REGISTERED NUMBER: 02568736 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

FOR

PAKAWASTE ENGINEERING SERVICES LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

D Hamer

REGISTERED OFFICE:

Rough Hey Road

Grimsargh

Preston

Lancashire

PR2 5AR

REGISTERED NUMBER:

02568736 (England and Wales)

AUDITORS:

Streets Audit LLP

Halifax House

30 George Street

Hull

HU1 3AJ

FIXED ASSETS

Tangible assets

4

159,134

180,015

CURRENT ASSETS

Stocks

75,266

90,407

Debtors

5

313,429

440,936

Cash at bank

6

419,642

239,687

808,337

771,030

CREDITORS

Amounts falling due within one year

7

238,733

209,116

NET CURRENT ASSETS

569,604

561,914

TOTAL ASSETS LESS CURRENT LIABILITIES

728,738

741,929

CREDITORS

Amounts falling due after more than one year

8

-

(28,785

)

PROVISIONS FOR LIABILITIES

(14,550

)

(25,539

)

NET ASSETS

714,188

687,605

CAPITAL AND RESERVES

Called up share capital

400

400

Retained earnings

713,788

687,205

714,188

687,605

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the director and authorised for issue on 2 September 2025 and were signed by:

D Hamer - Director

1.	STATUTORY INFORMATION

Pakawaste Engineering Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. All amounts are rounded to the nearest Pound (£).

The functional and presentational currency is the Pound Sterling.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Going concern

At the time of signing these financial statements the director is continuing to respond to the business challenges currently being faced because of the current economic climate. The management team are reviewing operational, HR and financial impacts on a regular basis and are taking appropriate corrective action if necessary to protect the business, whilst the finance team continues to monitor cash flow closely.

Lack of labour and supply chain will continue to throw up extra challenges. However, with our new rigorous in-house training this will be significantly reduced. If the current trading environment remains challenging, it is anticipated this will be beneficial to the service division as some clients look to maintain their existing products rather than replace, which will result in more service and repair work.

Considering the measures implemented and following a review of the company's financial position, the director is satisfied that the company will have adequate resources to continue to operate for the foreseeable future. As such the director has concluded that it remains appropriate to prepare these financial statements on the going concern basis.

Turnover

Turnover is recognised at the fair value of consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Rental income is recognised on a straight line basis over the rental period. Turnover also includes the sale of ex-rental stock and rechargeable maintenance.

Revenue form the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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 in respect of the transaction can be measured reliably.

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 basis:

Plant and machinery 20% 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 credited or charged to profit or loss.

Impairment of fixed assets

At each reporting 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).

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 is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit and loss account.

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 the profit and loss account.

Financial instruments

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

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

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

Basic financial assets

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

Impairment of financial assets

Financial assets 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.

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 trade creditors and loans from fellow group companies 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.

Equity instruments

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 (2024 - 17 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 February 2024

413,970

Additions

69,277

Disposals

(92,161

)

At 31 January 2025

391,086

DEPRECIATION

At 1 February 2024

233,955

Charge for year

79,316

Eliminated on disposal

(81,319

)

At 31 January 2025

231,952

NET BOOK VALUE

At 31 January 2025

159,134

At 31 January 2024

180,015

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

256,526

256,223

Amounts owed by group undertakings

16,275

146,343

Other debtors

40,628

38,370

313,429

440,936

6.	CASH AT BANK

Cash at bank and in hand are basic financial assets and include deposits held at call with banks.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Other loans

28,785

62,859

Hire purchase contracts

-

2,762

Trade creditors

31,197

45,101

Amounts owed to group undertakings

97,008

-

Tax

-

11,008

Social security and other taxes

21,465

17,260

VAT

42,110

47,108

Accrued expenses

18,168

23,018

238,733

209,116

Included in creditors due in less than one year are hire purchases liabilities of £Nil (2024: £2,762)

which are secured on the assets to which they relate.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Other loans - 1-2 years

-

28,785

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Robert Anderson BSc FCA (Senior Statutory Auditor)

for and on behalf of Streets Audit LLP

10.	FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES

The company has entered into an unlimited Inter-Company Guarantee dated 18 June 2021 (the

"Agreement"), which is held as security for the Group bank facilities. Each participating related company (Pakawaste Limited, Pakawaste Engineering Services Limited, System Rental UK Limited and Kelpack Hire Limited) has provided a guarantee to Clydesdale Bank Plc. Under the terms of the Agreement, Clydesdale Bank Plc is authorised to allow set-off for interest purposes and in certain circumstances to seize credit balances and apply them in reduction of liabilities including debit balances within the Composite Accounting System.

The Group bank facilities are also secured by debentures in all of the above participating companies.

11.	PARENT COMPANY