Company Registration No. 11373602 (England and Wales)
ROYDON HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
ROYDON HOLDINGS LIMITED
COMPANY INFORMATION
Directors
S P Sumner
W Sumner
G R Wallwork
V Hamer
(Appointed 10 December 2024)
Company number
11373602
Registered office
Units 1-3
Junction Eco Park
Rake Lane
Swinton
M27 8LU
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
ROYDON HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
ROYDON HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Review of the business
The principal activity of the Company is the parent company of a trading group.
The principal activity of the group continues to be that of plastic waste reclamation and the trade of buying, selling, and merchanting waste plastic.
2024 has been a difficult year for the group. Continuing volatility in both availability and price of material saw a significant drop in production and sales in the early part of the year. This encouraged us to review our operating structure to ensure that we achieve operational efficiency. As a result of the review, the decision was taken to relocate an associated company and customer of the group from South Wales to Swinton. This will significantly reduce overhead costs for both entities by allowing a continuous process from the reclamation of waste material to the production of PET flake and granules for resale. The relocation commenced in July 2024 and was completed after the year end, however the closure of the Wales site further impacted the group turnover and profitability in the final quarter of 2024.
Further clarification on the Deposit Return Scheme has been seen, with the Scheme now due to take effect in 2027. This is expected to have a material effect on the supply and quality of feedstock once implemented and with our new operating structure in place, should bring considerable opportunities for growth.
Whilst the directors are disappointed with the results for the year, they are confident that the decisions taken during the year will have considerable benefits for the future. Since the year end, the group has seen improvement in sales and a return to profitability.
Principal risks and uncertainties
The group finances its operations through a mixture of retained profits, bank borrowings and where necessary to fund capital expenditure programmes through the hire purchase financing arrangements. The management's objectives are to:
- retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due; and
- match the repayment schedule of any external finance with the expected cash flows expected to arise from the company's trading activities.
As the group's surplus funds are primarily invested in sterling bank accounts, this limits exposure to price risk.
Surplus funds held in foreign currencies do however expose the group to price risk from foreign exchange movements.
Credit risk associated with these funds is minimised through holding accounts with a UK clearing bank.
The group is exposed to price risk in connection with sales being denominated in foreign currencies. This exposes the group to the uncertainty of exchange rate movements. Hedge accounting is not used by the group since the directors do not consider the additional costs incurred in reducing exchange risk to be worthwhile.
The group's credit risk is primarily attributable to its trade debtors. Credit insurance is utilised to reduce this particular risk.
It is the group's policy that payments to suppliers are made in accordance with those terms and conditions agreed between the group and it's suppliers, provided that all trading terms and conditions have been complied with.
ROYDON HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Key performance indicators
The Group's key financial and other performance indicators during the year were as follows:
2024 2023
Turnover £11,454,384 £27,764,312
Gross Profit £3,135,308 £6,928,034
Gross Profit % 27% 25%
Operating Profit/)Loss) (£2,760,075) £4,919,564
Profit/(Loss) Before tax (£4,930,076) £4,277,495
Net Assets £3,775,032 £8,206,755
V Hamer
Director
16 July 2025
ROYDON HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company continued to be that of an investment holding company.
The principal activity of the trading subsidiaries continued to be that of plastic waste reclamation, and the trade of buying, selling and merchanting waste plastics.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of any dividends.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S P Sumner
W Sumner
G R Wallwork
V Hamer
(Appointed 10 December 2024)
Auditor
PM+M Solutions for Business LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
ROYDON HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
V Hamer
Director
16 July 2025
ROYDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROYDON HOLDINGS LIMITED
- 5 -
Opinion
We have audited the financial statements of Roydon Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2024 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
ROYDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYDON HOLDINGS LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.
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 financial statements.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
ROYDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYDON HOLDINGS LIMITED
- 7 -
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
the nature of the industry and sector, control environment and business performance including the design of the Group's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
the matters discussed among the audit engagement team including significant component audit teams and involving relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;
any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Group's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
ROYDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYDON HOLDINGS LIMITED
- 8 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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.
