Green Machine SW Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

1	General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
130 Berrow Road
Burnham on Sea
Somerset
TA8 2PH

Principal activity

The principal activity of the company is provision of cleaning services

The principal place of business is:
Unit 2A, Oak Tree Business Park,
Bristol Road
Highbridge
Somerset
TA9 4HA

2	Accounting policies

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

Green Machine SW Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Prior period errors

In the course of completing the accounts, the directors have identified that they had not included the sale of franchises within the company's accounting records. As a result, the comparative figures in these accounts have been revised. The effect of this adjustment is that turnover for the prior year increased by £100,000, with the profit before tax increasing by a similar amount. As a result of this increase there has also been an adjustment of the tax charge due of £23,520.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

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

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold property	- 2% straight line
Plant and machinery	- 20% straight line
Motor vehicles	- 20% straight line

Page 5

Green Machine SW Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance costs in the statement of comprehensive income and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Green Machine SW Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 424 (2023 - 365).

Green Machine SW Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

4	Tangible assets

	Land and buildings £	Plant and machinery £	Motor vehicles  £	Total £
Cost or valuation
At 1 January 2024	501,952	43,231	214,567	759,750
At 31 December 2024	501,952	43,231	214,567	759,750
Depreciation
At 1 January 2024	10,039	39,230	124,970	174,239
Charge for the year	10,039	1,334	36,923	48,296
At 31 December 2024	20,078	40,564	161,893	222,535
Carrying amount
At 31 December 2024	481,874	2,667	52,674	537,215
At 31 December 2023	491,913	4,001	89,597	585,511

5

Debtors

	2024 £	(As restated) 2023 £
Trade debtors	749,213	735,649
Other debtors	702,442	205,982
	1,451,655	941,631

Green Machine SW Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

6

Creditors

Creditors: amounts falling due within one year

	2024 £	(As restated) 2023 £
Due within one year
Loans and borrowings	80,317	105,760
Trade creditors	2,633	609
Taxation and social security	488,609	182,444
Accruals and deferred income	42,063	4,646
	613,622	293,459

Creditors: amounts falling due after more than one year

	2024 £	2023 £
Due after one year
Loans and borrowings	395,691	415,436

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £476,608 (2023 £571,196). The amounts are secured on the freehold property and other assets of the company.

7

Reserves

Profit and loss account:

This reserve records retained earnings and accumulated losses.

8	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2024 £	2023 £
Not later than one year	30,196	26,386
Later than one year and not later than five years	45,481	56,582
	75,677	82,968

Green Machine SW Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

8	Obligations under leases and hire purchase contracts (continued)

The amount of non-cancellable operating lease payments recognised as an expense during the year was £107,243 (2023 - £114,776).

9	Related party transactions

Transactions with directors

2024	At 1 January 2024 £	Advances to director £	Repayments by director £	At 31 December 2024 £
Directors Loan	4,481	287,747	(39,500)	252,728

2023	At 1 January 2023 £	Advances to director £	Repayments by director £	At 31 December 2023 £
Directors Loan	(19,644)	152,755	(128,630)	4,481

Summary of transactions with all entities with joint control or significant interest

At 31 December 2024 the company was owed £283,504 (2023 £119,074) by Green Machine Campers Limited, a company in which the directors are 100% shareholders. During the year the company paid £73,511 on behalf of Green Machine Campers Limited, and invoiced management charges of £90,919 in respect of costs paid by the company on behalf of Green Machine Campers Limited.