REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 April 2024 |
for |
Mobius Environmental Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 April 2024 |
for |
Mobius Environmental Limited |
Mobius Environmental Limited (Registered number: 07066307) |
Contents of the Financial Statements |
for the Year Ended 30 April 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Income Statement | 12 |
Other Comprehensive Income | 13 |
Balance Sheet | 14 |
Statement of Changes in Equity | 15 |
Cash Flow Statement | 16 |
Notes to the Cash Flow Statement | 17 |
Notes to the Financial Statements | 19 |
Mobius Environmental Limited |
Company Information |
for the Year Ended 30 April 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Certified Accountants |
Statutory Auditor |
Beechey House |
87 Church Street |
Crowthorne |
Berkshire |
RG45 7AW |
Mobius Environmental Limited (Registered number: 07066307) |
Strategic Report |
for the Year Ended 30 April 2024 |
The directors present their strategic report for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
The business model |
Mobius Environmental is a provider of total solutions for food manufacturers, providing solutions to manage all by-products and waste created in the manufacturing of food. The company continues to be driven by its core ethos of clear, open book transparent trading, giving food factories a one stop shop for all waste and food by-product services. |
Key Performance Indicators |
- Total Customer Sites serviced has increased slightly for the year to 30th April 2024. |
- Revenue has decreased by 14.41% in the year to 30th April 2024 to £16.6m (2023 £19.41m) |
- Operating Profits have reduced by 23.63% from £838,061 in the year to 30th April 2023 to £640,038 in the year to 30th April 2024. |
Mobius Environmental has consolidated upon its growth path during the year to 30th April 2024. The business structure continues to be evolved as the business takes on extra staff and sites to service. Significant improvements to service and back-office systems have been made in the year, improving our offering to our customers. |
The Finance Director and his team monitor the cash position on a daily basis and provide regular reports to the board focusing on key performance indicators of the business including the overall level of debt, working capital requirements, cash position and trends, debtors and creditors days, waste levels and waste costs, stock levels and tonnage levels. |
Another Key indicator is the level of bad debts, which remains very low. Mobius Environmental credit check every customer annually and allocate different levels accordingly. |
Future developments & strategy |
Mobius Environmental is expecting an increase in turnover in the year to 30th April 2024. The commercial team have very clear targets in respect of the number of customer sites that will be needed to meet the objectives. The conversion of these targets though is likely to take time to feed into the financial results of the business. |
The business has recruited additional staff to deliver the expected growth. |
The business will continue to focus on its core competence, providing the highest possible level of service to its food factory customers. |
Mobius Environmental Limited (Registered number: 07066307) |
Strategic Report |
for the Year Ended 30 April 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Financial Risk Management |
The company's operations expose it to a variety of risks that include price risk, credit risk, liquidity risk and interest rate risk. The board monitor these risk elements at monthly board meetings to ensure steps have been taken to minimise these risks to the business. |
Price Risk |
The company enters into price fixings for materials and disposals, but manages any pricing risk by ensuring all costs are agreed back to back therefore minimising any price risk. |
Most fixings are created monthly and reviewed by management, and significant material fixings will be referred to the board to ensure proper scrutiny has been placed on the account. |
Credit Risk |
When appropriate, relevant credit checks are performed on potential customers services are agreed. The amount of exposure to any individual customer or service provider is controlled by means of a credit limit that is monitored regularly by management and in the case of a financially material value, by the Finance Director. |
Liquidity Risk |
Mobius Environmental uses a number of different short and medium term financing in order to maintain liquidity. This is managed to ensure the business always has sufficient funds to meet its ongoing liabilities and working capital needs, as well as planned capital expenditure and expansion capital. The debt is monitored and reviewed monthly by the Finance Director. |
Interest Rate Risk |
The business has finance on variable interest rates on its banking and finance facilities. The risk is monitored and reviewed by the Directors at group level. The Directors keep under regular review current market rates and anticipated future market trends, and discuss this regularly at board meetings. The risk is assessed as low currently, due to the relatively low nature of the debt involved. |
Health and Safety |
The Company has a strong and proactive compliance regime, with all accidents and incidents reported to board level and reviewed for any remedial actions. The Company's stated aim is to continue to improve health & safety and working environments for its entire staff. |
Standards |
The businesses internal focus is to drive up standards in all areas, logistics, health & safety, compliance and QA. |
Mobius Environmental Limited (Registered number: 07066307) |
