Company registration number 08562073 (England and Wales)
BRASK AND CECE HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
BRASK AND CECE HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr D J Brask
Mr M R Cece
Mr D D Brask
Mr D J Brash
Company number
08562073
Registered office
2 Rough Hey Road
Grimsargh
Preston
PR2 5AR
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
BRASK AND CECE HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
BRASK AND CECE HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 31 January 2024.

Review of the business

The group's principal activities remain the same: the manufacture, rental, service and repair of waste handling equipment.

 

Since the acquisition of Pakawaste by its current CEO, David Hamer, and Brask and Cece Holdings Limited during 2013, the group has gone from strength to strength. Pakawaste continues to be led by David Hamer as CEO and the same management team remain in place.

 

System Rental

System Rental continues to thrive and finishes the year on year with an increased revenue stream and an increase in contracts. Client base remains mainly the same, blue-chip companies. The company's main strategy for the group is to continue to expand and increase rental contracts. Moving forward we can see significant growth within rental follow on from winning a substantial contract during mid 2023.

 

Kelpack Hire

Kelpack has again proven to be a steady and robust rental business with the support of the Pakawaste Group. The Pakawaste sales team has managed to supply new rental streams and maintain ongoing contracts. Pakawaste Manufacturing has manufactured / refurbished equipment to go on 3 and 5 year rentals and Pakawaste Engineering Services continues to service / repair and install all Kelpack equipment. Moving forward again we can see substantial growth within the rental division with willing a large corporate contract during mid 2023.

 

Pakawaste Engineering Services

Pakawaste Engineering Services has continued to hit expected turnover through extremely difficult times, examples being availability of qualified engineers and talent within the industry.

 

The sales position we started is slowly making a revenue difference and envisage this expanding during 2024/25.

 

Pakawaste Engineering’s financial year had many challenges and barriers to entry, mainly due to the lack of availability of qualified labour within the industry.

 

To combat this we are actively recruiting back room and external engineers and implementing a new internal system to be managed by a freshly recruited position.

 

Pakawaste Ltd

Pakawaste Ltd (the manufacturing division) has a substantially improved trading year. Revenue substantially up / profit substantially up.

 

With the new joint ventures / diversifying product and tighter controls and winning several more contracts Manufacturing has seen a positive impact with will continue in 2024 / 2025 / 2026.

 

Back room changes in administration and a positive recruitment campaign eased staffing issues within fabrication. Pakawaste Ltd still have and promote an active apprenticeship programme and will continue to invest in its core team.

 

BRASK AND CECE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Principal risks and uncertainties

The group's operations expose it to a variety of financial risks that include debt management risk, credit risk, liquidity risk and interest rate risk. The group has in place risk management systems that seek to limit any adverse effects on the financial performance of the group by continuously monitoring these risk areas.

 

Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the Board. The policies set by the board of directors are implemented by the group's finance department.

 

The directors will revisit the appropriateness of this policy should the group's operations change in size or nature

Going concern and current economic climate

Pakawaste Ltd have felt the external forces from the macroeconomic environment and found it very challenging. Lack of labour within the market has proven to be quite difficult in recruiting qualified fabricators and engineers.

 

Supply chains have put added pressure on manufacturing, with extended lead times and increased costs making it difficult to finish and invoice product at the correct gross margins. Transportation costs from Europe and a lack of drivers have forced inbound deliveries to increase in cost and become unreliable.

 

Moving forward Pakawaste have put in strong and robust measurements to eliminate / reduce any more “shocks” caused by the macroeconomic environment and will supply a reduced portfolio, concentrating on more profitable jobs and developing relationships with other industry specialists as part of its future route to market.

 

For the group's rental division, it is expected with the challenges in the current economy, that the rental businesses will develop and increase both in contacts and revenue. In return this will help the manufacturing division as opportunities for new work arise.

 

For the service division, 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.

 

In addition, all contractual loan repayments continue to be made and the Board consider there is adequate headroom on facilities, and that the group has the support of its shareholders if required.

 

Considering the measures implemented and following a review of the group's financial position, the directors are satisfied that the group and company will have adequate resources to continue to operate for the foreseeable future. As such the directors have concluded that it remains appropriate to prepare these financial statements on the going concern basis.

 

Key performance indicators

Turnover has increased by 36.7% for the year ended 31 January 2024 at £8.24m compared with £6.03m in the previous year. Gross profits have increased from £2.67m in the previous year to £3.04m for the year ended 31 January 2024.

