The directors present the strategic report for the year ended 30 September 2025.

The waste management market

The waste management sector continues to provide an essential environmental service in the UK by dealing with the waste produced by society; whilst having a major impact on the nation’s economic prosperity, as well as the nation’s commercial, political and social systems.

Throughout 2025, the focus for the sector has remained on the Government’s programme of waste reforms. The UK Government has previously said its goal is for a “circular economy approach”, which retains products and materials in circulation for as long as possible and at their highest value.

One key focus for 2025 has been preparation and implementation of Simpler Recycling legislation, which first came into effect on 31 March 2025. Businesses and relevant non-domestic premises in England now have to have arrangements in place for the collection of the core recyclable waste streams, with the exception of garden waste (glass, metal, plastic, paper and card, and food waste). Micro-firms (businesses with fewer than 10 full-time equivalent employees) are temporarily exempt from this requirement. They have until 31 March 2027 to arrange for recycling of core recyclable waste streams.

Simpler Recycling laws are designed to make recycling more accessible and effective, as the UK Government aims to achieve a 65% recycling rate of municipal waste by 2035. The new regulations are expected to streamline the recycling process, reduce contamination, and improve the quality of recyclable materials. By making recycling easier and more straightforward, these changes are expected to significantly boost recycling rates, moving the UK closer to its ambitious 2035 target.

In 2024, the Government confirmed its commitment to delivering a Deposit Return Scheme (DRS) and this was formally approved on 21st January 2025 to include drinks containers made of polyethylene terephthalate (PET), steel, and aluminium cans. This legislation covers England and Northern Ireland only and is set to go live in October 2027.

Another area of focus for the industry in 2025 was the shocking cases of waste crime, such as the illegal mass dumping’s of waste in Oxfordshire and Bristol.

In an effort to help tackle this, the UK Government plan to implement mandatory digital waste tracking legislation, requiring waste movements to be recorded digitally. This is set to begin rolling out from October 2026.

The new Digital Waste Tracking Service aims to improve transparency and reporting, reduce illegal waste activity, and support aspirations for a circular economy.

The Digital Waste Tracking service will replace existing fragmented systems and paper-based record-keeping such as waste transfer notes and hazardous waste consignment notes. The goal is to create a unified, transparent, and digital system for tracking waste from its point of origin to its final destination.

At Grundon we firmly believe the commitment and prioritisation to a more circular economy, underpinned by the upcoming implementation of major waste reforms, makes this an exciting time for the UK waste sector.

With an outstanding team, a clear strategic focus and a strong balance sheet, we believe that Grundon are ideally placed to capitalise on the opportunities the new policies will bring.

The Grundon way

The business is focused on helping its customers to minimise both the financial and environmental impacts of their waste. Our vision is to be integral to our customers’ activities, aspirations, development and success.

Grundon is a responsible producer of recycled, recovered and natural resources. We deliver effective and efficient management for all waste categories, energy generation and the supply of aggregates.                                                

We provide customers access to the best technical and environmental options, offering long-term value through expert, collaborative and effective resource management. Our customers benefit from services including collection, treatment and disposal of all major waste streams, and we recover valuable resources for recycling and use residual waste as a fuel to generate renewable energy.                                                 

We do this through employing the latest state-of-the-art proven technologies, providing sustainable and cost-effective solutions to maximise the diversion of waste from landfill.                                                

We own and operate an extensive fleet of varied and purpose-built collection vehicles, in addition to a range of industry-leading treatment facilities. These include transfer stations for both hazardous and non-hazardous waste, Materials Recovery Facilities (MRFs), alternative treatment for clinical waste at our high temperature incinerator for clinical, medical and hazardous waste materials, a road sweepings recycling facility, an aerosol recycling facility, landfill operations and our joint venture investment in the Lakeside Energy from Waste (EfW) facility.                                                

As a family-owned business and the largest privately-owned waste management company in the UK, we are proud of our heritage, our reputation for innovation and the expertise and knowledge of our people.                                                 

Our mission is to deliver a first class customer experience, whilst maintaining environmental integrity and providing a safe and healthy workplace. We achieve this through continuous improvement, development and investment in our people and facilities.

Environmental risk

The Group’s operations naturally expose it to environmental risks, including pollution events, odour emissions, leachate or surface‑water contamination and breaches of permitted waste volumes, any of which could lead to regulatory non‑compliance. These risks are mitigated through continuous monitoring by a dedicated compliance team, regular internal inspections, mandatory environmental training for employees, routine engagement with regulators and external audits. The Group has also invested in improved technologies and strengthened operational controls to reduce the likelihood and impact of incidents, and it maintains externally accredited management systems, including ISO 14001 for environmental management and ISO 50001 for energy management. Together, these measures support ongoing improvements in environmental performance and reinforce the Group’s commitment to responsible operations.

