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Registered number: 08248568














EAST KENT RECYCLING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

 
EAST KENT RECYCLING LIMITED
 

COMPANY INFORMATION


Directors
K J Campion 
J K Campion (resigned 25 February 2025)




Registered number
08248568



Registered office
The Old Brickworks Pike Road
Tilmanstone

Dover

Kent

CT15 4ND




Independent auditors
Magee Gammon Corporate Limited
Chartered Accountants & Statutory Auditors

Henwood House

Henwood

Ashford

Kent

TN24 8DH





 
EAST KENT RECYCLING LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Director's report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of income and retained earnings
 
9
Balance sheet
 
10
Statement of cash flows
 
11 - 12
Analysis of net debt
 
13
Notes to the financial statements
 
14 - 30


 
EAST KENT RECYCLING LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
East Kent Recycling offer advanced Waste Management Solutions and Skip Hire accross Kent.
The directors present their strategic report for the company for the year ended 31 December 2024.

Business review
 
The results for the company show a pre–tax profit of £340,230 (2023: £521,799) and sales of £11,024,329  (2023: sales of £11,543,621).  The directors consider that the company is well positioned for the upcoming year and further ahead.

Principal risks and uncertainties
 
The management team of the company are responsible for the consideration and addressing the principal risks and uncertainties that the company faces or has faced.  Ultimately the company’s directors review and manages the risks.  Key risks are identified below.
Employee retention
The company’s results rely to a large extent on their staff and the ability to provide the services on a timely and effective basis.  To that end, the management of the company continues to review programmes and methods to retain staff as best as possible and ensuring that remuneration packages are representative of the market.
General market conditions
The company is aware that it operates in a very competitive market and continues to regularly review its procedures and systems to ensure that it is able to respond to any pressures on margins and attracting new work.
Financial risk management
The company’s funding, liquidity and exposure to interest rate risks are managed by the company’s directors and management team via a framework of policies and guidelines laid down by the directors.
The company’s financial instruments comprise of borrowings, cash and liquid resources and various items such as trade debtors and creditors that arise directly from its operations.  The company publishes its financial statements in pounds sterling.

Financial key performance indicators
 
Given the nature of the business, the company’s directors are of the opinion that the primary Key Performance Indicator (KPI) to understand the position of the business particular in relation to its competition, objectives and cash flow position is its Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA).
EBITDA
The company’s EBITDA was £1,420,637 for the year (2023: £1,635,077)

Other key performance indicators
 
Other than indicators highlighted above, the directors do not feel that there are any further key performance indicators.

Page 1

 
EAST KENT RECYCLING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


This report was approved by the board on 25 September 2025 and signed on its behalf.



___________________________
K J Campion
Director

Page 2

 
EAST KENT RECYCLING LIMITED
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The director presents his report and the financial statements for the year ended 31 December 2024.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £190,004 (2023 - £354,635).

Ordinary dividends were paid amounting to £104,000. The directors do not recommend payment of a further dividend.

Directors

The directors who served during the year were:

K J Campion 
J K Campion (resigned 25 February 2025)

Future developments

The directors will continue to explore new opportunities for the Company to continue to grow and prosper for the foreseeable future.

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company's auditors are unaware, and

 has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3

 
EAST KENT RECYCLING LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsMagee Gammon Corporate Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 25 September 2025 and signed on its behalf.
 





___________________________
K J Campion
Director

Page 4

 
EAST KENT RECYCLING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EAST KENT RECYCLING LIMITED
 

Opinion


We have audited the financial statements of East Kent Recycling Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of income and retained earnings, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policiesThe 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 December 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.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 director's 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 director 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 Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
EAST KENT RECYCLING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EAST KENT RECYCLING LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


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 Director's 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 director's 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 Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
EAST KENT RECYCLING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EAST KENT RECYCLING LIMITED (CONTINUED)


Auditors' 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 Auditors' 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.


