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Registered number: 06662182









EDWARDS RECYCLING LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

 
EDWARDS RECYCLING LIMITED
 
 
COMPANY INFORMATION


Directors
S R Edwards 
B Edwards 




Company secretary
B Edwards



Registered number
06662182



Registered office
Old Station Road

Loughton

Essex

IG10 4PL




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
EDWARDS RECYCLING LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3
Directors' Responsibilities Statement
 
4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 26

 
EDWARDS RECYCLING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025

Introduction
 
This is a balanced and comprehensive review of the performance of our business during the year and its position at the year end consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

The principal activity of the company continued to be that of the provision of waste recycling services.

Business review
 
Financial overview

The Company achieved an operating profit of £1,234,391, comparing favourably with the 2024 comparative of £1,061,038. This performance has resulted from the 18.9% turnover growth achieved in 2025 and an decrease in gross margin from 35.6% in 2024 to 31.5% in 2025 relating to increased core business purchases.

The Directors are pleased with the performance of the business and expect a similar level of performance for the year ahead subject to influence of external economic factors.

Turnover

Management consider the results for the year to be in line with the overall performance of the market.

Principal risks and uncertainties
 
The management of the business and the nature of the Company's strategy are subject to a number of risks. Management have set out below the principal risks facing the business. Where possible, processes are in place to monitor and mitigate such risks.

Market Prices - The success of the business is reliant on demand within the sector to ensure market prices remain consistent which reflects changes in margins. An economic downturn, resulting in reduction of demand, will have an impact on the turnover achieved by the Company. In response to this risk, management aim to keep abreast of economic downturn, marketing and pricing strategies are modified to reflect the new market conditions.

Cashflow Management - To maintain financial resilience and support strategic objectives, management implement cash flow forecasting and monitoring processes, optimize working capital through efficient receivables and payables management, and enforce cost-control measures to preserve liquidity.

Uselife Life & Effectiveness of Machinery - To ensure long-term reliability and cost efficiency, management have structured maintenance programmes focused on preventive and predictive practices, supported by regular performance monitoring and timely repairs. Operational effectiveness will be enhanced through staff training, adherence to manufacturer guidelines, and investment in technology upgrades where necessary. These measures will extend asset lifespan, minimize downtime, and optimize productivity across all operations.

Financial key performance indicators
 
The financial key performance indicators for the business are Gross Profit Margin and Net Profit Margin. Targets are set to improve Gross Profit through cost-efficient processing, while Net Profit will be enhanced by controlling overheads and leveraging economies of scale. 

Page 1

 
EDWARDS RECYCLING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025

Other key performance indicators
 
The other key performance indicators are  Sales Turnaround Time, Customer Retention Rate and Operational Downtime. These KPIs will provide a balanced view of financial, operational, and customer performance, supporting continuous improvement and strategic growth.


This report was approved by the board on 24 December 2025 and signed on its behalf.





................................................
S R Edwards
Director
Page 2

 
EDWARDS RECYCLING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025

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

Principal activity

The principal activity of the company continued to be that of the provision of waste recycling services.

Results and dividends

The profit for the year, after taxation, amounted to £739,540 (2024 - £699,996).

A dividend of £337,000 (2024 - £356,000) has been paid in the year. 

Directors

The directors who served during the year were:

S R Edwards 
B Edwards 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006Haslers will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 24 December 2025 and signed on its behalf.
 





................................................
S R Edwards
Director

Page 3

 
EDWARDS RECYCLING LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 4

 
EDWARDS RECYCLING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EDWARDS RECYCLING LIMITED
 

Opinion


We have audited the financial statements of Edwards Recycling Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
EDWARDS RECYCLING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EDWARDS RECYCLING LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 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.


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 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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.


