The directors present the strategic report for the year ended 31 March 2025.

Cheshire West Recycling Limited (CWR) is a council owned company operating under cooperative principles, with a clear social and environmental purpose.

Established in October 2019, CWR became operational on 30th March 2020, delivering refuse, recycling, and garden waste collection services on behalf of Cheshire West and Chester Council.

In October 2022, CWR expanded by establishing a Fleet Services division, providing vehicle maintenance services for both internal and external clients.

In October 2024, Cheshire West & Chester Council’s Cabinet approved the award of a new contract to CWR to continue delivering its waste collection services for a further eight years, with an option for a four-year extension commencing 1st April 2026.

During the same Cabinet meeting, approval was also granted for CWR to commence management of the Council’s Household Waste Recycling Centres from 1st April 2026, under an eight-year contract with a potential two-year extension. This additional confidence from the Council in CWR’s operational efficiency and service quality is projected to drive company growth of 20% from April 2026 onwards.

As of the approval date of the financial statements CWR employs over 330 staff, primarily borough residents and operates a fleet of more than 80 frontline commercial vehicles and provides waste collection services to every household across the borough at least once per week.

The ongoing international conflicts, including Russia’s invasion of Ukraine and the Hamas–Israel conflict, have created significant global economic pressures that continue to affect the company’s financial position and challenge the achievement of the strategic goals outlined in our annual Business Plan.

These circumstances have led to increased operational expenses and fluctuations in material income. In response, we remain committed to identifying and implementing effective mitigation strategies to manage these risks, ensuring the company maintains financial discipline and delivers on its operational commitments.

Furthermore, we are proactively investing in efficiency improvements and operational resilience. These efforts aim to safeguard our current activities while strengthening the company’s capacity to adapt and thrive amid ongoing global uncertainties.

Operational Statistics

Cheshire West Recycling (CWR) has continued to deliver outstanding performance metrics. The 'right first time' collection rate remained impressive at 99.96%. Missed collections rectified within the target timeframe saw an increase from 98.38% to 99.80%, reflecting a 1.42% increase. ‘Right first time’ bulky collections also rose from 99.89% to 99.98%, while container deliveries within target increased from 94.91% to 99.66% – a noteworthy 4.75% increase. CWR’s year-on-year improvements reflect its ongoing commitment to delivering a safe, efficient and people-centred service, with over 23.4 million collections successfully completed during 2024/25.

In terms of material management, CWR collected 55,922 tonnes of domestic waste (2024:45,749) , 9,255 tonnes of food waste (2024:7,787), and 26,877 tonnes of garden waste (2024: 25,208). Additionally, 12,606 tonnes of fibre mix (2024: 10,723)and 15,983 tonnes of container mix were processed (2024: 16,174). These figures demonstrate CWR's role in managing various waste streams and contributing to addressing the climate emergency.

Other significant achievements

CWR was delighted to gain national recognition for its innovative ‘Zero Agency’ initiative, which won the LARAC 2024 Award for ‘Best New Idea’. This initiative successfully replaced temporary agency staff with a permanent workforce, improving service quality, HSEQ compliance and operational efficiency, while also fostering a culture of growth and long-term employment.

In addition, CWR was proud to be named a finalist in the ‘Health & Safety Initiative of the Year’ category for our pioneering in-cab policy. This policy sets a new industry standard by requiring drivers to remain in their vehicles, significantly reducing rollaway and theft risks while ensuring effective oversight of safety-critical operations.

In 2024/25, we maintained our ISO 9001, 14001, and 45001 accreditations, which were also successfully extended to our fleet services, alongside CMS certification. These accreditations highlight our dedication to the highest standards of HSEQ, robust compliance, and the continual enhancement of our management systems.

Strengthening our commitment to the communities we serve, we installed defibrillators in 25 additional frontline vehicles, ensuring our entire fleet of 80 vehicles is now equipped with life-saving equipment. This, combined with our in-cab driver policy, ensures our workforce is always ready to support the community and respond quickly in the event of an emergency.

