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Registered number: 13687157










MTS Cleansing Group Limited










Annual Report and Financial Statements

For the Period Ended 30 April 2024

 
MTS Cleansing Group Limited
 

Company Information


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




Company secretary
Mr Antony K Crust



Registered number
13687157



Registered office
Stanley House Anthonys Way
Medway City Estate

Rochester

Kent

ME2 4NF




Independent auditor
Kreston Reeves LLP
Statutory Auditor & Chartered Accountants

Maritime Place

Quayside

Chatham Maritime

Chatham

Kent

ME4 4QZ





 
MTS Cleansing Group Limited
 

Contents



Page
Group Strategic Report
 
1 - 4
Directors' Report
 
5
Directors' Responsibilities Statement
 
6
Independent Auditor's Report
 
7 - 10
Consolidated Statement of Comprehensive Income
 
11
Consolidated Balance Sheet
 
12
Company Balance Sheet
 
13
Consolidated Statement of Changes in Equity
 
14
Company Statement of Changes in Equity
 
15
Consolidated Statement of Cash Flows
 
16
Notes to the Financial Statements
 
17 - 37


 
MTS Cleansing Group Limited
 

Group Strategic Report
For the Period Ended 30 April 2024

Introduction
 
The Directors present the strategic report for the period 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 group 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 group 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 group is circa 400 and we continue to renew and expand our fleet in line with the demands of the business. The group 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 group 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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Page 1

 
MTS Cleansing Group Limited
 

Group Strategic Report (continued)
For the Period Ended 30 April 2024

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 group 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 group.
Another significant risk facing the group 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, ran a tender process for the award of the Waste Management and Recycling Services Agreement which we currently service.  The group 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.
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 group 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 group’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 group 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 group’s resources to new opportunities, at the time of signing these accounts, this has not yet crystallised into contracts.  Therefore, the group’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 group, apart from the current bias of work for the utility companies in our sales mix, come from some of our direct costs. However, the group 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 group 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.
 
Page 2

 
MTS Cleansing Group Limited
 

Group Strategic Report (continued)
For the Period Ended 30 April 2024


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 group 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 group.
Post balance sheet events
The group 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 Group
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 group 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 Group 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 Group's performance and progress is also reviewed regularly at    Board and senior management meetings.
• The Group’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    group continued to invest in its departmental resources and I.T infrastructure to further support and    enhance the working environment for its employees.
•  The Group'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 Group     maintains its reputation for high quality service, sustainability and high standards of business conduct. The
 Group 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 Group’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 Group.
 
Page 3

 
MTS Cleansing Group Limited
 

Group Strategic Report (continued)
For the Period Ended 30 April 2024


The directors’ have overall responsibility for determining the Group’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 Group, 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 group can improve engagement with its employees and other stakeholders.

Greenhouse gas emissions, energy consumption and energy efficiency action
The Group's greenhouse gas emissions and energy consumption are as follows:
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We have followed the HM Government Environmental Reporting Guidelines. We have also used the GHG
Reporting Protocol - Corporate Standard.
During the year the Group invested in a large scale solar array and battery storage at its Head Office. We also continue to invest in electric vehicles and have explored the possibility of using HVO fuel in our fleet. 
The chosen intensity measurement ratio is total gross emission in metric tonnes CO2e per £m turnover. This is was 89.50 (2023: 115.56) for the year.


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



Mr Allen C Crust
Director

Date: 29 May 2025

Page 4

 
MTS Cleansing Group Limited
 

 
Directors' Report
For the Period Ended 30 April 2024

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

Results and dividends

The profit for the period, after taxation, amounted to £2,524,673 (2023 - £2,965,591).

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

Directors

The directors who served during the period were:

Mr Allen C Crust 
Mr Antony K Crust 
Mr Brian A Crust 
Mr Brian S Crust 
Mr Keith A Crust 
Mr Spencer J Crust (resigned 3 May 2024)
Mr Terry S Crust 
Mr Scott L Diamond (resigned 24 January 2024)
Mr Stephen P Gilson (resigned 20 October 2023)
Mr Christopher R Henderson 
Mr Richard Spencer-Tanner (resigned 1 November 2023)
Mr Luke Potts 
Mr Paul 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
group's customers, suppliers and employees and the Greenhouse gas emissions disclosure. 

