S & B Industrial Investments Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04906215 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 March 2020

for

S & B Industrial Investments Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

Miss S R Broadley

Miss S J Broadley

SECRETARY:

Mrs K J Broadley

REGISTERED OFFICE:

39 High Street

Wednesfield

Wolverhampton

West Midlands

WV11 1ST

BUSINESS ADDRESS:

26 Purbrook Road

Monmore Green

Wolverhampton

West Midlands

WV1 2EJ

REGISTERED NUMBER:

04906215 (England and Wales)

AUDITORS:

Crowther Jordan Limited

Chartered Accountants

Statutory Auditors

39 High Street

Wednesfield

Wolverhampton

West Midlands

WV11 1ST

The directors present their strategic report of the company and the group for the year ended 31 March 2020.

REVIEW OF BUSINESS

The results for the financial year and the financial position of the group are shown in the annexed financial statements.

The group continued to operate principally as a UK based waste management and recycling operator. The majority of group operating income is derived from S & B Waste Management & Recycling Limited. Whilst competition remained strong during the year and turnover suffered during March as a result of the Covid-19 pandemic, turnover increased overall by approximately 5.5%. Operating profits rose sharply due to more efficient work practices and the containment of costs. Net profit before tax increased to £1,487,111 from £952,332.

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks and uncertainties affecting the company relate mainly to the subsidiary company, S & B Waste Management & Recycling Limited.

The waste industry is remains pressure to reduce landfill and develop new, innovative techniques and processes for managing waste and waste product.

The directors have considered the impact of Covid-19 on the business and have assessed the risk as low based upon the current and expected levels of activity, the robust working capital position of the group, and the nature and exposure of investments held directly by the S & B Industrial Investments Limited.

The potential impact of leaving the EU after the transitional period has also been considered. The directors are of the opinion that there will be no significant impact.

DEVELOPMENT AND FUTURE OUTLOOK

The market for waste management is projected to continue at a moderate rate over the next 5 years. The company remains committed to ensuring that the group remains competitive in a changing market place by investing principally in new, innovative technologies.

The activities of the group are expected to continue unchanged for the foreseeable future.

CONCLUSION

The directors expect the business to remain stable but expect little growth in the provision of core services during the remainder of 2020 and 2021 as a result of the Covid-19 pandemic. Investment in plant, equipment and associated technologies will be maintained to ensure that the group remains efficient and profitable..

ON BEHALF OF THE BOARD:

Miss S R Broadley - Director

2 November 2020

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2020.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of waste management.

DIVIDENDS

Interim dividends totalling £360 per share were paid during the year. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2020 will be £ 72,000 .

DIRECTORS

Miss S R Broadley has held office during the whole of the period from 1 April 2019 to the date of this report.

Other changes in directors holding office are as follows:

Miss S J Broadley - appointed 20 September 2019

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Miss S R Broadley - Director

2 November 2020

Opinion

We have audited the financial statements of S & B Industrial Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2020 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 March 2020 and of the group's 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 group 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 group'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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 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 group's and the parent 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 group or the parent 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.

Stephen Gray (Senior Statutory Auditor)

for and on behalf of Crowther Jordan Limited

Chartered Accountants

Statutory Auditors

39 High Street

Wednesfield

Wolverhampton

West Midlands

WV11 1ST

2 November 2020

TURNOVER

9,518,055

9,014,275

Cost of sales

6,637,480

6,584,344

GROSS PROFIT

2,880,575

2,429,931

Administrative expenses

1,373,031

1,468,595

1,507,544

961,336

Other operating income

1,463

1,686

OPERATING PROFIT

4

1,509,007

963,022

Interest receivable and similar income

2,729

5,162

1,511,736

968,184

Interest payable and similar expenses

5

24,625

15,852

PROFIT BEFORE TAXATION

1,487,111

952,332

Tax on profit

6

257,668

204,328

PROFIT FOR THE FINANCIAL YEAR

1,229,443

748,004

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,229,443

748,004

Profit attributable to:

Owners of the parent

1,229,443

748,004

Total comprehensive income attributable to:

Owners of the parent

1,229,443

748,004

FIXED ASSETS

Intangible assets

9

53,256

62,132

Tangible assets

10

5,427,239

4,383,016

Investments

11

-

-

Investment property

12

1,163,075

690,000

6,643,570

5,135,148

CURRENT ASSETS

Stocks

13

43,500

36,750

Debtors

14

4,905,094

4,715,659

Cash at bank and in hand

781,455

1,214,785

5,730,049

5,967,194

CREDITORS

Amounts falling due within one year

15

1,224,949

1,292,056

NET CURRENT ASSETS

4,505,100

4,675,138

TOTAL ASSETS LESS CURRENT LIABILITIES

11,148,670

9,810,286

CREDITORS

Amounts falling due after more than one year

16

(215,749

)

(137,738

)

PROVISIONS FOR LIABILITIES

19

(226,826

)

(123,896

)

NET ASSETS

10,706,095

9,548,652

CAPITAL AND RESERVES

Called up share capital

20

200

200

Other reserves

21

48,289

48,289

Retained earnings

21

10,657,606

9,500,163

SHAREHOLDERS' FUNDS

10,706,095

9,548,652

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 2 November 2020 and were signed on its behalf by:

