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Registered number:
For the 18 Months Ended
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Watch It Come Down Limited
Company Information
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Watch It Come Down Limited
Contents
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Watch It Come Down Limited
Group Strategic Report
For the Period Ended 31 March 2024
The directors present their Group Strategic Report for the 18 months ended 31 March 2024.
Waste, Transport and Asbestos Landfill
The Waste, Transport and Asbestos Landfill parts of the business (comprising Pinden Limited, Erith Waste Management Limited and Asbestos Waste Management Limited) experienced an overall reduction in turnover of 6%, after accounting for the extended period of account, with gross profit margin increasing from 24% to 27%. During the period, the business had to find alternative finance to ensure it met its tax liabilities with HMRC. The strength of the balance sheet enabled the business to achieve both a short-term loan with Together Finance and a new invoice discounting facility with Close Brothers on improved terms from the departing provider. The business has maintained a good record with both providers, with no breaches on any covenants. The heavy burden of the increased finance costs of the bridging loan arranged in the period led to this part of the Group's business suffering a loss of £2.6m (Year ended 30 September 2022: £0.7m), excluding provisions against intercompany loans (which are eliminated in the group accounts). Waste Transfer Station The impact of the fire in August 2020 has still had an effect its general waste customer base as the recovery to rebuild it has taken longer than expected. Further pressure came from contraction in the overseas energy market and the available contracts for disposal, whilst wage pressure is still felt as economic inflationary pressure continues. Transport The skip business maintained its position in the market, but the continued pressure on drivers’ wages cannot be discounted. The Directors sought to incentivise members of the transport team with increasing productivity bonuses to maintain the appropriate staffing levels. Asbestos Landfill The market is tough, but the position has remained steady with no further contraction. Demolition Turnover increased by 22% on a pro-rata basis, from £1.1m in the year ended 30 September 2022 to £2.0m in the 18 months ended 31 March 2024. The negative gross profit margin moved from 17% in the prior year to 2% in the 18 months ended 31 March 2024, with the overall operating loss falling from £591k in the year ended 30 September 2022 to £552k in the 18 months ended 31 March 2024. Administration expenses increased from £407k in the year ended 30 September 2022, to £514k in the 18 months ended 31 March 2024, which represents a 16% reduction period upon period on a pro-rata basis. Overall, the Demolition company (Syd Bishop & Sons (Demolition) Limited) experienced losses of £554k (Year ended 30 September 2022: £549k) and the subsidiary has net liabilities totalling £5m (30 September 2022: £4.5m) as a result. During the year, the Directors made a concerted effort to reduce the demolition company’s overheads, to help the business move forward to March 2025 with confidence of an improved performance. Furthermore, in July 2024, the Company won a significant demolition and clearance project that returned a 30% gross profit, which has helped the Company see improved results in the year ended 31 March 2025.
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Watch It Come Down Limited
Group Strategic Report (continued)
For the Period Ended 31 March 2024
Group summary
The Group headed by Watch It Come Down Limited ('the Group') has net assets totalling £11.8m (30 September 2022: £10.9m) and net current liabilities totalling £8.7m (2022: £3.5m). The increase in net assets is due to a £4.4m surplus arising upon revaluation of group properties, outweighing the Group's £3.5m loss in the period. The Group meets its working capital requirements through cash generated from operations, commercial bridging loan, invoice discounting and hire purchase facilities. At the beginning of the period, the Group breached the terms of covenants under the previous facility with Shawbrook Bank, and tax liabilities totalling £2.3m were overdue for payment. In November 2023, the Company arranged a £5.5m commercial bridging loan which enabled the tax liabilities to be paid under the terms of a payment arrangement, and Shawbrook Bank loans and invoice discounting facilities were settled early. The bridging loan was initially repayable in November 2024, and an agreement was subsequently made to increase the loan to £5.8m and extend the repayment date to November 2025, which is less than 12 months after the financial statements being approved. The increase in net current liabilities, noted above, is mainly due to the bridging loan being due for repayment in less than one year. In July 2025, tax liabilities totalling £0.9m were overdue and at the date of the accounts being approved, all scheduled payments under a Time-To-Pay arrangement have been made to date. The Directors are very confident that an extension to the repayment date of the bridging loan, or obtaining a new bridging loan, will be achievable ahead of the repayment date. The Group continued to make a loss in the year ended 31 March 2025, however improvements have been made to internal operations and the Group's trading position has begun to improve in the 2025/26 period. There is also significant value in the property assets held by the Group, which may be utilised in the event of funds being required.
