Company Registration No. 03364372 (England and Wales)
ZEST RECYCLE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
PAGES FOR FILING WITH REGISTRAR
ZEST RECYCLE LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
ZEST RECYCLE LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
51,510
53,371
Current assets
Debtors
5
2,872,762
2,720,068
Cash at bank and in hand
23,360
118,955
2,896,122
2,839,023
Creditors: amounts falling due within one year
6
(1,930,063)
(1,949,842)
Net current assets
966,059
889,181
Total assets less current liabilities
1,017,569
942,552
Creditors: amounts falling due after more than one year
7
(178,167)
-
0
Provisions for liabilities
(7,000)
(7,000)
Net assets
832,402
935,552
Capital and reserves
Called up share capital
9
132
132
Other reserves
38,096
46,616
Profit and loss reserves
794,174
888,804
Total equity
832,402
935,552
ZEST RECYCLE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2024
30 September 2024
- 2 -

For the financial year ended 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
A Windsor
Director
Company registration number 03364372 (England and Wales)
ZEST RECYCLE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Share capital
Share based payment reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
100
-
817,656
817,756
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
71,148
71,148
Issue of share capital
9
32
-
-
32
Transfers
-
46,616
-
0
46,616
Balance at 30 September 2023
132
46,616
888,804
935,552
Year ended 30 September 2024:
Loss and total comprehensive income
-
-
(94,630)
(94,630)
Other movements
-
(8,520)
-
(8,520)
Balance at 30 September 2024
132
38,096
794,174
832,402
ZEST RECYCLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
1
Accounting policies
Company information

Zest Recycle Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 29 Childerditch Industrial Estate, Childerditch Hall Drive, Little Warley, Brentwood, Essex, CM13 3HD.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Revenue for waste disposal is recognised on completion of the disposal. Revenue for equipment hire is recognised following collection of the equipment by the customer. Service fee income is recognised once the waste cost savings are negotiated and agreed with customer's waste disposal provider.

1.3
Tangible fixed assets

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

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

Plant and machinery
25% reducing balance basis
Fixtures, fittings & equipment
25% reducing balance basis
Computer equipment
10% reducing balance basis

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

1.4
Impairment of fixed assets

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

ZEST RECYCLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 5 -

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

 

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

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

1.5
Cash and cash equivalents

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

1.6
Financial instruments

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

 

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

 

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

Basic financial assets

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

Classification of financial liabilities

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

ZEST RECYCLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities

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

 

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

 

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

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Taxation

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

Current tax

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

Deferred tax

Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

1.9
Employee benefits

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

 

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

 

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

1.10
Retirement benefits

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

1.11
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using an appropriate valuation model. The Black Scholes model has been adopted for basic share options and a discounted cash flow model has been adopted for reverse vesting options. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

ZEST RECYCLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 7 -

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.12
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

 

Accruals

Accruals are made for contracts in progress at the year end in respect of expected income and any associated costs involved in delivering on that contract. The calculation requires management to assess each contract and make a best estimate on the progress on contracts and costs to complete.

 

 

3
Employees

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

2024
2023
Number
Number
Total
18
15
ZEST RECYCLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
4
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 October 2023
442,861
61,263
15,052
519,176
Additions
1,357
1,996
-
0
3,353
Disposals
-
0
(57,938)
-
0
(57,938)
At 30 September 2024
444,218
5,321
15,052
464,591
Depreciation and impairment
At 1 October 2023
403,002
57,159
5,644
465,805
Depreciation charged in the year
1,558
1,358
1,505
4,421
Eliminated in respect of disposals
-
0
(57,145)
-
0
(57,145)
At 30 September 2024
404,560
1,372
7,149
413,081
Carrying amount
At 30 September 2024
39,658
3,949
7,903
51,510
At 30 September 2023
39,859
4,104
9,408
53,371
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,019,826
1,368,134
Amounts owed by group undertakings
1,705,643
1,316,111
Other debtors
147,293
35,823
2,872,762
2,720,068
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
482,930
533,234
Trade creditors
941,908
958,691
Amounts owed to group undertakings
373,164
331,116
Corporation tax
40,097
53,931
Other taxation and social security
18,080
15,920
Other creditors
73,884
56,950
1,930,063
1,949,842

Included within bank loans and overdrafts is an amount of £482,930 (2023: £533,234) relating to an invoice discounting agreement with IGF. This amount is secured by a fixed and floating charge over the assets of the company and a cross guarantee with fellow subsidiary company Windsor Waste Management Limited.

ZEST RECYCLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
178,167
-
0
8
Share-based payment transactions
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 October 2023
16
-
0
136.22
-
0
Granted
-
0
16
-
0
136.22
Outstanding at 30 September 2024
16
16
-
0
136.22
Exercisable at 30 September 2024
-
0
-
0
-
0
-
0
Liabilities and expenses

During the year, the company recognised total share-based payment expenses of £(8,520) (2023 - £46,616) which related to equity settled share based payment transactions.

ZEST RECYCLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
8
Share-based payment transactions
(Continued)
- 10 -

On 1 September 2023 two of the directors of Zest Recycle Limited were granted options over ordinary shares which were subject to various vesting conditions. Each option granted had a strike price of £10,000. If the options are not (or cannot) be exercised they will lapse on 1 September 2028. The options cannot be exercised if the vesting conditions are not met or if the individuals cease to be employees of the company (at the discretion of the company's board of directors).

 

The fair value of options has been calculated using the Black Scholes model. In applying this model the inputs were as follows:

 

 

On 1 September 2023, the company issued a total of 32 ordinary shares to two of the company's directors which were subject to a series of restrictions which will be lifted once the conditions or reverse vesting options are met. The following restrictions were implemented on issuance of the shares:

 


The restrictions of the shares issues will be lifted once the vesting conditions are met.

 

The total expense arising from share-based payments recognised in the profit and loss was £(8,520) (2023: £46,616)

9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
132
132
132
132
10
Financial commitments, guarantees and contingent liabilities

The company provides cross guarantees in respect of bank loans available to fellow subsidiary company Windsor Waste Management Limited. At the balance sheet date the net indebtedness of the fellow subsidiary company amounted to £926,232 (2023: £1,111,179).

12
Directors' transactions

Personal guarantees have been provided as security over the bank loans in the company to the value of £226,617 by the directors.

ZEST RECYCLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
13
Operating lease commitments

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

2024
2023
£
£
50,489
49,009
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