Company Registration No. 06890221 (England and Wales)
ROYDON GROUP PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2024
31 October 2024
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
ROYDON GROUP PLC
COMPANY INFORMATION
Directors
S P Sumner
G R Wallwork
W Sumner
Ms V Hamer
(Appointed 10 December 2024)
Secretary
S P Sumner
Company number
06890221
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 GROUP PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
ROYDON GROUP PLC
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.

Key performance indicators

The company's key financial and other performance indicators during the year were as follows:

2024          2023

Net Assets             £5,564,760     £8,306,833

ROYDON GROUP PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

On behalf of the board

W Sumner
Director
16 July 2025
ROYDON GROUP PLC
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 in the year under review was that of the manufacture of plastics in primary forms.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £1,400,646. The directors do not recommend payment of a further dividend.

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
G R Wallwork
W Sumner
Ms V Hamer
(Appointed 10 December 2024)
Auditor

PM+M Solutions for Business LLP were appointed as auditor to the company 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 company and of the profit or loss of the company for that period.

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

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 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.

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 company’s auditor 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 company’s auditor is aware of that information.

ROYDON GROUP PLC
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
W Sumner
Director
16 July 2025
ROYDON GROUP PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROYDON GROUP PLC
- 5 -
Opinion

We have audited the financial statements of Roydon Group plc (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual 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:

ROYDON GROUP PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROYDON GROUP PLC (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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

 

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

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 GROUP PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROYDON GROUP PLC (CONTINUED)
- 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:

 

 

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 Company'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 Company 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:

 

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 GROUP PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROYDON GROUP PLC (CONTINUED)
- 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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 GROUP PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
-
0
-
0
Administrative expenses
(1,977,470)
2,032,939
Other operating income
343,800
943,800
Operating (loss)/profit
4
(1,633,670)
2,976,739
Interest receivable and similar income
7
1,400,646
2,083
Interest payable and similar expenses
8
(345,432)
(192,172)
Other gains and losses
9
(1,000,000)
-
0
(Loss)/profit before taxation
(1,578,456)
2,786,650
Tax on (loss)/profit
10
237,029
70,957
(Loss)/profit for the financial year
(1,341,427)
2,857,607

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ROYDON GROUP PLC
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
4,950,248
5,001,746
Investments
14
7,098,433
8,098,433
12,048,681
13,100,179
Current assets
Debtors
16
7,369,528
8,136,966
Cash at bank and in hand
189,786
239,393
7,559,314
8,376,359
Creditors: amounts falling due within one year
17
(10,889,561)
(11,622,647)
Net current liabilities
(3,330,247)
(3,246,288)
Total assets less current liabilities
8,718,434
9,853,891
Creditors: amounts falling due after more than one year
18
(3,153,674)
(1,547,058)
Net assets
5,564,760
8,306,833
Capital and reserves
Called up share capital
22
54,492
54,492
Capital redemption reserve
974
974
Other reserves
4,644,534
5,644,534
Profit and loss reserves
864,760
2,606,833
Total equity
5,564,760
8,306,833

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

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:
W Sumner
Director
Company registration number 06890221 (England and Wales)
ROYDON GROUP PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Capital redemption reserve
Merger reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2022
54,492
974
5,644,534
127,226
5,827,226
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
-
2,857,607
2,857,607
Dividends
11
-
-
-
(378,000)
(378,000)
Balance at 31 October 2023
54,492
974
5,644,534
2,606,833
8,306,833
Year ended 31 October 2024:
Loss and total comprehensive income
-
-
-
(1,341,427)
(1,341,427)
Dividends
11
-
-
-
(1,400,646)
(1,400,646)
Transfer to merger reserve
-
-
(1,000,000)
1,000,000
-
Balance at 31 October 2024
54,492
974
4,644,534
864,760
5,564,760
ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information

Roydon Group plc is a private company limited by shares incorporated in England and Wales. The registered office is Units 1-3, Junction Eco Park, Rake Lane, Swinton, M27 8LU.

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.

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of Roydon Holdings Limited. These consolidated financial statements are available from its registered office, Units 1-3, Junction Eco Park, Rake Lane, Swinton, United Kingdom, M27 8LU.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Tangible fixed assets

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

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

Freehold buildings
2% Straight Line

Freehold land is not depreciated.

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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.5
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.

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.

1.6
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.

1.7
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. Financial assets classified as receivable within one year are not amortised.

ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

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.

1.8
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.

1.9
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.

ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
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 when the company has 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.

1.10
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.

1.11
Retirement benefits

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

1.12
Leases
As lessor

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.

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.

 

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 the useful economic lives of the company's fixed assets.

