Oliver Grace Ltd
Annual report and Financial Statements
For the year ended 31 December 2023
Oliver Grace Ltd
Company information
Directors
Mr A Share
Mr J M Clewes
Mr T P A Wilson
Mr S G Lyon
Mr N Bowen
Mr J Earl
(Appointed 24 January 2023)
Mr A Sleeth
Company number
09422776
Registered office
Unit 4 Newlands Court
Attwood Road
Burntwood Business Park
Burntwood
Staffordshire
WS7 3GF
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Oliver Grace Ltd
Contents
Page
Strategic report
1 - 5
Directors' report
6 - 7
Independent auditor's report
8 - 11
Income statement
12
Group statement of comprehensive income
13
Group statement of financial position
14 - 15
Company statement of financial position
16
Group statement of changes in equity
17
Company statement of changes in equity
18
Group statement of cash flows
19
Notes to the financial statements
20 - 48
Oliver Grace Ltd
Strategic report
For the year ended 31 December 2023
- 1 -

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

 

Review of the business

 

The primary activities of the business centre around the provision of environmental services including the transport, treatment, transfer and disposal of both hazardous and non-hazardous wastes and the provision of specialist industrial cleaning services with national coverage and across all industry sectors in across the United Kingdom.

Waste management is an important and specialised sector in the economy. Our business is fully invested to provide a full spectrum service that our customers rely upon and ensures their waste is transported, handled, processed and disposed of in accordance with the strictest regulatory requirements and highest standards of safety, compliance and corporate governance. Our business has evolved to satisfy our clients’ needs to the extent we offer a total service – access to everything from waste recycling to industrial cleaning, from complete laboratory services to sample analysis. We work with companies of every size, covering every commercial category and industry sector. Our customers operations are located throughout the United Kingdom and so we work across the country - bringing a uniquely personalised and adaptable approach to all of our client base with the guarantee of consistently high service levels from our in-house transport function and waste facilities in Stoke on Trent, Brownhills and Dudley.

 

The business has also invested in the delivery of specialist industrial cleaning services including site clearances, decommissioning, spills, and inspections, across the full spectrum of industry and manufacturing. Our expert teams use specialist equipment and techniques to remove hazardous and non-hazardous contamination and materials from equipment and infrastructure across a wide variety of process, production and manufacturing industries. Operating from our industrial services base at Wednesbury in the West Midlands, we offer our services nationwide to our waste services customers.

 

This is how, in 18 years, we have grown into one of the United Kingdom’s largest independent waste management services companies focussed on hazardous wastes, but we have no intention of pausing there. We’re ambitious. Determined to continue growing by offering better, more practical, more relevant, and sustainable solutions in a market which is constantly evolving.

 

Our primary focus for investment during 2023 has been the implementation of the new ERP system into the Brownhills operation which was completed successfully during the year. Already embedded within our other group companies, this represents a departure from the previous system operating since business acquisition to a much-improved specific operating system using a new software framework. Introducing the new system has embraced every part of our business being rolled out into our finance function at the start of the year and extended to our to our sales, technical and operations departments at from May onwards.

Successful implementation has required focus and cooperative working across all areas and promises to deliver a system which complements and regularises our processes and procedures, is realising operating efficiencies across all business areas over time and with continued use whilst providing us with unprecedented monitoring and reporting capability. This investment has been a key development objective for the business in 2022 and 2023 and one which will support future organic growth through greater overall operational efficiency and financial reporting capability and in future acquisitions supporting more effective, rapid and full business integration. The potential for disruption to the business whilst the transition takes place was recognised during foundation work in 2022 and during inception in 2023 allowing us to achieve the outcomes which minimised adverse impact and achieved rapid assimilation.

 

This work coincided with us moving to a new Head Office location in Burntwood which now sees centralised all our sales, technical, accounts and central support sited in one location to realise efficiency and optimisation in all our business functions. This has also freed up valuable office space at Brownhills allowing a major refurbishment which has seen welfare and accommodation for site operations located under one roof and completely overhauled.

 

Oliver Grace Ltd
Strategic report (continued)
For the year ended 31 December 2023
- 2 -

Across both Sneyd Hill and Brownhills, our business continued to successfully export wastes for energy recovery within Europe as we maintained our positive relationships with the respective environmental regulators and across all our offtake supply chain which allowed us to work during the year to grow our network which during the latter part of the year and into 2024 has provided us with additional capacity for new and existing wastes streams improving our service offering to our customers and the wider waste market.

 

This activity and the resultant treatment processes align strongly with sustainable development and the principles of the waste hierarchy. The result of our efforts in 2023 will continue to be seen in 2024 and beyond as additional capacity has come on stream, and we have successfully concluded the permissions process.

 

At Sneyd Hill we continued to develop our new aerosol recycling plant which saw initial commissioning within 2022 and in doing so we are successfully furthering our strategy of broadening processing capability within the business and bringing cutting edge technology to the recycling of aerosols in the UK. Our development work has seen us partner with specialist engineers to deliver process efficiencies and improvements which increases potential throughput and capacity whilst retaining the highest standards of process safety. Delivering 100% recycling of all components of redundant and used aerosols, we can deal sustainably with aerosol waste which otherwise would pass down less sustainable and inappropriate disposal routes. This process now not only supports the wider business as it’s portfolio of assets moves further towards more sustainable waste management but represents a high return activity; driving the business towards further niche and highly profitable small-scale processing where the technology to deal with a disposal problem is established and the current market can be better served.

 

Further developments regarding the plant are being introduced and trialled, the objective of which is to improve sustainability and the operations commercial dynamics.

