REGISTERED NUMBER: 02719545 (England and Wales)

Financial Statements for the Year Ended 31 March 2025

for

Mersey Waste Holdings Limited

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

L C Worswick

P A Norris

H L Bell

C J Kelsall

D Mcnabb

REGISTERED OFFICE:

7th Floor No. 1

Mann Island

Liverpool

L3 1BP

REGISTERED NUMBER:

02719545 (England and Wales)

AUDITORS:

DJH Audit Limited

Statutory Auditor

3rd Floor Pacific Chambers

11-13 Victoria Street

Liverpool

Merseyside

L2 5QQ

TAX ADVISER:

DJH Liverpool Limited

3rd Floor Pacific Chambers

11-13 Victoria Street

Liverpool

Merseyside

L2 5QQ

FIXED ASSETS

Investments

4

1,100

1,100

CURRENT ASSETS

Debtors

5

42,570

11,921

Cash and cash equivalents

1,466,820

6,538,326

1,509,390

6,550,247

CREDITORS

Amounts falling due within one year

6

22,193

65,258

NET CURRENT ASSETS

1,487,197

6,484,989

TOTAL ASSETS LESS CURRENT LIABILITIES

1,488,297

6,486,089

PENSION LIABILITY

(167,330

)

(7,000

)

NET ASSETS

1,655,627

6,493,089

CAPITAL AND RESERVES

Called up share capital

1

1

Other reserves

167,000

3,082,784

Retained earnings

1,488,626

3,410,304

SHAREHOLDERS' FUNDS

1,655,627

6,493,089

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 Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 16 October 2025 and were signed on its behalf by:

C J Kelsall - Director

1.	STATUTORY INFORMATION

Mersey Waste Holdings 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

The financial statements have been prepared in accordance with the requirements of International Accounting Standards (IAS) in conformity with the requirements of the Companies Act 2006. Practice is continuing to evolve on the application and interpretation of IFRS. Further standards may be issues by the International Accounting Standards Board (IASB), and standards currently in issue and endorsed may be subject to interpretations issued by IFRIC.

The preparation of financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgements in applying the Company's accounting policies.The areas where significant judgements and estimates have been made in preparing the financial statements and their effect on the statement of financial position, statement of comprehensive income and statement of cash flows are disclosed in note 4.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Taxation

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

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 statement of financial position date.

Pensions

Defined benefit scheme surpluses and deficits are measured at:

- the fair value of plan assets at the reporting date; less

- plan liabilities calculated using the projected unit credit method discounted to its present value; plus

- unrecognised past service costs; less

- the effect of minimum funding requirements agreed with scheme trustees.

Any difference, between the expected return on assets and that actually achieved, and any changes in the liabilities over the year due to changes in assumptions or experiene within the scheme, are recognised in other comprehensive income in the period in which they arise.

Past service costs are recognised directlly in income, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time. In this case, the past service costs are amortised on a straight-line basis over the visiting period.

Going concern

After reviewing the company's expected future transactions, considering the back-to-back funding agreement in place with the parent company, and notwithstanding the loss for the year, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Basis of consolidation

A subsidiary is an entity over which the group has the power to govern the financial operating policies to obtain economic benefit from their activities. Mersey Waste Holdings Limited owns 100% of the ordinary share capital of Mersey Waste Limited and MWH Associates Limited.

Mersey Waste Holdings Limited has not prepared consolidated financial statements that includes the subsidiary undertakings on the grounds of materiality as both subsidiary companies are dormant and their results are consolidated within the financial statements of Mersey Recycling & Waste Authority.

Capital contribution

Where the company receives contributions from its ultimate parent undertaking which it is not required to repay, nor bear any servicing costs, these are treated as capital contributions and recognised directly within shareholders' equity.

The following describes the nature and purpose of each reserve within equity:

Retained earnings - Cumulative net gains and losses recognised in the company's statement of comprehensive income

Other reserve - Capital contribution reserve

Cash and cash equivalents

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

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 Statement of Financial Position when the company becomes party to the contractual provision 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 receivables and cash and cash equivalents, are initially measured at transaction price, including transaction costs, and are then subsequently carried at amortised cost using the effective interest method, less provision for impairment, unless arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future lease 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 other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date.

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 value 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 its liabilities.

Basic financial instruments, which include trade and other payables are initially measured at their transaction price after transaction costs. When this constitute a financing transaction, whereby the debt instrument 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.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables 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 instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flows expire, or are settled, or when the company transfers the asset and substantially all of 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, are discharged or cancelled.

