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Registered number: 02640102










CWM ENVIRONMENTAL LTD.










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
CWM ENVIRONMENTAL LTD.
 
 
COMPANY INFORMATION


Directors
Owen William Bowen 
Sean Paschal Benedict Gallagher 
David Gilbert 
Robert Dudley Thomas 
Ainsley Williams 
Daniel William John (appointed 20 March 2024)




Company secretary
Robert Dudley Thomas



Registered number
02640102



Registered office
Head Office Nantycaws Recycling Centre
Llanddarog Road

Carmarthen

SA32 8BG




Auditors
MHA

MHA House

Charter Court

Swansea Enterprise Park

Swansea

SA7 9FS





 
CWM ENVIRONMENTAL LTD.
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10 - 11
Statement of Changes in Equity
12
Statement of Cash Flows
13
Analysis of Net Debt
14
Notes to the Financial Statements
15 - 30


 
CWM ENVIRONMENTAL LTD.
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The directors present their strategic report for the year ended 31 March 2024. 
CWM Environmental Ltd. ("the Company") trades as a Waste Disposal Company. The Company holds waste management contracts with a number of Local Authorities (including Carmarthenshire County Council); it also oversees a commercial portfolio of kerbside services and provides bespoke material handling services to larger customers. 

Business review
 
The results for the year ended 31 March 2024 and the preceding financial year ended 31 March 2023 are shown in the annexed financial statements.
The trading performance in the year is in line with the directors' expectations.
The external commercial environment is expected to remain competitive into 2024 due to market pressures; however, the directors are confident that a satisfactory level of activity will be sustained for the foreseeable future. The directors are confident that the company will continue to be profit-making in 2025.

Financial key performance indicators
 
The company's key performance indicators (KPI's) are summarised below:
¶¶
Turnover £15,280k (2023 - £14,335k)

Gross Profit £4,649k (2023 - £3,877k) and Gross Margin 30.4% (2023 - £27.0%). 

Net current assets £2,894k (2023 - £269k) and Net assets £4,781k (2023 - £3,010k). 

Principal risks and uncertainties
 
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks can be summarised as follows: 
Competition
Potential impact - The market in which the company operates is subject to strong competition. The impact of such competition could impact on margins.
Mitigation - The company continues to invest heavily in its range of services. This, coupled with a focus on customer service, results in a high level of repeat business.

People
Potential impact - The business could be impacted by the loss of key individuals.
Mitigation - The business looks to increase staff engagement through (1) regular opportunities to give feedback and to influence future business developments and (2) training and progression opportunities.
Compliance with laws and regulations
Potential impact - Non-compliance may result in financial penalties, a negative impact on the company's ability to operate effectively and reputational damage.
Mitigation - A robust regulatory framework ensures compliance with Environment Agency and other relevant requirements. Employees and contractors receive a rolling programme of training and guidance.
Business risks are reviewed regularly by the directors and appropriate processes are put in place to monitor and mitigate their impact.

Page 1

 
CWM ENVIRONMENTAL LTD.
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Other performance indicators
 
The Company's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk, interest rate risk and interest rate cash flow risk. The Company has in place an informal risk management programme that seeks to limit the adverse effects on the financial performance of the Company. Given the size of the Company, the directors have not delegated the responsibility for monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the Company's finance department.
Price Risk
The Company is exposed to commodity price risk. However, given the size of the Company's operations, the costs of managing the exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the Company's operations change in size or nature. The company has no exposure to equity securities price risk as it holds no listed or other equity instruments.
Credit Risk
The company's financial assets are cash and trade debtors. The Company's credit risk is primarily attributable to its trade debtors which are presented in the statement of financial position net of allowances for doubtful debts. The Company has implemented policies that require appropriate credit checks on potential customers before sales are made.
Liquidity and Interest Rate Risk
The Company has cash reserves to fund its operations and utilises short term finance as required.
Interest Rate Cash Flow Risk
The Company has interest bearing assets. Interest bearing asssets include only cash balances, all of which earn interest at variables rates.


This report was approved by the board on 8 January 2025 and signed on its behalf.



Owen William Bowen
Director

Page 2

 
CWM ENVIRONMENTAL LTD.
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

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

Principal activity

The principal activity of the company in the year under review was that of a waste disposal company.