 

Our investment in previous periods in the establishment of facilities for the bulk handling of hazardous and non-hazardous wastes has introduced greater flexibility into waste treatment operations allowing materials to be delivered to site in a variety of bulk containers including bulk haulage vehicles and then be segregated and packaged in numerous ways for onward recovery, treatment and disposal activities through allied on site or downstream processes. This has broadened the capability and appeal of the site and continued to deliver new and additional opportunities including larger-scale project work.

 

These facilities were intensively utilised during the year allowing us to be responsive to our customers’ demands in dealing with some challenging wastes which were otherwise intractable within the UK market. We were at the forefront and able to move large volumes of physically and chemically difficult materials and with safe and effective processing at our facilities were able to produce outputs which were suitable for further beneficial downstream treatment and disposal which would otherwise be unavailable to them. These activities supported our client base in relieving them of some enduring problematic waste streams whilst generating higher revenues for the business. Our work in this area was particularly directed towards waste streams arising from brownfield development projects where historic contamination had left behind legacy material which was particularly challenging with their removal a high priority to allow project work to continue without disruption and in line with established timelines.

 

Our drive for continual improvement in the way we work saw us continuing to focus on our objective of achieving a self-generative safety culture across our business with many new initiatives and processes aimed at better communication, performance and individual participation across all functional areas being applied and embedded. Much has been achieved during 2023 and this aspect of our work will continue to remain a key part of what we do as we move into the future.

 

As we move to 2024, we continue to follow our strategic growth plan and work to introduce new technology and processes within the operations across all our sites and further develop our industrial services capability to enter new markets and grow market share. We have started 2024 strongly with results being encouraging and holding as the year progresses.

 

 

 

 

Oliver Grace Ltd
Strategic report (continued)
For the year ended 31 December 2023
- 3 -
Principal risks and uncertainties

High inflation and rising prices was an ongoing challenge for most of the year which manifested itself in upward pressure on wages and higher prices from our supply chain; and seen in the costs of downstream waste disposal, one of our major operating costs. In addition, the United Kingdom saw weak economic growth during the year which impacted most of the sectors we serve.

 

Against this challenging economic backdrop, we continued to increase efficiency and sales drive to improve revenues significantly on the previous year which boosted cash profit generated by the company's operations in line year-on-year. Being able to rapidly and accurately identify upward cost variances and act upon these swiftly softened the impact of rising prices and was key to maintaining and improving gross margins in a market which saw consistent upward pressure. We were able to soften the blow through our strong customer relationships and the unique place we occupy within their supply chains which allowed us to review pricing dynamically across a broad section of our service offering, whilst maintaining our position and their custom.

 

We have not been immune to the ongoing challenges in the employment market - which we saw signs of easing towards the latter stages of 2023 - however, we have been successful in retaining key staff at all levels in the organisation which allows us to continue to develop our people programme to attract keep staff.

 

We invest in them as our most valuable resource. So, our new, innovative ideas are created and researched by some of the industry’s most highly trained and skilled experts. They are delivered day-to-day by our nationwide network of experienced, professional technical and support staff. It’s a constantly growing and developing team who bring a positive, imaginative, ‘can-do’ attitude to every project. Always co-operative, always collaborative - from eager graduate trainees to committed operators and technical staff and our seasoned and professional managers and directors, everyone shares a pride and passion for all we do.

 

In common with our supply chain, we have seen upward pressure on costs throughout 2023 from wage inflation to the cost of energy and a price volatile waste market which has impacted our Year on year performance but despite this, we have continued to operate profitably and maintain our revenue position with the expectation that 2024 will see improvements across both these performance measures as we capitalise on the investments in additional process capability, resource and introduction of a new ERP system we have made in this and previous periods and the external economic environment starts to stabilise.

 

Development and performance

Our commitment is to continue to broaden our service offering and grow our business with strategic direction clearly supporting this. During 2023 we consolidated our position and laid the ground for additional investment in new process capability at the Brownhills site which will allow waste services business to grow organically and sustainably into the future. We shall continue to follow this path despite any challenges along the way and seek viable and sustainable to continue to invest in viable and sustainable technology solutions to continue and leverage our existing assets whilst remaining active in respect of complementary and related acquisitions.

 

It’s about creating a more safely managed, more sustainable future – where our work continually benefits our people, customers, the UK our communities and our environment.

 

Oliver Grace Ltd
Strategic report (continued)
For the year ended 31 December 2023
- 4 -
Key performance indicators

The group's key financial performance indicators are Turnover, LTM EBITDA and Profitability.

Turnover for the year was £52.4m (2022 - £48.3m) and Profit after tax was £4.8m (2022- (£2.9m loss)).

Gross profit increased by £7.4m on 2022 levels and LTM EBITDA increased by £6.1m driven by Sales increases, Operating improvements and Cost control. Cash balances increased by over £5m on 2022 levels.

The group closely monitors its disposal costs, environmental regulations and overhead costs with a continuing cost improvement programme being undertaken to reduce and maintain costs of waste disposal.

The group has prepared forecasts detailing their ongoing ability to trade profitably. These forecasts take into account the key business risks including sterling exchange rate, the competitive marketplace, the macro-economic climate, changing environmental legislation and increasing costs of operating.

The group retains suitable adequate finance facilities, including loans, an agreed invoice discounting facility if required and continuing shareholder support. The directors are not aware of any reason why these might be withdrawn and as a result have adopted the basis of going concern.

 

Regulatory environment

The group operated within its environmental permits in those companies where they are required, being regularly audited and inspected by the Environmental Agency.

