Company Registration No. 11239466 (England and Wales)
CIRCLE WASTE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 JANUARY 2024
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
CIRCLE WASTE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 27
CIRCLE WASTE LIMITED
COMPANY INFORMATION
Directors
G R Wakeley
(Appointed 28 May 2024)
J T Sullivan
(Appointed 28 May 2024)
Company number
11239466
Registered office
Kelsall House
Stafford Court
Stafford Park 1
Telford
Shropshire
England
TF3 3BD
Auditor
TC Group
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
CIRCLE WASTE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

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

Fair review of the business

The 12-months period to 31 January 2024 witnessed significant growth and developments in the year of trading for the company, with turnover increasing by 2.8% (annualised growth) in the period across our commercial offerings. The directors are pleased with the performance and increase in revenue and profit.

 

Principal risks and uncertainties

 

Health and safety

The waste management and equipment hire sector involves the extensive use of vehicles and heavy equipment. The company does not operate any such equipment as all such activities are carried out by established suppliers subject to rigorous, ongoing audits and assessments. However, in the event of a failure in the application of safety procedures giving rise to injury, claims might arise against the Company and/or its directors. The Board and Management take Health and Safety very seriously and are focused on ensuring the highest possible level of safety at every site where the business operates or interacts.

 

Financial risk management objectives and policies

The main risks arising from the Company's operations are customer risk, credit risk, liquidity risk and interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below.

The Company made use of various financial instruments including cash, working capital facilities and various items, such as trade debtors and trade creditors that arise directly from its operations during the year. The main purpose of these financial instruments is to maintain finances for the Company's operations.

 

Customer risk

The Company enjoys a well-diversified client portfolio and follows a strategy of further diversification with some success. The loss of a key client contract could impact financial performance, but the Directors believe that whilst such risks may occur from time to time in the future, the business model remains well placed to react and mitigate any such risks.

 

Credit risk

The Company's principal financial assets are trade debtors. In order to manage credit risk, credit checks are carried out and are continually reviewed by the credit control team in conjunction with debt ageing and collection history. The directors ensure credit insurance is in place to cover all material customer credit risks.

 

Liquidity risk

The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Should short term liquidity issues occur the Company is now able to draw on the increased financial resources of being within a larger Group.

 

Interest rate risk

The Company’s interest-bearing assets include only cash balances which earn interest at variable rates.

 

Employees

The Company is an equal opportunity employer with a clear emphasis given to non-discrimination and non-harassment on the basis of ethnic origin, religion, gender, age, disability and sexual orientation. The Company gives disabled people the same consideration as other individuals. Matters which affect the Company are communicated to employees through formal and informal meetings, internal announcements and regular contact with directors and senior management.

CIRCLE WASTE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

Post balance sheet events

On 28th May 2024, the Company has been acquired by Reconomy (UK) Limited, the subsequent trading period, with a larger group structure offering the ability for further investment across the Company’s operations and financial systems positioning the business for a next phase of growth. Management are optimistic for the future and expect the Company will continue to grow.

 

Funding position

In addition to its own cash reserves, the Company has access to a £30 million revolving credit facility at competitive market terms through the Group bankers. The directors are confident that the funding position available to the Company is adequate to fund the Company's ongoing operational and growth requirements.

 

 

Key performance indicators

The company's key financial and other performance indicators during the period were as follows:

Unit
2024
2023 (18 Months)
Turnover
£
30,198,003
44,066,495
Gross Profit
£
7,445,607
10,014,388
Gross Profit Margin
%
24.7
22.7
Profit before tax
£
1,259,509
1,806,120

On behalf of the board

J T Sullivan
Director
30 October 2024
CIRCLE WASTE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of providing waste management services.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £390,000. The directors do not recommend payment of a further dividend.

Directors

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

C F Dear
(Resigned 28 May 2024)
M W Garwood
(Resigned 28 May 2024)
G R Wakeley
(Appointed 28 May 2024)
J T Sullivan
(Appointed 28 May 2024)
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.

Going concern

The directors have prepared a budget extending to 31 December 2024 supplemented by forecasts for the period to 31 December 2025, and believe that, with the bank facilities in place and the ongoing support of the Group's major shareholders, the Company can continue to operate as a going concern for a period of at least twelve months from the date of the financial statements.

On behalf of the board
J T Sullivan
Director
30 October 2024
CIRCLE WASTE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -

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.

CIRCLE WASTE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CIRCLE WASTE LIMITED
- 5 -
Opinion

We have audited the financial statements of Circle Waste Limited (the 'company') for the year ended 31 January 2024 which comprise the profit and loss account, 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 FRS 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.

CIRCLE WASTE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CIRCLE WASTE LIMITED
- 6 -

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.

CIRCLE WASTE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CIRCLE WASTE LIMITED
- 7 -

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/auditorsresponsibilities. This description forms part of our auditor's report.

CIRCLE WASTE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CIRCLE WASTE LIMITED
- 8 -

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.

