IRIS Accounts Production
v21.1.0.652
07566881
Board of Directors
1.8.20
31.7.21
31.7.21
The principal activities of the Company in the year under review were those of:
++
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REGISTERED NUMBER:
07566881
(England and Wales)
|
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND
|
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021
|
PREMIER WASTE RECYCLING LIMITED
|
|
Report of the Directors
|
4
|
|
|
Independent Auditor's Report
|
6
|
|
|
Statement of Income and Retained Earnings
|
10
|
|
|
Statement of Financial Position
|
11
|
|
|
Notes to the Financial Statements
|
12
|
|
|
REGISTERED OFFICE:
|
Fordbridge Lane
|
|
REGISTERED NUMBER:
|
07566881 (England and Wales)
|
|
INDEPENDENT AUDITOR:
|
BDO LLP, statutory auditor
|
The Directors present their Strategic report for Premier Waste Recycling Limited ("the Company") for the
year-ended 31 July 2021.
|
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
|
The principal activities of the Company in the year under review were those of:
|
-
|
|
the collection, disposal and management of commercial waste and recyclable materials; and
|
|
-
|
|
the provision of waste and recyclable material containers.
|
|
The Company is part of the H W Martin Group of Companies ("the Group") headed by H W Martin Holdings
Limited.
|
The Company's profit for the financial year is £999,495 (2020:£ 660,589 profit).
|
The Company's key financial and performance indicators for the year are:
|
1.
|
|
Turnover increased by 7% to £10.9 million (2020: decreased by 12% to £10.2 million); and
|
|
2.
|
|
Profit before tax margin increased by 3 percentage points to 10.9% from 7.9%.
|
|
The Group has continued to invest in the Company fleet and technology with advanced equipment providing
accurate real time reporting for improved Company and customer visibility.
|
The ongoing COVID-19 pandemic has reduced demand from a section of the client base, however demand
continues to recover and it is anticipated will reach pre-pandemic levels in early 2022. H W Martin Waste
Limited, the parent company, will continue to have a high demand for the Company's services.
|
Business opportunities arise from the Company's close working relationship with H W Martin Waste Limited.
The policy pursued by the Martin Group board of directors to authorise capital expenditure to take advantage
of market opportunities will continue and is demonstrated by the ongoing vehicle fleet upgrade program.
|
The Company continues to look to ways to improve its environmental performance and reduce the
environmental impact of its activities and remains committed to a management system conforming to the
14001 Environmental Standard.
|
PRINCIPAL RISKS AND UNCERTAINTIES
|
The identification, assessment and management of opportunities and associated risks are an integral element
of the business. Principal risks are:
|
Legislation and regulation
|
|
The impact of new legislation and regulation on operations may potentially
increase costs. This risk is considered as a part of the tender approval
process. Many contracts include provisions which allow the Company to pass
increased costs so arising to the Client.
|
|
Competitive risk
|
|
The Company continues to maintain a very competitive cost base to give the
best possible commercial advantage and actively targets long-term contracts.
|
|
Recyclable material
market prices
|
|
The Group's waste and recycling activities are subject to fluctuating returns as
prices of recyclable material vary due to worldwide demand. This risk is
considered during the tender process and mitigated by a focus on securing
contracts which deliver service rather than material lead returns.
|
|
Health and safety
|
|
The Company acknowledges that its employees work within a hazardous
environment and training is given to reflect and mitigate this risk. Policies and
procedures are continually monitored and reviewed. The Group maintains its
commitment to the 45001 Safety Management System.
|
|
Financial risk
|
|
The main risk arising from the Company's financial instruments is liquidity
risk. This risk is managed by maintaining a high cash reserve and by capital
funding from the Group providing sufficient liquidity to finance the Company's
operations and to meet unanticipated costs.
|
|
N C Faulconbridge - Director
|
The Directors present their report with the financial statements of the Company for the year-ended
31 July 2021.
|
No dividends will be distributed for the year ended 31 July 2021.
|
The Company is stable and will continue to invest in its existing operations going forwards so as to maximise
revenues, profits and cash flows.
