Company Registration No. 02069980 (England and Wales)
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
LB GROUP
Ground Floor
Swift House
18 Hoffmanns Way
Chelmsford
CM1 1GU
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
COMPANY INFORMATION
Directors
Mr D Wolfenden
(Appointed 7 June 2023)
Mr G Basford
(Appointed 10 November 2023)
Mr M McCleery
(Appointed 10 November 2023)
Company number
02069980
Registered office
Sortera House 35 First Avenue
Montagu Industrial Estate
Edmonton
London
N18 3PH
Auditors
LB Group Limited (Chelmsford)
Ground Floor
Swift House
18 Hoffmanns Way
Chelmsford
CM1 1GU
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Profit and loss account
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 30
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report and financial statements for the period ended 31 December 2023.
Section 172 Statement
During the period, the Directors have acted to promote the success of the Company for the benefit of its members.
Throughout the period, while discharging their duties section 172(1) requires a Director to have regard to, among other matters, the;
■ Likely long-term consequences
■ Interests of the Company’s employees
■ Business relationships with suppliers and customers
■ Impact on the community and environment
■ Reputation for high standards of business conduct
■ Acting fairly between members of the company
The Directors when deciding upon strategic options ensure that any decisions undertaken are consistent and intended to promote the Company’s long-term success. Whilst the business has been impacted in the short term by inflationary risks we are confident that the company will overcome these risks, given the liquidity strength of the business.
The directors have worked hard in ensuring continuity of business operations and look forward to its continued success.
Managers proactively engage with employees offering support and wellbeing where required. The company encourages;
• Diversity and Inclusion
• Prevention of modern day slavery.
Within this sector Health & Safety is of the utmost importance and continued training programmes and learning is provided to enable us to manage and reduce risk for everyone concerned. We have retained our ISO certification and achieved the Acclaim Accreditation in the SSIP to enhance customer confidence.
We continue to work closely with our suppliers and customers to support one another to enable strong relationships and future success
The Directors strategy supports that of the Government;
• Environmental policy and compliance
• Minimising waste to landfill
• Sustainability.
As a Company we are constantly evolving to reduce our carbon footprint and increase protection of the environment
Our business model relies upon high standards and best practice so that our reputation remains intact and appreciated by others within the industry. We want our customers, suppliers and the community to be proud of with whom they do business with.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Fair review of the business
The principal activity of the company in the year was that of skip hire and waste disposal.
The directors aim to provide a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced.
The directors consider that the key performance indicators are those that communicate the financial; performance and strength of the company as a whole, these being turnover and operating profit.
The turnover and operating profit of the company was as follows;
Turnover £30,117,888 (February 2023: £37,279,339)
Gross profit £4,895,612 (February 2023: £6,871,890)
Operating profit £25,897 (February 2023: £1,848,691)
The directors are satisfied with the company's financial position at the year end - the shortened financial year from March 23 to December 23 automatically ending in a lower result when compared to a full year from before. The statement of financial position shows that the company's net assets at the year end have decreased from £20,780,935 to £9,735,999.
As for many businesses of this size, the business environment in which the company operates continues to be challenging. The company faces competition in its markets, and is of course subject to consumer and commercial spending patterns and the overall level of disposable income within the economy.
Future developments
In June 23 GBN services was acquired by Sortera (backed by Nordic Capital).
Sortera, as the new owners, have exciting plans for significant investment and growth in the UK. They are a leading provider of construction waste management services to thousands of customers across Europe and are committed to being a responsible corporate citizen, operating in full compliance with all European and UK regulations.
Two new statutory directors have joined the company in October 2023 and started the post-acquisition due diligence process. As part of this standard process on internal controls some potential historical tax compliance discrepancies around VAT, and taxation of employee remuneration and benefits were identified. We have taken remedial action internally regarding these discrepancies and we have fully settled a historical liability to HMRC for these discrepancies. This is reflected in the financial statements for December 2023, in both the current and comparative figures.
Mr G Basford
Director
28 September 2024
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the period ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of skip hire and waste disposal.
Results and dividends
The results for the period are set out on page 11.
Ordinary dividends were paid amounting to £10,703,863. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr D W Thompson
(Resigned 7 June 2023)
Mr G M Hobson
(Resigned 7 June 2023)
Mr G D Thompson
(Resigned 7 June 2023)
Mr S Motala
(Resigned 7 June 2023)
Mr C Bergstrom
(Appointed 7 June 2023 and resigned 10 November 2023)
Mr D Wolfenden
(Appointed 7 June 2023)
Mr G Wessman
(Appointed 7 June 2023 and resigned 10 November 2023)
Mr G Basford
(Appointed 10 November 2023)
Mr M McCleery
(Appointed 10 November 2023)
Financial instruments
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
In accordance with the company's articles, a resolution proposing that LB Group Limited (Chelmsford) be reappointed as auditor of the company will be put at a General Meeting.