Health and safety risk

Owing to the nature of the processes and equipment operated, the company naturally has a significant level of health and safety risk. To mitigate this risk, the company have a Health & Safety department, whose role is to monitor and improve performance and promote health and safety awareness through training, employee engagement and the distribution of information. The company’s health and safety management system is externally audited and accredited to the OHSAS18001 standard.

Liquidity risk

The Group's exposure to liquidity and cash flow risks are addressed by reference to the company's budgets, medium term plans and banking arrangements. The directors are satisfied that the company has sufficient resources to continue operations for the foreseeable future. During the year, the group utilised its overdraft facility to support short‑term liquidity requirements following an acquisition completed shortly after the year end, and the group has subsequently increased the capacity of its banking facilities to provide additional funding flexibility. The group is also exposed to other risks and uncertainties, which the directors continue to monitor and guard against. The group has considerable financial resources available to it, together with long term contracts with a large number of customers and suppliers across different geographic areas and industries. As a consequence, the directors believe that the company is well placed to manage its business risks successfully.

Credit risk

The Group is exposed to credit risk arising from the non‑payment of both trade and other debtors. To mitigate this risk, the Group maintains robust credit control procedures for its trade customers and actively manages outstanding balances through a dedicated credit control team. The directors closely monitor overdue debts and maintain regular correspondence with both trade and non‑trade debtors to ensure timely recovery of amounts due.

Operational performance and highlights 2025

Throughout the year, we have continued to press on with our ambitious growth plans. The development of the 13 acre site in Avonmouth has progressed well throughout 2025, with a further £15 million spent.

Elsewhere, we’ve submitted planning applications for a number of our sites, including Banbury, Beenham, Bristol, and Gatwick, to support our geographical growth and long-term expansion.

In the first quarter of 2025, we received planning consent for our first Solar Farm. This green light allows us to install a 2MW ground-mounted solar PV and Battery Energy Storage System at our Beenham site, near Reading. The project will power the equivalent of 422 homes annually and displace approximately 393 tonnes of CO2 each year.

We also received planning permission for our expansion plans at Bishop’s Cleeve MRF. This approval secures the site’s long-term future and enables key operational and sustainability improvements.

As part of our Estates strategy, we focused on increasing rental income from non-operational sites. This included a successful planning application for our Thorpe Mead site in Banbury, which, once leased, will secure another important revenue stream for the site.

In the latter part of 2025, construction began on a new Waste Transfer Station at our Bristol site, which is due to open in early 2026. The project is the culmination of a planning process which began in 2020, for the erection and operation of a waste transfer station alongside new structures including a trailer shelter, weighbridge and office.

The Waste Transfer Station will see up to 50,000 tonnes per annum of commercial and industrial waste gathered from local businesses and customers and bulked on site.

Over the last five years, we’ve made significant progress in developing our business in Bristol and this new facility will further establish our presence in the region.

Financial review

The group’s primary financial and non-financial key performance indicators are as follows:                                                

Grundon Waste Management Limited is the principal trading entity within the Group and is the primary driver of the consolidated activities and performance. The Company has a number of subsidiary undertakings, as set out in note 16, the results of which are consolidated into the Group accounts. With the exception of O.C.O. Technology Group Limited, the Directors consider the results of the remaining subsidiary undertakings to be comparatively insignificant in the context of the performance of the Group as a whole. O.C.O. Technology Group Limited represents a material contributor to the Group’s results and a strategic review of its operations and performance has been presented within the published O.C.O. Technology Group Limited consolidated financial statements. The Directors have therefore elected to present the Strategic Business Review of Grundon Waste Management Limited on a standalone basis as follows.

Underlying turnover continues to grow year on year in line with expectations, whilst the comparison between 2024 and 2025 shows only a modest increase overall (1.2%) this was partly down to market forces driving an exceptional level of Energy Generation turnover not repeated in the 2025 year.

The company’s gross margin increased by 1% in the year, reflecting continued discipline in managing production costs. Overheads rose by 7%, which placed pressure on the operating margin, reducing overall profitability. Key areas of above-inflation increases included higher bad debt charges, driven by a rise in insolvencies among small and medium-sized customers, and increased project-management costs associated with several major investments requiring independent specialist oversight. The company also invested further in developing its service offering to meet evolving customer requirements and support future growth. A positive movement within the overheads line was the reversal of the prior year’s restoration provision, following updated guidance from the Environment Agency. This partially offset what was otherwise a year of notable, but largely expected, cost increases across several lines.

