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Registered number: 09642904









EDWARDS RECYCLING HOLDINGS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
S R Edwards 
B Edwards 




Registered number
09642904



Registered office
Old Station Road

Loughton

Essex

IG10 PL




Independent auditors
Haslers
Chartered  Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
EDWARDS RECYCLING HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1
Directors' Report
 
2
Directors' Responsibilities Statement
 
3
Independent Auditors' Report
 
4 - 7
Consolidated Statement of Comprehensive Income
 
8
Consolidated Balance Sheet
 
9
Company Balance Sheet
 
10
Consolidated Statement of Changes in Equity
 
11
Company Statement of Changes in Equity
 
12
Consolidated Statement of Cash Flows
 
13 - 14
Consolidated Analysis of Net Debt
 
15
Notes to the Financial Statements
 
16 - 31


 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The principal activity of the group in the year under review continued to be that of recycling waste. 

Business review
 
The group has had another successful year with margins remaining stable. 

Principal risks and uncertainties
 
The group minimises risks by constantly monitoring:
The market prices of its products to ensure margins remain consistent. 
It's cash flow to ensure the company is financially stable. 
The useful life and operational effectiveness of its machinery. 

Key performance indicators
 
Key financial performance indicators are gross profit and net profit margins. 


This report was approved by the board on 10 January 2025 and signed on its behalf.



................................................
S R Edwards
Director

Page 1

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
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.

Directors

The directors who served during the year were:

S R Edwards 
B Edwards 

Results and dividends

The profit for the year, after taxation, amounted to £7,626,810 (2023 - £1,903,099).

A dividend of £399,000 (2023: £503,500) has been paid in the year.

Future developments

The group looks to continually invest in new premises and machinery with the aim to increase production and efficiency. 

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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Haslers will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 10 January 2025 and signed on its behalf.
 





................................................
S R Edwards
Director

Page 2

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EDWARDS RECYCLING HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Edwards Recycling Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the parent Company's affairs as at 31 March 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Group 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 4

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EDWARDS RECYCLING HOLDINGS LIMITED (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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EDWARDS RECYCLING HOLDINGS LIMITED (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 Group 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:

Based on our understanding of the legal and regulatory frameworks that are applicable to the entity we have considered those that have a direct and indirect material impact on the financial statements and operations of the company. These include but are not limited to the Companies Act 2006, GDPR, Employment and Health & Safety legislation, Environmental regulation and tax legislation.
We obtained an understanding of how the Company are complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of documentation generated and assessing the extent of the compliance with the relevant laws and regulations.
We discussed among the audit engagement team regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for material misstatements due to fraud are in the following areas, and our specific procedures performed to address these are describe below:
The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact profit for the year and management bias in accounting estimates.
Procedures performed to address these were as follows:
• Walkthrough testing was carried out to identify and assess the design effectiveness of controls     management have in place to prevent and detect fraud, including known or suspected instances of non-  compliance with laws and regulations and fraud,
• Understanding how those charged with governance considered and addressed the potential for override   of controls or other inappropriate influence over the financial reporting process,
• Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of  material misstatements due to fraud,
• Assessing the appropriateness of accounting estimates and challenging any significant assumptions or    judgements made by management,
• Incorporating testing of manual journal entries that were posted throughout the year,
• Selecting specific revenue transactions based on risk criteria and obtaining supporting documentation    including sales invoice and delivery documentations to ensure revenue was appropriately recorded,  
• Reviewing specific cost of sale transactions based on risk criteria and reviewing delivery documentation   
Page 6

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EDWARDS RECYCLING HOLDINGS LIMITED (CONTINUED)


to ensure the expense was appropriately recorded,
• Evaluated the business rationale of any significant transactions that are unusual or outside the normal    course of business.


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.


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.





Matthew Wells (Senior Statutory Auditor)
for and on behalf of
Haslers
Chartered  Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

10 January 2025
Page 7

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 5 
12,458,492
16,371,787

Cost of sales
  
(8,018,427)
(10,392,687)

Gross profit
  
4,440,065
5,979,100

Administrative expenses
  
3,614,644
(3,468,337)

Operating profit
 6 
8,054,709
2,510,763

Interest receivable and similar income
 10 
8,277
19,368

Interest payable and similar expenses
 11 
(16,358)
(63,480)

Profit before taxation
  
8,046,628
2,466,651

Tax on profit
 12 
(419,818)
(563,552)

Profit for the financial year
  
7,626,810
1,903,099

Profit for the year attributable to:
  

Owners of the parent Company
  
7,626,810
1,903,099

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

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

The notes on pages 16 to 31 form part of these financial statements.