 

The profit before tax of the group has increased from £0.26m in the previous year to £1.02m for the year ended 31 January 2024, however this includes £0.12m of exceptional charges in the prior year.

 

The directors consider the group performance to be positive, given the challenges faced.

BRASK AND CECE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

On behalf of the board

Mr D J Brask
Director
28 October 2024
BRASK AND CECE HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Principal activities

The company was incorporated on 10 June 2013 and its principal activity is that of a holding company. At the year end it held shares in Pakawaste Holdings Limited and Kelpack Hire Limited.

 

The group's principal activities remain the same: the manufacture, rental, service and repair of waste handling equipment.

Results and dividends

The results for the year are set out on page 10.

Minority shareholders of Pakawaste Holdings Limited and Kelpack Hire Limited received dividends amounting to £48,500. Brask and Cece Holdings Limited did not pay a dividend during the year and the directors do not recommend payment of a dividend.

Directors

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

Mr D J Brask
Mr M R Cece
Mr D D Brask
Mr D J Brash
Research and development

Pakawaste Limited continues to strive to make improvements in all of its products and the Group has an active design department employing a full time designer.

Future developments

Pakawaste's aim is to continue to grow and maintain its presence as a leading manufacturer by building new products and introducing a new product line within the next financial year.

 

As a group we are actively developing an export strategy and continue to develop existing export partnerships and are looking to form new relationships to expand the overseas customer portfolio.

Pakawaste's strategy will always be to increase market share and grow our rental businesses by using and offering different solutions/packages to the Waste Management Market.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

BRASK AND CECE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 5 -
On behalf of the board
Mr D J Brask
Director
28 October 2024
BRASK AND CECE HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BRASK AND CECE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRASK AND CECE HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of Brask and Cece Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

BRASK AND CECE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRASK AND CECE HOLDINGS 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:

 

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

Matters on which we are required to report by exception

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

BRASK AND CECE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRASK AND CECE HOLDINGS LIMITED
- 9 -

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Lee Van Houplines FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
29 October 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
BRASK AND CECE HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
8,239,500
6,025,841
Cost of sales
(4,835,330)
(3,356,521)
Gross profit
3,404,170
2,669,320
Distribution costs
(678,550)
(662,612)
Administrative expenses
(1,686,392)
(1,617,539)
Other operating income
5,255
35,497
Exceptional item
4
-
0
(117,000)
Operating profit
5
1,044,483
307,666
Interest receivable and similar income
7
2,558
1,332
Interest payable and similar expenses
8
(34,160)
(48,198)
Profit before taxation
1,012,881
260,800
Tax on profit
9
(285,521)
(78,290)
Profit for the financial year
727,360
182,510
Profit for the financial year is attributable to:
- Owners of the parent company
568,646
159,453
- Non-controlling interests
158,714
23,057
727,360
182,510
Total comprehensive income for the year is attributable to:
- Owners of the parent company
568,646
159,453
- Non-controlling interests
158,714
23,057
727,360
182,510

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

BRASK AND CECE HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
8,021
104,235
Tangible assets
11
3,167,583
2,985,628
3,175,604
3,089,863
Current assets
Stocks
14
590,283
563,192
Debtors
15
1,732,377
1,026,986
Cash at bank and in hand
571,226
550,697
2,893,886
2,140,875
Creditors: amounts falling due within one year
16
(2,423,774)
(1,592,245)
Net current assets
470,112
548,630
Total assets less current liabilities
3,645,716
3,638,493
Creditors: amounts falling due after more than one year
17
(155,448)
(821,039)
Provisions for liabilities
Deferred tax liability
20
449,914
455,960
(449,914)
(455,960)
Net assets
3,040,354
2,361,494
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
2,377,730
1,809,084
Equity attributable to owners of the parent company
2,377,830
1,809,184
Non-controlling interests
662,524
552,310
3,040,354
2,361,494
The financial statements were approved by the board of directors and authorised for issue on 28 October 2024 and are signed on its behalf by:
28 October 2024
Mr D J Brask
Mr M R Cece
Director
Director
Company registration number 08562073 (England and Wales)
BRASK AND CECE HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
3,476,498
3,476,498
Current assets
Debtors
15
5,299
19,589
Cash at bank and in hand
8,818
297
14,117
19,886
Creditors: amounts falling due within one year
16
(423,021)
(107,923)
Net current liabilities
(408,904)
(88,037)
Total assets less current liabilities
3,067,594
3,388,461
Creditors: amounts falling due after more than one year
17
-
(633,797)
Net assets
3,067,594
2,754,664
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
3,067,494
2,754,564
Total equity
3,067,594
2,754,664

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £312,930 (2023 - £371,250 profit).

