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Registered number: 02640102 CWM ENVIRONMENTAL LTD. ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
CWM ENVIRONMENTAL LTD. COMPANY INFORMATION
Directors | Owen William Bowen
| Sean Paschal Benedict Gallagher
| David Gilbert
| Robert Dudley Thomas
| Ainsley Williams
| Daniel William John
| Simon Davies (appointed 28 January 2025)
Company secretary | Robert Dudley Thomas
Registered number | 02640102
Registered office | Head Office Nantycaws Recycling Centre
| Llanddarog Road
| Carmarthen
| SA32 8BG
Auditors | MHA
| MHA House
| Charter Court
| Phoenix Way
| Swansea Enterprise Park
| Swansea
| SA7 9FS
CWM ENVIRONMENTAL LTD. CONTENTS
| Page
Strategic Report | 1 - 2
Directors' Report | 3 - 4
Independent Auditor's Report | 5 - 8
Statement of Comprehensive Income | 9
Balance Sheet | 10
Statement of Changes in Equity | 11
Statement of Cash Flows | 12
Analysis of Net Debt | 13
Notes to the Financial Statements | 14 - 29
CWM ENVIRONMENTAL LTD. STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2025
Introduction
The directors present their strategic report for the year ended 31 March 2025. CWM Environmental Ltd. ("the Company") trades as a Waste Disposal Company. The Company holds waste management contracts with a number of Local Authorities (including Carmarthenshire County Council); it also oversees a commercial portfolio of kerbside services and provides bespoke material handling services to larger customers.
Business review
The results for the year ended 31 March 2025 and the preceding financial year ended 31 March 2024 are shown in the annexed financial statements. The trading performance in the year is in line with the directors' expectations. The external commercial environment is expected to remain competitive into 2025 due to market pressures. However, the directors are confident that a satisfactory level of activity will be sustained for the foreseeable future. The directors are confident that the company will continue to be profit-making in 2026.
Financial key performance indicators
The company's key performance indicators (KPI's) are summarised below:
| 2025 | 2024
Turnover | £16,969k | £15,280k
Gross Profit | £5,331k | £4,649k
Gross Margin | 31.4% | 30.4%
Net current assets | £60k | £2,894k
Net assets | £4,876k | £4,781k
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks can be summarised as follows: Competition
Potential impact | The market in which the company operates is subject to strong competition. The impact of such competition could impact on margins.
Mitigation | The company continues to invest heavily in its range of services. This, coupled with a focus on customer service, results in a high level of repeat business.
People
Potential impact | The business could be impacted by the loss of key individuals.
Mitigation | The business looks to increase staff engagement through (1) regular opportunities to give feedback and to influence future business developments and (2) training and progression opportunities.
Page 1
CWM ENVIRONMENTAL LTD. STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Compliance with laws and regulations
Potential impact | Non-compliance may result in financial penalties, a negative impact on the company's ability to operate effectively and reputational damage.
Mitigation | A robust regulatory framework ensures compliance with Environment Agency and other relevant requirements. Employees and contractors receive a rolling programme of training and guidance.
Other performance indicators
The Company's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk, interest rate risk and interest rate cash flow risk. The Company has in place an informal risk management programme that seeks to limit the adverse effects on the financial performance of the Company. Given the size of the Company, the directors have not delegated the responsibility for monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the Company's finance department. Price Risk The Company is exposed to commodity price risk. However, given the size of the Company's operations, the costs of managing the exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the Company's operations change in size or nature. The company has no exposure to equity securities price risk as it holds no listed or other equity instruments. Credit Risk The company's financial assets are cash and trade debtors. The Company's credit risk is primarily attributable to its trade debtors which are presented in the balance sheet, net of allowances for doubtful debts. The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. Liquidity Risk The Company has cash reserves to fund its operations and utilises short term finance as required. Interest Rate Cash Flow Risk The Company has interest bearing assets. Interest bearing assets include only cash balances, all of which earn interest at variables rates. This report was approved by the board on 19 December 2025 and signed on its behalf.