Page 8

 
EDWARDS RECYCLING HOLDINGS LIMITED
REGISTERED NUMBER: 09642904

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 15 
15,726,739
8,447,512

  
15,726,739
8,447,512

Current assets
  

Stocks
 17 
70,000
50,000

Debtors: amounts falling due within one year
 18 
3,019,498
3,507,697

Cash at bank and in hand
 19 
640,809
1,624,814

  
3,730,307
5,182,511

Creditors: amounts falling due within one year
 20 
(2,274,069)
(3,014,935)

Net current assets
  
 
 
1,456,238
 
 
2,167,576

Total assets less current liabilities
  
17,182,977
10,615,088

Creditors: amounts falling due after more than one year
 21 
(87,417)
(794,586)

Provisions for liabilities
  

Deferred tax
 24 
(371,827)
(324,579)

  
 
 
(371,827)
 
 
(324,579)

Net assets
  
16,723,733
9,495,923


Capital and reserves
  

Called up share capital 
 25 
100
100

Profit and loss account
 26 
16,723,633
9,495,823

  
16,723,733
9,495,923


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 January 2025.




................................................
S R Edwards
Director

The notes on pages 16 to 31 form part of these financial statements.

Page 9

 
EDWARDS RECYCLING HOLDINGS LIMITED
REGISTERED NUMBER: 09642904

COMPANY BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 16 
102
102

  
102
102

Current assets
  

Debtors: amounts falling due within one year
 18 
2,399,998
2,399,998

  
2,399,998
2,399,998

Creditors: amounts falling due within one year
 20 
-
(5,250)

Net current assets
  
 
 
2,399,998
 
 
2,394,748

Total assets less current liabilities
  
2,400,100
2,394,850

  

  

Net assets
  
2,400,100
2,394,850


Capital and reserves
  

Called up share capital 
 25 
100
100

Profit and loss account brought forward
 26 
2,394,750
2,400,000

Profit for the year
 26 
404,250
498,250

Dividends paid

 13 

(399,000)
(503,500)

Profit and loss account carried forward
  
2,400,000
2,394,750

  
2,400,100
2,394,850


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 January 2025.


................................................
S R Edwards
Director

The notes on pages 16 to 31 form part of these financial statements.

Page 10
 

 
EDWARDS RECYCLING HOLDINGS LIMITED


 

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



Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity


£
£
£
£



At 1 April 2022
100
8,096,224
8,096,324
8,096,324



Comprehensive income for the year


Profit for the year
-
1,903,099
1,903,099
1,903,099



Contributions by and distributions to owners


Dividends: Equity capital
-
(503,500)
(503,500)
(503,500)





At 1 April 2023
100
9,495,823
9,495,923
9,495,923



Comprehensive income for the year


Profit for the year
-
7,626,810
7,626,810
7,626,810



Contributions by and distributions to owners


Dividends: Equity capital
-
(399,000)
(399,000)
(399,000)



At 31 March 2024
100
16,723,633
16,723,733
16,723,733



Page 11

 

 
EDWARDS RECYCLING HOLDINGS LIMITED


 

COMPANY 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
100
2,400,000
2,400,100



Comprehensive income for the year


Profit for the year
-
498,250
498,250



Contributions by and distributions to owners


Dividends: Equity capital
-
(503,500)
(503,500)





At 1 April 2023
100
2,394,750
2,394,850



Comprehensive income for the year


Profit for the year
-
404,250
404,250



Contributions by and distributions to owners


Dividends: Equity capital
-
(399,000)
(399,000)



At 31 March 2024
100
2,400,000
2,400,100



Page 12
 
EDWARDS RECYCLING HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
7,626,810
1,903,099

Adjustments for:

Depreciation of tangible assets
580,121
552,990

Loss on disposal of tangible assets
(6,507,622)
(9,274)

Interest paid
16,358
63,480

Interest received
(8,277)
(19,368)

Taxation charge
419,818
563,552

(Increase) in stocks
(20,000)
(50,000)

Decrease/(increase) in debtors
488,200
(1,294,306)

(Decrease) in creditors
(308,905)
(203,492)

Corporation tax (paid)
(655,431)
(342,326)