Energy and carbon report
This section has been prepared in compliance with the SECR Framework as implemented in the Companies (Director's Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
31
28
December
February
2023
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
31,379,439
36,485,825
Emissions of CO2 equivalent
Metric tonnes
Metric tonnes
Metric tonnes
Metric tonnes
Gas combustion (Scope 1)
28
40
Fuel consumed for owned transport (Scope 1)
7,108
8,670
7,136
8,710
Electricity purchased (Scope 2)
61
147
Total gross emissions
7,197
8,857
Intensity ratio
Tonnes of CO2 per £m of revenue
241
239
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -
Measures taken to improve energy efficiency
The company has implemented the policies below for the purpose of increasing the businesses energy efficiency in the current reported financial year:
Improved usage of video conferencing to reduce travel emissions.
Improved haulage route planning to reduce carbon emissions of the fleet.
Continuous renewal of the motor vehicle fleet to ensure fuel efficiency of the fleet.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr G Basford
Director
28 September 2024
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 6 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
- 7 -
Opinion
We have audited the financial statements of Sortera Limited (Formerly G.B.N. Services Limited) (the 'company') for the period ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
Control deficiencies are apparent regarding the lack of accounting for cash transactions. Management engaged an expert to aid the adjustments to the financial statements and liabilities to tax, but this remains a breach of applicable tax legislation. In our professional judgement we deemed this matter to be of most significance in the audit of the financial statements of the current period.
In the prior period, the matters described above were also apparent and a qualified audit opinion on the financial statements was provided whilst the internal investigation and communications with HM Revenue & Customs were ongoing. At the date of sign off of these financial statements, the matter has now been concluded internally and with HM Revenue & Customs, with amendments to the control environment actioned in order to mitigate the risk moving forward.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
- 8 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
- 9 -
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, incorporated the following:
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the waste management and waste disposal sector;
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, and health and safety legislation;
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;
Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, our work included:
Performance of analytical procedures to identify any unusual or unexpected relationships;
Testing journal entries to identify unusual transactions. Investigated the rationale behind significant or unusual transactions; and
Observation and identification of internal controls in place, specifically around payroll and bank transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
Agreeing financial statement disclosures to underlying supporting evidence;
Enquiring of management as to actual and potential litigation and claims; and
Reviewing correspondence with HMRC and reviewing for evidence of correspondence with legal advisors.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
- 10 -
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.
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.
Michael Warman (Senior Statutory Auditor)
for and on behalf of LB Group Limited (Chelmsford)
30 September 2024
Chartered Accountants
Statutory Auditor
Ground Floor
Swift House
18 Hoffmanns Way
Chelmsford
CM1 1GU
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
Period
Year
ended
ended
31 December
28 February
2023
2023
Notes
£
£
Turnover
4
30,117,888
37,279,339
Cost of sales
(25,222,276)
(30,407,449)
Gross profit
4,895,612
6,871,890
Administrative expenses
(4,869,715)
(5,979,061)
Other operating income
4
955,862
Operating profit
6
25,897
1,848,691
Intercompany loan write off
3
(4,207)
Interest receivable and similar income
9
9,595
9,613
Interest payable and similar expenses
10
(456,638)
(319,917)
(Loss)/profit before taxation
(421,146)
1,534,180
Tax on (loss)/profit
11
80,073
(114,870)
(Loss)/profit for the financial period
(341,073)
1,419,310
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There was no other comprehensive income in the period ended December 2023 (February 2023: £Nil).
