Datashredders Limited Company accounts

DATASHREDDERS LIMITED - Company Information

52 false false false true false false false false false false true false false true true true true No description of principal activity 2021-10-01 Sage Accounts Production Advanced 2021 - FRS102_2021 2,603,492 1,313,892 14,400 14,400 14,400 537,026 114,278 651,304 xbrli:pure xbrli:shares iso4217:GBP 05716583 2021-10-01 2022-09-30 05716583 2022-09-30 05716583 2021-09-30 05716583 2020-10-01 2021-09-30 05716583 2021-09-30 05716583 core:NetGoodwill 2021-10-01 2022-09-30 05716583 core:LandBuildings 2021-10-01 2022-09-30 05716583 core:FurnitureFittings 2021-10-01 2022-09-30 05716583 core:MotorVehicles 2021-10-01 2022-09-30 05716583 bus:RegisteredOffice 2021-10-01 2022-09-30 05716583 bus:OrdinaryShareClass1 2021-10-01 2022-09-30 05716583 bus:LeadAgentIfApplicable 2021-10-01 2022-09-30 05716583 bus:Director1 2021-10-01 2022-09-30 05716583 bus:Director2 2021-10-01 2022-09-30 05716583 bus:CompanySecretary1 2021-10-01 2022-09-30 05716583 core:WithinOneYear 2022-09-30 05716583 core:WithinOneYear 2021-09-30 05716583 core:NetGoodwill 2021-09-30 05716583 core:NetGoodwill 2022-09-30 05716583 core:PlantMachinery 2021-09-30 05716583 core:FurnitureFittings 2021-09-30 05716583 core:MotorVehicles 2021-09-30 05716583 core:LandBuildings 2022-09-30 05716583 core:PlantMachinery 2022-09-30 05716583 core:FurnitureFittings 2022-09-30 05716583 core:MotorVehicles 2022-09-30 05716583 core:DeferredTaxation 2021-10-01 2022-09-30 05716583 core:PlantMachinery 2021-10-01 2022-09-30 05716583 core:AfterOneYear 2022-09-30 05716583 core:AfterOneYear 2021-09-30 05716583 core:UKTax 2021-10-01 2022-09-30 05716583 core:UKTax 2020-10-01 2021-09-30 05716583 core:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 05716583 core:RetainedEarningsAccumulatedLosses 2020-10-01 2021-09-30 05716583 bus:AllOrdinaryShares 2021-10-01 2022-09-30 05716583 bus:AllOrdinaryShares 2020-10-01 2021-09-30 05716583 core:RetainedEarningsAccumulatedLosses 2021-09-30 05716583 core:RetainedEarningsAccumulatedLosses 2020-09-30 05716583 core:RetainedEarningsAccumulatedLosses 2022-09-30 05716583 core:RetainedEarningsAccumulatedLosses 2021-09-30 05716583 core:ShareCapital 2022-09-30 05716583 core:ShareCapital 2021-09-30 05716583 core:BetweenOneFiveYears 2022-09-30 05716583 core:BetweenOneFiveYears 2021-09-30 05716583 core:CostValuation core:Non-currentFinancialInstruments 2022-09-30 05716583 core:Non-currentFinancialInstruments 2022-09-30 05716583 core:Non-currentFinancialInstruments 2021-09-30 05716583 core:AcceleratedTaxDepreciationDeferredTax 2022-09-30 05716583 core:AcceleratedTaxDepreciationDeferredTax 2021-09-30 05716583 core:PlantMachinery 2021-09-30 05716583 core:FurnitureFittings 2021-09-30 05716583 core:MotorVehicles 2021-09-30 05716583 core:DeferredTaxation 2021-09-30 05716583 core:DeferredTaxation 2022-09-30 05716583 bus:FRS102 2021-10-01 2022-09-30 05716583 bus:Audited 2021-10-01 2022-09-30 05716583 bus:FullAccounts 2021-10-01 2022-09-30 05716583 bus:LargeMedium-sizedCompaniesRegimeForAccounts 2021-10-01 2022-09-30 05716583 bus:PrivateLimitedCompanyLtd 2021-10-01 2022-09-30 05716583 bus:OrdinaryShareClass1 2022-09-30 05716583 bus:OrdinaryShareClass1 2021-09-30 05716583 core:IntangibleAssetsOtherThanGoodwill 2021-10-01 2022-09-30 05716583 core:ToolsEquipment 2021-10-01 2022-09-30 05716583 core:IntangibleAssetsOtherThanGoodwill 2022-09-30 05716583 core:ToolsEquipment 2021-09-30 05716583 core:ToolsEquipment 2022-09-30

