REGISTERED NUMBER: 04261412 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

SIMPSON ENVIRONMENTAL SERVICES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mr J Simpson

Mrs A Simpson

SECRETARY:

Mrs A Simpson

REGISTERED OFFICE:

55 Loudoun Road

St John's Wood

London

NW8 0DL

REGISTERED NUMBER:

04261412 (England and Wales)

AUDITORS:

MGR SD Limited

Chartered Accountants

Statutory Auditors

55 Loudoun Road

St John's Wood

London

NW8 0DL

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

REVIEW OF BUSINESS

The financial year ended 31 March 2025 was characterised by continued challenges in the local market environment. Although underlying demand for the company’s services remained consistent, overall construction and infrastructure activity within the region has declined over recent years. Despite these external pressures, turnover for the year remained broadly in line with the comparative period at £12.115m (2024: £12.951m). The gross tipping margin increased from 45.24% to 46.83% reflecting tighter cost control.

A prudent policy of retaining profits and reinvesting in plant, machinery and site infrastructure has ensured the business is well equipped to withstand variations in waste volumes and maintain high operational standards. This reinvestment also supports the company’s ability to respond effectively to new opportunities as market conditions develop. The balance sheet position remains strong.

The company uses a number of key financial performance indicators in assessing and driving performance. The key financial performance indicators used by the company are:

31.03.25

31.03.24

£'000

£'000

Sales

12,115

12,951

Gross tipping margin

46.83%

45.24%

Receivables days

41.86

27.63

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the company and the execution of the chosen strategy are subject to a number of risks.

Laws and regulations compliance

The company seeks to manage its compliance risk by ensuring a comprehensive approach is adopted with respect to understanding and complying with the various regulations of the waste industry. Significant investment has been made in training programmes and procedures to ensure the company's employees are fully equipped with the requisite skills to achieve the required standard.

Credit risk

The company seeks to manage the risk of customers defaulting through the use of stringent customer acceptance thresholds and credit limits. In addition a number of approaches are utilised including payment in advance where appropriate.

ON BEHALF OF THE BOARD:

Mr J Simpson - Director

22 December 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of recycling and disposal of waste.

DIVIDENDS

An interim dividend of £20 per share was paid on 31 March 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2025 will be £ 2,000 .

DIRECTORS

The directors during the year under review were:

Mr J Simpson

Mrs A Simpson

The beneficial interests of the directors holding office on 31 March 2025 in the issued share capital of the company were as follows:

31.3.25

1.4.24

Ordinary £1 shares

Mr J Simpson

55

55

Mrs A Simpson

45

45

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 profit or loss 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;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, MGR SD Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr J Simpson - Director

22 December 2025

Opinion

We have audited the financial statements of Simpson Environmental Services Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Directors.

We have nothing to report in respect of the following matters where 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are:

- Financial Reporting Standard 102;

- The Companies Act 2006;

- UK tax legislation;

- UK General Data Protection Regulation;

- UK employment legislation;

- UK environmental legislation; and

- UK health and safety legislation.

We assessed the risks of material misstatement in respect of fraud as follows:

- made enquiries of management and those charged with governance;

- held an audit team planning meeting to discuss areas that may be susceptible to misstatement;

- carried out analytical procedures to identity unusual or unexpected trends;

- reviewed the systems in place and considered the potential for override of controls; and

- considered related party relationships and transactions.

Based on the results of our risk assessment, we designed our audit procedures to identify non-compliance with such laws and regulations identified above. We also considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach and challenged key assumptions and judgments made by management.

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements may not be detected. Absolute assurance is not possible due to practical and legal limitations to obtaining audit evidence as well as time and cost constraints. Misstatements are considered material if they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Lydia Warde FCA (Senior Statutory Auditor)

for and on behalf of MGR SD Limited

Chartered Accountants

Statutory Auditors

55 Loudoun Road

St John's Wood

London

NW8 0DL

22 December 2025

TURNOVER

12,115,173

12,951,585

Cost of sales

(9,280,196

)

(11,104,175

)

GROSS PROFIT

2,834,977

1,847,410

Administrative expenses

(1,123,879

)

(904,960

)

1,711,098

942,450

Gain/loss on revaluation of investment property

-

137,367

OPERATING PROFIT

4

1,711,098

1,079,817

Interest receivable and similar income

279,630

219,762

1,990,728

1,299,579

Exceptional items

5

-

(964,097

)

PROFIT BEFORE TAXATION

1,990,728

335,482

Tax on profit

6

(503,070

)

(330,288

)

PROFIT FOR THE FINANCIAL YEAR

1,487,658

5,194

PROFIT FOR THE YEAR

1,487,658

5,194

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,487,658

5,194

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

4,049,618

4,843,545

Investment property

10

1,950,000

1,950,000

5,999,618

6,793,545

CURRENT ASSETS

Debtors

11

1,529,835

1,110,026

Cash at bank

17,354,658

15,516,074

18,884,493

16,626,100

CREDITORS

Amounts falling due within one year

12

(1,266,352

)

(1,095,613

)

NET CURRENT ASSETS

17,618,141

15,530,487

TOTAL ASSETS LESS CURRENT LIABILITIES

23,617,759

22,324,032

PROVISIONS FOR LIABILITIES

14

(984,686

)

(1,176,617

)

NET ASSETS

22,633,073

21,147,415

CAPITAL AND RESERVES

Called up share capital

15

100

100

Retained earnings

16

22,632,973

21,147,315

SHAREHOLDERS' FUNDS

22,633,073

21,147,415

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

Mr J Simpson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

100

21,143,939

21,144,039

Changes in equity

Dividends

-

(1,818

)

