Company registration number 05322339 (England and Wales)
POTTER'S WASTE MANAGEMENT LIMITED
CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
POTTER'S WASTE MANAGEMENT LIMITED
COMPANY INFORMATION
Directors
Mr J E Potter
Miss D M Potter
(Appointed 12 December 2023)
Secretary
Mr J E Potter
Company number
05322339
Registered office
Potter House
Henfaes Lane
Welshpool
Powys
SY21 7BE
Auditor
Xeinadin Audit Limited
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9QP
POTTER'S WASTE MANAGEMENT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 35
POTTER'S WASTE MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of business
The directors are pleased with the group performance in the year. The group continues with its core activities of waste management, recycling and management of its commercial property portfolio.
Continual changes in regulation provide the group with ongoing challenges but also opportunities, with new legislation coming into effect requiring all businesses in Wales to separate their waste for recycling being seen as a growth opportunity for the group.
The group continues to engage with potential suppliers for Energy from Waste plant, and is closely monitoring progress in innovative pilot plants to improve small scale Energy from Waste processes.
The group's key financial indicators during the year were as follows:
2024
2023
as restated
£
£
Turnover
10,314,603
15,106,654
Operating profit
1,689,669
1,194,927
Profit before tax
1,413,928
8,925,070
Shareholders funds
36,080,855
34,845,890
Principal risks and uncertainties
The group operates within the waste management industry which is subject to strict environmental and health and safety legislation. The group’s management develop systems and policies to ensure compliance with all relevant regulations and to continue to meet these standards which are subject to continuous revision.
The group operations involve both public sector contracts and services to both industrial and commercial customers. Public service contracts may be subject to periodic competitive tender and the group’s management has put in place a tender approval procedure to ensure all risks are properly considered.
The group’s management recognise the liquidity risk to the group and utilise short and long term cash flow projections to review this, and are confident that they have sufficient banking and financing facilities in place to meet the group’s working capital requirement and sufficient funds are available for existing operations and planned expansions.
Social responsibility
The group’s vision is to build a safe and sustainable future. The business continually seeks to reduce its environmental impact and to make a positive contribution to the communities in which it operates.
The group is committed to investing in systems and technologies that will support its environmental objectives, with sustainable waste management and recycling initiatives at the heart of all that is done.
The group’s strong community focus means it seeks to invest back into the local area, and the group is dedicated to providing a healthy and safe working environment for all its staff and provide an exceptional level of service to all of its customers.
Future
The group is proud of its continued achievements in a difficult economical climate, and plans to continue to grow and diversify within and outside the waste management industry. In doing so it will retain a focus on its social and environmental responsibilities.
Throughout all the group’s operations, a strong focus on sustainability and innovation is maintained, sourcing technologies and embracing best practice which helps us reduce our impact on the environment and benefit the local communities that it operates in, working to build a brighter tomorrow for future generations.
POTTER'S WASTE MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Mr J E Potter
Director
23 January 2025
POTTER'S WASTE MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company and group continued to be that of the provision of waste management and disposal including the operation of landfill sites.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. 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:
Mr J E Potter
Miss D M Potter
(Appointed 12 December 2023)
Auditor
In accordance with the company's articles, a resolution proposing that Xeinadin Audit Limited be reappointed as auditor of the group will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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 directors' report. It has done so in respect of performance, risks and future developments.
POTTER'S WASTE MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr J E Potter
Director
23 January 2025
POTTER'S WASTE MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POTTER'S WASTE MANAGEMENT LIMITED
- 5 -
Opinion
We have audited the financial statements of Potter's Waste Management Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 2024 and of the group's 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
POTTER'S WASTE MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POTTER'S WASTE MANAGEMENT LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Reviewing minutes of meetings of those charged with governance;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations.
POTTER'S WASTE MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POTTER'S WASTE MANAGEMENT LIMITED
- 7 -
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Company and group are subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the Company and group are subject to many other laws and regulations where the consequence of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the group's license to operate. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
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.
Timothy Mitchell BSc FCA (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited
23 January 2025
Chartered Accountants
Statutory Auditor
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9QP
POTTER'S WASTE MANAGEMENT LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
4
10,314,603
15,106,654
Cost of sales
(7,181,930)
(9,129,840)
Gross profit
3,132,673
5,976,814
Administrative expenses
(3,423,774)
(6,513,556)
Other operating income
1,980,770
1,731,669
Operating profit
5
1,689,669
1,194,927
Interest receivable and similar income
8
4,472
7,932
Interest payable and similar expenses
9
(280,213)
400,371
Profit/(loss) on disposal of operations
- Potters (Midlands) Limited
-
7,321,840
Profit before taxation
1,413,928
8,925,070
Tax on profit
10
(233,816)
(447,253)
Profit for the financial year
29
1,180,112
8,477,817
Profit for the financial year is all attributable to the owners of the parent company.