Daniel Bowles BFP ACA FCCA (Senior Statutory Auditor)
For and on behalf of PM+M Solutions for Business LLP, Statutory Auditor
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
16 July 2025
ROYDON HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
11,454,384
27,764,312
Cost of sales
(8,319,076)
(20,836,278)
Gross profit
3,135,308
6,928,034
Administrative expenses
(5,901,563)
(2,802,656)
Other operating income
6,180
794,186
Operating (loss)/profit
4
(2,760,075)
4,919,564
Share of profits of associates
-
9,209
Interest receivable and similar income
7
2,498
Interest payable and similar expenses
8
(524,946)
(653,776)
Amounts written off investments
9
(1,645,055)
(Loss)/profit before taxation
(4,930,076)
4,277,495
Tax on (loss)/profit
10
498,353
(389,929)
(Loss)/profit for the financial year
(4,431,723)
3,887,566
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ROYDON HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
13
1,094,732
1,400,239
Tangible assets
14
11,038,480
9,789,177
Investments
15
1,644,955
12,133,212
12,834,371
Current assets
Stocks
18
1,705,695
2,142,782
Debtors
19
4,155,344
4,091,136
Cash at bank and in hand
369,722
929,953
6,230,761
7,163,871
Creditors: amounts falling due within one year
20
(9,309,756)
(7,449,417)
Net current liabilities
(3,078,995)
(285,546)
Total assets less current liabilities
9,054,217
12,548,825
Creditors: amounts falling due after more than one year
21
(4,486,527)
(3,300,959)
Provisions for liabilities
Deferred tax liability
24
792,658
1,041,111
(792,658)
(1,041,111)
Net assets
3,775,032
8,206,755
Capital and reserves
Called up share capital
26
100
100
Profit and loss reserves
3,774,932
8,206,655
Total equity
3,775,032
8,206,755
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 16 July 2025 and are signed on its behalf by:
16 July 2025
V Hamer
Director
Company registration number 11373602 (England and Wales)
ROYDON HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
15
6,479,063
7,879,609
6,479,063
7,879,609
Current assets
Debtors
19
188,494
165,775
Creditors: amounts falling due within one year
20
(6,667,457)
(8,045,284)
Net current liabilities
(6,478,963)
(7,879,509)
Net assets
100
100
Capital and reserves
Called up share capital
26
100
100
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £378,000 profit).
The financial statements were approved by the board of directors and authorised for issue on 16 July 2025 and are signed on its behalf by:
16 July 2025
V Hamer
Director
Company registration number 11373602 (England and Wales)
ROYDON HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
100
4,697,089
4,697,189
Year ended 31 October 2023:
Profit and total comprehensive income
-
3,887,566
3,887,566
Dividends
11
-
(378,000)
(378,000)
Balance at 31 October 2023
100
8,206,655
8,206,755
Year ended 31 October 2024:
Loss and total comprehensive income
-
(4,431,723)
(4,431,723)
Balance at 31 October 2024
100
3,774,932
3,775,032
ROYDON HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
100
100
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
378,000
378,000
Dividends
11
-
(378,000)
(378,000)
Balance at 31 October 2023
100
100
Year ended 31 October 2024:
Profit/(Loss) and total comprehensive income
-
-
Balance at 31 October 2024
100
100
ROYDON HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
803,176
4,137,401
Interest paid
(524,946)
(653,776)
Income taxes refunded/(paid)
315,918
(1,030,374)
Net cash inflow from operating activities
594,148
2,453,251
Investing activities
Purchase of tangible fixed assets
(2,170,019)
(555,042)
Proceeds from disposal of tangible fixed assets
24,998
-
Proceeds from disposal of investments
(100)
-
Repayment of loans
(22,819)
600,000
Interest received
2,498
Net cash (used in)/generated from investing activities
(2,167,940)
47,456
Financing activities
Repayment of borrowings
-
(2,217,000)
Proceeds from new bank loans
1,700,000
-
Repayment of bank loans
(281,928)
(805,656)
Payment of finance leases obligations
(404,511)
(266,422)
Dividends paid to equity shareholders
(378,000)
Net cash generated from/(used in) financing activities
1,013,561
(3,667,078)
Net decrease in cash and cash equivalents
(560,231)
(1,166,371)
Cash and cash equivalents at beginning of year
929,953
2,096,324
Cash and cash equivalents at end of year
369,722
929,953
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
1
Accounting policies
Company information
Roydon Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Units 1-3, Junction Eco Park, Rake Lane, Swinton, M27 8LU.
The group consists of Roydon Holdings Limited and all of its subsidiaries.
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.
