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COMPANY REGISTRATION NUMBER: 04561112
LAND & WATER REMEDIATION LIMITED
FILLETED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 December 2023
LAND & WATER REMEDIATION LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
Contents
Pages
Statement of financial position
1 to 2
Notes to the financial statements
3 to 9
LAND & WATER REMEDIATION LIMITED
STATEMENT OF FINANCIAL POSITION
31 December 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
5
1,252,519
1,273,852
Investments
6
100
100
------------
------------
1,252,619
1,273,952
Current assets
Debtors
7
5,277,165
1,702,713
Cash at bank and in hand
3,352,648
5,081,004
------------
------------
8,629,813
6,783,717
Creditors: amounts falling due within one year
8
7,732,844
4,645,598
------------
------------
Net current assets
896,969
2,138,119
------------
------------
Total assets less current liabilities
2,149,588
3,412,071
Creditors: amounts falling due after more than one year
9
436,904
371,763
Provisions
Taxation including deferred tax
177,444
140,409
------------
------------
Net assets
1,535,240
2,899,899
------------
------------
Capital and reserves
Called up share capital
111
111
Share premium account
76,992
76,992
Profit and loss account
1,458,137
2,822,796
------------
------------
Shareholders funds
1,535,240
2,899,899
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
LAND & WATER REMEDIATION LIMITED
STATEMENT OF FINANCIAL POSITION (continued)
31 December 2023
These financial statements were approved by the board of directors and authorised for issue on 26 September 2024 , and are signed on behalf of the board by:
Mr R E Melhuish Mr J A Maclean
Company registration number: 04561112
LAND & WATER REMEDIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Numeric House, 98 Station Road, Sidcup, Kent, DA15 7BY, United Kingdom.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the statement of comprehensive income. The financial statements are prepared in sterling, which is the functional currency of the entity.
Debtors
Debtors are initially recorded at fair value and are assessed for impairment at each year end date. If any impairments exist the debtors are remeasured to the present value of the expected future cash inflows.
Creditors
Creditors are initially recorded at fair value and are then remeasured to the present value of the expected future cash outflows.
Statement of cash flows
The company has taken advantage of the small companies exemptions and not prepared a statement of cash flows.
Judgements and key sources of estimation uncertainty
There are no significant estimates or assumptions made that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Revenue recognition
Revenue refers to amounts earned from the Company's principal activity; the provision of Environmental Contracting services. The revenue shown in the statement of comprehensive income represents amounts invoiced during the year, exclusive of Value Added Tax. In respect of long-term contracts and contracts for on-going services, revenue represents the value of work done in the year, including estimates of amounts not invoiced. Revenue in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Tangible assets with a cost value in excess of £500 are capitalised, all items below this limit are expensed through the statement of comprehensive income.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold Property
-
10% straight line
Plant and Machinery
-
25% reducing balance
Fixtures and Fittings
-
15% reducing balance
Motor Vehicles
-
33% straight line
The total residual value of all tangible assets is deemed to be £15,000 .
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Investments in joint ventures
Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
4. Particulars of employees
The average number of persons employed by the company during the year amounted to 4 (2022: 3 ).
Salary recharges were also made from Land & Water Services Limited, a related party .
5. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,974,707
617,293
234,085
2,826,085
Additions
93,095
291,484
3,500
388,079
------------
---------
---------
-------
------------
At 31 December 2023
2,067,802
908,777
234,085
3,500
3,214,164
------------
---------
---------
-------
------------
Depreciation
At 1 January 2023
1,350,681
92,325
109,227
1,552,233
Charge for the year
246,692
106,355
56,077
288
409,412
------------
---------
---------
-------
------------
At 31 December 2023
1,597,373
198,680
165,304
288
1,961,645
------------
---------
---------
-------
------------
Carrying amount
At 31 December 2023
470,429
710,097
68,781
3,212
1,252,519
------------
---------
---------
-------
------------
At 31 December 2022
624,026
524,968
124,858
1,273,852
------------
---------
---------
-------
------------
6. Investments
Shares in group undertakings
£
Cost
At 1 January 2023 and 31 December 2023
100
----
Impairment
At 1 January 2023 and 31 December 2023
----
Carrying amount
At 31 December 2023
100
----
At 31 December 2022
100
----
7. Debtors
2023
2022
£
£
Trade debtors
593,432
626,043
Amounts owed by group undertakings
1,682,437
832,961
Other debtors
3,001,296
243,709
------------
------------
5,277,165
1,702,713
------------
------------
8. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
244,392
401,316
Amounts owed to group undertakings and undertakings in which the company has a participating interest
3,488,086
660,753
Corporation tax
332,569
Social security and other taxes
212,939
20,428
Other creditors
3,454,858
3,563,101
------------
------------
7,732,844
4,645,598
------------
------------
The company has entered into a composite accounting agreement with Natwest Bank Plc between Land & Water Services Limited, Land & Water Plant Limited, Land & Water Remediation Limited, Land & Water Estates Limited, M.H.J. Limited & Land and Water Group Limited. Under the terms of this agreement the bank is authorised in certain circumstances to seize bank account balances and apply them in reduction of liabilities including overdrawn bank accounts of the other group companies in the agreement. The total potential liability under the composite agreement at the year end is £2,331,438. Last year the company entered into a debenture with Natwest Bank Plc, all assets of the company are held as security as part of the agreement.
9. Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
436,904
371,763
---------
---------
10. Summary audit opinion
The auditor's report dated 26 September 2024 was unqualified .
The senior statutory auditor was Philip Benson Woodman FCCA , for and on behalf of Opass Billings Wilson & Honey LLP .
11. Related party transactions
At the year end the company owe £878,007 to Land & Water Services Limited, £9,863 to Land & Water Plant Limited and £88,264 to Land and Water Group Limited. Land & Water Remediation Limited are related to these companies as they are all part of the same group company as the majority of their shares are owned by MHJ Limited. At the year end the company owe £829,582 to MHJ Limited. MHJ Limited is the parent company of Land & Water Remediation Limited. At the year end the company were owed £216,052 by Rainham Aggregates Limited. Land & Water Remediation Limited are related to them as they own 50% shareholdings in Raihnam Aggregates Limited During the year sales were made to Land & Water Services Limited of £155,296 and purchases were made of £2,482,272. There were also salaries recharged from Land & Water Services Limited of £200,700. During the year purchases were made to Land and Water Group Limited of £562,087 of which £473,556 relates to management charges payable. During the year purchases were made to Land & Water Plant Limited of £62,860. During the year purchases were made to MHJ Limited of £320,855 of which £192,700 relates to management charges payable. All loans were made interest free and are repayable on demand. All transactions are at market value.
12. Ultimate parent company
The company's ultimate parent undertaking is M.H.J. Limited. It has included the company in its consolidated financial statements, copies of which are available from its registered office: Numeric House, 98 Station Road, Sidcup, Kent, DA15 7BY.