M. & M. Skip Hire Limited - Limited company accounts 23.2

REGISTERED NUMBER: 02693780 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2023

for

M. & M. SKIP HIRE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTORS:

A Pharaon

R D J Fluckiger

B Smith

REGISTERED OFFICE:

9 Worton Park

Cassington

Witney

Oxfordshire

OX29 4SX

BUSINESS ADDRESS:

Worton Park

Cassington

Witney

Oxfordshire

OX29 4FL

REGISTERED NUMBER:

02693780 (England and Wales)

SENIOR STATUTORY AUDITOR:

Adam Woolford

AUDITORS:

Camerons Accountancy Consultants Limited

Statutory Auditor

Chartered Accountants

9 Worton Park

Cassington

Witney

Oxfordshire

OX29 4SX

The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS

The loss for the year, after adjustments for taxation, amounted to £641,145 (2022 - profit of £454,553). The company's key performance indicators during the year were as follows:

2023

2022

Turnover

£10,514k

£11,106k

Operating profit/(loss)

£(489k)

£637k

Profit/(loss) for the financial year

£(624k)

£455k

Shareholders' funds

£2,797k

£3,421k

Average number of employees

84

80

PRINCIPAL RISKS AND UNCERTAINTIES

The following risks face the business, all of which arise in the normal course of the company's operations:

Liquidity risk - This risk is managed by focusing on working capital flows.

Credit risk - The company monitors the exposure to credit risk on an ongoing basis and credit evaluations are performed on customers requiring credit.

Regulatory compliance risk - The company operates in a highly regulated sector; failure to comply with regulations can have significant consequences ranging from fines to suspension of activities. The regulations cover areas including health & safety, environment and planning. The company operates to ISO 9001, ISO 14001 and ISO 45001 with an integrated management system. Compliance with regulation is monitored through regular internal and external audits.

Competitor risk - The company is the largest independently owned waste management company in the area and so will always attract competition. The company monitors competitors' prices and ensures delivering excellent service to stay ahead of these competitors.

Recyclable material price risk - The company continues to strive for higher recovery of recyclable materials and thus, reducing landfill tonnages. The company is exposed to price movements in these recyclable material prices and actively researches the market for the best prices.

DEVELOPMENT AND PERFORMANCE

The company purchased the assets of Buckinghamshire based SCB (Skip Hire) Ltd in March 2021. This has increased the company's geographical footprint and provides an additional waste transfer station to operate from. The directors believe that this, similar acquisitions and continued capital investment are key to the company's growth.

ON BEHALF OF THE BOARD:

R D J Fluckiger - Director

25 October 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the hire of domestic and commercial skips and the operation of two waste transfer stations.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2023.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

A Pharaon

R D J Fluckiger

B Smith

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Camerons Accountancy Consultants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R D J Fluckiger - Director

25 October 2023

Opinion

We have audited the financial statements of M. & M. Skip Hire Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

During our fraud discussions for the audit of the year to March 2023, the audit team identified no significant areas that were susceptible to misstatement.

The nature of the skip hire industry is not considered high risk as the business is not cash based

We consider the entity's risk assessment procedures adequate for this type of business, and the client has adequate monitoring of controls.

We have made enquiries of management to identify significant laws and regulations that must be adhered to by . the company. Failure to comply with these regulations can have significant consequences including fines & suspension of activities.

Laws and regulations identified were as follows:

- Environment & planning laws

- Health and safety laws

- Employment law

No known instances of non-compliance with these laws and regulations were identified.

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.