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
31 December 2023
28 February 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
11,509,213
11,440,499
Investments
15
100
100
11,509,313
11,440,599
Current assets
Stocks
18
53,542
58,188
Debtors
19
5,936,931
15,686,742
Cash at bank and in hand
1,444,891
1,345,707
7,435,364
17,090,637
Creditors: amounts falling due within one year
20
(6,881,510)
(6,667,492)
Net current assets
553,854
10,423,145
Total assets less current liabilities
12,063,167
21,863,744
Creditors: amounts falling due after more than one year
21
(1,148,683)
(585,044)
Provisions for liabilities
Provisions
24
943,987
497,765
Deferred tax liability
25
234,498
(1,178,485)
(497,765)
Net assets
9,735,999
20,780,935
Capital and reserves
Called up share capital
27
100
100
Profit and loss reserves
9,735,899
20,780,835
Total equity
9,735,999
20,780,935
The financial statements were approved by the board of directors and authorised for issue on 28 September 2024 and are signed on its behalf by:
Mr G Basford
Director
Company Registration No. 02069980
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
100
19,901,525
19,901,625
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
1,419,310
1,419,310
Dividends
12
-
(540,000)
(540,000)
Balance at 28 February 2023
100
20,780,835
20,780,935
Period ended 31 December 2023:
Loss and total comprehensive income for the period
-
(341,073)
(341,073)
Dividends
12
-
(10,703,863)
(10,703,863)
Balance at 31 December 2023
100
9,735,899
9,735,999
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
31 December 2023
28 February 2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
2,651,390
1,534,063
Interest paid
(456,638)
(319,917)
Income taxes paid
(11,433)
(148,737)
Net cash inflow from operating activities
2,183,319
1,065,409
Investing activities
Purchase of tangible fixed assets
(624,288)
(830,433)
Proceeds from disposal of tangible fixed assets
258,043
724,134
Interest received
9,595
9,613
Net cash used in investing activities
(356,650)
(96,686)
Financing activities
Proceeds from new bank loans
284,834
Repayment of bank loans
(602,397)
Payment of finance leases obligations
(1,429,965)
(1,892,543)
Dividends paid
(582,354)
(540,000)
Net cash used in financing activities
(1,727,485)
(3,034,940)
Net increase/(decrease) in cash and cash equivalents
99,184
(2,066,217)
Cash and cash equivalents at beginning of period
1,345,707
3,411,924
Cash and cash equivalents at end of period
1,444,891
1,345,707
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information
Sortera Limited (Formerly G.B.N. Services Limited) is a private company limited by shares incorporated in England and Wales. The registered office is Sortera House 35 First Avenue, Montagu Industrial Estate, Edmonton, London, N18 3PH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The reporting period of the financial statements is shorter than one year, due to the company shortening the accounting reference date, thus the figures in these financial statements are not entirely comparable with the prior period.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services mainly that of waste disposal, 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.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 an expected 10 year life.
1.6
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.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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:
Leasehold land and buildings
5% and 2% straight line
Plant and equipment
15% straight line
Fixtures and fittings
20% straight line
Computer Equipment
3 or 5 years straight line
Motor vehicles
7 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
In the current year, the depreciation policy for motor vehicles has changed to 7 years straight line. Previously this was between 25% reducing balance and 5 years straight line, management now assess 7 years straight line to be a more accurate choice of policy.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the company 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.
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.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials that have been incurred in bringing the stocks to their present location and condition.
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.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Cash at bank and in hand
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.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.
1.14
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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 is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
1.18
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Exceptional item
31 December 2023
28 February 2023
£
£
Expenditure
Intercompany loan write off
-
4,207
Exceptional costs incurred in the prior year relate to amounts written-off due from fellow group undertakings.