The financial statements were approved by the board of directors and authorised for issue on 28 October 2024 and are signed on its behalf by:
28 October 2024
Mr D J Brask
Mr M R Cece
Director
Director
Company registration number 08562073 (England and Wales)
BRASK AND CECE HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 February 2022
100
1,649,631
1,649,731
589,553
2,239,284
Year ended 31 January 2023:
Profit and total comprehensive income
-
159,453
159,453
23,057
182,510
Dividends
-
-
-
(60,300)
(60,300)
Balance at 31 January 2023
100
1,809,084
1,809,184
552,310
2,361,494
Year ended 31 January 2024:
Profit and total comprehensive income
-
568,646
568,646
158,714
727,360
Dividends
-
-
-
(48,500)
(48,500)
Balance at 31 January 2024
100
2,377,730
2,377,830
662,524
3,040,354
BRASK AND CECE HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 February 2022
100
2,383,314
2,383,414
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
371,250
371,250
Balance at 31 January 2023
100
2,754,564
2,754,664
Year ended 31 January 2024:
Profit and total comprehensive income
-
312,930
312,930
Balance at 31 January 2024
100
3,067,494
3,067,594
BRASK AND CECE HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,386,876
1,203,234
Interest paid
(34,160)
(48,198)
Income taxes (paid)/refunded
(71,653)
8,706
Net cash inflow from operating activities
1,281,063
1,163,742
Investing activities
Purchase of tangible fixed assets
(970,477)
(619,044)
Proceeds from disposal of tangible fixed assets
66,775
116,879
Interest received
2,558
1,332
Net cash used in investing activities
(901,144)
(500,833)
Financing activities
Repayment of borrowings
(276,681)
(452,527)
Repayment of bank loans
-
(200,000)
Payment of finance leases obligations
(34,209)
(73,349)
Dividends paid to non-controlling interests
(48,500)
(60,300)
Net cash used in financing activities
(359,390)
(786,176)
Net increase/(decrease) in cash and cash equivalents
20,529
(123,267)
Cash and cash equivalents at beginning of year
550,697
673,964
Cash and cash equivalents at end of year
571,226
550,697
BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
1
Accounting policies
Company information

Brask and Cece Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 2 Rough Hey Road, Grimsargh, Preston, PR2 5AR.

 

The group consists of Brask and Cece Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Brask and Cece Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 January 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

1.4
Going concern

At the time of signing these financial statements the directors are continuing to respond to the business challenges currently being faced because of the current economic climate. The Board is meeting regularly, and 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.

 

Pakawaste Ltd have felt the external forces from the macroeconomic environment and found it very challenging. Lack of labour within the market has proven to be quite difficult in recruiting qualified fabricators and engineers.

 

Supply chains have put added pressure on manufacturing, with extended lead times and increased costs making it difficult to finish and invoice product at the correct gross margins. Transportation costs from Europe and a lack of drivers have forced inbound deliveries to increase in cost and become unreliable.

 

Moving forward Pakawaste have put in strong and robust measurements to eliminate / reduce any more “shocks” caused by the macroeconomic environment and will supply a reduced portfolio, concentrating on more profitable jobs and developing relationships with other industry specialists as part of its future route to market.

 

For the group's rental division, it is expected with the challenges in the current economy, that the rental businesses will develop and increase both in contacts and revenue. In return this will help the manufacturing division as opportunities for new work arise.

 

For the service division, 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.

 

In addition, all contractual loan repayments continue to be made and the Board consider there is adequate headroom on facilities, and that the group has the support of its shareholders if required.

 

Considering the measures implemented and following a review of the group's financial position, the directors are satisfied that the group and company will have adequate resources to continue to operate for the foreseeable future. As such the directors have concluded that it remains appropriate to prepare these financial statements on the going concern basis.

BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

 

Rental income is recognised on a straight line basis over the rental period.

 

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.

 

Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.