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. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Roydon Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Investments in associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in associates include acquired goodwill.
If the group’s share of losses in a associate equals or exceeds its investment in the associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the associate.
Unrealised gains arising from transactions with associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover represents goods delivered and PRN (Packaging recovery note) / PERN (Packaging export recovery note) sales during the year excluding VAT. PRN/PERN sales are recognised on the supply of PRN/PERN's.
Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
1.7
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:
Freehold land and buildings
2% Straight Line
Leasehold land and buildings
Straight line over the term of the lease
Leasehold improvements
Straight line over the term of the lease
Plant and equipment
5-50% Straight line
Fixtures and fittings
33.3% Straight line
Motor vehicles
25% Straight line
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 recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
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.
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 group after deducting all of its liabilities.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
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.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
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 group’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 tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 20 -
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.18
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 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 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.
The main areas of judgement that have a risk of causing material misstatement to the carrying amounts of assets and liabilities are in relation to stock provisions and useful economic lives of the company's fixed assets.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Plastic waste reclamation
11,454,384
27,764,312
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
3
Turnover and other revenue
(Continued)
- 21 -
2024
2023
£
£
Turnover analysed by geographical market
UK
10,609,146
25,221,088
Rest of World
845,238
2,543,224
11,454,384
27,764,312
2024
2023
£
£
Other revenue
Interest income
-
2,498
4
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange gains
(23,001)
(50,224)
Depreciation of owned tangible fixed assets
840,494
586,529
Depreciation of tangible fixed assets held under finance leases
74,909
74,215
(Profit)/loss on disposal of tangible fixed assets
(19,685)
415,881
Amortisation of intangible assets
305,507
305,507
Operating lease charges
390,560
403,323
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
60
60
-
-
Administration
9
9
-
-
Directors
3
3
3
3
Total
72
72
3
3
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
5
Employees
(Continued)
- 22 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,985,139
2,906,400
Social security costs
51,847
43,008
Pension costs
140,646
79,051
3,177,632
3,028,459
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
23,750
23,750
Audit of the financial statements of the company's subsidiaries
20,400
18,900
44,150
42,650
For other services
Taxation compliance services
8,000
8,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
-
2,498
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
106,335
114,730
Interest on invoice finance arrangements
78,417
150,177
Other interest on financial liabilities
-
5,166
Interest on finance leases and hire purchase contracts
109,105
143,843
Other interest
231,089
239,860
Total finance costs
524,946
653,776
9
Amounts written off investments
2024
2023
£
£
Other gains and losses
(1,645,055)
-
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(12,871)
48,639
Adjustments in respect of prior periods
32
Total current tax
(12,871)
48,671
Deferred tax
Origination and reversal of timing differences
(485,482)
442,793
Adjustment in respect of prior periods
(101,535)
Total deferred tax
(485,482)
341,258
Total tax (credit)/charge
(498,353)
389,929
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(4,930,076)
4,277,495
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
(1,232,519)
963,292
Tax effect of expenses that are not deductible in determining taxable profit
720,968
41,501
Tax effect of income not taxable in determining taxable profit
(6,250)
(546,498)
Effect of change in corporation tax rate
-
43,717
Group relief
50,014
Other permanent differences
4,203
206
Deferred tax adjustments in respect of prior years
(101,535)
Fixed asset differences
15,245
(60,768)
Taxation (credit)/charge
(498,353)
389,929
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
-
378,000
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
12
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Fixed asset investments
15
1,645,055
-
Recognised in:
Amounts written off investments
1,645,055
-
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
3,055,069
Amortisation and impairment
At 1 November 2023
1,654,830
Amortisation charged for the year
305,507
At 31 October 2024
1,960,337
Carrying amount
At 31 October 2024
1,094,732
At 31 October 2023
1,400,239
The company had no intangible fixed assets at 31 October 2024 or 31 October 2023.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 November 2023
