Company registration number 02804996 (England and Wales)
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
COMPANY INFORMATION
Directors
P A Hopkins
G Hopkins
Secretary
Mrs S Hopkins
Company number
02804996
Registered office
Bullock Street
West Bromwich
West Midlands
B70 7HE
Auditor
Sumer Auditco Limited
The Beehive Building
Beehive Ring Road
Gatwick
Crawley
United Kingdom
RH6 0PA
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Principal activities
The principal activity of the company is the provision of complete waste management services and industrial cleaning.
Review of the business
The company has seen continued growth year on year. The continual investment in the site and people is part of the company’s long term strategy to constantly adapt to our customers needs.
Financial performance for the year was in line with management expectations with revenue for the year to 31 October 2024 of £17.7m, an increase of 10% compared to the revenue of £16.1m for the year to 31 October 2023.
Operating profit before interest and taxation has been stable this year at £791K (4.5%) (2023: 6.3%)
Principal risks and uncertainties
The company does not actively use financial instruments as parts of its financial risk management and during the year the company has been exposed to risks of supplier prices increases, credit risk, liquidity risk and cash flow risk. The directors do not consider any other risks attaching to the use of financial instruments to be material to an assessment of its financial position. The strong cash position of the company along with its lack of external debt, means that the company is well prepared for market changes.
Key performance indicators
The Directors consider the key performance indicators of the company to be revenue and operating profit before interest and tax, which are shown on page 7 of the accounts.
G Hopkins
Director
1 August 2025
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £100,000. 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:
P A Hopkins
G Hopkins
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the review of business and a review of principle risks and uncertainties.
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.
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
G Hopkins
Director
1 August 2025
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
- 4 -
Opinion
We have audited the financial statements of Robert Hopkins Environmental Services Limited (the 'company') for the year ended 31 October 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, 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:
give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit 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 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.
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.
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED (CONTINUED)
- 5 -
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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.
Based on our understanding of the company and the industry in which it operates, we identified that principal risks of non-compliance with laws and regulations related to breaches of waste management regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. Additionally, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED (CONTINUED)
- 6 -
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks related to posting journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions. Audit procedures performed by the engagement team included:
- Discussions with management and those charged with governance including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
- Evaluation and testing of the operating effectiveness of management's entity level controls designed to prevent and detect irregularities;
- Performing testing on month-end adjustments;
- Incorporating unpredictability into the nature, timing and/or extent of our testing;
- Challenging assumptions and judgements made by management in their significant accounting estimates;
- Identifying and testing journal entries, in particular any journal entries posted by infrequent users or senior management or posted with descriptions indicating a higher level of risk.
- Identifying and testing evidence provided in relation to regulatory licencing requirements.
- Testing carried out in relation to valuation of fixed assets and there depreciation amounts.
Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.
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.
Mr Alan Jones FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
Chartered Accountants
The Beehive Building
Beehive Ring Road
Gatwick
Crawley
RH6 0PA
United Kingdom
5 August 2025
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
17,754,967
16,127,465
Cost of sales
(13,547,626)
(11,698,988)
Gross profit
4,207,341
4,428,477
Administrative expenses
(3,439,698)
(3,395,010)
Other operating income
1,579
1,721
Operating profit
4
769,222
1,035,188
Interest receivable and similar income
7
41,012
8,453
Interest payable and similar expenses
8
(18,812)
(15,206)
Profit before taxation
791,422
1,028,435
Tax on profit
9
(193,671)
(221,133)
Profit for the financial year
597,751
807,302
The notes on pages 11 to 21 form part of these financial statements.
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
£
£
Profit for the year
597,751
807,302
Other comprehensive income
-
-
Total comprehensive income for the year
597,751
807,302
The notes on pages 11 to 21 form part of these financial statements.
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,279,429
1,750,344
Current assets
Debtors
12
5,175,546
4,961,101
Cash at bank and in hand
2,435,113
2,462,205
7,610,659
7,423,306
Creditors: amounts falling due within one year
13
(3,343,097)
(3,100,723)
Net current assets
4,267,562
4,322,583
Total assets less current liabilities
6,546,991
6,072,927
Creditors: amounts falling due after more than one year
14
(234,516)
(347,765)
Provisions for liabilities
Deferred tax liability
16
531,333
441,771
(531,333)
(441,771)
Net assets
5,781,142
5,283,391
Capital and reserves
Called up share capital
18
114
114
Profit and loss reserves
5,781,028
5,283,277
Total equity
5,781,142
5,283,391
The notes on pages 11 to 21 form part of these financial statements.
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 1 August 2025 and are signed on its behalf by:
G Hopkins
Director
Company registration number 02804996 (England and Wales)
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
114
4,575,975
4,576,089
Year ended 31 October 2023:
Profit and total comprehensive income
-
807,302
807,302
Dividends
10
-
(100,000)
(100,000)
Balance at 31 October 2023
114
5,283,277
5,283,391
Year ended 31 October 2024:
Profit and total comprehensive income
-
597,751
597,751
Dividends
10
-
(100,000)
(100,000)
Balance at 31 October 2024
114
5,781,028
5,781,142
The notes on pages 11 to 21 form part of these financial statements.
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
1
Accounting policies
Company information
Robert Hopkins Environmental Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bullock Street, West Bromwich, West Midlands, B70 7HE.