Turnover per employee decreased marginally in the year. However, if the prior year were adjusted to exclude exceptional, non-recurring income, the metric would have shown a broadly neutral movement.

In line with the Board’s strategy to maximise the utilisation and longer term value of Grundon owned land, the business continued to invest in improving unused areas and securing carefully selected tenants. This approach enables the Group to generate stable, long-term rental income from sites that would otherwise remain underutilised.

Cash balances reduced significantly during the period, in line with forecasts. This reduction reflects the Board’s deliberate decision to fund major infrastructure projects from internal cash resources rather than through external project finance. To put some context to this, although the overall cash reduced by £11m in the year, this was after having invested in over £17m worth of assets and projects. Following the year end, the directors have put in place a short term borrowing facility with Grundon’s main bank to ensure adequate resource availability to continue to fund these projects through to completion, whereafter the cash generated will quickly enable repayment.

Despite a more modest profit for the year, the Directors are pleased to report an increase in Balance Sheet net assets of £17.8m (2024: £17.1m). The current year’s increase in net worth includes both retained profits and an improvement of almost £1m in the Defined Benefit pension scheme surplus, following the latest FRS 102 valuation.

Service innovation

To help expand the list of waste streams we can recycle, in April 2025 Grundon launched a new service - RecyclePlus. Focused on three waste streams that are traditionally more difficult to recycle – compostables, paper towels and coffee cups – the service guarantees 100% specialist recycling, providing organisations with another big tick in the box towards their sustainability targets.

Collections are made using a fully electric zero emission vehicle, and waste is then taken onto one of our specialist partners for onward reprocessing.

Award winning

Throughout the year we celebrated a series of awards in recognition of vehicle safety standards, innovation, sustainability efforts and our apprenticeship programmes.

We were highly commended at two award ceremonies for our ongoing commitment to apprenticeships and early careers development.

In May, judges at the Oxfordshire Apprenticeship Awards 2025 highly commended Grundon in the Apprenticeship Employer of the Year (250+ employees) category, acknowledging our passion for nurturing talent and creating opportunities for the next generation.

In June, Grundon were highly commended in the Early Careers & Apprenticeship Award category at the Circle 2 Success Regional Business Awards 2025. This recognition celebrates employers who go above and beyond to support, mentor and empower apprentices as they begin their professional journeys.

These accolades reflect our continued efforts to build a supportive and inclusive environment where apprentices can thrive and grow.

Later in the year, Grundon won the Innovation Award at the prestigious Thames Valley 250 Awards.

The Innovation Award seeks to reward the organisation that has made a significant commitment to innovation within the past 12 months, achieving a notable impact on both its business and overall industry.

Announcing Grundon as the Innovation Award winner, Kate Stent Corporate Audit Partner at Crowe UK, said: “Since its formation in 1929, innovation has always been at the heart of this business, exemplified more recently through its sustainability-led initiatives and industry-first solutions.

“This business has shown that innovation is not just a buzzword but a core part of its strategy and culture. Its long-term view means that decisions are made to benefit not only the business but the community and industry long term.”

In the realm of sustainability, we received “Predicate” status in the ESG Transparency Awards 2025, underlining our continued commitment to transparent and forward-looking sustainability reporting.

The ESG Transparency Awards honour European organisations, that have successfully integrated sustainability principles into their operations and communicate these openly through their sustainability reports. The award recognises companies that demonstrate how profitability and sustainability can go hand in hand as successful strategies for a better future.

At the UK Fleet Champion Awards, Grundon were recognised as the organisation that has worked hardest to improve the safety and environmental impact of vehicles used on behalf of their business, as we took home the Safe Vehicles Award.

Risk & Sustainability Director, Toni Robinson, was also highly commended at the same event for the Road Risk Manager of the Year Award.

Sustainability journey    

Since 1 April 2025, Grundon has been powered by 100% renewable electricity from the National Grid. This marks another milestone moment in our sustainability journey and a pivotal step towards achieving our goal of being net-zero by 2040.

This change has a direct impact on our Scope 2 emissions. By switching to SmartestEnergy, a 100% renewable electricity supplier, we can now guarantee that every kilowatt-hour (kWh) of grid electricity used at our sites is matched and bought from green sources like wind, solar or water energy. We also receive UK-recognised Renewable Energy Guarantees of Origin (REGO) certificates, confirming the renewable source of electricity and underlining our commitment to responsible energy consumption.

