The director presents the strategic report for the year ended 28 February 2025.

Strategy and Business Model

The group specialises in producing alternative fuels from waste that cannot be recycled. Our primary operation involves supplying a Solid Recovered Fuel (SRF) to four of the UK’s cement kilns as a replacement to burning fossil fuels, which in turn reduces CO2 emissions.

Our objectives are to work with our customers to develop new types of alternative fuels to allow them to increase the amount they can use and thus reduce their demand for fossil fuels. Our current SRF contains approximately 45% biomass, which is something we are aiming to increase as the demand for this grows and the pressure to reduce CO2 emissions rises. A further objective is to continue the development of other alternative fuels, to generate electrical and thermal energy from small-scale gasification installations, and to generate electricity using SRF in the form of pellets as fuel. We are working with our UK cement kiln customers to develop a main burner fuel for use in other parts of their system, which will be more refined than the SRF that we currently produce.

The turnover of the all the companies in the group for the full year of 2024-2025 has collectively increased, along with gross profit. The main off-takers have increased their demand for SRF leading to an increase in material in and in uptake in turnover.

The group continued to invest in new equipment, changing material handlers to electric in replacement of diesel machines, and technology to improve the quality of the final SRF material and reduce by-product.

Lancashire Waste Management Ltd continue to support the transportation for the group.

The demand for SRF in the UK is expected to continue as pressure to reduce fossil fuel consumption and reduce CO2 emissions is still prevalent, although demand has decreased from knock on effects of a downturn in the building trade in the current economic climate.

The director has identified the following principal risks and uncertainties affecting the group:

The group's main risk is that the majority of offtake material is sent to three cement producers, therefore if they have any downtime for maintenance or repairs outlets to send SRF are limited. The group is in talks with other potential UK customers looking to supply them with a main burner type fuel, also a baling facility with export or storage option is now available. In addition to this, Lancashire Waste Recycling Ltd and Envirofuel (SRF) Ltd are continuing to develop other processes and alternative fuel options that will open up opportunities to supply other markets.

The group continues to operate in a challenging waste environment marked by rising energy costs, cash flow pressures linked to our growth plans, and revenue uncertainty driven by falling gate fees as more waste is illegally disposed of outside the legitimate market. The group is also exposed to interest rate fluctuations on bank loan borrowings.

To mitigate these risks, we are investing in energy self-sufficiency through the installation of solar panels and the development of a gasification plant, while also prebuying energy to get the best possible deal.

Cash flow management also remains an important area of focus as we pursue continued growth and significant investment. Expansion projects, while essential to our long-term improvements, increase short-term funding requirements.

In addition we are strengthening our financial resilience by prioritising long-term contracted waste stream, particularly with local councils, over uncontracted spot customers.

This approach enhances stability, reduces credit exposure, and supports a more sustainable operational performance.

Beyond these financial and market risks, we continue to manage broader challenges including workforce availability, regulatory compliance, and equipment and site investment needs.

While uncertainties remain in the industry, our risk management approach along with targeted investments in energy self-sufficiency, long-term contractual arrangements, and sustainable growth, positions the group to withstand market pressures and capitalise on emerging opportunities within the industry.

The companies of the group have continued to expand in this financial year. Demand for SRF in the UK has allowed all areas of the business to maintain its position. With a clear focus on the business’ objectives and a consistent approach headed by the sole director, the group is continuing to be successful.

Following the year end the group has continued to trade well. The group has invested more into all sites for continued improvement to the final material to reduce moisture. The group is currently operating efficiently despite ongoing pressures from the current economic climate with continued fluctuating fuel and wages costs. Cement demand is slow. Despite this the director is of the opinion that the group will continue to maintain its trading position and grow. The group companies will continue to grow with adequate profitability as demand for SRF and other alternative fuels continues to increase.

All profits are reinvested back into the business to enable its continuing growth.

The companies of the group monitor their performance using a number of measures, as follows:

On behalf of the board

The director presents his annual report and financial statements for the year ended 28 February 2025.

The principal activity of the group is that of recycling and waste management.

The results for the year are set out on page 11.

No ordinary dividends were paid.

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

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Our energy and carbon data for the reporting period of 1 March 2024 to 28 February 2025 has been calculated in accordance with the UK Government’s Environmental Reporting guidelines (2019) and the associated UK government Greenhouse Gas (GHG) Factors for Company Reporting (2025 edition) issued by the Department for Energy Security and Net Zero (DESNZ). The disclosures within this section relate to energy consumption in respect of Lancashire Waste Recycling Limited only.

Scope 1 emissions include:

• Direct fuel consumption for mobile plant and machinery operated on site.

• Direct fuel use for the companies van fleet.

Scope 2 emissions include:

• Indirect emissions from purchased electricity (location-based method)

All fuel consumption was derived from internal operational records, equipment usage (hours and fuel rates) and fuel invoice data. Electricity consumption was obtained from supplier invoices and meter readings.

Emissions were calculated by multiplying the relevant data (e.g. litres of diesel, kWh of electricity) by the latest UK Government Conversion Factors (2025) for each fuel type or energy source:

Calculations were performed using an internal spreadsheet model consistent with the Greenhouse Gas Protocol – Corporate Accounting and Reporting Standard (WRI/WBCSD) framework and the DEFRA/BEIS SECR methodology. Results are reported in tonnes of CO₂ equivalent (tCO₂e).

No Scope 3 emissions have been included in this year’s SECR boundary.

There is no comparative data for financial year ended 28 February 2024 due to this being the first year that Lancashire Waste Recycling Limited has met the reporting threshold.

