Streetwise Environmental Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 09042551 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

STREETWISE ENVIRONMENTAL LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

Mrs K Marriott

Rushcliffe Borough Council

REGISTERED OFFICE:

Rushcliffe Arena

Rugby Road

West Bridgford

Nottingham

NG2 7YG

REGISTERED NUMBER:

09042551 (England and Wales)

ACCOUNTANTS:

Ashtree Accountants

The Pavilion

Strelley Hall

Nottingham

Nottinghamshire

NG8 6PE

FIXED ASSETS

Tangible assets

4

-

338,598

CURRENT ASSETS

Stocks

-

48,489

Debtors: amounts falling due within one year

5

22,621

415,832

Debtors: amounts falling due after more than one year

5

-

955,000

Cash at bank and in hand

41,011

467,647

63,632

1,886,968

CREDITORS

Amounts falling due within one year

6

35,618

588,293

NET CURRENT ASSETS

28,014

1,298,675

TOTAL ASSETS LESS CURRENT LIABILITIES

28,014

1,637,273

CREDITORS

Amounts falling due after more than one year

7

-

(177,588

)

PENSION LIABILITY

11

-

(1,506,000

)

NET ASSETS/(LIABILITIES)

28,014

(46,315

)

RESERVES

Retained earnings

10

28,014

(46,315

)

MEMBERS' FUNDS

28,014

(46,315

)

The Company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the Company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the Company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the Company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the Company.

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 26 April 2023 and were signed on its behalf by:

Mrs K Marriott - Director

Rushcliffe Borough Council - Director

1.	STATUTORY INFORMATION

Streetwise Environmental Limited is a private company, limited by guarantee , 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 Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company ceased trading on 31 October 2022 and, as such, the going concern basis no longer applies. Given this, the amounts stated in these financial statements represent either actual amounts recoverable or actual amounts payable.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes in accordance with the company's principal activity.

In respect of service contracts turnover represents the value of work done and services performed in the period.

Tangible fixed assets

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

Plant and machinery

-

33% on reducing balance, 25% on reducing balance and 20% on reducing balance

Motor vehicles

-

33% on reducing balance and 25% on reducing balance

Computer equipment

-

33% on cost

Stocks and work in progress

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

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Pension costs and other post-retirement benefits

The company participates in the Local Government Pension Scheme (LGPS). The scheme is a defined benefit scheme based on career average re-valued salary and length of service on retirement.

The company also operates a defined contribution pension scheme. Contributions payable to the company's defined contribution pension scheme are charged to the profit and loss account in the period to which they relate. The pension scheme is operated by People's Pension and it is available for employees that do not qualify for the LGPS.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

Grants relating to revenue are recognised in profit and loss on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are received in respect of expenses or losses already incurred by the company are recognised in profit and loss in the period when the grant becomes receivable.

Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and investments 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 profit or loss.

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.

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) despite having retained some significant risks and rewards of ownership, 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.

Financial liabilities

Basic financial liabilities, including trade and other payables and loans from connected companies, 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.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 48 (2022 - 56 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1 April 2022

407,567

203,184

13,897

624,648

Additions

118,396

-

-

118,396

Disposals

(525,963

)

(203,184

)

(13,897

)

(743,044

)

At 31 March 2023

-

-

-

-

DEPRECIATION

At 1 April 2022

174,426

97,889

13,735

286,050

Charge for year

26,799

6,632

68

33,499

Eliminated on disposal

(201,225

)

(104,521

)

(13,803

)

(319,549

)

At 31 March 2023

-

-

-

-

NET BOOK VALUE

At 31 March 2023

-

-

-

-

At 31 March 2022

233,141

105,295

162

338,598

5.