Owen William Bowen Director
Page 2
CWM ENVIRONMENTAL LTD. 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.
Directors' responsibilities statement
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 judgements and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Principal activity
The principal activity of the company in the year under review was that of a waste disposal company. Dividends No dividends will be distributed for the year ended 31 March 2025 (2024: £Nil).
Directors
The directors who served during the year were:
Owen William Bowen
Sean Paschal Benedict Gallagher
David Gilbert
Jason Wyn Jones (resigned 3 June 2024)
Robert Dudley Thomas
Ainsley Williams
Daniel William John
Simon Davies (appointed 28 January 2025)
Page 3
CWM ENVIRONMENTAL LTD. DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Matters covered in the Strategic Report
Included in the company's strategic report is a review of the business and a description of the principal risks and uncertainties facing the company.
Disclosure of information to auditor
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 auditor is 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 auditor is aware of that information.
Auditor
The auditor, MHA, previously traded through the legal entity Macintyre Hudson LLP. In response to regulatory changes, Macintyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP. The auditors, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 19 December 2025 and signed on its behalf.
Owen William Bowen Director
Page 4
CWM ENVIRONMENTAL LTD. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CWM ENVIRONMENTAL LTD.
Opinion
We have audited the financial statements of CWM ENVIRONMENTAL LTD. (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Analysis of Net Debt, the Balance Sheet, the Statement of Cash Flows, the 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 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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
CWM ENVIRONMENTAL LTD. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CWM ENVIRONMENTAL LTD. (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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 3, 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
CWM ENVIRONMENTAL LTD. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CWM ENVIRONMENTAL LTD. (CONTINUED)
Auditor's 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 Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud. - Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred. - Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. - Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness. - An assessment of the methodologies used in order to calculate estimates/provisions at the year end for evidence of bias. - We considered where applicable alternative estimation approaches including using (where available) actual post year end outcomes in order to provide assurance over the potential for material misstatement. - The accounting policy relating to estimates was checked to the financial reporting standards where necessary and confirmed to be appropriate. - Reviewing accounting estimates for bias. - Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud. - Discussions with management over any potential or suspected fraud. - Performing audit work over the recognition of revenue on deliveries of goods/income/services occurring at the year end to provide assurance over cut-off. - Performing substantive tests of detail over the completeness/existence of income within the financial system. 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 Auditor's Report. Page 7
CWM ENVIRONMENTAL LTD. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CWM ENVIRONMENTAL LTD. (CONTINUED)
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Brian Garland BA ACA (Senior Statutory Auditor) for and on behalf of MHA Statutory Auditor Swansea, United Kingdom 19 December 2025 MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542). Page 8
CWM ENVIRONMENTAL LTD. STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 16,968,583 | 15,279,932
Cost of sales |  | (11,637,228) | (10,630,487)
Gross profit |  | 5,331,355 | 4,649,445
Administrative expenses |  | (5,538,614) | (6,156,641)
Other operating income |  | 248,709 | 3,261,188
Operating profit | 5 | 41,450 | 1,753,992
Interest receivable and similar income | 8 | 134,714 | 60,516
Interest payable and similar expenses | 9 | (81,036) | (43,085)
Profit before tax |  | 95,128 | 1,771,423
Profit for the financial year |  | 95,128 | 1,771,423
Other comprehensive income for the year |  |  |
Total comprehensive income for the year |  | 95,128 | 1,771,423
The notes on pages 14 to 29 form part of these financial statements.
