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REGISTERED NUMBER: 00860123 (England and Wales)
















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 June 2024

for

Ellgia Limited

Ellgia Limited (Registered number: 00860123)






Contents of the Financial Statements
for the Year Ended 30 June 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


Ellgia Limited

Company Information
for the Year Ended 30 June 2024







DIRECTORS: J R Lavington
N K Amonoo
D J Chamberlain
D C Palmer-Jones





REGISTERED OFFICE: Unit 7
Lancaster Way Business Park
Ely
Cambridgeshire
CB6 3NW





REGISTERED NUMBER: 00860123 (England and Wales)





AUDITORS: Hardcastle Burton LLP
Lake House
Market Hill
Royston
Hertfordshire
SG8 9JN

Ellgia Limited (Registered number: 00860123)

Strategic Report
for the Year Ended 30 June 2024

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

REVIEW OF BUSINESS
The year ended 30 June 2024 was in line with expectations. Further site development has taken place during the year to centralise systems and make all of our sites operate efficiently and as environmentally friendly as possible.

The key performance indicators monitored by the directors are those that best demonstrate the financial performance and strength of the company.

The key financial highlights are as follows:

2024 2023
£'000 £'000
Turnover 32,039 28,268
Gross profit 7,916 6,234
Net profit 1,459 1,316
Gross assets 18,356 20,601
Net assets 10,748 13,374

The company has been trading strongly during the year. Levels of recyclate have increased due to improved extraction rates which has been helped by significant investment in new equipment. This has had the added benefit of reducing disposal cost and therefore improved financial performance.

The company also carried out a full cost revenue analysis of the waste collection methodology and was able to initiate considerable cost savings based on consolidation and rationalisation.

PRINCIPAL RISKS AND UNCERTAINTIES
During the course of its business the company is exposed to relatively low levels of financial risks. Main risks include, but are not limited to the failure to comply with legislative and regulatory requirements such as Health and Safety and those imposed by the Environment Agency. The company implements a rigorous health and safety management system which is routinely monitored and improved, to mitigate the risk to the company.

The company has been trading at regular capacity during the year and has been able to take advantage of increase in some commodity prices, a general contraction of competitor base within some of the geographical areas the company operates in and long term offtake disposal contracts with fixed or no price escalators.

FUTURE DEVELOPMENTS
The Board has a strategy of growth for the company through expansion within existing markets and new areas when opportunities arise. The Board will continue to invest capital funds into site improvements, processing equipment and front-end vehicles in Ely, Boston, Scunthorpe and Prickwillow during the year to 30 June 2024, with a view to expand processing capacity, drive efficiencies and value for money strategies.


Ellgia Limited (Registered number: 00860123)

Strategic Report
for the Year Ended 30 June 2024

FINANCIAL RISK MANAGEMENT
The company uses various financial instruments including invoice finance facilities, operating leases and hire purchase agreements, as well as trade debtors and trade creditors risk management. The main risks from the company's financial instruments are interest rate risk and credit risk. The directors review and agree policies for managing these risks.

Credit risk - This is the risk associated with trade debtors. The directors mitigate this risk by ensuring procedures are in place to limit credit facilities to customers based on credit searches and trading history. In addition to this the company has a dedicated commercial risk department that reviews trade debtors on a weekly basis to ensure no commercial transactions are done to a bad credit risk.

Workforce risk - Our workforce remains stable and committed despite challenges within the UK employment market as a result of labour shortages. The company has engaged in employee surveys and launched a Corporate Core Visions and Values programme to ensure alignment of all employees and colleagues. The company has overcome these challenges through the use of modernisation of its processes, limiting the manual labour requirements on their sites and offering driver training programmes in order to minimise impact from lack of haulage drivers.

ON BEHALF OF THE BOARD:





J R Lavington - Director


20 December 2024

Ellgia Limited (Registered number: 00860123)

Report of the Directors
for the Year Ended 30 June 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of waste management.

DIVIDENDS
An interim dividend of £2,917.86 per share was paid on 30 September 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 June 2024 will be £ 4,085,000 .