Strategic Report |
for the Year Ended 30 April 2024 |
SECTION 172(1) STATEMENT |
Section 172 of the Companies Act 2006 ("the act") requires Directors to take into consideration the interests of stakeholders in their decision-making. A Director of a company must act in the way they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole, taking into account the factors as listed in section 172 of the Company Act 2006. The short form statement should be read in conjunction with the longer strategic report. |
Mobius Environmental Limited is a wholly owned subsidiary of SugaRich Limited, engagement with our shareholders and wider stakeholder groups plays a vital role throughout the SugaRich business. |
Stakeholders and engagement |
As part of the identification of key stakeholders, the directors have identified the following stakeholder groups with whom engagement is fundamental to the Company's ongoing success: |
" Employees |
" Suppliers |
" Customers |
" Communities and Environment |
" Governments |
" Shareholders |
Employees |
The company employs 21 people. Our people are central to the Company's success and employee engagement is crucial to embedding the Company culture and values, and to helping our people see how their efforts contribute to their Company's strategic objectives. Key issues include, health and safety, diversity and inclusion and engagement and development. During the year, the Company undertook regular surveys, a regular newsletter with quality content, and provided an updated intranet and continued internal communications. A yearly management meeting is held for all the senior managers in the business. |
Suppliers |
We use a wide variety of suppliers with many complex supply chains. Our supplier code of conduct sets out the values and standards on which we seek to build and maintain relationships, including commitments on ethical, environmental and other relevant matters including on key issues such as payment practices, responsible sourcing, supply chain sustainability, human rights and modern slavery. Most conversations are maintained on a face to face basis, and reported back into the board at regular meetings. |
Customers |
As well as providing a product that is great value for money, the safety and health of our customers is of paramount importance to the Company. The company engages with its customers on a daily basis mostly by phone or face to face meetings, ensuring their feedback is properly considered. The Board is regularly updated by each business division on key customers and key issues impacting customers and consumers. |
Communities and Environment |
Supporting our local community is an important part of the Company's approach to spread our values and mission. The Company has an energy reduction initiative, and is committed to seeking sustainable solutions to environmental challenges and adapting our operations to respond to changes in the natural environment. |
To achieve these goals the Company is always looking for ways to reduce energy use, reduce greenhouse gas emissions, manage waste, improve water management, and push waste up the waste hierarchy. |
Mobius Environmental Limited (Registered number: 07066307) |
Strategic Report |
for the Year Ended 30 April 2024 |
Governments |
The Company can be impacted by changes in laws and public policy, and to ensure that the company is represented in discussions, we take a leading role with our industry, liaising with Government on issues affecting our sector. |
The Board is briefed on the engagement at regular meetings. |
Shareholders |
The Company reports up to its shareholders, and ultimately to the board of SugaRich Limited, through the senior management of the business, the Company takes appropriate steps to ensure that its shareholders are kept up to date on key business activities and decisions. |
ON BEHALF OF THE BOARD: |
Mobius Environmental Limited (Registered number: 07066307) |
Report of the Directors |
for the Year Ended 30 April 2024 |
The directors present their report with the financial statements of the company for the year ended 30 April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a total waste management broker. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 April 2024. |
COMPANIES RESULTS |
The results for the year are set out on page 12. |
FUTURE DEVELOPMENTS |
Future developments and financial risk analysis are not shown in the directors report as they are instead included in the strategic report on pages 2 to 4. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
POST BALANCE SHEET EVENTS |
There have been no significant events affecting the company since the year end. |
GOING CONCERN |
The company has prepared budgets and forecasts that cover the period for 12 months following the date of authroised issue of the financial statements in order to assess going concern. It is anticipated that the company's level of activity will remain fairly constant over that period with similar results being attained in line with the current trading period. The company has also sought comfort from it parent company that they will provide financial support should it be required. 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. The directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and consequently have prepared the financial statements on a going concern basis. |
Mobius Environmental Limited (Registered number: 07066307) |
Report of the Directors |
for the Year Ended 30 April 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of PKB Accountants Limited as auditors of the company is to be be proposed at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Mobius Environmental Limited |
