Company registration number 03032719 (England and Wales)
N-VIRO LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 APRIL 2024
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
N-VIRO LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 29
N-VIRO LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr. B Warren
Mr. M Goodey
Ms. H Miller
Secretary
Mrs. K Goodey
Company number
03032719
Registered office
9 Acorn Business Centre
Northarbour Road
Portsmouth
Hampshire
United Kingdom
PO6 3TH
Auditor
TC Group
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
N-VIRO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

The directors present the strategic report for the year ended 30 April 2024.

Executive Summary

During the year Nviro Limited was successfully acquired by CHS Group, a newly formed company set up by the three directors of Nviro, ending the previous ownership by The Quarr Group Limited. This MBO demonstrates the passion and commitment of the directorship team to the continued growth and success of the business.

 

The vision for the business has been further refined to ‘making a positive impact on the lives and communities we operate in by supporting our partners in creating clean, hygienic, and safe working environments for building users to thrive.’ A truly purpose driven organisation.

 

We continue to make good progress through our overriding business strategy of continual improvement through bringing together our strategic anchors of Great People and Great Clients generating Great Environments for building users to thrive.

 

We have clearly defined our operating market of Education, Local Authorities and Social Housing aligned to our business strengths, knowledge, expertise and experience, and have developed this further with our business growth and marketing strategy aligned to the principle of watertight business thinking.

 

Financial Performance Overview

For the fiscal year 2024, total revenue grew by £1.4 million to £23.5 million, a 6.6% increase on the previous year. Gross profitability increased to 27.3%, up from 26.8% in 2023 as the business continues to benefit from improved operating efficiencies through the wider use of technological solutions and new-to-market equipment. Continued investment in our people and support functions to support increased future client growth in the business contributed to the reduction in net profit from 3.4% to 2.7%.

 

During the year key contracts with Hampshire Police, Isle of Wight Council and Surrey County Council (via Macro) were retained. Added to the portfolio were amongst others; Thomas’s London Day Schools, Haylands Primary School and Brighton Dome.

 

Strategic Initiatives

The executive leadership team have created a 5-year plan aligned to the vision of the business which consists of, a Business Growth Plan, Great People Plan, Great Client Service Plan and Sustainability (ESG) Plan.

 

Underpinning the 5-year plan is the focus on continual improvement through greater focus and messaging around our core proposition of providing:

 

During 2024 the business will be launching its new People Management software, encompassing live workforce management data as well as a fully systemised recruiting, vetting, onboarding, development, and exiting process. The Work platform will further contribute to increased quality and quantity of management time for client engagement and efficient service delivery. All Nviro colleagues will have access to the Work platform via smart technology to improve all round engagement and communications.

N-VIRO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

Markets and Risk

The marketplace remains competitive with financial budget pressures still being seen and a greater requirement to demonstrate value for money. There is some uncertainty within the market due to the change in government and the widely publicised impacts this may have on employment costs. Cost pressures remain a factor both in terms of raw materials and labour costs, with the effects of fiscal drag being seen on employment taxes.

 

The industry is advancing through the availability of smart cleaning technology such as room utilisation software, improved automated equipment and through the development of surface protectors. For Nviro to remain at the forefront of this we will continue to focus on developing our working partnerships with key suppliers and manufacturers. Providing budget and expertise to trial such innovations in real world scenarios, and where these are the right solutions implement these at pace across our portfolio.

 

We will continue to work closely with our clients to understand their wider business objectives including their Environmental, Social, Governance targets and dovetail this with our own ESG focus of Net Zero and the United Nations sustainability goals. This will provide a true joined up approach to tackling these issues that we all face, in maintaining a Great Planet.

On behalf of the board

Mr. B Warren
Director
2 October 2024
N-VIRO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of cleaning services.

Directors

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

Mr. B Warren
Mr. M Goodey
Mr. J French
(Resigned 6 July 2023)
Ms. H Miller
Results and dividends

The results for the year are set out on page 11. Particulars of dividends paid are detailed in note 8 to the financial statements.

Ordinary dividends were paid amounting to £3,393,643.

Financial instruments
Interest rate risk

The company's financial instruments relate primarily to hire purchase agreements, which have been entered into under fixed interest rates.