Net cash generated from operating activities

1,631,072
1,164,355


Cash flows from investing activities

Purchase of tangible fixed assets
(8,944,247)
(1,941,191)

Sale of tangible fixed assets
7,592,523
9,274

Interest received
8,277
19,368

HP interest paid
(12,516)
(13,208)

Net cash from investing activities

(1,355,963)
(1,925,757)
Page 13

 
EDWARDS RECYCLING HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of loans
(795,085)
(375,149)

Repayment of/new finance leases
(61,187)
(92,613)

Dividends paid
(399,000)
(503,500)

Interest paid
(3,842)
(50,272)

Net cash used in financing activities
(1,259,114)
(1,021,534)

Net (decrease) in cash and cash equivalents
(984,005)
(1,782,936)

Cash and cash equivalents at beginning of year
1,624,814
3,407,750

Cash and cash equivalents at the end of year
640,809
1,624,814


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
640,809
1,624,814

640,809
1,624,814


The notes on pages 16 to 31 form part of these financial statements.

Page 14

 
EDWARDS RECYCLING HOLDINGS LIMITED
 

CONSOLIDATED 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

1,624,814

(984,005)

640,809

Debt due after 1 year

(689,959)

689,959

-

Debt due within 1 year

(106,428)

106,428

-

Finance leases

(287,873)

61,187

(226,686)


540,554
(126,431)
414,123

The notes on pages 16 to 31 form part of these financial statements.

Page 15

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Edwards Recycling Holdings Limited is a private company, limited by shares and incorporated in England and Wales, United Kingdom, with a registration number 09642904. The address of the registered office is Old Station Road, Loughton, Essex, England, IG10 4PL. The company's principal activity is that of a holding company. The principal activities of the group are disclosed in the note 4 to the accounts.


2.


Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

3.Accounting policies

 
3.1

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 Group management to exercise judgement in applying the Group's accounting policies (see note 4).
The Company's level of rounding is to the nearest Pound.

The following principal accounting policies have been applied:

Page 16

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.Accounting policies (continued)

 
3.2

Turnover

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

Rendering of services

Turnover 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 turnover can be measured reliably;
it is probable that the Group 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.

Turnover from collecting waste
Turnover is recognised at the point in which waste is collected from customers.

 
3.3

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
3.4

Finance costs

Finance costs are charged to profit or loss 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.

 
3.5

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
3.6

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Page 17

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.Accounting policies (continued)

 
3.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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 corporation 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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.


 
3.8

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 following methods.

Depreciation is provided on the following basis:

Freehold property
-
2%
Straight line
Plant and machinery
-
25%
Reducing basis
Motor vehicles
-
25%
Reducing basis
Fixtures and fittings
-
25%
Reducing basis

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.

Page 18

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.Accounting policies (continued)

  
3.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. 
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
3.10

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.

 
3.11

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.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
3.12

Creditors

Short-term creditors are measured at the 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.

 
3.13

Provisions for liabilities

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.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 19

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.Accounting policies (continued)

 
3.14

Financial instruments


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

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 Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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.

Page 20

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.Accounting policies (continued)


3.14
Financial instruments (continued)


Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.

 
3.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


4.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the director is required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The director's judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
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.
The director does not believe that there have been judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements.

Page 21

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Waste collection
12,458,492
16,371,787


All turnover arose within the United Kingdom.


6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation
580,121
552,990

Auditors remuneration
27,000
27,000

Defined contributions pension cost
42,267
43,183


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
29,000
29,000

Fees payable to the Company's auditors in respect of:

The auditing of accounts of associates of the Company
27,000
27,000

Taxation compliance services
2,000
2,000

Page 22

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
1,929,239
2,030,559

Social security costs
214,985
232,704

Cost of defined contribution scheme
42,267
43,183

2,186,491
2,306,446


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Employees
51
51
2
2


9.


Directors' remuneration




During the year retirement benefits were accruing to no directors (2023 - NIL) in respect of defined contribution pension schemes.


10.


