Company registration number 10886821 (England and Wales)
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr C P Lawton
(Appointed 25 January 2024)
Mr L Higgins
(Appointed 25 January 2024)
Company number
10886821
Registered office
Bankwood Processing Site
Bankwood Lane
Rossington
Doncaster
South Yorkshire
DN11 0PS
Auditor
Champion Accountants LLP
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 36
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the year ended 31 October 2024.

Fair review of the business

The principal activity of the group continues to be that of a supplier of fully integrated, waste management solutions, specifically the processing of commercial/Industrial and Construction/Demolition waste. The group works in line with the waste hierarchy by mechanically separating waste streams for recycling such as wood, plastics, paper, card and metals, soils, soil conditioning additives and aggregates.

 

The remaining non-recyclable fractions are used in the production of Solid Recovered Fuel (SRF), Refuse Derived Fuel (RDF) which are used by energy intensive industries to replace finite fossil fuels.

Review of the year and future developments

During the 12 month period to 31st October 2024, the group has continued to operate as a key supplier of fully integrated, waste management solutions within the UK.

 

The UK waste management market remains challenging particularly with respect to higher operating costs, energy costs and labour shortages, the market continues to improve and we are seeing more stability with respect to operating costs, albeit at a higher level.

 

Eco-Power continues to concentrate on its more traditional recycling and recovery markets derived from UK's construction and demolition sector.

 

These market changes have enabled the business to maintain stability from a lower turnover position due to a reduction in operating and disposal cost and an increase in commodity returns.

 

The group will continue to focus on its key operations, and specifically its aim to divert 95% of material that it manages from landfill, with a capacity to handle more than 1.2 million tonnes of material per year, and additionally develop complimentary supply chain offerings to strategically grow the business.

Principal risks and uncertainties

The principal risks and uncertainties faced by the company are the general uncertain economic climate in which it currently trades.

 

The directors and management team continually monitor such risks and meet to discuss how best to protect the business.

Key performance indicators

The directors utilise the following key performance indicators to assess the performance of the group:

Year ended 31 October 2024
Year ended 31 October 2023
£'000
£'000
Turnover
10,630
11,755
Gross profit/(loss)
5,113
356
Gross profit/(loss) percentage
48.10%
3.03%
Profit/(loss) before tax and goodwill amortisation
6,730
(2,391)
Profit/(loss) before taxation
6,381
(2,740)
Profit/(loss) before tax percentage
60.03%
(23.31)%
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

On behalf of the board

Mr L Higgins
Director
30 October 2025
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Principal activities

The principal activity of the company and group continued to be that of managing the waste recycling operations of the group as detailed in the Strategic Report on page 1.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £460,173. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr L Calders
(Resigned 25 January 2024)
Mr L Jepson
(Appointed 25 January 2024 and resigned 23 April 2025)
Mr C P Lawton
(Appointed 25 January 2024)
Mr L Higgins
(Appointed 25 January 2024)
Auditor

In accordance with the company's articles, a resolution proposing that Champion Accountants LLP be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out on page 1 of the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr L Higgins
Director
30 October 2025
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
- 5 -

Qualified opinion on financial statements

We have audited the financial statements of Eco-Power Environmental Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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).

In our opinion, except for the effects of the matter described in the the basis for qualified opinion paragraph, the financial statements:

Basis for qualified opinion

The group's balance sheet includes balances in trade debtors, trade creditors and other debtors with a related party company, Eco-Power Skips Limited. In total these net to an amount due from Eco-Power Skips Limited of £1.87M. The directors have not provided for the impairment of this net balance due to the group on the basis that they consider the amount to be recoverable. In our opinion the net debtor balance is unlikely to be recovered, and therefore the balance should be written down by £1.87M to reflect its recoverable amount. The effect of this would be to reduce net assets and profit before tax by £1.87M.

 

The group's balance sheet includes a balance in other debtors of £1.11M with a related party company, G B M Promotions Limited. The directors have not provided for the impairment of this balance due to the group on the basis that they consider the amount to be recoverable. In our opinion there is insufficient evidence available to provide comfort that the balance is likely to be recovered, and therefore the balance should be written down by £1.11M to reflect its recoverable amount. The effect of this would be to reduce net assets and profit before tax by £1.11M.

 

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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.

Material uncertainty related to going concern

We draw attention to note 1.3 in the financial statements, which indicates that the company’s ability to continue as a going concern is dependent upon continued financial support from the wider Eco Power Group. We also draw attention to note 24 in the financial statements which detail numerous contingent liabilities. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.