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:

Capability of the audit in detecting irregularities including fraud
Based on our understanding of the company, we have considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.  We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override, and considered that the principal risk was related to the posting of inappropriate journal entries to improve the result before tax for the year.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
Procedures performed by the audit team included:
• Discussions with management regarding known or suspected instances of non-compliance with laws and  regulations;
• Evaluation of controls designed to prevent and detect irregularities; and
• Assessing journal entries as part of our planned audit approach.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.  As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 7

 
EAST KENT RECYCLING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EAST KENT RECYCLING LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Andrew John Childs FCA (Senior statutory auditor)
  
for and on behalf of
Magee Gammon Corporate Limited
 
Chartered Accountants
Statutory Auditors
  
Henwood House
Henwood
Ashford
Kent
TN24 8DH

25 September 2025
Page 8

 
EAST KENT RECYCLING LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note

  

Turnover
 4 
11,024,329
11,543,621

Cost of sales
  
(7,776,256)
(7,991,078)

Gross profit
  
3,248,073
3,552,543

Administrative expenses
  
(2,661,410)
(2,752,740)

Other operating income
 5 
7,442
13,909

Operating profit
 6 
594,105
813,712

Interest receivable and similar income
 10 
-
671

Interest payable and similar expenses
 11 
(253,875)
(292,584)

Profit before tax
  
340,230
521,799

Tax on profit
 12 
(150,226)
(167,164)

Profit after tax
  
£190,004
£354,635

  

  

Retained earnings at the beginning of the year
  
1,613,374
1,346,739

Profit for the year
  
190,004
354,635

Dividends declared and paid
  
(104,000)
(88,000)

Retained earnings at the end of the year
  
£1,699,378
£1,613,374
The notes on pages 14 to 30 form part of these financial statements.

Page 9

 
EAST KENT RECYCLING LIMITED
REGISTERED NUMBER: 08248568

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note

Fixed assets
  

Intangible assets
 14 
21,351
40,823

Tangible assets
 15 
3,279,957
3,980,149

Investments
 16 
10
10

  
3,301,318
4,020,982

Current assets
  

Stocks
 17 
26,331
21,301

Debtors: amounts falling due within one year
 18 
2,421,936
2,352,014

Cash at bank and in hand
 19 
14
14

  
2,448,281
2,373,329

Creditors: amounts falling due within one year
 20 
(3,421,527)
(3,690,297)

Net current liabilities
  
 
 
(973,246)
 
 
(1,316,968)

Total assets less current liabilities
  
2,328,072
2,704,014

Creditors: amounts falling due after more than one year
 21 
(289,603)
(697,917)

Provisions for liabilities
  

Deferred tax
 25 
(339,081)
(392,713)

  
 
 
(339,081)
 
 
(392,713)

Net assets
  
£1,699,388
£1,613,384


Capital and reserves
  

Called up share capital 
 26 
10
10

Profit and loss account
 27 
1,699,378
1,613,374

  
£1,699,388
£1,613,384


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2025.




___________________________
K J Campion
Director

The notes on pages 14 to 30 form part of these financial statements.

Page 10

 
EAST KENT RECYCLING LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023

Cash flows from operating activities

Profit for the financial year
190,004
354,635

Adjustments for:

Amortisation of intangible assets
19,472
25,305

Depreciation of tangible assets
808,810
806,015

Loss on disposal of tangible assets
(1,750)
(9,955)

Interest paid
253,875
292,584

Interest received
-
(671)

Taxation charge
150,226
167,164

(Increase) in stocks
(5,030)
(10,993)

(Increase) in debtors
(146,346)
(70,124)

Decrease in amounts owed by groups
76,424
30,444

Increase/(decrease) in creditors
37,098
(584,255)

Corporation tax received
-
123,351

Net cash generated from operating activities

1,382,783
1,123,500


Cash flows from investing activities

Purchase of tangible fixed assets
(110,868)
(399,400)

Sale of tangible fixed assets
4,000
25,100

Interest received
-
671

HP interest paid
(72,491)
(118,767)

Net cash from investing activities

(179,359)
(492,396)

Cash flows from financing activities

New secured loans
-
360,500

Repayment of loans
(253,947)
(184,109)