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

J R Lavington
N K Amonoo

Other changes in directors holding office are as follows:

S R Crook - resigned 19 April 2024
D J Chamberlain - appointed 19 April 2024
D C Palmer-Jones - appointed 19 April 2024

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report. It has done so in respect of principal risks and uncertainties.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Ellgia Limited (Registered number: 00860123)

Report of the Directors
for the Year Ended 30 June 2024


AUDITORS
The auditors, Hardcastle Burton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J R Lavington - Director


20 December 2024

Report of the Independent Auditors to the Members of
Ellgia Limited

Opinion
We have audited the financial statements of Ellgia Limited (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Ellgia Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach was as follows:-

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company. We determined that the reporting frameworks directly relevant to the financial statements are FRS 102, Companies Act 2006 and the relevant tax compliance regulations in the company's jurisdiction.

We had a discussion with management to obtain an understanding of the controls in place with regards to the compliance of relevant frameworks. We corroborated this during our fieldwork by reviewing the company's board minutes and carrying out walkthroughs to ensure that the controls in place were effective.

At the planning stage, we carried out a risk assessment on the company's susceptivity to a material misstatement. Our risk assessment included a review of systems and controls in place and how fraud might occur. We devised specific substantive tests to combat potential areas of fraud. Our procedures involved manual journal testing, with a particular focus on the journals around the year end to ensure cut off.

We designed audit procedures to investigate whether any non-compliance with relevant laws and regulations described above occurred during or after the year. This included enquiries with management which were corroborated with a review of the related nominal ledger and board minutes.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Ellgia Limited


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 a Report of the Auditors 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.




Denise Lindsell FCA (Senior Statutory Auditor)
for and on behalf of Hardcastle Burton LLP
Lake House
Market Hill
Royston
Hertfordshire
SG8 9JN

6 January 2025

Ellgia Limited (Registered number: 00860123)

Income Statement
for the Year Ended 30 June 2024

30.6.24 30.6.23
Notes £    £   

TURNOVER 3 32,038,775 28,267,751

Cost of sales 24,122,811 22,033,292
GROSS PROFIT 7,915,964 6,234,459

Administrative expenses 5,551,813 5,044,742
OPERATING PROFIT 5 2,364,151 1,189,717

Interest receivable and similar income - 12,469
2,364,151 1,202,186

Interest payable and similar expenses 7 270,451 83,796
PROFIT BEFORE TAXATION 2,093,700 1,118,390

Tax on profit 8 634,224 (197,172 )
PROFIT FOR THE FINANCIAL YEAR 1,459,476 1,315,562

Ellgia Limited (Registered number: 00860123)

Other Comprehensive Income
for the Year Ended 30 June 2024

30.6.24 30.6.23
Notes £    £   

PROFIT FOR THE YEAR 1,459,476 1,315,562


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,459,476

1,315,562

Ellgia Limited (Registered number: 00860123)

Balance Sheet
30 June 2024

30.6.24 30.6.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 327,509 187,549
Tangible assets 11 10,060,902 8,695,720
Investments 12 1,802 1,802
10,390,213 8,885,071

CURRENT ASSETS
Stocks 13 167,462 137,668
Debtors 14 7,229,362 10,849,227
Cash at bank 569,169 728,659
7,965,993 11,715,554
CREDITORS
Amounts falling due within one year 15 6,371,112 5,049,183
NET CURRENT ASSETS 1,594,881 6,666,371
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,985,094

15,551,442

CREDITORS
Amounts falling due after more than one
year

16

-

(1,333,718

)

PROVISIONS FOR LIABILITIES 19 (1,236,804 ) (843,910 )
NET ASSETS 10,748,290 13,373,814

CAPITAL AND RESERVES
Called up share capital 20 1,400 1,400
Revaluation reserve 21 257,977 257,977
Capital redemption reserve 21 600 600
Retained earnings 21 10,488,313 13,113,837
SHAREHOLDERS' FUNDS 10,748,290 13,373,814

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2024 and were signed on its behalf by:





J R Lavington - Director


Ellgia Limited (Registered number: 00860123)