|
The directors shown below have held office during the whole of the period from 1 August 2020 to the date of
this report.
|
The Directors are continuing to monitor the potential impact on its customers and suppliers, market access
and possible effects on foreign currency exchange rates.
|
The Company funds both day-to-day operations and longer-term strategic development from its liquid
resources, including working capital generated from operations. The Directors have considered the level of
the liquid resources and the expected future profitability of both the Company and the wider Group, and are
satisfied that, under anticipated trading conditions, there are sufficient available resources for the Company to
meet its trading requirements through a period of at least 12 months from the date of signing these financial
statements to 31 January 2023. For this reason, they have concluded that it is appropriate to use the going
concern basis on presenting these financial statements.
|
Since 31 December 2019, the spread of COVID-19 has severely impacted many local economies around the
globe. The Directors have considered the reasonably plausible impact of the COVID-19 outbreak on the
Company's trading and cash flows. The Directors consider the potential impact of COVID-19 to be minimal on
the grounds of the Company's performance since the outbreak began and post year-end, the type of service
they provide as a Company and the continued liquidity support of the Group.
|
ENGAGEMENT WITH EMPLOYEES
|
A policy of equal opportunity employment is followed at all times by the Company. During the year, the policy
of providing employees with information about the Company has been continued through internal media
methods in which employees have also been encouraged to present their suggestions and views on the
Company's performance. Regular meetings are held between local management and employees to allow a
free flow of information and ideas.
|
The Company gives full consideration to applications for employment from disabled persons where the
requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing
employees become disabled, it is the Company's policy wherever practicable to provide continuing
employment under normal terms and conditions and to provide training and career development and
promotion to disabled employees wherever appropriate.
|
DIRECTORS' RESPONSIBILITIES STATEMENT
|
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including
Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of
Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the
Company for that period. In preparing these financial statements, the directors are required to:
|
-
|
select suitable accounting policies and then apply them consistently;
|
-
|
make judgements and accounting estimates that are reasonable and prudent;
|
-
|
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Company will continue in business.
|
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain
the Company's transactions and disclose with reasonable accuracy at any time the financial position of the
Company and 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.
|
The directors are responsible for the maintenance and integrity of the corporate and financial information
included on the Company's website. Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other jurisdictions.
|
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITOR
|
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the
Companies Act 2006) of which the Company's auditor is unaware, and each director has taken all the steps
that he ought to have taken as a director in order to make himself aware of any relevant audit information and
to establish that the Company's auditor is aware of that information.
|
The auditor, BDO LLP, statutory auditor, will be proposed for re-appointment at the forthcoming Annual
General Meeting.
|
N C Faulconbridge - Director
|
Opinion on the financial statements
|
In our opinion the financial statements:
|
-
|
|
give a true and fair view of the state of the Company's affairs as at 31 July 2021 and of its profit for
the year then ended;
|
|
-
|
|
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
|
|
-
|
|
have been prepared in accordance with the requirements of the Companies Act 2006.
|
|
We have audited the financial statements of Premier Waste Recycling Limited ("the Company") for the year
ended 31 July 2021 which comprise the Statement of Income and Retained Earnings, Statement of Financial
Position 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).
|
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 believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
|
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.
|
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.
|
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. 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.
|
Other Companies Act 2006 reporting
|
In our opinion, based on the work undertaken in the course of the audit:
|
-
|
|
the information given in the Strategic report and the Report of the Directors for the financial year for
which the financial statements are prepared is consistent with the financial statements; and
|
|
-
|
|
the Strategic report and the Report of the Directors have been prepared in accordance with
applicable legal requirements.
|
|
In the light of the knowledge and understanding of the Company and its environment obtained in the course of
the audit, we have not identified material misstatements in the Strategic report or the Report of the Directors.
|
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
|
-
|
|
adequate accounting records have not been kept, or returns adequate for our audit have not been
received from branches not visited by us; or
|
|
-
|
|
the financial statements are not in agreement with the accounting records and returns; or
|
|
-
|
|
certain disclosures of Directors' remuneration specified by law are not made; or
|
|
-
|
|
we have not received all the information and explanations we require for our audit.