Foreign currency risk

As at 30th April 2024 the company had no material currency exposures relating to trading activities. The company's financial instruments are materially denominated in sterling.

Fair values of financial assets and liabilities

An assessment of the fair value of the company's financial instruments held for financing purposes has been undertaken as at 30th April 2024. No material differences exist between book and fair value

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.

N-VIRO LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
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 of 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.

Auditor

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

Statement of disclosure to auditor

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

On behalf of the board
Mr B. Warren
Director
2 October 2024
N-VIRO LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 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:

 

 

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.

N-VIRO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF N-VIRO LIMITED
- 7 -
Opinion

We have audited the financial statements of N-Viro Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

N-VIRO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF N-VIRO LIMITED
- 8 -

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

N-VIRO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF N-VIRO LIMITED
- 9 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

 

N-VIRO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF N-VIRO LIMITED
- 10 -

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.

James Blake FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
2 October 2024
Office: Portsmouth
N-VIRO LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
23,486,711
22,120,950
Cost of sales
(17,067,468)
(16,182,918)
Gross profit
6,419,243
5,938,032
Administrative expenses
(5,795,671)
(5,187,443)
Operating profit
4
623,572
750,589
Interest receivable and similar income
7,000
-
0
Profit before taxation
630,572
750,589
Tax on profit
7
(144,332)
(143,219)
Profit for the financial year
486,240
607,370
Other comprehensive income
Actuarial loss on defined benefit pension schemes
(7,000)
-
0
Total comprehensive income for the year
479,240
607,370

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

N-VIRO LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
521,797
264,458
Investments
10
10
10
521,807
264,468
Current assets
Stocks
12
35,927
33,500
Debtors
13
3,544,878
5,448,404
Cash at bank and in hand
781,818
1,278,397
4,362,623
6,760,301
Creditors: amounts falling due within one year
14
(3,014,046)
(2,308,275)
Net current assets
1,348,577
4,452,026
Total assets less current liabilities
1,870,384
4,716,494
Provisions for liabilities
(68,293)
-
0
Net assets excluding pension liability
1,802,091
4,716,494
Defined benefit pension liability
16
-
0
-
0
Net assets
1,802,091
4,716,494
Capital and reserves
Called up share capital
17
833,474
833,474
Profit and loss reserves
968,617
3,883,020
Total equity
1,802,091
4,716,494
The financial statements were approved by the board of directors and authorised for issue on 2 October 2024 and are signed on its behalf by:
Mr. B Warren
Director
Company Registration No. 03032719
The notes on pages 14 to 29 form part of these financial statements
N-VIRO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
833,474
3,275,650
4,109,124
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
607,370
607,370
Balance at 30 April 2023
833,474
3,883,020
4,716,494
Year ended 30 April 2024:
Profit for the year
-
486,240
486,240
Other comprehensive income:
Actuarial gains on defined benefit plans
-
(7,000)
(7,000)
Total comprehensive income for the year
-
479,240
479,240
Dividends
8
-
(3,393,643)
(3,393,643)
Balance at 30 April 2024
833,474
968,617
1,802,091
N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
1
Accounting policies
Company information

N-Viro Limited is a private company limited by shares incorporated in England and Wales. The registered office is 9 Acorn Business Centre, Northarbour Road, Portsmouth, Hampshire, United Kingdom, PO6 3TH.

 

The company was a wholly owned subsidiary of The Quarr Group Limited until 14 December 2023, when all of its shares were acquired by CHS Group Holdings Limited, as part of a demerger of the Quarr Group businesses.

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 on the historical cost convention. The principal accounting policies adopted are set out below.

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

 

 

N-Viro Limited is a wholly owned subsidiary of CHS Group Holdings Limited and the results of N-Viro Limited are included in the consolidated financial statements of CHS Group Holdings Limited which are available from 9 Acorn Business Centre, Northarbour Road, Cosham, Hampshire, England, PO6 3TH.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

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.

N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Turnover

Turnover from the provision of cleaning services is recognised at the fair value of consideration received or receivable (net of VAT) when the service is carried out.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
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:

Short Leasehold Property
20% straight line/over the lease term
Plant and Machinery
33% straight line
Computers
20% - 50% straight line
Motor Vehicles
20% 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.

1.6
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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, after making due allowances for obsolete and slow moving items.

N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.8
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.