3.	EMPLOYEES AND DIRECTORS

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

4.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2024

and 31 March 2025

1,100

NET BOOK VALUE

At 31 March 2025

1,100

At 31 March 2024

1,100

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Mersey Waste Limited

Registered office: 7th Floor No.1, Mann Island, Liverpool, L3 1BP

Nature of business: Dormant

%

Class of shares:

holding

Ordinary

100.00

31.3.25

31.3.24

£

£

Aggregate capital and reserves

100

100

MWH Associates Limited

Registered office: 7th Floor No.1, Mann Island, Liverpool, L3 1BP

Nature of business: Dormant

%

Class of shares:

holding

Ordinary

100.00

31.3.25

31.3.24

£

£

Aggregate capital and reserves

1,000

1,000

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.25

31.3.24

£

£

Amounts owed by controlling interests

34,926

-

Other debtors

7,644

11,921

42,570

11,921

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.25

31.3.24

£

£

Trade creditors

5,029

9,502

Amounts owed to group undertakings

1,100

1,100

Amounts owed to participating interests

-

33,295

Other creditors

16,064

21,361

22,193

65,258

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

The Report of the Auditors was unqualified.

Michael Forshaw BA FCA (Senior Statutory Auditor)

for and on behalf of DJH Audit Limited

8.	EMPLOYEE BENEFIT OBLIGATIONS

The company participates in 2 defined benefit pension schemes, the Local Government Pension Scheme ('Merseyside Pension Fund') and the LAWDC's Pension Fund Scheme.

The pension cost relating to the schemes is assessed every three years in accordance with the advice of a qualified actuary using the projected unit method. The most recent formal valuations were as follows:

The Local Government Pension Scheme ('Merseyside Pension Fund')

Nature of Scheme: Defined Benefit

Date of last full Actuarial Valuation: 31 March 2025

The LAWDC Pension Scheme

Nature of scheme: Defined Benefit

Date of last full Actuarial Valuation: 31 March 2025

The movement in both Schemes is split between operating charges and finance items, which are charged to the statement of income, and actuarial gains and losses, which are charged to the statement of comprehensive income.

The numbers shown in this disclosure have been based on calculations carried out by a qualified independent actuary to take account of the requirements of IAS 19(R) in order to assess the liabilities of the Scheme at 31 March 2025. The Schemes' assets are stated at their market values at 31 March 2025.

The valuation used for IAS 19(R) disclosures has been based on a full assessment of the liabilities of the Schemes as at 31 March 2025. The present values of the defined benefit obligation, the related current service cost and any past service costs were measured using the projected unit credit method. The defined benefit sections of both Schemes are closed to new entrants.

The amounts recognised in the balance sheet are as follows:

Defined benefit

pension schemes

31.3.25

31.3.24

£

£

Present value of funded obligations

(6,464,000)

(7,427,640)

Fair value of plan assets

8,397,000

8,716,000

1,933,000

1,288,360

Present value of unfunded obligations

(85,000)

(93,000)

Surplus/(Deficit)

1,848,000

1,195,360

Impact of asset ceiling

(1,681,000)

(1,187,000)

Net Asset/(Liability)

167,000

8,360

The amounts recognised in profit or loss are as follows:

Defined benefit

pension schemes

31.3.25

31.3.24

.

£

£

Net interest from net defined benefit asset/liability

(61,000

)

(58,000

)

Administration costs

26,000

24,000

35,000

34,000

Actual return on plan assets

169,000

243,000

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit

pension schemes

31.3.25

31.3.24

.

£

£

Opening defined benefit obligation

7,520,640

7,812,773

Interest cost

354,000

365,000

Administrative expenses

26,000

24,000

Benefits paid

(592,000

)

(631,000

)

Remeasurements:

Actuarial (gains)/losses from changes in demographic assumptions

(20,000

)

(89,000

)

Actuarial (gains)/losses from changes in financial assumptions

(689,000

)

(34,000

)

Experience (gains)/losses

(26,000

)

72,867

6,573,640

7,520,640

Changes in the fair value of scheme assets are as follows:

Defined benefit

pension schemes

31.3.25

31.3.24

.

£

£

Opening fair value of scheme assets

8,716,000

8,890,000

Contributions by employer

130,000

131,000

Interest on plan assets

415,000

423,000

Benefits paid

(592,000

)

(631,000

)

Remeasurements:

Return on plan assets (excluding interest income)

(166,000

)

243,000

Other remeasurement

(106,000

)

(340,000

)

8,397,000

8,716,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit

pension schemes

31.3.25

31.3.24

£

£

Actuarial (gains)/losses from changes in demographic assumptions

20,000

89,000

Actuarial (gains)/losses from changes in financial assumptions

689,000

34,000

Experience (gains)/losses

26,000

(72,867

)

Return on plan assets (excluding interest income)

(166,000

)

243,000

Impact of asset ceiling

(494,000

)

(1,187,000

)

Other remeasurement

(80,000

)

(340,000

)

(5,000

)

(1,233,867

)

The major categories of scheme assets as amounts of total scheme assets are as follows:

Defined benefit

pension schemes

31.3.25

31.3.24

.