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

Auditor

Under section 487(2) of the Companies Act 2006Kreston Reeves LLP will be deemed to have been reappointed as auditor 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 Group Limited
 

Directors' Responsibilities Statement
For the Period Ended 30 April 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 judgments 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 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 6

 
MTS Cleansing Group Limited
 

 
Independent Auditor's Report to the Members of MTS Cleansing Group Limited
 

Opinion


We have audited the financial statements of MTS Cleansing Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 30 April 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 30 April 2024 and of the Group's profit for the period 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 Auditor's 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.


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 Group. 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 Group's or the parent 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 Group's ability to continue to adopt the going concern basis of accounting included an evaluation of expected future 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 Group Limited
 

 
Independent Auditor's Report to the Members of MTS Cleansing Group Limited (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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 period 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 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 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 8

 
MTS Cleansing Group Limited
 

 
Independent Auditor's Report to the Members of MTS Cleansing Group Limited (continued)


Auditor's 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 Auditor's 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:

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 Group 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 group 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 Group Limited
 

 
Independent Auditor's Report to the Members of MTS Cleansing Group Limited (continued)




As part of an audit in accordance with ISAs (UK), we exercise professional judgment 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 Auditor's 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 Auditor's 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.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.


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 Auditor's 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 Maritime

29 May 2025
Page 10

 
MTS Cleansing Group Limited
 

Consolidated Statement of Comprehensive Income
For the Period Ended 30 April 2024

2024
2023
Note
£
£

  

Turnover
 4 
150,336,591
108,517,311

Cost of sales
  
(133,672,141)
(93,625,861)

Gross profit
  
16,664,450
14,891,450

Administrative expenses
  
(12,187,089)
(10,535,069)

Operating profit
 5 
4,477,361
4,356,381

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

Profit before taxation
  
3,393,742
3,696,777

Tax on profit
 10 
(869,069)
(731,186)

Profit for the financial period
  
2,524,673
2,965,591

  

Total comprehensive income for the period
  
2,524,673
2,965,591

Profit for the period attributable to:
  

Owners of the parent Company
  
2,524,673
2,965,591

  
2,524,673
2,965,591

Total comprehensive income for the period attributable to:
  

Owners of the parent Company
  
2,524,673
2,965,591

  
2,524,673
2,965,591

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

The notes on pages 17 to 37 form part of these financial statements.

Page 11

 
MTS Cleansing Group Limited
Registered number: 13687157

Consolidated Balance Sheet
As at 30 April 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
22,208,116
20,296,323

Current assets
  

Stocks
 15 
171,561
708,600

Debtors: amounts falling due within one year
 16 
54,333,110
35,685,464

Cash at bank and in hand
 17 
797,070
957,437

  
55,301,741
37,351,501

Creditors: amounts falling due within one year
 18 
(47,320,741)
(31,302,325)

Net current assets
  
 
 
7,981,000
 
 
6,049,176

Total assets less current liabilities
  
30,189,116
26,345,499

Creditors: amounts falling due after more than one year
 19 
(6,419,282)
(5,689,196)

Provisions for liabilities
  

Deferred tax
 22 
(2,864,897)
(2,276,039)

Net assets
  
20,904,937
18,380,264


Capital and reserves
  

Called up share capital 
  
2,500,700
2,500,700

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

Profit and loss account
 24 
14,844,170
12,319,497

  
20,904,937
18,380,264


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 17 to 37 form part of these financial statements.

Page 12

 
MTS Cleansing Group Limited
Registered number: 13687157

Company Balance Sheet
As at 30 April 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Investments
 14 
2,500,600
2,500,600

  
2,500,600
2,500,600

Current assets
  

Debtors: amounts falling due within one year
 16 
100
553,756

Cash at bank and in hand
 17 
268,528
53,314

  
268,628
607,070

Creditors: amounts falling due within one year
 18 
(268,528)
(606,970)

Net current assets
  
 
 
100
 
 
100

Total assets less current liabilities
  
2,500,700
2,500,700

  

  

Net assets excluding pension asset
  
2,500,700
2,500,700

Net assets
  
2,500,700
2,500,700


Capital and reserves
  

Called up share capital 
  
2,500,700
2,500,700

Profit for the period
  
-
675,920

Other changes in the profit and loss account

  

-
(675,920)

  
 
 
2,500,700
 
 
2,500,700


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 17 to 37 form part of these financial statements.

