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Registered number: 02045340










MTS Cleansing Services Limited










Annual Report and Financial Statements

For the Year Ended 30 April 2024

 
MTS Cleansing Services Limited
 

Company Information


Directors
Mr Brian A Crust 
Mr Keith A Crust 
Mr Antony K Crust 
Mr Allen C Crust 
Mr Brian S Crust 
Mr Terry S Crust 
Mr Christopher R Henderson 
Mr Luke Potts 
Mr Paul J Lee (appointed 24 January 2024)




Company secretary
Mr Antony K Crust



Registered number
02045340



Registered office
Stanley House
Anthonys Way

Medway City Estate

Rochester

Kent

ME2 4NF




Independent auditors
Kreston Reeves LLP

Maritime Place

Quayside

Chatham Maritime

Chatham

Kent

ME4 4QZ





 
MTS Cleansing Services Limited
 

Contents



Page
Strategic report
 
1 - 4
Directors' report
 
5
Directors' responsibilities statement
 
6
Independent auditors' report
 
7 - 10
Profit and loss account
 
11
Balance sheet
 
12
Statement of changes in equity
 
13
Notes to the financial statements
 
14 - 33


 
MTS Cleansing Services Limited
 

Strategic Report
For the Year Ended 30 April 2024

Introduction
 
The directors present the strategic report for the year ended 30 April 2024.

Business review
 
The year ended 30th April 2024 resulted in another record turnover of £150 million.  This underlines the tremendous growth experienced by the company in the past few years with a 38.6% increase over last year’s previous record.
The significant increase in turnover during the year was derived from our large water utility customers as they continue to prioritise the reduction of pollution and flooding events.  
The impact of climate change over the past few years is extremely evident within our region, as on an annual basis, we now regularly sustain periods of very wet and very dry periods, coupled with the increasing demand for housing development within our region increases the pressures placed upon the sewage infrastructure. This pressure results in the infrastructure becoming overwhelmed which in turn increases the volume of emergency call outs from our customers, to prevent environmental pollution and property damage.
The principal activity of the company continues to be that of providing liquid waste management and drainage solutions to the utilities industry as well as individuals and small businesses. The fleet of vehicles now owned or leased by the company is circa 400 and we continue to renew and expand our fleet in line with the demands of the business. The company continues to see increased costs and lead times for new vehicles and parts post-COVID and Russian invasion of Ukraine.  The ongoing cost of living crisis also continues to put upward pressure on wages.
However, at the point of signing these accounts, trading has been more difficult than in previous years.  As the current AMP (Asset Maintenance Programme) comes to an end in March 2025, the water utility companies are restricting spending.
The company is subject to key performance indicators to the water authorities in relation to levels of service, recycling, health & safety, response times and financial performance and such KPI’s always average in the high 90 percentages. General key performance indicators in the year were as follows:
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Principal risks and uncertainties
 
The Directors consider that the main risk to turnover are any changes in plans or strategies of the water utility companies. However, the company will combat this by maintaining the quality of service which it is known for. The Directors are not complacent and will work with their clients to ensure the quality and financial viability for both the client and the company.
Another significant risk facing the company is seasonality based on wet weather conditions.  Demand for tankers is higher when there are periods of significant rainfall and therefore income may be negatively impacted by extended dry periods.  The Directors look to mitigate this risk by promoting other income streams that are not as weather dependent such as training and CCTV surveying.
After the balance sheet date, our main customer, Southern Water Services Limited, conducted a tender process for the award of the Waste Management and Recycling Services Agreement which we currently service.  The Company was pleased to be awarded this work again in the Kent area for planned and emergency tankering, although we were not successful in our bid for the remainder of the Southern Water area for this type of work.
 