Page 9
CWM ENVIRONMENTAL LTD. REGISTERED NUMBER: 02640102 BALANCE SHEET AS AT 31 MARCH 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 11 |  | 15,990,351 |  | 8,943,915
|  |  | 15,990,351 |  | 8,943,915
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 13 | 2,665,395 |  | 2,015,696 |
Cash at bank and in hand | 14 | 3,586,543 |  | 4,441,935 |
|  | 6,251,938 |  | 6,457,631 |
Creditors: amounts falling due within one year | 15 | (6,192,409) |  | (3,563,588) |
Net current assets |  |  | 59,529 |  | 2,894,043
Total assets less current liabilities |  |  | 16,049,880 |  | 11,837,958
Creditors: amounts falling due after more than one year | 16 |  | (5,132,348) |  | (1,270,554)
Provisions for liabilities |  |  |  |  |
Other provisions | 18 | (6,041,182) |  | (5,786,182) |
|  |  | (6,041,182) |  | (5,786,182)
Net assets |  |  | 4,876,350 |  | 4,781,222
Capital and reserves |  |  |  |  |
Called up share capital | 19 |  | 329,002 |  | 329,002
Profit and loss account |  |  | 4,547,348 |  | 4,452,220
|  |  | 4,876,350 |  | 4,781,222
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 December 2025.
Owen William Bowen
Director
Page 10
CWM ENVIRONMENTAL LTD. 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 | 329,002 | 2,680,797 | 3,009,799
Profit for the year | - | 1,771,423 | 1,771,423
At 1 April 2024 | 329,002 | 4,452,220 | 4,781,222
Profit for the year | - | 95,128 | 95,128
At 31 March 2025 | 329,002 | 4,547,348 | 4,876,350
| The notes on pages 14 to 29 form part of these financial statements.
Page 11
CWM ENVIRONMENTAL LTD. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 95,128 | 1,771,423
Adjustments for: |  |
Depreciation of tangible assets | 955,702 | 981,902
Loss on disposal of tangible assets | (32,725) | (22,083)
Interest paid | 81,036 | 43,085
Interest received | (134,714) | (60,516)
(Increase)/decrease in debtors | (991,993) | 68,631
Increase in creditors | 1,812,352 | 787,645
Increase in provisions | 255,000 | 1,180,000
Net cash generated from operating activities | 2,039,786 | 4,750,087
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (8,045,482) | (1,030,725)
Sale of tangible fixed assets | 76,069 | (111,427)
New loans to group undertakings | - | (686,481)
Group undertakings loans repaid | - | (82,201)
Interest received | 134,714 | 60,516
HP interest paid | (48,468) | (33,588)
Net cash from investing activities | (7,883,167) | (1,883,906)
Cash flows from financing activities |  |
Repayment of/new finance leases | 472,485 | (91,245)
New loans from group companies | 4,548,073 | -
Interest paid | (32,568) | (9,497)
Net cash used in financing activities | 4,987,990 | (100,742)
Net (decrease)/increase in cash and cash equivalents | (855,391) | 2,765,439
Cash and cash equivalents at beginning of year | 4,441,935 | 1,676,495
Cash and cash equivalents at the end of year | 3,586,544 | 4,441,934
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 3,586,544 | 4,441,934
| 3,586,544 | 4,441,934
Page 12
CWM ENVIRONMENTAL LTD. ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 MARCH 2025
| At 1 April 2024 | Cash flows | New finance leases | At 31 March 2025
| £ | £ | £ | £
Cash at bank and in hand | 4,441,935 | (855,392) | - | 3,586,543
Finance leases | (525,775) | 397,672 | (870,157) | (998,260)
| 3,916,160 | (457,720) | (870,157) | 2,588,283
Page 13
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1. | General information
Cwm Environmental Ltd. is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found below.