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Watch It Come Down Limited
Group Strategic Report (continued)
For the Period Ended 31 March 2024
The Group uses financial instruments including bank and other loans, invoice discounting and hire purchase agreements. These instruments expose the Group to several financial risks, which are described below:
Funding risk The Group finances its operations through a combination of equity, bank and bridging loans, invoice discounting, hire purchase contracts and working capital. The Group undertakes short term cash forecasting to monitor its expected cash flows against its cash availability and finance facilities. The Company also undertakes longer term cash forecasting to monitor its expected funding requirements in order to meet its current business plan, in the context of its existing facilities, and to identify and address its requirement for future funding facilities. Interest risk The Group finances its operations through a mixture of profits and bank and hire purchase borrowings. Liquidity risk In normal trading periods, the Group seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet ongoing operations and future development. Short term debt finance flexibility is achieved by invoice discounting, hire purchase and bridging loans which help smooth the cash flow over the year as the Group operates in a seasonally effected industry. Currently liquidity risk is being managed by the directors in accordance with the usual procedures, but utilising the short-term bridging facilities in place. The directors expect to either extend the bridging loan repayment date, or obtain an alternative bridging loan, alongside the existing invoice discounting facility, which together with planned property sales will address any liquidity risk in the short to medium term. The Directors are also pursuing obtaining a loan on a term basis for the longer-term. Credit risk The Group’s principal financial assets are cash and trade debtors. In order to manage credit risk, the directors set limits for customers based on carrying out independent credit checks, credit agency and third party references. Payment history is also monitored based on trading history. Credit limits are reviewed on a regular basis by the credit control team in conjunction with debt aging and collection history. Competitive risks The Group operates in competitive markets. The breadth of the client base reduces the possible effect of the loss of any one single client. The Group focuses on providing clients with a high level of service and wide range of services. This enables the Group to maintain long term relationships with clients and attract new custom. Compliance risk Compliance is central to everything the Group does, particularly the operation of a landfill site, recycling facility and waste transfer stations alongside managing a large fleet of vehicles and plant and machinery. The Group has continually invested in people and systems whilst engaging with external professional bodies and stakeholders to ensure the business the highest standards and levels of compliance.
The financial key performance indicators of the Group are Turnover, Gross Profit and Profit before tax, as noted above.
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Watch It Come Down Limited
Group Strategic Report (continued)
For the Period Ended 31 March 2024
The Directors and senior management team continue to use a number of methods to monitor performance including the use of the data extraction tools within the accounting package to pinpoint departmental and cost centre fluctuations both seasonal and unexpected, so that decisions can be made to rectify performance. The use of the hand-recording payroll system enable the HR function to assess sickness absence and overall morale of the staff to ensure that policies to help and support staff can be put in place. The transport function has a suite of tools to help it maintain efficiencies including vehicle tracking, digital tachographs and fuel management software, to maintain and develop the department.
This report was approved by the board and signed on its behalf.
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Watch It Come Down Limited
Directors' Report
For the Period Ended 31 March 2024
The directors present their report and the financial statements for the period ended 31 March 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group'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 Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the period, after taxation, amounted to £3,452,784 (2022 - loss £1,638,590).
The Directors do not recommend the payment of a final dividend.
The directors who served during the period were:
Please see the Group Strategic Report for a description of these.
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Watch It Come Down Limited
Directors' Report (continued)
For the Period Ended 31 March 2024
The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis on which the directors have reached their conclusion.