Statement of Changes in Equity
for the Year Ended 30 June 2024

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1 July 2022 1,400 11,798,275 257,977 600 12,058,252

Changes in equity
Total comprehensive income - 1,315,562 - - 1,315,562
Balance at 30 June 2023 1,400 13,113,837 257,977 600 13,373,814

Changes in equity
Dividends - (4,085,000 ) - - (4,085,000 )
Total comprehensive income - 1,459,476 - - 1,459,476
Balance at 30 June 2024 1,400 10,488,313 257,977 600 10,748,290

Ellgia Limited (Registered number: 00860123)

Cash Flow Statement
for the Year Ended 30 June 2024

30.6.24 30.6.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 9,481,538 2,463,185
Interest paid (1,307 ) (6,250 )
Interest element of hire purchase payments
paid

(269,144

)

(77,546

)
Tax paid (404,109 ) 320,117
Net cash from operating activities 8,806,978 2,699,506

Cash flows from investing activities
Purchase of intangible fixed assets (204,915 ) (33,750 )
Purchase of tangible fixed assets (3,131,635 ) (2,471,654 )
Sale of tangible fixed assets 31,718 66,581
Interest received - 12,469
Net cash from investing activities (3,304,832 ) (2,426,354 )

Cash flows from financing activities
New HP loans in year 1,374,523 1,189,480
Capital HP repayments in year (3,259,361 ) (689,715 )
Amount repaid by directors 309,412 -
Amount paid to directors (1,210 ) (811,407 )
Equity dividends paid (4,085,000 ) -
Net cash from financing activities (5,661,636 ) (311,642 )

Decrease in cash and cash equivalents (159,490 ) (38,490 )
Cash and cash equivalents at beginning of
year

2

728,659

767,149

Cash and cash equivalents at end of year 2 569,169 728,659

Ellgia Limited (Registered number: 00860123)

Notes to the Cash Flow Statement
for the Year Ended 30 June 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

30.6.24 30.6.23
£    £   
Profit before taxation 2,093,700 1,118,390
Depreciation charges 1,782,533 1,585,311
Loss/(profit) on disposal of fixed assets 17,157 (31,045 )
Finance costs 270,451 83,796
Finance income - (12,469 )
4,163,841 2,743,983
(Increase)/decrease in stocks (29,794 ) 81,015
Decrease in trade and other debtors 3,394,508 180,540
Increase/(decrease) in trade and other creditors 1,952,983 (542,353 )
Cash generated from operations 9,481,538 2,463,185

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 June 2024
30.6.24 1.7.23
£    £   
Cash and cash equivalents 569,169 728,659
Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 728,659 767,149


3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.7.23 Cash flow At 30.6.24
£    £    £   
Net cash
Cash at bank 728,659 (159,490 ) 569,169
728,659 (159,490 ) 569,169
Debt
Finance leases (1,884,838 ) 1,884,838 -
(1,884,838 ) 1,884,838 -
Total (1,156,179 ) 1,725,348 569,169

Ellgia Limited (Registered number: 00860123)

Notes to the Financial Statements
for the Year Ended 30 June 2024

1. STATUTORY INFORMATION

Ellgia Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

These financial statements are prepared in sterling which is the functional currency of the company. Monetary items are rounded to the nearest £1.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirement of paragraph 33.7.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions which impact on the reported amounts of assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of estimation means that actual outcomes could differ from those estimates. The judgements and estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the financial statements are as follows:

Unprocessed waste accrual
Management makes an estimate for the costs to process waste held on site. The accrual is based on management's estimate of the amount of waste in tonnes held on site, multiplied by the estimated cost per tonne to process.

Depreciation of fixed assets
The annual depreciation charge for all assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised to the extent that it is probable that economic benefits will flow to the company and can be measured reliably.

Goodwill
When the fair value of the consideration for an acquired business exceeds the fair value of its separable net assets the difference is treated as purchased goodwill and is capitalised and amortised through the income statement over its economic life. The estimated life of goodwill for the various business' acquired is between 7 and 10 years.