1.6
Intangible fixed assets - goodwill

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

1.7
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:

Freehold land and buildings
Not depreciated
Plant and machinery
15% with 10% residual value, 18% and 20% straight line
Motor vehicles
25% straight line

Depreciation has not been charged on the freehold building as the directors consider the estimated residual value of the property to be a significant proportion of the book value, such that the depreciation would be immaterial. The estimated residual value is expected to be high due to the group's policy of maintaining the property such that physical deterioration does not occur and the costs of such maintenance are charged in the year of incidence.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

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

BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -

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

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

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

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

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.10
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.

1.11
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are offset with cash and cash equivalents in accordance with the terms set out in the group bank facilities (see note 23).

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's and parent company's balance sheet when the group or parent company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 20 -
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

All the group and company's financial assets fall to be classed as basic financial assets and the group and company therefore have no other financial assets.

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group or parent 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.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors and loans, 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.

Other financial liabilities

All the group and company's financial liabilities fall to be classed as basic financial liabilities and the group and company therefore have no other financial liabilities.

BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's or parent company's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the parent company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
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.

1.16
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

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.

BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 22 -

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

1.18
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
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of tangible fixed assets and stock

At the end of the reporting period, management undertake an assessment of the net book values of tangible fixed assets and stock, based upon their knowledge of the customers and expected net realisable values. Where necessary, an impairment is recognised in the profit and loss account.

 

The actual net realisable value may differ from the estimated level of recovery.

Impairment of trade debtors

At each balance sheet date, management undertake an assessment of the recoverability of trade debtors based upon their knowledge of the customers, ageing of the balances outstanding and previous write off history. Where necessary, an impairment is recorded as a doubtful debt.

 

The actual level of debt collected may differ from the estimated level of recovery.

BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Amounts recoverable on contracts

At each balance sheet date, management review each contract individually based on the total contract value, the amounts invoiced up to the year end, the costs incurred up to the year end and the expected post year end costs to complete the contract.

 

Based upon the above information, management will estimate the expected profit on a contract and will include an element of profit on the contract at the year end by reference to the stage of completion of each contract at the balance sheet date.

 

The actual profit arising on a contract may differ from the estimate of profit at each balance sheet date.

Useful life of tangible fixed assets

The useful economic life and expected residual value of tangible fixed assets is assessed at the point of purchase. This is reviewed at the end of the reporting period, in conjunction with the impairment review, to determine whether the estimates are still appropriate.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Manufacturing
4,310,779
2,207,260
Rental
2,437,851
2,418,808
Repair and servicing
1,490,870
1,399,773
8,239,500
6,025,841
2024
2023
£
£
Turnover analysed by geographical market
UK
8,179,560
5,982,791
Overseas
59,940
43,050
8,239,500
6,025,841
2024
2023
£
£
Other revenue
Interest income
2,558
1,332
BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
4
Exceptional item
2024
2023
£
£
Expenditure
Deposit payment written off
-
117,000
-
117,000

The exceptional charge of £117,000 in the prior year related to a provision against a deposit that the company had paid in respect of a piece of plant and machinery. The supplier of the plant and machinery is in liquidation and therefore the directors provided for this amount in full.

5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
83,582
-
Fees payable to the group's auditor for the audit of the group's financial statements
30,725
29,575
Depreciation of owned tangible fixed assets
695,231
620,549
Depreciation of tangible fixed assets held under finance leases
39,365
46,634
Profit on disposal of tangible fixed assets
(12,849)
(24,140)
Amortisation of intangible assets
96,214
96,214
Stocks impairment losses recognised or reversed
6,817
13,642
Operating lease charges
11,307
11,855
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
29
32
-
-
Sales
5
6
-
-
Administration
16
16
-
-
Management
3
4
-
-
Total
53
58
-
0
-
0
BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,027,817
1,995,328
-
0
-
0
Social security costs
215,554
213,728
-
-
Pension costs
49,815
53,046
-
0
-
0
2,293,186
2,262,102
-
0
-
0
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,224
669
Other interest income
334
663
Total income
2,558
1,332
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
639
Other interest on financial liabilities
30,421
40,473
Interest on finance leases and hire purchase contracts
3,739
7,086
Total finance costs
34,160
48,198
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
297,794
76,439
Deferred tax
Origination and reversal of timing differences
(11,796)
1,405
Changes in tax rates
(476)
446
Adjustment in respect of prior periods
(1)
-
0
Total deferred tax
(12,273)
1,851
Total tax charge
285,521
78,290
BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
9
Taxation
(Continued)
- 26 -