Our opinion is not modified in respect of this matter.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves about the recovery of the net amounts due from Eco-Power Skips Limited of £1.87M and G B M Promotions Limited of £1.11M. We have concluded that where the other information refers to profit figures in the financial statements, they may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine 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 directors are responsible for assessing the parent 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 directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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:

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
- 7 -

Extent to which the audit is considered capable of detecting irregularities, including fraud

 

The responsibility for the prevention and detection of irregularities, including fraud, lies with the directors and with those charged with governance. The objectives of our audit in respect of irregularities and fraud are to assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient, appropriate audit evidence regarding the assessed risks and to respond appropriately to fraud or suspected fraud identified during the audit.

 

Audit procedures

 

We determine significant applicable laws and regulations through discussion with those charged with governance and our own knowledge of the industry and design audit procedures to help identify instances of non-compliance with those laws and regulations that may have a material effect on the financial statements.

 

We consider the applicable laws and regulations to be the financial reporting framework (FRS 102 and the Companies Act 2006), the relevant tax regulations in the UK, employment law and the Health and Safety at Work Act 1974.

 

We consider the control environment and the procedures in place to address identified risks, including management override, non-compliance with laws and regulations and to prevent and detect fraud or irregularity. Our procedures are designed to provide reasonable assurance that the financial statements are free from material misstatement or error and include: enquiries of management and of staff in key compliance functions; review of minutes of meetings of those charged with governance; review and testing of manual journals and significant transactions outside the normal course of business; review of financial statement disclosures and testing to supporting documentation; performance of analytical procedures.

 

We are not responsible for preventing non-compliance and due to the inherent limitations of an audit, as described above, the audit cannot be relied upon to detect all instances of non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Andrew Hopwood BSc (Hons) FCA (Senior Statutory Auditor)
For and on behalf of Champion Accountants LLP, Statutory Auditor
Chartered Accountants
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE
30 October 2025
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,630,202
11,755,305
Cost of sales
(5,517,614)
(11,399,139)
Gross profit
5,112,588
356,166
Administrative expenses
(7,656,565)
(5,432,999)
Other operating income
3,369,714
3,269,251
Exceptional item
4
-
(523,799)
Exceptional item
4
-
1,050,593
Exceptional items
4
293,337
-
0
Operating profit/(loss)
5
1,119,074
(1,280,788)
Interest receivable and similar income
7
(662)
-
0
Interest payable and similar expenses
8
(1,227,278)
(84,237)
Amounts written off loans and other gains and losses
9
6,490,277
(1,375,308)
Profit/(loss) before taxation
6,381,411
(2,740,333)
Tax on profit/(loss)
10
199,227
195,494
Profit/(loss) for the financial year
6,580,638
(2,544,839)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
993,720
1,342,236
Total intangible assets
993,720
1,342,236
Tangible assets
13
6,523,624
10,677,008
7,517,344
12,019,244
Current assets
Debtors
16
14,637,060
7,164,767
Cash at bank and in hand
32,472
11,774
14,669,532
7,176,541
Creditors: amounts falling due within one year
17
(7,232,531)
(13,721,321)
Net current assets/(liabilities)
7,437,001
(6,544,780)
Total assets less current liabilities
14,954,345
5,474,464
Creditors: amounts falling due after more than one year
18
(4,183,688)
(511,678)
Provisions for liabilities
Deferred tax liability
21
1,287,913
1,600,506
(1,287,913)
(1,600,506)
Net assets
9,482,744
3,362,280
Capital and reserves
Called up share capital
23
610
643
Revaluation reserve
5,619
5,619
Capital redemption reserve
33
-
0
Other reserves
4,030,904
4,030,904
Profit and loss reserves
5,445,578
(674,886)
Total equity
9,482,744
3,362,280

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 30 October 2025 and are signed on its behalf by:
30 October 2025
Mr L Higgins
Director
Company registration number 10886821 (England and Wales)
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
6,046,500
6,046,500
Current assets
Debtors
16
1,812,596
547
Creditors: amounts falling due within one year
17
(766,000)
(765,500)
Net current assets/(liabilities)
1,046,596
(764,953)
Total assets less current liabilities
7,093,096
5,281,547
Creditors: amounts falling due after more than one year
18
(2,211,259)
-
Net assets
4,881,837
5,281,547
Capital and reserves
Called up share capital
23
610
643
Capital redemption reserve
33
-
0
Other reserves
4,030,904
4,030,904
Profit and loss reserves
850,290
1,250,000
Total equity
4,881,837
5,281,547

