Premier Waste (UK) Plc - Limited company accounts 20.1

REGISTERED NUMBER: 03565632 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2019

for

PREMIER WASTE (UK) PLC

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Income and Retained Earnings

6

Balance Sheet

7

Cash Flow Statement

8

Notes to the Cash Flow Statement

9

Notes to the Financial Statements

10

Directors:

D Courtney

P Courtney

Secretary:

D Courtney

Registered office:

5-6 Greenfield Crescent

Eggbaston

Birmingham

West Midlands

B15 3BE

Business address:

209-211 Walsall Road

Perry Barr

Birmingham

B42 1BS

Registered number:

03565632 (England and Wales)

Auditors:

Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

B15 3BE

Bankers:

Lloyds Bank Plc

P O Box 46

The Bridge

Walsall

West Midlands

WS1 1LU

The directors present their strategic report for the year ended 31 December 2019.

Review of business

We aim to present a balanced and comprehensive review of the development and performance of our business during

the period and its position at the period end. Our review is consistent with the size and non-complex nature of our

business and is written in the context of the risks and uncertainties we face.

There has been no change in the principal activities of the company during the period.

We consider that our key performance indicators are those that communicate the financial performance and strength

of the company as a whole, these being turnover, gross margin and return on capital employed.

Turnover has increased by 2% compared to the previous period. Gross margin has increased to 37.77% (2018

33.50%).

Overall there has been an operating profit of £102,414 (2018 £720,231) and a profit before tax of £74,493 (2018

£708,167). After taxation, £69,224 has been added to reserves.

Return on capital employed has reduced to 3.98% (2018 31.80%). Return on capital employed is calculated as profit

before exceptional items, interest and tax divided by capital employed, which constitutes total assets less current

liabilities.

Principal risks and uncertainties

As for many businesses of our size, the business environment in which we operate continues to be challenging. The

market is highly competitive and margins continue to be under pressure. We are of course subject to world economic

patterns and the level of activity within our economy.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business

may be subject to unforseen future events outside our control.

Section 172(1) statement

The directors consider that the company has acted in the best interests of its shareholders during the period under

review.

Engagement with employees

The company has fewer than 250 employees and so applies the exemption from the requirement to make disclosures

regarding employee engagement policies.

Development and performance

We consider that the financial position of the company at the period end is satisfactory, with adequate cash resources.

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

On behalf of the board:

D Courtney - Director

30 June 2020

The directors present their report with the financial statements of the company for the year ended 31 December 2019.

Principal activity

The principal activity of the company continues to be that of waste disposal.

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Directors

The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this

report.

D Courtney

P Courtney

Financial instruments

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are

monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Statement of directors' responsibilities

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). 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.

Statement as to disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Auditors

In accordance with the company's articles, a resolution proposing that Haines Watts Birmingham LLP be reappointed

as auditor of the company will be put at a General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to

small companies.

On behalf of the board:

D Courtney - Director

30 June 2020

Opinion

We have audited the financial statements of Premier Waste (UK) Plc (the 'company') for the year ended

31 December 2019 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow

Statement and Notes to the Cash Flow Statement, 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:

-	give a true and fair view of the state of the company's affairs as at 31 December 2019 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.

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 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 opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

However, not all future events or conditions can be predicted. At the time of approval of this report, the COVID-19 viral

pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of

outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers,

suppliers, and wider economy. The directors' view on te impact of COVID-19 is disclosed in the accounting policies

note.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the

Auditors 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the

financial statements or a material misstatement of the other information. 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 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.