Page 1

 
MTS Cleansing Services Limited
 

Strategic Report (continued)
For the Year Ended 30 April 2024

This contract is due to transition in September 2025.  Although it is difficult to estimate the impact of the loss of this work due to the strong weather seasonality, the Directors’ current assessment is that the lost work could represent 60% - 80% of recent turnover with Southern Water. 
The company has extensive experience of adjusting resources to reflect income levels especially during previous AMP transitions which cycle every five years.  The Directors will utilise this experience to restructure operations, reduce costs and rationalise resources where required. We are confident that such actions will allow us to effectively manage cashflow during the transition period.  
The Directors are confident that the company’s level of resources in both plant and highly trained and experienced staff will enable us to react quickly to opportunities.  
Since the balance sheet date the Company has already been successful in obtaining work orders to assist the Southern Water Clean Rivers and Seas Taskforce and we are hopeful that this work will grow significantly.  We will also be actively pursuing other opportunities with water utilities and other companies, with several significant tenders due to be published imminently.  
Whilst the Directors are confident that they will be able to pivot the company’s resources to new opportunities, at the time of signing these accounts, this has not yet crystallised into contracts.  Therefore, the company’s future income is subject to material uncertainty but as discussed above, the Directors have plans to rationalise resources to match turnover.  
Other risks facing the company, apart from the current bias of work for the utility companies in our sales mix, come from some of our direct costs. However, the company can charge some of these costs directly onto the client. With the assistance of its sister company Composting Facilities Services Limited, disposal costs can also be controlled. With such a large fleet fuel costs can have a significant impact from price fluctuations and these need to monitored and managed on a regular basis. The directors are aware fuel prices fluctuate and wherever possible new contracts tend to have clauses included which allow an annual increase on prices within an agreed range to accommodate such fluctuations. There are also situations, as is the case at the time of writing, whereby events outside of our control have an impact on the business pushing prices up. 
Credit risk related to trade receivables is limited. Credit control is extremely good and the majority of turnover is amongst the water authorities. Invoicing is issued on an agreed basis with the client who has full access to time and work logs to confirm work as it is completed.
Liquidity risk is monitored by day to day and weekly cash flow management which is further enhanced by a system of monthly financial reporting and forecasting.
The company will continue to monitor macroeconomic risks and uncertainties including ongoing war in Ukraine, the cost-of-living crisis in the UK and the impacts of tariffs on global trade. Where available the directors will take the appropriate actions to mitigate any impact upon the business.
The directors consider therefore that they have taken all reasonable steps to minimise areas of risk and uncertainty.

General economic conditions
 
Although there is uncertainty in the economy, the Company believes that there will continue to be downward pressure on interest rates which will help with working capital and other funding.  It may also lessen pressure on wage demands.  
The Labour government has been bullish in promoting development both residential and commercial and this will expand the markets available to the Company.

Page 2

 
MTS Cleansing Services Limited
 

Strategic Report (continued)
For the Year Ended 30 April 2024

Post balance sheet events

The Company is pleased to report that it has secured the contract with Southern Water for Waste Tankering in the Kent area as stated above, which is due to begin in September 2025, although we were not successful in our bid for the remainder of the Southern Water area for this type of work. We can also confirm we were successful in retaining the Grits and Screenings work for the whole Southern Water area as well as being a nominated supplier for secondary reactive and planned tankering. 
We are also proud to report that contract extensions with our work with Severn Trent Water have been secured.

Directors' statement of compliance with duty to promote the success of the Company
 
This statement is intended by the Board of Directors to set out how they have approached and met their responsibilities under s172(1)(a) to (f) of the Companies Act 2006 in the financial period ending 30 April 2024.
Stakeholders of the Company include employees, shareholders, customers, suppliers, creditors of the business and the community in which it operates.
The directors’, both individually and collectively, consider that they have acted in good faith to promote the success of the Company for the benefit of its stakeholders as a whole (having regard to the matters set out in s172 of the Act) in the decisions taken during the period. In particular:
 
