Company registration number 01721300 (England and Wales)
JWS WASTE & RECYCLING SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
JWS WASTE & RECYCLING SERVICES LIMITED
COMPANY INFORMATION
Directors
B McCabe
C Mountain
W Fisher
Company number
01721300
Registered office
Westport House
35 Frederick Road
Salford
Greater Manchester
M6 6LD
Auditor
Champion Accountants LLP
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
JWS WASTE & RECYCLING SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
JWS WASTE & RECYCLING SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 December 2023.

 

 

Principal activities and review of the business

The company contracts commercial customers to provide recycling and waste treatment services.

 

The revenue stream is from processing of commercial and industrial waste and sorting and processing of construction and demolition waste. UK Government policy supports the sector that the company is active in, waste management.

 

The UK faces tough targets for waste recycling and landfill diversion and has escalating levels of landfill taxation, which support the approach to waste management.

 

The collection business in JWS was transferred to a sister company in the year, to allow management to focus on developing the processing business in JWS.

 

Results

The profit and loss account and other comprehensive income is set out on page 10 and shows turnover for the year of £17,331,993 (2022: £19,690,711) and an operating profit after other income and exceptional items for the year of £282,696 (2022: £548,530).

 

As at 30 December 2023, the company had net current assets of £7,077,912 (2022: £6,157,952) and net assets of £11,035,643 (2022: £10,824,471). The financial statements have been prepared on a going concern basis, which assumes that the company will have sufficient funds to trade for the foreseeable future.

 

JWS WASTE & RECYCLING SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 2 -
Principal risks and uncertainties facing the company

Inflation

 

The directors have mitigated any significant risk of exposure to cost inflation by ensuring that revenues are subject to annual price increases based upon the movement in cost inflation indices.

 

Financial instruments

 

The company’s financial instruments comprise cash and liquid resources, and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise and control the finance for the facility.

 

The main risks arising from the financial instruments are liquidity risk, credit risk and interest rate risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.

 

Liquidity risk

 

The company monitors short term cash flows as part of its weekly control procedures. The directors also consider cash flow projections on a quarterly basis as part of a regular reforecast of business performance. The company’s fellow group undertaking, Pandagreen Limited, supports the company in providing funding as required.

 

Credit risk

 

The company’s credit risk is primarily attributable to its trade debtors. The majority of the company’s revenue is derived from contracts with local authorities and the directors believe that such customers do not present a significant credit risk. Risks against other customers are managed by credit checks on new customers and by monitoring payments against contractual agreements and the company’s standard terms and conditions.

 

Interest rate risk

 

The directors have mitigated interest rate risk by ensuring that all of the company’s borrowings are at fixed interest rates.

 

Future Developments

 

The company plans to continue its present activities.

 

On behalf of the board

B McCabe
Director
24 September 2024
JWS WASTE & RECYCLING SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 December 2023.

Principal activities

The principal activity of the company continued to be that of skip hire, haulage and the recycling of waste.

Directors

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

B McCabe
C Mountain
C Bloom
(Resigned 7 March 2024)
W Fisher
(Appointed 7 March 2024)
Results and dividends

The results for the year are set out on page 8.

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

Auditor

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
B McCabe
W Fisher
Director
Director
24 September 2024
24 September 2024
JWS WASTE & RECYCLING SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 DECEMBER 2023
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

JWS WASTE & RECYCLING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JWS WASTE & RECYCLING SERVICES LIMITED
- 5 -
Opinion

We have audited the financial statements of JWS Waste & Recycling Services Limited (the 'company') for the year ended 30 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

JWS WASTE & RECYCLING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JWS WASTE & RECYCLING SERVICES LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

As part of our planning process:

 

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102 and Companies Act 2006.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment

accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

JWS WASTE & RECYCLING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JWS WASTE & RECYCLING SERVICES LIMITED (CONTINUED)
- 7 -

 

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to depreciation methods & cut-off.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Performing a physical verification of key assets.

- Documenting and verifying all significant related party balances and transactions.

