11099036)

Consolidated
Statement of Comprehensive
Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 3 26,635,843 34,117,968

Cost of sales 18,142,228 19,518,983
GROSS PROFIT 8,493,615 14,598,985

Administrative expenses 6,058,948 5,267,303
2,434,667 9,331,682

Other operating income 2,249,397 2,552,281
OPERATING PROFIT 5 4,684,064 11,883,963

Interest receivable and similar income 121,740 8,644
PROFIT BEFORE TAXATION 4,805,804 11,892,607

Tax on profit 6 984,185 2,285,440
PROFIT FOR THE FINANCIAL YEAR 3,821,619 9,607,167

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

3,821,619

9,607,167

Profit attributable to:
Owners of the parent 3,821,619 9,607,167

Total comprehensive income attributable to:
Owners of the parent 3,821,619 9,607,167

Lyster Holdings Ltd (Registered number: 11099036)

Consolidated Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 12 - -
Tangible assets 13 13,021,070 10,535,014
Investments 14 - -
13,021,070 10,535,014

CURRENT ASSETS
Stocks 15 2,756,712 2,319,575
Debtors 16 4,166,795 4,269,747
Cash at bank and in hand 6,102,655 9,437,524
13,026,162 16,026,846
CREDITORS
Amounts falling due within one year 17 5,736,758 2,646,541
NET CURRENT ASSETS 7,289,404 13,380,305
TOTAL ASSETS LESS CURRENT
LIABILITIES

20,310,474

23,915,319

PROVISIONS FOR LIABILITIES 21 1,996,726 1,559,480
NET ASSETS 18,313,748 22,355,839

CAPITAL AND RESERVES
Called up share capital 22 101,105 101,105
Retained earnings 23 18,212,643 22,254,734
SHAREHOLDERS' FUNDS 18,313,748 22,355,839

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


Lyster Holdings Ltd (Registered number: 11099036)

Company Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 12 - -
Tangible assets 13 - -
Investments 14 101,100 101,100
101,100 101,100

CURRENT ASSETS
Debtors 16 2,017,355 108,690
Cash at bank 914,932 3,124
2,932,287 111,814
CREDITORS
Amounts falling due within one year 17 2,921,047 102,187
NET CURRENT ASSETS 11,240 9,627
TOTAL ASSETS LESS CURRENT
LIABILITIES

112,340

110,727

CAPITAL AND RESERVES
Called up share capital 22 101,105 101,105
Retained earnings 23 11,235 9,622
SHAREHOLDERS' FUNDS 112,340 110,727

Company's profit for the financial year 7,865,323 1,461,517

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


Lyster Holdings Ltd (Registered number: 11099036)

Consolidated 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 101,105 14,105,067 14,206,172

Changes in equity
Dividends - (1,457,500 ) (1,457,500 )
Total comprehensive income - 9,607,167 9,607,167
Balance at 31 December 2022 101,105 22,254,734 22,355,839

Changes in equity
Dividends - (7,863,710 ) (7,863,710 )
Total comprehensive income - 3,821,619 3,821,619
Balance at 31 December 2023 101,105 18,212,643 18,313,748

Lyster Holdings Ltd (Registered number: 11099036)

Company 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 101,105 5,605 106,710

Changes in equity
Dividends - (1,457,500 ) (1,457,500 )
Total comprehensive income - 1,461,517 1,461,517
Balance at 31 December 2022 101,105 9,622 110,727

Changes in equity
Dividends - (7,863,710 ) (7,863,710 )
Total comprehensive income - 7,865,323 7,865,323
Balance at 31 December 2023 101,105 11,235 112,340

Lyster Holdings Ltd (Registered number: 11099036)

Consolidated 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 6,438,477 11,332,993
Tax paid (1,089,608 ) (1,631,306 )
Net cash from operating activities 5,348,869 9,701,687

Cash flows from investing activities
Purchase of tangible fixed assets (3,628,739 ) (1,928,630 )
Sale of tangible fixed assets - 13,026
Interest received 121,740 8,644
Net cash from investing activities (3,506,999 ) (1,906,960 )

Cash flows from financing activities
Amount introduced by directors 1 2
Amount withdrawn by directors 2,822,489 (1,470,780 )
Equity dividends paid (7,863,710 ) (1,457,500 )
Net cash from financing activities (5,041,220 ) (2,928,278 )

(Decrease)/increase in cash and cash equivalents (3,199,350 ) 4,866,449
Cash and cash equivalents at beginning
of year

2

9,302,005

4,435,556

Cash and cash equivalents at end of year 2 6,102,655 9,302,005

Lyster Holdings Ltd (Registered number: 11099036)

Notes to the Consolidated 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 4,805,804 11,892,607
Depreciation charges 993,237 925,585
Loss/(profit) on disposal of fixed assets 149,445 (9,598 )
Government grants 3 (2 )
Finance income (121,740 ) (8,644 )
5,826,749 12,799,948
Increase in stocks (437,137 ) (823,496 )
Decrease/(increase) in trade and other debtors 216,152 (577,626 )
Increase/(decrease) in trade and other creditors 832,713 (65,833 )
Cash generated from operations 6,438,477 11,332,993

