Company registration number 04866401 (England and Wales)
INCINER8 LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
INCINER8 LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 12
INCINER8 LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
4
467,963
292,563
Tangible assets
5
461,262
493,918
Investments
6
1
1
929,226
786,482
Current assets
Stocks
1,352,915
969,801
Debtors
7
4,947,197
3,686,039
Cash at bank and in hand
923,501
2,026,514
7,223,613
6,682,354
Creditors: amounts falling due within one year
8
(3,624,313)
(2,702,925)
Net current assets
3,599,300
3,979,429
Total assets less current liabilities
4,528,526
4,765,911
Provisions for liabilities
(16,808)
(12,308)
Net assets
4,511,718
4,753,603
Capital and reserves
Called up share capital
202
202
Profit and loss reserves
4,511,516
4,753,401
Total equity
4,511,718
4,753,603

The directors of the company have elected not to include a copy of the trueincome statement within the financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 28 January 2025 and are signed on its behalf by:
Mr D Spencer
Director
Company registration number 04866401 (England and Wales)
INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
1
Accounting policies
Company information

Inciner8 Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, Canning Road Industrial Estate, Canning Road, Southport, PR9 7SN.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

The company generated a pre-tax trueloss for the year of £360,975 (2023: pre-tax profit of £683,603) and has net assets of £4,511,718 at 30 April 2024 (2023: £4,753,603), together with cash reserves of £923,501 (2023: £2,026,514) at that date.

 

December 2024 has seen the refinance of the business with a working capital injection from the investors of £950k. Alongside this, the group has also renewed the financial agreement with Shawbrook Bank which sees the loan agreement extended for an additional 2 years to November 2027. The covenants attached to the financial agreement have also been revised. The directors have prepared financial forecasts which include the impact of the working capital injection and the renewed and extended financial agreement which demonstrate that the business should have the facilities it requires to trade and will be able to meet the revised financial covenants.

 

The accounts have been prepared on a going concern basis which assumes the company will have sufficient funds to continue to pay its debts as and when they fall due and thus continue to trade. In making their assessment the directors have reviewed and considered the expected performance of the group, its key revenue streams and its cash flows. This has been modelled for a period covering 12 months from the date of signing these financial statements. The directors have prepared financial forecasts which include the impact of the working capital injection and the renewed and extended financial agreement which demonstrate that the business should have the facilities it requires to trade and will be able to meet the revised financial covenants. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future based on its forecasts and projections.

INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 3 -
1.3
Turnover

Turnover is taken into account progressively and in accordance with UK applicable accounting standards relating to long term contracts.

 

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the period end date, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the period in which they are first foreseen. In accordance with FRS 102, the balance of payments on account in excess of amounts matched with turnover and offset against long term balances, is classified as payments on account and separately disclosed within creditors.

 

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets other than goodwill

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

 

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

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

Software
25% reducing balance
Development costs
25% reducing balance
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Leasehold land and buildings
4% straight line
Plant and equipment
25% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 4 -

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

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

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

 

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

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

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 5 -
Basic financial assets

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

Other financial assets

Derivatives, including forward exchange contracts, are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately in finance costs or income as appropriate. The company does not currently apply hedge accounting for foreign exchange derivatives.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 6 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.17

Prior year adjustment

The directors have revisited the presentation of customer deposits received in respect of contracts in progress at the prior year end date. The necessary adjustments have been applied retrospectively by way of prior year adjustment in accordance with FRS 102. Details of the impact of the prior year adjustment are disclosed in note 15.

INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2
Employees

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

2024
2023
Number
Number
Total
39
40
3
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements
22,340
21,275

The fees set out above are the fees for the group which are met by the company.

4
Intangible fixed assets
Other
£
Cost
At 1 May 2023
325,801
Additions
211,112
At 30 April 2024
536,913
Amortisation and impairment
At 1 May 2023
33,238
Amortisation charged for the year
35,712
At 30 April 2024
68,950
Carrying amount
At 30 April 2024
467,963
At 30 April 2023
292,563
INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2023
524,779
336,502
861,281
Additions
-
0
18,442
18,442
At 30 April 2024
524,779
354,944
879,723
Depreciation and impairment
At 1 May 2023
141,673
225,690
367,363
Depreciation charged in the year
20,991
30,107
51,098
At 30 April 2024
162,664
255,797
418,461
Carrying amount
At 30 April 2024
362,115
99,147
461,262
At 30 April 2023
383,106
110,812
493,918
6
Fixed asset investments
2024
2023
£
£
Shares in group undertakings
1
1
7
Debtors
2024
2023
as restated
Amounts falling due within one year:
£
£
Trade debtors
402,367
285,565
Amounts owed by group undertakings
3,350,979
2,086,252
Other debtors
1,193,851
1,314,222
4,947,197
3,686,039

Amounts owed by group undertakings are interest free and payable on demand.