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 identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Lee Meredith ACA (Senior Statutory Auditor)

for and on behalf of Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

B15 3BE

30 June 2020

Turnover

3

8,848,179

8,638,606

Cost of sales

(5,505,948

)

(5,744,295

)

Gross profit

3,342,231

2,894,311

Administrative expenses

(3,258,971

)

(2,193,825

)

83,260

700,486

Other operating income

4

19,154

19,745

Operating profit

6

102,414

720,231

Interest payable and similar expenses

7

(27,921

)

(12,064

)

Profit before taxation

74,493

708,167

Tax on profit

8

(5,269

)

(130,922

)

Profit for the financial year

69,224

577,245

Retained earnings at beginning of year

1,660,889

1,083,644

Retained earnings at end of year

1,730,113

1,660,889

Fixed assets

Tangible assets

9

1,900,794

1,390,888

Current assets

Debtors

10

2,468,302

1,778,828

Cash at bank and in hand

2,129,806

3,309,048

4,598,108

5,087,876

Creditors

Amounts falling due within one year

11

3,922,490

4,214,123

Net current assets

675,618

873,753

Total assets less current liabilities

2,576,412

2,264,641

Creditors

Amounts falling due after more than one year

12

(657,433

)

(420,155

)

Provisions for liabilities

15

(138,866

)

(133,597

)

Net assets

1,780,113

1,710,889

Capital and reserves

Called up share capital

16

50,000

50,000

Retained earnings

17

1,730,113

1,660,889

Shareholders' funds

1,780,113

1,710,889

The financial statements were approved by the Board of Directors and authorised for issue on 30 June 2020 and were signed on its behalf by:

D Courtney - Director

Cash flows from operating activities

Cash generated from operations

1

(582,773

)

624,144

Interest element of hire purchase payments paid

(27,922

)

(12,064

)

Net cash from operating activities

(610,695

)

612,080

Cash flows from investing activities

Purchase of tangible fixed assets

(265,861

)

(221,354

)

Sale of tangible fixed assets

74,307

52,225

Net cash from investing activities

(191,554

)

(169,129

)

Cash flows from financing activities

Capital repayments in year

(376,993

)

(184,387

)

Net cash from financing activities

(376,993

)

(184,387

)

(Decrease)/increase in cash and cash equivalents

(1,179,242

)

258,564

Cash and cash equivalents at beginning of year

2

3,309,048

3,050,484

Cash and cash equivalents at end of year

2

2,129,806

3,309,048

1.	Reconciliation of profit before taxation to cash generated from operations

2019

2018

£

£

Profit before taxation

74,493

708,167

Depreciation charges

473,571

345,263

(Profit)/loss on disposal of fixed assets

(11,197

)

18,493

Government grants

(19,154

)

(19,745

)

Finance costs

27,921

12,064

545,634

1,064,242

Increase in trade and other debtors

(689,474

)

(51,487

)

Decrease in trade and other creditors

(438,933

)

(388,611

)

Cash generated from operations

(582,773

)

624,144

2.	Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Year ended 31 December 2019

31/12/19

1/1/19

£

£

Cash and cash equivalents

2,129,806

3,309,048

Year ended 31 December 2018

31/12/18

1/1/18

£

£

Cash and cash equivalents

3,309,048

3,050,484

3.	Analysis of changes in net funds

Other

non-cash

At 1/1/19

Cash flow

changes

At 31/12/19

£

£

£

£

Net cash

Cash at bank

and in hand

3,309,048

(1,179,242

)

2,129,806

3,309,048

(1,179,242

)

2,129,806

Debt

Finance leases

(578,039

)

376,993

-

(981,774

)

(578,039

)

376,993

-

(981,774

)

Total

2,731,009

(802,249

)

-

1,148,032

1.	Statutory information

Premier Waste (UK) Plc is a private company , registered in England and Wales. The company's registered

number and registered office address can be found on the Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard

applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary

amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting

policies adopted are set out below.

The company is a 100% owned subsidiary of Premier Waste (UK) Holdings Plc.

The financial statements of the company are consolidated in the financial statements of the parent company.

These consolidated financial statements are available from Companies House, Crown Way, Maindy, Cardiff,

CF14 3UZ.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company

has adequate resources to continue in operational existence for the foreseeable future. In making this

assessment the directors are required to consider a period of at least 12 months from the date of approval of

the financial statements.