As a result, Grundon now confidently report zero market-based Scope 2 emissions.

The Directors of Grundon Waste Management Limited and those of all UK companies must act in ways they consider would be most likely to promote the success of the company for the benefit of the members as a whole and in doing so have regard (amongst others) to a set of principles, these are set out in the Companies Act.

As part of their induction, directors are briefed on their duties and statutory responsibilities and are given access to professional advice on these if required, either through the company or through an independent advisor. All new directors are also required to pass the standard Institute of Directors (IoD) Certificate in Company Direction course to enable them to have a better and fuller understanding of their statutory duties as a director.

Below is a summary of how Grundon Waste Management Directors discharge their duties in regard to the requirements of the companies act:

A. have regard to the likely consequences of any decision in the long term

Each year, the Board undertakes a review of the company strategy which includes its plans for the next 3 years. Once approved by the board, the strategy forms the backdrop to budgets, forecasts, resource plans and other investment decisions. In approving the company strategy, the Board also consider a host of external factors, such as the evolving economic and market conditions

.

B. the interests of the company's employees

Grundon is committed to being a responsible business, the behaviours of the directors and all employees are aligned to the company values. In 2016 the directors undertook an exercise along with the family owners, to formalise what had been until then an unwritten set of commonly lived values. Employees are now reminded of these shared values all across our business many times a day, whether they are displayed on the wall of a workers welfare facility on a poster or displayed on our company mugs used throughout the business.

C. the need to foster the company's business relationships with suppliers, customers and others

The board understand the importance of our customers, as a company we aim to add value to them through the services we provide. In recognition of the importance of our customers, both internal and external, all employees, including directors, are required to undertake our internally branded ‘customer first’ training.

We continue to foster key strategic and commercial relationships with our supply chain partners, with a focus on quality and sustainability, and focused delivery across the entire supply chain. We have open dialogue and transparent engagement with our regulatory bodies, policy makers and other stakeholders who shape our social contract.

D. the impact of the company's operations on the community and the environment

The directors take the impact of the company’s operations on the environment very seriously and Grundon is proud to hold the ISO14001 accreditation. The Board of directors review the Company Environmental policy annually to ensure it is up to date and relevant.

E. the desirability of the company maintaining a reputation for high standards of business conduct

We ensure a transparent approach to conducting business in a responsible manner, with a focus on maintaining good governance. The codes of conduct and policies are regularly updated to ensure the highest of standards are adhered to. Whilst none of the 9 core Grundon Values are more important than any other, having ‘Professional’ and ‘Responsible’ as 2 of the values ensures that high standards are always adhered to.

F. the need to act fairly as between members of the company.

Monthly operational reports are submitted to both the shareholders and directors and relevant decisions of the board are also relayed to employees through regular colleague briefings.

By order of the board

The directors present their annual report and financial statements for the year ended 30 September 2025.

The principal activity of the company and group continued to be that of waste collection, waste treatment, waste disposal, recycling and energy recovery.

The results for the year are set out on page 15.

Ordinary dividends were paid amounting to £2,998,118. The directors do not recommend payment of a further dividend.

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

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

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

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Subsequent to the reporting date, Grundon Waste Management Limited completed the acquisition of a waste management business. Furthermore, as disclosed in note 1.4 to these financial statements, subsequent to the year‑end the company obtained additional funding to support management of its liquidity for the foreseeable future.

The auditor, Kirk Rice LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The group has followed the 2019 HM Government Environmental Reporting Guidelines, the GHG Reporting Protocol – Corporate Standard and the 2020 UK Government’s Conversion Factors for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee.

Continued to be accredited to ISO50001:2018 – Energy Management standard and ISO14001:2015 – the Environmental Standard

The directors are also looking into a solar PV project at Beenham on the closed landfill. The directors have recently installed Solar PV panels at the Benson Head office and have been given planning permission to install Solar PV on our closed landfill site at Beenham.  Furthermore, the directors have reduced lighting energy consumption by adjusting PIR timings and lux levels and reduced the fuel used for tankering away by installing a leachate treatment plant at the Beemham closed landfill, this will also be powered by solar.  The directors are also conducting energy audits at other sites looking specifically at ways to reduce energy usage and where possible, install solar panels.  Finally, the directors have continued to expand our electric powered LGV fleet.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, 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 and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and principal risks and uncertainties.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The financial statements have been prepared on a going concern basis. In reaching this conclusion, the Directors have considered the Group’s cash flow forecasts, current trading performance, expected future developments, and the principal risks and uncertainties facing the business as set out in the Strategic and Directors' Reports.

