Coastal UK Group Limited

Contents

Coastal UK Group Limited

Company Information

Coastal UK Group Limited

Strategic Report for the Year Ended 31 March 2025

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

Fair review of the business

The Company and wider Group has continued to perform well despite the challenges of rising costs during the year. A profit before tax of £0.7m was achieved (2024: £0.9m), revenue for the period decreased from the previous year to £5.0m (2024: £5.2m).

The Company and wider Group continued to focus on delivering its strategic plan to maintain diversity through a balance of core services, develop niche markets and services and focus on recycling and recovering natural resources from the material it manages. As our reputation grows, we continue to develop our relationship with the 1700+ clients we currently service. We use our internal reporting system alongside site visits and audits to provide detailed reports and recommendations on how to increase recycling and reduce waste.

The outlook for the coming year remains challenging as the industry faces continued high rises in costs and general economic uncertainty which could impact demands for our services. We will focus on cost management and efficient processing to protect our margins. Our diversified nature, reputation for our environmental values and strong ties to our Devon community continue to hold us in good stead through the continually challenging period ahead.

Further commentary is provided in the financial statements of the ultimate parent company Coastal Recycling Holdings Limited.

Key Performance Indicators

The Directors consider a number of performance measures to assess the Company and wider Group’s success in achieving its objectives. These include key financial performance indicators (revenue, operating profit and maintenance spend, for example) and key non-financial performance indicators (recycling rates, tonnage throughputs and quality, for example).

Coastal UK Group Limited

Strategic Report for the Year Ended 31 March 2025

Principal risks and uncertainties

The Directors do not consider that any material risks or uncertainties to income streams or disposal methods exist within current contractual terms.

In the C&I sector, as mentioned above, the market for recyclable commodities remains volatile and unpredictable. The Company and wider Group has been cautious in its approach to this market and, as stated earlier, believes the ability to successfully compete relies on getting the quality of the output material as high as it can be. This is achieved through working closely with and educating our customers to ensure the right materials are recycled, contamination is kept to a minimum and playing to the strengths of our DMR MRF. We continue to invest in plant to enable us to streamline processes and achieve maximum recovery of recyclate .

In the C&D sector the challenge for continued provision of mixed construction and demolition waste skips without some pre-segregation to avoid contamination remains. This contamination includes ‘fines’ (soil, stone and particles smaller than 50mm) that arise from processing mixed C&D wastes, insulation board, polystyrene and the general change in approach that more general waste is finding its way into mixed C&D skips. We are working with our customers to provide alternative ways of managing particular waste streams (separate bagging and placing in the skips to avoid mixing materials that become difficult to process once mixed). Currently, contaminated fines can only be deposited at non-hazardous landfills and these in Devon are rapidly disappearing leaving greater transport or other costs to manage fines in the future.

Further commentary is provided in the financial statements of the ultimate parent company Coastal Recycling Holdings Limited.

Approved and authorised by the Board on 26 November 2025 and signed on its behalf by:
 

Coastal UK Group Limited

Directors' Report for the Year Ended 31 March 2025

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

Directors of the company

The directors who held office during the year were as follows:

S E P Hadley

E A Delve

Principal activity
The principal activity of the company is the provision of recycling and waste management services for both local authorities and the private sector.

Financial instruments

Objectives and policies

The group's principal financial instruments comprise bank balances, trade debtors, trade creditors and bank loans. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers

Disclosure of information to the auditors

Approved and authorised by the Board on 26 November 2025 and signed on its behalf by:
 

Coastal UK Group Limited

Statement of Directors' Responsibilities

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:

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.

Coastal UK Group Limited

Independent Auditor's Report to the Members of Coastal UK Group Limited

Opinion

We have audited the financial statements of Coastal UK Group Limited (the 'company') for the year ended 31 March 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 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 director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

We have nothing to report in this regard.

Coastal UK Group Limited

Independent Auditor's Report to the Members of Coastal UK Group Limited

Opinion on other matter prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

Auditor Responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Coastal UK Group Limited

Independent Auditor's Report to the Members of Coastal UK Group Limited

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations as relating to breaches around health and safety regulations and breaches of quality control regulations. 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, and relevant tax legislation (Corporation Tax, VAT etc.). We considered the extent to which non-compliance with these laws and regulations may have a material effect on the financial statements.

We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks were related to the overstatement of profit, either through overstating revenue, understating expenditure or management bias in accounting estimates.

Based on this understanding we designed our audit procedures to identify irregularities. Our procedures involved the following:
● Enquiries to members of Senior Management, regarding their knowledge of any non-compliance or potential non-compliance with laws and regulations that could affect the financial statements;
● Review of any health and safety incidents which have been reported under The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (“RIDDOR”) during the period;
● Review of latest ISO certifications confirming compliance following health and safety, environmental and quality management audits conducted by the Regulator;
● Challenging assumptions and judgements made by management in its significant accounting estimates;
● Evaluating the design and implementation of management’s controls designed to prevent and detect irregularities;
● Examining draft tax computations and involving the use of our specialists as required (e.g. VAT);
● Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; and
● Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

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

Coastal UK Group Limited

Independent Auditor's Report to the Members of Coastal UK Group Limited

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.

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Neil Hitchings (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Centenary House
Peninsula Park
Rydon Lane
Exeter
EX2 7XE

27 November 2025

Coastal UK Group Limited

Profit and Loss Account

Year Ended 31 March 2025

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Coastal UK Group Limited

Balance Sheet

31 March 2025

Approved and authorised by the Board on 26 November 2025 and signed on its behalf by:
 

Company Registration Number: 05892189

Coastal UK Group Limited

Statement of Changes in Equity

Year Ended 31 March 2025