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £60,464 (2023 - £80,000 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 30 October 2025 and are signed on its behalf by:
30 October 2025
Mr L Higgins
Director
Company registration number 10886821 (England and Wales)
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 November 2022
643
5,619
-
0
4,030,904
1,949,953
5,987,119
Year ended 31 October 2023:
Loss and total comprehensive income
-
-
-
-
(2,544,839)
(2,544,839)
Dividends
11
-
-
-
-
(80,000)
(80,000)
Balance at 31 October 2023
643
5,619
-
0
4,030,904
(674,886)
3,362,280
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
-
-
6,580,638
6,580,638
Dividends
11
-
-
-
-
(460,173)
(460,173)
Redemption of shares
23
(33)
-
33
-
-
-
0
Reduction of shares
23
-
-
-
-
(1)
(1)
Balance at 31 October 2024
610
5,619
33
4,030,904
5,445,578
9,482,744
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2022
643
-
0
4,030,904
1,250,000
5,281,547
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
-
80,000
80,000
Dividends
11
-
-
-
(80,000)
(80,000)
Balance at 31 October 2023
643
-
0
4,030,904
1,250,000
5,281,547
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
-
60,464
60,464
Dividends
11
-
-
-
(460,173)
(460,173)
Redemption of shares
23
(33)
33
-
-
-
0
Reduction of shares
23
-
-
-
(1)
(1)
Balance at 31 October 2024
610
33
4,030,904
850,290
4,881,837
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(8,802,097)
2,925,346
Interest paid
(1,227,278)
(84,237)
Income taxes paid
(7,052)
-
Net cash (outflow)/inflow from operating activities
(10,036,427)
2,841,109
Investing activities
Purchase of tangible fixed assets
(1,370,429)
(705,124)
Proceeds from disposal of tangible fixed assets
3,073,082
298,155
Proceeds from disposal of subsidiaries, net of cash disposed
6,764,150
-
Proceeds from disposal of investments
-
(308,776)
Repayment of loans
(482,641)
(1,131,359)
Interest received
(662)
-
0
Net cash generated from/(used in) investing activities
7,983,500
(1,847,104)
Financing activities
Redemption of shares
(34)
-
0
Repayment of borrowings
3,030,060
(297,456)
Payment of finance leases obligations
(496,228)
(982,743)
Dividends paid to equity shareholders
(460,173)
(80,000)
Net cash generated from/(used in) financing activities
2,073,625
(1,360,199)
Net increase/(decrease) in cash and cash equivalents
20,698
(366,194)
Cash and cash equivalents at beginning of year
11,774
377,968
Cash and cash equivalents at end of year
32,472
11,774
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
(2,527,516)
-
Interest paid
(399,709)
-
0
Net cash outflow from operating activities
(2,927,225)
-
Investing activities
Dividends received
460,173
80,000
Net cash generated from investing activities
460,173
80,000
Financing activities
Redemption of shares
(34)
-
0
Repayment of borrowings
2,927,259
-
Dividends paid to equity shareholders
(460,173)
(80,000)
Net cash generated from/(used in) financing activities
2,467,052
(80,000)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
1
Accounting policies
Company information

Eco-Power Environmental Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Eco-Power Environmental Holdings Limited and all of its subsidiaries.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Eco-Power Environmental Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the group's ability to continue as a going concern.

 

The directors have recognised the downturn in financial performance of the group during the two years to 31 October 2024, excluding exceptional items. There was an operational restructuring of the business in December 2024 with the expectation that the current trading year will see a return to profitability. The senior management team prepare detailed forecasts as part of their day to day operations to set out the short and medium cash flow needs. The group will continue to receive the support of other businesses within the wider Eco Power Group. As detailed in note 24 to these accounts, there is also a contingent liability that could affect the company's ability to continue as a going concern.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land
Held at fair value as determined by an independent valuer
Leasehold land and buildings
10 years straight line basis
Plant and equipment
1 to 20 years straight line basis
Office equipment
5 years straight line basis
Motor vehicles
3 to 12 years straight line basis

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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 and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities

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

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 20 -
1.15
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of fixed assets

Depreciation is provided to write down the assets over the estimated economic useful lives as set out in the Company's accounting policies. The selection of these estimated lives requires the exercise of management judgement. Useful lives are regularly reviewed and should management's assessment of useful lives change, then depreciation charges and carrying value of fixed assets in the financial statements would change accordingly.

Valuation of trade and other debtors

The directors assess the recoverability of trade and other debtors on an ongoing basis. This assessment requires judgement in deciding whether the amounts due will be received in full.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of goods and services
10,630,202
11,755,305
2024
2023
£
£
Other revenue
Interest income
(662)
-
Grants received - RHI income
3,369,714
3,260,855
4
Exceptional items
2024
2023
£
£
Expenditure
Exceptional expenses
-
523,799
Exceptional income
(293,337)
(1,050,593)
(293,337)
(526,794)

The income included as exceptional in this year and the prior year relates to money received during an exclusivity period entered into by the group for the potential sale of assets, licences and intellectual property at its Hull Plant. The sale didn't complete with this buyer but under the terms of the legal agreement entered into the payments received during the exclusivity period belong to Eco-Power Environmental Limited absolutely. Also included this year is a correction to an amount written off in error in the prior year.