|
|
Responsibilities of Directors
|
As explained more fully in the Directors' Responsibilities Statement, 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.
|
Extent to which the audit was capable of detecting irregularities, including fraud
|
|
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:
|
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and
non-compliance with laws and regulations, our procedures included the following:
|
-
|
|
We made enquiries of management and the directors concerning the Company's 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 had knowledge of any
actual, suspected or alleged fraud; and
|
|
|
-
|
|
the internal controls established to mitigate risks related to fraud or non-compliance with
laws and regulations.
|
|
|
We corroborated our enquires through the review of board minutes.
|
|
-
|
|
We obtained an understanding of the legal and regulatory frameworks applicable to the Company
based on our understanding of the business, sector experience and discussions with management.
The most significant considerations for the Company are compliance with UK Accounting Standards,
the Companies Act 2006, corporate taxes, VAT legislation, employment taxes and health and safety
legislation.
|
|
-
|
|
We discussed amongst the engagement team to assess how and where fraud might occur in the
financial statements, any potential indicators of fraud and non-compliance with laws and regulation.
|
|
Based on our understanding of the environment and assessment of the incentive and opportunity for fraud
and non-compliance with laws and regulations gained from the above work we designed and executed the
following procedures:
|
-
|
|
We reviewed correspondence with the relevant authorities to identify any irregularities or instances of
non-compliance with laws and regulations.
|
|
-
|
|
We tested the appropriateness of accounting journals and other adjustments made in the preparation
of the financial statements. We obtained a complete population of all journals in the year and test any
which we considered were indicative of management override.
|
|
-
|
|
We reviewed the Company's accounting policies for non-compliance with relevant standards. Our
work also included considering significant accounting estimates for evidence of misstatement or
possible bias and testing any significant transactions that appeared to be outside the normal course
of business.
|
|
-
|
|
We also tested manual journals posted to revenue that were either material or fell outside of our
expectations based on our understanding of the Company, agreeing them to supporting
documentation to check that they were appropriate, correctly recorded and supported by appropriate
evidence.
|
|
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement
team members, and remained alert to any indications of fraud or non-compliance with laws and regulations
throughout the audit.
|
Our audit procedures were designed to respond to risks of material misstatement in the financial statements,
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,
misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.
|
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.
|
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.
|
Gareth Singleton (Senior Statutory Auditor)
|
for and on behalf of
BDO LLP, statutory auditor |
BDO LLP is a limited liability partnership registered in England and Wales (with
|
registered number OC305127).
|
TURNOVER
|
4
|
10,893,646
|
|
10,204,948
|
|
|
Cost of sales
|
(8,060,800
|
) |
(7,771,978
|
) |
|
GROSS PROFIT
|
2,832,846
|
|
2,432,970
|
|
|
Administrative expenses
|
(1,640,371
|
) |
(1,618,736
|
) |
|
OPERATING PROFIT
|
1,192,475
|
|
814,234
|
|
|
Interest payable and similar expenses
|
7
|
(10,287
|
) |
(10,598
|
) |
|
PROFIT BEFORE TAXATION
|
8
|
1,182,188
|
|
803,636
|
|
|
Tax on profit
|
10
|
(182,693
|
) |
(143,047
|
) |
|
PROFIT FOR THE FINANCIAL YEAR
|
999,495
|
|
660,589
|
|
|
Retained earnings at beginning of year
|
3,914,907
|
|
3,254,318
|
|
|
RETAINED EARNINGS AT END OF
YEAR
|
4,914,402
|
|
3,914,907
|
|
|
Tangible assets
|
12
|
1,589,808
|
|
1,993,974
|
|
|
Debtors: amounts falling due within one
year
|
14
|
1,840,184
|
|
1,803,133
|
|
|
Cash at bank
|
3,331,450
|
|
3,333,934
|
|
|
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
|
15
|
1,880,831
|
|
3,252,886
|
|
|
NET CURRENT ASSETS
|
3,329,594
|
|
1,925,933
|
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES
|
4,919,402
|
|
3,919,907
|
|
|
Called up share capital
|
17
|
5,000
|
|
5,000
|
|
|
Retained earnings
|
18
|
4,914,402
|
|
3,914,907
|
|
|
SHAREHOLDERS' FUNDS
|
4,919,402
|
|
3,919,907
|
|
|
The financial statements were approved by the Board of Directors and authorised for issue on
17 December 2021 and were signed on its behalf by:
|
N C Faulconbridge - Director
|
|
Premier Waste Recycling 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.
