Forward Waste Management Limited - Period Ending 2023-06-30
Forward Waste Management Limited - Period Ending 2023-06-30
Registration number:
for the
Year Ended 30 June 2023
Forward Waste Management Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Forward Waste Management Limited
Company Information
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Directors |
E R Coggins J A Jasper L P L Ward W J Ward |
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Company secretary |
L P L Ward |
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Registered office |
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Auditors |
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Forward Waste Management Limited
Strategic Report for the Year Ended 30 June 2023
The directors present their strategic report for the year ended 30 June 2023.
Principal activity
The principal activity of the company is the provision of waste management services and the manufacture, supply and hiring out of waste processing equipment.
Fair review of the business
The results for the year which are set out in the profit and loss account show turnover of £10,626,376 (2022 - £9,808,521) and an operating profit of £622,532 (2022 - £163,751).
The company’s key financial and other performance indicators during the year were turnover, operating profit and EBITDA (earnings before interest, tax, depreciation and amortization). The table below illustrates a growth in both turnover and performance.
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Unit |
2023 |
2022 |
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Turnover |
£ |
10,626,376 |
9,808,521 |
|||
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Gross profit margin |
% |
35.6 |
32.9 |
|||
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Operating profit |
£ |
622,532 |
163,751 |
|||
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EBITDA |
£ |
1,245,003 |
710,810 |
The directors consider the results for the year and the financial position at the year-end to be positive. The company has achieved an increase in turnover of 8% through continued growth of its customer base in a wide range of industry sectors together with the opening of a hazardous waste transfer station in Summer 2022.
In addition, new recycling processes have been introduced which have broadened market opportunities. This includes plastic granulation and secure shredding services.
The company started to repay the Coronavirus Business Interruption Loan (‘CBILS’) in June 2022 and there was a full year of repayments during the current year.
In previous years there was significant investment in infrastructure including relocating the company’s engineering division ‘Enviroquip’ to a separate premises and the opening of the Hazardous Waste Transfer facility. Lower levels of investment in infrastructure have been required this year.
A key development during the year has been ‘Enviroquip’ designing innovative waste handling and processing solutions that provide real time management data, underpinning the group objective of ‘reducing waste in every way’. The has enabled the company to invest further in its apprenticeship program.
The directors continue to be committed to ensuring an exemplary standard for health & safety. The company has maintained its qualifications in ISO14001 Environmental Management, ISO45001 Health & Safety Management and ISO9001 Quality Management.
During the current financial year, the company has also invested significantly in the training and development of all staff, particularly the senior management team, to ensure that we have the platform for future growth to complement the site infrastructure.
The company has also re-focused on driving the values of the company, being as follows:
Trust;
Preparation;
Persistence;
Thoroughness; and
Creativity.
Post year-end the Company received a nomination at the National Recycling Awards and the directors were delighted to win the Employee Training & Skills category.
Forward Waste Management Limited
Strategic Report for the Year Ended 30 June 2023
Principal risks and uncertainties
The directors continually review and evaluate the risks that the company is facing and continue to apply a prudent approach to the management of the business. The company’s operations expose it to a variety of risks as noted in the report of directors. The company has a strong risk management culture that seeks to limit the adverse effects on the financial performance of the company by monitoring and taking steps to manage the factors that contribute to such risks.
Future developments
The business has a strong balance sheet which enables continued growth in the medium to long term. The outlook for the following year remains positive as we continue to service our existing customer base, and in addition grow the engineering and hazardous waste divisions.
Approved by the
Director
Forward Waste Management Limited
Directors' Report for the Year Ended 30 June 2023
The directors present their report and the financial statements for the year ended 30 June 2023.
Directors of the company
The directors who held office during the year were as follows:
Matters covered in the strategic report
The company's business environment and risks, together with details of monitoring undertaken by the directors and future developments are dealt with elsewhere in the strategic report.
Financial instruments
Objectives and policies
The directors have close involvement in the day to day running of the business and, as such, have detailed knowledge of the financial risks of the business. The objectives of financial risk management are to ensure the company has sufficient working capital and resources to be able to continue the business' growth strategy. The directors have put in systems and controls which monitor financial risk and highlight when potential issues may occur. Management have a good attitude towards financial risk and a detailed knowledge of the business and industry.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
Through careful monitoring of the company’s market place and competitors the company’s exposure to price risk is kept to a minimum.