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 6,102,655 9,437,524
Bank overdrafts - (135,519 )
6,102,655 9,302,005
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 9,437,524 4,596,445
Bank overdrafts (135,519 ) (160,889 )
9,302,005 4,435,556


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 9,437,524 (3,334,869 ) 6,102,655
Bank overdrafts (135,519 ) 135,519 -
9,302,005 (3,199,350 ) 6,102,655
Total 9,302,005 (3,199,350 ) 6,102,655

Lyster Holdings Ltd (Registered number: 11099036)

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

1. STATUTORY INFORMATION

Lyster Holdings Ltd 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 General 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.

Basis of consolidation
The consolidated financial statements incorporate those of Lyster Holdings Ltd and all of it's subsidiaries, all group companies are 100% subsidiaries of Lyster holdings Ltd.

All financial statements of the group companies are made up to 31st December 2023 and all intra-group transactions between group companies have been eliminated on consolidation.

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 during the period, excluding value added tax.

Revenue is recognised based on delivery date of the 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.
Freehold property - not provided
Short leasehold - Straight line over 20 years and Straight line over 24 years
Improvements to property - not provided
Plant and machinery - 15% on reducing balance and 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.

Freehold property is held at cost value for land, under FRS102 section 17.16 land is deemed to have an unlimited useful life therefore no depreciation is charged.

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 group 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.

Lyster Holdings Ltd (Registered number: 11099036)

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

2. ACCOUNTING POLICIES - continued

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 related to research & development claims is recognised in the year in which the refund is received.

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 group operates a defined contribution pension scheme. Contributions payable to the 's group'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 group.

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 2,599,820 3,122,271
26,635,843 34,117,968

4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 4,043,895 3,844,731
Social security costs 408,020 411,020
Other pension costs 127,120 100,581
4,579,035 4,356,332

Lyster Holdings Ltd (Registered number: 11099036)

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

4. EMPLOYEES AND DIRECTORS - continued

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

Management 5 5
Administration 25 26
Driver & yard operatives 65 63
95 94

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 146,137 144,239

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 993,238 925,584
Loss/(profit) on disposal of fixed assets 149,445 (9,598 )
Auditors' remuneration 16,220 15,460
Other non- audit services 17,804 16,338
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 751,108 1,906,250
Corporation tax adjustment (204,169 ) (264,571 )
Total current tax 546,939 1,641,679

Deferred tax 437,246 643,761
Tax on profit 984,185 2,285,440

7. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


Lyster Holdings Ltd (Registered number: 11099036)

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

8. DIVIDENDS

£   
Ordinary B shares of £1 each 2,147,970
Interim
Ordinary C shares of £1 each 1,240,700
Interim
Ordinary D shares of £1 each 2,181,570
Interim
Ordinary E shares of £1 each 2,143,470
Interim
Preference shares of £1 each 150,000
Interim
7,863,710

9. PENSION COMMITMENTS

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group 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.

10. RESEARCH AND DEVELOPMENT

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

11. DIVIDENDS RECEIVED

Lyster Holdings Ltd received dividends of £7,870,000 (2022 - £1,466,000) from it's subsidiary Oil Salvage Ltd.

12. INTANGIBLE FIXED ASSETS

Group
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 -

Lyster Holdings Ltd (Registered number: 11099036)

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

13. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold Short to Plant and
property leasehold property machinery
£    £    £    £   
COST
At 1 January 2023 1,403,582 778,703 338,225 12,300,672
Additions 1,253,371 - - 1,423,045
Disposals (17,278 ) (158,808 ) - (158,879 )
At 31 December 2023 2,639,675 619,895 338,225 13,564,838
DEPRECIATION
At 1 January 2023 - 290,479 - 5,122,491
Charge for year - 30,995 - 573,089
Eliminated on disposal - (91,284 ) - (142,551 )
At 31 December 2023 - 230,190 - 5,553,029
NET BOOK VALUE
At 31 December 2023 2,639,675 389,705 338,225 8,011,809
At 31 December 2022 1,403,582 488,224 338,225 7,178,181

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 98,968 3,184,406 66,034 18,170,590
Additions 280 929,490 22,553 3,628,739
Disposals - (1,100,789 ) - (1,435,754 )
At 31 December 2023 99,248 3,013,107 88,587 20,363,575
DEPRECIATION
At 1 January 2023 51,770 2,135,494 35,342 7,635,576
Charge for year 4,734 371,323 13,097 993,238
Eliminated on disposal - (1,052,474 ) - (1,286,309 )
At 31 December 2023 56,504 1,454,343 48,439 7,342,505
NET BOOK VALUE
At 31 December 2023 42,744 1,558,764 40,148 13,021,070
At 31 December 2022 47,198 1,048,912 30,692 10,535,014

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.