|
|
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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
|
The Company funds both day-to-day operations and longer-term strategic development from its liquid
resources, including working capital generated from operations. The Directors have considered the
level of the liquid resources and the expected future profitability of both the Company and the wider
Group, and are satisfied that, under anticipated trading conditions, there are sufficient available
resources for the Company to meet its trading requirements through a period of at least 12 months
from the date of signing these financial statements to 31 January 2023. For this reason, they have
concluded that it is appropriate to use the going concern basis on presenting these financial
statements.
|
|
Financial Reporting Standard 102 - reduced disclosure exemptions
|
|
The Company has taken advantage of the following disclosure exemptions in preparing these financial
statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and
Republic of Ireland":
|
|
•
|
the requirements of Section 7 Statement of Cash Flows;
|
|
•
|
the requirement of paragraph 3.17(d);
|
|
•
|
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
|
|
•
|
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
|
|
•
|
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
|
|
•
|
the requirement of paragraph 33.7.
|
|
Turnover is measured as the fair value of the consideration received or receivable, excluding
discounts, rebates, value added tax and other sales taxes.
|
|
The Company offers various waste management services. Turnover is determined by reference to the
value of the work carried out to date in the accounting period in which the services are rendered and
when the outcome of the contract can be estimated reliably. No profit is recognised until the contract
has advanced to a stage where the total profit can be assessed with reasonable certainty. Provision is
made for the full amount of foreseeable losses on contracts.
|
|
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and any
accumulated impairment losses. Cost includes the original purchase price and expenditure that is
directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by management.
|
|
Depreciation is charged so as to allocate the cost of assets less their residual value over the estimated
useful lives. Depreciation is provided on the following basis:
|
|
Freehold property
|
|
5%
straight line
|
|
|
|
Plant & machinery
|
|
20%
straight line
|
|
|
|
Motor vehicles
|
|
20%
straight line
|
|
|
|
Office equipment
|
|
20%
straight line
|
|
|
|
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted
prospectively if appropriate, or if there is an indication of a significant change since the last reporting
date.
|
|
The carrying amount of any replacement component is derecognised. Major components are treated
as a separate asset where they have significantly different patterns of consumption of economic
benefits and are depreciated separately over its useful life.
|
|
Repairs, maintenance and minor inspection costs are expenses as incurred.
|
|
Tangible assets are derecognised on disposal or when no future economic benefits are expected.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount
and are recognised in the Income Statement.
|
|
Impairment of non-financial assets
|
|
At each statement of financial position date, non-financial assets not carried at fair value are assessed
to determine whether there is an indication that the asset (or asset's cash generating unit ("CGU"))
may be impaired. If there is such an indication, the recoverable amount of the asset (or asset's CGU)
is compared to the carrying value of the asset (or asset's CGU).
|
|
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less
costs to complete and sell. Stocks are recognised as an expense in the period in which the related
revenue is recognised.
|
|
Cost is based on the cost of purchase on a first in, first out basis. Cost includes the purchase price,
including taxes and duties and transport and handling directly attributable to bringing the inventory to its
present location and condition. The cost of work-in-progress and finished goods includes design costs,
raw materials, direct labour and other direct costs and related production overheads.
|
|
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying
amount is reduced to its selling price less costs to complete and sell. The impairment loss is
recognised immediately in the Income Statement. Where a reversal of the impairment is recognised,
the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in
the Income Statement.