Dividends
No dividends will be distributed for the year ended 31 March 2024 (2023: £Nil).

Directors

The directors who served during the year were:

Owen William Bowen 
Sean Paschal Benedict Gallagher 
David Gilbert 
Jason Wyn Jones (resigned 3 June 2024)
Robert Dudley Thomas 
Ainsley Williams 
Daniel William John (appointed 20 March 2024)

Future developments

The strategy and future developments in the business are set out in the Strategic Report.

Matters covered in the Strategic Report

Included in the company's strategic report is a review of the business and a description of the principal risks and uncertainties facing the company.

Page 3

 
CWM ENVIRONMENTAL LTD.
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditors, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 January 2025 and signed on its behalf.
 





Owen William Bowen
Director

Page 4

 
CWM ENVIRONMENTAL LTD.
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CWM ENVIRONMENTAL LTD.
 

Opinion


We have audited the financial statements of CWM ENVIRONMENTAL LTD. (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 31 March 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
CWM ENVIRONMENTAL LTD.
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CWM ENVIRONMENTAL LTD. (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 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.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


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 Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
CWM ENVIRONMENTAL LTD.
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CWM ENVIRONMENTAL LTD. (CONTINUED)


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 an Auditors' 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, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud.
- Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred.
- Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness.
- An assessment of the methodologies used in order to calculate estimates/provisions at the year end for evidence of bias. 
- We considered where applicable alternative estimation approaches including using (where available) actual post year end outcomes in order to provide assurance over the potential for material misstatement.
- The accounting policy relating to estimates was checked to the financial reporting standards where necessary and confirmed to be appropriate.
- Reviewing accounting estimates for bias.
- Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.
- Discussions with management over any potential or suspected fraud.
- Performing audit work over the recognition of revenue on deliveries of goods/income/services occurring at the year end to provide assurance over cut-off.
- Performing substantive tests of detail over the completeness/existence of income within the financial system.


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


A further description of our responsibilities 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 Auditors' Report.


Page 7

 
CWM ENVIRONMENTAL LTD.
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CWM ENVIRONMENTAL LTD. (CONTINUED)


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 2006Our 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 Auditors' 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.





Brian Garland BA ACA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Swansea, United Kingdom

24 January 2025

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).

Page 8

 
CWM ENVIRONMENTAL LTD.
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
15,279,932
14,334,832

Cost of sales
  
(10,630,487)
(10,458,021)

Gross profit
  
4,649,445
3,876,811

Administrative expenses
  
(6,156,640)
(4,103,693)

Other operating income
  
3,261,188
231,483

Operating profit
 5 
1,753,993
4,601

Interest receivable and similar income
 8 
60,516
12,658

Interest payable and similar expenses
 9 
(43,085)
(68,654)

Profit/(loss) before tax
  
1,771,424
(51,395)

Profit/(loss) for the financial year
  
1,771,424
(51,395)

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 15 to 30 form part of these financial statements.

Page 9

 
CWM ENVIRONMENTAL LTD.
REGISTERED NUMBER: 02640102

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
8,943,915
8,761,580

  
8,943,915
8,761,580

Current assets
  

Debtors: amounts falling due within one year
 13 
2,015,696
1,397,846

Cash at bank and in hand
 14 
4,441,935
2,017,614

  
6,457,631
3,415,460

Creditors: amounts falling due within one year
 15 
(3,563,588)
(3,146,364)

Net current assets
  
 
 
2,894,043
 
 
269,096

Total assets less current liabilities
  
11,837,958
9,030,676

Creditors: amounts falling due after more than one year
 16 
(1,270,554)
(1,414,696)

Provisions for liabilities
  

Other provisions
 18 
(5,786,182)
(4,606,182)

  
 
 
(5,786,182)
 
 
(4,606,182)

Net assets
  
4,781,222
3,009,798


Capital and reserves
  

Called up share capital 
 19 
329,002
329,002

Profit and loss account
  
4,452,220
2,680,796

  
4,781,222
3,009,798


Page 10

 
CWM ENVIRONMENTAL LTD.
REGISTERED NUMBER: 02640102
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 January 2025.