5,055,711
275,009
136,845
10,890,131
279,645
13,667
16,651,008
Additions
2,500
3,422
628,399
184,189
101,509
920,019
Business combinations
1,250,000
1,250,000
Disposals
(195,000)
(13,667)
(208,667)
At 31 October 2024
5,058,211
278,431
136,845
1,878,399
10,879,320
381,154
18,612,360
Depreciation and impairment
At 1 November 2023
53,965
275,009
130,406
6,140,403
255,973
6,075
6,861,831
Depreciation charged in the year
53,998
114
2,846
780,155
76,011
2,279
915,403
Eliminated in respect of disposals
(195,000)
(8,354)
(203,354)
At 31 October 2024
107,963
275,123
133,252
6,725,558
331,984
7,573,880
Carrying amount
At 31 October 2024
4,950,248
3,308
3,593
1,878,399
4,153,762
49,170
11,038,480
At 31 October 2023
5,001,746
6,439
4,749,728
23,672
7,592
9,789,177
The company had no tangible fixed assets at 31 October 2024 or 31 October 2023.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
14
Tangible fixed assets
(Continued)
- 26 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
2,049,511
2,708,236
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
6,479,063
6,478,963
Investments in associates
17
1,644,955
1,400,646
1,644,955
6,479,063
7,879,609
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 November 2023 and 31 October 2024
1,644,955
Impairment
At 1 November 2023
-
Charge for the year
1,644,955
At 31 October 2024
1,644,955
Carrying amount
At 31 October 2024
-
At 31 October 2023
1,644,955
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
15
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 November 2023 and 31 October 2024
7,879,609
Impairment
At 1 November 2023
-
Impairment losses
1,400,546
At 31 October 2024
1,400,546
Carrying amount
At 31 October 2024
6,479,063
At 31 October 2023
7,879,609
16
Subsidiaries
Details of the company's subsidiaries at 31 October 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Roydon Group PLC
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
100.00
-
Roydon Polythene Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
0
100.00
Roydon Resource Recovery Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
0
100.00
Roydon Granulation Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
0
100.00
17
Associates
Details of associates at 31 October 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Roydon Bottle Recycling Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
22
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 28 -
18
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,705,695
2,142,782
19
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,385,468
3,080,740
Corporation tax recoverable
303,015
Other debtors
2,037,291
282,456
188,494
165,775
Prepayments and accrued income
474,483
403,852
3,897,242
4,070,063
188,494
165,775
Amounts falling due after more than one year:
Deferred tax asset (note 24)
258,102
21,073
Total debtors
4,155,344
4,091,136
188,494
165,775
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
22
83,456
272,000
Obligations under finance leases
23
531,756
515,219
Trade creditors
2,879,216
2,557,330
Corporation tax payable
48,584
48,552
Other taxation and social security
51,032
278,730
-
-
Other creditors
3,174,434
2,096,866
6,667,457
8,045,284
Accruals and deferred income
2,541,278
1,680,720
9,309,756
7,449,417
6,667,457
8,045,284
Amounts due to the directors of £2,035,108 (2023: £1,601,683) were included in other creditors at the year end.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 29 -
21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
22
3,153,674
1,547,058
Obligations under finance leases
23
1,332,853
1,753,901
4,486,527
3,300,959
-
-
Amounts included above which fall due after five years are as follows:
Payable by instalments
589,130
827,058
-
-
22
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,237,130
1,819,058
Payable within one year
83,456
272,000
Payable after one year
3,153,674
1,547,058
Bank loans of £3,237,130 (2023 - £1,819,058) are secured by a cross Guarantee in favour of Barclays Bank PLC and Debenture in favour of Barclays Bank PLC from/granted by all group companies. The loan interest is at base rate plus a standard variable rate and has no fixed repayment amounts.
23
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
493,054
615,400
In two to five years
1,735,992
2,116,514
2,229,046
2,731,914
-
-
Less: future finance charges
(364,437)
(462,794)
1,864,609
2,269,120
Obligations due under finance leases are secured on the assets to which the agreement relates.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 30 -
24
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
883,447
1,042,105
-
21,073
Tax losses
(156,159)
-
-
-
Investments
-
-
180,942
-
Short term timing differences
65,370
(994)
77,160
-
792,658
1,041,111
258,102
21,073
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
1,020,038
-
Credit to profit or loss
(485,482)
-
Liability at 31 October 2024
534,556
-
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
140,646
79,051
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
There are no contribution amounts outstanding at year end.
26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 31 -
27
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
167,693
158,797
-
-
Between two and five years
149,955
443,452
-
-
317,648
602,249
-
-
28
Related party transactions
Roydon Recycling UK Limited
During the year the group entered into transactions with Roydon Recycling UK Limited, a company of which Mr G Wallwork and Mrs S P Sumner were directors and shareholders of the parent company Roydon Recycling Holdings (UK) Limited.