Page 6

 
EDWARDS RECYCLING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EDWARDS RECYCLING LIMITED (CONTINUED)


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 an Auditors' 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:

Based on our understanding of the legal and regulatory frameworks that are applicable to the entity we determined that the most significant are those that had a direct effect on the determination of material amounts and disclosures in the financial statements.

We obtained an understanding of how the entity are complying with those legal and regulatory frameworks by making enquiries of the management. We corroborated our enquiries through our review of documentation generated and assessing the extent of compliance with the relevant laws and regulations.

We discussed among the audit engagement team regarding the opportunities, including management override of controls, that may exist within the entity for fraud and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for material misstatements due to fraud are in the following areas, and our specific procedures performed to address these are described below:

The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to potential weaknesses in the procurement system, control over banking and the existence of inappropriate journal entries to manipulate performance were also identified.

Procedures performed to address these were as follows:

• Identifying and assessing the effectiveness of controls management has in place to prevent and detect fraud, including known of suspected instances or non-compliance with laws and regulations and fraud.

• Understanding how the management considered and addressed the potential for override of controlsor other inappropriate influence over the financial reporting process.

• Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud.

• Assessing the appropriateness of accounting estimates and challenging any significant assumptions or judgements made by management.

• Incorporating testing of manual journal entires that were posted throughout the year. In particular we focused on material journal entrties, journal entries posted with unusual account combinations, journal entries crediting turnover or cash, and journal entries with specific defined descriptions. These were scrutinised for evidence of unusual entries.

• Evaluating the business rationale of any significant transactions that are unusual or outside of the normal course of business.
Page 7

 
EDWARDS RECYCLING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EDWARDS RECYCLING LIMITED (CONTINUED)




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 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 Auditors' 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 2006Our 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 Auditors' 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.





Matthew Wells ACA (Senior Statutory Auditor)
for and on behalf of
Haslers
Chartered Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

 
Date: 
24 December 2025
Page 8

 
EDWARDS RECYCLING LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
Note
£
£

  

Turnover
 4 
14,810,937
12,458,492

Cost of sales
  
(10,139,944)
(8,018,427)

Gross profit
  
4,670,993
4,440,065

Administrative expenses
  
(3,436,602)
(3,379,027)

Operating profit
 5 
1,234,391
1,061,038

Interest receivable and similar income
 9 
6,455
2,801

Interest payable and similar expenses
 10 
(37,486)
(16,104)

Profit before tax
  
1,203,360
1,047,735

Tax on profit
 11 
(463,820)
(347,739)

Profit for the financial year
  
739,540
699,996

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 12 to 26 form part of these financial statements.

Page 9

 
EDWARDS RECYCLING LIMITED
REGISTERED NUMBER: 06662182

BALANCE SHEET
AS AT 31 MARCH 2025

2025
2024
Note
£
£

Fixed assets
  

Tangible assets
 13 
3,526,410
1,729,694

  
3,526,410
1,729,694

Current assets
  

Stocks
 14 
70,000
70,000

Debtors: amounts falling due within one year
 15 
3,852,203
4,320,381

Cash at bank and in hand
 16 
214,571
570,577

  
4,136,774
4,960,958

Creditors: amounts falling due within one year
 17 
(2,258,019)
(2,145,831)

Net current assets
  
 
 
1,878,755
 
 
2,815,127

Total assets less current liabilities
  
5,405,165
4,544,821

Creditors: amounts falling due after more than one year
 18 
(81,401)
(87,417)

Provisions for liabilities
  

Deferred tax
 21 
(835,647)
(371,827)

  
 
 
(835,647)
 
 
(371,827)

Net assets
  
4,488,117
4,085,577


Capital and reserves
  

Called up share capital 
 22 
2
2

Profit and loss account
 23 
4,488,115
4,085,575

  
4,488,117
4,085,577


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 December 2025.




................................................
S R Edwards
Director

The notes on pages 12 to 26 form part of these financial statements.