Owen William Bowen
Director

Page 11

 
CWM ENVIRONMENTAL LTD.
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
329,002
2,732,191
3,061,193



Loss for the year
-
(51,395)
(51,395)



At 1 April 2023
329,002
2,680,796
3,009,798



Profit for the year
-
1,771,424
1,771,424


At 31 March 2024
329,002
4,452,220
4,781,222


The notes on pages 15 to 30 form part of these financial statements.

Page 12

 
CWM ENVIRONMENTAL LTD.
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
1,771,424
(51,395)

Adjustments for:

Depreciation of tangible assets
981,902
1,082,719

Loss on disposal of tangible assets
(22,083)
(4,138)

Interest paid
43,085
68,654

Interest received
(60,516)
(12,658)

Decrease in debtors
68,631
294,013

Increase/(decrease) in creditors
787,645
(725,509)

Increase in provisions
1,180,000
161,441

Net cash generated from operating activities

4,750,088
813,127


Cash flows from investing activities

Purchase of tangible fixed assets
(1,030,725)
(648,374)

Sale of tangible fixed assets
(111,427)
34,078

New loans to group undertakings
(686,481)
(632,123)

Group undertakings loans repaid
(82,201)
912,357

Interest received
60,516
12,658

HP interest paid
(33,588)
(48,100)

Net cash from investing activities

(1,883,906)
(369,504)

Cash flows from financing activities

Repayment of/new finance leases
(91,245)
(121,632)

Interest paid
(9,497)
(20,554)

Net cash used in financing activities
(100,742)
(142,186)

Net increase in cash and cash equivalents
2,765,440
301,437

Cash and cash equivalents at beginning of year
1,676,495
1,375,058

Cash and cash equivalents at the end of year
4,441,935
1,676,495


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,441,935
2,017,614

Bank overdrafts
-
(341,119)

4,441,935
1,676,495


Page 13

 
CWM ENVIRONMENTAL LTD.
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

2,017,614

2,424,321

4,441,935

Bank overdrafts

(341,119)

341,119

-

Finance leases

(617,020)

91,245

(525,775)


1,059,475
2,856,685
3,916,160

Page 14

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Cwm Environmental Ltd. 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.
The presentation currency of the financial statements is the Pound Sterling (£).
Monetary amounts in these financial statements are rounded to nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis which assumes the company will continue in operational existence for the foreseeable future. In making their assessment, the directors have reviewed the statement of financial position, the likely future cash flows of the business and have considered facilities that are in place at the date of signing the report.
The directors have prepared up-to-date forecasts and are confident they have taken all necessary steps to manage the Company's affairs. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis.

 
2.3

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Page 15

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.4

Exemption from the requirement to prepare consolidated financial statement

The company has taken advantage of the exemption available under Section 405 of the Companies Act 2006 not to prepare consolidated financial statements on the grounds that the dormant subsidiary undertakings are together wholly immaterial for the purpose of giving a true and fair view of the financial performance and position of the company.
Accordingly, these financial statements contain information about Cwm Environmental Ltd. as an individual company and do not contain consolidated financial information as the parent of a group.

  
2.5

Related party exemption

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.

  
2.6

Equity instruments

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

  
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

  
2.8

Provisions

.Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

  
2.9

Employees 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.

Page 16

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.10

Pension costs and other post-retirement benefits

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

  
2.11

Turnover

Turnover, which includes landfill tax but excludes value added tax and trade discounts, represents the invoiced value of services supplied.
Revenue
Revenue 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. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and the costs incurred and the costs to complete the contract can be measured reliably.

Page 17

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.12

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
3 - 5%
Plant and machinery
-
10 - 25%
Motor vehicles
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

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.

Page 18

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Page 19

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)


Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 20

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.15

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 statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

  
2.16

Provisions for landfill site - restoration and maintenance Departure from FRS 102

FRS 102 requires that, where the time value of money has a material effect on the amount to be paid, a provision should be discounted and recognised at the present value of the amount expected to be required to settle the obligation. The provision for expected costs of restoring and maintaining the and fill site has not been discounted. This provision has been determined in line with guidance provided by Natural Resource Wales, which specifically requires that the provision recognised is not discounted.