(1,818

)

Total comprehensive income

-

5,194

5,194

Balance at 31 March 2024

100

21,147,315

21,147,415

Changes in equity

Dividends

-

(2,000

)

(2,000

)

Total comprehensive income

-

1,487,658

1,487,658

Balance at 31 March 2025

100

22,632,973

22,633,073

Cash flows from operating activities

Cash generated from operations

1

1,957,013

1,990,166

Tax paid

(476,085

)

(660,042

)

Net cash from operating activities

1,480,928

1,330,124

Cash flows from investing activities

Purchase of tangible fixed assets

(1,507,325

)

(2,829,698

)

Sale of tangible fixed assets

1,599,675

1,557,050

Interest received

279,630

219,762

Net cash from investing activities

371,980

(1,052,886

)

Cash flows from financing activities

Amount introduced by directors

46

1,600,000

Amount withdrawn by directors

-

(2,917

)

Amounts loaned to related parties

(12,370

)

-

Equity dividends paid

(2,000

)

(1,818

)

Net cash from financing activities

(14,324

)

1,595,265

Increase in cash and cash equivalents

1,838,584

1,872,503

Cash and cash equivalents at beginning of year

2

15,516,074

13,643,571

Cash and cash equivalents at end of year

2

17,354,658

15,516,074

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.25

31.3.24

£

£

Profit before taxation

1,990,728

335,482

Depreciation charges

1,598,932

1,565,445

Profit on disposal of fixed assets

(897,356

)

(546,866

)

Gain on revaluation of fixed assets

-

(137,367

)

Finance income

(279,630

)

(219,762

)

2,412,674

996,932

(Increase)/decrease in trade and other debtors

(431,659

)

1,616,231

Decrease in trade and other creditors

(24,002

)

(622,997

)

Cash generated from operations

1,957,013

1,990,166

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

17,354,658

15,516,074

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

15,516,074

13,643,571

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

15,516,074

1,838,584

17,354,658

15,516,074

1,838,584

17,354,658

Total

15,516,074

1,838,584

17,354,658

1.	STATUTORY INFORMATION

Simpson Environmental Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Acquired goodwill is written off in equal annual instalments according to the anticipated period of commercial benefit of between four and ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

-

4% on cost

Plant and machinery

-

20% on cost and 10% on cost

Fixtures and fittings

-

20% on cost and 10% on cost

Motor vehicles

-

25% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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.

3.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

1,440,666

1,551,859

Social security costs

144,886

154,762

Other pension costs

38,308

42,233

1,623,860

1,748,854

The average number of employees during the year was as follows:

31.3.25

31.3.24

Transport and yard operatives

35

31

Administration and management

7

7

42

38

31.3.25

31.3.24

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.3.25

31.3.24

£

£

Other operating leases

333,243

175,000

Depreciation - owned assets

1,598,933

1,565,445

Profit on disposal of fixed assets

(897,356

)

(546,866

)

Auditors' remuneration

17,000

18,000

5.	EXCEPTIONAL ITEMS

31.3.25

31.3.24

£

£

Related party debtor written

off

-

964,097

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.3.25

31.3.24

£

£

Current tax:

UK corporation tax

695,000

225,780

Deferred tax

(191,930

)

104,508

Tax on profit

503,070

330,288

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.25

31.3.24

£

£

Profit before tax

1,990,728

335,482

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

497,682

83,871

Effects of:

Expenses not deductible for tax purposes

1,028

241,024

Income not taxable for tax purposes

(213,980

)

(171,058

)

Depreciation in excess of capital allowances

137,921

70,403

Other taxable income

-

1,250

Other tax adjustments

(739

)

289

Deferred tax adjustment

(191,930

)

104,509

Balancing charge

273,088

-

Total tax charge

503,070

330,288

7.

DIVIDENDS

31.3.25

31.3.24

£

£

Ordinary shares of £1 each

Interim

2,000

1,818

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2024

and 31 March 2025

389,000

AMORTISATION

At 1 April 2024

and 31 March 2025

389,000

NET BOOK VALUE

At 31 March 2025

-

At 31 March 2024

-

9.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 April 2024

510,121

6,019,285

32,779

3,746,868

10,309,053

Additions

-

19,109

1,406

1,486,810

1,507,325

Disposals

-

(207,175

)

-

(1,086,801

)

(1,293,976

)

At 31 March 2025

510,121

5,831,219

34,185

4,146,877

10,522,402

DEPRECIATION

At 1 April 2024

332,537

3,109,372

14,380

2,009,219

5,465,508

Charge for year

20,403

881,227

3,421

693,882

1,598,933

Eliminated on disposal

-

(41,435

)

-

(550,222

)

(591,657

)

At 31 March 2025

352,940

3,949,164

17,801

2,152,879

6,472,784

NET BOOK VALUE

At 31 March 2025

157,181

1,882,055

16,384

1,993,998

4,049,618

At 31 March 2024

177,584

2,909,913

18,399

1,737,649

4,843,545

10.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2024

and 31 March 2025

1,950,000

NET BOOK VALUE

At 31 March 2025

1,950,000

At 31 March 2024

1,950,000

Fair value at 31 March 2025 is represented by:

£

Valuation in 2024

137,367

Cost

1,812,633

1,950,000

If investment property had not been revalued it would have been included at the following historical cost:

31.3.25

31.3.24

£

£

Cost

1,812,633

1,812,633

Investment property was valued on an open market value basis on 31 March 2025 by the directors .