Page 13

 
MTS Cleansing Group Limited
 

Consolidated Statement of Changes in Equity
For the Period Ended 30 April 2024


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

£
£
£
£


At 1 May 2022
2,500,700
3,560,067
10,029,826
16,090,593


Comprehensive income for the year

Profit for the year
-
-
2,965,591
2,965,591

Dividends: Equity capital
-
-
(675,920)
(675,920)



At 1 May 2023 (as previously stated)
2,500,700
3,560,067
12,926,467
18,987,234

Prior year adjustment - correction of error
-
-
(606,970)
(606,970)


At 1 May 2023 (as restated)
2,500,700
3,560,067
12,319,497
18,380,264



Profit for the period
-
-
2,524,673
2,524,673


At 30 April 2024
2,500,700
3,560,067
14,844,170
20,904,937


The notes on pages 17 to 37 form part of these financial statements.

Page 14

 
MTS Cleansing Group Limited
 

Company Statement of Changes in Equity
For the Period Ended 30 April 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 May 2022
2,500,700
-
2,500,700



Profit for the year
-
675,920
675,920

Dividends: Equity capital
-
(675,920)
(675,920)



At 1 May 2023 (as previously stated)
2,500,700
606,970
3,107,670

Prior year adjustment - correction of error
-
(606,970)
(606,970)


At 1 May 2023 (as restated)
2,500,700
-
2,500,700


At 30 April 2024
2,500,700
-
2,500,700


The notes on pages 17 to 37 form part of these financial statements.

Page 15

 
MTS Cleansing Group Limited
 

Consolidated Statement of Cash Flows
For the Period Ended 30 April 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial period
2,524,673
2,965,591

Adjustments for:

Depreciation of tangible assets
1,939,141
1,734,113

Loss on disposal of tangible assets
(11,185)
(155,032)

Interest paid
1,083,619
659,604

Taxation charge
869,069
731,189

Decrease in stocks
537,039
61,675

(Increase) in debtors
(18,637,857)
(17,581,675)

Increase in creditors
16,220,834
15,594,529

Corporation tax (paid)/received
(828,369)
-

Net cash generated from operating activities

3,696,964
4,009,994


Cash flows from investing activities

Purchase of tangible fixed assets
(1,493,540)
(1,825,496)

Sale of tangible fixed assets
64,141
276,140

HP interest paid
(156,414)
(110,371)

Net cash from investing activities

(1,585,813)
(1,659,727)

Cash flows from financing activities

Repayment of loans
(167,663)
(225,199)

New finance leases
-
728,830

Repayment of finance leases
(1,176,650)
(1,114,561)

Dividends paid
-
(675,920)

Interest paid
(927,205)
(549,233)

Net cash used in financing activities
(2,271,518)
(1,836,083)

Net (decrease)/increase in cash and cash equivalents
(160,367)
514,184

Cash and cash equivalents at beginning of period
957,437
443,253

Cash and cash equivalents at the end of period
797,070
957,437


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
797,070
957,437

797,070
957,437


The notes on pages 17 to 37 form part of these financial statements.

Page 16

 
MTS Cleansing Group Limited
 

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

1.


General information

MTS Cleansing Group 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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

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 Group's functional currency is Pounds Sterling.
The Group's financial statements are presented to the nearest £.

The following principal accounting policies have been applied:

 
2.2

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.
In the opinion of the directors, the creation of the group was a reconstruction rather than an acquisition since the equity holders of the company remain the same as the former equity holders and the rights of the equity holders are unchanged and no minority interest in the net assets of the Group has arisen. 
The directors have adopted the merger accounting principles in drawing up these financial statements. The main consequence of adopting merger rather than acquisition accounting is that the balance sheet of the merged group includes the assets and liabilities of each of the Group's combining entities at their carrying values prior to the merger, subject to any adjustments to achieve uniformity of accounting policies, rather than their fair values at the date of the merger. 

 
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.

Page 17

 
MTS Cleansing Group Limited
 

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

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 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.

 
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.

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 and fittings
-
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.

Page 18

 
MTS Cleansing Group Limited
 

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

2.Accounting policies (continued)

 
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.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated 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. Work in progress and 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. 

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.

Page 19

 
MTS Cleansing Group Limited
 

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

2.Accounting policies (continued)

 
2.13

Financial instruments

The Group 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 Group's Balance Sheet when the Group 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 Group'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 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 Group after the deduction of all its liabilities.
 
Page 20

 
MTS Cleansing Group Limited
 

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

2.Accounting policies (continued)


2.13
Financial instruments (continued)


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

 
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 21

 
MTS Cleansing Group Limited
 

 
Notes to the Financial Statements
For the Period 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 Group 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 period in which they are incurred.

 
2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 22

 
MTS Cleansing Group Limited
 

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

2.Accounting policies (continued)

 
2.21

Current and deferred taxation

The tax expense for the period 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 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.