1.9
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, amounts due from fellow group undertakings 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.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

1.10
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.

N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.11
Taxation

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

Current tax

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

Deferred tax

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

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
Retirement benefits

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.14
Leases

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

 

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

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

1.15
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.

N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
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.

 

The directors have considered whether there are any critical judgements required in the preparation of these accounts and have concluded that there are none requiring disclosure.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover
United Kingdom
23,486,711
22,120,950

All of the company's turnover is derived from the provision of cleaning services within the UK.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
8,419
9,591
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
10,000
Depreciation of owned tangible fixed assets
189,146
212,548
(Profit)/loss on disposal of tangible fixed assets
(2,540)
3,475
N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
5
Employees

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

2024
2023
Number
Number
Cleaning
1,101
1,137
Administrative
89
84
Total
1,190
1,221

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
17,942,464
16,919,893
Social security costs
1,223,815
1,140,509
Pension costs
515,937
385,632
19,682,216
18,446,034
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
459,306
499,938
Company pension contributions to defined contribution schemes
41,654
25,230
500,960
525,168

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
6
Directors' remuneration
(Continued)
- 21 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
141,250
149,019
Company pension contributions to defined contribution schemes
13,000
6,938
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
32,972
142,660
Deferred tax
Origination and reversal of timing differences
111,360
559
Total tax charge
144,332
143,219

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

2024
2023
£
£
Profit before taxation
630,572
750,589
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
157,643
146,290
Tax effect of expenses that are not deductible in determining taxable profit
(1,671)
608
Group relief
(11,640)
-
0
Effect of change in tax rates
-
0
4,586
Fixed asset superdeduction
-
0
(8,265)
Taxation charge for the year
144,332
143,219
N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
8
Dividends
2024
2023
£
£
Paid on ordinary shares
3,393,643
-
0
3,393,643
-

During the year the company paid dividends of £2,000,338 to the company's shareholders at 11 December 2023 and £1,393,305 to the company's shareholders at 30 April 2024.

9
Tangible fixed assets
Short Leasehold Property
Plant and Machinery
Computers
Motor Vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
67,234
716,543
629,377
75,332
1,488,486
Additions
2,048
163,131
288,686
12,200
466,065
Disposals
-
0
-
0
(49,746)
(27,487)
(77,233)
At 30 April 2024
69,282
879,674
868,317
60,045
1,877,318
Depreciation and impairment
At 1 May 2023
60,009
600,902
502,509
60,608
1,224,028
Depreciation charged in the year
3,260
102,334
75,917
7,635
189,146
Eliminated in respect of disposals
-
0
-
0
(43,895)
(13,758)
(57,653)
At 30 April 2024
63,269
703,236
534,531
54,485
1,355,521
Carrying amount
At 30 April 2024
6,013
176,438
333,786
5,560
521,797
At 30 April 2023
7,225
115,641
126,868
14,724
264,458

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

 

The net book value split by tangible fixed asset class is:

2024
2023
£
£
Motor Vehicles
-
0
9,060
N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
10
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
11
10
10
11
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
N-Viro Consulting Limited
9 Acorn Business Park, Northarbour Road, Portsmouth, England
Ordinary
100.00
12
Stocks
2024
2023
£
£
Consumables
35,927
33,500
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,506,712
2,267,530
Corporation tax recoverable
52,419
-
0
Other debtors
3,395
3,395
Prepayments and accrued income
296,977
315,769
2,859,503
2,586,694
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
685,375
2,818,643
Deferred tax asset (note 15)
-
0
43,067
685,375
2,861,710
Total debtors
3,544,878
5,448,404
N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Debtors
(Continued)
- 24 -

Amounts owed by group undertakings

Amounts owed by group undertakings falling due after one year, comprises monies leant by the company to its parent company. These amounts are unsecured and the company has no right to receive interest on them. The directors expect that the amounts owed by group undertakings will ultimately be recovered from any future dividends declared by the company to the parent company. However at the date of approval of these financial statements, no formal plans have been made by the group, and hence the company has presented the debtor within amounts falling due greater than one year, to reflect the likelihood that neither a dividend will be declared, or repayment made by the parent company within 12 months of the balance sheet date.