Repayment of/new finance leases
(699,411)
(606,277)

Movements on invoice discounting
18,509
8,751

Dividends paid
(104,000)
(88,000)

Interest paid
(167,516)
(173,817)

Net cash used in financing activities
(1,206,365)
(682,952)

Net (decrease) in cash and cash equivalents
(2,941)
(51,848)

Cash and cash equivalents at beginning of year
(7,282)
44,566

Cash and cash equivalents at the end of year
£(10,223)
£(7,282)


Cash and cash equivalents at the end of year comprise:
Page 11

 
EAST KENT RECYCLING LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


2024
2023




Cash at bank and in hand
14
14

Bank overdrafts
(10,237)
(7,296)

£(10,223)
£(7,282)


The notes on pages 14 to 30 form part of these financial statements.

Page 12

 
EAST KENT RECYCLING LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024




At 1 January 2024
Cash flows
At 31 December 2024



Cash at bank and in hand

14

-

14

Bank overdrafts

(7,296)

(2,941)

(10,237)

Debt due after 1 year

(209,842)

155,842

(54,000)

Debt due within 1 year

(267,867)

99,701

(168,166)

Finance leases

(1,195,746)

699,411

(496,335)


£(1,680,737)
£952,013
£(728,724)

The notes on pages 14 to 30 form part of these financial statements.

Page 13

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

East Kent Recycling Limited is a private company, limited by shares, incorporated in England and Wales under 08248568. The registered office of the Company is The Old Brickworks Pike Road, Tilmanstone, Dover, Kent, CT15 4ND. The principal activity of the Company is that of waste management solutions and skip hire.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The Company's functional and presentational currency is GBP (£) and is rounded to the nearest whole pound.

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 14

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of income and retained earnings over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Amortisation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Amortisation is provided on the following basis:
  Computer software  - 20% on cost
  Goodwill   - 20% on cost

Page 16

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.11

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the method below.

Depreciation is provided on the following basis:

Land and buildings
-
Land is not depreciated. Buildings are depreciated at 2% on cost
Plant and machinery
-
25% on cost
Motor vehicles
-
25% reducing balance or over term of the lease
Office equipment
-
25% on cost

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.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 17

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 
Page 18

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)


Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 19

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 the accounting estimates are recognised in the period in which the estimate is revised if the revisions affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
The critical judgements made by management and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Valuation of tangible and intangible fixed assets
Tangible and intangible fixed assets are stated at historical cost less accumulated depreciation or amortisation and any accumulated impairment losses. In determining the useful economic life, residual value and depreciation or amortisation method, management use their historical knowledge of such assets and the maket within which the Group operates.
Valuation of deferred taxation
The provision for deferred taxation represents the timing differences that have originated but not reversed by the balance sheet date. In determining the provision, management's best estimates of the timing of the differences being reversed at the substantially enacted tax rate at the balance sheet date.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023

Hire of skips and collection of refuse
£11,024,329
£11,543,621


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023

Other operating income
£7,442
£13,909



6.


Operating profit

The operating profit is stated after charging:

2024
2023

Other operating lease rentals
£572,932
£503,249

Page 20

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023

Fees payable to the Company's auditors for the audit of the Company's financial statements
11,000
12,000


8.


Employees

Staff costs, including director's remuneration, were as follows:


2024
2023

Wages and salaries
2,709,695
2,699,560

Social security costs
258,329
252,510

Cost of defined contribution scheme
39,411
39,360

£3,007,435
£2,991,430


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
2
2



Employees
86
89

88
91


9.


Director's remuneration

2024
2023

Director's emoluments
22,000
22,000

Company contributions to defined contribution pension schemes
143
143

£22,143
£22,143


During the year retirement benefits were accruing to no directors (2023 - NIL) in respect of defined contribution pension schemes.


10.


Interest receivable

2024
2023


Other interest receivable
£-
£671

Page 21

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Interest payable and similar expenses

2024
2023


Bank interest payable
41,708
57,985

Finance leases and hire purchase contracts
72,491
118,767

Other interest payable
139,676
115,832

£253,875
£292,584


12.


