Five Rivers Environmental Contracting Ltd 5084974 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is that of an environmental contractor Digita Accounts Production Advanced 6.30.9574.0 true true 5084974 2023-01-01 2023-12-31 5084974 2023-12-31 5084974 bus:Director1 1 2023-12-31 5084974 core:FinanceLeases core:CurrentFinancialInstruments 2023-12-31 5084974 core:FinanceLeases core:Non-currentFinancialInstruments 2023-12-31 5084974 core:CurrentFinancialInstruments 2023-12-31 5084974 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 5084974 core:Non-currentFinancialInstruments 2023-12-31 5084974 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 5084974 core:OtherResidualIntangibleAssets 2023-12-31 5084974 core:BetweenTwoFiveYears 2023-12-31 5084974 core:WithinOneYear 2023-12-31 5084974 core:FurnitureFittingsToolsEquipment 2023-12-31 5084974 core:LandBuildings 2023-12-31 5084974 core:MotorVehicles 2023-12-31 5084974 core:OtherPropertyPlantEquipment 2023-12-31 5084974 core:Share-basedArrangement1 2023-12-31 5084974 1 2023-12-31 5084974 bus:SmallEntities 2023-01-01 2023-12-31 5084974 bus:AuditExemptWithAccountantsReport 2023-01-01 2023-12-31 5084974 bus:FilletedAccounts 2023-01-01 2023-12-31 5084974 bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 5084974 bus:RegisteredOffice 2023-01-01 2023-12-31 5084974 bus:Director1 2023-01-01 2023-12-31 5084974 bus:Director1 1 2023-01-01 2023-12-31 5084974 bus:Director4 2023-01-01 2023-12-31 5084974 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 5084974 core:IntangibleAssetsOtherThanGoodwill 2023-01-01 2023-12-31 5084974 core:OtherResidualIntangibleAssets 2023-01-01 2023-12-31 5084974 core:FurnitureFittings 2023-01-01 2023-12-31 5084974 core:FurnitureFittingsToolsEquipment 2023-01-01 2023-12-31 5084974 core:LandBuildings 2023-01-01 2023-12-31 5084974 core:LeaseholdImprovements 2023-01-01 2023-12-31 5084974 core:MotorVehicles 2023-01-01 2023-12-31 5084974 core:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 5084974 core:PlantMachinery 2023-01-01 2023-12-31 5084974 core:OtherRelatedParties 2023-01-01 2023-12-31 5084974 core:Share-basedArrangement1 2023-01-01 2023-12-31 5084974 1 2023-01-01 2023-12-31 5084974 countries:EnglandWales 2023-01-01 2023-12-31 5084974 2022-12-31 5084974 bus:Director1 1 2022-12-31 5084974 core:OtherResidualIntangibleAssets 2022-12-31 5084974 core:FurnitureFittingsToolsEquipment 2022-12-31 5084974 core:LandBuildings 2022-12-31 5084974 core:MotorVehicles 2022-12-31 5084974 core:OtherPropertyPlantEquipment 2022-12-31 5084974 core:Share-basedArrangement1 2022-12-31 5084974 2022-04-01 2022-12-31 5084974 2022-12-31 5084974 core:FinanceLeases core:CurrentFinancialInstruments 2022-12-31 5084974 core:FinanceLeases core:Non-currentFinancialInstruments 2022-12-31 5084974 core:CurrentFinancialInstruments 2022-12-31 5084974 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 5084974 core:Non-currentFinancialInstruments 2022-12-31 5084974 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 5084974 core:OtherResidualIntangibleAssets 2022-12-31 5084974 core:BetweenTwoFiveYears 2022-12-31 5084974 core:WithinOneYear 2022-12-31 5084974 core:FurnitureFittingsToolsEquipment 2022-12-31 5084974 core:LandBuildings 2022-12-31 5084974 core:MotorVehicles 2022-12-31 5084974 core:OtherPropertyPlantEquipment 2022-12-31 5084974 core:Share-basedArrangement1 2022-12-31 5084974 1 2022-12-31 5084974 core:Share-basedArrangement1 2022-04-01 2022-12-31 5084974 core:Share-basedArrangement1 2022-03-31 iso4217:GBP xbrli:pure

Registration number: 5084974

Five Rivers Environmental Contracting Ltd

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Five Rivers Environmental Contracting Ltd

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 13

 

Five Rivers Environmental Contracting Ltd

(Registration number: 5084974)
Balance Sheet as at 31 December 2023

Note

31 December
2023
£

31 December
2022
£

Fixed assets

 

Intangible assets

4

115,839

235,192

Tangible assets

5

182,962

242,593

 

298,801

477,785

Current assets

 

Debtors

6

1,188,681

979,362

Cash at bank and in hand

 

980,121

1,326,104

 

2,168,802

2,305,466

Creditors: Amounts falling due within one year

7

(2,204,195)

(1,602,939)

Net current (liabilities)/assets

 

(35,393)

702,527

Total assets less current liabilities

 