Opinion |
We have audited the financial statements of Mobius Environmental Limited (the 'company') for the year ended 30 April 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Mobius Environmental Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Mobius Environmental Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. |
Based on our understanding of the company and industry, we identified that the principal risks of non compliance with laws and regulations related to employment regulation and health and safety legislation, and we considered the effect to which non compliance might have a material effect on the financial statements. |
We also considered those laws and regulations that have a direct impact on the financial statements such as the companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting of inappropriate journal entries and management bias in accounting estimates. Audit procedures included: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", Companies Act 2006,Bribery Act 2010, Money Laundering regulations and relevant tax compliance regulations in the United Kingdom. |
. We understood how Mobius Environmental Limited is complying with those frameworks by making enquiries of management and those charged with governance and those responsible for compliance procedures. Our review and enquiries included the following procedures: |
. Review of accounting policies and completion of a disclosure checklist to assess compliance with FRS102 |
"The Financial Reporting Standard applicable in the UK and Republic of Ireland" and Company Law |
requirements; |
. Enquiry of entity staff in tax and compliance functions to identify any instances of non compliance with |
laws and regulations: |
. Review of any relevant correspondence with local tax authorities; and |
. Review of any relevant correspondence received from regulatory bodies |
Report of the Independent Auditors to the Members of |
Mobius Environmental Limited |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur by holding a discussion within the audit team which included identification of related parties, Understanding the company's business, the control environment and assessing the inherent risk for relevant assertions at the significant account level. We also held discussions with management and those charged with governance to gain an understanding of those areas of the financial statements which are susceptible to fraud, as identified by management. Following these procedures, we identified a risk of management override of control and risk of inappropriate revenue recognition. We gained an understanding of the entity level of controls and policies that the company applies. |
. Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved testing of a sample of revenue transactions recorded during the year, testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of transactions outside the normal course of the business and reviewing accounting estimates for bias. We enquired of senior members of the management team regarding their knowledge of any instances of non compliance with laws and regulations that could impact the financial statements. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Certified Accountants |
Statutory Auditor |
Beechey House |
87 Church Street |
Crowthorne |
Berkshire |
RG45 7AW |
Mobius Environmental Limited (Registered number: 07066307) |
Income Statement |
for the Year Ended 30 April 2024 |
30.4.24 | 30.4.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
Mobius Environmental Limited (Registered number: 07066307) |
Other Comprehensive Income |
for the Year Ended 30 April 2024 |
30.4.24 | 30.4.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Mobius Environmental Limited (Registered number: 07066307) |
Balance Sheet |
30 April 2024 |
30.4.24 | 30.4.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Debtors | 8 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 9 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Mobius Environmental Limited (Registered number: 07066307) |
Statement of Changes in Equity |
for the Year Ended 30 April 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 April 2024 |
Mobius Environmental Limited (Registered number: 07066307) |
Cash Flow Statement |
for the Year Ended 30 April 2024 |
30.4.24 | 30.4.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loans repaid by related parties | 175,718 | - |
Loans to related parties | - | (165,621 | ) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(3,190 |
) |
487,710 |
Cash and cash equivalents at end of year |
2 |
120,595 |
( |
) |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Cash Flow Statement |
for the Year Ended 30 April 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.4.24 | 30.4.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance income | - | (96 | ) |
751,933 | 917,155 |
Increase in trade and other debtors | ( |
) | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 120,595 | - |
Bank overdrafts | ( |
) |
120,595 | (3,190 | ) |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | - | 487,710 |
Bank overdrafts | ( |
) |
(3,190 | ) | 487,710 |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Cash Flow Statement |
for the Year Ended 30 April 2024 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.5.23 | Cash flow | At 30.4.24 |
£ | £ | £ |
Net cash |
Cash at bank | - | 120,595 | 120,595 |
Bank overdrafts | (3,190 | ) | 3,190 | - |
(3,190 | ) | 120,595 |
Total | (3,190 | ) | 123,785 | 120,595 |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements |
for the Year Ended 30 April 2024 |
1. | STATUTORY INFORMATION |