Page 10

 
EDWARDS RECYCLING LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 April 2024
2
4,085,575
4,085,577


Comprehensive income for the year

Profit for the year
-
739,540
739,540


Contributions by and distributions to owners

Dividends: Equity capital
-
(337,000)
(337,000)


At 31 March 2025
2
4,488,115
4,488,117



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 April 2023
2
3,741,579
3,741,581


Comprehensive income for the year

Profit for the year
-
699,996
699,996


Contributions by and distributions to owners

Dividends: Equity capital
-
(356,000)
(356,000)


At 31 March 2024
2
4,085,575
4,085,577


The notes on pages 12 to 26 form part of these financial statements.

Page 11

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

1.


General information

Edwards Recycling Limited is a private company, limited by shares, incorporated in England and Wales, United Kingdom, with a registration number 06662182. The registered office is Old Station Road, Loughton, Essex, IG10 4PL. The principal activity of the company continued to be that of the provision of waste recycling services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The Company's financial statements are rounded to the nearest Pound. 

The Company's functional and presentational currency is GBP.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Edwards Recycling Holdings Limited as at 31 March 2025 and these financial statements may be obtained from their registered office at Old Station Road, Loughton, Essex, England, IG10 4PL.

Page 12

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance and straight line basis.

Depreciation is provided on the following basis:

Plant and machinery
-
25% reducing balance & 10% straight line
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 14

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.
Page 15

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.15

Financial instruments

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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



 
Page 16

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)


2.15
Financial instruments (continued)

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The director's judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Details of the company's significant accounting judgements and critical accounting estimates include:

Impairment of trade debtors

The recoverability has been assessed at the period end and up until the date of signing these financial statements. Management have based the decision to provide for any amounts based on their judgement of all the available information and their expectation of the specific nature of the trade debtor in question.

Page 17

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

4.


Turnover

An analysis of turnover by class of business is as follows:


2025
2024
£
£

Turnover
14,810,937
12,458,492


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Depreciation
628,385
488,357

Auditor remuneration
19,500
18,500

Other operating lease rentals
130,000
590,000


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2025
2024
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
19,500
18,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 18

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2025
2024
£
£

Wages and salaries
1,760,889
1,929,239

Social security costs
192,981
214,985

Cost of defined contribution scheme
38,981
42,267

1,992,851
2,186,491


The average monthly number of employees, including the directors, during the year was as follows:


        2025
        2024
            No.
            No.







Employees
41
51


8.


Directors' remuneration

2025
2024
£
£

Directors' emoluments
144,150
132,908

Company contributions to defined contribution pension schemes
2,510
2,789

146,660
135,697


During the year retirement benefits were accruing to 1 directors (2024 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £78,000 (2024 - £78,000)

The value of the Company's cotributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £2,510 (2024 - £2,789).


9.


Interest receivable

2025
2024
£
£


Other interest receivable
6,455
2,801

Page 19

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

10.


Interest payable and similar expenses

2025
2024
£
£


Bank interest payable
5,601
3,588

Finance leases and hire purchase contracts
17,952
12,516

Other interest payable
13,933
-

37,486
16,104


11.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
-
247,950


Deferred tax


Origination and reversal of timing differences
463,820
99,789


463,820
347,739
Page 20

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2024 - the same as) the standard rate of corporation tax in the UK of 25% (2024 - 25%) as set out below:

2025
2024
£
£


Profit on ordinary activities before tax
1,203,360
1,047,734


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
300,840
261,934

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
15,693
-

Capital allowances for year in excess of depreciation
(460,007)
(9,460)

Profit on disposal of fixed assets
(3,812)
(4,422)

Deferred tax
463,820
99,789

Unrelieved tax losses carried forward
147,297
-

Other differences leading to an increase (decrease) in the tax charge
(11)
(102)

Total tax charge for the year
463,820
347,739


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2025
2024
£
£


Dividends
337,000
356,000

Page 21

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

13.