Taxation


2024
2023

Corporation tax


Current tax on profits for the year
90,756
-

Adjustments in respect of previous periods
113,102
-


203,858
-


Total current tax
£203,858
£-

Deferred tax


Origination and reversal of timing differences
(120,765)
42,119

Unrelieved tax losses carried forward
67,133
125,045

Total deferred tax
£(53,632)
£167,164


Tax on profit
£150,226
£167,164
Page 22

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023


Profit on ordinary activities before tax
£354,098
£521,800


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
85,058
130,450

Effects of:


Non-tax deductible amortisation of goodwill and impairment
1,342
2,800

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
33
348

Capital allowances for year in excess of depreciation
19,036
21,626

Adjustments to tax charge in respect of prior periods
71,846
-

Other differences leading to an increase (decrease) in the tax charge
(19,037)
(19,917)

Group relief
(8,052)
31,857

Total tax charge for the year
£150,226
£167,164


Factors that may affect future tax charges

There are no factors that may affect future tax charges.


13.


Dividends

2024
2023


Dividends paid
£104,000
£88,000

Page 23

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Intangible assets




Computer software
Goodwill
Total



Cost


At 1 January 2024
70,521
196,821
267,342



At 31 December 2024

70,521
196,821
267,342



Amortisation


At 1 January 2024
37,465
189,054
226,519


Charge for the year on owned assets
14,105
5,367
19,472



At 31 December 2024

51,570
194,421
245,991



Net book value



At 31 December 2024
£18,951
£2,400
£21,351



At 31 December 2023
£33,056
£7,767
£40,823



Page 24

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Tangible fixed assets





Land and buildings
Plant and machinery
Motor vehicles
Office equipment
Total



Cost or valuation


At 1 January 2024
1,844,733
3,747,902
2,748,506
45,333
8,386,474


Additions
82,615
22,003
6,250
-
110,868


Disposals
-
-
(4,000)
-
(4,000)



At 31 December 2024

1,927,348
3,769,905
2,750,756
45,333
8,493,342



Depreciation


At 1 January 2024
6,835
2,476,264
1,881,768
41,458
4,406,325


Charge for the year on owned assets
11,191
346,226
145,408
1,855
504,680


Charge for the year on financed assets
-
194,217
109,913
-
304,130


Disposals
-
-
(1,750)
-
(1,750)



At 31 December 2024

18,026
3,016,707
2,135,339
43,313
5,213,385



Net book value



At 31 December 2024
£1,909,322
£753,198
£615,417
£2,020
£3,279,957



At 31 December 2023
£1,837,898
£1,271,638
£866,738
£3,875
£3,980,149

The net book value of land and buildings consists of freehold property of £1,285,183 and leasehold property improvements of £624,139.

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023



Plant and machinery
462,119
656,336

Motor vehicles
171,405
461,017

£633,524
£1,117,353

Page 25

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Fixed asset investments





Unlisted investments



Cost or valuation


At 1 January 2024
10



At 31 December 2024
£10





17.


Stocks

2024
2023

Raw materials and consumables
4,800
11,000

Work in progress
21,531
10,301

£26,331
£21,301



18.


Debtors

2024
2023


Trade debtors
1,726,920
1,546,227

Amounts owed by group undertakings
611,213
687,637

Other debtors
-
800

Prepayments and accrued income
83,803
117,350

£2,421,936
£2,352,014



19.


Cash and cash equivalents

2024
2023

Cash at bank and in hand
14
14

Less: bank overdrafts
(10,237)
(7,296)

£(10,223)
£(7,282)


Page 26

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Creditors: Amounts falling due within one year

2024
2023

Bank overdrafts
10,237
7,296

Bank loans
155,842
253,947

Trade creditors
1,101,922
1,153,793

Corporation tax
217,727
-

Other taxation and social security
164,936
85,061

Obligations under finance lease and hire purchase contracts
260,732
707,671

Proceeds of factored debts
1,147,184
1,128,675

Other creditors
254,083
257,519

Accruals and deferred income
108,864
96,335

£3,421,527
£3,690,297


The Company has an outstanding charge to Bibby Financial Services Limited in respect of an invoice discounting agreement. This has a fixed and floating charge over all the property of the company. K Campion and J Campion have also given a personal guarantee limited to £200,000.
Obligations under finance lease and hire purchase contracts are secured over their respective assets.