DEBTORS

31/3/23

31/3/22

£

£

Amounts falling due within one year:

Trade debtors

-

111,999

Amounts owed by group undertakings

-

110,149

Other debtors

-

6,858

Tax

18,412

18,551

VAT

4,209

-

Deferred tax asset

-

113,239

Prepayments and accrued income

-

55,036

22,621

415,832

Amounts falling due after more than one year:

Amount due from Rushcliffe

Borough Council in respect

of Pension Deficit

-

955,000

-

955,000

Aggregate amounts

22,621

1,370,832

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/23

31/3/22

£

£

Other loans (see note 8)

-

123,396

Trade creditors

3,981

182,379

Social security and other taxes

-

79,879

Other creditors

-

9,156

Amount due to Rushcliffe

Borough Council

21,007

175,247

Accruals

10,630

18,236

35,618

588,293

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/3/23

31/3/22

£

£

Other loans (see note 8)

-

177,588

8.

LOANS

An analysis of the maturity of loans is given below:

31/3/23

31/3/22

£

£

Amounts falling due within one year or on demand:

RBC Loan

-

123,396

Amounts falling due between one and two years:

RBC Loan - Amount falling due

between one and two years

-

118,396

-

118,396

Amounts falling due between two and five years:

RBC Loan - Amount falling due

between two and five years

-

59,192

-

59,192

The RBC loan is unsecured and interest is charged at a rate of 4.25% per annum.

9.	DEFERRED TAX

£

Balance at 1 April 2022

(113,239

)

Provided during year

(64,335

)

Tax charge/(credit) on pension

liability movements

261,820

Tax credit on losses

carried forward

2,204

Tax credit released on

transfer of net pension

liability to RBC

(86,450

)

Balance at 31 March 2023

-

10.

RESERVES

Retained

earnings

£

At 1 April 2022

(46,315

)

Deficit for the year

(329,841

)

Actuarial Gains and Losses

arising on changes in

assumptions

1,461,000

Return on Pension Plan Assets

(48,000

)

Deferred tax on pension liability

(181,830

)

Reversal of LGPS pension

scheme liability on transfer

back to RBC

(827,000

)

At 31 March 2023

28,014

11.	EMPLOYEE BENEFIT OBLIGATIONS

Participation in Pension Schemes

On 1 September 2022 the company's participation in the Nottinghamshire Local Government Pension Scheme (LGPS) ended and the related net pension liability as at the close of business on the previous day, 31 August 2022, was transferred to back to Rushcliffe Borough Council (RBC) resulting in a reversal of the the LGPS pension scheme liability in the accounts of the Company.

On 31 August 2014, the pension deficit in relation to the employees that were transferred from Rushcliffe Borough Council to the Company was £583,000. In addition, during the year ended 31 March 2021 a further pension deficit liability of £372,000 was transferred from RBC to the Company relating to further employees that had been transferred to the Company from RBC in that year bringing the total pension deficit to £955,000. These amounts are underwritten by Rushcliffe Borough Council.

The reversal of the LGPS pension scheme liability on the transfer back to RBC on 1 September 2022 is made up as follows:

£

- Net pension liability (below)

(128,000

)

- Pension deficit on accumulated transfers from RBC (above)

955,000

Reversal of LGPS pension scheme liability on transfer back to RBC

(827,000

)

Until 31 August 2022, the Company, as part of the terms and conditions of employment of its officers and other employees offered retirement benefits. Although these benefits will not be payable until employees retire, the Company had a commitment to make the payments that need to be disclosed at the time that employees earn their future entitlement.

During the period up to 31 August 2022, the Company participated in two post employment schemes:

The Local Government Pension Scheme, administered locally by Nottinghamshire County Council is a funded defined benefit scheme and until 31 March 2014 was a final salary scheme. Changes came into effect on 1 April 2014 and any benefits accrued from this date are based on career average revalued salary and length of service on retirement, meaning that the Company and employees pay contributions into a fund, calculated at a level intended to balance the pensions liabilities with investment assets.

Arrangements for the award of discretionary post retirement benefits upon early retirement, is an unfunded defined benefit arrangement, under which liabilities are recognised when awards are made. However, there are no investment assets built up to meet these pensions liabilities, and cash has to be generated to meet actual pensions payments as they fall due.