John Grant (Senior Statutory Auditor)
For and on behalf of TC Group
31 October 2024
Office: Peterborough
CIRCLE WASTE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
1 August 2021
31 January 2024
to 31 January 2023
Notes
£
£
Turnover
3
30,198,003
44,066,495
Cost of sales
(22,752,396)
(34,052,107)
Gross profit
7,445,607
10,014,388
Administrative expenses
(6,126,447)
(8,106,927)
Operating profit
4
1,319,160
1,907,461
Interest payable and similar expenses
6
(59,651)
(101,341)
Profit before taxation
1,259,509
1,806,120
Tax on profit
7
(357,805)
(182,076)
Profit for the financial year
901,704
1,624,044

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

CIRCLE WASTE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
1 August 2021
31 January
to 31 January
2024
2023
£
£
Profit for the year
901,704
1,624,044
Other comprehensive income
-
-
Total comprehensive income for the year
901,704
1,624,044
CIRCLE WASTE LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
204,706
167,250
Tangible assets
10
887,724
1,058,905
1,092,430
1,226,155
Current assets
Debtors
11
4,780,693
4,960,021
Cash at bank and in hand
3,740,000
2,692,411
8,520,693
7,652,432
Creditors: amounts falling due within one year
12
(6,975,137)
(6,754,686)
Net current assets
1,545,556
897,746
Total assets less current liabilities
2,637,986
2,123,901
Creditors: amounts falling due after more than one year
13
(148,466)
(140,235)
Provisions for liabilities
Deferred tax liability
16
136,829
142,679
(136,829)
(142,679)
Net assets
2,352,691
1,840,987
Capital and reserves
Called up share capital
18
206
206
Profit and loss reserves
19
2,352,485
1,840,781
Total equity
2,352,691
1,840,987
The financial statements were approved by the board of directors and authorised for issue on 30 October 2024 and are signed on its behalf by:
J T Sullivan
Director
Company Registration No. 11239466
CIRCLE WASTE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2021
206
216,737
216,943
Period ended 31 January 2023:
Profit and total comprehensive income for the period
-
1,624,044
1,624,044
Balance at 31 January 2023
206
1,840,781
1,840,987
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
901,704
901,704
Dividends
8
-
(390,000)
(390,000)
Balance at 31 January 2024
206
2,352,485
2,352,691
CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
1
Accounting policies
Company information

Circle Waste Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kelsall House, Stafford Court, Stafford Park 1, Telford, Shropshire, England, TF3 3BD.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.4
Intangible fixed assets other than goodwill

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

 

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

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
20% straight line per annum
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:

Leasehold land and buildings
10% straight line per annum
Computers
20% straight line per annum
Motor vehicles
20% straight line per annum

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
Impairment of fixed assets

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

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

 

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

CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -

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

1.7
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.

1.8
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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

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 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 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.

CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
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.

 

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.

1.12
Retirement benefits

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

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.

CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.15

Reduced disclosures

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:

 

 

The financial statements of the company are consolidated in the financial statements of Winterberry Group Limited. These consolidated financial statements are available from its registered office, 9/10 The Crescent, Wisbech, Cambridgeshire, United Kingdom, PE13 1EH.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Waste management services
30,198,003
44,066,495

All turnover is derived within the United Kingdom.

CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
19,000
20,000
Depreciation of owned tangible fixed assets
219,037
273,560
Profit on disposal of tangible fixed assets
(370)
(1,627)
Amortisation of intangible assets
55,318
90,057
Operating lease charges
169,161
263,123
5
Employees

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

2024
2023
Number
Number
94
96

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,514,779
3,563,242
Social security costs
243,408
342,327
Pension costs
47,075
60,761
2,805,262
3,966,330
6
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
39,500
91,482
Other finance costs:
Interest on finance leases and hire purchase contracts
20,151
8,931
Other interest
-
0
928
59,651
101,341
CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
363,655
287,548
Adjustments in respect of prior periods
-
0
(111,344)
Total current tax
363,655
176,204
Deferred tax
Origination and reversal of timing differences
(5,850)
5,872
Total tax charge
357,805
182,076