21.


Creditors: Amounts falling due after more than one year

2024
2023

Bank loans
54,000
209,842

Net obligations under finance leases and hire purchase contracts
235,603
488,075

£289,603
£697,917


Obligations under finance lease and hire purchase contracts are secured over their respective assets.


22.


Loans


Analysis of the maturity of loans is given below:


2024
2023

Amounts falling due within one year

Bank loans
155,842
253,947

Amounts falling due 1-2 years

Bank loans
54,000
155,842

Amounts falling due 2-5 years

Bank loans
-
54,000


£209,842
£463,789


Page 27

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023


Within one year
260,732
707,671

Between 1-5 years
235,603
488,075

£496,335
£1,195,746


24.


Financial instruments

2024
2023

Financial assets


Financial assets measured at fair value through profit or loss
14
14

Financial assets measured at amortised cost through profit or loss
2,338,133
2,233,864

£2,338,147
£2,233,878


Financial liabilities


Financial liabilities measured at fair value through profit or loss
1,863,598
2,795,506

Financial liabilities measured at amortised cost through profit or loss
1,101,922
1,153,793

£2,965,520
£3,949,299


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
Financial assets measured at amortised cost through profit or loss comprise of trade debtors and amounts due from parent undertaking.
Financial liabilities measured at fair value through profit or loss comprise of bank loans, obligations under finance lease and hire purchase contracts and proceeds of factored debts.
Financial assets measured at amortised cost through profit or loss comprise of trade creditors.

Page 28

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

25.


Deferred taxation




2024





At beginning of year
392,713


Charged to profit or loss
(53,632)



At end of year
£339,081

The provision for deferred taxation is made up as follows:

2024
2023


Accelerated capital allowances
339,081
459,846

Tax losses carried forward
-
(67,133)

£339,081
£392,713


26.


Share capital

2024
2023
Allotted, called up and fully paid



10 (2023 - 10) Ordinary shares of £1.00 each
£10
£10



27.


Reserves

Profit and loss account

The profit and loss account reserve represents the accumulated amounts passing through the statement of comprehensive income. This reserve represents distributable profit.


28.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £39,951 (2023 - £39,361). Contributions totalling £12,324 (2023 - £13,921) were payable to the fund at the balance sheet date and are included in creditors.

Page 29

 
EAST KENT RECYCLING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

29.

Ultimate parent undertaking and controlling party

At the balance sheet date, the immediate parent undertaking is Campion Environment Group Limited, a company incorporated in England and Wales. 
Campion Environmental Group Limited is the controlling party of the company.
The parent undertaking of the largest group to consolidate these financial statements is Campion Environmental Group Limited, a company incorporated in England and Wales. The registered address of the company is The Old Brickworks, Pike Road, Tilmanstone, Dover, Kent, CT15 4ND.
The ultimate parent undertaking is Campion Environmental Group Limited, a company incorporated in England and Wales.
Campion Environmental Group Limited is also the most senior parent entity producing publicly available financial statements.
Campion Environmental Group Limited is the ultimate controlling party of the company. The controlling party of the parent undertaking was the directors of that company.
The company is exempt from the requirement of preparing consolidated financial statements as it is a subsidiary undertaking included in consolidated financial statements for a larger group, by a parent undertaking established under the law of any part of the United Kingdom.
Campion Environmental Group Limited has prepared consolidated financial statements which include this company and are publicly available.



30.


Post balance sheet events

On 28 February 2025, J Campion resigned as a director of East Kent Recycling Limited and of Campion Environmental Group Limited, and also disposed of his shareholding in Campion Environmental Group Limited. From that date, K Campion became the ultimate controlling party of the group.


Page 30