Adam Woolford (Senior Statutory Auditor)

for and on behalf of Camerons Accountancy Consultants Limited

Statutory Auditor

Chartered Accountants

9 Worton Park

Cassington

Witney

Oxfordshire

OX29 4SX

25 October 2023

TURNOVER

10,513,893

11,105,736

Cost of sales

8,939,987

8,402,277

GROSS PROFIT

1,573,906

2,703,459

Administrative expenses

2,252,674

2,129,834

(678,768

)

573,625

Other operating income

190,200

63,810

OPERATING (LOSS)/PROFIT

4

(488,568

)

637,435

Interest receivable and similar income

839

348

(487,729

)

637,783

Interest payable and similar expenses

5

87,235

103,183

(LOSS)/PROFIT BEFORE TAXATION

(574,964

)

534,600

Tax on (loss)/profit

6

49,030

80,047

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(623,994

)

454,553

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(623,994

)

454,553

FIXED ASSETS

Intangible assets

7

68,145

85,545

Tangible assets

8

5,186,839

4,863,242

Investments

9

1

2

5,254,985

4,948,789

CURRENT ASSETS

Stocks

10

15,355

20,547

Debtors

11

1,826,625

1,772,246

Cash at bank and in hand

513,179

1,501,203

2,355,159

3,293,996

CREDITORS

Amounts falling due within one year

12

2,402,942

2,507,395

NET CURRENT (LIABILITIES)/ASSETS

(47,783

)

786,601

TOTAL ASSETS LESS CURRENT LIABILITIES

5,207,202

5,735,390

CREDITORS

Amounts falling due after more than one year

13

(2,018,970

)

(1,989,345

)

PROVISIONS FOR LIABILITIES

15

(391,071

)

(324,890

)

NET ASSETS

2,797,161

3,421,155

CAPITAL AND RESERVES

Called up share capital

16

160

160

Share premium

157,440

157,440

Retained earnings

2,639,561

3,263,555

SHAREHOLDERS' FUNDS

2,797,161

3,421,155

The financial statements were approved by the Board of Directors and authorised for issue on 25 October 2023 and were signed on its behalf by:

B Smith - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2021

160

2,809,002

157,440

2,966,602

Changes in equity

Total comprehensive income

-

454,553

-

454,553

Balance at 31 March 2022

160

3,263,555

157,440

3,421,155

Changes in equity

Total comprehensive income

-

(623,994

)

-

(623,994

)

Balance at 31 March 2023

160

2,639,561

157,440

2,797,161

Cash flows from operating activities

Cash generated from operations

1

1,001,523

2,044,473

Interest paid

(62,286

)

(78,860

)

Interest element of hire purchase payments paid

(24,949

)

(24,323

)

Tax paid

(17,151

)

-

Net cash from operating activities

897,137

1,941,290

Cash flows from investing activities

Purchase of tangible fixed assets

(1,929,657

)

(1,045,420

)

Sale of tangible fixed assets

143,909

43,240

Group loan repayments

(499,188

)

(337,703

)

Interest received

839

348

Net cash from investing activities

(2,284,097

)

(1,339,535

)

Cash flows from financing activities

New HP in the year

850,793

357,600

Capital repayments in year

(451,857

)

(434,859

)

Government grants

-

5,310

Net cash from financing activities

398,936

(71,949

)

(Decrease)/increase in cash and cash equivalents

(988,024

)

529,806

Cash and cash equivalents at beginning of year

2

1,501,203

971,397

Cash and cash equivalents at end of year

2

513,179

1,501,203

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023

2022

£

£

(Loss)/profit before taxation

(574,964

)

534,600

Depreciation charges

1,499,012

1,470,692

Profit on disposal of fixed assets

(19,464

)

(27,617

)

Government grants

-

(5,310

)

Finance costs

87,235

103,183

Finance income

(839

)

(348

)

990,980

2,075,200

Decrease/(increase) in stocks

5,192

(7,322

)

(Increase)/decrease in trade and other debtors

(54,379

)

18,335

Increase/(decrease) in trade and other creditors

59,730

(41,740

)

Cash generated from operations

1,001,523

2,044,473

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 2023

31/3/23

1/4/22

£

£

Cash and cash equivalents

513,179

1,501,203

Year ended 31 March 2022

31/3/22

1/4/21

£

£

Cash and cash equivalents

1,501,203

971,397

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

At 1/4/22

Cash flow

At 31/3/23

£

£

£

Net cash

Cash at bank and in hand

1,501,203

(988,024

)

513,179

1,501,203

(988,024

)

513,179

Debt

Finance leases

(817,753

)

(398,932

)

(1,216,685

)

(817,753

)

(398,932

)

(1,216,685

)

Total

683,450

(1,386,956

)

(703,506

)

1.	STATUTORY INFORMATION

M. & M. Skip Hire Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Related party exemption

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.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax. Income from the hire of skips is recognised when the skip is delivered.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of six 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.

