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DIRECTORS' REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2024 |
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors present their strategic report for the year ended 30 September 2024.
A restructure of the Greenworks group took place on 30 June 2023 to more accurately reflect the Group activities. Following this the Directors took the decision to give the opportunity to long-term employees to participate in ownership of the Company, where those employees have been instrumental to the long-term growth of the business. On 21 June 2024 474 B ordinary shares were acquired by Justine Small.
Washrooms trade (being the continuing operation following the restructure) showed a steady increase in Turnover and Customer Portfolio to £3,559K (2023: £3,267K) a growth of 9%, and a profit before tax of £193k (2023: £452K). The reported profit before tax for the previous year includes a profit of £389k from the disposal of subsidiaries in relation to the restructure.
The coffee trade was recognised under discontinued operations in the previous year, for which turnover and profit before tax amounted to £3,930k and £426k respectively. It should be noted that the coffee trade is now in Greenworks Coffee Ltd, a fellow group company, for year ended 30 September 2024 onwards.
Other than a degree of concern over the UK economy, the business is looking to achieve steady growth over the next 12 months. The business will be significantly affected by Government action to increase Company NI by 2% in April 2025.
The key financial KPIs are:
Cash management and debt collection Managing client retention: Our termination rate on customers for Washrooms trade was 11% in the year to September 2024 (2023: 13%).
We are a Living Wage employer and continue to retain staff by providing opportunities to progress and offer flexible working hours where we can to meet individual requirements.
We are ISO4001 accredited, and use this to bring about environment efficiencies and cost savings.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £176,222 (2023 - £760,384).
Dividends declared in the year were £60,000 (2023 - £790,566).
The directors who served during the year were:
There are no future developments other than those included within the introduction to the Strategic Report.
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GREENWORKS WASHROOMS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
There have been no significant events affecting the company since the year end.
The auditors, S&W Partners Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREENWORKS WASHROOMS LTD
We have audited the financial statements of Greenworks Washrooms Ltd (the 'company') for the year ended 30 September 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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GREENWORKS WASHROOMS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREENWORKS WASHROOMS LTD (CONTINUED)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.
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.
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.
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GREENWORKS WASHROOMS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREENWORKS WASHROOMS LTD (CONTINUED)
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:
We obtained a general understanding of the company’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the company’s industry and regulation. We understand that the company complies with the framework through:
∙Outsourcing accounts preparation and tax compliance to external experts,
∙Subscribing to relevant updates from the external experts, and making changes to internal procedures and controls as necessary.
In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the company's ability to conduct its business, and where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the company;
∙The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements.
∙UK taxation law.
The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:
∙Manipulation of the financial statements, especially revenue, via fraudulent journal entries or fictitious sales invoices.
∙Inventory being overvalued due to incorrect costing methods, or inventory being recorded that does not physically exist.
∙Revenue recognised prematurely or deferred inappropriately to manipulate financial results.
∙Management charges being manipulated by allocating costs inappropriately between different entites.
The procedures we carried out to gain evidence in the above areas:
∙Challenging management regarding the assumptions and judgements used in the key accounting estimates and revenue recognition policy, including comparison to post year-end data as appropriate.
∙Occurrence testing on revenue to verify that sales were valid; completeness testing on creditors to ensure that all purchases in the year were correctly recorded; and testing of journal entries, particularly those which were posted outside of normal times or to unexpected accounts.
∙Testing journal entries, focusing particularly on postings to unexpected or unusual accounts and those posted at unusual times.
∙Conducting physical inventory counts and reconciling them with the inventory records to ensure accuracy.
∙Performing cut-off tests to verify that revenue is recognised in the correct accounting period and confirming sales transactions to source documentation.
∙Reviewing the basis and documentation for management charges, ensuring proper allocation.
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GREENWORKS WASHROOMS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GREENWORKS WASHROOMS LTD (CONTINUED)
Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.
for and on behalf of
Statutory Auditors
Brockbourne House
77 Mount Ephraim
Kent
TN4 8BS
Date:
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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BALANCE SHEET
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 23 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Greenworks Washrooms Ltd ('the company') is a limited company limited by shares and domiciled and incorporated in England and Wales.
The address of its registered office and place of business is Unit 1, Warsop Trading Estate, Hever Road, Edenbridge, Kent, TN8 5LD. The principal activity of the company is the provision of washroom services.
2.Accounting policies
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.
Monetary amounts in these financial statements are stated in pounds sterling and are rounded to the nearest whole £1, except where otherwise indicated.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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).
This information is included in the consolidated financial statements of Greenworks Solutions (Holdings) Limited as at 30 September 2024 and these financial statements may be obtained from Unit 1, Warsop Trading Estate, Hever Road, Edenbridge, England, TN8 5LD.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Hygiene services income Revenue is recognised over the course of the contract period. The company receives revenue in advance for contracts whose durations range from three months to one year. At the balance sheet date, the deferred income recognised on the balance sheet represents revenue received in advance for such contracts, which will be released to the Statement of comprehensive income over the contract period. Service income Annual service income is recognised over the maintenance period. The company receives revenue in advance for annual maintenance. At the balance sheet date, the deferred income recognised on the balance sheet represents revenue received in advance for this service, which is released to the Statement of comprehensive income over the maintenance period.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (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:
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
There were no factors that may affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
On 21 June 2024, the Ordinary £1 shares were sub-divided into A Ordinary £0.01 shares. On the same date, 474 £0.01 Ordinary B shares were allotted for a consideration of £31,000.
Share premium account
Capital redemption reserve
Profit and loss account
A debenture exists in favour of the company's banker, which gives a cross guarantee to borrowings made by Greenworks Controlled Environments Limited, Greenworks Washrooms Ltd, Zepbrook Limited, Greenworks Coffee Ltd and Greenworks Solutions (Holdings) Limited.
The net bank balance across the entire group amounted to £13,616 (2023: £342,603). Excluding positive balances in the group, the bank borrowings amounted to £4,314,104 (2023: £4,409,920).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
At the balance sheet date the amount owed by the company to directors in respect of interest-free loans
was £3,000 (2023: £nil).
The parent company is Greenworks Solutions (Holdings) Ltd, a company incorporated in England and Wales. A. R. J. Warren is the majority shareholder of the parent company, and is the ultimate controlling party. Greenworks Solutions (Holdings) Limited prepares group financial statements, and copies can be obtained from Unit 1 Warsop Trading Estate, Hever Road, Edenbridge, Kent, TN8 5LD.
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