Over the past 12 months, we have also deepened our support for the armed forces community. By creating meaningful opportunities for veterans and reservists, and by welcoming ex-services personnel into our workforce, CWR was honoured to receive a Silver Award in the Employer Recognition Scheme (ERS) under the Armed Forces Covenant.

We also remain proud to serve as the Council’s maintenance partner for 20 gritters and 30 community transport vehicles, ensuring residents continue to have reliable access to essential services. Furthermore, we were delighted with Cheshire West and Chester Council’s decision to extend our current kerbside waste collection contract and to award CWR with the management of the borough’s Household Waste Recycling Centres (HWRCs). These new contracts, beginning in April 2026, will run for initial 8-year terms, with optional extensions of 4 years and 2 years respectively.

Social Value

In our second year of partnership with Thrive – an independent organisation with a reporting framework used in over 25 countries – CWR has continued to strengthen its commitment to delivering meaningful social value to support the development of stronger, more sustainable communities. Using the Thrive framework, which is measured in calendar years, we have been able to capture and maximise both the intrinsic and added value of our services.

Since our establishment in March 2020, we are proud to have created a cumulative social value total of £99M. This is made up of:

Fighting Climate Change: £34.3M

Wellbeing & Equal Opportunity: £5.7M

Tackling Economic Inequality: £59M

In the calendar year 2024 alone, we increased this figure by £22M, comprising £11.6M intrinsic value and £10.4M added value. This demonstrates our continued strong commitment to the community, the borough and the environment.

Other notable social value highlights from the 2024 calendar year include:

• Recycling of 67,000 tonnes of waste

• 812-tonne reduction in carbon emissions

• 92% of the workforce live in the borough

• £4 Million spent with companies within 30 miles of the borough

• £2.6 Million spent with companies within the borough

• 58 new starters offered permanent employment

• 42 individuals supported out of unemployment

• Delivery of 993 hours of staff development

• A Silver Award in the Armed Forces Employer Recognition Scheme

As we move forward through 2025, we will continue to ensure that maximising our social value impact is embedded at the heart of strategic and operational decision-making, aligning with our founding co-operative principles and the Borough’s strategic goals to contribute meaningfully to a brighter, more equitable future for all.

Financial Review

The Surplus Before Taxation of £189k is broadly explained as follows.

Prices for the sale of recovered materials improved significantly from 2023/24. The first half of 2024/25, saw prices significantly higher than budget, with a fall to broadly budget prices in the second half. This gave an upside of £315k. The company has continued to use an experienced material trader to ensure this revenue stream is maximised fully, the revenue achieved exceeded published indices.

The Company undertook a review of its material provisions, being ill health retirement and dilapidations, it was deemed necessary and appropriate to increase them by a combined sum of £275k.

In previous years additional funding has been received from the Shareholder when a pay rise in excess of the budget has been agreed. However this year additional funding has not been received and therefore the company bore the cost of a 2% pay rise above budget, amounting to £210k.

Controls around operational delivery through the Plan, Deliver, Review methodology remain effective. This has helped deliver further efficiency savings of around £165k and ensured that no material variances regarding headcount, overtime or absence have been seen in the year.

Delays to the recruitment of key Overhead positions led to a one off saving of £95k.

Through effective Procurement the company was able to benefit from price reductions, most notably in Fuel, resulting in savings of £50k.

The Cash position remains strong, with no loans required throughout the year. The company was therefore able to benefit from unbudgeted bank interest of £50k.

Since 2019, we have maintained a robust approach to risk management. Operational business continuity planning sits at the heart of everything we do and, as a minimum is reviewed quarterly. Our business continuity planning has been effective in maintaining service provision throughout a range of events from extreme weather to the impacts of the global conflicts being experienced.

