Company registration number 08737258 (England and Wales)
DERWEN RECYCLING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
DERWEN RECYCLING LIMITED
COMPANY INFORMATION
Directors
Mr M M Davies
Mr S I Hanford
Ms D A Keogh
Company number
08737258
Registered office
Neath Abbey Wharf
Neath Abbey
Neath
SA10 6BL
Auditor
Xeinadin Audit Limited
Suite 2D Building 1
Eastern Business Park
St Mellons
Cardiff
CF3 5EA
DERWEN RECYCLING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 20
DERWEN RECYCLING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
- 1 -

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

Principal activities

The principal activity of the company continued to be that of the treatment and disposal of non hazardous waste.

Review of the business

The company has recorded another year of solid trading activity during the financial year ended 2025. Turnover increased marginally compared with the previous year, demonstrating continued demand for the company's services despite challenging market conditions.

Gross profit reduced from £2.6 million in 2024 to £2.2 million in 2025, with the gross profit margin decreasing from 17% to 15%. This reduction reflects a combination of increased direct operating costs and adverse market conditions experienced during the year.

The company was significantly affected by higher r efuse-derived fuel (RDF) prices charged by Swedish and UK power plants, which increased operating costs throughout the year. In addition, changes in employment legislation resulted in increased staffing costs, while abnormal maintenance expenditure and costs arising from underperformance identified through monthly operational reviews further impacted profitability.

Administrative expenses also increased during the year, primarily due to higher insurance premiums, increased professional accountancy fees and higher depreciation charges. The increase in depreciation reflects the company's continued investment in its operational infrastructure, with capital expenditure of approximately £0.5 million completed during the financial year to support future growth and operational efficiency.

As a consequence of these factors, the company reported a loss for the year of £61,000. The directors consider that this result is attributable to exceptional cost pressures experienced during the period rather than any deterioration in the underlying business or customer demand.

D ebtors have remained consistent with the previous year and are considered fully recoverable. Creditors are also in line with the prior year. Net current liabilities have increased due to the utilisation of cash resources and additional hire purchase financing used to fund capital investment during the year. The directors have reviewed the company's cash flow forecasts and are satisfied that sufficient financial resources are available to enable the company to meet its liabilities as they fall due. Accordingly, the financial statements have been prepared on the going concern basis.

Future Developments

The directors remain confident in the long-term prospects of the business. Investment made during the year is expected to improve operational efficiency and support future profitability. Management continues to focus on controlling operating costs, improving operational performance through enhanced monthly performance monitoring, and mitigating the impact of external cost pressures where possible.

The company will continue to invest selectively in its asset base and operational capabilities while maintaining prudent financial management. The directors expect that these measures, together with stable customer demand, will strengthen financial performance in future reporting periods.

Principal risks and uncertainties

The management of the business is subject to a number of risks. Key business risks principally relate to market competition both locally and nationally, interest rate changes, changes to environmental legislation, changes to health and safety legislation, upkeep of equipment, and changes to national insurance rates. Business risks are reviewed regularly by the directors and appropriate polices are put in place to mitigate their impact.

DERWEN RECYCLING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 2 -

On behalf of the board

Mr S I Hanford
Director
16 July 2026
DERWEN RECYCLING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
- 3 -

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

Results and dividends

No interim dividend was paid during the year. The directors recommend a final dividend of £4,200 per share.

The total distribution of dividends for the year ended 31 October 202 5 will be £84,000.

Directors

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

Mr M M Davies
Mr S I Hanford
Ms D A Keogh
Statement of disclosure to auditor

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr S I Hanford
Director
16 July 2026
DERWEN RECYCLING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2025
- 4 -

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 company and of the profit or loss of the company for that period.

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

- select suitable accounting policies and then apply them consistently;

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

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

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

DERWEN RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DERWEN RECYCLING LIMITED
- 5 -
Opinion

We have audited the financial statements of Derwen Recycling Limited (the 'company') for the year ended 31 October 2025 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 October 2025 and of its loss 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The 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' r eport 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.

DERWEN RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DERWEN RECYCLING LIMITED (CONTINUED)
- 6 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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' r esponsibilities s tatement, 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.

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.

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

DERWEN RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DERWEN RECYCLING LIMITED (CONTINUED)
- 7 -

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:

- The nature of the industry and sector, control environment and business performance including the company’s performance targets and tenders for new contracts.

- Results of the enquiries of management about their own identification and assessment of the risks of irregularities.