The Group is forecast to remain cash generative for the foreseeable future. Ongoing investment in various capital infrastructure projects and in recent acquisitions together with a delay in repayment of a commercial loan owed to the Group has increased utilisation of existing banking and overdraft facilities.

Immediately prior to the year end, the Group increased its overdraft facility to £5.5m and subsequent to the year end the Group has secured an additional £10.5m through a revolving credit facility. These financing arrangements further strengthen liquidity as the Group continues to invest in the construction of the Avonmouth facility and in its acquisition strategy.

The directors have assessed and confirmed compliance with banking covenants and expect to remain compliant for the foreseeable future.

The Directors have assessed the Group’s liquidity in light of the additional facilities and are satisfied that adequate headroom remains to provide sufficient working capital to support ongoing operations and fund investments in the event of any further delays in the anticipated repayment of the commercial loan.

Based on the forecasts and the funding available, the Directors have a reasonable expectation that the Group has sufficient resources to continue in operational existence for the foreseeable future. Accordingly, the going concern basis has been adopted in preparing the financial statements.

We have audited the financial statements of Grundon Waste Management Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

In the light of the knowledge and understanding of the group and the parent company and their 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 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Our audit approach was developed by obtaining an understanding of the company’s activities, the key functions undertaken on behalf of the Board by management and by service organisations, and the overall control environment. Based on this understanding we assessed those aspects of the company’s transactions and balances which were most likely to give rise to a material misstatement and were most susceptible to irregularities including fraud or error. Specifically, we identified what we considered to be key audit risks and planned our audit approach accordingly.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, Environmental Permitting regulations of the Environment Agency and Health and Safety legislation. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, FRS 102 and UK tax legislation.

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Our tests included, but were not limited to:

• Agreement of the financial statement disclosures to underlying supporting documentation;

• Reviews of tax computations and returns;

• Enquiries of management and compliance personnel;

• Reviews of correspondence and compliance reports issued by regulatory bodies; and

• Considering the effectiveness of control environment in monitoring compliance with laws and regulations.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.

We also addressed the fraud risk of management override of internal controls, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to unusual transactions, and transactions entered into out the normal course of business. The group audit engagement team also identified revenue recognition (cut-off) as an area where the financial statements were also most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to reviewing and testing a sample of revenue recognised around the year end to confirm revenue had been recognised appropriately and in the correct period.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £19,932,924 (2024 - £20,635,932 profit).

Grundon Waste Management Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Thames House, Oxford Road, Benson, Wallingford, Oxfordshire, OX10 6LX.

The group consists of Grundon Waste Management Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Grundon Waste Management Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 30 September 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

The financial statements have been prepared on a going concern basis. In reaching this conclusion, the Directors have considered the Group’s cash flow forecasts, current trading performance, expected future developments, and the principal risks and uncertainties facing the business as set out in the Strategic and Directors' Reports.

The Group is forecast to remain cash generative for the foreseeable future. Ongoing investment in various capital infrastructure projects and in recent acquisitions together with a delay in repayment of a commercial loan owed to the Group has increased utilisation of existing banking and overdraft facilities.

Immediately prior to the year end, the Group increased its overdraft facility to £5.5m and subsequent to the year end the Group has secured an additional £10.5m through a revolving credit facility. These financing arrangements further strengthen liquidity as the Group continues to invest in the construction of the Avonmouth facility and in its acquisition strategy.

The directors have assessed and confirmed compliance with banking covenants and expect to remain compliant for the foreseeable future.

The Directors have assessed the Group’s liquidity in light of the additional facilities and are satisfied that adequate headroom remains to provide sufficient working capital to support ongoing operations and fund investments in the event of any further delays in the anticipated repayment of the commercial loan.

Based on the forecasts and the funding available, the Directors have a reasonable expectation that the Group has sufficient resources to continue in operational existence for the foreseeable future. Accordingly, the going concern basis has been adopted in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

The company recognises revenue from the following major sources:

Waste collection, disposal & treatment

The treatment contracts are for the provision of a waste management service which comprises the collection, transportation and either treatment or disposal of waste. The risks and rewards transfer at a point in time, being on the acceptance of the waste at the customer site, or at Grundon's waste management facilities.