To ensure the Board take account of the likely consequences of their decisions in the long term, they receive regular and timely information on all the key areas of the business including financial performance, operational matters, health & safety, environmental reports, risks and opportunities - all supported by Key Performance Indicators (KPIs).  The Company's performance and progress is also reviewed regularly at Board and senior management meetings.
The Company’s employees are fundamental to the success of the business. The directors understand that it is critical to engage with and understand their views and to ensure that all employees’ interests are considered. To strengthen employee engagement, the directors’ promote and encourage all employees to raise any concerns or suggestions with senior management without hesitation. During the period, the Company continued to invest in its departmental resources and I.T infrastructure to further support and enhance the working environment for its employees.
The Company's customers and suppliers are also fundamental to the success of the business and as a leading supplier of liquid waste management services in the UK, it is essential that the Company maintains its reputation for high quality service, sustainability and high standards of business conduct. The Company strives to continually improve and strengthen its service for the mutual benefit of all of its stakeholders.
The directors take environmental matters into deep consideration as part of their decision-making process and strive to be a responsible member of the local and wider community, minimising the Company’s impact on the environment wherever possible, and working hard to help their own customers reduce their impact too.
The directors’ intentions are to behave responsibly toward all stakeholders and treat them fairly and equally, so that they all benefit from the long-term success of the Company.
 
The directors’ have overall responsibility for determining the Company’s purpose, values and strategy and for ensuring high standards of governance. The primary aim of the directors’ is to promote the long-term sustainable success of the Company, generating value for stakeholders and contributing to the wider society. Throughout the remainder of 2023 and into 2024, the Board will continue to review and challenge how the company can improve engagement with its employees and other stakeholders.
Greenhouse gas emissions, energy consumption and energy efficiency action
Disclosures regarding the Company's greenhouse gas emissions and energy consumption are included in the consolidated financial statements of parent company MTS Cleansing Group Limited.

Page 3

 
MTS Cleansing Services Limited
 

Strategic Report (continued)
For the Year Ended 30 April 2024


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



Mr Antony K Crust
Director
Date: 29 May 2025

Page 4

 
MTS Cleansing Services Limited
 

 
Directors' Report
For the Year Ended 30 April 2024

The directors present their report and the financial statements for the year ended 30 April 2024.

Results and dividends

The profit for the year, after taxation, amounted to £2,839,586 (2023 - £3,314,069).

Ordinary dividends were paid amounting to £nil (2023: £675,920).

Directors

The directors who served during the year were:

Mr Brian A Crust 
Mr Keith A Crust 
Mr Antony K Crust 
Mr Allen C Crust 
Mr Brian S Crust 
Mr Terry S Crust 
Mr Spencer J Crust (resigned 3 May 2024)
Mr Stephen P Gilson (resigned 20 October 2023)
Mr Scott L Diamond (resigned 24 January 2024)
Mr Christopher R Henderson 
Mr Richard Spencer-Tanner (resigned 1 November 2023)
Mr Luke Potts 
Mr Paul J Lee (appointed 24 January 2024)

Matters covered in the Strategic Report

The directors have prepared a Strategic Report incorporating post balance sheet events and consideration of the Company's customers, suppliers and employees and the greenhouse gas emissions disclosure. 

Disclosure of information to auditors

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

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

Auditors

Under section 487(2) of the Companies Act 2006Kreston Reeves LLP 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 and signed on its behalf.
 





Mr Antony K Crust
Director
Date: 29 May 2025

Page 5

 
MTS Cleansing Services Limited
 

Directors' Responsibilities Statement
For the Year Ended 30 April 2024

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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

select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

 
MTS Cleansing Services Limited
 

 
Independent Auditors' Report to the Members of MTS Cleansing Services Limited
 

Opinion


We have audited the financial statements of MTS Cleansing Services Limited (the 'Company') for the year ended 30 April 2024, which comprise the Profit and loss account, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 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 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.


Material uncertainty related to going concern


We draw attention to note 2.3 in the financial statements, which indicates that the loss of a major contract with Southern Water post year end will have a significant impact on the Company. As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.


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. Our evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included an evaluation of expected cashflows and restructuring options.


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


Page 7

 
MTS Cleansing Services Limited
 

 
Independent Auditors' Report to the Members of MTS Cleansing Services 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 Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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


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


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 8

 
MTS Cleansing Services Limited
 

 
Independent Auditors' Report to the Members of MTS Cleansing Services 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 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:

Capability of the audit in detecting irregularities, including fraud
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.
 
Based on our understanding of the Company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent 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 preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. 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 inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements such as provisions. Audit procedures performed by the engagement team included: 
 
Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud;
Challenging assumptions and judgements made by management in its significant accounting estimates;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; 
Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
Physical inspection of tangible fixed assets susceptible to fraud or irregularity; and
Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation. 