POTTER'S WASTE MANAGEMENT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
£
£
Profit for the year
1,180,112
8,477,817
Other comprehensive income
Tax relating to other comprehensive income
54,853
708,772
Total comprehensive income for the year
1,234,965
9,186,589
Total comprehensive income for the year is all attributable to the owners of the parent company.
POTTER'S WASTE MANAGEMENT LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,943,471
8,722,584
Investment property
13
3,167,000
3,167,000
12,110,471
11,889,584
Current assets
Stocks
17
4,643
5,680
Debtors
18
33,360,983
34,376,195
Cash at bank and in hand
2,994,734
1,724,167
36,360,360
36,106,042
Creditors: amounts falling due within one year
19
(5,665,575)
(6,274,811)
Net current assets
30,694,785
29,831,231
Total assets less current liabilities
42,805,256
41,720,815
Creditors: amounts falling due after more than one year
20
(3,333,225)
(3,757,027)
Provisions for liabilities
Provisions
23
2,113,173
2,025,122
Deferred tax liability
24
1,278,003
1,092,776
(3,391,176)
(3,117,898)
Net assets
36,080,855
34,845,890
Capital and reserves
Called up share capital
26
10,000
10,000
Revaluation reserve
27
715,034
879,592
Non-distributable profits reserve
28
587,709
587,709
Distributable profit and loss reserves
29
34,768,112
33,368,589
Total equity
36,080,855
34,845,890
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 23 January 2025 and are signed on its behalf by:
23 January 2025
Mr J E Potter
Director
Company registration number 05322339 (England and Wales)
POTTER'S WASTE MANAGEMENT LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
25,349
26,896
Investment property
13
17,000
17,000
Investments
14
4,635,250
4,635,250
4,677,599
4,679,146
Current assets
Debtors
18
20,665,093
22,793,262
Cash at bank and in hand
2,820,541
970,583
23,485,634
23,763,845
Creditors: amounts falling due within one year
19
(1,160,462)
(2,335,472)
Net current assets
22,325,172
21,428,373
Total assets less current liabilities
27,002,771
26,107,519
Creditors: amounts falling due after more than one year
20
(527,936)
(817,546)
Net assets
26,474,835
25,289,973
Capital and reserves
Called up share capital
26
10,000
10,000
Distributable profit and loss reserves
29
26,464,835
25,279,973
Total equity
26,474,835
25,289,973
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,184,862 (2023 - £8,938,751 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 23 January 2025 and are signed on its behalf by:
23 January 2025
Mr J E Potter
Director
Company registration number 05322339 (England and Wales)
POTTER'S WASTE MANAGEMENT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
Share capital
Revaluation reserve
Non-distri-butable profits
Profit and loss reserves
Total
£
£
£
£
£
As restated for the period ended 30 April 2023:
Balance at 1 May 2022
10,000
754,207
602,827
26,710,026
28,077,060
Year ended 30 April 2023:
Profit for the year
-
-
(15,118)
8,492,935
8,477,817
Other comprehensive income:
Tax relating to other comprehensive income
-
708,772
-
708,772
Total comprehensive income
-
708,772
(15,118)
8,492,935
9,186,589
Transfers
-
1,834,372
-
(1,834,372)
-
Other movements
-
(2,417,759)
-
-
(2,417,759)
Balance at 30 April 2023
10,000
879,592
587,709
33,368,589
34,845,890
Year ended 30 April 2024:
Profit for the year
-
-
-
1,180,112
1,180,112
Other comprehensive income:
Tax relating to other comprehensive income
-
54,853
-
54,853
Total comprehensive income
-
54,853
-
1,180,112
1,234,965
Transfers
-
(219,411)
-
219,411
-
Balance at 30 April 2024
10,000
715,034
587,709
34,768,112
36,080,855
POTTER'S WASTE MANAGEMENT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 30 April 2023:
Balance at 1 May 2022
10,000
16,341,223
16,351,223
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
8,938,750
8,938,750
Balance at 30 April 2023
10,000
25,279,973
25,289,973
Year ended 30 April 2024:
Profit and total comprehensive income
-
1,184,862
1,184,862
Balance at 30 April 2024
10,000
26,464,835
26,474,835
POTTER'S WASTE MANAGEMENT LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
34
(2,336,185)
1,097,353
Interest paid
(280,213)
400,371
Income taxes refunded/(paid)
148,554
(87,945)
Net cash (outflow)/inflow from operating activities
(2,467,844)
1,409,779
Investing activities
Proceeds from disposal of business
4,847,241
2,814,819
Purchase of tangible fixed assets
(1,304,406)
(1,814,572)
Proceeds from disposal of tangible fixed assets
335,498
1,291,630
Purchase of investment property
-
(17,000)
Repayment of loans
(5,187)
(80,708)
Interest received
4,472
7,932
Net cash generated from investing activities
3,877,618
2,202,101
Financing activities
Repayment of bank loans
(563,606)
(2,406,123)
Payment of finance leases obligations
424,399
(1,025,282)
Net cash used in financing activities
(139,207)
(3,431,405)
Net increase in cash and cash equivalents
1,270,567
180,475
Cash and cash equivalents at beginning of year
1,724,167
1,543,692
Cash and cash equivalents at end of year
2,994,734
1,724,167
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information
Potter's Waste Management Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Potter House, Henfaes Lane, Welshpool, Powys, SY21 7BE.