Group summary The Group headed by Watch It Come Down Limited ('the Group') has net assets totalling £11.8m (30 September 2022: £10.9m) and net current liabilities totalling £8.7m (2022: £3.5m). The increase in net assets is due to a £4.4m surplus arising upon revaluation of group properties (net of deferred tax), outweighing the Group's £3.5m loss in the period. The Group meets its working capital requirements through cash generated from operations, commercial bridging loan, invoice discounting and hire purchase facilities. At the beginning of the period, the Group breached the terms of covenants under the previous facility with Shawbrook Bank, and tax liabilities totalling £2.3m were overdue for payment. In November 2023, the Company arranged a £5.5m commercial bridging loan which enabled the tax liabilities to be paid under the terms of a payment arrangement, and Shawbrook Bank loans and invoice discounting facilities were settled early. The bridging loan was initially repayable in November 2024, and an agreement was subsequently made to increase the loan to £5.8m and extend the repayment date to November 2025, which is less than 12 months after the financial statements being approved. The increase in net current liabilities, noted above, is mainly due to the bridging loan being due for repayment in less than one year. In July 2025, tax liabilities totalling £0.9m were overdue and at the date of the accounts being approved, all scheduled payments under a Time-To-Pay arrangement have been made to date. The current position represents a material uncertainty over the Group’s ability to continue to trade as a going concern. However, the Directors are very confident that an extension to the repayment date of the bridging loan, or obtaining a new bridging loan, will be achievable ahead of the repayment date. The Group continued to make a loss in the year ended 31 March 2025, however improvements have been made to internal operations and the Group's trading position has begun to improve in the 2025/26 period. There is also significant value in the property assets held by the Group, which may be utilised in the event of funds being required. The directors believe it is appropriate to prepare the financial statements to 31 March 2024 on a going concern basis.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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Watch It Come Down Limited
Directors' Report (continued)
For the Period Ended 31 March 2024
This report was approved by the board and signed on its behalf.
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Watch It Come Down Limited
Independent Auditors' Report to the Members of Watch It Come Down Limited
We have audited the financial statements of Watch It Come Down Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 March 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Group 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.
We draw attention to note 2.3 in the financial statements, which indicates that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. The material uncertainty is in relation to the Group's ability to repay, or obtain an extension to the repayment date of, a bridging loan which is due to be repaid in November 2025, less than 12 months from the financial statements being approved. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Key audit matters Except for the matter described in the Material uncertainty related to going concern section, we have determined that there are no other key audit matters to be communicated in our report.
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Watch It Come Down Limited
Independent Auditors' Report to the Members of Watch It Come Down Limited (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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Watch It Come Down Limited
Independent Auditors' Report to the Members of Watch It Come Down Limited (continued)
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 Group 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:
The engagement partner's assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's: • Understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation; • Knowledge of the industry in which the entity operates; • Understanding of the legal and regulatory requirements specific to the entity. Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: • The nature of the industry and sector in which the Group and Company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets. • The outcome of enquiries of management, including whether it was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. • Supporting documentation relating to the Group and Company's policies and procedures for: - Identifying, evaluating, and complying with laws and regulations - Detecting and responding to the risks of fraud • The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. • The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. • The legal and regulatory framework in which the Group and Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Group and Company, including General Data Protection requirements, Anti-bribery and Corruption, healthy and safety regulations and regulations associated with the Group and Company's waste carrier licence/registrations, waste management/operations permits and landfill permit. Audit response to risks identified Our procedures to respond to the risks identified included the following: • Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements. • Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. Procedures to identify non-compliance with relevant laws and regulations were performed at all components within the scope of our audit. • Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities. • Enquiring of management about any actual and potential litigation and claims. • Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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Watch It Come Down Limited
Independent Auditors' Report to the Members of Watch It Come Down Limited (continued)
We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error. • Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and • Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, 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 or intentional misrepresentations, or through collusion.
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.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Statutory Auditors
Chartered Accountants
3 Stockport Exchange
SK1 3GG
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Watch It Come Down Limited
Consolidated Statement of Comprehensive Income
For the 18 Months Ended 31 March 2024
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Watch It Come Down Limited
Registered number: 00569618
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 October 2025.