14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
360,411
264,821
Amounts due to fellow group undertakings
10
10
Corporation tax
-
0
86,853
Other taxes and social security
1,202,876
1,018,402
Accruals and deferred income
1,450,749
938,189
3,014,046
2,308,275

The hire purchase agreements are secured on the assets to which they relate.

15
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
2024
2023
2024
2023
Balances:
£
£
£
£
Fixed asset timing differences
88,008
-
-
(9,289)
Retirement benefit obligations
(19,715)
-
-
52,789
Other timing differences
-
-
-
(433)
68,293
-
-
43,067
N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
15
Deferred taxation
(Continued)
- 25 -
2024
Movements in the year:
£
Asset at 1 May 2023
(43,067)
Charge to profit or loss
111,360
Liability at 30 April 2024
68,293
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
515,937
385,632

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.

Defined benefit schemes

On 1 August 2023, as part of the process for the demerger of the company from The Quarr Group Limited, the company entered into a Flexible Apportionment Arrangement becoming a 50% participating employer in the Quarr Group Limited Pension and Life Assurance Plan.

 

The Quarr Group Limited Life Assurance Plan ("the Scheme") is an independently administered final salary scheme, where members receive benefits based on their final salary. The Scheme also provides benefits to spouses and dependants in the event of a member's death after retirement. Following consultation with the trustees of the Scheme and the Scheme members, the Scheme was closed to further service accrual with effect from 31st July 2005.

2024
Key assumptions
%
Discount rate
5.11
Expected rate of increase of pensions in payment
3.36
Expected rate of salary increases
n/a
N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
16
Retirement benefit schemes
(Continued)
- 26 -
Mortality assumptions
2024

Assumed life expectations on retirement at age 65:

Years
Retiring today
- Males
86
- Females
89
Retiring in 20 years
- Males
88
- Females
90
2024

Amounts recognised in the profit and loss account

£
Net interest on net defined benefit liability/(asset)
(7,000)
Total costs/(income)
(7,000)
2024

Amounts taken to other comprehensive income

£
Actual return on scheme assets
(91,000)
Less: calculated interest element
65,000
Return on scheme assets excluding interest income
(26,000)
Actuarial changes related to obligations
(1,000)
Other gains and losses - Pension surplus on entering into Flexible Apportionment Arrangement
(240,000)
Effect of changes in the amount of surplus that is not recoverable
274,000
Total costs
7,000
N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
16
Retirement benefit schemes
(Continued)
- 27 -

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

2024
£
Present value of defined benefit obligations
1,638,000
Fair value of plan assets
(1,912,000)
Surplus in scheme
(274,000)
Restriction on scheme assets
274,000
Total liability recognised
-

At 30 April 2024 the company recorded a surplus of £274,000 in respect of its valuation of the Scheme in accordance with Section 28 of FRS 102. The company has no right to withdraw amounts form the Scheme which is also closed to future contribution accrual and therefore in accordance with FRS 102 Section 28 the company has restricted the recognition of the surplus within these financial statements to its recoverable amount to the company, of £nil.

2024

Movements in the present value of defined benefit obligations

£
Liabilities at 1 May 2023
-
Liabilities assumed on entering into Flexible Apportionment Arrangement
1,645,000
Benefits paid
(64,000)
Actuarial gains and losses
(1,000)
Interest cost
58,000
At 30 April 2024
1,638,000

The defined benefit obligations arise from plans which are wholly funded.

N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
16
Retirement benefit schemes
(Continued)
- 28 -
2024

Movements in the fair value of plan assets

£
Fair value of assets at 1 May 2023
-
Assets assumed on entering into Flexible Apportionment Arrangement
1,885,000
Interest income
65,000
Return on plan assets (excluding amounts included in net interest)
26,000
Benefits paid
(64,000)
At 30 April 2024
1,912,000

The actual return on plan assets was £91,000 (2023 - £-).

2024

Fair value of plan assets at the reporting period end

£
Equity instruments
1,379,000
Bonds
93,000
Cash
118,000
Liability driven investments
294,000
Annuity policies
28,000
1,912,000
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
833,474
833,474
833,474
833,474
18
Related party transactions

In accordance with Section 33.1A the company has applied the exemption not to disclose transactions and balances with fellow wholly owned group undertakings.