1.1
Basis of preparation
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
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
Turnover
Turnover represents the total invoice value, excluding value added tax, of sales made during the year.
The company recognises revenue from the following major sources:
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 12 -
Provision of waste management services
Revenue from contracts for the provision of waste management services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when the cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. .
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 basis:
Freehold land and buildings
Nil
Plant and equipment
15-20% on cost and 10% reducing balance
Fixtures and fittings
25-33% on cost and 10% reducing balance
Computers
33% on cost
Motor vehicles
25% reducing balance
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
1.5
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.6
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred 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.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8
Leases
As lessee
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 statement of financial position 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.
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
Rentals payable under operating leases, including any lease incentives received, 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 leases asset are consumed.
1.9
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Useful economical lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and the residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Accruals
The company makes estimates for accruals of costs where invoices have not been received at the reporting date. These estimates are based on historical experience, contractual obligations and other relevant factors. The directors review such costs regularly and update them as required to reflect the most current information.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
17,754,967
16,127,465
2024
2023
£
£
Other revenue
Interest income
41,012
8,453
Grants received
1,579
1,721
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(1,579)
(1,721)
Fees payable to the company's auditor for the audit of the company's financial statements
15,751
10,038
Depreciation of tangible fixed assets
301,980
262,072
Loss on disposal of tangible fixed assets
284
28,748
Operating lease charges
88,593
(603,783)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Direct labour
66
61
Directors
2
2
Total
68
63
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,056,722
3,312,661
Social security costs
38,888
30,801
4,095,610
3,343,462
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
287,000
272,197
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
287,000
272,197
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
41,012
8,453
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
10
Interest on finance leases and hire purchase contracts
15,662
15,142
Other interest
3,150
54
18,812
15,206
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
104,109
211,565
Adjustments in respect of prior periods
(7,942)
Total current tax
104,109
203,623
Deferred tax
Origination and reversal of timing differences
89,562
17,510
Total tax charge
193,671
221,133
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
791,422
1,028,435
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
197,856
231,604
Under/(over) provided in prior years
(7,942)
Capital allowances in excess of depreciation
(93,747)
(20,039)
Movement in deferred tax
89,562
17,510
Taxation charge for the year
193,671
221,133
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
10
Dividends
2024
2023
£
£
Final paid
100,000
100,000
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 November 2023
2,599,080
252,989
232,179
134,142
3,218,390
Additions
138,475
501,020
94,475
73,835
23,543
831,348
Disposals
(1,620)
(1,620)
At 31 October 2024
138,475
3,098,480
347,464
306,014
157,685
4,048,118
Depreciation and impairment
At 1 November 2023
1,117,751
141,216
156,049
53,030
1,468,046
Depreciation charged in the year
173,758
49,630
54,843
23,749
301,980
Eliminated in respect of disposals
(1,337)
(1,337)
At 31 October 2024
1,290,172
190,846
210,892
76,779
1,768,689
Carrying amount
At 31 October 2024
138,475
1,808,308
156,618
95,122
80,906
2,279,429
At 31 October 2023
1,481,329
111,773
76,130
81,112
1,750,344
Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:
2024
2023
£
£
Plant and equipment
451,777
509,530
Motor vehicles
29,935
13,890
481,712
523,420
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,196,885
2,935,703
Amounts owed by group undertakings
881,184
992,426
Other debtors
931,636
903,291
Prepayments and accrued income
165,841
129,681
5,175,546
4,961,101
Included within other debtors is an unsecured interest free loan in the sum of £150,000 to the director P Hopkins.
Included within other debtors are amounts owed by an invoice factoring arrangement of £589,819 (2023 : £711,470)
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
117,624
114,853
Trade creditors
2,170,509
1,873,031
Corporation tax
180,619
211,565
Other taxation and social security
119,665
150,130
Government grants
17
1,450
1,579
Other creditors
8,422
7,127
Accruals and deferred income
744,808
742,438
3,343,097
3,100,723
Obligations under hire purchase contracts are secured on the assets to which they relate.
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
225,106
336,905
Government grants
17
9,410
10,860
234,516
347,765
The bank indebtedness across the group is secured by a debenture in favour of Barclays Bank plc dated 11 October 1991, a charge on the freehold property at Bullock Street dated 11 October 1991, a cross guarantee and debenture with Robert Hopkins Environmental Services Limited dated 15 February 1996 and a fixed and floating charge on the property dated 20 September 2013.
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
117,624
114,853
In two to five years
225,106
336,905
342,730
451,758
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2.5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
531,333
441,771
2024
Movements in the year:
£
Liability at 1 November 2023
441,771
Charge to profit or loss
89,562
Liability at 31 October 2024
531,333
17
Government grants
2024
2023
£
£
Arising from government grants
10,860
12,439
Included in the financial statements as follows:
Current liabilities
1,450
1,579
Non-current liabilities
9,410
10,860
10,860
12,439
ROBERT HOPKINS ENVIRONMENTAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
104
104
104
104
Ordinary B shares of £1 each
10
10
10
10
114
114
114
114
19
Ultimate controlling party
The immediate parent undertaking is Robert Hopkins & Son Limited, a company whose registered office is Bullock Street, West Bromwich, West Midlands, B70 7HE.
The largest group to consolidate these financial statements is Robert Hopkins & Son Limited.
The financial statements of the group are available upon request from the Registrar of Companies.
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