ACCOUNTS - Final Accounts

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

Registered number: 09642904

EDWARDS RECYCLING HOLDINGS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

EDWARDS RECYCLING HOLDINGS LIMITED

COMPANY INFORMATION

Directors	S R Edwards
	B Edwards


Registered number	09642904


Registered office	Old Station Road
	Loughton
	Essex
	IG10 PL


Independent auditors	Haslers
	Chartered Accountants & Statutory Auditor
	Old Station Road
	Loughton
	Essex
	IG10 4PL

EDWARDS RECYCLING HOLDINGS LIMITED

CONTENTS

	Page
Group Strategic Report	1 - 2
Directors' Report	3
Directors' Responsibilities Statement	4
Independent Auditors' Report	5 - 8
Consolidated Statement of Comprehensive Income	9
Consolidated Balance Sheet	10
Company Balance Sheet	11
Consolidated Statement of Changes in Equity	12
Company Statement of Changes in Equity	13
Consolidated Statement of Cash Flows	14 - 15
Consolidated Analysis of Net Debt	16
Notes to the Financial Statements	17 - 33

EDWARDS RECYCLING HOLDINGS LIMITED

GROUP 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.

Edwards Recycling Limited - The principal activity of the company continued to be that of the provision of waste recycling services.

Edwards Waste Paper Limited - The principal activity of the company continued to be that of letting of property to a fellow group undertaking.

Edwards Recycling Holdings Limited - The principal activity of the company continued to be that of a holding company.

Business review

This is the holding company for its wholly owned subsidiaries Edwards Recycling Limited and Edwards Waste Paper Limited.

Financial overview

The Group reported an operating profit of £1,260,781 for 2025, compared to £8,054,709 in 2024. The prior year included a one-off gain of £6,489,936 from the sale of a tangible fixed asset within Edwards Waste Paper Limited. Excluding this exceptional item, the 2024 operating profit was £1,564,773, making the underlying year on-year performance broadly consistent. The 2025 result reflects an 18.9% increase in turnover, partially offset by a reduction in gross margin from 35.6% to 31.5%, driven by higher core business purchase costs.

The Directors are pleased with the performance of the Group 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 Group'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 Group 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 Group. 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.

Page 1

EDWARDS RECYCLING HOLDINGS LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

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.

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 HOLDINGS 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 a holding company.

Results and dividends

The profit for the year, after taxation, amounted to £765,951 (2024 - £7,626,810).

A dividend of £337,000 (2024 - £399,000) 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 and the Group'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 and the Group's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006, Haslers 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 HOLDINGS LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 31 MARCH 2025

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4

EDWARDS RECYCLING HOLDINGS LIMITED

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

Opinion

We have audited the financial statements of Edwards Recycling Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Consolidated Statement of Comprehensive Income, the , the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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 Group's and of the Parent Company's affairs as at 31 March 2025 and of the Group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Page 5

EDWARDS RECYCLING HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EDWARDS RECYCLING HOLDINGS 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 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.

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 Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the Parent Company financial statements are not in agreement with the accounting records and returns; or

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

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

Page 6

EDWARDS RECYCLING HOLDINGS LIMITED

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

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 Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent 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 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 Group 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.

Page 7

EDWARDS RECYCLING HOLDINGS LIMITED

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

• 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.

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 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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 HOLDINGS LIMITED

CONSOLIDATED 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		(10,139,940)	(8,018,427)
Gross profit		4,670,997	4,440,065
Administrative expenses		(3,410,216)	3,614,644
Operating profit	5	1,260,781	8,054,709
Interest receivable and similar income	9	6,476	8,277
Interest payable and similar expenses	10	(37,486)	(16,358)
Profit before taxation		1,229,771	8,046,628
Tax on profit	11	(463,820)	(419,818)
Profit for the financial year		765,951	7,626,810

Profit for the year attributable to:
Owners of the Parent Company	765,951	7,626,810
	765,951	7,626,810

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

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

The notes on pages 17 to 33 form part of these financial statements.