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
1,012,881
260,800
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
243,395
49,552
Tax effect of expenses that are not deductible in determining taxable profit
31,414
40,394
Tax effect of income not taxable in determining taxable profit
-
0
(10,028)
Depreciation on assets not qualifying for tax allowances
866
686
Effect of change in deferred tax rate
(476)
446
Differences between capital allowances and depreciation
10,322
(2,760)
Taxation charge
285,521
78,290
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 February 2023 and 31 January 2024
962,143
Amortisation and impairment
At 1 February 2023
857,908
Amortisation charged for the year
96,214
At 31 January 2024
954,122
Carrying amount
At 31 January 2024
8,021
At 31 January 2023
104,235
The company had no intangible fixed assets at 31 January 2024 or 31 January 2023.
BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 February 2023
621,531
5,949,676
398,663
6,969,870
Additions
-
0
780,782
189,695
970,477
Disposals
-
0
(346,170)
(66,328)
(412,498)
At 31 January 2024
621,531
6,384,288
522,030
7,527,849
Depreciation and impairment
At 1 February 2023
-
0
3,740,712
243,530
3,984,242
Depreciation charged in the year
-
0
648,734
85,862
734,596
Eliminated in respect of disposals
-
0
(305,368)
(53,204)
(358,572)
At 31 January 2024
-
0
4,084,078
276,188
4,360,266
Carrying amount
At 31 January 2024
621,531
2,300,210
245,842
3,167,583
At 31 January 2023
621,531
2,208,964
155,133
2,985,628
The company had no tangible fixed assets at 31 January 2024 or 31 January 2023.

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and machinery
45,016
71,779
-
0
-
0
Motor vehicles
13,766
27,368
-
0
-
0
58,782
99,147
-
-
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
3,476,498
3,476,498
BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
12
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
3,476,498
Carrying amount
At 31 January 2024
3,476,498
At 31 January 2023
3,476,498
13
Subsidiaries

Details of the company's subsidiaries at 31 January 2024, all of whose registered offices are the same as this company, are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Kelpack Hire Limited
England and Wales
Ordinary
90.00
-
Pakawaste Holdings Limited
England and Wales
Ordinary
80.00
-
Pakawaste Limited
England and Wales
Ordinary
0
80.00
Pakwaste Engineering Services Limited
England and Wales
Ordinary
0
80.00
System Rental UK Limited
England and Wales
Ordinary
0
80.00

The investments in subsidiaries are all stated at cost.

14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
439,680
403,346
-
-
Work in progress
58,708
70,063
-
-
Finished goods and goods for resale
91,895
89,783
-
0
-
0
590,283
563,192
-
-
BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 29 -
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
822,047
526,861
-
0
-
0
Gross amounts owed by contract customers
542,263
295,843
-
0
-
0
Corporation tax recoverable
-
0
8,353
-
0
-
0
Amounts owed by group undertakings
-
-
5,299
19,589
Other debtors
1,117
1,117
-
0
-
0
Prepayments and accrued income
360,723
194,812
-
0
-
0
1,726,150
1,026,986
5,299
19,589
Deferred tax asset (note 20)
6,227
-
0
-
0
-
0
1,732,377
1,026,986
5,299
19,589
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
8,609
34,147
-
0
-
0
Other borrowings
18
531,342
151,103
423,021
105,641
Trade creditors
641,652
401,304
-
0
-
0
Corporation tax payable
294,227
76,439
-
0
-
0
Other taxation and social security
198,037
234,509
-
-
Other creditors
318,430
217,695
-
0
-
0
Accruals and deferred income
431,477
477,048
-
0
2,282
2,423,774
1,592,245
423,021
107,923
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
7,730
16,401
-
0
-
0
Other borrowings
18
147,718
804,638
-
0
633,797
155,448
821,039
-
633,797
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
211,283
-
211,283
BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 30 -
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
679,060
955,741
423,021
739,438
Payable within one year
531,342
151,103
423,021
105,641
Payable after one year
147,718
804,638
-
0
633,797

Other loans comprise loans provided by companies under common control. At the year end:

 

Both of these loans are unsecured.