  
2.17

Long-term contracts

The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded for contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
Bank interest accruing on capital borrowed to fund the production of long term contracts is carried forward within long term contracts balances.

Page 21

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
3.1 Provision for expected costs of restoring and maintaining the landfill site
The provision for the expected costs of restoring and maintaining the Company's landfill site after the end of its useful life in the Company's business is based on expected costs that the directors consider would discharge the Company's obligation for the restoration and maintenance of the landfill site. This assessment is based on guidance provided by Natural Resources Wales and the provision is made establishing a consumption factor which aims to provide for estimate future costs over the remaining operational life of the site. Aftercare costs, which form the bulk of the provision, are expressed as a rate per tonne and charged to the profit and loss account based on the annual tonnage input to the site. The provision is not discounted.
3.2 Useful economic lives of tangible assets
The annual depreciation charge for tangible 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 re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
  
3.3 Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of the debtors and historical experience.

Page 22

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


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 as follows:


2024
2023
£
£

Provision of services
14,918,602
13,901,644

Sale of materials
361,330
433,188

15,279,932
14,334,832


An analysis of turnover by geographical market is given below:

2024
2023
£
£

United Kingdom
15,279,932
14,334,832

15,279,932
14,334,832



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Hire of plant and machinery
109,885
108,176

Depreciation - owned assets
736,369
745,870

Depreciation - assets on hire purchase contracts
245,533
336,849

Profit on disposal of fixed assets
(22,083)
(4,138)

Auditors' remuneration
17,600
16,750

Auditors' remuneration for non audit work
4,463
4,250

Foreign exchange differences
-
3

Page 23

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

6.


Employees

2024
2023
£
£

Wages and salaries
2,649,093
2,421,288

Social security costs
258,625
234,880

Cost of defined contribution scheme
180,836
156,818

3,088,554
2,812,986


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Operatives
76
74



Administration
16
14

92
88


7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
153,582
152,762

Company contributions to defined contribution pension schemes
18,815
18,496

172,397
171,258


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.


8.


Interest receivable

2024
2023
£
£


Deposit account interest
60,516
12,658

60,516
12,658

Page 24

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Interest payable and similar expenses

2024
2023
£
£


Bank and loan interest payable
9,497
20,554

Finance leases and hire purchase contracts
33,588
48,100

43,085
68,654


10.


Taxation


Analysis of the tax charge
No liability to UK corporation tax arose for the year ended 31 March 2024 nor for the year ended 31 March 2023.



Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
1,771,424
(51,395)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
442,856
(9,765)

Effects of:


Capital allowances for year in excess of depreciation
(6,299)
(303,338)

Utilisation of tax losses
(76,065)
-

Non-taxable income
(761,588)
-

Changes in provisions leading to an increase (decrease) in the tax charge
401,071
-

Unrelieved tax losses carried forward
-
313,889

Other differences leading to an increase (decrease) in the tax charge
25
(786)

Total tax charge for the year
-
-

Page 25

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Tangible fixed assets





Land and buildings
Assets under construction
Plant and machinery
Motor vehicles
Total

£
£
£
£
£



Cost or valuation


At 1 April 2023
15,162,427
1,022,932
5,906,835
1,967,282
24,059,476


Additions
171,337
179,064
375,085
305,239
1,030,725


Disposals
(94,090)
(6,298)
(244,735)
-
(345,123)


Transfers between classes
750,956
(930,232)
179,276
-
-



At 31 March 2024

15,990,630
265,466
6,216,461
2,272,521
24,745,078



Depreciation


At 1 April 2023
8,805,815
-
5,135,319
1,356,760
15,297,894


Charge for the year 
245,879
-
473,555
262,468
981,902


Disposals
(328,998)
-
(149,635)
-
(478,633)



At 31 March 2024

8,722,696
-
5,459,239
1,619,228
15,801,163



Net book value



At 31 March 2024
7,267,934
265,466
757,222
653,293
8,943,915



At 31 March 2023
6,356,611
1,022,932
771,515
610,522
8,761,580

The net book value of tangible fixed assets includes £607,515 (2023 - £750,950) in respect of assets held under hire purchase contracts.