 
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. 
 
Page 9

 
MTS Cleansing Services Limited
 

 
Independent Auditors' Report to the Members of MTS Cleansing Services Limited (continued)




As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


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.





Robert Sellers FCCA (Senior statutory auditor)
for and on behalf of
Kreston Reeves LLP
Statutory Auditor & Chartered Accountants
Chatham

29 May 2025
Page 10

 
MTS Cleansing Services Limited
 

Profit and Loss Account
For the Year Ended 30 April 2024

2024
2023
Note
£
£

  

Turnover
 4 
150,337,481
108,457,979

Cost of sales
  
(133,916,513)
(93,771,136)

Gross profit
  
16,420,968
14,686,843

Administrative expenses
  
(11,569,685)
(9,969,061)

Operating profit
 5 
4,851,283
4,717,782

Interest payable and similar expenses
 9 
(1,083,619)
(659,604)

Profit before tax
  
3,767,664
4,058,178

Tax on profit
 10 
(928,078)
(744,109)

Profit for the financial year
  
2,839,586
3,314,069

There were no recognised gains and losses for 2024 or 2023 other than those included in the profit and loss account.  

The notes on pages 14 to 33 form part of these financial statements.

Page 11

 
MTS Cleansing Services Limited
Registered number: 02045340

Balance Sheet
As at 30 April 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
21,581,969
19,434,140

Investments
 14 
2
2

  
21,581,971
19,434,142

Current assets
  

Stocks
 15 
171,561
708,600

Debtors: amounts falling due within one year
 16 
55,381,681
36,600,240

Cash at bank and in hand
 17 
509,128
875,400

  
56,062,370
38,184,240

Creditors: amounts falling due within one year
 18 
(46,915,376)
(31,146,404)

Net current assets
  
 
 
9,146,994
 
 
7,037,836

Total assets less current liabilities
  
30,728,965
26,471,978

Creditors: amounts falling due after more than one year
 19 
(6,393,682)
(5,624,148)

Provisions for liabilities
  

Deferred tax
 22 
(2,731,423)
(2,083,556)

  
 
 
(2,731,423)
 
 
(2,083,556)

Net assets
  
21,603,860
18,764,274


Capital and reserves
  

Called up share capital 
 23 
2,500,000
2,500,000

Revaluation reserve
 24 
3,560,067
3,560,067

Profit and loss account
 24 
15,543,793
12,704,207

  
21,603,860
18,764,274


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr Antony K Crust
Mr Brian A Crust
Director
Director
Date: 29 May 2025
Date:29 May 2025

The notes on pages 14 to 33 form part of these financial statements.

Page 12

 
MTS Cleansing Services Limited
 

Statement of Changes in Equity
For the Year Ended 30 April 2024


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 May 2022
2,500,000
3,560,067
10,066,058
16,126,125



Profit for the year
-
-
3,314,069
3,314,069

Dividends
-
-
(675,920)
(675,920)



At 1 May 2023
2,500,000
3,560,067
12,704,207
18,764,274



Profit for the year
-
-
2,839,586
2,839,586


At 30 April 2024
2,500,000
3,560,067
15,543,793
21,603,860


The notes on pages 14 to 33 form part of these financial statements.

Page 13

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

1.


General information

MTS Cleansing Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Stanley House, Anthonys Way, Medway City Estate, Rochester, Kent, ME2 4NF. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company is itself a parent undertaking and is exempt from the requirement to prepare group accounts by virtue of section 400 of the Companies Act 2006. These financial statements therefore present information about the Company as an individual undertaking and not about its group. The consolidated financial statements of MTS Cleansing Group Limited as at 30 April 2024 may be obtained from Companies House.
The Company's functional currency is Pounds Sterling.
The Company's financial statements are presented to the nearest £.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of MTS Cleansing Group Limited as at 30 April 2024 and these financial statements may be obtained from Companies House.