|
|
Cash and cash equivalents
|
|
Cash and cash equivalents includes cash in hand, deposits held at call with financial institutions
repayable without penalty on notice of not more than 24 hours, other short-term highly liquid
investments with original maturities of three months or less from the date of acquisition that are readily
convertible to known amounts of cash with insignificant risk of change in value.
|
|
The Company only enters into basic financial instruments transactions that result in the recognition of
basic financial assets and liabilities. The Company has chosen to adopt the Section 11 of FRS 102 in
respect of financial instruments.
|
|
Basic financial assets, including trade and other debtors and cash and bank balances, are initially
recognised at transaction price, 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.
|
|
Such assets are subsequently carried at amortised cost using the effective interest method.
|
|
At the end of each reporting period, financial assets measured at amortised cost are assessed for
objective evidence of impairment. If an asset is impaired, the impairment loss is the difference
between the carrying amount and the present value of the estimated cash flows discounted at the
asset's original effective interest rate. The impairment loss is recognised in the Income Statement.
|
|
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 the Income Statement.
|
|
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset
expire or are settled or (b) substantially all the risks and rewards of the ownership of the asset are
transferred to another party or (c) control of the asset has been transferred to another party who has
the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional
restrictions.
|
|
ii. Financial liabilities
|
|
|
Basic financial liabilities, including trade and other creditors 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.
|
|
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. Trade creditors 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 rate method.
|
|
Financial liabilities are derecognised when the liability is extinguished (i.e. when the contractual
obligation is discharged, cancelled or expires).
|
|
Financial assets and liabilities are offset and the net amount reported in the statement of financial
position when there is an 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.
|
|
Taxation expense for the year comprises current and deferred tax recognised in the reporting period.
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. In this case tax is also recognised in other
comprehensive income or directly in equity respectively.
|
|
Current or deferred taxation assets and liabilities are not discounted.
|
|
Current tax is the amount of tax payable in respect of the taxable profit for the year or prior years. Tax
is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the
statement of financial position date.
|
|
Management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
|
|
Deferred tax arises from timing differences that are differences between taxable profits and total
comprehensive income as stated in the financial statements. These 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 recognised in respect of all timing differences that have originated but not reversed at
the statement of financial position date, except that:
|
|
-
|
|
the recognition of deferred tax assets is limited to the extent that it is probable that they will
be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
|
|
|
|
-
|
|
any deferred tax balances are reversed if and when all conditions for retaining associated tax
allowances have been met.
|
|
|
|
Deferred tax balances are not recognised in respect of permanent differences except in respect of
business combinations, when deferred tax is recognised on the differences between the fair values of
assets acquired and the future tax deductions available for them and the differences between the fair
value of liabilities acquired and the amount that will be assessed for tax.
|
|
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.
|
|
The Company provides a range of benefits to employees, including paid holiday arrangements and
defined contribution pension plans.
|
|
Short-term benefits, including holiday pay and other similar non-monetary benefits, are recognised as
an expense in the period in which the service is received.
|
|
ii. Defined contribution pension plans
|
|
|
The company operates a defined contribution pension scheme for its employees. A defined
contribution plan is a pension plan under which the Company pays fixed contributions into a separate
entity. Once the contributions have been paid, the Company has no further payment obligations.
Contributions payable to the company's pension scheme are charged to the Income Statement in the
period to which they relate. Amounts not paid are shown in other creditors as a liability in the statement
of financial position. The assets of the plan are held separately from the Company in independently
administered funds.
|
3.
|
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
|
|
Preparation of the financial statements did not require management to make any significant
judgements or estimates.
|
|
The turnover and profit before taxation were derived solely from continuing operations in the United
Kingdom and are attributable to the principal activities of the Company.
|
5.