The company retains its triple BSI accreditation (BSI 9001, ISO 14001 and ISO 45001) and undergoes extensive audit checks to provide external certification and verification of system robustness.

 

 

Other performance indicators

Financial Instruments

Credit

Credit risk is managed via an integrated credit control function. Credit checking is carried out using external credit agency services with rigorous credit scoring and credit management systems being implemented within the company.

Cash Flow

Cash flow forecasts are prepared regularly and monitored closely to cover any foreseeable funding requirements and are also used for bank covenant forecasting. The business satisfied all banking commitments in 2023.

Liquidity

The group has adequate funding facilities in place should the need arise for any reason.

 

Oliver Grace Ltd
Strategic report (continued)
For the year ended 31 December 2023
- 5 -

On behalf of the board

Mr S G Lyon
Director
25 September 2024
Oliver Grace Ltd
Directors' report
For the year ended 31 December 2023
- 6 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of a holding company.

Results and dividends

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £Nil. The directors do not recommend payment of a further dividend.

Directors

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

Mr A Share
Mr J M Clewes
Mr T P A Wilson
Mr S G Lyon
Mr N Bowen
Mr J Earl
(Appointed 24 January 2023)
Mr A Sleeth
Mr A D S Baker
(Resigned 24 January 2023)
Auditor

In accordance with the company's articles, a resolution proposing that DJH Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

As Oliver Grace Ltd is a large group, it is required to report on its emissions, energy consumption and energy efficiency by way of Streamlined Energy and Carbon Reporting in this Directors' report.

 

The group has consumed more than 40,000 kWh of energy in this reporting period, and it therefore does not qualify as a low energy user under these regulations.

 

However, no energy reporting information has been disclosed in these financial statements as the group has taken exemptions available in the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, Part 7A, Paragraph 20E which allows a group to exclude information for subsidiary companies that would not be required to report in their own right. All subsidiaries of Oliver Grace Ltd are small or medium sized company's and so are not required to include energy reporting information in their own financial statements. On this basis, no information is required to be included in the group report.

Oliver Grace Ltd
Directors' report (continued)
For the year ended 31 December 2023
- 7 -
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr S G Lyon
Director
25 September 2024
Oliver Grace Ltd
Independent auditor's report
To the members of Oliver Grace Ltd
- 8 -
Opinion

We have audited the financial statements of Oliver Grace Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and parent 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 group's and 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 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.

Oliver Grace Ltd
Independent auditor's report (continued)
To the members of Oliver Grace Ltd
- 9 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 their 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 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 parent 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.

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.

Oliver Grace Ltd
Independent auditor's report (continued)
To the members of Oliver Grace Ltd
- 10 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our 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.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Oliver Grace Ltd
Independent auditor's report (continued)
To the members of Oliver Grace Ltd
- 11 -

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.

Stacey Parr FCCA (Senior Statutory Auditor)
For and on behalf of DJH Audit Limited
26 September 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Oliver Grace Ltd
Group income statement
For the year ended 31 December 2023
- 12 -
2023
2022
as restated
Notes
£
£
Turnover
3
52,395,878
48,353,054
Cost of sales
(31,649,292)
(35,008,997)
Gross profit
20,746,586
13,344,057
Administrative expenses
(11,439,478)
(13,395,787)
Other operating income
2,136
446,571
Exceptional costs
4
(512,127)
(1,058,994)
Operating profit/(loss)
5
8,797,117
(664,153)
Interest receivable and similar income
9
67,203
1,198
Interest payable and similar expenses
10
(2,553,169)
(1,860,379)
Profit/(loss) before taxation
6,311,151
(2,523,334)
Tax on profit/(loss)
11
(1,515,579)
(430,737)
Profit/(loss) for the financial year
31
4,795,572
(2,954,071)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.

The income statement has been prepared on the basis that all operations are continuing operations.

Oliver Grace Ltd
Group statement of comprehensive income
For the year ended 31 December 2023
- 13 -
2023
2022
as restated
£
£
Profit/(loss) for the year
4,795,572
(2,954,071)
Other comprehensive income
Revaluation of tangible fixed assets
141,704
(8,140)
Total comprehensive income for the year
4,937,276
(2,962,211)
Total comprehensive income for the year is all attributable to the owners of the parent company.
Oliver Grace Ltd
Group statement of financial position
As at 31 December 2023
31 December 2023
- 14 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
13
13,466,331
15,614,883
Other intangible assets
13
64,161
92,047
Total intangible assets
13,530,492
15,706,930
Tangible assets
14
12,943,476
12,317,041
26,473,968
28,023,971
Current assets
Stocks
17
35,574
2,325
Debtors
18
10,502,126
9,839,028
Cash at bank and in hand
5,692,929
547,520
16,230,629
10,388,873
Creditors: amounts falling due within one year
19
(28,259,138)
(15,280,836)
Net current liabilities
(12,028,509)
(4,891,963)
Total assets less current liabilities
14,445,459
23,132,008
Creditors: amounts falling due after more than one year
20
(3,920,463)
(17,868,516)
Provisions for liabilities
Provisions
23
1,651,493
1,295,836
Deferred tax liability
24
1,061,904
951,629
(2,713,397)
(2,247,465)
Net assets
7,811,599
3,016,027
Capital and reserves
Called up share capital
28
1,235
1,235
Share premium account
29
1,920,222
1,920,222
Revaluation reserve
30
141,704
-
0
Profit and loss reserves
31
5,748,438
1,094,570
Total equity
7,811,599
3,016,027
Oliver Grace Ltd
Group statement of financial position (continued)
As at 31 December 2023
31 December 2023
- 15 -
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
25 September 2024
Mr S G Lyon
Mr N Bowen
Director
Director
Company registration number 09422776 (England and Wales)
Oliver Grace Ltd
Company statement of financial position
As at 31 December 2023
31 December 2023
- 16 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investments
15
24,569,632
24,569,632
Current assets
Debtors
18
1,631,840
1,477,726
Cash at bank and in hand
3,540,792
7,836
5,172,632
1,485,562
Creditors: amounts falling due within one year
19
(22,324,552)
(7,504,363)
Net current liabilities
(17,151,920)
(6,018,801)
Total assets less current liabilities
7,417,712
18,550,831
Creditors: amounts falling due after more than one year
20
(3,920,463)
(17,818,833)
Provisions for liabilities
Deferred tax liability
24
-
0
10,061
-
(10,061)
Net assets
3,497,249
721,937
Capital and reserves
Called up share capital
28
1,235
1,235
Share premium account
29
1,920,222
1,920,222
Profit and loss reserves
31
1,575,792
(1,199,520)
Total equity
3,497,249
721,937