The group consists of Potter's Waste Management Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, 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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Potter's Waste Management Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Where a subsidiary is fully disposed of, the gain or loss on the disposal reflects the consideration proceeds net of the assets eliminated from the group, any goodwill at the disposal date and associated professional costs . The trading results of the entity are included up to the date of disposal with any group trading activity in the period of ownership eliminated up to the disposal date.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
1.5
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company, and the revenue can be reliably measured once the goods or services are provided to the customer. Income from waste disposal is recognised at the point of disposal. Income is stated net of landfill tax. Turnover is measured 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.
1.6
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:
Freehold land and buildings
15 years straight line allowing for residual value
Improvements to property
10-25 years straight line
Plant and equipment
2-50% both reducing balance and straight line
Fixtures and fittings
3 to 5 years straight line
Motor vehicles
4 to 5 years straight line
Land not in use
Not depreciated
Landfill Site
On the basis of voidspace used allowing for residual value
Other tangible assets
Over the estimated useful life
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Certain capital additions and disposals have been accounted for on a component basis where appropriate.
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.7
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.11
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.
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
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.
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group 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.
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
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 group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.15
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Provisions are in place for environmental and landfill costs, these include provisions associated with the closure and post closure of the landfill site. The company estimates its total future requirements for closure costs and post closure monitoring and maintenance of the site after the anticipated closure.
A provision is made for the final capping, inspection, monitoring, operating and maintenance costs to be incurred during the period after which the site closes.
Post closure provisions have been shown at net present value. The current cost estimate has been inflated at 4.1% (2021: 2.1%) and discounted by 7.25% (2021: 5.25%). The unwinding of the discount element is shown in the financial statements as a financial item.
The group provides for full closure costs as the voidspace is used. In accordance with FRS 102 Section 21, full provision has been made for the company's minimum unavoidable costs.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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 leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
2
Change in accounting policy
The voluntary change in accounting policy relates to a change in the recording of landfill tax in Sundorne Products (Llanidloes) Limited. Previously this was recorded gross however this has now been removed from both income and cost of sales and therefore shown net in the financial statements. This change has been made as the directors believes that the entity does not receive an economic benefit from the collection of landfill tax. The change presents the accounts in a more useful and relevant format and better reflects the economic substance of the transactions.
The change in accounting policy impacts both turnover and cost of sales reducing both balances in the 2024 year by £2,555,988.
To reflect this change in accounting policy a prior year adjustment has been included for the 30 April 2023 year end reducing both income and cost of sales by £2,509,783.
For the periods prior to those presented there is no impact to the profit or the distributable reserves therefore no further disclosures provided.
3
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Provisions are in place for environmental and landfill costs, these include provisions associated with the closure and post closure of the landfill site. The group estimates its total future requirements for closure costs and post closure monitoring and maintenance of the site after the anticipated closure. Actual costs, interest rates and capacity can vary.
The group depreciates tangible assets over their estimated useful lives based on void space filled and historic performance. The actual lives can vary based on filling capacity and utilisation of assets.
The group records its investment property at fair value as arrived at by independent valuers based on similar properties in the area. Actual values may vary.