Mobius Environmental Limited is a private company, limited by shares, incorporated in England and Wales. The Company's registered office address can be found on the Company Information page. |
The presentation currency of the financial statements is the Pound Sterling (£). |
The functional currency of the company is Pound Sterling (£) |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The preparation of the financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the accounting policies. |
The company has taken advantage of the exemption under S400 of the Companies Act 2006 not to prepare group accounts as it is a wholly owned subsidiary of SugaRich Limited. The Company's financial statements are individual entity financial statements. The Company's parent includes the Company in its consolidated statements. Note 17 details where copies of the consolidated accounts can be obtained from. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
. 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; |
. Section 33 'Related Party Disclosures': |
. Compensation for key management personnel |
The following principal accounting policies have been applied: |
Going Concern |
The company has prepared budgets and forecasts that cover the period of 12 months to the date of the financial statements being authorised for issue in order to assess going concern. It is anticipated that the company's level of activity will remain fairly constant over that period with similar results being attained in line with the current trading period. The company has also sought comfort from it parent company that they will provide financial support should it be required. 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. The directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and consequently have prepared the financial statements on a going concern basis. |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Revenue recognition |
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. 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 the following conditions are satisfied:- |
- The company has transferred to the buyer the significant risks and rewards of ownership of the goods |
- 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 economic benefits associated with the transaction will flow to the company |
- The costs incurred or to be incurred in respect of the transaction can be measured reliably |
Specifically, revenue is recognised when goods are delivered and legal title is passed. |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided when the following conditions are satisfied: |
- The amount of revenue can be measured reliably; |
- it is probable that the company will receive consideration due in line with contract terms. |
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 the management. |
Depreciation is charged so as to allocate the cost of the assets less their residual value over their estimated useful lives on the following basis: |
Consumables | - 33% on costs and 25% on reducing balance |
Motor vehicles | - 25% on reducing balance |
Plant and machinery | - 15% on reducing balance |
Short Leasehold | - 25% on reducing balance |
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 any costs of disposals and are recognised in the Profit and Loss Account. |
Assets held under finance leases are depreciated in the same manner as owned assets. |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
At each balance sheet date, the Company reviews the carrying amounts of its Tangible Fixed Assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined ( net of depreciation ) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Gains and losses on disposal are determined by comparing the proceeds with the carrying amounts and are recognised within 'other operating income' in the Income Statement. |
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 profits differs from net profit as reported in the profit and loss account as it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date. |
Deferred Tax |
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. |
Hire purchase and leasing commitments |
Rentals payable under operating leases are charged to the profit or loss on a straight line basis over the period of the lease. |
Assets that are held by the Company under leases which transfer to the Company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases. |
Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payment. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expense and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit and loss account. |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight - line basis. |
Retirement benefits |
Defined contribution pension plan |
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 the income statement 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. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and Cash Equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Creditors |
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Finance costs |
Finance costs are charged to the Income Statement over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments. |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with 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. |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right of set off the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liability simultaneously. |
Impairment of financial assets |
Financial assets are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit and loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Basic Financial liabilities |
