Shredding Machinery Solutions Limited - Accounts to registrar (filleted)

REGISTERED NUMBER: 12720180 (England and Wales)

Financial Statements for the Year Ended 31 October 2025

for

Shredding Machinery Solutions Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

P L Banks

C Buckle

REGISTERED OFFICE:

Dairy Farm Office

Dairy Road Semer

Ipswich

Suffolk

IP7 6RA

REGISTERED NUMBER:

12720180 (England and Wales)

AUDITORS:

Hardcastle Burton LLP

Lake House

Market Hill

Royston

Hertfordshire

SG8 9JN

FIXED ASSETS

Tangible assets

4

115,005

49,483

CURRENT ASSETS

Stocks

5

690,272

79,801

Debtors

6

417,342

180,811

Cash at bank

117,010

63,343

1,224,624

323,955

CREDITORS

Amounts falling due within one year

7

1,377,641

491,055

NET CURRENT LIABILITIES

(153,017

)

(167,100

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

(38,012

)

(117,617

)

CREDITORS

Amounts falling due after more than one
year

8

98,473

-

NET LIABILITIES

(136,485

)

(117,617

)

CAPITAL AND RESERVES

Called up share capital

9

118

Retained earnings

10

(136,603

)

(117,735

)

SHAREHOLDERS' FUNDS

(136,485

)

(117,617

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 13 July 2026 and were signed on its behalf by:

P L Banks - Director

1.	STATUTORY INFORMATION

Shredding Machinery Solutions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal place of business is Shredding Machinery Solutions Limited, Premier House, Harlaxton Road, Grantham, Lincolnshire, NG31 7JX

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 £1.

The balance sheet for 31 October 2025 shows net current liabilities of £153,017 (2024: £167,100) and net liabilities of £136,485 (2024: £117,617). The directors have reviewed the cash flow projections and lending requirements for the 12 month period from the date of approval of these financial statements. The company has obtained continued financial support from its parent company, Heathpatch Limited, who have confirmed their ability to provide financial support. The cash flow projections indicate that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the accounts.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions which impact on the reported amounts of assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of estimation means that actual outcomes could differ from those estimates. The judgements and estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the financial statements are as follows:

Depreciation of fixed assets

The annual depreciation charge for all assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually.

Deferred income

Income on certain service contracts are deferred until the service is provided. The calculation of deferred income is based on estimation of the split of income relating to each service element.

Turnover

Revenue from the sale of goods is recognised when significant risks and rewards of the ownership of the goods has been transferred to the buyer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

20% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

20% on cost

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors, 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.

Basic financial liabilities

Basic financial liabilities, including creditors and loans 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.

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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Comparatives

In the prior period, the year end had been changed to align with the parent company. The prior period figures are therefore for a 15 month period ended 31 October 2024. The current year figures are for a 12 month period for the year ended 31 October 2025.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2024 - 2 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

COST

At 1 November 2024

-

49,483

-

49,483

Additions

1,151

82,199

3,777

87,127

At 31 October 2025

1,151

131,682

3,777

136,610

DEPRECIATION

Charge for year

104

21,149

352

21,605

At 31 October 2025

104

21,149

352

21,605

NET BOOK VALUE

At 31 October 2025

1,047

110,533

3,425

115,005

At 31 October 2024

-

49,483

-

49,483

5.

STOCKS

31.10.25

31.10.24

£

Parts stock

394,612

79,801

Machine stock

215,528

-

Work-in-progress

80,132

-

690,272

79,801

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.25

31.10.24

£

Trade debtors

387,842

170,682

Other debtors

9,130

5,000

VAT

-

5,129

Prepayments and accrued income

20,370

-

417,342

180,811

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.25

31.10.24

£

Trade creditors

207,231

122,398

Amounts owed to group undertakings

1,078,253

-

Social security and other taxes

11,321

6,411

VAT

4,339

-

Other creditors

29,017

1,332

Directors' current accounts

-

360,164

Accruals and deferred income

47,480

750

1,377,641

491,055

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

31.10.25

31.10.24

£

Directors' loan accounts

98,473

-

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.10.25

31.10.24

value:

£

118

Ordinary

£1

118

10.

RESERVES

Retained

earnings

£

At 1 November 2024

(117,735

)

Deficit for the year

(18,868

)

At 31 October 2025

(136,603

)

11.	QUALIFIED AUDIT REPORT

The Report of the Auditors was qualified on the following basis:

Basis of qualified opinion

We were unable to obtain sufficient appropriate audit evidence in relation to stock held at 31 October 2024 of £79,801 as we did not attend the stock count at this date. We were appointed as auditors after this date and we were unable to obtain sufficient appropriate audit evidence on existence and completeness of stock held at 31 October 2024 by alternative audit procedures. Consequently we were unable to determine whether any adjustment to this amount at 31 October 2024 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 October 2025.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 qualified opinion.

Matters required to report by exception

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

- we were unable to determine whether adequate accounting records have been kept.

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:

- 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.

Denise Lindsell FCA (Senior Statutory Auditor)

for and on behalf of Hardcastle Burton LLP

12.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge represents contributions payable by the company to the fund and other schemes and amounted to £27,261 (2024: £499). Outstanding pension contributions at the end of the year totalled £7,500 (2024: £1,332).

13.	CAPITAL COMMITMENTS

31.10.25

31.10.24

£

Contracted but not provided for in the

financial statements

17,340

-

14.	RELATED PARTY DISCLOSURES

At the year end the company owed Mr P Banks, a director, £98,473 (2024: £52,596). This loan was charged at an interest rate of 2% plus base rate and is repayable by 1 November 2027. From 3 February 2025, no interest was charged on the loan from Mr P Banks.

In the prior year, the company also owed Mr A Collinson, a former director (resigned 3 February 2025), £307,568 as at 31 October 2024. Interest was charged on this loan at a rate of 2% plus base rate and was repaid in full on 27 January 2025.

The company has an interest-free loan from its parent undertaking. The loan is repayable on demand. At 31 October 2025, the balance outstanding was £1,018,821 (2024: £Nil).

During the year the company entered into transactions with group companies as follows:

Sales £8,843

Purchases £708,699

As at 31 October 2025, the company owed a balance of £59,432 to a fellow subsidiary. This balance is interest free and repayable on demand.

15.	ULTIMATE CONTROLLING PARTY

During the year, until 3 February 2025 the company was controlled by Mr. A Collinson by virtue of his majority shareholding,

On 3 February 2025 Heathpatch Limited, a company incorporated in England became the ultimate parent company, by virtue of their 85% shareholding.

The largest and smallest group of undertakings for which group accounts have been drawn up is headed by Heathpatch Limited, copies of the group accounts can be obtained from Companies House or at the company's registered office.