|
EMPLOYEES AND DIRECTORS
|
|
Wages and salaries
|
2,224,713
|
|
2,314,664
|
|
|
|
Social security costs
|
242,163
|
|
236,693
|
|
|
|
Other pension costs
|
80,619
|
|
90,352
|
|
|
|
The average number of employees during the year was as follows:
|
|
Administration and management |
23
|
|
24
|
|
|
|
None of the Directors received any remuneration from the Company for year-ended 31 July 2021
(2020: £Nil). All of the Directors were also directors of other group companies, and their emoluments
for services to the Group are borne by and disclosed in the financial statements of the company that
they are employed by. The Directors believe that it is not practicable to apportion their remuneration
between qualifying services for this company and other Group companies in which they hold office.
|
7.
|
INTEREST PAYABLE AND SIMILAR EXPENSES
|
|
|
Bank interest
|
10,287
|
|
10,598
|
|
|
8.
|
PROFIT BEFORE TAXATION
|
|
The profit is stated after charging/(crediting):
|
|
Depreciation - owned assets
|
604,696
|
|
736,783
|
|
|
|
Profit on disposal of fixed assets
|
(25,537
|
) |
(45,404
|
) |
|
9.
|
AUDITORS' REMUNERATION
|
|
Fees payable to the Company's auditor for the audit of the
Company's financial statements
|
6,000
|
|
4,300
|
|
|
|
Taxation compliance services
|
2,750
|
|
1,400
|
|
|
|
Analysis of the tax charge
|
|
The tax charge on the profit for the year was as follows:
|
|
UK corporation tax
|
249,905
|
|
180,247
|
|
|
|
Deferred tax
|
(67,212
|
) |
(37,200
|
) |
|
|
Tax on profit
|
182,693
|
|
143,047
|
|
|
|
UK corporation tax has been charged at
19
% (2020 -
19
%).
|
|
Reconciliation of total tax charge included in profit and loss
|
|
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The
difference is explained below:
|
|
Profit before tax
|
1,182,188
|
|
803,636
|
|
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
19
% (2020 -
19
%)
|
224,616
|
|
152,691
|
|
|
|
Expenses not deductible for tax purposes
|
126
|
|
3,515
|
|
|
|
Depreciation in excess of capital allowances
|
6,722
|
|
-
|
|
|
|
Adjustments to tax charge in respect of previous periods
|
48
|
|
(1,278
|
) |
|
|
Remeasurement of deferred tax for changes in tax rates
|
(48,819
|
) |
-
|
|
|
|
Deferred tax not recognised
|
-
|
|
(212
|
) |
|
|
Other differences leading to an increase/(decrease) in the tax
charge
|
-
|
|
(11,669
|
) |
|
|
Total tax charge
|
182,693
|
|
143,047
|
|
|
|
In March 2020, the Finance Bill 2020 was substantively enacted which maintained the corporation tax
rate at 19% and in May 2021 the rate was increased to 25% in the Finance Bill 2021, effective from
April 2023. Deferred taxes at the balance sheet date have been measured using the enacted tax rate
and reflected in these financial statements.
|
11.
|
PRIOR YEAR ADJUSTMENT
|
|
Tangible fixed assets that were disposed of in prior years were included in the cost and accumulated
depreciation for the year to 31 July 2020 in error. The assets in question had a net book value of £nil.
The opening balances of cost and accumulated depreciation have therefore been reduced by
£117,339. The net effect on the opening and closing net book value of tangible fixed assets is £nil.
|
12.