Goodwill is reviewed for impairment at the end of the first full financial year following the acquisition and in the other periods if events or changes in circumstances indicate that carrying value may not be recoverable.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of ten years.

Ellgia Limited (Registered number: 00860123)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter.


Freehold land and building- Freehold land is not depreciated, building depreciated at 5% straight line
Improvement to property- Straight line over 20 years
Plant and machinery- Straight line over 10 years
Fixtures and fittings- Straight line over 7 years
Motor vehicles- Straight line over 5 years


The company complied with paragraph 35.10 (d) of FRS 102 upon transition to FRS 102 which allowed certain revalued properties to be held on the balance sheet at deemed cost. Deemed cost is defined by an amount used as surrogate for cost of depreciated cost at the date of transition to FRS 102. Subsequent depreciation assumes that the entity had initially recognised the asset or liability at the given date and that its cost was equal to the deemed cost.

The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets
Basic financial assets, which include debtors, 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.

Basic financial liabilities
Basic financial liabilities, including creditors and loans 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.

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Ellgia Limited (Registered number: 00860123)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Investments
Investments are recognised initially at the transaction price. At the end of each reporting period the investments are measured at fair value with the gain or loss on revaluation being charged to the income statement.

If a reliable measure of fair value is no longer available for an asset measured at fair value, its carrying amount at the last date the asset was reliably measurable becomes its new cost. Annual impairment reviews are performed for all investments where a reliable measure of fair value is not available.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

30.6.24 30.6.23
£    £   
Collections 20,430,724 18,437,333
Recyclates 5,535,867 5,344,068
Tipping 4,008,125 2,749,130
Other 2,064,059 1,737,220
32,038,775 28,267,751

Ellgia Limited (Registered number: 00860123)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

4. EMPLOYEES AND DIRECTORS
30.6.24 30.6.23
£    £   
Wages and salaries 5,923,055 5,533,798
Social security costs 655,054 587,485
Other pension costs 122,133 162,771
6,700,242 6,284,054

The average number of employees during the year was as follows:
30.6.24 30.6.23

Directors 3 3
Other staff 150 143
153 146

30.6.24 30.6.23
£    £   
Directors' remuneration 478,728 426,597
Directors' pension contributions to money purchase schemes 3,743 3,963

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

Information regarding the highest paid director is as follows:
30.6.24 30.6.23
£    £   
Emoluments etc 224,569 198,932
Pension contributions to money purchase schemes 1,321 1,321

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.6.24 30.6.23
£    £   
Hire of plant and machinery 620,636 582,860
Other operating leases 202,755 206,083
Depreciation - owned assets 1,397,940 1,090,010
Depreciation - assets on hire purchase contracts 319,638 398,349
Loss/(profit) on disposal of fixed assets 17,157 (31,045 )
Goodwill amortisation 55,006 96,671
Computer software amortisation 9,949 281
Auditors' remuneration 37,808 27,305

6. EXCEPTIONAL ITEMS
30.6.24 30.6.23
£    £   
Exceptional items (172,658 ) -

Ellgia Limited (Registered number: 00860123)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

Included as an exceptional item is £172,658 of costs associated with the early settlement of hire purchase liabilities which are not expected to be repeated in future periods.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
30.6.24 30.6.23
£    £   
Bank interest 1,307 -
Interest to related parties - 6,250
Hire purchase 96,486 77,546
Exceptional items 172,658 -
270,451 83,796

8. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
30.6.24 30.6.23
£    £   
Current tax:
UK corporation tax 241,330 -
Adjustment to previous periods - (455,807 )
Total current tax 241,330 (455,807 )

Deferred tax 392,894 258,635
Tax on profit 634,224 (197,172 )

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

30.6.24 30.6.23
£    £   
Profit before tax 2,093,700 1,118,390
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 20.500%)

523,425

229,270

Effects of:
Expenses not deductible for tax purposes 62,286 20,844
Adjustments to tax charge in respect of previous periods 39,030 (455,807 )
Group relief (23,215 ) -
Super deduction - (65,329 )
Depreciation on assets ineligible for Capital allowances 32,698 26,776
Change in deferred tax rate - 47,074
Total tax charge/(credit) 634,224 (197,172 )

As at 30 June 2024 the company had taxable trading losses carried forward of £Nil (2023: £21,205) available to utilise against future trading losses.