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Watch It Come Down Limited
Registered number: 00569618
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 46 form part of these financial statements.
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Watch It Come Down Limited
Consolidated Statement of Changes in Equity
For the 18 months Ended 31 March 2024
Consolidated Statement of Changes in Equity
For the Year Ended 30 September 2022
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Watch It Come Down Limited
Company Statement of Changes in Equity
For the 18 months Ended 31 March 2024
Company Statement of Changes in Equity
For the Year Ended 30 September 2022
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Watch It Come Down Limited
Consolidated Statement of Cash Flows
For the Period Ended 31 March 2024
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Watch It Come Down Limited
Consolidated Statement of Cash Flows (continued)
For the Period Ended 31 March 2024
Consolidated Analysis of Net Debt
For the Period Ended 31 March 2024
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Watch It Come Down Limited ('the Company') is a private limited company domiciled and incorporated in England and Wales.
The address of its registered office and its principal place of business is Waldens Depot, Waldens Road, Orpington, Kent, BR5 4EU. The principal activities of the Company continue to be providing management services to group companies. The trading subsidiaries' principal activities continued to be those of demolition, landfill and waste management operations, skip hire and asbestos waste management.
2.Accounting policies
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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The reporting period is the 18 months ended 31 March 2024. As the previous reporting period was the year ended 30 September 2022, the comparative amounts presented in the financial statements are not entirely comparable.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
Parent Company disclosure exemptions
In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:
∙No Statement of Cash Flows has been presented for the parent company.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis on which the directors have reached their conclusion.
Group summary The Group headed by Watch It Come Down Limited ('the Group') has net assets totalling £11.8m (30 September 2022: £10.9m) and net current liabilities totalling £8.7m (2022: £3.5m). The increase in net assets is due to a £4.4m surplus arising upon revaluation of group properties (net of deferred tax), outweighing the Group's £3.5m loss in the period. The Group meets its working capital requirements through cash generated from operations, commercial bridging loan, invoice discounting and hire purchase facilities. At the beginning of the period, the Group breached the terms of covenants under the previous facility with Shawbrook Bank, and tax liabilities totalling £2.3m were overdue for payment. In November 2023, the Company arranged a £5.5m commercial bridging loan which enabled the tax liabilities to be paid under the terms of a payment arrangement, and Shawbrook Bank loans and invoice discounting facilities were settled early. The bridging loan was initially repayable in November 2024, and an agreement was subsequently made to increase the loan to £5.8m and extend the repayment date to November 2025, which is less than 12 months after the financial statements being approved. The increase in net current liabilities, noted above, is mainly due to the bridging loan being due for repayment in less than one year. In July 2025, tax liabilities totalling £0.9m were overdue and at the date of the accounts being approved, all scheduled payments under a Time-To-Pay arrangement have been made to date. The current position represents a material uncertainty over the Group’s ability to continue to trade as a going concern. However, the Directors are very confident that an extension to the repayment date of the bridging loan, or obtaining a new bridging loan, will be achievable ahead of the repayment date. The Group continued to make a loss in the year ended 31 March 2025, however improvements have been made to internal operations and the Group's trading position has begun to improve in the 2025/26 period. There is also significant value in the property assets held by the Group, which may be utilised in the event of funds being required. The directors believe it is appropriate to prepare the financial statements to 31 March 2024 on a going concern basis.
Page 20
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
2.Accounting policies (continued)
Demolition of contracts Where the outcome of a contract can be estimated reliably, revenue and related costs are recognised by reference to the stage of completion at the reporting date. Reliable estimation of the outcome of demolition contracts required estimates of the stage of completion, future costs and collectability of billings. The stage of completion is measured by surveys of work performed. Where the outcome of a contract cannot be estimated reliably, revenue is only recongised to the extent of contract costs incurred that is probable will be recoverable. When it is probable that the total contract costs will exceed contract revenue on a demolition contract, the expected loss shall be recognised as an expense immediately, with a corresponding provision for an onerous contract. Revenue in respect of variations to contracts is recognised when it is probable it will be agreed by the customer. Revenue from the saleable materials which are retrieved from demolition sites is recognised when they are delivered to the customer. Revenue from landfill and waste recycling operations is recognised when the waste is deposited. Revenue from skip hire is recognised when the skips are delivered. Revenue from asbestos disposal is recognised on the date on which the customers' waste material is disposed of.