Page 9

EDWARDS RECYCLING HOLDINGS LIMITED

REGISTERED NUMBER: 09642904

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	14		18,726,363		15,726,739
			18,726,363		15,726,739
Current assets
Stocks	16	70,000		70,000
Debtors: amounts falling due within one year	17	2,040,083		3,019,498
Cash at bank and in hand	18	419,062		640,809
		2,529,145		3,730,307
Creditors: amounts falling due within one year	19	(2,442,735)		(2,274,069)
Net current assets			86,410		1,456,238
Total assets less current liabilities			18,812,773		17,182,977
Creditors: amounts falling due after more than one year	20		(824,442)		(87,417)
Provisions for liabilities
Deferred tax	24	(835,647)		(371,827)
			(835,647)		(371,827)
Net assets			17,152,684		16,723,733

Capital and reserves
Called up share capital	25	100	100
Profit and loss account	26	17,152,584	16,723,633
		17,152,684	16,723,733

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 17 to 33 form part of these financial statements.

Page 10

EDWARDS RECYCLING HOLDINGS LIMITED

REGISTERED NUMBER: 09642904

COMPANY BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Investments	15		102		102
			102		102
Current assets
Debtors: amounts falling due within one year	17	2,399,998		2,399,998
		2,399,998		2,399,998
Total assets less current liabilities			2,400,100		2,400,100


Net assets			2,400,100		2,400,100

Capital and reserves
Called up share capital	25		100		100
Profit and loss account brought forward		2,400,000		2,394,750
Profit for the year		337,000		404,250
Dividends paid		(337,000)		(399,000)
Profit and loss account carried forward			2,400,000		2,400,000
			2,400,100		2,400,100

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 17 to 33 form part of these financial statements.

Page 11

EDWARDS RECYCLING HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

	Called up share capital	Profit and loss account	Equity attributable to owners of Parent Company	Total equity
	£	£	£	£
At 1 April 2023	100	9,495,823	9,495,923	9,495,923
Comprehensive income for the year
Profit for the year	-	7,626,810	7,626,810	7,626,810
Contributions by and distributions to owners
Dividends: Equity capital	-	(399,000)	(399,000)	(399,000)

At 1 April 2024	100	16,723,633	16,723,733	16,723,733
Comprehensive income for the year
Profit for the year	-	765,951	765,951	765,951
Contributions by and distributions to owners
Dividends: Equity capital	-	(337,000)	(337,000)	(337,000)
At 31 March 2025	100	17,152,584	17,152,684	17,152,684

Page 12

EDWARDS RECYCLING HOLDINGS LIMITED

COMPANY 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 2023	100	2,394,750	2,394,850
Comprehensive income for the year
Profit for the year	-	404,250	404,250
Contributions by and distributions to owners
Dividends: Equity capital	-	(399,000)	(399,000)

At 1 April 2024	100	2,400,000	2,400,100
Comprehensive income for the year
Profit for the year	-	337,000	337,000
Contributions by and distributions to owners
Dividends: Equity capital	-	(337,000)	(337,000)
At 31 March 2025	100	2,400,000	2,400,100

Page 13

EDWARDS RECYCLING HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	765,951	7,626,810
Adjustments for:
Depreciation of tangible assets	724,476	580,121
Profit on disposal of tangible assets	(15,249)	(6,507,622)
Interest paid	37,486	16,358
Interest received	(6,476)	(8,277)
Taxation charge	463,820	419,818
Decrease/(increase) in stocks	-	(20,000)
Decrease in debtors	932,953	488,200
Increase/(decrease) in creditors	181,847	(308,905)
Corporation tax (paid)	(78,161)	(655,431)
Net cash generated from operating activities	3,006,647	1,631,072

Cash flows from investing activities
Purchase of tangible fixed assets	(3,748,850)	(8,944,247)
Sale of tangible fixed assets	40,000	7,592,523
Interest received	6,476	8,277
HP interest paid	(17,952)	(12,516)
Net cash from investing activities	(3,720,326)	(1,355,963)
Cash flows from financing activities
New secured loans	887,103	-
Repayment of loans	-	(795,085)
Repayment of/new finance leases	(38,637)	(61,187)
Dividends paid	(337,000)	(399,000)
Interest paid	(19,534)	(3,842)
Net cash used in financing activities	491,932	(1,259,114)

Page 14

EDWARDS RECYCLING HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

		2025	2024
		£	£


Net (decrease) in cash and cash equivalents	(221,747)	(984,005)
Cash and cash equivalents at beginning of year	640,809	1,624,814
Cash and cash equivalents at the end of year	419,062	640,809

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	419,062	640,809

The notes on pages 17 to 33 form part of these financial statements.