Interest receivable

2024
2023
£
£


Other interest receivable
8,277
19,368


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
3,842
5,487

Other loan interest payable
-
44,785

Finance leases and hire purchase contracts
12,516
13,208

16,358
63,480

Page 23

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
372,570
407,480


Total current tax
372,570
407,480

Deferred tax


Origination and reversal of timing differences
47,248
156,072

Total deferred tax
47,248
156,072


Tax on profit
419,818
563,552

Factors affecting tax charge for the year

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

2024
2023
£
£


Profit on ordinary activities before tax
8,046,628
2,466,651


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
2,011,657
468,664

Effects of:


Capital allowances for year in excess of depreciation
-
80,420

Rollover relief on profit on disposal of fixed assets
(1,622,484)
(141,604)

Other differences leading to an increase (decrease) in the tax charge
(16,603)
-

Deferred tax
47,248
156,072

Total tax charge for the year
419,818
563,552


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 24

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Dividends

2024
2023
£
£


Dividends
399,000
503,500


14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £404,250 (2023 - £498,250).


15.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 April 2023
7,264,331
2,297,157
1,427,279
85,109
11,073,876


Additions
8,430,075
47,825
465,516
832
8,944,248


Disposals
(1,377,889)
-
(42,209)
-
(1,420,098)



At 31 March 2024

14,316,517
2,344,982
1,850,586
85,941
18,598,026



Depreciation


At 1 April 2023
524,758
1,222,891
822,064
56,649
2,626,362


Charge for the year on owned assets
91,764
259,318
221,805
7,234
580,121


Disposals
(297,051)
-
(38,146)
-
(335,197)



At 31 March 2024

319,471
1,482,209
1,005,723
63,883
2,871,286



Net book value



At 31 March 2024
13,997,046
862,773
844,863
22,058
15,726,740



At 31 March 2023
6,739,572
1,074,266
605,215
28,460
8,447,513

Page 25

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           15.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
13,997,046
6,739,572



16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost 


At 1 April 2023
102



At 31 March 2024
102





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Edwards Waste Paper Limited
Old Station Road, Loughton, Essex, England, IG10 4PL
Ordinary
100%
Edwards Recycling Limited
Old Station Road, Loughton, Essex, England, IG10 4PL
Ordinary
100%

Page 26

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Stocks

Group
Group
2024
2023
£
£

Finished goods and goods for resale
70,000
50,000


The difference between purchase price or production cost of stocks and their replacement cost is not material.


18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
1,179,927
1,983,964
-
-

Amounts owed by group undertakings
-
-
2,399,998
2,399,998

Other debtors
50,881
903,809
-
-

Prepayments and accrued income
1,788,690
619,924
-
-

3,019,498
3,507,697
2,399,998
2,399,998



19.


Cash and cash equivalents

Group
Group
2024
2023
£
£

Cash at bank and in hand
640,809
1,624,814


Page 27

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
-
105,126
-
-

Trade creditors
1,547,203
1,736,619
-
-

Corporation tax
124,620
407,480
-
-

Other taxation and social security
216,734
321,720
-
-

Obligations under finance lease and hire purchase contracts
139,269
183,246
-
-

Other creditors
9,935
9,729
-
-

Accruals and deferred income
236,308
251,015
-
5,250

2,274,069
3,014,935
-
5,250



21.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£
£

Bank loans
-
689,959

Net obligations under finance leases and hire purchase contracts
87,417
104,627

87,417
794,586




Page 28

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£
£

Amounts falling due within one year

Bank loans
-
105,126

Amounts falling due 1-2 years

Bank loans
-
105,126

Amounts falling due 2-5 years

Bank loans
-
315,377

Amounts falling due after more than 5 years

Bank loans
-
269,456

-
795,085



23.


Financial instruments

Group
Group
2024
2023
£
£

Financial assets

Financial assets measured at fair value through profit or loss
640,809
1,624,814




Financial assets measured at fair value through profit or loss comprise of cash in bank.

Page 29

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

24.


Deferred taxation


Group



2024


£






At beginning of year
(324,579)


Charged to profit or loss
(99,789)


Utilised in year
52,541



At end of year
(371,827)







Group
Group
2024
2023
£
£

Accelerated capital allowances
(371,827)
(324,579)


25.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary share shares of £1.00 each
100
100



26.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.


27.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounts to £42,267 (2023: £43,183).
Contributions totalling £8,178  (2023: £8,427) were payable to the fund at the balance sheet date.

Page 30

 
EDWARDS RECYCLING HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

28.


Related party transactions

At the year-end the following amounts were due from / (to) other related parties:


2024
2023
£
£

Key management personnel
(1,757)
(772)


29.


Controlling party

The controlling party is Mrs B Edwards.

Page 31