Ellgia Limited (Registered number: 00860123)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

9. DIVIDENDS
30.6.24 30.6.23
£    £   
Ordinary shares shares of £1 each
Interim 4,085,000 -

10. INTANGIBLE FIXED ASSETS
Computer
Goodwill software Totals
£    £    £   
COST
At 1 July 2023 1,055,127 33,750 1,088,877
Additions 125,000 79,915 204,915
At 30 June 2024 1,180,127 113,665 1,293,792
AMORTISATION
At 1 July 2023 901,047 281 901,328
Amortisation for year 55,006 9,949 64,955
At 30 June 2024 956,053 10,230 966,283
NET BOOK VALUE
At 30 June 2024 224,074 103,435 327,509
At 30 June 2023 154,080 33,469 187,549

11. TANGIBLE FIXED ASSETS
Freehold Improvements
land and to Plant and
buildings property machinery
£    £    £   
COST
At 1 July 2023 3,403,755 162,152 13,749,986
Additions 637,654 - 1,016,329
Disposals - - (18,750 )
At 30 June 2024 4,041,409 162,152 14,747,565
DEPRECIATION
At 1 July 2023 978,436 107,082 9,146,123
Charge for year 159,654 8,004 984,152
Eliminated on disposal - - (5,422 )
At 30 June 2024 1,138,090 115,086 10,124,853
NET BOOK VALUE
At 30 June 2024 2,903,319 47,066 4,622,712
At 30 June 2023 2,425,319 55,070 4,603,863

Ellgia Limited (Registered number: 00860123)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

11. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 July 2023 419,659 4,059,808 21,795,360
Additions 19,820 1,457,832 3,131,635
Disposals - (42,656 ) (61,406 )
At 30 June 2024 439,479 5,474,984 24,865,589
DEPRECIATION
At 1 July 2023 291,600 2,576,399 13,099,640
Charge for year 37,779 527,989 1,717,578
Eliminated on disposal - (7,109 ) (12,531 )
At 30 June 2024 329,379 3,097,279 14,804,687
NET BOOK VALUE
At 30 June 2024 110,100 2,377,705 10,060,902
At 30 June 2023 128,059 1,483,409 8,695,720

The company complied with paragraph 35.10 (d) of FRS 102 upon transition to FRS 102 which allowed certain revalued properties to be held on the balance sheet at deemed cost. At the year end date the historical cost of the properties held at deemed cost were £422,449 (2023: £422,449). The historical accumulated depreciation arising on the properties would have been £422,449 (2023: £411,889). No deferred tax liability on the revaluation has been recognised on the basis that after indexation allowance the liability would be immaterial.

Included within the net book value of tangible fixed assets is £Nil (2023: £1,999,711) in respect of assets held under hire purchase contracts. All hire purchase agreements were settled in full during the year. Depreciation charged for the year on the assets whilst on hire purchase was £319,638 (2023: £398,349).

12. FIXED ASSET INVESTMENTS
Investments
£   
COST
At 1 July 2023
and 30 June 2024 1,802
NET BOOK VALUE
At 30 June 2024 1,802
At 30 June 2023 1,802

13. STOCKS
30.6.24 30.6.23
£    £   
Stocks 167,462 137,668

Ellgia Limited (Registered number: 00860123)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade debtors 4,698,379 4,211,225
Amounts owed by group undertakings 1,442,709 5,527,232
Other debtors - 68,895
Directors' loan accounts - 309,412
Tax 188,074 104,019
Prepayments 900,200 628,444
7,229,362 10,849,227

Included in trade debtors is an invoice financing facility amounting to £4,242 (2023: £663,577).