Page 14

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

2.Accounting policies (continued)

 
2.3

Going concern

Following the balance sheet date, the company became aware that it had not been successful in retaining all its current work with Southern Water from September 2025.  Although difficult to accurately forecast the impact of this, the Directors believe it may represent 60% - 80% of recent total turnover for Southern Water.  The Directors are confident that a combination of winning replacement work and restructuring will allow the business to continue as a going concern and effectively manage cashflow.  The Company has already started to work with Southern Water’s Clean Rivers and Seas Taskforce which is a new income stream and has also secured extensions to the work with Severn Trent Water. These factors do however create a material uncertainty in relation to going concern.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.6

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.

Page 15

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

2.Accounting policies (continued)


2.6
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Land and buildings Freehold
-
Subject to annual revaluation
Land and buildings Leasehold
-
Based on economic life over duration of lease
Plant and machinery
-
Based on useful economic life between 3 and 10 years
Motor vehicles
-
Based on useful economic life between 5 and 10 years
Fixtures, fittings & equipment
-
Based on useful economic life between 3 and 5 years

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

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

 
2.7

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

  
2.8

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date due to determine whether there is any indication that the assets are impaired. Where there is any indication that the assets are impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.The recoverable amount is the higher of an asset's (or CGU'S) fair value less costs to sell and value in use. For the purpose of assessing impairment assets are grouped at the lowest levels for which they are separately identifiable cash flows (CGUs). Non-Financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Page 16

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

2.Accounting policies (continued)

 
2.9

Fixed asset investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Profit and loss account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Finished goods include labour and attributable overheads.

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.

 
2.11

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.

 
2.12

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.

 
2.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes
Page 17

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)

in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

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

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

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
 
Page 18

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)


Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument 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.

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

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

Other financial instruments

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

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

Derecognition of financial instruments

Derecognition of financial assets

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

Derecognition of financial liabilities

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

 
2.14

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.

 
2.15

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.

Page 19

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

2.Accounting policies (continued)

 
2.16

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.

 
2.17

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.18

Pensions

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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.19

Borrowing costs

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

 
2.20

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.

 
2.21

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

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

Page 20

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

2.Accounting policies (continued)


2.21
Current and deferred taxation (continued)

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.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 
Tangible fixed assets
The Company has recognised tangible fixed assets with a carrying value of £21,581,969 at the reporting date (see note 13). The company has adopted the revaluation model for the measurement of land and buildings, other assets are stated at their cost less provision for depreciation and impairment.
In order to determine the fair value of land and buildings the Company's directors have used openly available market data to determine a fair value after previously engaging an independent valuation specialist with experience in the location and nature of the property being valued. They have used a valuation technique based on comparable market data. Valuations are obtained with sufficient regularity to ensure that the carrying value of revalued assets reflects current market conditions. The determined fair value of the investment property is most sensitive to fluctuations in the property market.
The Company’s accounting policy sets out the approach to calculating depreciation for immaterial assets acquired. For material assets such as land and buildings the Company determines at acquisition or the date of revaluation reliable estimates for the useful life of the asset, its residual value and decommissioning costs. These estimates are based upon such factors as the expected use of the acquired asset and market conditions. At subsequent reporting dates the directors consider whether there are any factors such as technological advancements or changes in market conditions that indicate a need to reconsider the estimates used.
Where there are indicators that the carrying value of tangible assets may be impaired the Company undertakes tests to determine the recoverable amount of assets. These tests require estimates of the fair value of assets less cost to sell and of their value in use. Wherever possible the estimate of the fair value of assets is based upon observable market prices less incremental cost for disposing of the asset. The value in use calculation is based upon a discounted cash flow model, based upon the Company’s forecasts for the foreseeable future which do not include any restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well expected future cash flows and the growth rate used for extrapolation purposes.
Taxation
Provision has been made in the financial statements for deferred tax amounting to £2,731,423 at the reporting date (see note 22). This provision is based upon estimates of the availability of future taxable profits, the timing of the reversal of timing differences upon which the asset is based and the tax rates that will be in force at that time together with an assessment of the impact of future tax planning strategies.

Page 21

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

4.