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Company policies are aimed at minimizing such losses by adopting strict credit worthiness procedures and monitoring customer payment histories. The company has a large customer base of varying size and risk which covers a large geographical area and therefore minimizes the impact should a customer default on its terms.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations.
Cash flow risk
Cash flow risk is the risk that inflows and outflows of cash and cash equivalents will not be sufficient to finance day-to-day operations of the company. The company manages cash flow by careful negotiation of terms with customers and suppliers to maintain available funds to meet its liabilities as they fall due.
Going concern
The directors have prepared cash flow forecasts for the company for more than 12 months from the approval of the financial statements. After reviewing the company’s forecasts, and on the assumption that the bank continues to support the company the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors therefore consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustment that would result from insufficient facilities being made available to the company.
Directors' liabilities
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Forward Waste Management Limited
Directors' Report for the Year Ended 30 June 2023
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors Hazlewoods LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the
Director
Forward Waste Management Limited
Statement of Directors' Responsibilities
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 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 apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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.
Forward Waste Management Limited
Independent Auditor's Report to the Members of Forward Waste Management Limited
Opinion
We have audited the financial statements of Forward Waste Management Limited (the 'company') for the year ended 30 June 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 30 June 2023 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Directors' Report been prepared in accordance with applicable legal requirements. |
Forward Waste Management Limited
Independent Auditor's Report to the Members of Forward Waste Management Limited
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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 6, 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.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
Forward Waste Management Limited
Independent Auditor's Report to the Members of Forward Waste Management Limited
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• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
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• |
reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of this 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.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
Forward Waste Management Limited
Profit and Loss Account for the Year Ended 30 June 2023
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Note |
2023 |
2022 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
|
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|
Administrative expenses |
( |
( |
|
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Other operating income |
|
|
|
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Operating profit |
|
|
|
|
Interest payable and similar charges |
( |
( |
|
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no other comprehensive income for the year.
Forward Waste Management Limited
(Registration number: 05886274)
Balance Sheet as at 30 June 2023
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Note |
2023 |
2022 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
- |
- |
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Current assets |
|||
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Stocks |
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Debtors |
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Cash at bank and in hand |
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|
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||
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Creditors: Amounts falling due within one year |
( |
( |
|
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Net current liabilities |
( |
( |
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|
Total assets less current liabilities |
|
|
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
|||
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Called up share capital |
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Capital redemption reserve |
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Profit and loss account |
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Total equity |
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Approved and authorised by the
Director
Forward Waste Management Limited
Statement of Changes in Equity for the Year Ended 30 June 2023
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Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
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|
At 1 July 2022 |
|
|
|
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Profit for the year |
- |
- |
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Dividends |
- |
- |
( |
( |
|
At 30 June 2023 |
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Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 July 2021 |
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Profit for the year |
- |
- |
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Dividends |
- |
- |
( |
( |
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At 30 June 2022 |
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|
|
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Forward Waste Management Limited
Statement of Cash Flows for the Year Ended 30 June 2023
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Note |
2023 |
2022 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
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|
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Profit on disposal of tangible assets |
( |
( |
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Finance costs |
|
|
|
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Corporation tax expense |
|
|
|
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Research and development expenditure credit |
- |
(15,309) |
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|
|
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||
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Working capital adjustments |
|||
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(Increase)/decrease in stocks |
( |
|
|
|
Decrease/(increase) in trade and other debtors |
|
( |
|
|
(Decrease)/increase in trade and other creditors |
( |
|
|
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Increase in provisions |
|
|
|
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Increase in deferred income, including government grants |
|
|
|
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Cash generated from operations |
|
|
|
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Corporation taxes received |
|
- |
|
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Net cash flow from operating activities |
|
|
|
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Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
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Acquisition of intangible assets |
( |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
( |
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Proceeds from (repayments of) other borrowing draw downs |
( |
|
|
|
Repayment of other borrowing |
( |
( |
|
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Payments to finance lease creditors |
( |
( |
|
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Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
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Net increase in cash and cash equivalents |
|
|
|
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Cash and cash equivalents at 1 July |
|
|
|
|
Cash and cash equivalents at 30 June |
161,555 |
119,889 |
|
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Going concern
The directors have prepared cash flow forecasts for the company for more than 12 months from the approval of the financial statements. After reviewing the company’s forecasts, and on the assumption that the bank continues to support the company the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors therefore consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustment that would result from insufficient facilities being made available to the company.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
Management have made a significant judgement in regards to the dilapidations provision in the period. The carrying amount of the provision is £14,688 (2022 - £13,114). |
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services, including rentals, in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants relating to revenue are recognised in income in the period over which the income is receivable.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows.