Weighbridge

-

10% on cost

Improvements to leasehold

-

25% on cost, 12.5% on cost and 2% on cost

Plant and machinery

-

50% on cost, 25% on cost and 20% on cost

Recycling plant

-

12.5% or 25% on cost

Motor vehicles

-

25% on cost

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in other income within profit or loss in the same period as the related expenditure. This includes the Government Coronavirus Job Retention Scheme.

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 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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

3.	EMPLOYEES AND DIRECTORS

The total wages and salaries cost for the year was £2,971,668 (£2,768,316 in 2022).

The total social security cost for the year was £317,344 (£276,210 in 2022).

The total pension cost for the year was £81,741 (£74,809 in 2022).

The average number of employees in the year was 84 (80 in 2022)

2023

2022

£

£

Directors' remuneration

256,367

195,337

Directors' pension contributions to money purchase schemes

23,703

20,701

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director for the year ended 31 March 2023 is as follows:

2023

£

Emoluments etc

161,309

Pension contributions to money purchase schemes

14,400

4.	OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

2023

2022

£

£

Depreciation - owned assets

1,093,508

994,764

Depreciation - assets on hire purchase contracts

388,107

458,871

Profit on disposal of fixed assets

(19,464

)

(27,617

)

Goodwill amortisation

17,400

17,055

Auditors' remuneration

14,590

12,420

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

Loan

62,286

78,860

Hire purchase

24,949

24,323

87,235

103,183

6.

TAXATION

Analysis of the tax charge

The tax charge on the loss for the year was as follows:

2023

2022

£

£

Current tax:

UK corporation tax

(17,151

)

17,151

Deferred tax

66,181

62,896

Tax on (loss)/profit

49,030

80,047

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023

2022

£

£

(Loss)/profit before tax

(574,964

)

534,600

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

(109,243

)

101,574

Effects of:

Expenses not deductible for tax purposes

1,135

115

Capital allowances in excess of depreciation

(124,638

)

(46,653

)

Utilisation of tax losses

(17,151

)

(37,885

)

Deferred taxation

66,181

62,896

Losses c/f to future periods

232,746

-

Total tax charge

49,030

80,047

7.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2022

and 31 March 2023

103,778

AMORTISATION

At 1 April 2022

18,233

Amortisation for year

17,400

At 31 March 2023

35,633

NET BOOK VALUE

At 31 March 2023

68,145

At 31 March 2022

85,545

Goodwill is the amount paid in connection with the acquisition of the assets of SCB (Skip Hire) Limited on 17th March 2021. This is being amortised over the estimated useful life to March 2027.

The consideration transferred in respect of this purchase totalled £621,948 which was recognised in the 2021 accounts as follows, in accordance with the business sale agreement:

Goodwill £103,778

Plant & Machinery £300,623

Motor Vehicles £217,547

8.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

Weighbridge

leasehold

machinery

£

£

£

COST

At 1 April 2022

16,220

1,190,481

1,776,613

Additions

-

9,672

105,666

Disposals

-

-

(11,247

)

At 31 March 2023

16,220

1,200,153

1,871,032

DEPRECIATION

At 1 April 2022

16,220

370,045

1,229,435

Charge for year

-

58,738

192,612

Eliminated on disposal

-

-

(11,247

)

At 31 March 2023

16,220

428,783

1,410,800

NET BOOK VALUE

At 31 March 2023

-

771,370

460,232

At 31 March 2022

-

820,436

547,178