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was £2,775,312 (2022 - £1,392,337 loss).

The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
25 September 2024
Mr S G Lyon
Mr N Bowen
Director
Director
Company registration number 09422776 (England and Wales)
Oliver Grace Ltd
Group statement of changes in equity
For the year ended 31 December 2023
- 17 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1,235
1,920,222
8,140
697,908
2,627,505
Year ended 31 December 2022:
Loss for the year
-
-
-
(2,954,071)
(2,954,071)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
(8,140)
-
(8,140)
Total comprehensive income
-
-
(8,140)
(2,954,071)
(2,962,211)
Transfers
-
-
-
3,350,733
3,350,733
Balance at 31 December 2022
1,235
1,920,222
-
0
1,094,570
3,016,027
Year ended 31 December 2023:
Profit for the year
-
-
-
4,795,572
4,795,572
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
141,704
-
141,704
Total comprehensive income
-
-
141,704
4,795,572
4,937,276
Transfers
-
-
-
(141,704)
(141,704)
Balance at 31 December 2023
1,235
1,920,222
141,704
5,748,438
7,811,599
Oliver Grace Ltd
Company statement of changes in equity
For the year ended 31 December 2023
- 18 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1,235
1,920,222
1,191
1,922,648
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(1,392,337)
(1,392,337)
Credit to equity for equity settled share-based payments
27
-
-
191,626
191,626
Balance at 31 December 2022
1,235
1,920,222
(1,199,520)
721,937
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
2,775,312
2,775,312
Balance at 31 December 2023
1,235
1,920,222
1,575,792
3,497,249
Oliver Grace Ltd
Group statement of cash flows
For the year ended 31 December 2023
- 19 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
36
12,618,109
5,533,243
Interest paid
(2,197,512)
(1,860,379)
Income taxes paid
(285,928)
(1,239,011)
Net cash inflow from operating activities
10,134,669
2,433,853
Investing activities
Purchase of intangible assets
-
(44,038)
Purchase of tangible fixed assets
(2,848,938)
(2,278,492)
Proceeds from disposal of tangible fixed assets
617,632
46,800
Proceeds from disposal of investments
-
325,000
Interest received
67,203
1,198
Net cash used in investing activities
(2,164,103)
(1,949,532)
Financing activities
Proceeds from borrowings
140,000
64,245
Repayment of bank loans
(1,532,706)
(1,646,124)
Payment of finance leases obligations
(120,027)
(148,895)
Net cash used in financing activities
(1,512,733)
(1,730,774)
Net increase/(decrease) in cash and cash equivalents
6,457,833
(1,246,453)
Cash and cash equivalents at beginning of year
(764,904)
481,549
Cash and cash equivalents at end of year
5,692,929
(764,904)
Relating to:
Cash at bank and in hand
5,692,929
547,520
Bank overdrafts included in creditors payable within one year
-
(1,312,424)
Oliver Grace Ltd
Notes to the group financial statements
For the year ended 31 December 2023
- 20 -
1
Accounting policies
Company information

Oliver Grace Ltd (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Unit 4 Newlands Court, Attwood Road, Burntwood Business Park, Burntwood, Staffordshire, WS7 3GF.

 

The group consists of Oliver Grace Ltd and all of its subsidiaries.

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 at deemed cost on transition and to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other group entities where the relationship is one of being wholly owned.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 21 -
1.3
Basis of consolidation

The consolidated financial statements incorporate those of Oliver Grace Ltd and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the period are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

The following subsidiaries have been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows includes the results and cash flows of the subsidiaries for the 12 month period and comparative 12 period. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

 

Share Properties Limited

Red Industries Ltd

Red Industries (Stoke) Limited

Red Industries (Scotland) Ltd

Linkwaste Limited

Red Innovations Limited

Walleys Quarry Ltd

Environmental Resource Group Limited

Red Industries (Brownhills) Ltd

Envirosol Limited

Boxclever Total Waste Management Limited

Chemtech Industrial Services Limited

Blendcheck Limited

Perks Patel Holdings Limited

Haz Holdings Limited

Haz Industrial Services Limited

Red Industries IS Ltd

 

 

Accordingly, the group profit and loss account and statement of cash flows includes the results and cash flows of the subsidiaries for the period from acquisition. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 22 -
1.4
Going concern

The group’s Strategic Report, set out on pages 1 to 5, details group business activities, together with the factors likely to affect its future development, performance and position. It also details the financial position of the group, its cash flows, liquidity position and borrowing facilities. In addition, notes to the financial statements include the group's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments; and its exposure to credit risk and liquidity risk.

 

The group’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the group should be able to operate within the level of its current facilities.