During the year the group made sales of goods and services to this company of £Nil ( 2023: £254,057) and purchased goods and services from this company totaling £Nil (2023: £1,802,369).
Roydon Bottle Recycling Limited
During the year the group entered into transactions with Roydon Bottle Recycling Limited.
During the year the group made sales of goods and services to Roydon Bottle Recycling Limited of £4,105,106 (2023: £5,585,427) and purchased goods and services from this company totaling £1,750,226 (2023: £5,137,334).
A balance of £Nil (2023: £23,592) was owed to Roydon Bottle Recycling Limited at year end.
A balance of £1,195,750 (2023: £Nil) was owed from Roydon Bottle Recycling Limited at the year end.
During the year the investment held in Roydon Bottle Recycling Limited of £1,400,646 has been written off.
Outstanding balances are payable on demand, interest free and not secured.
29
Directors' transactions
Dividends totalling £0 (2023 - £378,000) were paid in the year in respect of shares held by the company's directors.
ROYDON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 32 -
30
Cash generated from group operations
2024
2023
£
£
(Loss)/profit after taxation
(4,431,723)
3,887,566
Adjustments for:
Share of results of associates and joint ventures
-
(9,209)
Taxation (credited)/charged
(498,353)
389,929
Finance costs
524,946
653,776
Investment income
(2,498)
(Gain)/loss on disposal of tangible fixed assets
(19,685)
415,881
Amortisation and impairment of intangible assets
305,507
305,507
Depreciation and impairment of tangible fixed assets
915,403
660,744
Other gains and losses
1,645,055
-
Movements in working capital:
Decrease in stocks
437,087
251,108
(Increase)/decrease in debtors
(107,189)
3,255,284
Increase/(decrease) in creditors
2,032,128
(5,670,687)
Cash generated from operations
803,176
4,137,401
31
Analysis of changes in net debt - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
929,953
(560,231)
369,722
Borrowings excluding overdrafts
(1,819,058)
(1,418,072)
(3,237,130)
Obligations under finance leases
(2,269,120)
404,511
(1,864,609)
(3,158,225)
(1,573,792)
(4,732,017)
2024-10-312023-11-01falsefalseCCH SoftwareCCH Accounts Production 2025.100S P SumnerW SumnerG R WallworkV Hamerfalse113736022023-11-012024-10-3111373602bus:Director12023-11-012024-10-3111373602bus:Director22023-11-012024-10-3111373602bus:Director32023-11-012024-10-3111373602bus:Director42023-11-012024-10-3111373602bus:RegisteredOffice2023-11-012024-10-31113736022024-10-3111373602bus:Consolidated2024-10-3111373602bus:Consolidated2023-11-012024-10-3111373602bus:Consolidated2022-11-012023-10-31113736022022-11-012023-10-3111373602core:Goodwillbus:Consolidated2024-10-3111373602core:Goodwillbus:Consolidated2023-10-3111373602bus:Consolidated2023-10-3111373602core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2024-10-3111373602core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2024-10-3111373602core:LeaseholdImprovementsbus:Consolidated2024-10-3111373602core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2024-10-3111373602core:PlantMachinerybus:Consolidated2024-10-3111373602core:FurnitureFittingsbus:Consolidated2024-10-3111373602core:MotorVehiclesbus:Consolidated2024-10-3111373602core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-10-3111373602core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-10-3111373602core:LeaseholdImprovementsbus:Consolidated2023-10-3111373602core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2023-10-3111373602core:PlantMachinerybus:Consolidated2023-10-3111373602core:FurnitureFittingsbus:Consolidated2023-10-3111373602core:MotorVehiclesbus:Consolidated2023-10-31113736022023-10-3111373602core:ShareCapitalbus:Consolidated2024-10-3111373602core:ShareCapitalbus:Consolidated2023-10-3111373602core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-10-3111373602core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-10-3111373602core:ShareCapital2024-10-3111373602core:ShareCapital2023-10-3111373602core:ShareCapitalbus:Consolidated2022-10-31113736022022-10-3111373602core:ShareCapital2022-10-3111373602