4
Turnover and other revenue
An analysis of the company's turnover is as follows:
31 December 2023
28 February 2023
£
£
Turnover analysed by class of business
Skip hire and waste disposal
30,117,888
37,279,339
31 December 2023
28 February 2023
£
£
Other revenue
Interest income
9,595
9,613
Sale of property and land
-
402,662
Management charges
-
553,200
5
Auditor's remuneration
31 December 2023
28 February 2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,800
16,000
For other services
All other non-audit services
2,150
2,000
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 21 -
6
Operating profit
31 December 2023
28 February 2023
Operating profit for the period is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
513,658
994,426
Depreciation of tangible fixed assets held under finance leases
1,480,422
1,520,421
Profit on disposal of tangible fixed assets
(155,849)
(188,902)
Sale of property and land
-
402,622
7
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
31 December 2023
28 February 2023
Number
Number
Distribution staff
201
230
Administration staff
34
20
Management staff
3
4
Total
238
254
Their aggregate remuneration comprised:
31 December 2023
28 February 2023
£
£
Wages and salaries
9,307,844
10,360,415
Social security costs
1,160,641
1,180,161
Pension costs
220,915
242,321
10,689,400
11,782,897
8
Directors' remuneration
31 December 2023
28 February 2023
£
£
Remuneration for qualifying services
116,272
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 22 -
9
Interest receivable and similar income
31 December 2023
28 February 2023
£
£
Interest income
Interest on bank deposits
9,595
9,613
10
Interest payable and similar expenses
31 December 2023
28 February 2023
£
£
Other interest on financial liabilities
215,729
156,540
Interest on finance leases and hire purchase contracts
141,013
163,377
Other interest
99,896
456,638
319,917
11
Taxation
31 December 2023
28 February 2023
£
£
Current tax
UK corporation tax on profits for the current period
(52,066)
138,829
Adjustments in respect of prior periods
(11,370)
(23,959)
Total current tax
(63,436)
114,870
Deferred tax
Origination and reversal of timing differences
(16,637)
Total tax (credit)/charge
(80,073)
114,870
The applicable tax rate changed in the current period on 1 April 2023. Therefore, the applicable tax rate for the first month from 1 March 2023 to 31 March 2023 was 19%, and the applicable tax rate for the final nine months from 1 April 2023 to 31 December 2023 was 25%.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 23 -
The actual (credit)/charge for the period can be reconciled to the expected (credit)/charge for the period based on the profit or loss and the standard rate of tax as follows:
31 December 2023
28 February 2023
£
£
(Loss)/profit before taxation
(421,146)
1,534,180
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (28 February 2023: 19.00%)
(105,287)
291,494
Tax effect of expenses that are not deductible in determining taxable profit
80,861
(11,862)
Tax effect of income not taxable in determining taxable profit
(38,962)
(35,891)
Unutilised tax losses carried forward
277,651
Depreciation on assets not qualifying for tax allowances
(252,374)
(80,714)
Research and development tax credit
(24,198)
Under/(over) provided in prior years
(25,325)
(23,959)
Deferred tax adjustments in respect of prior years
(16,637)
Taxation (credit)/charge for the period
(80,073)
114,870
12
Dividends
31 December 2023
28 February 2023
£
£
Final paid
10,703,863
540,000
13
Intangible fixed assets
Goodwill
£
Cost
At 1 March 2023 and 31 December 2023
2,480,727
Amortisation and impairment
At 1 March 2023 and 31 December 2023
2,480,727
Carrying amount
At 31 December 2023
At 28 February 2023
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 24 -
14
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computer Equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
5,561,621
11,240,800
30,884
154,461
14,510,496
31,498,262
Additions
113,290
205,722
23,758
1,822,218
2,164,988
Disposals
(495,461)
(1,143,195)
(1,638,656)
At 31 December 2023
5,674,911
10,951,061
30,884
178,219
15,189,519
32,024,594
Depreciation and impairment
At 1 March 2023
1,010,741
8,324,248
26,456
113,511
10,582,807
20,057,763
Depreciation charged in the period
207,008
787,003
702
17,574
981,793
1,994,080
Eliminated in respect of disposals
(467,066)
(1,069,396)
(1,536,462)
At 31 December 2023
1,217,749
8,644,185
27,158
131,085
10,495,204
20,515,381
Carrying amount
At 31 December 2023
4,457,162
2,306,876
3,726
47,134
4,694,315
11,509,213
At 28 February 2023
4,550,880
2,916,552
4,428
40,950
3,927,689
11,440,499
The net carrying value of tangible fixed assets includes the following in respect of assets held under hire purchase contracts. The depreciation charge in respect of such assets amounted to £1,480,422 (28 February 2023 - £1,520,421) for the period.