Motor vehicles are given a residual value based on the expected fair value of the assets at the end of their useful economic lives.
|
Asset class |
Depreciation method and rate |
|
Leasehold improvements |
10% - 20% on cost |
|
Plant and machinery |
10% - 33% on cost |
|
Motor Vehicles |
33% on cost and 25%-33% reducing balance |
|
Furniture, fittings and equipment |
10% - 33% on cost |
|
Computer equipment |
33% on cost |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Separately acquired environmental permits and software costs are shown at historical cost.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life. Amortisation is recognised in administrative expenses. The useful lives are as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10 years straight line |
|
Computer software |
3 - 6 years straight line |
|
Environmental permits |
3 -10 years straight line |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors 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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2023 |
2022 |
|
|
Rendering of services |
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2023 |
2022 |
|
|
UK |
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2023 |
2022 |
|
|
Government grants |
- |
|
|
Miscellaneous other operating income |
|
|
|
|
|
The entity received grants in relation to the Coronavirus Job Retention Scheme (CJRS) which is accounted as a revenue grant. £Nil (2022 - £347) was released to the profit and loss in relation to this grant and the carrying value in accrued income at the end of the year was £nil (2022 - £nil).
|
Operating profit |
Arrived at after charging/(crediting):
|
2023 |
2022 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Research and development cost |
- |
( |
|
Foreign exchange (gains)/losses |
( |
|
|
Operating lease expense - property |
|
|
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Interest payable and similar expenses |
|
2023 |
2022 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2023 |
2022 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2023 |
2022 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Sales, marketing and distribution |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2023 |
2022 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
196,290 |
191,883 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2023 |
2022 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
2023 |
2022 |
|
|
Estimated money value of benefits in kind for audit services |
|
|
|
Estimated money value of benefits in kind for non-audit services |
|
|
|
27,300 |
22,960 |
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Taxation |
Tax charged in the profit and loss account
|
2023 |
2022 |
|
|
Current taxation |
||
|
UK corporation tax |
|
( |
|
UK corporation tax adjustment to prior periods |
- |
|
|
21,007 |
(14,412) |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
3,896 |
3,604 |
|
Total deferred taxation |
|
|
|
Tax expense in the profit and loss account |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2023 |
2022 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease from effect of change to UK tax rates |
( |
- |
|
Effect of revenues exempt from taxation |
( |
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Effect of tax losses |
( |
- |
|
Deferred tax expense relating to changes in tax rates or laws |
22,070 |
23,252 |
|
Deferred tax expense from unrecognised temporary difference from a prior period |
|
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
- |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Tax decrease from other short-term timing differences |
( |
- |
|
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
|
Tax increase from effect of indexation allowance on capital gains |
|
- |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
|
|
Total tax charge |
|
|
A UK corporation tax rate of 25% (effective 1 April 2023) was substantively enacted on 24 May 2021, increasing from 19%. This will increase the company's future current tax charge accordingly. The deferred tax asset as 30 June 2023 has been calculated at 25% (2022 - 25%).
