Company registration number 02568736 (England and Wales)
PAKAWASTE ENGINEERING SERVICES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
PAGES FOR FILING WITH REGISTRAR
PAKAWASTE ENGINEERING SERVICES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
PAKAWASTE ENGINEERING SERVICES LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
180,015
100,816
Current assets
Stocks
90,407
90,833
Debtors
4
440,936
468,146
Cash at bank and in hand
239,687
194,289
771,030
753,268
Creditors: amounts falling due within one year
5
(209,116)
(222,534)
Net current assets
561,914
530,734
Total assets less current liabilities
741,929
631,550
Creditors: amounts falling due after more than one year
6
(28,785)
(2,772)
Provisions for liabilities
(25,539)
(13,148)
Net assets
687,605
615,630
Capital and reserves
Called up share capital
7
400
400
Profit and loss reserves
687,205
615,230
Total equity
687,605
615,630
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 28 October 2024
Mr D R Hamer
Director
Company registration number 02568736 (England and Wales)
PAKAWASTE ENGINEERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
1
Accounting policies
Company information
Pakawaste Engineering Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Rough Hey Road, Grimsargh, Preston, PR2 5AR.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of signing these financial statements the director is continuing to respond to the business challenges currently being faced because of the current economic climate. The management team are reviewing operational, HR and financial impacts on a regular basis and are taking appropriate corrective actions to protect the business, whilst the finance team continue to monitor cash flow closely.true
Lack of labour and supply chain will continue to throw up extra challenges. However, with our new rigorous in-house training this will be significantly reduced. If the current trading environment remains challenging, this will be beneficial to the service division as more clients look to keep older products which will result in more service and repair work.
Considering the measures implemented and following a review of the company's financial position, the director is satisfied that the company will have adequate resources to continue to operate for the foreseeable future. As such the director has concluded that it remains appropriate to prepare these financial statements on the going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue is recognised when the service has been carried out, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
20% straight line
Motor vehicles
25% straight line
PAKAWASTE ENGINEERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 3 -
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.
1.5
Impairment of fixed assets
At each reporting end date, the company reviews the carrying amounts of its tangible 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).
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 is estimated to be less than its carrying amount, the carrying amount of the asset 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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include deposits held at call with banks.
1.8
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 trade 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.
PAKAWASTE ENGINEERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 4 -
Impairment of financial assets
Financial assets 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.
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 trade creditors, 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 receipts 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
Deferred tax assets are only provided to the extent it is expected that there will be future taxable profits against which the asset will be relieved.
PAKAWASTE ENGINEERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 5 -
1.11
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.
1.12
Retirement benefits
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
1.13
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.
1.14
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
17
16
PAKAWASTE ENGINEERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 February 2023
295,305
Additions
136,744
Disposals
(18,079)
At 31 January 2024
413,970
Depreciation and impairment
At 1 February 2023
194,489
Depreciation charged in the year
57,545
Eliminated in respect of disposals
(18,079)
At 31 January 2024
233,955
Carrying amount
At 31 January 2024
180,015
At 31 January 2023
100,816
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
256,223
185,201
Amounts owed by group undertakings
146,343
231,261
Other debtors
38,370
51,684
440,936
468,146
5
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
45,101
63,127
Taxation and social security
75,376
52,683
Other creditors
88,639
106,724
209,116
222,534
Included within other creditors are amounts payable under finance leases and hire purchase contracts of £2,762 (2023: £15,461) which are secured by fixed charges on the relevant assets. Also included within other creditors are other loans of £62,859 (2023: nil), £41,920 (2023: nil) of these loans are secured by fixed charges on the relevant assets.
PAKAWASTE ENGINEERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
28,785
2,772
Included within other creditors are amounts payable under finance leases and hire purchase contracts of £nil (2023: £2,772) which are secured by fixed charges on the relevant assets. Also included within other creditors are other loans of £28,785 (2023: nil) which are secured by fixed charges on the relevant assets.
7
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
400
400
400
400
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Lee Van Houplines FCA
Statutory Auditor:
MHA
9
Financial commitments, guarantees and contingent liabilities
The company has entered into an unlimited Inter-Company Guarantee dated 18 June 2021 (the “Agreement”), which is held as security for the Group bank facilities. Each participating related company (Pakawaste Limited, Pakawaste Engineering Services Limited, System Rental UK Limited and Kelpack Hire Limited) has provided a guarantee to Clydesdale Bank Plc. Under the terms of the Agreement, Clydesdale Bank Plc is authorised to allow set-off for interest purposes and in certain circumstances to seize credit balances and apply them in reduction of liabilities including debit balances within the Composite Accounting System. The maximum potential liability arising under this guarantee at the year end was £nil (2023: £nil).
The Group bank facilities are also secured by debentures in all of the above participating companies.
PAKAWASTE ENGINEERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
3,897
14,089
11
Related party transactions
In accordance with FRS 102 Section 1AC.35, exemption has been taken from disclosing any transactions with the parent and fellow subsidiary undertakings.
12
Parent company
The company is a wholly owned subsidiary of Pakawaste Holdings Limited, a company registered in England and Wales. The registered office of Pakawaste Holdings is Rough Hey Road, Grimsargh, Preston, Lancashire, PR2 5AR
The ultimate parent company is Brask and Cece Holdings Limited, a company registered in England and Wales. The registered office of Brask and Cece Holdings Limited is 2 Rough Hey Road, Grimsargh, Preston, PR2 5AR.
The largest and smallest group in which the results of the company are consolidated is that headed by Brask and Cece Holdings Limited. The consolidated financial statements of this group are available to the public and may be obtained from Companies House, Cardiff or its registered office.