Page 21
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
2.Accounting policies (continued)
Page 22
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
2.Accounting policies (continued)
Goodwill
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.
The estimated useful lives range as follows:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
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.
The landfill site is depreciated over its expected useful economic life, as calculated by the proportion of the site which has been filled with waste, relative to its estimated total capacity.
No depreciation is provided on assets under construction. When complete, the asset is transferred to the relevant class and depreciated in accordance with the above policy.
Page 23
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
2.Accounting policies (continued)
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Page 24
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Financial instruments are recognised in the Group's Balance Sheet when the Group 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 including transaction costs 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 Group'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
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 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
Page 25
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
2.Accounting policies (continued)
of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. 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 instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.
Page 26
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
including expectations of future events that are believed to be reasonable under the circumstances. After-care provision Management makes judgements in relation to the provision made for after-care costs associated with the landfill site. The total aftercare costs were calculated by an independent expert and a proportion of this is included within the accounts based on the level of fill of the entire site. The carrying value of the aftercare provision at 31 March 2024 was £2,502,432 (30 September 2022: £2,470,957). Revaluation of Freehold Property and Landfill The Company’s accounting policy is to revalue certain freehold property and the landfill site to fair value in accordance with FRS 102. The determination of fair value involves significant judgement and estimation. Management engages qualified independent valuers to assess the fair value of properties at appropriate intervals. In determining fair value, the valuers consider market conditions, recent transactions for similar properties, location, condition, and the current use of the asset. Due to the nature of property valuation, there is inherent uncertainty in the estimates. Changes in market conditions or assumptions may result in material adjustments to the carrying amount of revalued properties. Management has reviewed the valuation reports and considers the assumptions used to be reasonable and supportable at the reporting date. The carrying value of the freehold property and landfill at 31 March 2024 was £14,504,966 and £4,370,000 respectively (30 September 2022: £14,036,774 and £1,063,228 respectively).
The whole of the turnover is attributable to demolition and waste management activities.
Page 27
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Page 28
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Page 29
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Page 30
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
12.Taxation (continued)
The Group has tax losses of approximately £5.8m (30 September 2022: £3.0m) available to carry forward against future trading profits.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the period/year was £
Page 31
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Page 32
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Page 33
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
15.Tangible fixed assets (continued)
Page 34
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
15.Tangible fixed assets (continued)
Page 35
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
15.Tangible fixed assets (continued)
Page 36
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
15.Tangible fixed assets (continued)
Page 37
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Page 38
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Page 39
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
The finance lease liabilities are secured by the assets to which they relate.
Page 40
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Page 41
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Page 42
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Revaluation reserve
Capital redemption reserve
Profit and loss account
Page 43
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
The Group had a cross-company guarantee in favour of Shawbrook Bank Limited. The cross-company guarantee was in relation to bank loans and invoice discounting facilities provided to the group, totalling £4,841,186 at 30 September 2022 (none of which was recognised as liability of the Company). These facilities were repaid during the period alongside refinancing. The Group now has a £5.8m commercial bridging loan in place.
A fixed and floating charge now exists in favour of Close Brothers Limited over all the assets of the Company, in relation to the Group's invoice discounting liabilities totalling £1,168,189 (30 September 2022: £nil).
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £157,933 (Year ended 30 September 2022: £95,809). Contributions totalling £74,945 (30 September 2022: £73,419) were payable to the fund at the balance sheet date and are included in creditors.
Page 44
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
Personal guarantees have been given by the directors in respect of the Group's commercial bridging loan (classified within 'Other loans') totalling £5,577,430 (30 September 2022: £nil).
Page 45
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Watch It Come Down Limited
Notes to the Financial Statements
For the Period Ended 31 March 2024
The Group is controlled by the board of directors.
Page 46
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