Sale of recovered material

Revenue from the sale of recovered materials is recognised when control of the goods has transferred to the customer, which is typically upon dispatch or delivery in accordance with the agreed contractual terms. This is the point at which the significant risks and rewards of ownership have passed to the buyer. Revenue is measured based on the quantity of material supplied, at rates agreed within contractual arrangements or at prevailing market prices. Invoices are typically raised on delivery or in line with contractual billing schedules.

Specialist machinery

Revenue from the sale of specialist machinery is recognised when control of the goods has transferred to the customer, which is typically upon delivery. This is the point at which the significant risks and rewards of ownership have passed to the buyer.

Energy generation

The group also receives revenue from the sale of electricity that it generates from processing and incinerating waste. Revenue from the sale of electricity from the group's generating assets is measured based upon metered output delivered at rates specified under contract terms or prevailing market rates. Revenue is recognised at a point in time being the point of distribution to the grid. Typically invoices are raised monthly.

Other sales

Revenue from other sales is recognised when control of goods or services has transferred to the customer, and it is probable that economic benefits will flow to the Group. This is typically when the significant risks and rewards of ownership have passed, the Group retains no continuing managerial involvement or effective control, and the amount of revenue can be measured reliably. For service-related income, revenue is recognised over time by reference to the stage of completion of the contract, provided that the outcome can be measured reliably, consideration is probable, and both costs incurred and costs to complete can be measured with sufficient reliability.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Development costs are capitalised if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and the cost can be reliably measured.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Assets in the course of construction are not depreciated until they are commissioned. The company incurs significant expenditure on development of capital projects. The initial costs of project development are deferred and recognised within current assets until a formal decision has been taken to proceed with the project, at which point, the cost is either expensed to the profit or loss, or capitalised as a fixed assets as an asset under construction.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Spare parts are recognised as inventory and measured at the lower of cost and net realisable value. Where spare parts are used in the construction or replacement of property, plant and equipment and meet the recognition criteria, they are capitalised as part of fixed assets and depreciated over their useful economic lives.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

Equity instruments issued by the group 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 group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Provision for the cost of restoring landfill sites is made over the operational life of each landfill site. Where the obligation recognised as a provision gives access to future economic benefits, a tangible asset is recognised.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

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 balance sheet 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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. Management reassess the useful economic lives and residual values annually. Management estimate the useful economic lives based upon technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the property plant and equipment, and note 1.8 for the rates of depreciation charged for each class of assets.    

The Group’s investment properties are varied and include former landfill sites, land containing historic contamination and sites subject to ongoing environmental management obligations. These characteristics introduce inherent estimation uncertainty due to limited market comparables, rising remediation costs, and the long-term nature of aftercare requirements.

The Directors assess the fair value of such properties using information prepared by their Estates team, who provide detailed data on site condition, anticipated remediation needs, expected future use, potential cash flows and relevant external market evidence where available. The valuation therefore relies on assumptions regarding the extent of contamination, future regulatory or environmental requirements, the cost and timing of any necessary aftercare, and the long-term marketability of land of this nature.

Although the Directors consider these estimates to be reasonable and based on the best information available, the valuation of Investment Properties is inherently subjective. Changes in the underlying assumptions - particularly regarding associated remediation costs or regulatory requirements - could result in material adjustments to the carrying value of investment properties in future reporting periods.

The group has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 28 for the disclosures relating to the defined benefit pension scheme.

Landfill restoration and aftercare costs are incurred during the operational life of each landfill site and for a considerable period thereafter. The period of aftercare post-closure and the level of costs expected are uncertain and can vary significantly from site to site. Management estimate the value which reference to key factors are the type of waste, the speed at which it decomposes, the volume of leachate requiring treatment and regulatory requirements specific to the site. See note 26 for the disclosures relating to the restoration and aftercare provision.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2024 - 5).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

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

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Freehold land and buildings with a carrying amount of £1,911,140 (2024 - £1,937,400) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Mixed-use property

Included within Land and Buildings are properties with an aggregate carrying value of £44,619,356 as at 30 September 2025. These sites are used principally by the Grundon Waste Management group, however certain areas are let to third parties and are therefore of mixed-use. 

Any valuation of these properties at fair value is based upon judgements and estimates that are extremely sensitive as described further in Note 2 of these financial statements. In addition, the sites comprise specialised operational waste management land and infrastructure (including hardstanding and areas associated with landfill, waste transfer and recycling activities). The way in which the properties are used varies significantly across each site, such that an allocation based on floor area or similar metrics would not provide a reliable basis for measurement. In addition, the properties are held primarily for use in the Group’s trade, and the let element is merely ancillary to the group’s results and activities. The directors do not expect the properties to be disposed of as separable components and any disposal would be of the site as an integrated operational asset, and as such, the directors have concluded that there is no readily observable basis on which to attribute value to the proportion let.