Tangible fixed assets


Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost 


At 1 April 2024
2,344,982
1,850,586
85,941
4,281,509


Additions
2,263,706
184,908
1,238
2,449,852


Disposals
-
(198,180)
-
(198,180)



At 31 March 2025

4,608,688
1,837,314
87,179
6,533,181



Depreciation


At 1 April 2024
1,482,209
1,005,723
63,883
2,551,815


Charge for the year on owned assets
366,134
128,738
5,560
500,432


Charge for the year on financed assets
9,288
118,665
-
127,953


Disposals
-
(173,429)
-
(173,429)



At 31 March 2025

1,857,631
1,079,697
69,443
3,006,771



Net book value



At 31 March 2025
2,751,057
757,617
17,736
3,526,410



At 31 March 2024
862,773
844,863
22,058
1,729,694

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2025
2024
£
£



Plant and machinery
27,864
37,152

Motor vehicles
371,403
305,160

399,267
342,312


14.


Stocks

2025
2024
£
£

Finished goods and goods for resale
70,000
70,000


Page 22

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

15.


Debtors

2025
2024
£
£


Trade debtors
1,046,026
1,179,928

Amounts owed by group undertakings
1,812,119
1,300,883

Other debtors
1,050
50,880

Prepayments and accrued income
993,008
1,788,690

3,852,203
4,320,381



16.


Cash and cash equivalents

2025
2024
£
£

Cash at bank and in hand
214,571
570,577



17.


Creditors: Amounts falling due within one year

2025
2024
£
£

Trade creditors
1,773,678
1,547,203

Other taxation and social security
60,491
216,734

Obligations under finance lease and hire purchase contracts
106,648
139,269

Other creditors
8,308
9,567

Accruals and deferred income
308,894
233,058

2,258,019
2,145,831


There is continuing security for the payment and discharge of secured liabilities by a cross guarantee agreement with Barclays Bank whereby there is a fixed charge over property, plant and equipment, share capital and stock. There is also a floating charge over any current or future assets the business owns which is not covered by the fixed charge. Security has also been provided by fellow subsidiary companies included within the Group.


18.


Creditors: Amounts falling due after more than one year

2025
2024
£
£

Net obligations under finance leases and hire purchase contracts
81,401
87,417


Page 23

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2025
2024
£
£


Within one year
106,648
139,269

Between 1-5 years
81,401
87,417

188,049
226,686


20.


Financial instruments

2025
2024
£
£

Financial assets


Financial assets measured at fair value through profit or loss
214,571
570,577

Financial assets that are debt instruments measured at amortised cost
3,225,973
2,531,691


Financial liabilities


Financial liabilities measured at amortised cost
(2,090,658)
(1,789,828)


Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.


Financial assets that are debt instruments measured at amortised cost comparise trade debtors, amounts owed by group undertakings and other debtors.


Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals.

Page 24

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

21.


Deferred taxation




2025


£






At beginning of year
(371,827)


Charged to profit or loss
(463,820)



At end of year
(835,647)

The provision for deferred taxation is made up as follows:

2025
2024
£
£


Accelerated capital allowances
(835,647)
(371,827)


22.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



2 (2024 - 2) Ordinary shares of £1.00 each
2
2



23.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.


24.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £38,981 (2024 - £42,267). At 31 March 2025, the balance owing to the pension scheme was £8,086 (2024 - £8,178).

Page 25

 
EDWARDS RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

25.


Commitments under operating leases

At 31 March 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£


Not later than 1 year
130,000
590,000


26.


Related party transactions

The Company has taken advantage of the exemptions conferred in FRS 102 Section 33 from the requirement to disclose transactions with wholly owned group companies.


27.


Controlling party

The immediate and ultimate parent company is Edwards Recycling Holdings Limited, a company registered in England and Wales at Old Station Road, Loughton, Essex, IG10 4PL.

The ultimate controlling party is Mrs B Edwards.
 
Page 26