Page 15

EDWARDS RECYCLING HOLDINGS LIMITED

FOR THE YEAR ENDED 31 MARCH 2025


At 1 April 2024	Cash flows	At 31 March 2025
£	£	£

Cash at bank and in hand	640,809	(221,747)	419,062
Debt due after 1 year	-	(743,041)	(743,041)
Debt due within 1 year	(366)	(144,175)	(144,541)
Finance leases	(226,686)	38,637	(188,049)
	413,757	(1,070,326)	(656,569)

The notes on pages 17 to 33 form part of these financial statements.

Page 16

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

Edwards Recycling Holdings Limited is a private company, limited by shares, incorporated in England and Wales, United Kingdom, with a registration number 09642904. The registered office is Old Station Road, Loughton, Essex, England, IG10 4PL. The principal activity of the company continued to be that of a holding company. The principal activity of the company continued to be that of a holding company.

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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

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

The Group's functional and presentational currency is GBP.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group 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 Group 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.

Page 17

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.4

Interest income

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

2.5

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.

2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Page 18

EDWARDS RECYCLING HOLDINGS 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 and the Group operate and generate 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;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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, using the following methods.

Depreciation is provided on the following basis:

Freehold property	-	2%	straight line
Plant and machinery	-	25%	reducing basis & 10% straight line
Motor vehicles	-	25%	reducing basis
Fixtures and fittings	-	25%	reducing basis

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 19

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.11

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.

2.12

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.

2.13

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.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.14

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.

2.15

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.

2.16

Financial instruments

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

Page 20

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.16

Financial instruments (continued)

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 Group'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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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.

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.

Page 21

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.16

Financial instruments (continued)

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 Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.

2.17

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.	Judgements 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 (noting there are none considered to be critical to Edwards Recycling Holdings Limited):

Impairment of trade debtors (Edwards Recycling Limited)

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.

Fixed asset valuation (Edwards Waste Paper Limited)

The valuation 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 fixed asset in question.

Page 22

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

	Waste collection	14,810,937	12,458,492

All turnover arose within the United Kingdom.

Depreciation	724,476	580,121
Auditor remuneration	28,500	27,000
Defined contributions pension costs	38,981	42,267

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements	5,375	5,250
Fees payable to the Company's auditors in respect of:
The auditing of accounts of associates of the Company	33,075	32,250
Taxation compliance services	2,160	2,080

Page 23

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

7.	Employees
	Staff costs, including directors' remuneration, were as follows:

		Group	Group
		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:

	Group	Group	Company	Company
	2025	2024	2025	2024
	No.	No.	No.	No.

Employees	41	51	2	2

8.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	144,150	104,000
Group contributions to defined contribution pension schemes	2,510	2,789
	146,660	106,789

During the year no directors were remunerated through the holding company (2024 - £Nil).

During the year retirement benefits were accruing to 1 director (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

6,476

8,277

Page 24

EDWARDS RECYCLING HOLDINGS 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	3,842
Finance leases and hire purchase contracts	17,952	12,516
Other interest payable	13,933	-
	37,486	16,358

Corporation tax
Current tax on profits for the year	-	372,570

	Deferred tax
	Origination and reversal of timing differences	463,820	47,248


	Tax on profit	463,820	419,818

Page 25

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

11.Taxation (continued)

Profit on ordinary activities before tax

1,229,771

8,046,628

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	307,443	2,011,657
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	15,693	-
Capital allowances for year in excess of depreciation	(438,040)	(10,767)
Profit on disposal of fixed assets	(3,812)	(1,626,906)
Other timing differences leading to an increase (decrease) in taxation	463,820	47,248
Unrelieved tax losses carried forward	118,728	-
Other differences leading to an increase (decrease) in the tax charge	(12)	(1,414)
Total tax charge for the year	463,820	419,818

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

12.	Dividends
		2025	2024
		£	£

Dividends

337,000

399,000

13.	Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £337,000 (2024 - £404,250).