- Any matters we have identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:

  - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

  - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

  - the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we consider the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, health and safety and tax legislation.

In addition, we considered the provisions for other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid material penalty.

Audit response to risks identified

Our procedures to respond to risks identified include the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reviewing correspondence with HMRC; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and, remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect that irregularities that result from error.

As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

DERWEN RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DERWEN RECYCLING LIMITED (CONTINUED)
- 8 -

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.

Tania Cregg FCCA (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited, Statutory Auditor
Chartered Accountants
Suite 2D Building 1
Eastern Business Park
St Mellons
Cardiff
CF3 5EA
16 July 2026
DERWEN RECYCLING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2025
- 9 -
2025
2024
Notes
£
£
Turnover
15,939,636
15,491,771
Cost of sales
(13,564,315)
(12,854,917)
Gross profit
2,375,321
2,636,854
Administrative expenses
(2,319,551)
(2,090,796)
Other operating income
-
0
3,226
Operating profit
3
55,770
549,284
Interest payable and similar expenses
5
(116,517)
(91,256)
(Loss)/profit before taxation
(60,747)
458,028
Tax on (loss)/profit
6
(30,484)
(292,545)
(Loss)/profit for the financial year
(91,231)
165,483

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DERWEN RECYCLING LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2025
31 October 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
8
3,120,599
3,627,564
Current assets
Debtors
9
2,416,197
2,454,042
Cash at bank and in hand
239,881
401,782
2,656,078
2,855,824
Creditors: amounts falling due within one year
10
(3,348,758)
(3,478,927)
Net current liabilities
(692,680)
(623,103)
Total assets less current liabilities
2,427,919
3,004,461
Creditors: amounts falling due after more than one year
11
(618,314)
(1,050,109)
Provisions for liabilities
Deferred tax liability
14
770,323
739,839
(770,323)
(739,839)
Net assets
1,039,282
1,214,513
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
1,039,182
1,214,413
Total equity
1,039,282
1,214,513

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 16 July 2026 and are signed on its behalf by:
Mr S I Hanford
Director
Company registration number 08737258 (England and Wales)
DERWEN RECYCLING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2025
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2023
100
1,132,930
1,133,030
Year ended 31 October 2024:
Profit and total comprehensive income
-
165,483
165,483
Dividends
7
-
(84,000)
(84,000)
Balance at 31 October 2024
100
1,214,413
1,214,513
Year ended 31 October 2025:
Loss and total comprehensive income
-
(91,231)
(91,231)
Dividends
7
-
(84,000)
(84,000)
Balance at 31 October 2025
100
1,039,182
1,039,282
DERWEN RECYCLING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
1,206,404
1,286,201
Interest paid
(116,517)
(91,256)
Net cash inflow from operating activities
1,089,887
1,194,945
Investing activities
Purchase of tangible fixed assets
(565,156)
(2,243,251)
Proceeds from disposal of tangible fixed assets
-
0
170,092
Net cash used in investing activities
(565,156)
(2,073,159)
Financing activities
Repayment of bank loans
(50,050)
(50,058)
Payment of finance leases obligations
(552,582)
578,251
Dividends paid
(84,000)
(84,000)
Net cash (used in)/generated from financing activities
(686,632)
444,193
Net decrease in cash and cash equivalents
(161,901)
(434,021)
Cash and cash equivalents at beginning of year
401,782
835,803
Cash and cash equivalents at end of year
239,881
401,782

The notes on pages 13 to 20 form part of these financial statements.

DERWEN RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
- 13 -
1
Accounting policies
Company information

Derwen Recycling Limited is a private company limited by shares incorporated in England and Wales. The registered office is Neath Abbey Wharf, Neath Abbey, Neath, SA10 6BL.

1.1
Basis of preparation

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 a mounts 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.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

1.4
Tangible fixed assets

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:

Freehold land and buildings
- 10% straight line
Plant and equipment
- 25% straight line
Fixtures and fittings
- 20% on cost
Motor vehicles
- 25% on reducing balance

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 credited or charged to profit or loss.

1.5
Cash and cash equivalents

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.

DERWEN RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 14 -
1.6
Financial instruments

The company only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.7
Taxation

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

Current 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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 when the company has 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.

1.8
Employee 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.

1.9
Retirement benefits

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

1.10
Leases
As lessee

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.

DERWEN RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 15 -
2
Judgements 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 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.