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

Mark Turner FCA
Senior Statutory Auditor
For and on behalf of Champion Accountants LLP
24 September 2024
Chartered Accountants
Statutory Auditor
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
JWS WASTE & RECYCLING SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
17,331,993
19,690,711
Cost of sales
(15,067,824)
(16,233,660)
Gross profit
2,264,169
3,457,051
Administrative expenses
(1,981,473)
(2,908,521)
Operating profit
4
282,696
548,530
Interest payable and similar expenses
7
(20,335)
(112,742)
Profit before taxation
262,361
435,788
Tax on profit
8
(51,189)
36,155
Profit for the financial year
211,172
471,943

The profit and loss account has been prepared on the basis that all operations are continuing operations.

JWS WASTE & RECYCLING SERVICES LIMITED
BALANCE SHEET
AS AT
30 DECEMBER 2023
30 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
4,429,160
5,070,464
Current assets
Debtors
10
8,752,485
10,553,601
Cash at bank and in hand
2,340,252
845,690
11,092,737
11,399,291
Creditors: amounts falling due within one year
11
(4,014,825)
(4,881,339)
Net current assets
7,077,912
6,517,952
Total assets less current liabilities
11,507,072
11,588,416
Creditors: amounts falling due after more than one year
12
(40,598)
(192,981)
Provisions for liabilities
Deferred tax liability
14
430,831
570,964
(430,831)
(570,964)
Net assets
11,035,643
10,824,471
Capital and reserves
Called up share capital
16
2
2
Revaluation reserve
17
2,168,316
2,168,316
Profit and loss reserves
17
8,867,325
8,656,153
Total equity
11,035,643
10,824,471

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

The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
B McCabe
W Fisher
Director
Director
Company registration number 01721300 (England and Wales)
JWS WASTE & RECYCLING SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 DECEMBER 2023
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 31 December 2021
2
2,168,316
8,184,210
10,352,528
Year ended 30 December 2022:
Profit and total comprehensive income for the year
-
-
471,943
471,943
Balance at 30 December 2022
2
2,168,316
8,656,153
10,824,471
Year ended 30 December 2023:
Profit and total comprehensive income for the year
-
-
211,172
211,172
Balance at 30 December 2023
2
2,168,316
8,867,325
11,035,643
JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

JWS Waste & Recycling Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Westport House, 35 Frederick Road, Salford, Greater Manchester, M6 6LD.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Broom Investments Limited. These consolidated financial statements are available from its registered office.

1.2
Going concern

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

1.3
Turnover

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

 

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

JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
nil
Plant and equipment
15% reducing balance, and 20%, 33% and 50% straight line
Motor vehicles
25% reducing balance
Right of use assets
Over the finance lease term

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

No depreciation is provided on freehold property; these assets are well maintained and it is considered that the residual value is close to the carrying value making depreciation insignificant.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.10
Employee benefits

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

 

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

 

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

1.11
Retirement benefits

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

1.12
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.13
Foreign exchange

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

JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Leases

The Company has entered into leases as a lessee obtaining the right to use of property, plant and equipment. The classification of such leases as operating leases or finance leases requires the company to judge, based on evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and thus whether the lease assets and liabilities should be recognised in the statement of financial position.

Right of use assets

As the ultimate parent company prepare financial statements under IFRS, which recognises right of use assets along with the corresponding lease liability, to be consistent with the ultimate parent company's policy, the treatment of leases has changed from the date of acquisition.

 

Right of use assets are initially measured at cost, comprising the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date. Subsequently, right of use assets are measured at cost, less any accumulated depreciation and any accumulated impairment losses, and are adjusted for certain re-measurements of the lease liability. Depreciation is calculated on a straight line basis over the length of the lease.