Page 26

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

14.	Tangible fixed assets
	Group

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost
At 1 April 2024	14,316,517	2,344,982	1,850,586	85,941	18,598,026
Additions	1,298,998	2,263,706	184,908	1,238	3,748,850
Disposals	-	-	(198,180)	-	(198,180)
At 31 March 2025	15,615,515	4,608,688	1,837,314	87,179	22,148,696
Depreciation
At 1 April 2024	319,471	1,482,209	1,005,723	63,883	2,871,286
Charge for the year on owned assets	96,091	366,134	128,738	5,560	596,523
Charge for the year on financed assets	-	9,288	118,665	-	127,953
Disposals	-	-	(173,429)	-	(173,429)
At 31 March 2025	415,562	1,857,631	1,079,697	69,443	3,422,333
Net book value
At 31 March 2025	15,199,953	2,751,057	757,617	17,736	18,726,363
At 31 March 2024	13,997,046	862,773	844,863	22,058	15,726,740

The net book value of land and buildings may be further analysed as follows:
	2025	2024
	£	£

	Freehold	15,199,954	13,997,046

Page 27

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

14.Tangible fixed assets (continued)

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

15.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost
	At 1 April 2024	102
	At 31 March 2025	102

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

	Edwards Waste Paper Limited	Old Station Road, Loughton, Essex, England, IG10 4PL	Ordinary	100%
	Edwards Recycling Limited	Old Station Road, Loughton, Essex, England, IG10 4PL	Ordinary	100%

Page 28

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

16.	Stocks
		Group	Group
		2025	2024
		£	£

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

The difference between purchase price or production cost of stocks and their replacement cost is not material.

17.

Debtors

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Trade debtors	1,046,026	1,179,927	-	-
Amounts owed by group undertakings	-	-	2,399,998	2,399,998
Other debtors	1,050	1,601,861	-	-
Prepayments and accrued income	993,007	237,710	-	-
	2,040,083	3,019,498	2,399,998	2,399,998

18.	Cash and cash equivalents
		Group	Group
		2025	2024
		£	£

	Cash at bank and in hand	419,062	640,809

Page 29

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

19.	Creditors: Amounts falling due within one year
		Group	Group
		2025	2024
		£	£

Bank loans	144,061	-
Trade creditors	1,773,678	1,547,203
Corporation tax	-	124,620
Other taxation and social security	60,491	216,734
Obligations under finance lease and hire purchase contracts	106,648	139,269
Other creditors	45,714	9,935
Accruals and deferred income	312,143	236,308
	2,442,735	2,274,069

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.

20.	Creditors: Amounts falling due after more than one year
		Group	Group
		2025	2024
		£	£

Bank loans	743,041	-
Net obligations under finance leases and hire purchase contracts	81,401	87,417
	824,442	87,417

Page 30

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

21.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group
		2025	2024
		£	£

Amounts falling due within one year
Bank loans	144,061	-
Amounts falling due 1-2 years
Bank loans	144,061	-
Amounts falling due 2-5 years
Bank loans	598,980	-
Amounts falling due after more than 5 years
	887,102	-

22.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2025	2024
		£	£

Within one year	106,648	139,269
Between 1-5 years	81,401	87,417
	188,049	226,686

Page 31

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

23.	Financial instruments
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Financial assets
Financial assets measured at fair value through profit or loss	419,062	640,809	-	-
Financial assets that are debt instruments measured at amortised cost	1,047,076	2,781,788	2,399,998	2,399,998

	Financial liabilities
	Financial liabilities measured at amortised cost	(2,131,535)	(1,793,446)	-	-

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

24.	Deferred taxation
	Group

		2025
		£

	At beginning of year	(371,827)
	Charged to profit or loss	(463,820)
	At end of year	(835,647)

Company



	At end of year	-

		Group	Group
		2025	2024
		£	£

Accelerated capital allowances

(835,647)

(371,827)

Page 32

EDWARDS RECYCLING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

25.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

100 (2024 - 100) Ordinary share shares of £1.00 each	100	100

26.

Reserves

Profit and loss account

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

27.	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).

28.	Related party transactions
	At the year-end the following amounts were due from / (to) other related parties:

		2025	2024
		£	£

Key management personnel

(588)

(1,757)

29.	Controlling party

The controlling party is Mrs B Edwards.

Page 33