4
Turnover
All turnover arose within the United Kingdom.
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
-
(11,108)
Depreciation of owned tangible fixed assets
840,526
2,566,442
Depreciation of tangible fixed assets held under finance leases
186,872
152,793
Impairment of owned tangible fixed assets
(28,313)
169,151
Reversal of past impairment of tangible fixed assets
(127,179)
(24,931)
(Profit)/loss on disposal of tangible fixed assets
(123,885)
164,886
Operating lease charges
-
432,128
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
30,980
30,000
For other services
Taxation compliance services
3,450
4,200
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
35
38
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,011,134
1,333,233
Social security costs
95,448
147,074
-
-
Pension costs
19,582
23,799
1,126,164
1,504,106
Key management personnel are the directors of the company and the directors and the operations manager of the subsidiaries with a combined remuneration of £57,789 (2023: £104,598).
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
4,472
7,932
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
223,740
(489,749)
Interest on finance leases and hire purchase contracts
56,473
88,150
Other interest
-
1,228
Total finance costs
280,213
(400,371)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
36,616
470,073
Adjustments in respect of prior periods
(42,881)
Total current tax
(6,265)
470,073
Deferred tax
Origination and reversal of timing differences
240,081
(22,820)
Total tax charge
233,816
447,253
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 24 -
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
1,413,928
8,925,070
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
353,482
1,739,782
Tax effect of expenses that are not deductible in determining taxable profit
223,317
76,664
Tax effect of income not taxable in determining taxable profit
(137,612)
Gains not taxable
(1,427,254)
Permanent capital allowances in excess of depreciation
(402,571)
(402,817)
Depreciation on assets not qualifying for tax allowances
530,064
Under/(over) provided in prior years
(42,881)
Deferred tax
240,081
(22,820)
(46,366)
Taxation charge
233,816
447,253
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Movement on revaluation reserve
(54,853)
(708,772)
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
12
(28,313)
169,151
Recognised in:
Administrative expenses
(28,313)
169,151
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Impairments
(Continued)
- 25 -
Reversals of previous impairment losses have been recognised in profit or loss as follows:
2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
12
127,179
24,931
Recognised in:
Administrative expenses
127,179
24,931
The impairment losses in respect of other tangible fixed assets are recognised in other gains and losses in the profit and loss account. These have been arrived at based on valuations provided by an independent third party valuer.
12
Tangible fixed assets
Group
Freehold land and buildings
Improvements to property
Plant and equipment
Land not in use
Other tangible assets
Total
£
£
£
£
£
£
Cost or valuation
At 1 May 2023
4,807,242
387,180
16,506,373
1,729,346
1,109,624
24,539,765
Additions
1,304,406
-
1,304,406
Disposals
(921,520)
(355,000)
(1,276,520)
At 30 April 2024
4,807,242
387,180
16,889,259
1,729,346
754,624
24,567,651
Depreciation and impairment
At 1 May 2023
3,208,778
177,525
11,498,254
932,624
15,817,181
Depreciation charged in the year
223,370
64,858
636,162
103,008
1,027,398
Impairment losses
(28,313)
(28,313)
Reversal of past impairment
(127,179)
(127,179)
Eliminated in respect of disposals
(866,140)
(198,767)
(1,064,907)
At 30 April 2024
3,432,148
242,383
11,268,276
681,373
15,624,180
Carrying amount
At 30 April 2024
1,375,094
144,797
5,620,983
1,729,346
73,251
8,943,471
At 30 April 2023
1,598,464
209,655
5,008,119
1,729,346
177,000
8,722,584
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Tangible fixed assets
(Continued)
- 26 -
Company
Plant and equipment
£
Cost or valuation
At 1 May 2023 and 30 April 2024
26,896
Depreciation and impairment
At 1 May 2023
Depreciation charged in the year
1,547
At 30 April 2024
1,547
Carrying amount
At 30 April 2024
25,349
At 30 April 2023
26,896
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
1,184,696
837,231
Land and buildings owned by Sundorne Products (Llanidloes) Limited were revalued in November 2011 by independent valuers GVA Grimley Limited, Chartered Surveyors, who conducted a valuation on an open market value basis of vacant possession and available void space. The valuation conformed to International Valuation Standards and was based on recent market transactions on arm’s length terms for similar properties.
The revaluation surplus is disclosed in note 27.
Had the freehold land and buildings not been revalued, the historic cost of these assets would have been £841,350.