Basic financial liabilities, including trade and other creditors, amounts due to fellow group companies, accruals, 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. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers, Accounts 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 payables with no stated interest rate or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
Equity instruments |
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
Provisions for liabilities |
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, and it is probable that the company will be required to settle the obligation and that the amount of the obligation can be reliably estimated. |
Provisions are charged as an expense to the Income Statement in the year the company becomes aware of the obligation and are measured at the best estimate of the amount required to settle the obligation at the reporting date, taking into account relevant risks and uncertainties. |
Interest income |
Interest income is recognised in the Income Statement using the effective interest method. |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Judgements in applying accounting policies and key sources of estimation uncertainty |
In the application of the Company's accounting policies, management is required to make judgement, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
(a) Critical accounting estimates and assumptions |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: |
(i) 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 physical condition and economic utilisation of the assets. See note 7 for the carrying amount of the assets and the accounting policies note Tangible Fixed Assets for the useful economic lives of each class of asset. |
(ii) 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 debtors and historical experience. See note 8 for the net carrying amount of the debtors. |
(iii) Impairment of creditors |
The company makes an estimate of the payable value of trade and other creditors including accruals. When assessing impairment of trade and other creditors including accruals, management considers factors including the ageing profile of the balances and historical experience.. See note 9 for the net carrying amount of the creditors. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. All turnover is generated in the United Kingdom. |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
4. | EMPLOYEES AND DIRECTORS |
30.4.24 | 30.4.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.4.24 | 30.4.23 |
Sales | 6 | 7 |
Admin | 12 | 12 |
Production | 2 | 2 |
Directors | 1 | - |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.4.24 | 30.4.23 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Rental of equipment |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.4.24 | 30.4.23 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 25% (2023 - 19.49%). |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
30.4.24 | 30.4.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Deferred taxation | (340 | ) | 36,118 |
Accrual round sum provisions | (2,500 | ) | - |
Total tax charge | 161,388 | 165,139 |
7. | TANGIBLE FIXED ASSETS |
Improvements |
to | Motor | Plant and |
property | Consumables | vehicles | Machinery | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 May 2023 |
Additions |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.4.24 | 30.4.23 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Tax |
Prepayments |
The amounts owed by group undertakings are payable on demand. |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.4.24 | 30.4.23 |
£ | £ |
Bank loans and overdrafts (see note 10) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 111,097 | 48,205 |
Other creditors |
Accruals |
10. | LOANS |
An analysis of the maturity of loans is given below: |
30.4.24 | 30.4.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
11. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
30.4.24 | 30.4.23 |
£ | £ |
Within one year |
Between one and five years |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
12. | SECURED DEBTS |
The company entered into a Debenture with National Westminster Bank Plc on 22 September 2015. All assets of the company are secured by way of Fixed and Floating charges. |
13. | PROVISIONS FOR LIABILITIES |
30.4.24 | 30.4.23 |
£ | £ |
Deferred tax | 113,606 | 113,945 |
Deferred |
tax |
£ |
Balance at 1 May 2023 |
Accelerated capital allowances | (339 | ) |
Balance at 30 April 2024 |
There are no unprovided deferred tax provisions. |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.4.24 | 30.4.23 |
value: | £ | £ |
Ordinary shares | £1 | 100,025 | 100,025 |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 May 2023 |
Profit for the year |
At 30 April 2024 |
16. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost and charge represents contributions payable by the company to the fund and amounted to £22,686 (2023: £21,451). |
The outstanding contributions at the year end totalled £2,357 (2023: £840) |
Mobius Environmental Limited (Registered number: 07066307) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2024 |
17. | ULTIMATE PARENT COMPANY |
SugaRich Limited is regarded by the directors as being the company's ultimate parent company. |
Group accounts have been prepared and can be obtained from: |
8 Minster Court |
Tuscam Way |
Yorktown Business Park |
Camberley |
Surrey |
GU15 3YY |
18. | CAPITAL COMMITMENTS |
30.4.24 | 30.4.23 |
£ | £ |
Contracted but not provided for in the |
financial statements |
19. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
20. | ULTIMATE CONTROLLING PARTY |
The company has no immediate controlling party. |