3
Revenue
ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
3
Revenue
(Continued)
- 16 -
2024
2023
£
£
Interest income
-
2,083
Dividends received
1,400,646
-
Rent receivable
343,800
343,800
Management fees receivable
-
600,000
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
6,000
4,500
Depreciation of owned tangible fixed assets
53,998
53,965
Operating lease charges
-
0
79,598
5
Employees

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

2024
2023
Number
Number
Directors
3
3

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
406,824
337,589
Social security costs
51,847
43,008
Pension costs
99,410
28,670
558,081
409,267
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
406,824
337,589
Company pension contributions to defined contribution schemes
99,410
28,670
506,234
366,259
ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
150,000
117,600
Company pension contributions to defined contribution schemes
8,000
4,350
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
-
0
2,083
Income from fixed asset investments
Income from shares in group undertakings
1,400,646
-
0
Total income
1,400,646
2,083
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
114,343
112,251
Other interest
231,089
79,921
345,432
192,172
9
Other gains and losses
2024
2023
£
£
Amounts written off non-current loans
(1,000,000)
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
48,639
ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
10
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
(237,029)
(21,073)
Adjustment in respect of prior periods
-
0
(98,523)
Total deferred tax
(237,029)
(119,596)
Total tax credit
(237,029)
(70,957)

The actual credit 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
(1,578,456)
2,786,650
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
(394,614)
627,554
Tax effect of expenses that are not deductible in determining taxable profit
494,247
11,563
Tax effect of income not taxable in determining taxable profit
-
0
(613,286)
Effect of change in corporation tax rate
-
0
(2,153)
Group relief
-
0
(8,264)
Permanent capital allowances in excess of depreciation
-
0
12,152
Deferred tax adjustments in respect of prior years
-
0
(98,523)
Group Income
(350,162)
-
0
Fixed Asset Differences
13,500
-
0
Taxation credit for the year
(237,029)
(70,957)
11
Dividends
2024
2023
£
£
Final paid
1,400,646
378,000
ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
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
14
1,000,000
-
Recognised in:
Other gains and losses
1,000,000
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

13
Tangible fixed assets
Freehold buildings
£
Cost
At 1 November 2023
5,055,711
Additions
2,500
At 31 October 2024
5,058,211
Depreciation and impairment
At 1 November 2023
53,965
Depreciation charged in the year
53,998
At 31 October 2024
107,963
Carrying amount
At 31 October 2024
4,950,248
At 31 October 2023
5,001,746
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
7,098,433
8,098,433
ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
14
Fixed asset investments
(Continued)
- 20 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 & 31 October 2024
8,098,433
Impairment
At 1 November 2023
-
Impairment losses
1,000,000
At 31 October 2024
1,000,000
Carrying amount
At 31 October 2024
7,098,433
At 31 October 2023
8,098,433
15
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
Roydon Polythene Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
100.00
Roydon Granulation Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
100.00
Roydon Resource Recovery Limited
Unit 1-3 Junction Eco Park, Rake Lane, Swinton, M27 8LU
Ordinary
100.00
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
43,313
71,609
Amounts owed by group undertakings
7,068,113
8,044,284
7,111,426
8,115,893
ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
16
Debtors
(Continued)
- 21 -
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 20)
258,102
21,073
Total debtors
7,369,528
8,136,966

Amounts owed by group undertakings are interest free and repayable on demand.

17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
83,456
272,000
Trade creditors
16,156
30,838
Amounts owed to group undertakings
8,332,474
8,932,958
Corporation tax
48,552
48,552
Other taxation and social security
7,756
26,075
Other creditors
2,059,708
2,228,645
Accruals and deferred income
341,459
83,579
10,889,561
11,622,647

The amounts owed to group undertakings are interest free and repayable on demand.

18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
3,153,674
1,547,058
Creditors which fall due after five years are payable as follows:
Payable by instalments
589,130
827,058
19
Loans and overdrafts
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
ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
19
Loans and overdrafts
(Continued)
- 22 -

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 base rate plus a standard variable rate and has no fixed repayment amounts.

 

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
-
21,073
Losses and other deductions
180,942
-
Short term timing differences
77,160
-
258,102
21,073
2024
Movements in the year:
£
Asset at 1 November 2023
(21,073)
Credit to profit or loss
(237,029)
Asset at 31 October 2024
(258,102)
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
99,410
28,670

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.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
544,917
544,917
54,492
54,492
23
Reserves
ROYDON GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
23
Reserves
(Continued)
- 23 -

Other Reserves

The other reserve is the excess money received for issued shares above the par value.

 

Capital Redemption Reserve

This is a non-distributable reserve created following a historic change in the structure of share capital.

 

Profit and Loss Reserve

The profit and loss reserves include all current and prior period retained profits.

 

Merger Reserve

This reserve relates to investments held. This year there has been a transfer with this reserves due to the impairment of an investment.

25
Ultimate controlling party

The company is ultimately controlled by its parent company Roydon Holdings Limited. The smallest and largest group into which the entity is consolidated is Roydon Holdings Limited.The financial statements can be obtained from the Registered Office: Units 1-3, Junction Eco Park, Rake Lane, Swinton, M27 8LU.

 

Roydon Holdings Limited controls 100% of the company's issued share capital and is the direct parent company.

26
Related party transactions

Roydon Bottle Recycling Limited

During the year the company entered into transactions with Roydon Bottle Recycling Limited, a company of which Mr G Wallwork and Mr W Sumner are directors and shareholders and of which Mrs S Sumner is a director.

 

During the year the company made sales of goods and services to this company of £Nil (2023: £5,053). A balance of £Nil (2023: £1,102,347) was owed to Roydon Bottle Recycling Limited at 31 October 2024.

 

A balance of £500,000 (2023; £Nil) was owed from Roydon Bottle Recycling Limited at 31 October 2024, which has been provided for in full.

 

Outstanding balances are payable on demand, interest free and not secured.

 

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