In accordance with FRS102.16.4 the directors have concluded that a reliable estimate of the fair value of the let element cannot be made and have therefore taken the prudent decision to include these properties at cost within these financial statements.

Historical cost

The group applied the transitional arrangements of Section 35 of FRS 102 and used a previous valuation as the deemed cost for certain freehold properties. The properties are being depreciated from the valuation date. As the assets are depreciated or sold an appropriate transfer is made from the revaluation reserve to retained earnings.

Certain freehold and leasehold properties are carried at valuation. If the assets were measured using the cost model, the total carrying amounts of properties would be as follows:

The directors have taken into consideration the matters set forth within note 2 of these financial statements and have concluded that the fair value of the investment property remains materially consistent with the values reported as at 30 September 2024.

Company

Investment property includes a restored landfill site let to a subsidiary.

Other investments relate to shareholdings in unlisted investments.

Other investments relate to shareholdings in unlisted investments.

Details of the company's subsidiaries at 30 September 2025 are as follows:

Registered office addresses (all UK unless otherwise indicated):

Details of associates at 30 September 2025 are as follows:

Registered office addresses:

1    2nd Floor, Lisburn Square House, Haslems Lane, Lisburn, Northern Ireland, BT28 1TW

2    Barro San Martin, 5 Edificio Munatones, ES-BI, 48550, Muskiz, Spain

Vanden Recycling Limited has 978 A ordinary and 2,933 Ordinary shares in issue. Subsequent to the year end, the company increased it's shareholding in Vanden Recycling Limited to 30%.

Biscay Eco Aggregates SL is 25% owned within the OCO Technology group.

Details of joint ventures at 30 September 2025 are as follows:

Registered office addresses:

1    Thames House Oxford Road, Benson, Wallingford, England, OX10 6LX

The group holds a 50% shareholding in Lakeside Energy From Waste Holdings Limited, being 100% of the 1,000,000 issued Ordinary A £1 shares in that company. Lakeside Energy From Waste Holdings Limited also has 1,000,000 Ordinary B £1 shares in issue. Lakeside Energy From Waste Holdings Limited is an holding entity which holds 100% shareholding in Lakeside Energy From Waste Limited. The principal activity of Lakeside Energy From Waste Limited was that of waste incineration, recycling and energy generation.

The group holds a 50% shareholding in Regolite Limited, being 500 shares of the issued 1,000 Ordinary shares in that company.

The balance outstanding in amounts owed to undertakings in which the group has a participating interest related to amounts owed to related parties. Refer to related party transactions in note 36 for particulars.

The balance outstanding in amounts owed to undertakings in which the group has a participating interest related to amounts owed to related parties. Refer to related party transactions in note 36 for particulars.

The loan above accrues interest at 2.4% above the Bank of England Base rate, is repayable by 31 July 2026 and unsecured.

Finance lease payments represent rentals payable by the company or group 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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Finance leases and hire purchase liabilities are secured on the assets to which they relate.

Landfill restoration provisions are included during the operational life of each landfill site and for a considerable period thereafter. The period of aftercare post-closure and the level of costs expected are uncertain and can vary significantly from site to site. Key factors are the type of waste, the speed at which it decomposes, the volume of leachate requiring treatment and regulatory requirements specific to the site. Landfill restoration provisions are expected to be substantially utilised throughout the operational life and aftercare provisions within 60 years of closure.

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

Deferred tax assets gave been recognised in respect of all temporary differences giving rise to deferred tax assets because it is probable that these assets will be recovered.

The majority of the group and company's deferred tax assets are liabilities are expected to reverse over more than one year.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

There were outstanding contributions included in creditors for the group at the reporting date of £304,109 (2024: £280,354).

The company operated a defined benefit scheme for qualifying employees, now closed to further accrual. Any residual liability, as calculated triennially by a qualified actuary, is funded by payments of contributions agreed between the company and the trustees of the scheme. The company has made deficit contributions of £nil during the year and expects to pay contributions of £nil during the year ended 30 September 2026.

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 30 September 2023 by Barnett Waddingham LLP.

Under FRS102, the value of the fund's liabilities is determined by projecting expected benefit payments using the chosen assumptions and then discounting the resulting cashflows back to the review date. For this purpose, the value of the fund's liabilities as at 30 September 2025 has been calculated by Barnett Waddingham LLP by updating the valuation calculations carried out for the previous scheme funding valuation.