 

The expenses included as exceptional in the prior year relate to costs incurred to maintain the Hull Plant ahead of a sale.

5
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Government grants
(3,369,714)
(3,260,855)
Fees payable to the group's auditor for the audit of the group's financial statements
-
-
Depreciation of owned tangible fixed assets
700,029
550,397
Depreciation of tangible fixed assets held under finance leases
392,859
840,784
Loss/(profit) on disposal of tangible fixed assets
1,357,843
(8,764)
Amortisation of intangible assets
348,516
348,516
Operating lease charges
396,723
289,535
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
42
34
0
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,314,185
1,319,920
-
0
-
0
Social security costs
132,688
210,837
-
-
Pension costs
131,255
57,028
-
0
-
0
1,578,128
1,587,785
-
0
-
0
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
(662)
-
0
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
(662)
-
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
520,498
78,762
Other interest
706,780
5,475
Total finance costs
1,227,278
84,237
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
9
Amounts written off loans and other gains and losses
2024
2023
£
£
Amounts written off loans to related companies
(453,141)
(1,146,532)
Amounts written off loans to third parties
-
(308,776)
Amounts written off loans from related companies
179,172
80,000
Other gains and losses
6,764,246
-
6,490,277
(1,375,308)

Included in amounts written off loans are various amounts no longer considered recoverable by the directors. These reflects a charge to the profit and loss account in the current and prior year which are not reflective of the underlying trade.

 

On 11 March 2024 the group sold its shares in Eco-Power Green Energy Limited, a 100% owned subsidiary. The resulting gain on disposal of these shares is shown in other gains and losses. This includes the contingent consideration detailed below.

 

Earn Out

 

As part of the share sale agreement there is contingent consideration linked to EBITDA performance in the 4 years following completion of the deal. This was stated in the agreement as being a minimum of £8M, less various warranty claims and deductions. The buyer has calculated the contingent consideration to be £4.2M based on current expectations in their latest audited accounts and therefore this figure has been included in the gain on disposal of Eco-Power Green Energy Limited as accrued income.

10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
79,724
(60,948)
Adjustments in respect of prior periods
33,642
(19,052)
Total current tax
113,366
(80,000)
Deferred tax
Origination and reversal of timing differences
(312,593)
(115,494)
Total tax credit
(199,227)
(195,494)
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
10
Taxation
(Continued)
- 24 -

The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
6,381,411
(2,740,333)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,595,353
(685,083)
Tax effect of expenses that are not deductible in determining taxable profit
256,206
416,143
Gains not taxable
(1,691,062)
-
0
Tax effect of utilisation of tax losses not previously recognised
(684)
-
0
Adjustments in respect of prior years
33,642
(19,052)
Fixed asset timing differences
(392,682)
19,071
Effect of revaluations of fixed assets
-
0
54,181
Small company relief adjustment to losses carried back
-
0
19,246
Taxation credit
(199,227)
(195,494)
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
460,173
80,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
3,495,164
Amortisation and impairment
At 1 November 2023
2,152,928
Amortisation charged for the year
348,516
At 31 October 2024
2,501,444
Carrying amount
At 31 October 2024
993,720
At 31 October 2023
1,342,236
The company had no intangible fixed assets at 31 October 2024 or 31 October 2023.
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
13
Tangible fixed assets
Group
Freehold land
Leasehold land and buildings
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 November 2023
640,000
1,548,190
14,518,114
37,688
320,650
17,064,642
Additions
-
0
100,174
1,192,338
-
0
77,917
1,370,429
Disposals
-
0
-
0
(6,844,429)
-
0
(89,710)
(6,934,139)
At 31 October 2024
640,000
1,648,364
8,866,023
37,688
308,857
11,500,932
Depreciation and impairment
At 1 November 2023
-
0
663,888
5,576,051
37,688
110,007
6,387,634
Depreciation charged in the year
-
0
161,475
887,579
-
0
43,834
1,092,888
Eliminated in respect of disposals
-
0
-
0
(2,409,837)
-
0
(93,377)
(2,503,214)
At 31 October 2024
-
0
825,363
4,053,793
37,688
60,464
4,977,308
Carrying amount
At 31 October 2024
640,000
823,001
4,812,230
-
0
248,393
6,523,624
At 31 October 2023
640,000
884,302
8,942,063
-
0
210,643
10,677,008
The company had no tangible fixed assets at 31 October 2024 or 31 October 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
2,447,284
6,364,319
-
0
-
0