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 May 2023 and 30 April 2024
3,167,000
17,000
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Investment property
(Continued)
- 27 -
The fair value of the investment property has been arrived at on the basis of a valuation carried out by Towler Shaw Roberts, Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis on 30 April 2022 by reference to market evidence of transaction prices for similar properties. The historical cost of the properties is £2,383,388.
The directors have decided that the valuation carried out at 30 April 2022 remains appropriate for the investment property as at 30 April 2024.
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
4,635,250
4,635,250
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
4,635,250
Carrying amount
At 30 April 2024
4,635,250
At 30 April 2023
4,635,250
15
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sundorn Products (Llanidoes) Limited
Potter House, Henfaes Lane, Welshpool, SY21 7BE
Ordinary
100.00
Potters Renewable Energy Limited
Potter House, Henfaes Lane, Welshpool, SY21 7BE
Ordinary
100.00
The investments in subsidiaries are all stated at cost.
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
30,586,032
31,330,581
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
8,473,385
9,442,179
n/a
n/a
As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
4,643
5,680
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,413,189
1,738,936
134,223
Amounts owed by group undertakings
-
-
186,326
168,932
Other debtors
19,673,885
15,862,634
11,406,343
8,838,319
Prepayments and accrued income
2,678,599
2,734,153
371,724
57,000
24,765,673
20,335,723
12,098,616
9,064,251
Amounts falling due after more than one year:
Corporation tax recoverable
28,833
311,461
Other debtors
8,566,477
13,729,011
8,566,477
13,729,011
8,595,310
14,040,472
8,566,477
13,729,011
Total debtors
33,360,983
34,376,195
20,665,093
22,793,262
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
984,319
871,138
289,476
479,732
Obligations under finance leases
22
352,261
180,847
Trade creditors
1,399,288
1,230,292
16,405
4,100
Amounts owed to group undertakings
10,000
Corporation tax payable
372,745
513,083
187,657
171,230
Other taxation and social security
152,670
76,576
24,079
-
Other creditors
1,272,314
2,440,900
202,284
1,436,140
Accruals and deferred income
1,131,978
961,975
430,561
244,270
5,665,575
6,274,811
1,160,462
2,335,472
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
2,740,352
3,417,139
527,936
817,546
Obligations under finance leases
22
592,873
339,888
3,333,225
3,757,027
527,936
817,546
Amounts included above which fall due after five years are as follows:
Payable by instalments
125,345
148,229
125,345
148,229
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,724,671
4,288,277
817,412
1,297,278
Payable within one year
984,319
871,138
289,476
479,732
Payable after one year
2,740,352
3,417,139
527,936
817,546
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Loans and overdrafts
(Continued)
- 30 -
The above borrowings have the associated securities:
Potter's Waste Management Limited
The loans are secured by mortgage debentures with HSBC Bank plc by means of fixed and floating charges. These loans have a composite company unlimited multilateral guarantee against all assets of the group and all assets of the entities that comprise it.
Sundorne Products (Llanidloes) Limited
Included within borrowings are bank loans from Handelsbanken plc and Close Brothers Limited. These loans are secured by way of legal charge and composite company unlimited multilateral guarantee against the assets to which they relate. . The Handelsbanken loans are cross guaranteed by Potter's Waste Management Limited and a personal guarantee by James Potter. Further details of each charge can be obtained from Companies House.
Potters Renewable Energy Limited
Included within borrowings are bank loans from HSBC Equipment Finance (UK) Limited. The loan is secured by way of legal charge and composite company unlimited multilateral guarantee against all assets of the entity.
22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
352,261
180,846
In two to five years
592,873
339,889
945,134
520,735
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The total interest charge incurred by the group for assets held under finance lease for the year ended 30 April 2024 was £56,473 (2023: £76,044).
23
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Landfill related provisions
2,113,173
2,025,122
-
-
Deferred tax liabilities
24
1,278,003
1,092,776
3,391,176
3,117,898
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
23
Provisions for liabilities
(Continued)
- 31 -
Provision has been made for the capping, closure and post closure costs in relation to the landfill site restoration and maintenance in accordance with the accounting policy set out in note 1.15. The company expects these costs to be incurred over the next 43 years for Sundorne Products (Llanidloes) Limited.