 

Note 11 to the financial statements provides details on guarantees and security.

 

INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,455,385
1,100,129
Amounts owed to group undertakings
-
0
3,962
Taxation and social security
133,479
36,620
Other creditors
2,035,449
1,562,214
3,624,313
2,702,925

Amounts owed to group undertakings are unsecured, interest free, and repayable on demand.

9
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
52,670
58,054

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. The pension cost charge represents contributions payable by the company to the fund.

 

Contributions totalling £12,598 (2023: £18,769) were payable to the fund at the balance sheet date and are included in creditors.

10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

Opinion

In our opinion the financial statements:

Emphasis of matter

We draw attention to note 1.2 of the financial statements, which describes management’s overview of the going concern basis for the company and the post year-end refinance that has taken place. Our opinion is not modified in respect of this matter.

Senior Statutory Auditor:
Andrew Moss BA FCA
Statutory Auditor:
DSG Audit
Date of audit report:
28 January 2025
INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
11
Financial commitments, guarantees and contingent liabilities

The company has indemnified its bankers in respect of guarantees provided by the bank to customers for product supplies (£175,000) and to HMRC in respect of deferred duty (£5,000).

 

The company has granted a charge to HSBC to provide security over cash deposits limited to the sum of £200,000.

 

The company has granted a charge to Shawbrook Bank to secure a guarantee in respect of borrowings owed to Shawbrook Bank due from the company, Inciner8 Holdings Limited, Heat Midco Limited, and Heat Midco 2 Limited.

 

The company has granted a debenture to Chiltern Capital Nominees (Heat) Limited (the security trustee for the "Secured Parties": Chiltern Capital Nominees (Heat) Limited, the company and each of the group companies listed below, and the holders of the loan notes issued by the ultimate parent company, Heat Holdco Limited) to secure a composite guarantee given under an intercreditor deed in respect of borrowings owed to the Secured Parties due from the company, Inciner8 Holdings Limited, Heat Midco Limited, Heat Midco 2 Limited and Heat Holdco Limited.

 

The directors confirm that there are no other commitments, guarantees, or contingent liabilities at 30 April 2024.

12
Related party transactions

No transactions with related parties were undertaken such as are required to be disclosed.

13
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
Total
770,000
784,000
14
Parent company

The immediate parent company is Inciner8 Holdings Limited and the ultimate parent company is Heat Holdco Limited which does not prepare consolidated financial statements which are available to the public by virtue of the exemption available due to the size of the group.

INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
15
Prior period adjustment

The directors have revisited the application of cut-off to sales transactions around the year end of the previous financial year end date of 30 April 2023, and identified certain transactions that were included in turnover in the year ended 30 April 2023 that ought to have been recognised in the subsequent financial year ended 30 April 2024.

 

The correction of these material items has been applied retrospectively by way of a prior year adjustment. The effect of the prior year adjustment is to decrease the value of other debtors (£838,103) resulting in an overall reduction of balance sheet net assets and shareholders' funds at 30 April 2023 of £838,183 to £4,753,603.

 

The directors have also restated the comparative Profit and Loss Account for the year ended 30 April 2023 to decrease the reported profit for the year then ended due to a decrease in reported turnover (£1,494,605) and cost of sales (£656,502) resulting in a restated profit before tax for the year ended 30 April 2023 of £693,082.

Changes to the balance sheet
As previously reported
Adjustment
As restated at 30 Apr 2023
£
£
£
Fixed assets
Other intangibles
292,563
-
292,563
Tangible assets
493,918
-
493,918
Investments
1
-
1
786,482
-
786,482
Current assets
Stocks
969,801
-
969,801
Debtors due within one year
4,524,142
(838,103)
3,686,039
Bank and cash
2,026,514
-
2,026,514
7,520,457
(838,103)
6,682,354
INCINER8 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
15
Prior period adjustment
As previously reported
Adjustment
As restated at 30 Apr 2023
£
£
£
(Continued)
- 12 -
Creditors due within one year
2,702,925
-
2,702,925
Net current assets
4,817,532
(838,103)
3,979,429
Total assets less current liabilities
5,604,014
(838,103)
4,765,911
Provisions for liabilities
Deferred tax
(12,308)
-
(12,308)
Net assets
5,591,706
(838,103)
4,753,603
Capital and reserves
Share capital
202
-
202
Profit and loss reserves
5,591,504
(838,103)
4,753,401
Total equity
5,591,706
(838,103)
4,753,603
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