Land with a carrying amount of £640,000 was revalued at 31 July 2017 by Bardill Barnard Ltd, independent valuers not connected with the group on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties The directors do not consider the current value at 31 October 2024 to be materially different.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
13
Tangible fixed assets
(Continued)
- 26 -
2024
2023
£
£
Group
Freehold land
183,357
183,357
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
6,046,500
6,046,500
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 and 31 October 2024
6,046,500
Carrying amount
At 31 October 2024
6,046,500
At 31 October 2023
6,046,500
15
Subsidiaries

Details of the company's subsidiaries at 31 October 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Eco-Power Environmental Group Limited
Bankwood Lane Industrial Estate, Bankwood Lane, Rossington, Doncaster, South Yorkshire, DN11 0PS
Ordinary
100.00
-
Eco-Power Environmental Limited
As above
Ordinary
0
100.00
Wroot Drying Services Limited
As above
Ordinary
0
100.00
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
722,701
287,778
-
0
-
0
Corporation tax recoverable
-
0
60,948
-
0
-
0
Amounts owed by group undertakings
-
-
1,812,049
-
Other debtors
8,467,796
5,820,948
547
547
Prepayments and accrued income
5,446,563
995,093
-
0
-
0
14,637,060
7,164,767
1,812,596
547
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
560,476
2,593,955
-
0
-
0
Other borrowings
19
794,000
78,000
716,000
-
0
Trade creditors
1,570,569
2,208,416
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
715,500
Corporation tax payable
91,031
45,665
-
0
-
0
Other taxation and social security
570,922
398,451
-
-
Other creditors
3,111,336
7,266,320
50,000
50,000
Accruals and deferred income
534,197
1,130,514
-
0
-
0
7,232,531
13,721,321
766,000
765,500
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
1,959,429
422,178
-
0
-
0
Other borrowings
19
2,224,259
89,500
2,211,259
-
0
4,183,688
511,678
2,211,259
-
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 28 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
3,018,259
167,500
2,927,259
-
0
Payable within one year
794,000
78,000
716,000
-
0
Payable after one year
2,224,259
89,500
2,211,259
-
0

Included within borrowings is a secured loan facility of £3million with Lux Park Limited, originally agreed on 15 December 2023 and varied in 2024. The loan is repayable over 60 months at an interest rate of 2.5% per annum. The facility is secured by fixed and floating charges over the assets of the group. The group is in compliance with all loan covenants. At the year end, the balance was £2,927,259.

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
560,476
2,593,955
-
0
-
0
In two to five years
1,959,429
422,178
-
0
-
0
2,519,905
3,016,133
-
-

Finance lease obligations are secured against the assets which they relate.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,175,087
1,745,407
Tax losses
-
(254,551)
Provisions
-
(3,176)
Capital gains
112,826
112,826
1,287,913
1,600,506
The company has no deferred tax assets or liabilities.
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
21
Deferred taxation
(Continued)
- 29 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
1,600,506
-
Credit to profit or loss
(312,593)
-
Liability at 31 October 2024
1,287,913
-
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
131,255
57,028

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
304
304
304
304
Ordinary A of £1 each
304
304
304
304
Deferred Shares of £1 each
-
33
-
33
Ordinary C of 1p each
50
100
1
1
Ordinary D of 1p each
100
100
1
1
758
841
610
643

On 8 February 2024 the company redeemed the 33 Deferred Shares with a nominal value of £33.

 

On 8 February 2024 the company bought back 50 Ordinary C shares with a nominal value of £0.50. The shares were cancelled immediately on purchase.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 30 -
24
Financial commitments, guarantees and contingent liabilities

First contingent liability

HM Revenue & Customs has entered into correspondence with the Eco-Power Environmental Limited, a company in the group, in respect of additional corporation tax and VAT that they consider is due. Various assessments have been received for the corporation tax but no formal assessment has yet been raised by H M Revenue & Customs for the VAT element.

 

Assessments received for additional corporation tax due total £2,166,036, which included interest to the date of the assessment. Potential penalties would be due in addition to these amounts.

 

The company strongly disputes the basis of the assessments received and the potential assessments for the VAT and, having taken professional advice, considers that it has strong grounds for contesting the claim. Accordingly, no provision has been made in the financial statements. The matter will be pursued through the appropriate appeals process. The ultimate outcome cannot be determined with certainty at this stage. Should the liability be proven to be due it would provide a material uncertainty with regards to going concern of the company and potentially the group.

 

Second contingent liability

In addition, the group historically received payments under a contractual arrangement in relation to a business deal. Under the terms of the agreement, the amounts received may be repayable although the group does not believe this to be the case and therefore no liability is included. The potential liability would have a material affect on the financial statements.