 

Also included in this balance is the following:

19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
16,339
34,147
-
0
-
0
In two to five years
-
0
16,401
-
0
-
0
16,339
50,548
-
-

Finance lease payments represent rentals payable by the group for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 31 -
20
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
449,914
455,960
6,227
-
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
455,960
-
Credit to profit or loss
(12,273)
-
Liability at 31 January 2024
443,687
-

As at the signing date of these financial statements, the group has not finalised its capital expenditure programme for the forthcoming year and therefore an assessment as to the likely movement of accelerated capital allowances cannot be made.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
49,815
53,046

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

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 32 -
23
Financial commitments, guarantees and contingent liabilities

Four of the company's subsidiaries have 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.

24
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the group for certain of its properties.

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
3,897
10,192
-
-
Between two and five years
-
3,897
-
-
3,897
14,089
-
-
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
279,231
239,034
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales and recharges
Purchases and rent
2024
2023
2024
2023
£
£
£
£
Group
Companies under common control
294,892
247,822
4,694
113,459
BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
25
Related party transactions
(Continued)
- 33 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Companies under common control
3,050
-
Directors
20,939
11,524

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Companies under common control
332,621
9,239
Other information

The group and company have been provided with loans from companies under common control.

 

At 1 February 2023 £739,438 was owed to companies under common control.

 

During the year interest of £17,200 (2023: £26,481) was charged and £400,000 (2023: £402,000) of the capital was repaid to companies under common control during the year. One of the loans received from a company under common control is repayable in US Dollars. The loss on foreign exchange for the year ended 31 January 2024 was £83,582 (2023: £nil) which has been included in administrative expenses.

 

At 31 January 2024 a balance of £423,020 (inclusive of foreign exchange loss) is owed to companies under common control.

 

The group have also been provided with a loan from a company under common control. At 1 February 2023 £216,303 was owed to companies under common control. During the year, interest of £4,161 (2023: £6,468) was charged and £51,908 (2023: £50,527) of the capital was repaid, leaving a balance of £164,395 owed at 31 January 2024.