263,408

1,180,312

Creditors: Amounts falling due after more than one year

7

-

(237,365)

Provisions for liabilities

(44,417)

(58,029)

Net assets

 

218,991

884,918

Capital and reserves

 

Called up share capital

110

110

Other reserves

77,184

-

Retained earnings

141,697

884,808

Shareholders' funds

 

218,991

884,918

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

 

Five Rivers Environmental Contracting Ltd

(Registration number: 5084974)
Balance Sheet as at 31 December 2023

Approved and authorised by the Board on 26 September 2024 and signed on its behalf by:
 

.........................................
M N Whitfield
Director

 

Five Rivers Environmental Contracting Ltd

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

1

General information

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

The address of its registered office is:
Suite 2 Healey House
Dene Road
Andover
Hampshire
SP10 2AA

The principal place of business is:
East Farm
Codford
Wiltshire
BA12 0PG

These financial statements were authorised for issue by the Board on 26 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

 

Five Rivers Environmental Contracting Ltd

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

Going concern

In 2023 Five Rivers Environmental Contracting Ltd engaged with Halsall Construction Ltd to deliver a project in St Edeyrn, Wales. The main contract was completed with a number of additional charges for change events during construction. At the reporting year end the business held a work-in-progress balance of £204,706. Following Halsall Construction Ltd’s appointment of administrators in April 2024, this balance has been reversed in the accounts and as such, has negatively impacted the position for this year.

The business has recognised a loss on disposal of part of the Intangible Assets held, being the LLP. Members of the partnership left the LLP during the year and prior to the end of the amortisation period, resulting in a cost of £106,637 being recognised.

The 2023 results also include an adjustment for director’s renumeration under the EMI Scheme in the year of £102,912 (nil 2022). In 2024 these options have been surrendered by the remaining directors for nil consideration which will be reflected by a reversal of the provision made in 2023.

In consideration of the above points, the Directors of the business are of the view that the reported year has been heavily impacted by these key events and do not believe that future trading performance will be affected by reoccurrence to the same extent and specifically by the trading loss for the project with Halsall Construction Limited.

Judgements

The preparation of the financial statements requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as revenue and expenses during the year. These are continually evaluated and are based on historical experience and other relevant factors.

One key area where estimates are significant to the financial statements are the calculations in respect of ongoing work that straddles the year end, and the appropriate recognition of costs and income to the balance sheet date.

In addition the calculation of the depreciation charges applied to fixed assets relies upon management judgement to apply an appropriate rate based on their past experience and expectation of the useful lives of the assets.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Five Rivers Environmental Contracting Ltd

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

Contract revenue recognition

Revenue represents the value of work performed on the contracts in the year. For contracts on which revenue exceeds fees rendered, the excess is included as contract assets within gross amounts due from customers for contract work. For contracts on which fees rendered exceed revenue, the excess is included as contract liabilities within trade and other payables. The value of long term contracts is based on recoverable costs plus attributed profit. Cost is defined as staff costs and related overheads plus project expenses.

As projects reach stages where it is considered that their outcome can be reasonably foreseen, proportions of the expected total profit are brought into the financial statements. Provision is made for all known and anticipated losses.

Debtor factoring is utilised where necessary. Sales are made with a standard credit term of 30 days.

Government grants

Grants are recognised when receivable except grants in relation to fixed assets which are credited to the profit
and loss account over the useful lives of the related assets.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

12.5-50% reducing balance

Fixtures and fittings

20% straight line and 25% reducing balance

Motor vehicles

25% reducing balance

Leasehold improvements

10% straight line

 

Five Rivers Environmental Contracting Ltd

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

Intangible assets

Intangible assets are accounted for under IAS 38 as FRS102 does not consider the treatment of Intellectual property. Intangible assets relating to Intellectual property acquired separately from a business are capitalised at cost where the cost of the asset can be measured reliably. After recognition, assets are carried at cost less accumulated amortisation and impairment losses.

Amortisation

Intangible assets are amortised on a straight line basis over their useful lives. For intellectual property a 3 year useful life is used as it best reflects the pattern for which economic benefits attributable to the assets are expected to flow to the entity. The amortisation period is reviewed annually.

Asset class

Amortisation method and rate

Intellectual property

33.33 % straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Five Rivers Environmental Contracting Ltd

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

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

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

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

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share based payments

Share based payments are recognised over the period for which they are expected to vest. Values are reocognised based on esimtates of the length of the vesting period, balance sheet date fair value of shares, the number of persons that have share based payment agreements that will be employed by the company at vesting date and the expected EBITDA upon vesting. All share based payments are equity settled.

Financial instruments


The company enters in to basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors as well as loans.
 Recognition and measurement
These are measured at transaction price.
 Impairment
For financial assets measured at fair value, the impairment loss is measured as the difference between an asset's carrying value and the anticipated recoverable value.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 27 (2022 - 48).