COMPANY REGISTRATION NUMBER: 05716583

Datashredders Limited

Financial Statements

For the year ended

30 September 2022

Datashredders Limited

Financial Statements

Year ended 30 September 2022

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of income and retained earnings	10

Statement of financial position	11

Notes to the financial statements	13

Datashredders Limited

Officers and Professional Advisers

The board of directors	E Lefevre
	J Lefevre

Company secretary	J S Lefevre

Registered office	Unit 2 Eastwood Industrial Estate
	Eastwood Road
	Wimblington
	Cambridgeshire
	PE15 0QH

Auditor	Streets Audit LLP
	Chartered Accountants & statutory auditor
	Enterprise House
	38 Tyndall Court
	Commerce Road
	Lynch Wood
	Peterborough
	Cambridgeshire
	PE2 6LR

Datashredders Limited

Strategic Report

Year ended 30 September 2022

We aim to present a balanced and comprehensive review of the development and performance of the company during the year and its position at the year end. Our review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties we face. The company's core operations are that of collection, shredding and selling of materials. Operation Performance and Key Performance Indicators The directors consider the key performance indicators (KPI's) of the company to be turnover, gross margin and net profit. The company reported turnover in the year of £8.78m and a gross margin of 28.5% resulting in a profit before tax of £3.3m. During the previous year, a major fire occurred at the companies main trading premises, destroying most of the buildings and plant and machinery. The company has made insurance claims for damages and is in the process of rebuilding the site. There has been significant disruption but the directors are pleased that the company has been able to trade as normal as possible since the fire. The company has also expanded into a third site as the business continues to grow. Principal Risks and Uncertainties The company's principal financial instruments comprise cash, bank borrowings and various items, such as trade debtors and trade creditors, which arise directly from its operations. The main purpose of these financial instruments is to provide finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks. The main risks arising from the company's financial risks are credit risk, liquidity risk and interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years. Credit risk The company seeks to manage its credit risk by dealing with established customers or otherwise checking the credit-worthiness of new customers, establishing clear contractual relationships with those customers and by identifying and addressing any credit issues arising in a timely manner. Liquidity risk The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by overdraft facilities. The main functional currency of the business is Sterling and the group does not have material exposure to foreign-denominated currency. Interest rate risk The company's exposure to market risk for the changes in interest rates relates primarily to its assets obtained through hire purchase agreements and finance lease borrowings. The company seeks to manage this risk by keeping hire purchase to a minimum and using fixed rates. Health & safety risk The company is exposed health & safety risk owing to the nature of the business and sector it operates in. The company seeks to manage this risk through internal expertise and external consultants where deemed necessary. Outlook The company continues to seek to grow across all core operations. The directors will continue to react to market conditions whilst managing the risks noted above. Brexit also continues to affect the UK economy however so far we have not been affected in any way but we continue to monitor whether there may be any impact on the business.

This report was approved by the board of directors on 30 June 2023 and signed on behalf of the board by:

J Lefevre

Director

Registered office:

Unit 2 Eastwood Industrial Estate

Eastwood Road

Wimblington

Cambridgeshire

PE15 0QH

Datashredders Limited

Directors' Report

Year ended 30 September 2022

The directors present their report and the financial statements of the company for the year ended 30 September 2022 .

Directors

The directors who served the company during the year were as follows:

E Lefevre
J Lefevre

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Disclosure of information in the strategic report

The company has chosen to set out in the strategic report information about the future developments of the company and the financial instruments.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report 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 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 judgments 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 30 June 2023 and signed on behalf of the board by:

J Lefevre

Director

Registered office:

Unit 2 Eastwood Industrial Estate

Eastwood Road

Wimblington

Cambridgeshire

PE15 0QH

Datashredders Limited

Independent Auditor's Report to the Members of Datashredders Limited

Year ended 30 September 2022

Opinion

We have audited the financial statements of Datashredders Limited (the 'company') for the year ended 30 September 2022 which comprise the statement of income and retained earnings, statement of financial position and the related notes, 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 FRS 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 30 September 2022 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Other information