Movements on provisions:
Landfill related provisions
Group
£
At 1 May 2023
2,025,122
Additional provisions in the year
88,051
At 30 April 2024
2,113,173
24
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
838,716
598,637
Revaluations
238,345
293,197
Investment property
200,942
200,942
1,278,003
1,092,776
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
1,092,776
-
Charge to profit or loss
240,081
-
Credit to other comprehensive income
(54,854)
-
Liability at 30 April 2024
1,278,003
-
The deferred tax liability set out above is not expected to reverse completely within the next 12 months and relates to accelerated capital allowances and the revaluation of fixed assets.
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
19,582
23,799
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. At 30 April 2024 the group had a liability of £2,959 (2023: £2,359) due to the pension fund.
26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
10,000
10,000
10,000
10,000
27
Revaluation reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
879,592
754,207
-
-
At the beginning of the year
879,592
754,207
Deferred tax on the movement of the revaluation reserve
54,853
708,772
-
-
Transfer to retained earnings
(219,411)
1,834,372
-
-
Other movements
-
(2,417,759)
-
-
At the end of the year
715,034
879,592
-
28
Non-distributable profits reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
587,709
602,827
-
-
Non distributable profits in the year
-
(15,118)
-
-
At the end of the year
587,709
587,709
-
-
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
29
Profit and loss reserves
Group
Company
2024
2023
2024
2023
as restated
as restated
£
£
£
£
At the beginning of the year
33,368,589
26,710,026
25,279,973
16,341,223
Profit for the year
1,180,112
8,477,817
1,184,862
8,938,750
Current year profits transferred to non-distributable reserve
-
15,118
-
-
Transfer from revaluation reserve
219,411
(1,834,372)
-
-
At the end of the year
34,768,112
33,368,589
26,464,835
25,279,973
30
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
21,729
-
-
-
Between two and five years
34,297
-
-
-
56,026
-
-
-
31
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
528,225
-
-
-
32
Related party transactions
Group
Company
2024
2023
2024
2023
£
£
£
£
Services charged and goods sold
3,510,859
7,302,012
6,624
47,702
Services and goods purchased
1,348,267
1,129,931
196,000
30,896
Amount due from related parties
15,812,855
12,856,124
6,122,029
3,857,331
Amount due to related parties
448,578
475,210
3,376
10,000
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
32
Related party transactions
(Continued)
- 34 -
No interest is charged on balances between group companies.
During the year, the group advanced £2,147,050 (2023: £213,707) to Mr J Potter. Mr J Potter made repayments of £852,419 (2023: £1,624,725). At the year end the group owed Mr J Potter £28,897 (2023: £1,323,527).
In addition to the above, the group made sales to Mr J Potter totalling £209,888 and had purchases of £77,665. At 30 April 2024 the associated debtors totalled £123,293 (2023: £161,159) and creditors totalled £44,888 (2023: £44,035).
33
Controlling party
The ultimate controlling party is Mr J Potter, as a result of controlling 100% of the issued share capital.
34
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
1,180,112
8,477,817
Adjustments for:
Taxation charged
233,816
447,253
Finance costs
280,213
(400,371)
Investment income
(4,472)
(7,932)
(Gain)/loss on disposal of tangible fixed assets
(123,885)
164,886
Gain on disposal of business
-
(7,296,909)
Depreciation and impairment of tangible fixed assets
871,906
2,863,455
Increase/(decrease) in provisions
88,051
(250,000)
Movements in working capital:
Decrease/(increase) in stocks
1,037
(1,819)
Increase in debtors
(4,109,470)
(4,873,264)
(Decrease)/increase in creditors
(753,493)
1,974,237
Cash (absorbed by)/generated from operations
(2,336,185)
1,097,353
35
Analysis of changes in net debt - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
1,724,167
1,270,567
2,994,734
Borrowings excluding overdrafts
(4,288,277)
563,606
(3,724,671)
Obligations under finance leases
(520,735)
(424,399)
(945,134)
(3,084,845)
1,409,774
(1,675,071)
POTTER'S WASTE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 35 -
36
Prior period adjustment
The prior year adjustment is in relation to a change in accounting policy for turnover which is now included net of landfill tax. In addition the adjustment below includes the reclassification of Renewable Heat Incentive income from turnover to other operating income.
There were no changes to the group balance sheet or group capital and reserves. Changes to the group profit and loss account are detailed below.
The prior year adjustments had no impact on Potter's Waste Management Limited as an individual entity.
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 30 April 2023
£
£
£
Turnover
18,019,819
(2,913,165)
15,106,654
Cost of sales
(11,639,623)
2,509,783
(9,129,840)
Other operating income
1,328,287
403,382
1,731,669
Profit after taxation
1,155,977
-
1,155,977
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