|
TANGIBLE FIXED ASSETS
|
|
Freehold
|
|
Plant and
|
|
Motor
|
|
Computer
|
|
|
property
|
|
machinery
|
|
vehicles
|
|
equipment
|
|
Totals
|
|
At 1 August 2020
|
492,140
|
|
1,621,692
|
|
3,887,005
|
|
57,040
|
|
6,057,877
|
|
|
|
Additions
|
67,500
|
|
29,659
|
|
131,716
|
|
-
|
|
228,875
|
|
|
|
Disposals
|
-
|
|
-
|
|
(426,392
|
) |
-
|
|
(426,392
|
) |
|
|
At 31 July 2021
|
559,640
|
|
1,651,351
|
|
3,592,329
|
|
57,040
|
|
5,860,360
|
|
|
|
At 1 August 2020
|
16,874
|
|
1,542,875
|
|
2,463,734
|
|
40,420
|
|
4,063,903
|
|
|
|
Charge for year
|
24,276
|
|
33,030
|
|
541,807
|
|
5,583
|
|
604,696
|
|
|
|
Eliminated on disposal
|
-
|
|
-
|
|
(398,047
|
) |
-
|
|
(398,047
|
) |
|
|
At 31 July 2021
|
41,150
|
|
1,575,905
|
|
2,607,494
|
|
46,003
|
|
4,270,552
|
|
|
|
At 31 July 2021
|
518,490
|
|
75,446
|
|
984,835
|
|
11,037
|
|
1,589,808
|
|
|
|
At 31 July 2020
|
475,266
|
|
78,817
|
|
1,423,271
|
|
16,620
|
|
1,993,974
|
|
|
|
Raw materials
|
38,791
|
|
41,752
|
|
|
|
Stocks are stated after provision for impairment of £nil (2020: £nil), being the write-down of
slow-moving and obsolete stock to their net realisable value.
|
14.
|
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|
|
|
Trade debtors
|
1,405,481
|
|
1,343,592
|
|
|
|
Amounts owed by group undertakings
|
144,312
|
|
185,823
|
|
|
|
Deferred tax asset
|
203,412
|
|
136,200
|
|
|
|
Prepayments and accrued income
|
86,979
|
|
117,216
|
|
|
|
Amounts owed by group undertakings are interest free and repayable on demand.
|
|
Trade debtors are stated after provisions for impairment of £19,216 (2020: £18,463). Impairment
losses recognised in the Income Statement during the year amounted to £418 (2020: £35,08135,080
recognised).
|
15.
|
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|
|
|
Trade creditors
|
642,667
|
|
526,589
|
|
|
|
Amounts owed to group undertakings
|
724,574
|
|
2,110,350
|
|
|
|
Social security and other taxes
|
55,336
|
|
61,399
|
|
|
|
Accruals and deferred income
|
457,326
|
|
463,785
|
|
|
|
Amounts owed to group undertakings are interest free and repayable on demand.
|
|
Balance at 1 August 2020
|
(136,200
|
) |
|
|
Credit to Income Statement during year
|
(67,212
|
) |
|
|
Balance at 31 July 2021
|
(203,412
|
) |
|
|
The deferred tax asset is made up as follows:
|
|
Accelerated capital allowances
|
|
(203,412
|
) |
(136,200
|
) |
|
17.
|
CALLED UP SHARE CAPITAL
|
|
Allotted, issued and fully paid:
|
|
Number:
|
Class:
|
Nominal
|
2021
|
2020
|
|
|
5,000
|
Ordinary
|
£1
|
5,000
|
|
5,000
|
|
|
|
At 1 August 2020
|
3,914,907
|
|
|
|
Profit for the year
|
999,495
|
|
|
|
At 31 July 2021
|
4,914,402
|
|
|
|
Retained earnings includes all current and prior period retained profits and losses.
|
|
The company operates a defined contribution pension scheme. The assets of the scheme are
administered by trustees in funds independent from those of the Company.
|
|
The pension cost charges represents contributions payable by the Company into the fund and
amounted to £80,619 (2020: £90,352).
|
|
Contributions totalling £Nil (2020: £Nil) were payable to the fund at the balance sheet date.
|
20.
|
RELATED PARTY DISCLOSURES
|
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102
'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related
party transactions with wholly owned subsidiaries within the group.
|
21.
|
ULTIMATE CONTROLLING PARTY
|
|
The controlling party is H W Martin Waste Limited. |
|
The ultimate controlling party is
H W Martin Holdings Limited. |
|
The largest and smallest group of undertakings for which group accounts have been drawn up is that
headed by
H W Martin Holdings Limited
, which is incorporated in
England and Wales
.
|
|
Consolidated financial statements can be obtained from
H W Martin Holdings Limited, Fordbridge Lane, Blackwell, Alfreton, Derbyshire, DE55 5JY
.
|