The principal risks to the Company of the scheme are:

* Investment risk. The Fund holds investment in asset classes, such as equities, which have volatile market values and while these assets are expected to provide real returns over the long-term, the short-term volatility can cause additional funding to be required if a deficit emerges

* Interest rate risk. The Fund’s liabilities are assessed using market yields on high quality corporate bonds to discount future liability cash flows. As the Fund holds assets such as equities the value of the assets and liabilities may not move in the same way.

* Inflation risk. All of the benefits under the Fund are linked to inflation and so deficits may emerge to the extent that the assets are not linked to inflation.

* Longevity risk. In the event that the members live longer than assumed a deficit will emerge in the Fund. There are also other demographic risks.

* Statutory changes to the scheme.

* Structural changes to the scheme (ie large-scale withdrawals from the scheme)

* In addition, as many unrelated employers participate in the Nottinghamshire County Council Pension Fund, there is an orphan liability risk where employers leave the Fund but with insufficient assets to cover their pension obligations so that the difference may fall on the remaining employers.

Transactions relating to retirement benefits.

The liabilities of the fund are valued using a discount rate based on corporate bond yields that match the duration of the employer’s liabilities and the Merrill Lynch AA-rated corporate bond yield curve. As a result of this approach, the company reported an actuarial gain of £1,461k in the period to 31 August 2022 (2021/22: gain of £249k).

The return on assets reported in the accounts to 31 August 2022 is a loss of £48k (2021/22: gain of £152k).

Value of scheme assets and liabilities

01/09/22 to 31/03/23

01/04/22 to 31/08/22

Year Ended31/03/22

£

£

£

Market value of assets comprise:

Equities

-

1,556,000

1,636,000

Gilts

-

63,000

80,000

Other Bonds

-

184,000

184,000

Property

-

385,000

347,000

Cash

-

152,000

151,000

Inflation-linked pooled fund

-

139,000

142,000

Infrastructure

-

178,000

160,000

Market value of assets

-

2,657,000

2,700,000

01/09/22 to 31/03/23

01/04/22 to 31/08/22

Year Ended31/03/22

£

£

£

Market value of assets

-

2,657,000

2,700,000

Present value of scheme liabilities

-

(2,785,000

)

(4,206,000

)

Net pension liability

-

(128,000

)

(1,506,000

)

Movement in deficit during the year

01/09/22 to 31/03/23

01/04/22 to 31/08/22

Year Ended31/03/22

£

£

£

Deficit in scheme at start of period

(128,000

(1,506,000

)

(1,817,000

)

Current service cost

-

(36,000

)

(97,000

)

Contributions

-

18,000

43,000

Net interest expense

-

(16,000

)

(35,000

)

Administration expense

-

(1,000

)

(1,000

)

Return on plan assets

-

(48,000

)

152,000

Actuarial (loss)/gain

-

1,461,000

249,000

Transfer of pension scheme deficit to RBC

128,000

-

-

Deficit in scheme at end of period

-

(128,000

)

(1,506,000

)

Other finance costs as reported in the Income Statement comprise:

01/09/22 to 31/03/23

01/04/22 to 31/08/22

Year Ended31/03/22

£

£

£

Current service cost

-

96,802

96,802

Net interest expense

-

35,000

35,000

Administration expense

-

1,000

1,000

Other finance costs

-

132,802

132,802

From the information we have received from the administering authority, we understand that for the period 1 April 2022 to 31 August 2022:

Of the Equities allocation, 30.9% are UK investments, 69.1% are overseas investments

100.0% of the above are listed in a market..

Of the Gilts allocation above, 100% are UK fixed interest Gilts

Of the Other Bonds allocation above, 28.6% are UK corporates, 71.4% are overseas corporates

Of the Property and Cash allocations 100% are unquoted

Of the Inflation linked pooled fund 100% were listed in an active market This was included in equities.