 

The parent company which holds the group's borrowing facilities will open renewal negotiations with the bank in due course. The company has held initial discussions with its bankers about its future borrowing needs and no matters have been drawn to its attention to suggest that renewal may not be forthcoming on acceptable terms. The company maintains strong relationships with its bankers.

 

The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

1.5
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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.

Revenue from rentals of property, plant and machinery are recognised when the amount of revenue can be measure reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

Electricity revenue is recognised on an accruals basis, at the point that it is generated.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 23 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Licences
10/20 years straight line
Other intangible assets
10/20 years straight line
1.8
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
2% / 5% per annum on cost
Leasehold land and buildings
Over the life of the lease
Landfill sites
Utilisation of site void space
Plant, equipment and motor vehicles
5% / 25% per annum on cost - 10% / 20% / 25% per annum on net book value
Leachate treatment plant
10% per annum on cost
Office and IT equipment
25% / 33% per annum on cost - 10% / 20% per annum on net book value
Aftercare and restoration
Utilisation of site void space

Freehold land and assets in the course of construction are not depreciated.

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 recognised in the income statement.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 24 -

Landfill sites

Acquisition, site engineering works and the cost of final site restoration and aftercare are capitalised. These costs are written off over the operational life of the site, based on the amount of void space consumed. The assessments made for this purpose are base upon periodic independent survey of the site.

 

Provision for for landfill site restoration and after-care costs

Full provision is made for the estimated costs of restoring the completed landfill site together with estimated post-closure monitoring and after-care and maintenance costs. This value is capitalised within tangible fixed assets and is expensed to the profit and loss account on the basis of the void space consumed in each period.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 25 -
1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
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.

 

 

1.13
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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, cash and bank balances and amounts due from felllow group companies, 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.

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.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 26 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and amounts due to 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.

Other financial liabilities

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 group's contractual obligations expire or are discharged or cancelled.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 27 -
1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 income statement 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 group’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.

 

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 income statement, 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 if, and only if, there is 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.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

 

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision in measured at present value the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

 

Provisions for restoration and aftercare costs are measured using estimated costs of future restoration and aftercare of landfill site combined with site data as explained further in note 22.

1.17
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.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 28 -
1.18
Retirement benefits

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

1.19
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

1.20
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 statement of financial position 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 leased asset are consumed.

1.21
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.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 29 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Waste stock accrual

Management estimate the value of the waste stock accrual using experience of the industry and a review of after-date costs incurred.

Depreciation of land fill site and restoration and aftercare asset

Depreciation of the landfill site and restoration and aftercare asset is subject to a calculation based on the estimates of the amount of useable void space used in the period. An expert opinion is used to support the annual volumetric of the site.

Management recharges

Management recharges are made between fellow subsidiaries on the basis of the estimated benefit received of the overhead.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Provision of waste removal
30,827,156
27,487,140
Provision of non hazardous waste disposal
17,881,592
16,455,138
Electricty generation sales
530,566
504,745
Rent / Hire of equipment
40,000
40,000
Provision of industrial cleaning services
3,116,564
3,866,031
52,395,878
48,353,054
2023
2022
£
£
Other revenue
Interest income
67,203
1,198
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 30 -
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional costs
512,127
1,058,994
512,127
1,058,994

Exceptional items relate to restructuring and exit costs due to head office relocation in the period, settlement and legal costs for a concluded court case and management fees.

5
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange losses
1,131
9,681
Depreciation of owned tangible fixed assets
1,703,965
1,710,666
Depreciation of tangible fixed assets held under finance leases
10,846
70,670
Impairment of owned tangible fixed assets
-
1,193,666
Profit on disposal of tangible fixed assets
(109,940)
(23,710)
Amortisation of intangible assets
2,176,438
2,658,198
Operating lease charges
609,105
517,964
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,000
12,400
Audit of the financial statements of the company's subsidiaries
66,795
63,024
81,795
75,424
For other services
Taxation compliance services
43,695
47,024

Subsidiary audit exemption

 

The following subsidiaries are claiming exemption from audit under Section 479A of the Companies Act 2006:

 

Environmental Resource Group Limited - Company number 05103488

Red Industries Ltd - Company number 07099708

Share Properties Limited - Company number 05760903

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 31 -
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management and administration
102
134
-
-
Operations
139
104
-
-
Total
241
238
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
9,369,620
8,787,493
-
0
-
0
Social security costs
919,646
889,050
-
-
Pension costs
337,515
319,444
-
0
-
0
10,626,781
9,995,987
-
0
-
0
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,030,410
783,348
Company pension contributions to defined contribution schemes
101,871
83,482
1,132,281
866,830
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
341,730
249,672
Company pension contributions to defined contribution schemes
10,000
10,000

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 32 -
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
67,203
1,198
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
1,155,295
829,649
Interest on invoice finance arrangements
59,887
59,923
Other interest on financial liabilities
929,999
930,000
Interest on finance leases and hire purchase contracts
11,676
13,864
Unwinding of discount on provisions
355,657
-
Other interest
40,655
26,943
Total finance costs
2,553,169
1,860,379
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,541,968
-
0
Deferred tax
Origination and reversal of timing differences
110,275
778,179
Tax losses carried forward
(136,664)
(347,442)
Total deferred tax
(26,389)
430,737
Total tax charge
1,515,579
430,737
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
11
Taxation
(Continued)
- 33 -