 

The company has elected to apply exemptions for short term leases and leases for which the underlying asset is of low value. For these leases, payments are charged to the profit and loss account on a straight line basis over the term of the relevant lease.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
17,331,993
19,690,711
JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
26,500
16,500
Depreciation of owned tangible fixed assets
443,270
314,534
Depreciation of tangible fixed assets held under finance leases
248,621
723,930
Profit on disposal of tangible fixed assets
-
(6,345)
Operating lease charges
244,531
147,987
5
Employees

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

2023
2022
Number
Number
Production
13
39
Administrative
7
17
Management
-
2
Total
20
58

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
840,766
2,088,442
Social security costs
89,471
268,594
Pension costs
15,252
41,749
945,489
2,398,785
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
-
0
113,839
Company pension contributions to defined contribution schemes
-
1,321
-
0
115,160
JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 18 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
379
-
Interest on finance leases and hire purchase contracts
19,956
112,742
20,335
112,742
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
154,614
162,907
Adjustments in respect of prior periods
36,708
-
0
Total current tax
191,322
162,907
Deferred tax
Origination and reversal of timing differences
(140,133)
(199,062)
Total tax charge/(credit)
51,189
(36,155)

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
262,361
435,788
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
61,666
82,800
Tax effect of expenses that are not deductible in determining taxable profit
-
0
1,033
Adjustments in respect of prior years
21,571
-
0
Group relief
(169,781)
(189,870)
Permanent capital allowances in excess of depreciation
-
0
69,882
Deferred tax adjustments in respect of prior years
(17,638)
-
0
Remeasurement of deferred tax for change in tax rate
(7,329)
-
0
Fixed asset difference
(7,051)
-
0
Payments/(receipt) for group relief
169,751
-
0
Taxation charge/(credit) for the year
51,189
(36,155)
JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 19 -
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Motor vehicles
Right of use assets
Total
£
£
£
£
£
Cost or valuation
At 31 December 2022
4,000,000
2,411,509
44,500
379,495
6,835,504
Additions
-
0
80,585
-
0
-
0
80,585
Disposals
-
0
(14,998)
(15,000)
-
0
(29,998)
At 30 December 2023
4,000,000
2,477,096
29,500
379,495
6,886,091
Depreciation and impairment
At 31 December 2022
-
0
1,600,119
8,194
156,727
1,765,040
Depreciation charged in the year
-
0
557,491
9,834
124,566
691,891
At 30 December 2023
-
0
2,157,610
18,028
281,293
2,456,931
Carrying amount
At 30 December 2023
4,000,000
319,486
11,472
98,202
4,429,160
At 30 December 2022
4,000,000
811,390
36,306
222,768
5,070,464

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and equipment
29,765
153,820
Right of use assets
98,202
222,768
127,967
376,588

Plant and machinery with a carrying amount of £127,967 (2022 - £376,588) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Land and buildings with a carrying amount of £4.0m were revalued at 31 October 2018 by Gerald Eve LLP, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. As at 30 December 2023, management still feel that the valuation is materially correct.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Freehold land and buildings
2023
2022
£
£
Cost
2,083,992
2.083,992
JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 20 -
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
394,741
1,334,896
Corporation tax recoverable
3,447
-
0
Amounts owed by group undertakings
8,181,506
8,941,880
Other debtors
7,170
-
0
Prepayments and accrued income
165,621
276,825
8,752,485
10,553,601
11
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
13
102,621
260,557
Trade creditors
1,631,577
2,480,365
Amounts owed to group undertakings
1,353,240
1,728,146
Corporation tax
-
0
7,973
Other taxation and social security
39,592
95,296
Other creditors
3,502
-
0
Accruals and deferred income
884,293
309,002
4,014,825
4,881,339

Net obligations under finance and hire purchase contracts are secured by fixed charges on the assets concerned.

12
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
13
40,598
192,981

Net obligations under finance and hire purchase contracts are secured by fixed charges on the assets concerned.

13
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
102,621
260,557
In two to five years
40,598
192,981
143,219
453,538
JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
13
Finance lease obligations
(Continued)
- 21 -

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Included within finance lease obligations are right of use lease liabilities amounting to £98,202 (2022: £222,768). The lease obligations are secured against the assets concerned.

14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
46,064
186,197
Revaluations
384,767
384,767
430,831
570,964
2023
Movements in the year:
£
Liability at 31 December 2022
570,964
Credit to profit or loss
(140,133)
Liability at 30 December 2023
430,831
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,252
41,749

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

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2
JWS WASTE & RECYCLING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 22 -
17
Reserves
Revaluation reserve

Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.

Profit and loss reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

18
Related party transactions

The company has taken advantage of FRS 102 paragraph 33.1A available to companies producing consolidated group financial statements and chosen not to disclose related party transactions within the group for 100% owned subsidiaries.