31 December 2023
28 February 2023
£
£
Plant and equipment
945,573
1,356,787
Motor vehicles
3,996,407
3,169,030
4,941,980
4,525,817
15
Fixed asset investments
31 December 2023
28 February 2023
Notes
£
£
Investments in subsidiaries
16
100
100
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 25 -
16
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Uxbridge Skip Hire Holdings
Swift House, Ground Floor, 18 Hoffmanns Way, Chelmsford, Essex, England, CM1 1GU
Ordinary
100.00
17
Financial instruments
31 December 2023
28 February 2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,853,327
15,360,072
Carrying amount of financial liabilities
Measured at amortised cost
7,772,432
6,798,226
18
Stocks
31 December 2023
28 February 2023
£
£
Raw materials and consumables
53,542
58,188
19
Debtors
31 December 2023
28 February 2023
Amounts falling due within one year:
£
£
Trade debtors
4,846,364
5,235,950
Amounts owed by group undertakings
10,120,186
Other debtors
6,963
3,936
Prepayments and accrued income
832,470
326,670
5,685,797
15,686,742
Deferred tax asset (note 25)
251,134
5,936,931
15,686,742
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 26 -
20
Creditors: amounts falling due within one year
31 December 2023
28 February 2023
Notes
£
£
Loans and overdrafts
22
3,452,537
3,167,703
Obligations under hire purchase agreements
23
886,850
1,339,754
Trade creditors
1,537,300
1,478,011
Amounts due to fellow group undertakings
512,472
Corporation tax payable
(190,487)
(115,617)
Other taxation and social security
448,248
569,927
Other creditors
1,325
23,520
Accruals and deferred income
233,265
204,194
6,881,510
6,667,492
21
Creditors: amounts falling due after more than one year
31 December 2023
28 February 2023
Notes
£
£
Obligations under finance leases
23
1,148,683
585,044
22
Loans and overdrafts
31 December 2023
28 February 2023
£
£
Bank loans
3,452,051
3,167,217
Payable within one year
3,452,051
3,167,217
Invoice financing from RBS Invoice Finance Limited are secured by way of a fixed and floating charge, and a debenture over the company's assets.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 27 -
23
Finance lease obligations
31 December 2023
28 February 2023
Future minimum lease payments due under finance leases:
£
£
Within one year
886,850
1,339,754
In two to five years
1,148,683
585,044
2,035,533
1,924,798
24
Provisions for liabilities
31 December 2023
28 February 2023
£
£
Provision for tax liabilities
943,987
497,765
Movements on provisions:
Provision for tax liabilities
£
At 1 March 2023
497,765
Additional provisions in the year
446,222
At 31 December 2023
943,987
25
Deferred taxation
Deferred tax assets and liabilities are offset where the 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
31 December 2023
28 February 2023
31 December 2023
28 February 2023
Balances:
£
£
£
£
ACAs
234,498
-
-
-
Tax losses
-
-
251,134
-
234,498
-
251,134
-
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
25
Deferred taxation
(Continued)
- 28 -
31 December 2023
Movements in the period:
£
Liability at 1 March 2023
-
Credit to profit or loss
(16,636)
Asset at 31 December 2023
(16,636)
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
26
Retirement benefit schemes
31 December 2023
28 February 2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
220,915
242,321
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
27
Share capital
31 December 2023
28 February 2023
31 December 2023
28 February 2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
The company has one class of ordinary shares which carry no right to fixed income. These shares carry voting rights.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 29 -
28
Related party transactions
The company has taken advantage of the exemption in FRS 102 from the requirement to disclose transactions with group companies that are wholly owned.
29
Contingent liabilities
At the time of sign off, the company has a historical unresolved dispute with a supplier that may need to be resolved. The financial impact of resolution, if any, cannot be estimated at this time.
30
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
31 December 2023
28 February 2023
£
£
Within one year
1,778,859
259,673
Between two and five years
7,137,656
473,153
In over five years
9,840,000
18,756,515
732,826
31
Events after the reporting date
After the reporting period, the group started proceedings to hive across the trade in group company O’Donovan (Waste Disposal) Limited to the company.
32
Ultimate controlling party
The company's immediate parent company is Reuse Holdings Limited, a company incorporated in England and Wales. Its registered office is C/O Aztec Financial Services (Uk) Limited Forum 4, Solent Business Park, Parkway South, Whiteley, Fareham, Hampshire, England, PO15 7AD.
The largest group in which the results of the company are consolidated is that headed by TeraSor Topco AB, a company incorporated in Sweden. The consolidated accounts are available from its registered office, PO Box 82151, SE-12008, Stockholm, Sweden.
SORTERA LIMITED (FORMERLY G.B.N. SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 30 -
33
Cash generated from operations
31 December 2023
28 February 2023
£
£
(Loss)/profit for the period after tax
(341,073)
1,419,310
Adjustments for:
Taxation (credited)/charged
(80,073)
114,870
Finance costs
456,638
319,917
Investment income
(9,595)
(9,613)
Gain on disposal of tangible fixed assets
(155,849)
(188,902)
Depreciation and impairment of tangible fixed assets
1,994,080
2,514,847
Increase in provisions
446,222
212,879
Dividend reducing amounts owed by group undertakings
(10,121,509)
-
Movements in working capital:
Decrease in stocks
4,646
762
Decrease/(increase) in debtors
10,000,945
(2,030,623)
Increase/(decrease) in creditors
456,958
(819,384)
Cash generated from operations
2,651,390
1,534,063
34
Analysis of changes in net debt
1 March 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
1,345,707
99,184
-
1,444,891
Borrowings excluding overdrafts
(3,167,217)
(284,834)
-
(3,452,051)
Obligations under finance leases
(1,924,798)
1,429,965
(1,540,700)
(2,035,533)
(3,746,308)
1,244,315
(1,540,700)
(4,042,693)
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