Lorax Compliance (Holdings) Limited

	Page
Balance Sheet	1
Notes to the Financial Statements	2—4

1. General Information

Lorax Compliance (Holdings) Limited is a private company, limited by shares, incorporated in England & Wales, registered number 09255335 . The registered office is Suite 6 Eleven Arches House, Yates Avenue, Rugby, CV21 1FD.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

2.2.1 Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

2.2.2 Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.3. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.4. Foreign Currencies

Monetary 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 ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.5. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

2.5.1 Provisions

Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

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Lorax Compliance (Holdings) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.6. Pensions

Contributions to defined contribution plans are expensed in the period to which they relate.

2.7. Investments

Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses.

2.8. Debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

2.9. Creditors

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 3 (2023: 3)

4. Investments

	Other
	£
Cost
As at 1 January 2024	351,067

As at 31 December 2024	351,067

Provision
As at 1 January 2024	-

As at 31 December 2024	-

Net Book Value
As at 31 December 2024	351,067

As at 1 January 2024	351,067

The company holds investments in the following subsidiaries:

Lorax Compliance Limited, incorporated in England and Wales

Environmental Packaging International Holdings, incorporated in RI, USA

Investments in subsidiary undertakings are measured at cost less any accumulated impairment losses. An impairment review was performed at the balance sheet date and no impairment was identified.

5. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	42,020	-
Prepayments and accrued income	102,711	56,341
Amounts owed by group undertakings	597,197	587,116

	741,928	643,457

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Lorax Compliance (Holdings) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

6. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Corporation tax	3,164	(14 )
VAT	13,442	10,228
Directors' loan accounts	73,470	113,500
Amounts owed to group undertakings	16,337	16,337

	106,413	140,051

7. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	30	30

8. Related Party Transactions

The company received software licence fees of £302,743 (2023: £260,504) during the year from its subsidiary company Lorax Compliance Limited on an arm’s length basis on normal commercial terms.

Amounts due from Lorax Compliance Limited totalled £318,446 (2023: £308,365) at the balance sheet date. The balance is unsecured, interest-free, and repayable on demand.

Amounts due from Environmental Packaging International Holdings, a group company incorporated in RI, USA, totalled £278,751 (2023: £278,751). The balance is unsecured, interest-free, and repayable on demand.

Amounts due to Environmental Packaging International, a group company incorporated in RI, USA, totalled £16,337 (2023: £16,337). The balance is unsecured, interest-free, and repayable on demand.

Amounts due to Directors David Markham totalled £44,235 (2023: £113,500) and Michelle Carvell £29,235 (2023: Nil) at the balance sheet date. These balance are unsecured, interest-free, and repayable on demand.

9. Ultimate Controlling Party

There was no ultimate controlling party at the balance sheet date, as no individual held a majority of the issued share capital of the company.

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Investments	4		351,067		351,067

			351,067		351,067
CURRENT ASSETS
Debtors	5	741,928		643,457
Cash at bank and in hand		1,168		1,558

		743,096		645,015
Creditors: Amounts Falling Due Within One Year	6	(106,413 )		(140,051 )

NET CURRENT ASSETS (LIABILITIES)			636,683		504,964

TOTAL ASSETS LESS CURRENT LIABILITIES			987,750		856,031

NET ASSETS			987,750		856,031

CAPITAL AND RESERVES
Called up share capital	7		30		30
Profit and Loss Account			987,720		856,001

SHAREHOLDERS' FUNDS			987,750		856,031