 

Guarantees

The group has granted a fixed and floating charge over its assets in favour of Lux Park Limited as continuing security for borrowings of £3million made to Eco-Power Environmental Holdings Limited. No amounts have been demanded under this guarantee.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
75,618
61,476
-
-
Between two and five years
750
76,368
-
-
76,368
137,844
-
-
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
249,803
519,780
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
26
Related party transactions
(Continued)
- 31 -

Mr M Jepson and Mr D Colakovic are beneficial shareholders in the ultimate parent undertaking, Eco-Power Environmental Holdings Limited.

 

During the year, the group entered into the following transactions with related parties:

 

ESC Investments Limited

ESC Investments Limited is a company in which Mr D Colakovic is a director and shareholder.

 

At the year end, Eco-Power Environmental Limited was owed £284,100 (2023: £524,200) from ESC Investments Limited. This amount is included in other debtors. At the year end, ESC Investments Limited owed £107,100 (2023: £107,100) to Wroot Drying Services Limited.

 

Eco Power Properties Limited

Eco Power Properties Limited is a company under the control of Mr D Colakovic, Mr M Jepson and Mr L Higgins.

 

During the year Eco-Power Environmental Limited received income of £nil (2023: £1,402) from Eco Power Properties Limited.

 

At the year end, Eco-Power Environmental Limited owed £255,557 (2023: £152,505) to Eco Power Properties Limited. This amount is included in other creditors. At the year end, Eco Power Properties Limited owed £1,000 (2023: £1,000) to Wroot Drying Services Limited.

 

Bankwood Commercial Properties Limited

Bankwood Commercial Properties Limited is a company under the control of Mr D Colakovic and Mr M Jepson.

 

At the year end, Eco-Power Environmental Limited was owed £nil (2023: £117,186) by Bankwood Commercial Properties Limited, following the debtor balance of £117,186 being written off following the company being dissolved.

 

Retford Wood Fuels Limited

Retford Wood Fuels Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

 

At the year end, Eco-Power Environmental Limited owed £nil (2023: £376,432) to Retford Wood Fuels Limited, following the company being dissolved and the balance being written off.

 

Eco Power Wood Fuels Limited

Eco Power Wood Fuels Limited is a company in which Mr M Jepson is a director and both Mr M Jepson and Mr D Colakovic have an interest.

 

£136,800 was written off in the current year. No amounts have been written off in the prior year. During the year ended 31 October 2024, Wroot Drying Services Limited made purchases of £40,000 (2023: £51,457) from Eco Power Wood Fuels Limited.

 

At the year end, Eco-Power Environmental Limited was owed £48,683 (2023: £1,113,957) from Eco Power Wood Fuels Limited. In addition, the company owed £61,589 (2023: £550,831) to Eco Power Wood Fuels Limited. This is included in other creditors. Wroot Drying Services Limited was owed £394,756 by Eco Power Wood Fuels Limited (2023: £294,881) at 31 October 2024.

 

Eco Power Construction Group Limited

Eco Power Construction Group Limited is a company under the control of Mr D Colakovic and Mr M Jepson.

 

At the year end, Eco-Power Environmental Limited owed £nil (2023: £100,002) to Eco Power Construction Group Limited. This amount is included in other creditors.

 

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 32 -
26
Related party transactions
(Continued)

Eco-Railfreight Limited

Eco-Railfreight Limited is a company in which Mr M Jepson and Mr D Colakovic hold an interest.

 

During the year, Eco-Power Environmental Limited made sales of £nil (2023: £5,354) to Eco-Railfreight Limited. During the year, the company made purchases of £2,542 (2023: £418,817) from Eco-Railfreight Limited.

 

At the year end, Eco-Power Environmental Limited owed £324,509 (2023: £342,191) to Eco-Railfreight Limited. This amount is included in other creditors.

 

Eco-Power Fuels Limited

Eco-Power Fuels Limited is a company in which Mr L Calders and Mr M Graves were directors during the year and hold an interest. In addition, Mr D Colakovic and Mr M Jepson hold an interest.

 

At the year end, Eco-Power Environmental Limited was owed £nil (2023: £32,845) by Eco-Power Fuels Limited. £32,845 was written off in the current year. No amounts have been written off in the prior year.

 

Eco Power Skips Limited

Eco-Power Skips Limited is a company in which Mr L Calders and Mr M Graves are directors and Mr M Jepson and Mr D Colakovic have an interest.

 

During the year, Eco-Power Environmental Limited made sales of £646,938 (2023: £2,418,765) to Eco-Power Skips Limited and purchases of £12,217 (2023: £690,009) from Eco-Power Skips Limited. During the year, Wroot Drying Services Limited made purchases of £1,451 (2023: £667) from Eco-Power Skips Limited.

 

At the year end, Eco-Power Environmental Limited was owed £1,865,492 (2023: £3,095,459) by Eco-Power Skips Limited. Eco-Power Skips Limited owed £nil (2023: £117,478) to Wroot Drying Services Limited, which was impaired as the balance was not deemed recoverable.