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Hire purchase contracts (see note 17) - 551,120
Trade creditors 3,355,461 2,669,874
Amounts owed to group undertakings 1,738,500 -
Tax - 78,724
Social security and other taxes 150,602 149,981
VAT 348,704 426,506
Other creditors 13,669 13,733
Directors' loan accounts - 1,210
Accruals and deferred income 764,176 1,158,035
6,371,112 5,049,183

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.6.24 30.6.23
£    £   
Hire purchase contracts (see note 17) - 1,333,718

All hire purchase agreements were settled in full during the year. Early settlement charges of £172,658 are included in the profit and loss account within exceptional items - see note 6.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
30.6.24 30.6.23
£    £   
Net obligations repayable:
Within one year - 551,120
Between one and five years - 1,333,718
- 1,884,838

Ellgia Limited (Registered number: 00860123)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

17. LEASING AGREEMENTS - continued

Non-cancellable operating leases
30.6.24 30.6.23
£    £   
Within one year 162,324 162,324
Between one and five years 336,062 498,385
498,386 660,709

18. SECURED DEBTS

On 10 December 2019 a fixed and floating charge was created over the assets of the company in relation to all debts due to HSBC at any point in time. This charge is registered with Companies House under reference 0086 0123 0017. The charge was satisfied on 01 May 2024.

On 27 December 2019 an Unlimited Multilateral Guarantee was given by the company, Ellgia Recycling Limited and Ellgia Holdings Limited over any of the HSBC bank accounts and any future loans due to HSBC.

On 22 January 2020 a fixed and floating charge was created over the assets of the company in relation to all debts incurred by the company at any point in time. This charge is registered with Companies House under reference 0086 0123 0018. The charge was satisfied on 01 May 2024.

On 04 January 2021 a charge was assigned to HSBC securing contract monies over all present and future debts due to HSBC. This charge is registered with Companies House under reference 0086 0123 0019. The charge was satisfied on 01 May 2024.

On 30 November 2023 a charge was assigned to HSBC securing contract monies over all present and future debts due to HSBC. This charge is registered with Companies House under reference 0086 0123 0020. The charge was satisfied on 01 May 2024.

On 09 July 2024 a fixed and floating charge was created over the assets of the company in relation to all debts incurred by the company at any point in time. This charge is registered with Companies House under reference 0086 0123 0021.

19. PROVISIONS FOR LIABILITIES
30.6.24 30.6.23
£    £   
Deferred tax
Accelerated capital allowances 1,236,804 888,487
Tax losses carried forward - (44,577 )
1,236,804 843,910

Deferred
tax
£   
Balance at 1 July 2023 843,910
Provided during year 392,894
Balance at 30 June 2024 1,236,804

Ellgia Limited (Registered number: 00860123)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.24 30.6.23
value: £    £   
1,400 Ordinary shares £1 1,400 1,400

21. RESERVES
Capital
Retained Revaluation redemption
earnings reserve reserve Totals
£    £    £    £   

At 1 July 2023 13,113,837 257,977 600 13,372,414
Profit for the year 1,459,476 1,459,476
Dividends (4,085,000 ) (4,085,000 )
At 30 June 2024 10,488,313 257,977 600 10,746,890

22. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge represents contributions payable by the company to the fund and amount to £122,133 (2023: £162,771). At the year end outstanding contributions totalled £13,659 (2023: £13,670).

23. CAPITAL COMMITMENTS
30.6.24 30.6.23
£    £   
Contracted but not provided for in the
financial statements 611,527 345,471

24. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

No other key management remuneration was paid during the year other than that disclosed in note 4.

25. POST BALANCE SHEET EVENTS

After the year end on 30th September 2024, the company acquired the trade and assets of Bakers Waste Services Limited for an amount of £7,113,000. On the same date, Ellgia Limited issued 71,130 ordinary shares for consideration of £100.

26. ULTIMATE CONTROLLING PARTY

The immediate parent company is Ellgia Recycling Limited, a company incorporated in England and Wales. The ultimate parent company is Icon Infrastructure LLP. The largest and smallest group of undertakings for which group accounts have been drawn up for the year ended 30 June 2024 is that headed by Ellgia Holdings Limited and copies are available from the Registrar of Companies (www.companieshouse.gov.uk).

The ultimate controlling party is Mr P Malan.