Total UK Greenhouse Gas Emissions (Location Based): 932.02 tCO2e

Total UK Greenhouse Gas Emissions (Market Based): 1,014.88 tCO2e

Organisational and Operational Boundaries

Emissions are reported for activities under the operational control of Lancashire Waste Recycling Ltd in the United Kingdom. The reporting boundary includes all mobile plant, and electricity use at owned or operated facilities and vehicles. It must be noted that Lancashire Waste Recycling does not use gas energy on site or operate any generators.

Estimation Methods

Where direct metered or invoice data was unavailable (for example, some mobile plant fuel use), energy consumption was estimated using operating hours and manufacturer-rated fuel consumption rates. These estimates were reviewed for reasonableness within the ISO 50001 energy-management framework and validated against historic usage trends.

These estimates were reviewed against previous-year usage to ensure they fell within a reasonable range. All estimation methods and assumptions have been documented internally in line with the GHG Protocol’s guidance on managing inventory quality.

The company has applied reasonable estimation methods for mobile plant fuel consumption where direct fuel data was unavailable.

Data Quality and Verification

Fuel and electricity data were checked against supplier totals. Lancashire Waste Recycling holds an ISO 50001 – certified Energy Management System qualification which covers the site’s operations. This ensures that any data collected is monitored and reviewed, helping to prove the accuracies of the data.

No independent third-party verification of GHG calculations has been undertaken, as the ISO 50001 framework already provides independent audit of the underlying energy data.

Energy Efficiency Actions Taken in the Reporting Year

No new specific energy efficiency actions were implemented during the reporting period. Energy management continues to be maintained under the ISO 50001 system to ensure continual monitoring and identification of future improvement opportunities.

References

1. Department for Energy Security and Net Zero (2025). UK Government GHG Conversion Factors for Company Reporting: Methodology Paper.

2. Department for Energy Security and Net Zero (2019). Environmental Reporting Guidelines (incl. SECR).

3. WRI & WBCSD (2015 rev.). GHG Protocol Corporate Accounting and Reporting Standard.

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in 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. It has done so in respect of future developments.

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.

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

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The director is 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. He is 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.

We have audited the financial statements of Lancashire Waste Recycling (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2025 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 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 the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 28 February 2025 and of the group's profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 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 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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 director is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

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

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

• Enquiry of management around actual and potential litigation and claims;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations, including ISO 9001, ISO 14001 and ISO 18001;

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;

• Auditing the risk of fraud in revenue, through the consideration of revenue accounting policies and subsequently reviewing the correct application of income cut off procedures around the balance sheet date, and performing revenue transaction and proof in total testing to provide comfort that revenue is completely stated within the financial statements.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 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 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £44,517 (2024 - £0 profit).

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

Lancashire Waste Recycling (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Rees House, Burn Hall Industrial Estate, Venture Road, Fleetwood, FY7 8RS.

The group consists of Lancashire Waste Recycling (Holdings) Limited and all of its subsidiaries.

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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Lancashire Waste Recycling (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 28 February 2025. 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.

The director has reviewed profit and loss and cashflow forecasts for a period of at least 12 months from the accounts signing date which demonstrates that the group and company can meet its debts as they fall due and will continue in operational existence for the foreseeable future.

Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

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.

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:

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.

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 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.

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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

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, 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.

There are no other financial assets in the group.

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.

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, including creditors and bank loans, 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.

There are no other financial liabilities in the group.

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

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.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from 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 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.

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.

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

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the group’s accounting policies, the director is 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.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

In determining the appropriate depreciation rates for the group's assets, management reviews the operating policies of the business and makes judgements as to the applicable useful economic lives of the assets, considering residual values.

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

Their aggregate remuneration comprised:

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

The corporation tax main rate was increased from 19% to 25% from 1 April 2023.

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

A transfer from Leasehold land and buildings to Freehold land and buildings has taken place in the year following the purchase of the site upon which one of the group companies operates.

Included in Freehold land and buildings is land of £5,087,884 (2024: £750,786) which is not depreciated.

Details of the company's subsidiaries at 28 February 2025 are as follows:

Each of the above subsidiaries have been included within the consolidation.

The long-term loans are secured by fixed and floating charges over the assets of the group and cross-company guarantees between certain group companies. One of the bank loans of the group is further secured by a personal guarantee from the director up to the sum of £480,000.

The group has a fixed rate loan with an interest rate of 10.10%. This loan is being repaid over 5 years to May 2026.

The group has a variable rate bank loan with an interest rate of 2.75% above base rate. This loan is being repaid over 15 years to August 2037.

The group has a variable rate bank loan with an interest rate of 2.45% above base rate. This loan is being repaid over 20 years to January 2045.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The finance leases are secured against the asset to which they relate.

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

As the group has not finalised its capital expenditure plans for the next financial year, it is not possible to clarify the unwinding of the net deferred tax liability over the next 12 months.

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.

The company is included within a cross-company guarantee arrangement whereby each of the group companies included in the agreement are joint and severally liable for the bank loans for two of the companies within the group. The group companies that have bank loans guaranteed are this company and Lancashire Waste Recycling Ltd.

The maximum possible liability that the company has guaranteed for is £4,624,373 (2024: £1,386,623), which includes a loan of £3,297,699 (2024: £Nil) within this company.

Amounts contracted for but not provided in the financial statements:

The financial statements include remuneration paid to key management personnel of £222,789.

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

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The group is controlled by Mr J Entwisle by virtue of his shareholding in the parent company.

A prior period adjustment has been processed to move a liability of the group from creditors payable after more than one year to creditors due within one year. Accordingly the comparative balance sheet was restated in line with this. There was no change to the net assets reported at the prior balance sheet date.