The company shares the risks of the Defined Benefit Scheme with an entity under common control. There is no formal policy document but it is agreed that the company assumes 94% of the plan assets, liabilities and therefore share of surplus/deficit. The split has been determined based upon the Directors' best estimate of the proportion of individuals in the joint scheme that were historically employed by Grundon Waste Management Limited.

Assumed life expectations on retirement at age 65:

* Expected rate of increase of pensions in payment is Bank of England implied inflation on proxy cashflows.

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

The defined benefit obligations arise from plans which are wholly or partly funded.

The actual return on plan assets was £211,000 (2024 - £3,542,000).

None of the fair values of the assets shown include any of the company's own financial instruments, or any property occupied by, or other assets used by the company.

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

This represents the excess of the fair value of the asset over historical cost. This revaluation was performed on the transition to FRS102 in 2014.

This represents the equity in subsidiary undertakings not attributable, directly or indirectly, to the parent company.

Amounts arising from cumulative foreign exchange differences from translating foreign operations, recorded in OCI and held in equity.

Retained earnings includes all current and prior period retained profits. All transactions with the owners of the parent company are recorded separately within equity. Dividend distributions payable to equity shareholders are included in other liabilities when the dividends have been approved in a general meeting prior to the reporting date.

Barclays Bank plc holds an unlimited guarantee, dated 21 April 1986, which is secured by charges on properties owned by Grundon Waste Management Limited, Grundon Sand & Gravel Limited and S Grundon (Waste) Limited. There are cross guarantees in place relating to bank balances and loans of these other companies and S Grundon (Services) Limited. At 30 September 2025 the net contingent liability in this respect amounted to £656,688 (2024: £859,607).

Grundon Waste Management Limited has provided security against the borrowings of Lakeside Energy from Waste Limited in the form of its interest in the shares of Lakeside Energy From Waste Holdings Limited.

In addition, Lombard plc holds cross guarantees given by the Grundon companies in respect of finance for assets leased to the company under hire purchase, operating leases and other lease agreements. This is in addition to the leased assets themselves being secured.

A contingent liability exists in respect of the cost of cleaning up contaminated land acquired by the group. The price paid for the property reflected the fact that it was contaminated. No provision has been made as no reliable estimate for the cost of decontamination is available.

At the reporting date, Grundon Waste Management Limited have committed to provide further loan drawdowns of £1.3m to its subsidiary, O.C.O. Technology Group Limited, for a loan facility in relation to replacing a building on its site. The 16 year mortgage was signed on 4 September 2025.

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

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Amounts contracted for but not provided in the financial statements:

Subsequent to the reporting date, Grundon Waste Management Limited acquired 100% of the share capital of another waste management company and its subsidiaries, on 20 January 2026. The net assets acquired were £1,545,174. As the acquisition occurred after the reporting date, no amounts have been recognised in these financial statements.

As disclosed in note 1.4 to these financial statements, subsequent to the year‑end the company obtained additional funding to support management of its liquidity for the foreseeable future.

N N Grundon received dividends of £1,024,325 during the year (2024: £1,024,325).

At 30 September 2025, N S Grundon and N N Grundon had balances due from the group of £196,765 (2024: £657,546). The balances outstanding are interest free and repayable on demand.

The remuneration of key management personnel is as follows.

During the year the group entered into the following transactions with related parties:

During the year the company entered into transactions with a 50% joint venture and its subsidiary, and two companies related by virtue of common control. The company is exempt from disclosing other related party transactions as they are with other companies that are wholly owned within the Group.

Other related parties relate to entities under common control of one or more directors.

The following amounts were outstanding at the reporting end date:

Other related parties relate to entities under common control of one or more directors.

The following amounts were outstanding at the reporting end date:

Other related parties relate to entities under common control of one or more directors.

There is a secured loan of £435k included in other debtors above that is receivable from an entity under common control. The loan is repayable on demand and accrues interest at a rate of 3.25%.

There is an amount of £230k included in other debtors above that is receivable from an entity under common control. The loan is interest-free and repayable on demand.

There is an amount of £780k included in non-current other debtors above that is receivable from an entity under common control. The loan is repayable on demand and accrues interest at a rate of 5.15%.

There is an amount of £640k included in other debtors above that is receivable from an entity under common control. The loan is repayable on demand and accrues interest at a rate of 5.15%.

The company provided guarantees as disclosed on page 55 Note: Financial commitments, guarantees and contingent liabilities.

The ultimate controlling party of the entity is the Grundon family.