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
1,259,509
1,806,120
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (: 19.00%)
314,877
343,163
Tax effect of expenses that are not deductible in determining taxable profit
15,002
(43,193)
Effect of change in corporation tax rate
14,371
-
0
Permanent capital allowances in excess of depreciation
13,555
(6,550)
Under/(over) provided in prior years
-
0
(111,344)
Taxation charge for the year
357,805
182,076
8
Dividends
2024
2023
£
£
Final paid
390,000
-
0
CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
9
Intangible fixed assets
Software
£
Cost
At 1 February 2023
257,307
Additions
92,774
At 31 January 2024
350,081
Amortisation and impairment
At 1 February 2023
90,057
Amortisation charged for the year
55,318
At 31 January 2024
145,375
Carrying amount
At 31 January 2024
204,706
At 31 January 2023
167,250
10
Tangible fixed assets
Leasehold land and buildings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 February 2023
644,929
570,672
197,531
1,413,132
Additions
4,535
2,117
56,000
62,652
Disposals
-
0
-
0
(22,194)
(22,194)
At 31 January 2024
649,464
572,789
231,337
1,453,590
Depreciation and impairment
At 1 February 2023
104,464
218,891
30,872
354,227
Depreciation charged in the year
64,833
108,449
45,755
219,037
Eliminated in respect of disposals
-
0
-
0
(7,398)
(7,398)
At 31 January 2024
169,297
327,340
69,229
565,866
Carrying amount
At 31 January 2024
480,167
245,449
162,108
887,724
At 31 January 2023
540,465
351,781
166,659
1,058,905
CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Tangible fixed assets
(Continued)
- 23 -

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

2024
2023
£
£
Assets held under finance leases and hire purchase contracts
196,456
203,861
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,286,305
2,959,414
Amounts owed by group undertakings
1,052,736
1,188,736
Other debtors
235,904
499,467
Prepayments and accrued income
205,748
312,404
4,780,693
4,960,021
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
10,000
10,000
Obligations under finance leases
15
47,224
59,218
Other borrowings
14
1,488,474
1,435,065
Trade creditors
3,246,629
3,951,647
Amounts owed to group undertakings
4,498
75,453
Corporation tax
363,655
24,499
Other taxation and social security
481,096
462,080
Other creditors
206,248
204
Accruals and deferred income
1,127,313
736,520
6,975,137
6,754,686
CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
13,333
25,289
Obligations under finance leases
15
135,133
114,946
148,466
140,235
14
Loans and overdrafts
2024
2023
£
£
Bank loans
23,333
35,289
Other loans
1,488,474
1,435,065
1,511,807
1,470,354
Payable within one year
1,498,474
1,445,065
Payable after one year
13,333
25,289

Other loans consist of an invoice discounting facility. Trade debtors are subject to an invoice discounting facility whereby an advance is received upon, and secured upon, trade debtors. The company has retained significant risks and rewards relating to the discounted debts and separate presentation has been adopted whereby the gross debt and a corresponding liability in respect of the advance received is shown separately on the Balance Sheet. The interest element of the invoice discounter's charge is recognised as it accrues and is included in the Profit and Loss Account.

15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
47,224
59,218
In two to five years
135,133
114,946
182,357
174,164

Obligations under finance lease and hire purchase contracts are secured against the assets concerned.

CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 25 -
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
136,829
142,679
2024
Movements in the year:
£
Liability at 1 February 2023
142,679
Credit to profit or loss
(5,850)
Liability at 31 January 2024
136,829
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
47,075
60,761

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.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
106
106
106
106
B Ordinary shares of £1 each
100
100
100
100
206
206
206
206
CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 26 -
19
Reserves

Share capital

Represents the nominal value of shares that have been issued.

 

Profit and loss account

Includes all current and prior period retained profits and losses.

 

20
Operating lease commitments
Lessee

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
138,833
131,333
Between two and five years
595,333
579,333
In over five years
440,458
491,292
1,174,624
1,201,958

The amount of non-cancellable operating lease payments recognised as an expense during the year was £128,261 (2023 - £49,750).

21
Related party transactions

In accordance with FRS 102 section 33.1A 'Related Party Disclosures', the company has applied the exemption from disclosing transactions and balances with fellow wholly owned group undertakings.

22
Events after the reporting date

On 28 May 2024, after the balance sheet date, Reconomy (UK) Limited acquired 100% of the share capital of Circle Waste Limited.

CIRCLE WASTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
23
Control

The company's immediate parent was Vision Corporate Services Group Limited (registered number 10573356), incorporated in England & Wales, upto 28 May 2024.

 

From 28 May 2024 the immediate parent company is Reconomy (UK) Limited (registered number 02951661), incorporated in England & Wales.

 

The ultimate parent company was Winterberry Group Limited (registered number 11372770), incorporated in England & Wales, upto 28 May 2024. The registered office of Winterberry Group Limited is 9/10 The Crescent, Wisbech, Cambs, United Kingdom, PE13 1EH. These consolidated statements are available from companies house.

 

From 28 May 2024, OS Phoenix Midco Limited (registered number 10877539) is the parent undertaking of the largest group for which group financial statements have been prepared. These consolidated financial statements are available from Companies House.

 

From 28 May 2024 the ultimate parent company is OS Phoenix Topco Limited, incorporated in Jersey. The registered office of OS Phoenix Topco Limited is 11-15 Seaton Place, St Helier, Jersey, JE4 0QH.

 

The ultimate controlling party was Christopher Dear upto 28 May 2024. From the 28 May 2024 the ultimate controlling party was EMK Capital LLP. The registered office of EMK Capital LLP is Lex House, 2nd Floor, 17 Connaught Place, London, W2 2ES).

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