 

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £nil (2022: £113,839).

19
Ultimate controlling party

The immediate parent company is JWS Holdings Limited, a company registered in England and Wales. The immediate parent company of JWS Holdings Limited is JWS Holdings Group Limited, a company registered in England and Wales. The registered office of both JWS Holdings Limited and JWS Holdings Group Limited is Westport House, 35 Frederick Road, Salford, Greater Manchester, M6 6LD.

 

The immediate parent company of JWS Holdings Group Limited is DM Topco Limited, a company registered in England and Wales. The registered office of DM Topco Limited is The Mrf Station Road, Caythorpe, Grantham, Lincolnshire, NG32 3EW.

 

The ultimate parent company is Broom Investments Limited, a company registered in Ireland. The registered office of Broom Investments Limited is 1st Floor, 118 Lower Baggot Street, Dublin 2, Dublin, Ireland.

The smallest group into which the financial statements are consolidated into is that headed by Broom Holdings BidCo Limited, a company registered in Ireland.

 

The largest group into which the financial statements are consolidated into is that headed by Broom Investments Limited, a company registered in Ireland.

2023-12-302022-12-31falseCCH SoftwareCCH Accounts Production 2024.100B McCabeC MountainC BloomW Fisherfalsefalse017213002022-12-312023-12-3001721300bus:Director12022-12-312023-12-3001721300bus:Director22022-12-312023-12-3001721300bus:Director42022-12-312023-12-3001721300bus:Director32022-12-312023-12-3001721300bus:RegisteredOffice2022-12-312023-12-30017213002023-12-30017213002021-12-312022-12-3001721300core:RetainedEarningsAccumulatedLosses2021-12-312022-12-3001721300core:RetainedEarningsAccumulatedLosses2022-12-312023-12-30017213002022-12-3001721300core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3001721300core:PlantMachinery2023-12-3001721300core:MotorVehicles2023-12-3001721300core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-12-3001721300core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3001721300core:PlantMachinery2022-12-3001721300core:MotorVehicles2022-12-3001721300core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-12-3001721300core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3001721300core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3001721300core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3001721300core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3001721300core:CurrentFinancialInstruments2023-12-3001721300core:CurrentFinancialInstruments2022-12-3001721300core:ShareCapital2023-12-3001721300core:ShareCapital2022-12-3001721300core:RevaluationReserve2023-12-3001721300core:RevaluationReserve2022-12-3001721300core:RetainedEarningsAccumulatedLosses2023-12-3001721300core:RetainedEarningsAccumulatedLosses2022-12-3001721300core:ShareCapital2021-12-3001721300core:RevaluationReserve2021-12-30017213002021-12-3001721300core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-312023-12-3001721300core:PlantMachinery2022-12-312023-12-3001721300core:MotorVehicles2022-12-312023-12-3001721300core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-12-312023-12-3001721300core:OwnedAssets2022-12-312023-12-3001721300core:OwnedAssets2021-12-312022-12-3001721300core:LeasedAssets2022-12-312023-12-3001721300core:LeasedAssets2021-12-312022-12-3001721300core:UKTax2022-12-312023-12-3001721300core:UKTax2021-12-312022-12-300172130012022-12-312023-12-300172130012021-12-312022-12-300172130022022-12-312023-12-300172130022021-12-312022-12-300172130032022-12-312023-12-300172130032021-12-312022-12-3001721300core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3001721300core:PlantMachinery2022-12-3001721300core:MotorVehicles2022-12-3001721300core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-12-30017213002022-12-3001721300core:Non-currentFinancialInstruments2023-12-3001721300core:Non-currentFinancialInstruments2022-12-3001721300core:WithinOneYear2023-12-3001721300core:WithinOneYear2022-12-3001721300core:BetweenTwoFiveYears2023-12-3001721300core:BetweenTwoFiveYears2022-12-3001721300bus:PrivateLimitedCompanyLtd2022-12-312023-12-3001721300bus:FRS1022022-12-312023-12-3001721300bus:Audited2022-12-312023-12-3001721300bus:FullAccounts2022-12-312023-12-30xbrli:purexbrli:sharesiso4217:GBP