The prior year financial statements were not subject to a statutory audit. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report 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 directors' report. 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. 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: Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, environmental and health and safety legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - inquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 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 auditor’s report. Use of our report

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Day

(Senior Statutory Auditor)

For and on behalf of

Streets Audit LLP

Chartered Accountants & statutory auditor

Enterprise House

38 Tyndall Court

Commerce Road

Lynch Wood

Peterborough

Cambridgeshire

PE2 6LR

30 June 2023

Datashredders Limited

Statement of Income and Retained Earnings

Year ended 30 September 2022

		2022	2021
Note		£	£
Turnover	4	8,788,751	4,911,495

Cost of sales	6,286,462	3,477,936
	------------	------------
Gross profit	2,502,289	1,433,559

Administrative expenses		1,993,415	366,278
Other operating income		49,852	55,850
Business interruption insurance income		2,762,790	600,000
		------------	------------
Operating profit	5	3,321,516	1,723,131

Other interest receivable and similar income	9	57	34
Interest payable and similar expenses	10	20,012	26,896
		------------	------------
Profit before taxation		3,301,561	1,696,269

Tax on profit	11	698,069	382,377
		------------	------------
Profit for the financial year and total comprehensive income		2,603,492	1,313,892
		------------	------------

Dividends paid and payable	12	( 2,000,000)	( 800,000)

Retained earnings at the start of the year	2,741,327	2,227,435
	------------	------------
Retained earnings at the end of the year	3,344,819	2,741,327
	------------	------------

All the activities of the company are from continuing operations.

Datashredders Limited

Statement of Financial Position

30 September 2022

	2022		2021
Note	£	£	£

Fixed assets

Intangible assets	13	115,958	–
Tangible assets	14	2,628,133	2,188,846
Investments	15	14,400	14,400
		------------	------------
		2,758,491	2,203,246

Current assets

Stocks	16	104,950	49,100
Debtors	17	1,944,641	1,341,694
Cash at bank and in hand		1,174,686	1,150,584
		------------	------------
		3,224,277	2,541,378

Creditors: amounts falling due within one year	18	1,785,016		1,262,519
		------------		------------
Net current assets			1,439,261	1,278,859
			------------	------------
Total assets less current liabilities			4,197,752	3,482,105

Creditors: amounts falling due after more than one year	19		201,529	203,652

Provisions

Taxation including deferred tax	21	651,304	537,026
		------------	------------
Net assets		3,344,919	2,741,427
		------------	------------

Datashredders Limited

Statement of Financial Position (continued)

30 September 2022

	2022		2021
Note	£	£	£

Capital and reserves

Called up share capital	25	100	100
Profit and loss account	26	3,344,819	2,741,327
		------------	------------
Shareholders funds		3,344,919	2,741,427
		------------	------------

These financial statements were approved by the board of directors and authorised for issue on 30 June 2023 , and are signed on behalf of the board by:

J Lefevre

Director

Company registration number: 05716583

Datashredders Limited

Notes to the Financial Statements

Year ended 30 September 2022

1. General information

The company is a private company limited by shares, registered in England and Wales. The trading address is Eastwood Industrial Estate, Eastwood End, Wimblington, March, PE15 0QH.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.The financial statements are prepared in sterling, which is the functional currency of the entity. Disclosure exemptions The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Datashredders Group Limited which can be obtained from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: 1) Depreciation and amortisation charge The annual depreciation and amortisation charges for each class of fixed asset is based on an estimate of the useful economic life of the respective assets. This is reviewed periodically by the directors to ensure that they reflect both the external and internal factors. Revenue recognition Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred, which is usually on the despatch of goods, the amount of revenue can be measured reliably and it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered. Income tax The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Operating leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income. Goodwill Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	33% straight line
Other intangibles	-	33% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold property	-	10% straight line
Plant & machinery	-	10-25% straight line
Fixtures & fittings	-	25% straight line
Motor vehicles	-	25% reducing balance
Equipment	-	33% straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in other companies are accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.

Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised 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 receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Financial instruments

The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Turnover

Turnover arises from:

	2022	2021
	£	£
Sale of goods	7,290,449	3,590,244
Rendering of services	1,498,302	1,321,251
	------------	------------
	8,788,751	4,911,495
	------------	------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging/crediting:

	2022	2021
	£	£
Amortisation of intangible assets	44,042	–
Depreciation of tangible assets	667,800	424,655
Gains on disposal of tangible assets	( 6,731)	( 944,543)
Operating lease payments	40,482	66,200
	---------	---------

6. Auditor's remuneration

	2022	2021
	£	£
Fees payable for the audit of the financial statements	12,000	–
	--------	----

Fees payable to the company's auditor and its associates for other services:

Other non-audit services	6,860	–
	--------	----

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2022	2021
	No.	No.
Production staff	47	50
Administrative staff	5	5
	----	----
	52	55
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2022	2021
	£	£
Wages and salaries	1,456,731	1,150,620
Social security costs	140,906	102,192
Other pension costs	106,480	102,176
	------------	------------
	1,704,117	1,354,988
	------------	------------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2022	2021
	£	£
Remuneration	18,511	18,616
Company contributions to defined contribution pension plans	80,000	80,000
	--------	--------
	98,511	98,616
	--------	--------

The number of directors who accrued benefits under company pension plans was as follows:

	2022	2021
	No.	No.
Defined contribution plans	2	2
	----	----

9. Other interest receivable and similar income

	2022	2021
	£	£
Interest on cash and cash equivalents	57	34
	----	----

10. Interest payable and similar expenses

	2022	2021
	£	£
Interest on banks loans and overdrafts	10,636	7,148
Interest on obligations under finance leases and hire purchase contracts	9,376	19,748
	--------	--------
	20,012	26,896
	--------	--------

11. Tax on profit

Major components of tax expense

	2022	2021
	£	£

Current tax:

UK current tax expense	583,791	93,307

Deferred tax:

Origination and reversal of timing differences	114,278	289,070
	---------	---------
Tax on profit	698,069	382,377
	---------	---------

The expected reversal of the deferred tax asset in the next financial year is £181,950.

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2021: higher than) the standard rate of corporation tax in the UK of 19 % (2021: 19 %).

	2022	2021
	£	£
Profit on ordinary activities before taxation	3,301,561	1,696,269
	------------	------------
Profit on ordinary activities by rate of tax	627,297	322,291
Effect of expenses not deductible for tax purposes	12,914	( 179,512)
Effect of capital allowances and depreciation	57,858	239,598
	------------	------------
Tax on profit	698,069	382,377
	------------	------------

12. Dividends

	2022	2021
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	2,000,000	800,000
	------------	---------

13. Intangible assets

	Goodwill	Other intangibles	Total
	£	£	£
Cost
At 1 October 2021	285,000	–	285,000
Additions	–	160,000	160,000
	---------	---------	---------
At 30 September 2022	285,000	160,000	445,000
	---------	---------	---------
Amortisation
At 1 October 2021	285,000	–	285,000
Charge for the year	–	44,042	44,042
	---------	---------	---------
At 30 September 2022	285,000	44,042	329,042
	---------	---------	---------
Carrying amount
At 30 September 2022	–	115,958	115,958
	---------	---------	---------
At 30 September 2021	–	–	–
	---------	---------	---------

14. Tangible assets

	Land and buildings	Plant and machinery	Fixtures and fittings	Motor vehicles	Equipment	Total
	£	£	£	£	£	£
Cost
At 1 Oct 2021	–	2,038,557	27,001	2,017,311	250,859	4,333,728
Additions	148,152	675,041	11,518	262,775	22,476	1,119,962
Disposals	–	( 1,750)	–	( 20,000)	–	( 21,750)
	---------	------------	--------	------------	---------	------------
At 30 Sep 2022	148,152	2,711,848	38,519	2,260,086	273,335	5,431,940
	---------	------------	--------	------------	---------	------------
Depreciation
At 1 Oct 2021	–	831,314	1,307	1,095,465	216,796	2,144,882
Charge for the year	10,911	342,939	8,079	278,490	27,381	667,800
Disposals	–	( 620)	–	( 8,255)	–	( 8,875)
	---------	------------	--------	------------	---------	------------
At 30 Sep 2022	10,911	1,173,633	9,386	1,365,700	244,177	2,803,807
	---------	------------	--------	------------	---------	------------
Carrying amount
At 30 Sep 2022	137,241	1,538,215	29,133	894,386	29,158	2,628,133
	---------	------------	--------	------------	---------	------------
At 30 Sep 2021	–	1,207,243	25,694	921,846	34,063	2,188,846
	---------	------------	--------	------------	---------	------------