 

Eco Power Surfacing Limited

Eco Power Surfacing Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

 

At the year end, Eco-Power Environmental Limited owed £10,266 (2023: £169,866) to Eco Power Surfacing Limited. This amount is included in other creditors.

 

Commercial Heating & Drying Limited

Commercial Heating & Drying Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

 

During the year, Eco-Power Environmental Limited made sales of £24,669 (2023: £nil) to Commercial Heating & Drying Limited.

 

At the year end, Eco-Power Environmental Limited was owed £410,314 (2023: £445,156) by Commercial Heating & Drying Limited. This amount is included in other debtors. At the year end, Commercial Heating & Drying Limited owed £2,700 (2023: £2,700) to Wroot Drying Services Limited.

 

Eco Power Civil Engineering Limited

Eco Power Civil Engineering Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

 

During the year, Eco-Power Environmental Limited made sales credit notes of £16,958 (2023: £nil) to Eco Power Civil Engineering Limited. During the year the company made purchases of £212,816 (2023: £nil) from Eco Power Civil Engineering Limited.

 

At the year end, Eco-Power Environmental Limited was owed £717,689 (2023: £296,556) by Eco Power Civil Engineering Limited. This amount is included in other debtors.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 33 -
26
Related party transactions
(Continued)

Eco Power Recruitment Holdings Limited

Eco Power Recruitment Holdings Limited is a company in which Mr L Calders, Mr M Jepson and Mr D Colakovic have an interest.

 

At the year end, Eco-Power Environmental Limited was owed £nil (2023: £152,195) by Eco Power Recruitment Holdings Limited. During the year £36,076 due from Eco Power Recruitment Holdings Limited was written off as the loan was written off as part of the sale of the company.

 

Eco Power Metals Limited

Eco Power Metals Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest and Mr L Calders and Mr L Jepson are directors.

 

During the year, Eco-Power Environmental Limited made sales of £26,122 (2023: £nil) to Eco Power Metals Limited.

 

At the year end, Eco-Power Environmental Limited was owed £454,497 (2023: £33,176) by Eco Power Metals Limited. This amount is included in other debtors.

 

Eco Power Racing Limited

Eco Power Racing Limited is a company in which Mr D Colakovic has an interest.

 

During the year, the Eco-Power Environmental Limited made sales of £8,542 (2023: £nil) to Eco Power Racing Limited.

 

At the year end, Eco-Power Environmental Limited was owed £1,709,758 (2023: £172,328) by Eco Power Racing Limited. This amount is included in other debtors. At the year end, Eco Power Racing Limited owed £230,500 (2023: £37,100) to Wroot Drying Services Limited.

 

Eco Power Health and Wellness Clinic Limited

Eco Power Health and Wellness Clinic Limited is a company in which Mr D Colakovic has an interest.

 

During the year, Eco-Power Environmental Limited made purchases of £1,286 (2023: £nil) from Eco Power Health and Wellness Clinic Limited.

 

At the year end, Eco-Power Environmental Limited was owed £405,013 (2023: £230,802) by Eco Power Health and Wellness Clinic Limited.

 

 

Eco Power Plant Hire Limited

Eco Power Plant Hire Limited is a company owned by Mr D Colakovic in the period.

 

During the year, Eco-Power Environmental Limited made purchases of £23,321 (2023: £nil) from Eco-Power Plant Hire Limited.

 

At the year end, Eco-Power Environmental Limited owed £30,213 (2023: £nil) to Eco-Power Plant Hire Limited. This amount is included in other creditors.

 

At the year end, Wroot Drying Services Limited owed £nil (2023: £19,383) to Eco Power Plant Hire Limited.

 

GBM Promotions Limited

GBM Promotions Limited is a company indirectly controlled by Mr David Colakovic.

 

At the year end, Eco-Power Environmental Limited was owed £1,110,647 (2023: £nil) from GBM Promotions Limited.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 34 -
26
Related party transactions
(Continued)

Eco Power Star Design Interiors Limited

Eco Power Star Design Interiors Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest and Mr L Calder is a director.

 

During the year, Eco-Power Environmental Limited made sales of £8,590 (2023: £nil) to Eco Power Star Design Interiors Limited and purchases of £21,160 (2023: £nil) from Eco Power Star Design Interiors Limited.

 

At the year end, Eco-Power Environmental Limited was owed £nil (2023: £40,794) by Eco Power Star Design interiors Limited. £360,946 was written off in the current year. No amounts have been written off in the prior year.

 

At the year end, Eco Power Star Design Interiors Limited owed £nil (2023: £32,000) to Wroot Drying Services Limited. The balance of £32,000 has been written off as the company is in liquidation.