BRASK AND CECE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 34 -
26
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
727,360
182,510
Adjustments for:
Taxation charged
285,521
78,290
Finance costs
34,160
48,198
Investment income
(2,558)
(1,332)
Gain on disposal of tangible fixed assets
(12,849)
(24,140)
Amortisation and impairment of intangible assets
96,214
96,214
Depreciation and impairment of tangible fixed assets
734,596
667,183
Movements in working capital:
Increase in stocks
(27,091)
(20,335)
(Increase)/decrease in debtors
(707,517)
237,707
Increase/(decrease) in creditors
259,040
(61,061)
Cash generated from operations
1,386,876
1,203,234
27
Analysis of changes in net debt - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
550,697
20,529
571,226
Borrowings excluding overdrafts
(955,741)
276,681
(679,060)
Obligations under finance leases
(50,548)
34,209
(16,339)
(455,592)
331,419
(124,173)
2024-01-312023-02-01falseCCH SoftwareCCH Accounts Production 2024.200Mr D J BraskMr M R CeceMr D D BraskMr D J Brashfalsefalse08562073bus:Consolidated2023-02-012024-01-31085620732023-02-012024-01-3108562073bus:Director12023-02-012024-01-3108562073bus:Director22023-02-012024-01-3108562073bus:Director32023-02-012024-01-3108562073bus:Director42023-02-012024-01-3108562073bus:RegisteredOffice2023-02-012024-01-31085620732024-01-3108562073bus:Consolidated2024-01-3108562073bus:Consolidated2022-02-012023-01-3108562073core:Exceptionalbus:Consolidated12023-02-012024-01-3108562073core:Exceptionalbus:Consolidated12022-02-012023-01-31085620732022-02-012023-01-3108562073core:Goodwillbus:Consolidated2024-01-3108562073core:Goodwillbus:Consolidated2023-01-3108562073bus:Consolidated2023-01-3108562073core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2024-01-3108562073core:PlantMachinerybus:Consolidated2024-01-3108562073core:MotorVehiclesbus:Consolidated2024-01-3108562073core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-01-3108562073core:PlantMachinerybus:Consolidated2023-01-3108562073core:MotorVehiclesbus:Consolidated2023-01-31085620732023-01-3108562073core:ShareCapitalbus:Consolidated2024-01-3108562073core:ShareCapitalbus:Consolidated2023-01-3108562073core:ShareCapital2024-01-3108562073core:ShareCapital2023-01-3108562073core:RetainedEarningsAccumulatedLosses2024-01-3108562073core:ShareCapitalbus:Consolidated2022-01-31085620732022-01-3108562073core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-01-3108562073core:Non-controllingInterestsbus:Consolidated2023-01-3108562073core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-01-3108562073core:Non-controllingInterestsbus:Consolidated2024-01-3108562073core:ShareCapital2022-01-3108562073core:RetainedEarningsAccumulatedLosses2022-01-3108562073core:RetainedEarningsAccumulatedLosses2023-01-3108562073bus:Consolidated2022-01-3108562073core:Goodwill2023-02-012024-01-3108562073core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-012024-01-3108562073core:PlantMachinery2023-02-012024-01-3108562073core:MotorVehicles2023-02-012024-01-3108562073core:UKTaxbus:Consolidated2023-02-012024-01-3108562073core:UKTaxbus:Consolidated2022-02-012023-01-3108562073bus:Consolidated12023-02-012024-01-3108562073bus:Consolidated12022-02-012023-01-3108562073bus:Consolidated22023-02-012024-01-3108562073bus:Consolidated22022-02-012023-01-3108562073core:Goodwillbus:Consolidated2023-01-3108562073core:Goodwillbus:Consolidated2023-02-012024-01-3108562073core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-01-3108562073core:PlantMachinerybus:Consolidated2023-01-3108562073core:MotorVehiclesbus:Consolidated2023-01-3108562073bus:Consolidated2023-01-3108562073core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-02-012024-01-3108562073core:PlantMachinerybus:Consolidated2023-02-012024-01-3108562073core:MotorVehiclesbus:Consolidated2023-02-012024-01-3108562073core:PlantMachinery2024-01-3108562073core:PlantMachinery2023-01-3108562073core:MotorVehicles2024-01-3108562073core:MotorVehicles2023-01-3108562073core:Subsidiary12023-02-012024-01-3108562073core:Subsidiary22023-02-012024-01-3108562073core:Subsidiary32023-02-012024-01-3108562073core:Subsidiary42023-02-012024-01-3108562073core:Subsidiary52023-02-012024-01-3108562073core:Subsidiary112023-02-012024-01-3108562073core:Subsidiary212023-02-012024-01-310856207312023-02-012024-01-3108562073core:Subsidiary312023-02-012024-01-3108562073core:Subsidiary412023-02-012024-01-3108562073core:Subsidiary512023-02-012024-01-3108562073core:CurrentFinancialInstrumentsbus:Consolidated2024-01-3108562073core:CurrentFinancialInstrumentsbus:Consolidated2023-01-3108562073core:CurrentFinancialInstruments2024-01-3108562073core:CurrentFinancialInstruments2023-01-3108562073core:Non-currentFinancialInstrumentsbus:Consolidated2024-01-3108562073core:Non-currentFinancialInstrumentsbus:Consolidated2023-01-3108562073core:Non-currentFinancialInstruments2024-01-3108562073core:Non-currentFinancialInstruments2023-01-3108562073core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-01-3108562073core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-01-3108562073core:CurrentFinancialInstrumentscore:WithinOneYear2024-01-3108562073core:CurrentFinancialInstrumentscore:WithinOneYear2023-01-3108562073core:WithinOneYearbus:Consolidated2024-01-3108562073core:WithinOneYearbus:Consolidated2023-01-3108562073core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-01-3108562073core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-01-3108562073core:Non-currentFinancialInstrumentscore:AfterOneYear2024-01-3108562073core:Non-currentFinancialInstrumentscore:AfterOneYear2023-01-3108562073core:WithinOneYear2024-01-3108562073core:WithinOneYear2023-01-3108562073core:BetweenTwoFiveYearsbus:Consolidated2024-01-3108562073core:BetweenTwoFiveYearsbus:Consolidated2023-01-3108562073core:BetweenTwoFiveYears2024-01-3108562073core:BetweenTwoFiveYears2023-01-3108562073bus:PrivateLimitedCompanyLtd2023-02-012024-01-3108562073bus:FRS1022023-02-012024-01-3108562073bus:Audited2023-02-012024-01-3108562073bus:ConsolidatedGroupCompanyAccounts2023-02-012024-01-3108562073bus:FullAccounts2023-02-012024-01-31xbrli:purexbrli:sharesiso4217:GBP