N-VIRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
19
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:

2024
2023
£
£
Within one year
26,442
26,442
Between two and five years
137,600
188,600
164,042
215,042
20
Ultimate controlling party

On 14 December 2023 CHS Group Holdings Limited acquired the entire share capital in the company. Prior to this date the company was a wholly owned subsidiary of The Quarr Group Limited.

 

The consolidated accounts of the largest group of which the company is now a member and for which accounts are prepared can be obtained from the Company Secretary, CHS Group Holdings Limited, 9 Acorn Business Centre, Northarbour Road, Portsmouth, Hampshire, United Kingdom, PO6 3TH.

 

As a wholly owned subsidiary of CHS Group Holdings Limited, and previously of The Quarr Group Limited, the company is exempt under FRS102 section 33.1a from disclosing transactions with wholly owned members of the same group.

 

21
Financial commitments, guarentees and contingent liabilities

HSBC UK holds an intercompany cross guarantee between the ultimate parent company and its subsidiaries. This security is unlimited against the assets of all companies within the group.

 

HSBC UK also holds a fixed and floating charge over all assets as security for any debt, present or future that N-Viro Limited incur.

2024-04-302023-05-01falseCCH SoftwareCCH Accounts Production 2024.210Mr. B WarrenMr. M GoodeyMr. J FrenchMs. H MillerMr. S. Ingramfalsefalse030327192023-05-012024-04-3003032719bus:Director12023-05-012024-04-3003032719bus:Director22023-05-012024-04-3003032719bus:Director42023-05-012024-04-3003032719bus:Director32023-05-012024-04-3003032719bus:CompanySecretary12023-05-012024-04-3003032719bus:RegisteredOffice2023-05-012024-04-30030327192024-04-30030327192022-05-012023-04-3003032719core:RetainedEarningsAccumulatedLosses2022-05-012023-04-3003032719core:RetainedEarningsAccumulatedLosses2023-05-012024-04-30030327192023-04-3003032719core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-04-3003032719core:PlantMachinery2024-04-3003032719core:ComputerEquipment2024-04-3003032719core:MotorVehicles2024-04-3003032719core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-3003032719core:PlantMachinery2023-04-3003032719core:ComputerEquipment2023-04-3003032719core:MotorVehicles2023-04-3003032719core:CurrentFinancialInstrumentscore:WithinOneYear2024-04-3003032719core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3003032719core:Non-currentFinancialInstrumentscore:AfterOneYear2024-04-3003032719core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-3003032719core:CurrentFinancialInstruments2024-04-3003032719core:CurrentFinancialInstruments2023-04-3003032719core:ShareCapital2024-04-3003032719core:ShareCapital2023-04-3003032719core:RetainedEarningsAccumulatedLosses2024-04-3003032719core:RetainedEarningsAccumulatedLosses2023-04-3003032719core:ShareCapital2022-04-3003032719core:RetainedEarningsAccumulatedLosses2022-04-3003032719core:LandBuildingscore:LongLeaseholdAssets2023-05-012024-04-3003032719core:PlantMachinery2023-05-012024-04-3003032719core:ComputerEquipment2023-05-012024-04-3003032719core:MotorVehicles2023-05-012024-04-3003032719core:UKTax2023-05-012024-04-3003032719core:UKTax2022-05-012023-04-300303271912023-05-012024-04-300303271912022-05-012023-04-300303271922023-05-012024-04-300303271922022-05-012023-04-3003032719core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-3003032719core:PlantMachinery2023-04-3003032719core:ComputerEquipment2023-04-3003032719core:MotorVehicles2023-04-30030327192023-04-3003032719core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-05-012024-04-3003032719core:Non-currentFinancialInstruments2024-04-3003032719core:Non-currentFinancialInstruments2023-04-300303271912023-05-012024-04-3003032719core:AfterOneYear2024-04-3003032719core:AfterOneYear2023-04-3003032719core:WithinOneYear2024-04-3003032719core:WithinOneYear2023-04-3003032719core:BetweenTwoFiveYears2024-04-3003032719core:BetweenTwoFiveYears2023-04-3003032719bus:PrivateLimitedCompanyLtd2023-05-012024-04-3003032719bus:FRS1022023-05-012024-04-3003032719bus:Audited2023-05-012024-04-3003032719bus:FullAccounts2023-05-012024-04-30xbrli:purexbrli:sharesiso4217:GBP