| Registered number | 02640102
| Registered office | Head Office Nantycaws Recycling centre Llanddarog Road Carmarthen SA32 8BG
The presentation currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to nearest £. 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 judgement in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Going concern
The financial statements have been prepared on a going concern basis which assumes the company will continue in operational existence for the foreseeable future. In making their assessment, the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered facilities that are in place at the date of signing the report. The directors have prepared up-to-date forecasts and are confident they have taken all necessary steps to manage the Company's affairs. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis. Page 14
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.3 | Research and development
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
| 2.4 | Exemption from the requirement to prepare consolidated financial statement
The company has taken advantage of the exemption available under Section 405 of the Companies Act 2006 not to prepare consolidated financial statements on the grounds that the dormant subsidiary undertakings are together wholly immaterial for the purpose of giving a true and fair view of the financial performance and position of the company. Accordingly, these financial statements contain information about Cwm Environmental Ltd. as an individual company and do not contain consolidated financial information as the parent of a group.
| 2.5 | Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
| 2.6 | Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
| 2.7 | 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.
| 2.8 | Provisions
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. Page 15
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.9 | Employees benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
| 2.10 | Pension costs and other post-retirement benefits
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.
| 2.11 | Turnover
Turnover, which includes landfill tax but excludes value added tax and trade discounts, represents the invoiced value of services supplied. Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised: Sale of goods Revenue 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 revenue 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. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: - the amount of revenue can be measured reliably; - it is probable that the Company will receive the consideration due under the contract; - the stage of completion of the contract at the end of the reporting period can be measured reliably; and - the costs incurred and the costs to complete the contract can be measured reliably. Page 16
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.12 | Taxation
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 income 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.
| 2.13 | 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 straight-line method. Depreciation is provided on the following basis:
|  |  |  | Long-term leasehold property | - | 3 - 5%
|  |  |  | Plant and machinery | - | 10 - 25%
|  |  |  | Motor vehicles | - | 25%
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 17
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.14 | Assets under construction
Included within fixed assets are those currently under construction, specifically related to the development of new facilities for Cwm Environmental Ltd. All costs associated with the construction of these new facilities are capitalised in the financial year in which they are incurred. All assets in this category are not depreciated.
| 2.15 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets 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. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. 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. Page 18
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.15 | Financial instruments (continued)
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. 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 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. Page 19
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.16 | Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability. Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
| 2.17 | Provisions for landfill site - restoration and maintenance Departure from FRS 102
FRS 102 requires that, where the time value of money has a material effect on the amount to be paid, a provision should be discounted and recognised at the present value of the amount expected to be required to settle the obligation. The provision for expected costs of restoring and maintaining the and fill site has not been discounted. This provision has been determined in line with guidance provided by Natural Resource Wales, which specifically requires that the provision recognised is not discounted.
| 2.18 | Long-term contracts
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded for contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered. Bank interest accruing on capital borrowed to fund the production of long term contracts is carried forward within long term contracts balances. Page 20
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Key sources of estimation uncertainty The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. 3.1 Provision for expected costs of restoring and maintaining the landfill site The provision for the expected costs of restoring and maintaining the Company's landfill site after the end of its useful life in the Company's business is based on expected costs that the directors consider would discharge the Company's obligation for the restoration and maintenance of the landfill site. This assessment is based on guidance provided by Natural Resources Wales and the provision is made establishing a consumption factor which aims to provide for estimate future costs over the remaining operational life of the site. Aftercare costs, which form the bulk of the provision, are expressed as a rate per tonne and charged to the profit and loss account based on the annual tonnage input to the site. The provision is not discounted. 3.2 Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. 3.3 Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of the debtors and historical experience. Page 21
CWM ENVIRONMENTAL LTD. 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
|  |  |  |  | £ | £
| Provision of services | 16,553,165 | 14,918,602
| Sale of materials | 415,418 | 361,330
|  | 16,968,583 | 15,279,932
Analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 16,968,583 | 15,279,932
|  | 16,968,583 | 15,279,932
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Hire of plant and machinery | 195,344 | 109,885
| Depreciation - owned assets | 675,098 | 736,369
| Depreciation - assets on hire purchase contracts | 280,604 | 245,533
| Profit on disposal of fixed assets | (32,725) | (22,083)
| Auditors' remuneration | 25,500 | 25,000
| Auditors' remuneration for non audit work | 3,500 | 3,500
Page 22
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
6. | Employees
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 3,056,093 | 2,645,460
| Social security costs | 295,521 | 258,625
| Cost of defined contribution scheme | 197,529 | 180,836
|  | 3,549,143 | 3,084,921
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Operatives | 79 | 76
|  | Administration | 19 | 16
|  |  | 98 | 92
7. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 154,818 | 149,949
| Company contributions to defined contribution pension schemes | 19,302 | 18,815
|  | 174,120 | 168,764
| During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.
8. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Deposit account interest | 134,714 | 60,516
|  | 134,714 | 60,516
Page 23
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
9. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest payable | 32,568 | 9,497
| Finance leases and hire purchase contracts | 48,468 | 33,588
|  | 81,036 | 43,085
10. | Taxation
| Analysis of the tax charge No liability to UK corporation tax arose for the year ended 31 March 2025 nor for the year ended 31 March 2024.
| 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 | 95,128 | 1,771,424
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 23,782 | 442,856
| Effects of: |  |
| Capital allowances for year in excess of depreciation | (380,510) | (6,299)
| Utilisation of tax losses | (33,634) | (76,065)
| Non-taxable income | (73,864) | (761,588)
| Changes in provisions leading to an increase (decrease) in the tax charge | 64,255 | 401,071
| Other differences leading to an increase (decrease) in the tax charge | 399,971 | 25
| Total tax charge for the year | - | -
Page 24
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
11. | Tangible fixed assets
|  | Land and buildings | Assets under construction | Plant and machinery | Motor vehicles | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 April 2024 | 15,990,630 | 265,466 | 6,216,461 | 2,272,521 | 24,745,078
| Additions | 70,305 | 6,498,951 | 667,160 | 809,066 | 8,045,482
| Disposals | - | - | (192,013) | (476,781) | (668,794)
| At 31 March 2025 | 16,060,935 | 6,764,417 | 6,691,608 | 2,604,806 | 32,121,766
| Depreciation |  |  |  |  |
| At 1 April 2024 | 8,722,696 | - | 5,459,239 | 1,619,228 | 15,801,163
| Charge for the year | 289,463 | - | 377,027 | 289,212 | 955,702
| Disposals | - | - | (162,200) | (463,250) | (625,450)
| At 31 March 2025 | 9,012,159 | - | 5,674,066 | 1,445,190 | 16,131,415
| Net book value |  |  |  |  |
| At 31 March 2025 | 7,048,776 | 6,764,417 | 1,017,542 | 1,159,616 | 15,990,351
| At 31 March 2024 | 7,267,934 | 265,466 | 757,222 | 653,293 | 8,943,915
| The net book value of tangible fixed assets includes £1,060,061 (2024 - £607,515) in respect of assets held under hire purchase contracts.
Page 25
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
12. | Fixed asset investments
Fixed asset investments comprise equity shares held in the following non-publicly traded companies. The company holds 100% of the ordinary share capital of Pembrokeshire Recycling Company Limited, a company registered in England and Wales which was dormant throughout both the current and comparative periods. The company has net assets of £100 (2024: £100). Registered Office: Head Office Nantycaws Recycling Centre, Llanddarog Road, Carmarthen SA32 8BG. The company holds 100% of the ordinary share capital of Carmarthenshire Recycling Company Limited, a company registered in England and Wales which was dormant throughout both the current and comparative periods. The company has net assets of £1 (2024: £1). Registered Office: Head Office Nantycaws Recycling Centre, Llanddarog Road, Carmarthen SA32 8BG. Fair value of financial assets carried at amortised cost The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values. Investments held at NIL value at the balance sheet date.
13. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 521,542 | 313,051
| Amounts owed by group undertakings | 1,229,885 | 1,572,179
| Other debtors | 101,792 | -
| Prepayments and accrued income | 127,336 | 130,466
| VAT recoverable | 684,840 | -
|  | 2,665,395 | 2,015,696
14. | Cash and cash equivalents
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Cash at bank and in hand | 3,586,543 | 4,441,935
|  | 3,586,543 | 4,441,935
Page 26
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
15. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade creditors | 4,366,807 | 1,552,228
| Amounts owed to group undertakings | 527,908 | -
| Other taxation and social security | 76,472 | 159,332
| Obligations under finance lease and hire purchase contracts | 371,658 | 236,487
| Other creditors | 70,104 | 69,330
| Accruals and deferred income | 779,460 | 1,546,211
|  | 6,192,409 | 3,563,588
16. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Net obligations under finance leases and hire purchase contracts | 626,602 | 289,288
| Amounts owed to group undertakings | 3,920,678 | 242,809
| Deferred government grants | 585,068 | 738,457
|  | 5,132,348 | 1,270,554
| The following liabilities were secured:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Hire purchase contracts | 998,260 | 525,775
|  | 998,260 | 525,775
| Details of security provided:
Obligations under hire purchase contracts are secured over the assets to which they relate. Page 27
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
17. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Within one year | 371,658 | 236,487
| Between 1-5 years | 626,602 | 289,288
|  | 998,260 | 525,775
| Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18. | Provisions for liabilities
|  | Landfill site
|  | £
| At 1 April 2024 | 5,786,182
| Other movements | 255,000
| At 31 March 2025 | 6,041,182
| Provision for landfill site - restoration and maintenance The provision for expected costs for restoring and maintaining the Company's landfill site after the end of its useful life in the Company's business relates to the expected costs that the directors consider would discharge the Company's obligation for restoring and maintenance of the landfill site. In accordance with guidance provided by Natural Resource Wales, no account is taken of the inflation rate at the time of this provision being calculated and the provision has not been discounted to net present vales as there is no consistent and proven real rate of return on the funds. The provision for such costs has been based on the directors' best estimate of costs which will be borne by the Company, in conjunction with the guidance issued by Natural Resources Wales. The expected costs are subject to periodic review. As part of its permit obligations with Natural Resources Wales for operating the Nantycaws site, Cwm Environmental Ltd must have in place adequate financial provisions to discharge the obligations of the permit. Last year, Carmarthenshire County Council entered into a Local Authority Performance Deed with Natural Resources Wales for the purpose of securing the performance and observance of the provisions of the Site Permit. Cwm Environmental Limited have made provision of £1,582,889 in a joint aftercare account held with the Council with the balance to be only used to meet the specified aftercare costs.
Page 28
CWM ENVIRONMENTAL LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
19. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 329,002 (2024 - 329,002) Ordinary shares of £1.00 each | 329,002 | 329,002
20. | Capital commitments
| At 31 March 2025 the Company had capital commitments as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Contracted for but not provided in these financial statements | 8,368 | 231
|  | 8,368 | 231
21. | Pension commitments
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. £21,017 (2024 - £17,412) contributions were outstanding at the balance sheet date.
22. | Related party transactions
| Entities with control, joint control or significant influence over the entity
|  | 2025 | 2024
|  | £ | £
| Sales | 12,596,625 | 10,902,546
| Purchases | 129,926 | 85,944
| Amount due from related party | 1,229,885 | 1,572,179
| Amount due to related party | 4,448,586 | 242,809
| During the year, the company secured three new loans from a related party, totalling £4.28 million. £4 million of these loans is scheduled for repayment over a period of 120 months, while the remainder is to be repaid within 60 months. The average interest rate applicable to these loans is 5%.
23. | Ultimate Controlling Party
The Company is wholly owned by Carmarthenshire County Council and the directors recognise Carmarthenshire County Council as the ultimate controlling party by virtue of its controlling interest in the Company's share capital. Page 29