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

2023
2022
£
£
Profit/(loss) before taxation
6,311,151
(2,523,334)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
1,577,788
(479,433)
Tax effect of expenses that are not deductible in determining taxable profit
109,529
298,361
Tax effect of income not taxable in determining taxable profit
-
0
(4,680)
Adjustments in respect of prior years
-
0
6,363
Effect of change in corporation tax rate
(106,615)
7,875
Group relief
-
0
(219,899)
Amortisation on assets not qualifying for tax allowances
538,305
418,438
Under/(over) provided in prior years
(107,436)
432,019
Deferred tax
-
0
439,017
Capital allowances
(666)
(201,983)
Waste disposal relief
(495,326)
(265,341)
Taxation charge
1,515,579
430,737
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Property, plant and equipment
14
-
1,193,666
Recognised in:
Administrative expenses
-
1,193,666

The impairment losses in respect of financial assets are recognised in other gains and losses in the income statement.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 34 -
13
Intangible fixed assets
Group
Goodwill
Licences
Other intangible assets
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
27,062,019
126,497
103,494
27,292,010
Amortisation and impairment
At 1 January 2023
11,447,136
113,523
24,421
11,585,080
Amortisation charged for the year
2,148,552
4,666
23,220
2,176,438
At 31 December 2023
13,595,688
118,189
47,641
13,761,518
Carrying amount
At 31 December 2023
13,466,331
8,308
55,853
13,530,492
At 31 December 2022
15,614,883
12,974
79,073
15,706,930
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 35 -
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Landfill sites
Assets under construction
Plant, equipment and motor vehicles
Leachate treatment plant
Office and IT equipment
Aftercare and restoration
Total
£
£
£
£
£
£
£
£
£
Cost
At 1 January 2023
6,522,027
1,465,828
5,653,530
605,416
5,508,751
1,401,206
1,071,558
1,205,668
23,433,984
Additions
-
0
790,964
1,090,366
1,397,392
322,983
73,336
950,709
-
0
4,625,750
Disposals
(507,427)
-
0
-
0
(13,576)
(140,912)
-
0
-
0
-
0
(661,915)
Transfers
-
0
-
0
-
0
(1,763,075)
-
0
-
0
-
0
-
0
(1,763,075)
At 31 December 2023
6,014,600
2,256,792
6,743,896
226,157
5,690,822
1,474,542
2,022,267
1,205,668
25,634,744
Depreciation and impairment
At 1 January 2023
2,213,325
774,392
3,310,100
-
0
2,661,897
711,446
593,963
851,820
11,116,943
Depreciation charged in the year
-
0
108,104
694,169
-
0
446,287
210,912
191,466
63,873
1,714,811
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(140,486)
-
0
-
0
-
0
(140,486)
At 31 December 2023
2,213,325
882,496
4,004,269
-
0
2,967,698
922,358
785,429
915,693
12,691,268
Carrying amount
At 31 December 2023
3,801,275
1,374,296
2,739,627
226,157
2,723,124
552,184
1,236,838
289,975
12,943,476
At 31 December 2022
4,308,702
691,436
2,343,430
605,416
2,846,854
689,760
477,595
353,848
12,317,041
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
14
Tangible fixed assets
(Continued)
- 36 -

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
3,995,998
4,503,425
-
0
-
0
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
24,569,632
24,569,632
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
24,569,632
Carrying amount
At 31 December 2023
24,569,632
At 31 December 2022
24,569,632
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 37 -
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Linkwaste Limited
1
Dormant
Ordinary
0
100.00
Red Industries (Scotland) Ltd
1
Dormant
Ordinary
0
100.00
Red Industries Limited
1
Holding company
Ordinary
100.00
-
Red Industries (Stoke) Limited
1
Provision of environmental services including the treatment, transfer and disposal of both hazardous and non-harzardous waste
Ordinary
0
100.00
Walleys Quarry Ltd
2
Non-hazardous landfill waste disposal
Ordinary
0
100.00
Red Innovations Limited
1
Dormant
Ordinary
0
100.00
Environmental Resource Group Limited
1
Holding company
Ordinary
100.00
-
Red Industries (Brownhills) Limited
1
Provision of environmental services including the treatment, transfer and disposal of both hazardous and non-harzardous waste
Ordinary
0
100.00
Envirosol Limited
1
Dormant
Ordinary
0
100.00
Boxclever Total Waste Management Limited
1
Dormant
Ordinary
0
100.00
Chemtech Industrial Services Limited
1
Dormant
Ordinary
0
100.00
Blendcheck Limited
1
Dormant
Ordinary
0
100.00
Haz Industrial Services Ltd
1
Dormant
Ordinary
0
100.00
Perks Patel Ltd
1
Dormant
Ordinary
0
100.00
Haz Holdings Ltd
1
Dormant
Ordinary
0
100.00
Red Industries IS Ltd
1
Provision of industrial cleaning services
Ordinary
0
100.00
Share Properties Ltd
1
Property investment
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

1
Unit 4, Newlands Court, Attwood Road, Burntwood Business Park, Burntwood, WS7 3GF
2
Suite B, Fairgate House 205 Kings Road, Tyseley, Birmingham, B11 2AA
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 38 -
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Stock consumables
35,574
2,325
-
0
-
0
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,630,923
6,421,360
-
0
-
0
Amounts owed by group undertakings
-
-
1,359,358
1,359,358
Other debtors
2,337,810
2,056,950
-
0
-
0
Prepayments and accrued income
1,049,287
1,013,276
198,089
43,975
10,018,020
9,491,586
1,557,447
1,403,333
Deferred tax asset (note 24)
484,106
347,442
74,393
74,393
10,502,126
9,839,028
1,631,840
1,477,726
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
11,919,768
2,845,130
11,919,768
1,532,706
Obligations under finance leases
22
49,199
119,543
-
0
-
0
Other borrowings
21
3,836,279
1,717,677
3,836,279
1,717,677
Trade creditors
4,420,837
4,891,340
5,816
45,037
Amounts owed to group undertakings
-
0
-
0
4,683,864
3,266,787
Corporation tax payable
1,598,142
342,102
-
0
-
0
Other taxation and social security
1,866,649
2,070,499
-
-
Deferred income
25
10,000
10,000
-
0
-
0
Other creditors
705,983
375,104
370,848
185,424
Accruals and deferred income
3,852,281
2,909,441
1,507,977
756,732
28,259,138
15,280,836
22,324,552
7,504,363
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
19
Creditors: amounts falling due within one year
(Continued)
- 39 -

The bank loan is secured by a fixed and floating charge over the assets of the group.