Page 23

 
MTS Cleansing Group Limited
 

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

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Group'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 judgements, estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. 
The following judgements have had the most significant impact on amounts recognised in the financial statements:
Lease commitments
The Group has entered into a range of lease commitments in respect of plant and machinery and motor vehicles. The classification of these leases as either financial or operating leases requires the directors to consider whether the terms and conditions of each lease are such that the Group has acquired the risks and rewards associated with the ownership of the underlying assets.
The following are the Group's key sources of estimation uncertainty:
Tangible fixed assets
The Group has recognised tangible fixed assets with a carrying value of £22,208,116 at the reporting date (see note 13). The Group 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 Group has engaged independent valuation specialists 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 Group’s accounting policy sets out the approach to calculating depreciation for immaterial assets acquired. For material assets such as land and buildings the Group 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 Group 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 Group’s forecasts for the foreseeable future which do not include any restructuring activities that the Group 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 £2,864,897 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 24

 
MTS Cleansing Group Limited
 

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

4.


Turnover

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


2024
2023
£
£

Liquid waste disposal
150,336,591
108,517,311


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
150,336,591
108,517,311



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible assets
1,939,141
1,734,113

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

Profit on disposal of tangible fixed assets
(11,185)
(155,032)


6.


Auditor's remuneration

2024
2023
£
£

Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent Company's financial statements
31,500
24,750

Fees payable to the Group's auditor and its associates in respect of:

All other services
14,750
9,150

Page 25

 
MTS Cleansing Group Limited
 

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

7.


Employees

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


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


Wages and salaries
32,599,411
27,481,366
-
-

Social security costs
3,056,957
3,055,042
-
-

Cost of defined contribution scheme
455,985
427,372
-
-

36,112,353
30,963,780
-
-


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


        2024
        2023
            No.
            No.







Directors
9
12



Office Staff
113
131



Operatives
377
340

499
483

The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL)

8.


Directors' remuneration

2024
2023
£
£

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

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

1,601,050
1,446,520


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

Page 26

 
MTS Cleansing Group Limited
 

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

9.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
304,860
194,877

Finance leases and hire purchase contracts
156,414
110,371

Other interest payable
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


280,211
538,366


Total current tax
280,211
538,366

Deferred tax


Origination and reversal of timing differences
588,858
192,820

Total deferred tax
588,858
192,820


Taxation on profit on ordinary activities
869,069
731,186
Page 27

 
MTS Cleansing Group Limited
 

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


Factors affecting tax charge for the period/year

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

2024
2023
£
£


Profit on ordinary activities before tax
3,393,742
3,696,777


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
848,436
702,388

Effects of:


Tax effect of expenses that are not deductible in determining taxable profit
15,342
3,994

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

Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
-
(39,611)

Other differences leading to an increase (decrease) in the tax charge
281
-

Effective tax rate uplift
-
13,620

Change in deferred tax due to rate changes
-
46,276

Total tax charge for the period/year
869,069
731,186


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

As restated
2024
2023
£
£


Dividends paid
-
675,920

Page 28

 
MTS Cleansing Group Limited
 

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

12.


Intangible assets

Group and Company





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 29
 


 
MTS Cleansing Group Limited


 

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


13.


Tangible fixed assets


Group







Freehold property
Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£
£



Cost or valuation


At 1 May 2023
11,284,804
609,916
5,783,313
21,186,634
425,979
39,290,646


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


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



At 30 April 2024

11,284,804
1,257,815
5,668,053
22,788,198
487,985
41,486,855



Depreciation


At 1 May 2023
-
253,613
4,586,907
13,902,180
251,623
18,994,323


Charge for the period on owned assets
-
43,309
378,904
1,458,290
58,638
1,939,141


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



At 30 April 2024

-
296,922
4,850,551
13,821,005
310,261
19,278,739



Net book value



At 30 April 2024
11,284,804
960,893
817,502
8,967,193
177,724
22,208,116



At 30 April 2023
11,284,804
356,303
1,196,406
7,284,454
174,356
20,296,323

Page 30
 
MTS Cleansing Group Limited
 

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

           13.Tangible fixed assets (continued)




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


2024
2023
£
£

Freehold
11,284,804
11,284,804

Long leasehold
960,893
356,303

12,245,697
11,641,107


Cost or valuation at 30 April 2024 is as follows:

Land and buildings
£


At cost
8,045,576
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



12,542,619

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
£
£

Group


Cost
8,045,576
7,397,677

Accumulated depreciation
(1,720,229)
(1,541,165)

Net book value
6,325,347
5,856,512

Page 31

 
MTS Cleansing Group Limited
 

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

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 May 2023
2,500,600



At 30 April 2024
2,500,600





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

MTS Cleansing Services Limited
Stanley House, Anthonys Way, Medway City Estate, Rochester, Kent, ME2 4NF
Ordinary
100%
Composting Facilities Services Limited
Stanley House, Anthonys Way, Medway City Estate, Rochester, Kent, United Kingdom, ME2 4NF
Ordinary
100%
Sucklifts Limited
Stanley House, Anthonys Way, Medway City Estate, Rochester, Kent, ME2 4NF
Ordinary
100%

Page 32

 
MTS Cleansing Group Limited
 

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

15.