Miss S R Broadley - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

3,507,638

2,999,709

Investments

11

746,393

746,393

Investment property

12

3,434,632

2,409,170

7,688,663

6,155,272

CURRENT ASSETS

Debtors

14

1,676,112

1,904,728

Cash at bank

294,588

33,368

1,970,700

1,938,096

CREDITORS

Amounts falling due within one year

15

522,320

375,134

NET CURRENT ASSETS

1,448,380

1,562,962

TOTAL ASSETS LESS CURRENT LIABILITIES

9,137,043

7,718,234

CREDITORS

Amounts falling due after more than one year

16

(215,749

)

(129,911

)

PROVISIONS FOR LIABILITIES

19

(245,121

)

(146,567

)

NET ASSETS

8,676,173

7,441,756

CAPITAL AND RESERVES

Called up share capital

20

200

200

Other reserves

21

873,867

861,131

Retained earnings

21

7,802,106

6,580,425

SHAREHOLDERS' FUNDS

8,676,173

7,441,756

Company's profit for the financial year

1,306,417

1,294,851

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 2 November 2020 and were signed on its behalf by:

Miss S R Broadley - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 April 2018

200

8,824,159

48,289

8,872,648

Changes in equity

Dividends

-

(72,000

)

-

(72,000

)

Total comprehensive income

-

748,004

-

748,004

Balance at 31 March 2019

200

9,500,163

48,289

9,548,652

Changes in equity

Dividends

-

(72,000

)

-

(72,000

)

Total comprehensive income

-

1,229,443

-

1,229,443

Balance at 31 March 2020

200

10,657,606

48,289

10,706,095

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 April 2018

200

5,343,774

874,931

6,218,905

Changes in equity

Dividends

-

(72,000

)

-

(72,000

)

Total comprehensive income

-

1,308,651

(13,800

)

1,294,851

Balance at 31 March 2019

200

6,580,425

861,131

7,441,756

Changes in equity

Dividends

-

(72,000

)

-

(72,000

)

Total comprehensive income

-

1,293,681

12,736

1,306,417

Balance at 31 March 2020

200

7,802,106

873,867

8,676,173

Cash flows from operating activities

Cash generated from operations

1

2,183,208

779,712

Interest paid

(80

)

-

Interest element of hire purchase payments paid

(24,545

)

(15,852

)

Fair value loss on investment property

-

30,000

Tax paid

(407,574

)

(246,655

)

Net cash from operating activities

1,751,009

547,205

Cash flows from investing activities

Purchase of tangible fixed assets

(2,470,929

)

(980,647

)

Purchase of investment property

(753,075

)

-

Sale of tangible fixed assets

429,061

231,000

Sale of investment property

440,000

-

Interest received

2,729

5,162

Net cash from investing activities

(2,352,214

)

(744,485

)

Cash flows from financing activities

Capital repayments in year

239,875

227,250

Equity dividends paid

(72,000

)

(72,000

)

Net cash from financing activities

167,875

155,250

Decrease in cash and cash equivalents

(433,330

)

(42,030

)

Cash and cash equivalents at beginning of year

2

1,214,785

1,256,815

Cash and cash equivalents at end of year

2

781,455

1,214,785

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.20

31.3.19

£

£

Profit before taxation

1,487,111

952,332

Depreciation charges

976,214

833,267

(Profit)/loss on disposal of fixed assets

(125,317

)

26,859

Finance costs

24,625

15,852

Finance income

(2,729

)

(5,162

)

2,359,904

1,823,148

Increase in stocks

(6,750

)

(8,250

)

Decrease/(increase) in trade and other debtors

23,680

(752,537

)

Decrease in trade and other creditors

(193,626

)

(282,649

)

Cash generated from operations

2,183,208

779,712

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 March 2020

31.3.20

1.4.19

£

£

Cash and cash equivalents

781,455

1,214,785

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

1,214,785

1,256,815

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.4.19

Cash flow

At 31.3.20

£

£

£

Net cash

Cash at bank and in hand

1,214,785

(433,330

)

781,455

1,214,785

(433,330

)

781,455

Debt

Finance leases

(464,035

)

(239,875

)

(703,910

)

(464,035

)

(239,875

)

(703,910

)

Total

750,750

(673,205

)

77,545

1.	STATUTORY INFORMATION

S & B Industrial Investments 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

The accompanying financial statements and related notes present the consolidated financial position as of 31 March 2018 and the consolidated results of the operations and cash flows. All significant intercompany transactions have been eliminated.

Turnover

Turnover represents amounts chargeable in respect of goods and services supplied, excluding value added tax. Turnover from the provision of skips is recognised when the skips are physically delivered to the customer.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.

Freehold property

-

2% on cost

Plant and machinery

-

25% on reducing balance and 15% on reducing balance

Skips

-

25% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

15% on reducing balance

Investment property

The Group carries its investment property at fair value, with changes in fair value being recognised in the profit and loss.

Stocks

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

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

3.	EMPLOYEES AND DIRECTORS

31.3.20

31.3.19

£

£

Wages and salaries

1,469,775

1,459,478

Social security costs

111,329

104,366

Other pension costs

17,150

11,924

1,598,254

1,575,768

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

31.3.20

31.3.19

Management

4

3

Administration

12

12

Direct Labour

41

42

57

57