Lyster Holdings Ltd (Registered number: 11099036)

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

14. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 101,100
NET BOOK VALUE
At 31 December 2023 101,100
At 31 December 2022 101,100

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Oil Salvage Ltd
Registered office: Lyster Road, Bootle, Liverpool, Merseyside, L20 1AS
Nature of business:
%
Class of shares: holding
Ordinary 100.00
Preference 100.00
31.12.23 31.12.22
£    £   
Aggregate capital and reserves 16,068,531 20,420,222
Profit for the year 3,518,309 9,325,509

The subsidiary undertaking is included in the consolidated financial statements.

Vernon Developments UK Ltd
Registered office: Lyster Road, Bootle, Liverpool, Merseyside, L20 1AS
Nature of business:
%
Class of shares: holding
Ordinary 100.00
31.12.23 31.12.22
£    £   
Aggregate capital and reserves 2,233,978 1,925,991
Profit for the year 307,987 286,142

The subsidiary undertaking is included in the consolidated financial statements.


15. STOCKS

Group
31.12.23 31.12.22
£    £   
Stocks 2,756,712 2,319,575

Lyster Holdings Ltd (Registered number: 11099036)

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

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Trade debtors 3,479,132 3,555,176 - -
Inter-company - - 2,017,355 108,690
Corporation tax 113,200 - - -
VAT 259,016 455,748 - -
Accruals 99,622 61,898 - -
Prepayments 215,825 196,925 - -
4,166,795 4,269,747 2,017,355 108,690

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Bank loans and overdrafts (see note 18) - 135,519 - -
Trade creditors 2,123,268 1,342,404 - 3,840
Corporation taxation 112,319 541,788 - -
Social security and other taxes 107,809 103,906 - -
Other creditors 19,002 - - -
Credit card - 11,401 - -
Directors' current accounts 2,916,637 94,147 2,916,637 94,147
Accruals and deferred income 11,172 - - -
Accrued expenses 364,111 307,536 4,410 4,200
Deferred government grants 82,440 109,840 - -
5,736,758 2,646,541 2,921,047 102,187

18. LOANS

An analysis of the maturity of loans is given below:

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

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
31.12.23 31.12.22
£    £   
Within one year 14,400 21,097
Between one and five years 57,600 57,600
In more than five years 158,400 158,400
230,400 237,097

Lyster Holdings Ltd (Registered number: 11099036)

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

19. LEASING AGREEMENTS - continued

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

A lease was issued by Mersey Docks and Harbour Company in 2015 for a period of 24 years with monthly rental amounts payable. This land was purchased by the group through Vernon Developments Ltd in March 2023 with the current lease being cancelled and a new inter-group lease is currently being drawn up.

20. SECURED DEBTS

HSBC has a debenture including fixed charge over all present freehold and leasehold property related to Oil Salvage Ltd. 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.

HSBC Bank PLC has a fixed and floating charges over the undertaking and all property and assets present and future including goodwill bookdebts uncalled capital buildings fixtures fixed plant and machinery related to Vernon Developments Ltd.

HSBC Bank PLC has a charge over F/H property k/a land and buildings on the south east side of lyster road, land on the south east side of lyster road, land on the south side of lyster road and land on the north-east side of arctic road, bootle t/no's MS148386, MS160525, MS487981 and MS313853 related to Vernon Developments Ltd. With the benefit of all rights licences guarantees rent deposits contracts deeds undertakings and warranties relating. To the property any shares or membership rights in any management company for the property any goodwill of any business from time to time carried on at the property any rental and other money payable under any lease licence or other interest created in respect of the property and all other payments whatever in respect of the property.

21. PROVISIONS FOR LIABILITIES

Group
31.12.23 31.12.22
£    £   
Deferred tax 1,996,726 1,559,480

Group
Deferred
tax
£   
Balance at 1 January 2023 1,559,480
Capital allowance timing diffs 437,246
Balance at 31 December 2023 1,996,726

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal Value: £
221 Ordinary A £1 221
221 Ordinary B £1 221
221 Ordinary C £1 221
221 Ordinary D £1 221
221 Ordinary E £1 221
100000 Preference shares £1 100,000
101,105

The ordinary shares and preference shares shall rank pari passu in all respects save that:

The Preference shares shall be entitled to a fixed cash dividend of £1.50 per share per the preference shareholders on a monthly basis.

Lyster Holdings Ltd (Registered number: 11099036)

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

23. RESERVES

Group
Retained
earnings
£   

At 1 January 2023 22,254,734
Profit for the year 3,821,619
Dividends (7,863,710 )
At 31 December 2023 18,212,643

Company
Retained
earnings
£   

At 1 January 2023 9,622
Profit for the year 7,865,323
Dividends (7,863,710 )
At 31 December 2023 11,235


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

Capital commitments - Oil Salvage Ltd - £250,000 has been contracted for a planned extension to the refinery.

25. ULTIMATE CONTROLLING PARTY

The controlling party is The Vernon family.