Stocks

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

Finished goods and goods for resale
171,561
708,600
-
-


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


16.


Debtors

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


Trade debtors
40,032,056
28,699,923
-
-

Amounts owed by group undertakings
-
-
-
553,656

Other debtors
183,948
301,014
100
100

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

54,333,110
35,685,464
100
553,756



17.


Cash and cash equivalents

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

Cash at bank and in hand
797,070
957,437
268,528
53,314



18.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£

Bank loans
173,901
199,620
-
-

Trade creditors
25,559,947
15,732,413
-
-

Corporation tax
-
538,369
-
-

Other taxation and social security
2,791,613
1,746,349
-
-

Obligations under finance lease and hire purchase contracts
1,312,790
951,120
-
-

Other creditors
12,193,120
10,163,841
268,528
606,970

Accruals and deferred income
5,289,370
1,970,613
-
-

47,320,741
31,302,325
268,528
606,970


Page 33

 
MTS Cleansing Group Limited
 

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

19.


Creditors: Amounts falling due after more than one year

Group
2023
Group
2022
£
£

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

Net obligations under finance leases and hire purchase contracts
2,753,127
1,881,097

6,419,282
5,689,196


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 £3,535,197 (2023: £4,007,719).


20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£
£

Amounts falling due within one year

Bank loans
173,901
199,620


173,901
199,620

Amounts falling due 1-2 years

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


3,666,155
3,808,099



3,840,056
4,007,719



21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
2023
Group
2022
£
£


Within one year
1,312,790
951,121

Between 1-5 years
2,753,127
1,890,043

4,065,917
2,841,164

Page 34

 
MTS Cleansing Group Limited
 

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

22.


Deferred taxation


Group



2024


£






At beginning of year
2,276,039


Charged to profit or loss
588,858



At end of year
2,864,897

The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
1,927,921
1,339,063

Freehold property revaluations
936,976
936,976

2,864,897
2,276,039


23.


Share Capital

2024
2023
£
£

Allotted, called up and fully paid


2,500,700 Ordinary shares of £1.00 each
2,500,700
2,500,700

Upon incorporation the company issued 2,500,700 Ordinary shares with a nominal value of £1 each.


24.


Reserves

Revaluation reserve

From time to time management reviews the value of the Group'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 2024.

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. 

Page 35

 
MTS Cleansing Group Limited
 

 
Notes to the Financial Statements
For the Period Ended 30 April 2024
25.


Analysis of net debt





As restated
At 1 May 2023
Cash flows
New finance leases
At 30 April 2024
£

£

£

£

Cash at bank and in hand

957,437

(160,367)

-

797,070

Debt due after 1 year

(3,808,099)

141,944

-

(3,666,155)

Debt due within 1 year

(806,590)

364,161

-

(442,429)

Finance leases

(2,832,217)

1,176,650

(2,410,350)

(4,065,917)


(6,489,469)
1,522,388
(2,410,350)
(7,377,431)


26.


Prior year adjustment

A prior year restatement has occurred due to a material misstatement in regards to the dividend declared within the period 30 April 2023. A prior year restatement has been posted increasing the dividend declared and increasing the directors loan account for £606,970.  


27.


Capital commitments




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


Group
Group
2024
2023
£
£

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

5,713,000
6,796,126


28.


Pension commitments

The Group 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 Group to the funds which amounted to £455,985 (2023: £427,372). Contributions totalling £39,681 (2023: £85,025) were payable to the fund at the balance sheet date. 

Page 36

 
MTS Cleansing Group Limited
 

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

29.


Commitments under operating leases

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


Group
Group
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

30.


Related party transactions

Dividends were paid to the shareholders of MTS Cleansing Group Limited of £nil (2023: £675,920). 
The Group has taken advantage of the exemption from disclosing related party transactions with its fellow group members. 


31.


Controlling party

The Group is ultimately controlled by Mr B S Crust and Mr K A Crust, by virtue of their combined shareholding.


Page 37