The impact of COVID-19

In response to the COVID-19 pandemic, the directors have further considered their cash flow projections to take

into account the impact on the business of possible scenarios brought on by the impact of COVID-19,

alongside the measures that they can take to mitigate the impact. Based on these assessments, and given the

measures that could be undertaken to mitigate the current adverse conditions,together with the current

resources available, the directors have undertaken to conclude that they can continue to adopt the going

concern basis in preparing the financial statements.

Significant judgements and estimates

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.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services

provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair

value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is

the present value of the future receipts. The difference between the fair value of the consideration and the

nominal amount received is recognised as interest income.

Revenue is recognised when the significant risks and rewards of ownership have passed to the customer

(usually on dispatch of the goods or service), the amount of revenue can be measured reliably, it is probable

that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be

incurred in respect of the transaction can be measured reliably. Where the outcome cannot be estimated

reliably, revenue is recognised only to the extent that it is recoverable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Long leasehold

-

10% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of

depreciation and any impairment losses.

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.

Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to

determine whether there is any indication that those assets have suffered an impairment loss. If any such

indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the

impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the

company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the

estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects

current market assessments of the time value of money and the risks specific to the asset for which the

estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,

the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment

loss is recognised immediately in profit or loss account, unless the relevant asset is carried at a revalued

amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to

apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating

unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount

does not exceed the carrying amount that would have been determined had no impairment loss been

recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised

immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the

reversal of the impairment loss is treated as a revaluation increase.

Cash at bank and in hand

Cash at bank and in hand 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.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable

assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are

accrued. Grants relating to an asset are recognised in income systemically over the assets expected useful life.

If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the

asset's carrying amount.

Government grants relating to property, plant and equipment are treated as deferred income and released to

profit or loss over the expected useful lives of the assets concerned.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12

‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the

contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when

there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net

basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction

price including transaction costs and are subsequently carried at amortised cost using the effective interest

method unless the arrangement constitutes a financing transaction, where the transaction is measured at the

present value of the future receipts discounted at a market rate of interest. Financial assets classified as

receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or

joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are

subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that

investments in equity instruments that are not publicly traded and whose fair values cannot be measured

reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss account are assessed for indicators

of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that

occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If

an asset is impaired, the impairment loss is the difference between the carrying amount and the present value

of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is

recognised in profit or loss account.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was

recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed

what the carrying amount would have been, had the impairment not previously been recognised.

The impairment reversal is recognised in profit or loss account.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or

are settled, or when the company transfers the financial asset and substantially all the risks and rewards of

ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the

asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets

of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies

and preference shares that are classified as debt, are initially recognised at transaction price unless the

arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of

the future receipts discounted at a market rate of interest.

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

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Accounts 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 payables are recognised initially at transaction

price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial

instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and

are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit

or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is

a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair

value through profit or loss. Debt instruments may be designated as being measured at fair value though profit

or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their

performance evaluated on a fair value basis in accordance with a documented risk management or investment

strategy.

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets

of the company after deducting all of its liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or

cancelled.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion

of the company.

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.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks

and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of

inception and the present value of the minimum lease payments. The related liability is included in the balance

sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements.

The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining

balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss

on a straight line basis over the term of the relevant lease except where another more systematic basis is more

representative of the time pattern in which economic benefits from the leases asset are consumed.

Pension costs and other post-retirement benefits

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

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.

3.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2019

2018

£

£

Waste management services

8,848,179

8,638,606

8,848,179

8,638,606

4.	Other operating income

2019

2018

£

£

Government grants

19,154

19,745

5.	Employees and directors

2019

2018

£

£

Wages and salaries

1,099,031

835,440

Social security costs

103,848

76,194

Other pension costs

19,594

10,687

1,222,473

922,321

The average number of employees during the year was as follows:

2019

2018

Administrative

4

4

Direct

34

27

Directors

2

2

40

33

2019

2018

£

£

Directors' remuneration

-

-