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Deferred tax
Deferred tax assets and liabilities
|
2023 |
Asset |
|
Fixed asset timing differences |
|
|
Short term timing differences |
( |
|
|
|
2022 |
Liability |
|
Fixed asset timing differences |
|
|
Short term timing differences |
( |
|
Losses |
( |
|
|
|
Intangible assets |
|
Goodwill |
Computer software |
Environmental permits |
Total |
|
|
Cost |
||||
|
At 1 July 2022 |
|
|
|
|
|
Additions acquired |
- |
|
- |
|
|
At 30 June 2023 |
|
|
|
|
|
Amortisation |
||||
|
At 1 July 2022 |
|
|
|
|
|
Amortisation charge |
|
|
|
|
|
At 30 June 2023 |
|
|
|
|
|
Carrying amount |
||||
|
At 30 June 2023 |
|
|
|
|
|
At 30 June 2022 |
|
|
|
|
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Tangible assets |
|
Leashold improvements |
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Computer equipment |
Total |
|
|
Cost |
||||||
|
At 1 July 2022 |
|
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
|
Disposals |
- |
- |
( |
( |
- |
( |
|
At 30 June 2023 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 July 2022 |
|
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
- |
( |
|
At 30 June 2023 |
|
|
|
|
|
|
|
Carrying amount |
||||||
|
At 30 June 2023 |
|
|
|
|
|
|
|
At 30 June 2022 |
|
|
|
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2023 |
2022 |
|
|
Motor vehicles |
245,103 |
308,114 |
|
Plant and Machinery |
187,873 |
- |
|
432,976 |
308,114 |
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Investments |
|
2023 |
2022 |
|
|
Investments in subsidiaries |
- |
- |
|
Subsidiaries |
£ |
|
Cost |
|
|
At 1 July 2022 |
|
|
At 30 June 2023 |
|
|
Provision |
|
|
At 1 July 2022 |
|
|
At 30 June 2023 |
|
|
Carrying amount |
|
|
At 30 June 2023 |
- |
|
At 30 June 2022 |
- |
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2023 |
2022 |
|||
|
Subsidiary undertakings |
||||
|
|
Forward House, East Moors
|
|
|
|
|
Subsidiary undertakings |
|
Enviroquip Limited The principal activity of Enviroquip Limited is |
|
Stocks |
|
2023 |
2022 |
|
|
Raw materials and consumables |
|
|
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Debtors |
|
Note |
2023 |
2022 |
|
|
Trade debtors |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Corporation tax asset |
|
|
|
|
Total current trade and other debtors |
|
|
|
Cash and cash equivalents |
|
2023 |
2022 |
|
|
Cash at bank |
|
|
|
Creditors |
|
Note |
2023 |
2022 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Accrued expenses |
|
|
|
|
Deferred income |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Loans and borrowings |
|
2023 |
2022 |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
|
|
HP and finance lease liabilities |
|
|
|
Directors' loan account |
|
|
|
Other borrowings |
|
|
|
|
|
|
|
2023 |
2022 |
|
|
Non-current loans and borrowings |
||
|
Bank borrowings |
|
|
|
HP and finance lease liabilities |
|
|
|
|
|
|
Amounts due under hire purchase agreements are secured on the assets to which they relate.
Other borrowings of £491,096 (2022 - £617,124) comprises an invoice discounting facility secured against certain trade debtors of the company.
Bank borrowings comprise a Coronavirus Business Interruption Loan ("CBILS") of £826,667 (2022 - £986,667) which attracts interest at 3.8% plus the bank base rate. The loan is repayable in equal instalments of £13,333 and a final capital repayment of £240,000 . The final instalment is due in March 2027.
The bank loan is secured by a fixed charge over the assets of the company.
|
Deferred tax and other provisions |
|
Deferred tax |
Other provisions |
Total |
|
|
At 1 July 2022 |
|
|
|
|
Increase in existing provisions |
|
|
|
|
At 30 June 2023 |
|
|
|
|
|
|||
The provision for dilapidations is recognised based on the management's best estimate of the likely committed cash flow. The dilapidations provision relates to rental properties, for which the leases expire in January 2030 and 2031.
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Share capital |
Allotted, called up and fully paid shares
|
2023 |
2022 |
|||
|
No. |
£ |
No. |
£ |
|
|
Ordinary shares of £1 each |
1,200 |
1,200 |
1,200 |
1,200 |
|
Ordinary A shares of £1 each |
514 |
514 |
514 |
514 |
|
Deferred shares of £1 each |
286 |
286 |
286 |
286 |
|
2,000 |
2,000 |
2,000 |
2,000 |
|
Ordinary and Ordinary A shares rank pari passu in all respects. Deferred shares carry no rights to vote or distributions.
Post year end 171 Ordinary A shares have been reclassified to Ordinary shares.
|
Reserves |
Called up share capital
Represents the issued equity share capital of the company.
Capital redemption reserve
Represents amounts paid following a redemption or share buyback in accordance with Companies Act 2006.
Profit and loss account
Represents cumulative profits and losses, net of dividends paid and other adjustments
|
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
|
2023 |
2022 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2023 |
2022 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Forward Waste Management Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Dividends |
|
2023 |
2022 |
|
|
Dividends paid |
222,000 |
222,000 |
|
Commitments |
Capital commitments
The total amount contracted for but not provided in the financial statements was £Nil (2022 - £
|
Related party transactions |
Transactions with shareholders
During the year £222,000 (2022- £222,000) were declared to the shareholders of the company.
Transactions with other related parties
During the year purchases of £Nil (2022- £4,500) were made from companies under common control. At the balance sheet date, the amount due to companies under common control was £Nil (2022- £5,400).
Transactions with directors
At the balance sheet date, certain directors were owed £1,832 (2022- £22,663).