 

Five Rivers Environmental Contracting Ltd

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

4

Intangible assets

Intellectual Property
 £

Total
£

Cost or valuation

At 1 January 2023

273,126

273,126

Additions acquired separately

92,523

92,523

Disposals

(160,099)

(160,099)

At 31 December 2023

205,550

205,550

Amortisation

At 1 January 2023

37,934

37,934

Amortisation charge

105,239

105,239

Amortisation eliminated on disposals

(53,462)

(53,462)

At 31 December 2023

89,711

89,711

Carrying amount

At 31 December 2023

115,839

115,839

At 31 December 2022

235,192

235,192

 

Five Rivers Environmental Contracting Ltd

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

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2023

40,132

81,006

81,900

535,385

738,423

Additions

-

3,132

-

-

3,132

At 31 December 2023

40,132

84,138

81,900

535,385

741,555

Depreciation

At 1 January 2023

22,072

48,644

63,167

361,947

495,830

Charge for the year

8,025

8,288

4,685

41,765

62,763

At 31 December 2023

30,097

56,932

67,852

403,712

558,593

Carrying amount

At 31 December 2023

10,035

27,206

14,048

131,673

182,962

At 31 December 2022

18,060

32,362

18,733

173,438

242,593

Included within the net book value of land and buildings above is £10,035 (2022 - £18,061) in respect of short leasehold land and buildings.
 

 

Five Rivers Environmental Contracting Ltd

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

6

Debtors

31 December
2023
£

31 December
2022
£

Trade debtors

736,970

475,970

Prepayments

193,687

147,441

Other debtors

258,024

355,951

1,188,681

979,362

7

Creditors

Creditors: amounts falling due within one year

Note

31 December
2023
£

31 December
2022
£

Due within one year

 

Loans and borrowings

8

237,365

474,162

Trade creditors

 

1,184,653

353,696

Amounts owed to group undertakings and undertakings in which the company has a participating interest

434,533

460,823

Taxation and social security

 

43,163

118,447

Accruals and deferred income

 

290,413

149,141

Other creditors

 

14,068

46,670

 

2,204,195

1,602,939

Creditors includes net obligations under finance lease and hire purchase contracts which are secured of £4,031 (2022 : £21,651).

 

Five Rivers Environmental Contracting Ltd

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

Creditors: amounts falling due after more than one year

Note

31 December
2023
£

31 December
2022
£

Due after one year

 

Loans and borrowings

8

-

237,365

8

Loans and borrowings

Non-current loans and borrowings

31 December
2023
£

31 December
2022
£

Bank borrowings

-

233,334

Finance lease liabilities

-

4,031

-

237,365

Current loans and borrowings

31 December
2023
£

31 December
2022
£

Bank borrowings

233,334

399,999

Finance lease liabilities

4,031

17,620

Other borrowings

-

56,543

237,365

474,162

Bank borrowings

CBILS is denominated in £ with a nominal interest rate of 1.9%, and the final instalment is due on 9 July 2024. The carrying amount at year end is £233,333 (2022 - £633,333).

As standard under the CBIL scheme there is a guarantee from the UK Government.

9

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

31 December
2023
£

31 December
2022
£

Not later than one year

100,321

60,783

Later than one year and not later than five years

130,234

30,679

230,555

91,462

 

Five Rivers Environmental Contracting Ltd

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

The amount of non-cancellable operating lease payments recognised as an expense during the year was £100,780 (2022 - £67,912).

10

Share-based payments

EMI Scheme

Scheme details and movements

There were options to purchase shares granted on the 23rd November 2022 that will be vested at the earlier of exit or 9 years and 9 months from the grant date.

The fair value of each share option granted was measured using the capitalisation of maintainable earnings model. The reason for choosing this model was that it was deemed an appropriate model for a company of its type and size and there was no available market value as the shares are not listed on a public market. The weighted average excercise price of the share options was £110 (2022: £350).

The movements in the number of share options during the year were as follows:

31 December
2023
Number

31 December
2022
Number

Outstanding, start of period

7,512

-

Granted during the period

-

7,512

Forfeited during the period

(1,926)

-

Outstanding, end of period

5,586

7,512

Effect of share-based payments on profit or loss and financial position

The total expense recognised in profit or loss for the year was £102,912 (31 December 2022 - £Nil).

The share based payment showing in equity (other reserves) at the year end was £102,912 (31 December 2022 - £Nil).

11

Related party transactions

Transactions with directors

2023

At 1 January 2023
£

Advances to director
£

Repayments by director
£

At 31 December 2023
£

J E Lovering

Loan to director

-

46,099

(46,099)

-

 

Five Rivers Environmental Contracting Ltd

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

Summary of transactions with other related parties

Associated Limited Liability Partnership
 During the year the company entered into business with an associated Limited liability partnership of which key management and directors are partners.

During the year the company has purchased intellectual property totalling £92,523 (2022: £273,126) from the LLP and this is showing as an intangible asset in the balance sheet. The company disposed of £160,099 of intellectual property during the year. The company has paid £1,031,876 (2022: £380,872) to the LLP for services of the partners to the company. The balance outstanding due to the LLP at the year-end was £434,533 (2022: £460,823).