 

Included within bank loans and overdrafts are amounts of £Nil (2022 - £1,168,615) in respect of invoice discounting facilities. These amounts are secured by a fixed charge on all purchased debts, leasehold improvements, plant and equipment of the business.

 

Amounts due under finance lease and hire purchase contacts are secured on the assets to which they relate.

 

 

20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
6,742
11,926,510
6,742
11,926,510
Obligations under finance leases
22
-
0
49,683
-
0
-
0
Other borrowings
21
3,913,721
5,892,323
3,913,721
5,892,323
3,920,463
17,868,516
3,920,463
17,818,833

The bank loan is secured by a fixed and floating charge over the assets of the group.

 

Amounts due under finance lease and hire purchase contacts are secured on the assets to which they relate.

 

 

21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
11,926,510
13,459,216
11,926,510
13,459,216
Bank overdrafts
-
0
1,312,424
-
0
-
0
Other loans
7,750,000
7,610,000
7,750,000
7,610,000
19,676,510
22,381,640
19,676,510
21,069,216
Payable within one year
15,756,047
4,562,807
15,756,047
3,250,383
Payable after one year
3,920,463
17,818,833
3,920,463
17,818,833

The long-term loans are secured by fixed and floating charges over the assets of the group.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
21
Loans and overdrafts
(Continued)
- 40 -

Debt is in the form of bank loans which are secured on the freehold property and assets of the group and unsecured fixed rate loan notes.

 

Bank loan one is a monthly repayment (capital and interest) instrument, maturing in December 2024, with a varying interest rate of interest based on an aggregate of the LIBOR rate and HSBC margin rate.

 

Bank loan two is a monthly repayment (capital and interest) instrument, maturing in December 2024, with a varying interest rate of interest based on an aggregate of the LIBOR rate and HSBC margin rate.

 

Bank loan three is a monthly repayment (capital and interest) instrument, maturing in December 2024, with a varying interest rate of interest based on an aggregate of the LIBOR rate and HSBC margin rate.

 

Loan notes carry an fixed rate of interest at 12% per annum, maturing at varying future dates.

22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
49,199
119,543
-
0
-
0
In two to five years
-
0
49,683
-
0
-
0
49,199
169,226
-
-

Finance lease payments represent rentals payable by the company or group 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.

23
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Future restoration and aftercare costs in respect of landfill sites
1,651,493
1,295,836
-
-
Deferred tax liabilities
24
1,061,904
951,629
-
0
10,061
2,713,397
2,247,465
-
0
10,061
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
23
Provisions for liabilities
(Continued)
- 41 -
Movements on provisions apart from deferred tax liabilities:
Future restoration and after-care costs in respect of landfill sites
Group
£
At 1 January 2023
1,295,836
Unwinding of discount
355,657
At 31 December 2023
1,651,493

Restoration and aftercare provision

The restoration element of the provision relates to the costs of the final capping and covering of the landfill site, which have been assessed based upon an independent survey, given current best practice and technology available. The dates of payment of these restoration costs are uncertain but will start being paid at the point of the site closure.

 

The aftercare element of the provision relates to total post closure costs of landfill site including such items as monitoring, leachate management and licensing that have been assessed based upon an independent survey, given current best practice and technology available. The dates of payment of these aftercare costs are uncertain but are anticipated to be over a period of up to 60 years from the years from closure of the landfill site.

 

The restoration and aftercare provision is shown at net present value £1,651,493. The current cost has been discounted using the real rate of interest of 9.70% (2022 - 11.53%). The unwinding of the discount on the provision was not considered material to adjust in 2022.

 

The Environment Agency requires security in respect of the provision. This security has been provided in the form of a bond amounting to £2,208,046 (2022 - £1,890,826).

 

24
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
1,270,200
884,809
74,393
-
Tax losses
-
-
409,713
347,442
Revaluations
(208,296)
66,820
-
-
1,061,904
951,629
484,106
347,442
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
24
Deferred taxation
(Continued)
- 42 -
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
-
10,061
74,393
-
Tax losses
-
-
-
74,393
-
10,061
74,393
74,393
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 January 2023
604,187
(64,332)
Credit to profit or loss
(26,389)
(10,061)
Liability/(Asset) at 31 December 2023
577,798
(74,393)

 

25
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
10,000
10,000
-
-
26
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
287,882
224,031

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

27
Share-based payment transactions

The company has issues share options to key employees under an Enterprise Management Incentive share option agreement. Share options have been granted as follows:

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
27
Share-based payment transactions
(Continued)
- 43 -
Group
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 January 2023 and 31 December 2023
130
130
3,772.00
3,772.00
Exercisable at 31 December 2023
-
-
-
-

The shares vest to the option holders on a change of control based on the rules of the scheme. This is an equity-settled share based payment arrangement and the maximum term of the options granted is 10 years. We have estimated the share options to vest to the option holders over 10 years.