Basis for Estimating Assets & Liabilities

Liabilities have been assessed on an actuarial basis using the projected unit method, an estimate of the pensions that will be payable in future years that is dependent on assumptions about mortality rates, salary levels, etc. Both the Local Government Pension Scheme and Discretionary Benefits liabilities have been assessed by Barnett Waddingham, an independent firm of actuaries, estimates for the fund being based on the latest full valuation of the scheme as at 31 August 2022.

The principal assumptions used by the actuary have been:

LGPS & Disc. Benefits

01/04/22 to 31/08/22

Year Ended31/03/22

Mortality Assumptions

Longevity at 65 for current pensioners

Men

21.7

21.6

Women

24.4

24.3

Longevity at 65 for future pensioners

Men

23.0

23.0

Women

25.8

25.8

Rates of Inflation

CPI (Real)

-0.30%

-0.25%

CPI (Per Annum)

2.95%

3.20%

RPI (Per Annum)

3.25%

3.45%

Rate of Increase in Salaries

(Per Annum)

3.95%

4.20%

(Real)

0.70%

0.75%

Rate of Increase in Pensions

(Per Annum)

2.95%

3.20%

(Real)

-0.30%

-0.25%

Rate for Discounting Scheme Liabilities

(Per Annum)

4.25%

2.60%

(Real)

1.00%

-0.75%

Additional Assumptions

* Members will exchange half of their commutable pension for cash at retirement.

* Members will retire at one retirement age for all tranches of benefit, which will be the pension weighted average tranche retirement age.

* 10% of active members will take up the option under the new LGPS to pay 50% of contributions for 50% of benefits.

The estimation of the defined benefit obligations is sensitive to the actuarial assumptions set out in the table above. The sensitivity analyses below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period and assumes for each change that the assumption analysed changes while all other assumptions remain constant. The assumptions in longevity, for example, assume that life expectancy increases or decreases for men and women. In practice, this is unlikely to occur, and changes in some of the assumptions may be interrelated. The estimations in the sensitivity analysis have followed the accounting policies for the scheme, i.e. on an actuarial basis using the projected unit credit method. The methods and types of assumptions used in preparing the sensitivity analysis below did not change from those used in the previous period.

Impact on the Defined Benefit Obligation in the Scheme

Increase in Assumption

Decrease in Assumption

£'000

£'000

Longevity (increase or decrease in 1 year)

81

(78

)

Rate of increase in salaries (increase or decrease by 0.1%)

10

(10

)

Rate of increase in pensions (increase or decrease by 0.1%)

53

(51

)

Rate for discounting scheme liabilities (increase or decrease by 0.1%)

(60

)

61

Impact on the Cash Flows

The objectives of the scheme are to keep employers' contributions at as constant a rate as possible. There are no minimum funding requirements in the LGPS but the contributions are generally set to target a funding level of 100% using the actuarial valuation assumptions. The employer contribution rate for the period 1 April 2022 to 31 August 2022 is 20.6% (2021/22 20.6%) and the Company, from 1 September 2022, will no longer contribute to the LGPS.

Funding levels are monitored on an annual basis. The next triennial valuation is due to be completed on 31 March 2023 which is after the transfer of the LGPS scheme back to RBC. The scheme will need to take account of the national changes to the scheme under the Public Pensions Services Act 2013. Under the Act, the Local Government Pension Scheme in England and Wales and the other main existing public service schemes may not provide benefits in relation to service after 31 March 2014 (or service after 31 March 2015 for other main existing public service pension schemes in England and Wales). The Act provides for scheme regulations to be made within a common framework, to establish new career average revalued earnings schemes to pay pensions and other benefits to certain public servants.

The estimated duration of the defined benefit obligation for scheme members is 23 years (2022 - 23 years).

12.	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.

13.	ULTIMATE CONTROLLING PARTY

14.	LIMITED BY GUARANTEE

The company is limited by guarantee. The amount guaranteed is £1.