Capital commitments

	2022	2021
	£	£
Contracted for but not provided for in the financial statements	164,893	–
	---------	----

15. Investments

	Other investments
	£
Cost
At 1 October 2021 and 30 September 2022	14,400
	--------
Impairment
At 1 October 2021 and 30 September 2022	–
	--------

Carrying amount
At 30 September 2022	14,400
	--------
At 30 September 2021	14,400
	--------

The company owns 20% of the issued share capital of The Shredding Alliance Holdings Limited.

16. Stocks

	2022	2021
	£	£
Raw materials and consumables	104,950	49,100
	---------	--------

17. Debtors

	2022	2021
	£	£
Trade debtors	1,158,859	807,911
Amounts owed by group undertakings	509,486	349,620
Prepayments and accrued income	213,626	20,302
Other debtors	62,670	163,861
	------------	------------
	1,944,641	1,341,694
	------------	------------

18. Creditors: amounts falling due within one year

	2022	2021
	£	£
Bank loans and overdrafts	50,000	50,000
Trade creditors	700,396	704,605
Accruals and deferred income	140,143	144,362
Social security and other taxes	780,822	187,771
Obligations under finance leases and hire purchase contracts	85,878	146,403
Other creditors	27,777	29,378
	------------	------------
	1,785,016	1,262,519
	------------	------------

Bank loans and overdrafts are secured against the assets of the company. Included within the comparative bank loans is a Coronavirus business interruption loan. The lender has been provided with a guarantee from the UK Government. Hire purchase agreements are secured on the assets to which they relate.

19. Creditors: amounts falling due after more than one year

	2022	2021
	£	£
Bank loans and overdrafts	129,167	179,167
Obligations under finance leases and hire purchase contracts	72,362	24,485
	---------	---------
	201,529	203,652
	---------	---------

20. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2022	2021
	£	£
Not later than 1 year	85,878	146,403
Later than 1 year and not later than 5 years	72,362	24,485
	---------	---------
	158,240	170,888
	---------	---------

21. Provisions

	Deferred tax (note 22)
	£
At 1 October 2021	537,026
Additions	114,278
	---------
At 30 September 2022	651,304
	---------

22. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2022	2021
	£	£
Included in provisions (note 21)	651,304	537,026
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2022	2021
	£	£
Accelerated capital allowances	651,304	537,026
	---------	---------

Deferred tax has been calculated at 25% (2021 - 25%).

23. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 26,480 (2021: £ 22,176 ).

24. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2022	2021
	£	£

Recognised in other operating income:

Government grants recognised directly in income	–	2,116
	----	-------

25. Called up share capital

Issued, called up and fully paid

	2022		2021
	No.	£	No.	£
Ordinary shares of £ 1 each	100	100	100	100
	----	----	----	----

26. Reserves

Profit and loss account - this reserve records retained earnings and accumulated losses and the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.

27. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2022	2021
	£	£
Not later than 1 year	31,000	68,280
Later than 1 year and not later than 5 years	76,000	25,520
	---------	--------
	107,000	93,800
	---------	--------

28. Related party transactions

The company has taken advantage of the exemption available under FRS102 from reporting transactions with its parent company. Total remuneration of key management personnel are deemed to be the directors, the remuneration is disclosed in note 9. The Shredding Alliance Limited is a company with common directors and shareholders. During the year, Datashredders Limited made sales of £564,698 (2021: £401,692) and purchases of £276,616 (2021: £107,748) to the related party. At year end, £132,972 was owed to Datashredders Limited and £33,413 was owed from them. Rent was paid to The Trustees of The Lefevre Family Pension Scheme totalling £18,000 (2021: £18,000) for the rental of Unit B Eastwood Industrial Estate, PE15 0QH. As at year end, The Lefevre Family Pension Scheme owed Datashredders Limited £60 (2021: £60). This amount does not attract any interest.

29. Controlling party

The company is a wholly subsidiary of under Datashredders Group Limited, a company registered in the United Kingdom. The ultimate controlling party are the directors. The financial statements of Datashredders Group Limited are available from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