 

The Company is unable to directly measure the fair value of employee services received. Instead the fair value of share options granted is determined using the Black-Scholes model. The model is internationally recognised as being appropriate to value employee share schemes similar to this scheme.

 

The key assumptions used are the exercise price set out in the option agreement, a share price based on a valuation of the company, the government risk free interest rate and the life of the option from the date of grant to the estimated date of exercise. The volatility of the share price was determined by utilising historic variations in earnings.

 

The total carrying amount at the end of the period for liabilities arising from the share-based payment transactions is £nil (2022 - £nil).

 

No expense has been recognised in the current or prior period on the basis that amounts are not material.

 

28
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
741
741
741
741
Ordinary A shares of £1 each
488
488
488
488
Ordinary B shares of £1 each
6
6
6
6
1,235
1,235
1,235
1,235
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
28
Share capital
(Continued)
- 44 -

Ordinary shares carry full voting, dividend (subject to the priority rights of dividend attaching to Ordinary A shares) and capital distribution rights but no rights of redemption.

 

Ordinary A shares carry full voting, dividend (priority to the holders of Ordinary and Ordinary B shares) and capital distribution rights but no rights of redemption.

 

Ordinary B shares carry full voting, dividend (subject to the priority rights of dividend attaching to Ordinary A shares) and capital distribution rights but no rights of redemption.

29
Share premium account

Includes any premiums received on issue of share capital.

30
Revaluation reserve

Includes any revaluation excess.

31
Profit and loss reserves

The retained earnings reserve holds the retained earnings of the group, after the deduction of any dividends paid in the period.

32
Financial commitments, guarantees and contingent liabilities

Company

 

A debenture including fixed charge over all present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both

present and future; and first floating charge over all assets and undertaking both present and future dated 08 November 2016.

 

An unlimited multilateral guarantee was given to HSBC Bank plc by the company and its fellow group companies, dated 11 September 2019, against the company and group's combined bank facilities.

 

Group

 

A cumulative guarantee totalling £501,555 (2022 £805,665) was given to The Environmental Agency.

Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 45 -
33
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
1,532,584
1,062,168
105,733
154,109
Between two and five years
2,239,599
2,485,366
268,823
374,555
In over five years
18,750
43,750
-
-
3,790,933
3,591,284
374,556
528,664
34
Events after the reporting date

On 31st May 2024 Walleys Quarry Ltd was de-merged from the Oliver Grace Group of Companies as the landfill operation with its finite life is no longer a strategic fit with the short and long term plans for the rest of the Group.

 

From this date Renewacore Ltd is now the ultimate parent of Walleys Quarry Ltd.

 

Post the year end, due to a Group re-organisation, the ultimate parent company is Red Industries Holdings Ltd, incorporated in England and Wales, registered office, Unit 4 Newlands Court Attwood Road, Burntwood Business Park, Burntwood, Staffordshire, WS7 3GF.

35
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
173,786
107,319
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 46 -
36
Cash generated from group operations
2023
2022
£
£
Profit/(loss) for the year after tax
4,795,572
(2,954,071)
Adjustments for:
Taxation charged
1,515,579
430,737
Finance costs
2,553,169
1,860,379
Investment income
(67,203)
(1,198)
Gain on disposal of tangible fixed assets
(109,940)
(23,710)
Fair value gain on investment properties
-
0
(433,000)
Amortisation and impairment of intangible assets
2,176,438
2,658,198
Depreciation and impairment of tangible fixed assets
1,714,811
2,975,002
Movements in working capital:
(Increase)/decrease in stocks
(33,249)
16,480
Increase in debtors
(526,434)
(157,933)
Increase in creditors
599,366
1,162,359
Cash generated from operations
12,618,109
5,533,243
37
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
547,520
5,145,409
5,692,929
Bank overdrafts
(1,312,424)
1,312,424
-
0
(764,904)
6,457,833
5,692,929
Borrowings excluding overdrafts
(21,069,216)
1,392,706
(19,676,510)
Obligations under finance leases
(169,226)
120,027
(49,199)
(22,003,346)
7,970,566
(14,032,780)
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 47 -
38
Prior period adjustment
Reconciliation of changes in equity - group
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Revaluation of freehold property
(4,860,000)
(1,232,819)
Revaluation of goodwill
-
2,895,746
Release of deferred tax on revaluation adjustment
1,215,000
-
Correction of depreciation on landfill site
(595,967)
-
Total adjustments
(4,240,967)
1,662,927
Equity as previously reported
6,868,472
1,353,100
Equity as adjusted
2,627,505
3,016,027
Analysis of the effect upon equity
Revaluation reserve
-
(333,140)
Profit and loss reserves
(4,240,967)
1,996,067
(4,240,967)
1,662,927
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Revaluation of freehold property
(1,193,666)
Revaluation of goodwill
(486,000)
Total adjustments
(1,679,666)
Loss as previously reported
(1,274,405)
Loss as adjusted
(2,954,071)
Oliver Grace Ltd
Notes to the group financial statements (continued)
For the year ended 31 December 2023
38
Prior period adjustment
(Continued)
- 48 -
Reconciliation of changes in equity - company
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Fair value of share based payments
-
191,626
Equity as previously reported
1,922,648
530,311
Equity as adjusted
1,922,648
721,937
Analysis of the effect upon equity
Profit and loss reserves
-
191,626
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Loss as previously reported
(1,392,337)
Loss as adjusted
(1,392,337)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200Mr A ShareMr J M ClewesMr T P A WilsonMr S G LyonMr N BowenMr J EarlMr A SleethMr A D S BakerMr 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