 

Directors' Current Accounts
Directors' current account balances included in other debtors at the year end total £52,100 (2023: £22,600). The outstanding amounts are repayable on demand and no interest was charged on the loans in the year.

 

Eco-Power Engineering Limited

Eco-Power Engineering Ltd is a company which Mr M Jepson has an interest and Mr L Calders is a director.

 

During the year, Eco-Power Environmental Limited made sales of £363 (2023: £nil) to Eco-Power Engineering Limited and purchases of £73,610 (2023: £nil) from Eco-Power Engineering Limited.

 

At the year end, Eco-Power Environmental Limited was owed £nil (2023: £nil) by Eco Power Engineering Limited. £62,477 was written off in the current year. No amounts have been written off in the prior year.

 

Eco-Power Priority One Security Limited

Eco Power Priority One Security Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest and Mr L Calders is a director.

 

During the year, Eco-Power Environmental Limited made sales of £3,855 (2023: £nil) to Eco-Power Priority One Security Limited and purchases of £43,196 (2023: £nil) from Eco-Power Priority One Security Limited.

 

At the year end, Eco-Power Environmental Limited owed £12,988 (2023: £nil) to Eco-Power Priority One Security Limited. This amount is included in other creditors.

 

Eco Tyres Limited

Eco Tyres Limited is a company indirectly controlled by Mr David Colakovic.

 

During the year, Eco-Power Environmental Limited made purchases of £1,304 (2023: £nil) from Eco Tyres Limited.

 

At the year end, Eco-Power Environmental Limited owed £643 (2023: £nil) to Eco Tyres Limited. This amount is included in other creditors.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 35 -
26
Related party transactions
(Continued)

Eco-Power Facilities Management Limited

Eco Power Facilities Management Limited is a company in which Mr L Higgins and Mr D Colakovic have an interest and Mr L Calders and Mr L Higgins are directors.

 

During the year, Eco-Power Environmental Limited made sales of £27,000 (2023: £nil) to Eco-Power Facilities Management Limited.

 

At the year end, Eco-Power Environmental Limited owed £nil (2023: £nil) to Eco-Power Facilities Management Limited. £62,080 was written off in the current year. No amounts have been written off in the prior year.

 

Eco-Power Renewable Energy Limited

Eco-Power Renewable Energy Limited is a company indirectly controlled by Mr David Colakovic.

 

At the year end, Eco-Power Environmental Limited was owed £nil (2023: £nil) by Eco Power Engineering Limited. £84,078 was written off in the current year. No amounts have been written off in the prior year.

 

JMS Haulage Limited

JMS Haulage Limited is a company indirectly controlled by Mr David Colakovic.

 

During the year, Eco-Power Environmental Limited made sales of £2,510 (2023: £nil) to JMS Haulage Limited . During the year the company made purchases of £2,087,338 (2023: £nil) from JMS Haulage Limited. At the year end, there were amounts of £331,730 due to JMS Haulage Limited (2023: £nil).

 

Loans to participators

At the year end, a balance of £410,510 (2023: £nil) was owed to Eco-Power Environmental Limited by Mr D Colakovic, a beneficial shareholder in the ultimate parent undertaking, Eco-Power Environmental Holdings Limited. The balance resulted from a loan in the period and interest is to be charged at the official beneficial loan interest rate on the amount due.

 

At the year end, a balance of £13,500 (2023: £nil) was owed to Wroot Drying Services Limited by Mr D Colakovic, a beneficial shareholder in the ultimate parent undertaking, Eco-Power Environmental Holdings Limited. The balance resulted from a loan in the period and interest is to be charged at the official beneficial loan interest rate on the amount due.

 

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 36 -
31
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit/(loss) for the year after tax
6,580,638
(2,544,839)
Adjustments for:
Taxation credited
(199,227)
(195,494)
Finance costs
1,227,278
84,237
Investment income
662
-
0
Loss/(gain) on disposal of tangible fixed assets
1,357,843
(8,764)
Amortisation and impairment of intangible assets
348,516
348,516
Depreciation and impairment of tangible fixed assets
1,092,888
1,391,181
Other gains and losses
(6,490,277)
1,375,308
Movements in working capital:
Increase in debtors
(7,503,741)
(1,158,358)
(Decrease)/increase in creditors
(5,216,677)
3,633,559
Cash (absorbed by)/generated from operations
(8,802,097)
2,925,346
32
Analysis of changes in net debt - group
1 November 2023
Cash flows
Other non-cash changes
31 October 2024
£
£
£
£
Cash at bank and in hand
11,774
20,698
-
32,472
Borrowings excluding overdrafts
(167,500)
(3,029,931)
179,172
(3,018,259)
Obligations under finance leases
(3,016,133)
496,228
-
(2,519,905)
(3,171,859)
(2,513,005)
179,172
(5,505,692)
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