Turnover

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


2024
2023
£
£

Liquid waste disposal
150,337,481
108,457,979


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
150,337,481
108,457,979



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
1,703,106
1,506,091

Operating lease charges
5,576,078
2,950,907

Profit on disposal of tangible fixed assets
(11,185)
(154,772)


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
28,850
19,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 22

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

7.


Employees

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


2024
2023
£
£

Wages and salaries
30,951,285
25,985,754

Social security costs
3,041,515
3,041,514

Cost of defined contribution scheme
453,254
424,498

34,446,054
29,451,766


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


        2024
        2023
            No.
            No.







Directors
9
12



Office staff
109
106



Operatives
377
337

495
455


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
1,552,637
1,396,421

Company contributions to defined contribution pension schemes
48,413
50,099

1,601,050
1,446,520


During the year retirement benefits were accruing to 9 directors (2023 - 10) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £175,226 (2023 - £159,542).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9,000 (2023 - £9,000).

Page 23

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

9.


Interest payable and similar expenses

2024
2023
£
£


Other interest on financial liabilities
304,860
194,877

Interest on finance leases and hire purchase contracts
156,414
110,371

Interest on invoice finance arrangements
622,345
354,356

1,083,619
659,604


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
280,211
538,366


Total current tax
280,211
538,366

Deferred tax


Origination and reversal of timing differences
647,867
205,743


Taxation on profit on ordinary activities
928,078
744,109
Page 24

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024
 
10.Taxation (continued)


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
3,767,664
4,058,178


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
941,916
771,054

Effects of:


Tax effect of expenses that are not deductible in determining taxable profit
12,612
3,978

Enhanced Capital Allowances
-
(32,916)

Depreciation on assets not qualifying for tax allowances
5,010
4,519

Group relief
(31,741)
(65,523)

Effective tax rate adjustment
-
13,619

Changes in tax rate affecting deferred taxation
-
49,378

Other timing differences leading to an increase (decrease) in taxation
281
-

Total tax charge for the year
928,078
744,109


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

2024
2023
£
£


Dividends
-
675,920

Page 25

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

12.


Intangible assets




Goodwill

£



Cost


At 1 May 2023
1,306,663



At 30 April 2024

1,306,663



Amortisation


At 1 May 2023
1,306,663



At 30 April 2024

1,306,663



Net book value



At 30 April 2024
-



At 30 April 2023
-



Page 26
 


 
MTS Cleansing Services Limited


 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024


13.


Tangible fixed assets






Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total

£
£
£
£
£
£



Cost or valuation


At 1 May 2023
11,284,804
498,090
2,415,443
425,979
21,186,634
35,810,950


Additions
-
647,899
-
62,006
3,193,985
3,903,890


Disposals
-
-
(115,260)
-
(1,592,421)
(1,707,681)



At 30 April 2024

11,284,804
1,145,989
2,300,183
487,985
22,788,198
38,007,159



Depreciation


At 1 May 2023
-
141,787
2,081,220
251,623
13,902,180
16,376,810


Charge for the year
-
43,309
142,868
58,638
1,458,290
1,703,105


Disposals
-
-
(115,260)
-
(1,539,465)
(1,654,725)



At 30 April 2024

-
185,096
2,108,828
310,261
13,821,005
16,425,190



Net book value



At 30 April 2024
11,284,804
960,893
191,355
177,724
8,967,193
21,581,969



At 30 April 2023
11,284,804
356,303
334,223
174,356
7,284,454
19,434,140

Page 27
 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

           13.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
5,828,331
3,675,762

5,828,331
3,675,762

 
Cost or valuation at 30 April 2024 is as follows:

Land and buildings
£


At cost
6,787,761
At valuation:

Valuation undertaken on 30 October 2020 by Sanderson Weatherall, on a market value basis plus Directors' valuation undertaken as at 30 April 2024.
4,497,043



11,284,804

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2024
2023
£
£



Cost
6,787,761
6,787,761

Accumulated depreciation
(1,423,307)
(1,287,552)

Net book value
5,364,454
5,500,209

Page 28

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

14.