The volatile prices for the sale of recovered materials remain a significant risk, efforts to mitigate this as far as possible through improving the quality of collected materials and processed materials continues.

Provisions have been increased and therefore risk decreased in the significant areas of ill health retirement and dilapidations.

At a strategic level our organisational risk registers are maintained and reported to our Board on a six-monthly basis.

The shareholder has written to the board of directors to confirm its ongoing support of the business.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The results for the year are set out on page 10. No dividends will be distributed for the year ended 31 March 2025 (2024: same).

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

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests. The company has also appointed two employee directors.

Information about matters of concern to employees is given through communication channels which include monthly newsletters, video boards, Vlogs, text media and ongoing PDR reviews which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

In accordance with the company's articles, a resolution proposing that Sedulo Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

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 company and of the surplus or deficit of the company for that period.

In preparing these financial statements, the directors are 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; and

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

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

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

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 company’s auditor 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 company’s auditor 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.

We have audited the financial statements of Cheshire West Recycling Limited (the 'company') for the year ended 31 March 2025 which comprise the income and expenditure account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 31 March 2025 and of its surplus 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's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Conclusions relating to going concern

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

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 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 directors 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 directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

In the light of the knowledge and understanding of the company and its 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:

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

• the 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 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 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 company or to cease operations, or have 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The primary responsibility for the prevention and detection of fraud rests with directors and management, and we cannot be expected to detect non-compliance with all laws and regulations.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.

We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiry of management and examination of relevant documentation, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls.

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

The income and expenditure account has been prepared on the basis that all operations are continuing operations.

The notes on pages 14 to 23 form part of these financial statements.

The notes on pages 14 to 23 form part of these financial statements.

The notes on pages 14 to 23 form part of these financial statements.

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

The notes on pages 14 to 23 form part of these financial statements.

Cheshire West Recycling Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Road Three Operations Hub, Road Three, Winsford, CW7 3PD.

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 as modified by the revaluation of certain assets. The principal accounting policies adopted are set out below.

This 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:

• 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: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel as well as transactions entered into by entities in the group.

The financial statements of the company are consolidated in the financial statements of Cheshire West and Chester Council. These consolidated financial statements are available from its registered office, 4 Civic Way, Ellesmere Port, CH65 OBE.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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 credited or charged to surplus or deficit.

At each reporting period end date, the company 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.

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 surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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 surplus or deficit, 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.

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 surplus or deficit, 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.

Financial assets, other than those held at fair value through surplus and deficit, 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 surplus or deficit.

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 surplus or deficit.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

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 surplus or deficit 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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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 company’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 when the company has 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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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.

Retirement benefits to employees are provided by the Local Government Pension Scheme (‘LGPS’). This is a defined benefit pension scheme and the assets are held separately from those of the company.

The LGPS is a funded multi-employer scheme. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected method and discounted at a rate equivalent to the current rate of return on high quality corporate bonds of equivalent term to the liabilities.

On 26 March 2020, the company, the scheme employer and the administering authority (Cheshire West and Chester Borough Council) entered into a ‘pass-through’ agreement. The effect of this agreement is to make the company responsible only for the primary contributions. Any surplus or deficit relating to the company’s share of the fund stays with the scheme employer.

Consequently, the LGPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the profit and loss account in the period to which they relate.

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 company’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.

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

Their aggregate remuneration comprised:

In addition to the amount charged/(credited) to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

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

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The LGPS is a funded defined benefit pension scheme with the assets held in separate trustee-administered funds. The employer contribution rate was 20.4% (2022: 20.4%).

As referred to in the accounting policies notes, the company entered into a ‘pass-through’ agreement with the scheme employer and the administering authority and as a result the LGPS is treated a defined contribution scheme for accounting purposes.

Total contributions payable to the scheme was £347,493 (2024: £347,483) and the amount outstanding and included in creditors was £33,060 (2024: £27,587).

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

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

The ultimate controlling party is deemed to be Cheshire West and Chester Borough Council.