3
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
-
0
-
0
Depreciation of tangible fixed assets
1,072,121
891,729
Profit on disposal of tangible fixed assets
-
(91,958)
4
Employees

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

2025
2024
Number
Number
Production
35
30
Admin
3
3
Total
38
33

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,547,395
1,178,111
Social security costs
172,226
134,521
Pension costs
33,032
28,231
1,752,653
1,340,863
5
Interest payable and similar expenses
2025
2024
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
116,517
91,256
DERWEN RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 16 -
6
Taxation
2025
2024
£
£
Deferred tax
Origination and reversal of timing differences
30,484
292,545

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

2025
2024
£
£
(Loss)/profit before taxation
(60,747)
458,028
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
(15,187)
114,507
Tax effect of expenses that are not deductible in determining taxable profit
-
0
890
Tax effect of income not taxable in determining taxable profit
-
0
(720)
Tax effect of utilisation of tax losses not previously recognised
15,186
-
0
Capital allowances in excess of depreciation
-
0
(270,169)
Losses carried forward
-
0
155,492
Deferred tax
30,485
292,545
Taxation charge for the year
30,484
292,545
7
Dividends
2025
2024
£
£
Final paid
84,000
84,000
8
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2024
577,584
3,629,301
33,751
2,075,922
6,316,558
Additions
116,101
192,995
3,214
252,846
565,156
At 31 October 2025
693,685
3,822,296
36,965
2,328,768
6,881,714
Depreciation and impairment
At 1 November 2024
86,980
1,790,078
7,558
804,378
2,688,994
Depreciation charged in the year
63,964
642,445
5,604
360,108
1,072,121
At 31 October 2025
150,944
2,432,523
13,162
1,164,486
3,761,115
DERWEN RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
8
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
(Continued)
- 17 -
Carrying amount
At 31 October 2025
542,741
1,389,773
23,803
1,164,282
3,120,599
At 31 October 2024
490,604
1,839,223
26,193
1,271,544
3,627,564
9
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
2,157,637
2,296,034
Other debtors
181,154
107,500
Prepayments and accrued income
77,406
50,508
2,416,197
2,454,042
10
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans
12
33,352
50,000
Obligations under finance leases
13
681,157
835,346
Trade creditors
1,226,929
1,338,075
Taxation and social security
482,752
309,564
Other creditors
566,984
545,139
Accruals and deferred income
357,584
400,803
3,348,758
3,478,927
11
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Bank loans and overdrafts
12
-
0
33,402
Obligations under finance leases
13
618,314
1,016,707
618,314
1,050,109
DERWEN RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 18 -
12
Loans and overdrafts
2025
2024
£
£
Bank loans
33,352
83,402
Payable within one year
33,352
50,000
Payable after one year
-
0
33,402

A Barclays Bank PLC cross guarantee and debenture exists between Derwen Recycling Limited & Derwen Plant Company Limited.

13
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
681,157
835,346
In two to five years
618,314
1,016,707
1,299,471
1,852,053
14
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
770,323
739,839
2025
Movements in the year:
£
Liability at 1 November 2024
739,839
Charge to profit or loss
30,484
Liability at 31 October 2025
770,323

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

DERWEN RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 19 -
15
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares (£1 each) of £1 each
20
100
20
20
Ordinary B shares (£1 each) of £1 each
80
80
80
80
100
180
100
100
16
Related party transactions
Transactions with related parties

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

2024 2025

Management charges £970,884 £874,824
Amount due from related parties £107,500 £107,500

Amount due to related parties £559,822 £537,691

17
Ultimate controlling party

Frezzeramp Limited is the parent owning 80% of the company.

The ultimate controlling party is M.M.Davies.

18
Cash generated from operations
2025
2024
£
£
(Loss)/profit after taxation
(91,231)
165,483
Adjustments for:
Taxation charged
30,484
292,545
Finance costs
116,517
91,256
Gain on disposal of tangible fixed assets
-
(91,958)
Depreciation and impairment of tangible fixed assets
1,072,121
891,729
Movements in working capital:
Decrease/(increase) in debtors
37,845
(10,849)
Increase/(decrease) in creditors
40,668
(52,005)
Cash generated from operations
1,206,404
1,286,201
DERWEN RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 20 -
19
Analysis of changes in net debt
1 November 2024
Cash flows
31 October 2025
£
£
£
Cash at bank and in hand
401,782
(161,901)
239,881
Borrowings excluding overdrafts
(83,402)
50,050
(33,352)
Lease liabilities
(1,852,053)
552,582
(1,299,471)
(1,533,673)
440,731
(1,092,942)
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