Fixed asset investments





Investments   in subsidiary companies

£



Cost or valuation


At 1 May 2023
2



At 30 April 2024
2






Net book value



At 30 April 2024
2



At 30 April 2023
2

The Company had an investment in Composting Facilities Services Limited, a company which was under common control, these preference shares were redeemed during the year. 


Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Sucklifts Limited
Dormant
Ordinary
100%

The registered office of the above company is Stanley House, Anthonys Way, Medway City Estate, Rochester, Kent, ME2 4NF. 


15.


Stocks

2024
2023
£
£

Finished goods
171,561
708,600



16.


Debtors

2024
2023
£
£


Trade debtors
40,029,419
28,690,449

Other debtors
1,235,156
1,225,264

Prepayments and accrued income
14,117,106
6,684,527

55,381,681
36,600,240


Page 29

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
509,128
875,400



18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans and overdrafts
173,901
199,620

Trade creditors
25,507,743
15,702,692

Amounts owed to group undertakings
-
553,656

Corporation tax
-
538,369

Other taxation and social security
2,785,107
1,736,101

Obligations under finance lease and hire purchase contracts
1,274,390
914,398

Other creditors
11,921,137
9,555,369

Accruals and deferred income
5,253,098
1,946,199

46,915,376
31,146,404


HSBC Invoice Finance (UK) Ltd hold a floating charge over the property. At the year end the balance on this facility was £11,921,137 (2023: £9,555,369).


19.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
3,666,155
3,808,099

Net obligations under finance leases and hire purchase contracts
2,727,527
1,816,049

6,393,682
5,624,148


Page 30

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

20.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
173,901
199,620

Amounts falling due 1-2 years

Bank loans
3,666,155
3,808,099



3,840,056
4,007,719


Bank loans are due to HSBC Bank Plc and are secured by way of a fixed and floating charge over the assets of the Company.
HSBC (UK) Ltd have provided a debenture loan secured by fixed and floating charge over the assets of the Company. It also contains a negative pledge. At the year end the balance on this facility was £3,840,056 (2023: £4,007,719).


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
1,274,390
914,398

In two to five years
2,727,527
1,824,996

4,001,917
2,739,394


22.


Deferred taxation




2024


£






At beginning of year
2,083,556


Charged to profit or loss
647,867



At end of year
2,731,423

Page 31

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024
 
22.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
1,794,447
1,146,580

Freehold property revaluations
936,976
936,976

2,731,423
2,083,556


23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2,500,000 (2023 - 2,500,000) Ordinary shares of £1.00 each
2,500,000
2,500,000



24.


Reserves

Revaluation reserve

From time to time MTS Cleansing Services reviews the value of the Company's headquarters at Anthonys Way, Rochester, Kent, and will instruct professionals to carry out a revaluation exercise. The directors appoint independent experts to ascertain the market value. The last revaluation was completed by the Directors' as at 30 April 2023.

Profit and loss account

This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company's shareholders. 


25.


Capital commitments


At 30 April 2024 the Company had capital commitments as follows:

2024
2023
£
£


Contracted for but not provided in these financial statements
5,713,000
6,796,126


26.


Pension commitments

The company contributes towards personal pension schemes for certain employees. The assets of these schemes are held separately from those of the company by independently administered funds. The pension cost charge represents contributions payable by the Company to the funds which amounted to £453,254 (2023: £424,498). Contributions totalling £39,681 (2023: £84,519) were payable to the fund at the balance sheet date. 

Page 32

 
MTS Cleansing Services Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 April 2024

27.


Commitments under operating leases

At 30 April 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
5,496,036
2,443,354

Later than 1 year and not later than 5 years
15,218,407
5,680,818

Later than 5 years
533,666
-

21,248,109
8,124,172


28.


Related party transactions

The Company has taken advantage of the exemption from disclosing related party transactions with its fellow group members provided by paragraph 33.1A of Financial Reporting Standard 102 as it is a wholly owned subsidiary undertaking of MTS Cleansing Group Limited. 


29.


Controlling party

The immediate parent company of MTS Cleansing Services Limited is, from 28 October 2021, MTS Cleansing Group Limited, which is registered in England. 
The Company is ultimately controlled by Mr B S Crust and Mr K A Crust, by virtue of their combined shareholding.


Page 33