core:RetainedEarningsAccumulatedLosses2022-10-3111373602core:RetainedEarningsAccumulatedLosses2023-10-3111373602core:RetainedEarningsAccumulatedLosses2024-10-3111373602bus:Consolidated2022-10-3111373602core:Goodwill2023-11-012024-10-3111373602core:LandBuildingscore:OwnedOrFreeholdAssets2023-11-012024-10-3111373602core:LandBuildingscore:LongLeaseholdAssets2023-11-012024-10-3111373602core:LeaseholdImprovements2023-11-012024-10-3111373602core:PlantMachinery2023-11-012024-10-3111373602core:FurnitureFittings2023-11-012024-10-3111373602core:MotorVehicles2023-11-012024-10-3111373602core:UKTaxbus:Consolidated2023-11-012024-10-3111373602core:UKTaxbus:Consolidated2022-11-012023-10-3111373602bus:Consolidated12023-11-012024-10-3111373602bus:Consolidated12022-11-012023-10-3111373602bus:Consolidated22023-11-012024-10-3111373602core:Goodwillbus:Consolidated2023-10-3111373602core:Goodwillbus:Consolidated2023-11-012024-10-3111373602core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-10-3111373602core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-10-3111373602core:LeaseholdImprovementsbus:Consolidated2023-10-3111373602core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2023-10-3111373602core:PlantMachinerybus:Consolidated2023-10-3111373602core:FurnitureFittingsbus:Consolidated2023-10-3111373602core:MotorVehiclesbus:Consolidated2023-10-3111373602bus:Consolidated2023-10-3111373602core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-11-012024-10-3111373602core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-11-012024-10-3111373602core:LeaseholdImprovementsbus:Consolidated2023-11-012024-10-3111373602core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2023-11-012024-10-3111373602core:PlantMachinerybus:Consolidated2023-11-012024-10-3111373602core:FurnitureFittingsbus:Consolidated2023-11-012024-10-3111373602core:MotorVehiclesbus:Consolidated2023-11-012024-10-3111373602core:PlantMachinery2024-10-3111373602core:PlantMachinery2023-10-3111373602core:Subsidiary12023-11-012024-10-3111373602core:Subsidiary22023-11-012024-10-3111373602core:Subsidiary32023-11-012024-10-3111373602core:Subsidiary42023-11-012024-10-3111373602core:Subsidiary112023-11-012024-10-3111373602core:Subsidiary222023-11-012024-10-3111373602core:Subsidiary332023-11-012024-10-3111373602core:Subsidiary442023-11-012024-10-3111373602core:Associate12023-11-012024-10-3111373602core:Associate112023-11-012024-10-3111373602core:CurrentFinancialInstruments2024-10-3111373602core:CurrentFinancialInstruments2023-10-3111373602core:CurrentFinancialInstrumentsbus:Consolidated2024-10-3111373602core:CurrentFinancialInstrumentsbus:Consolidated2023-10-3111373602core:Non-currentFinancialInstrumentsbus:Consolidated2024-10-3111373602core:Non-currentFinancialInstrumentsbus:Consolidated2023-10-3111373602core:Non-currentFinancialInstruments2024-10-3111373602core:Non-currentFinancialInstruments2023-10-3111373602core:WithinOneYearbus:Consolidated2024-10-3111373602core:WithinOneYearbus:Consolidated2023-10-3111373602core:CurrentFinancialInstrumentscore:WithinOneYear2024-10-3111373602core:CurrentFinancialInstrumentscore:WithinOneYear2023-10-3111373602core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-10-3111373602core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-10-3111373602core:Non-currentFinancialInstrumentscore:AfterOneYear2024-10-3111373602core:Non-currentFinancialInstrumentscore:AfterOneYear2023-10-3111373602core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-10-3111373602core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-10-3111373602core:WithinOneYear2024-10-3111373602core:WithinOneYear2023-10-3111373602core:BetweenTwoFiveYearsbus:Consolidated2024-10-3111373602core:BetweenTwoFiveYearsbus:Consolidated2023-10-3111373602core:BetweenTwoFiveYears2024-10-3111373602core:BetweenTwoFiveYears2023-10-3111373602bus:PrivateLimitedCompanyLtd2023-11-012024-10-3111373602bus:FRS1022023-11-012024-10-3111373602bus:Audited2023-11-012024-10-3111373602bus:ConsolidatedGroupCompanyAccounts2023-11-012024-10-3111373602bus:FullAccounts2023-11-012024-10-31xbrli:purexbrli:sharesiso4217:GBP