Page 26

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Fixed asset investments

Fixed asset investments comprise equity shares held in the following non-publicly traded companies.
The company holds 100% of the ordinary share capital of Pembrokeshire Recycling Company Limited, a company registered in England and Wales which was dormant throughout both the current and comparative periods. The company has net assets of £100 (2023: £100). Registered Office: Head Office Nantycaws Recycling Centre, Llanddarog Road, Carmarthen SA32 8BG.

The company holds 100% of the ordinary share capital of Carmarthenshire Recycling Company Limited, a company registered in England and Wales which was dormant throughout both the current and comparative periods. The company has net assets of £1 (2023: £1). Registered Office: Head Office Nantycaws Recycling Centre, Llanddarog Road, Carmarthen SA32 8BG.

Fair value of financial assets carried at amortised cost
The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values. Investments held at NIL value at the Statement of Financial Position date.


13.


Debtors

2024
2023
£
£


Trade debtors
313,051
421,209

Amounts owed by group undertakings
1,572,179
885,698

Prepayments and accrued income
130,466
90,939

2,015,696
1,397,846


Trade debtors disclosed above are measured at amortised cost.


14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
4,441,935
2,017,614

Less: bank overdrafts
-
(341,119)

4,441,935
1,676,495


Page 27

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
-
341,119

Trade creditors
1,552,228
1,325,716

Amounts owed to group undertakings
-
9,909

Other taxation and social security
159,332
261,142

Obligations under finance lease and hire purchase contracts
236,487
343,089

Other creditors
69,330
65,055

Accruals and deferred income
1,546,211
800,334

3,563,588
3,146,364



16.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
289,288
273,931

Amounts owed to group undertakings
242,809
315,101

Deferred government grants
738,457
825,664

1,270,554
1,414,696


The following secured debts are included within creditors:

2024
2023
£
£



Hire purchase contracts
525,775
617,020

525,775
617,020

Details of security provided:

Obligations under hire purchase contracts are secured over the assets to which they relate.

Page 28

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
236,487
343,089

Between 1-5 years
289,288
273,931

525,775
617,020

Finance lease payments represent rentals payable by the company 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.


18.


Provisions for liabilities





Landfill site

£





At 1 April 2023
4,606,182


Other movements
1,180,000



At 31 March 2024
5,786,182

Provision for landfill site - restoration and maintenance
The provision for expected costs for restoring and maintaining the Company's landfill site after the end of its useful life in the Company's business relates to the expected costs that the directors consider would discharge the Company's obligation for restoring and maintenance of the landfill site. In accordance with guidance provided by Natural Resource Wales, no account is taken of the inflation rate at the time of this provision being calculated and the provision has not been discounted to net present vales as there is no consistent and proven real rate of return on the funds. The provision for such costs has been based on the directors' best estimate of costs which will be borne by the Company, in conjunction with the guidance issued by Natural Resources Wales. The expected costs are subject to periodic review.
As part of its permit obligations with Natural Resources Wales for operating the Nantycaws site, Cwm Environmental Limited must have in place adequate financial provisions to discharge the obligations of the permit. Last year, Carmarthenshire County Council entered into a Local Authority Performance Deed with Natural Resources Wales for the purpose of securing the performance and observance of the provisions of the Site Permit. Cwm Environmental have made provision of £1,553,560 in a joint aftercare account held with the Council with the balance to be only used to meet the specified aftercare costs.

Page 29

 
CWM ENVIRONMENTAL LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



329,002 (2023 - 329,002) Ordinary shares of £1.00 each
329,002
329,002



20.


Capital commitments


At 31 March 2024 the Company had capital commitments as follows:

2024
2023
£
£


Contracted for but not provided in these financial statements
230,859
-

Contracted but not provided for in the financial statements
230,859
-


21.


Pension commitments

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. £17,412 (2023 - £18,414) contributions were outstanding at the statement of financial position date.


22.


Related party transactions

Entities with control, joint control or significant influence over the entity


2024
2023
£
£

Sales
10,902,546
10,904,118
Purchases
85,944
76,541
Amount due from related party
1,572,179
885,698
Amount due to related party
242,809
325,009


23.


Ultimate Controlling Party

The Company is wholly owned by Carmarthenshire County Council and the directors recognise Carmarthenshire County Council as the ultimate controlling party by virtue of its controlling interest in the Company's share capital.

 
Page 30