£

£

Equities

3,663,000

3,857,000

Bonds

611,000

558,000

Property

815,000

835,000

Cash

187,000

385,000

Other

3,121,000

3,081,000

8,397,000

8,716,000

Principal actuarial assumptions at the Statement of Financial Position date:

31.3.25

31.3.24

The Local Government Pension Scheme ('Merseyside Pension Fund')

Rate of increase in pensions in payment

2.80%

2.80%

Discount rate

5.80%

4.90%

Inflation assumption

2.70%

2.70%

Post retirement mortality assumptions:

Mortality table - male/female non-retired members

SAPS 4 /SAPS 4 middle

SAPS 3 / SAPS 3 middle

Improvements - male/female non-retired members

CMI 23 1.5% / CMI 23 1.5%

CMI 22 1.5% / CMI 22 1.5%

Weightings - male/female non-retired members

114% / 103%

115% / 103%

Additional parameters - male/female non-retired members

S=7.0, A=0W20=W21=0, W22=W23=15%

S7.0, A=0W20= W21=0,W22=25 %

Life expectancy at 65* - male/female non-retired members

22.1 / 25.2

22.2 / 25.2

*currently aged 45

Mortality table - male/female retired members

SAPS 4 / SAPS 4 middle

SAPS 3 / SAPS 3 middle

Improvements - male/female retired members

CMI 23 1.5% / CMI 23 1.5%

CMI 22 1.5% / CMI 22 1.5%

Weightings - male/female retired members

109% / 103%

111% / 103%

Additional parameters - male/female retired members

S=7, A=0W20=W21=0, W22=W23=15%

S=7, A=0W20=W21= 0,W22=25%

Life expectancy at 65 - male/female retired members

20.8 / 23.5

20.9 / 23.4

The LAWDC Pension Fund Scheme

Rate of increase in pensions in payment

2.80%

2.75%

Discount rate

5.80%

4.85%

Inflation assumption

3.15%

3.10%

Life expectancy

Life expectancy at 65 - male/female retired members

18.6 / 20.8

19.1 / 21.9

Life expectancy at 65* - male/female non-retired members

22.0 / 24.6

22.6 / 25.6

*currently aged 45

Longevity assumptions

For the male members for the year ended 31 March 2025, future improvements have been based on CMI 2023 model with smoothing (Sk parameter) set to 7, Initial rates (A parameter) set to 0.25%, and long-term rate of improvement (P parameter) set to 1.5%. For comparison, for male members for the year ended 31 March 2024, future improvements have been based on CMI 2020 model with smoothing (Sk parameter) set to 7, Initial rates (A parameter) set to 0.2%, and long-term rate of improvement (P parameter) set to 1.5%.

For female members, for the year ended 31 March 2025, future improvements been determined using CMI 2023 model with smoothing (Sk parameter) set to 7, Initial rates (A parameter) set to 0.25%, and long-term rate of improvement (P parameter) set to 1.5%. For comparison, for female members for the year ended 31 March 2024, future improvements were based on CMI 2020 model with smoothing (Sk parameter) set to 7, Initial rates (A parameter) set to 0.6%, and long-term rate of improvement (P parameter) set to 1.5%.

Sensitivity of the liability value to changes in the principal assumptions

Within the Merseyside Pension Fund, if the discount rate decreased by 0.5% from the rate assumed as detailed above, and all other assumptions remained consistent, the net surplus of the scheme, before any asset ceiling where accounted for, would decrease by £0.244m. An increase in the inflation rate of 0.25% from the rate used as detailed above, assuming all other assumptions remained the same, would result in a reduction in the net surplus of the fund, before accounting for any asset ceiling, of £0.126m. A 1 year increase in the life expectancy of both the retired and non-retired members from the assumed life expectancy of the members as detailed above, assuming all other assumptions remained the same, would result in a decrease to the net surplus position of the scheme by £0.125m.

Within the LAWDC Pension Scheme, if the discount rate decreased by 0.5% from the rate assumed as detailed above, and all other assumptions remained consistent, the net surplus of the scheme would decrease by £0.101m. An increase in the inflation rate of 0.5% from the rate used as detailed above, assuming all other assumptions remained the same, would result in a reduction in the net surplus of the fund of £0.09m. A 1 year increase in the life expectancy of both the retired and non-retired members from the assumed life expectancy of the members as detailed above, assuming all other assumptions remained the same, would result in a decrease to the net surplus position of the scheme by £0.052m.

9.	RELATED PARTY DISCLOSURES

The Company consider Merseyside Recycling and Waste Authority (MRWA) as being a related party by virtue of its shareholding in the Company.

The following transactions took place during the year during the normal course of business:

- Other expenses paid to MRWA were £47,906 (2024: £52,901 from MWRA)

- Capital contributions received were £103,307 (2024: £130,863)

At 31 March 2025, the amounts receivable from MRWA were £34,926 (2024: £33,295 payable).

Whilst pension liabilities are included in the Statement of Financial Position, the ongoing contributions in respect of former employees are paid direct by MRWA to Veolia under the shareholder's agreement.