Forward Waste Management Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05886274 (England and Wales)

FORWARD WASTE MANAGEMENT LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2018

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

L P L Ward

W J Ward

J A Jasper

P J Roberts

R C Brown

SECRETARY:

L P L Ward

REGISTERED OFFICE:

Forward House

East Moors Road

CARDIFF

CF24 5EE

REGISTERED NUMBER:

05886274 (England and Wales)

ACCOUNTANTS:

Watts Gregory LLP

Chartered Accountants

Elfed House

Oak Tree Court

Cardiff Gate Business Park

CARDIFF

County of Cardiff

CF23 8RS

FIXED ASSETS

Intangible assets

4

1,010

1,514

Tangible assets

5

1,680,395

1,466,020

Investments

6

49,296

49,296

1,730,701

1,516,830

CURRENT ASSETS

Stocks

27,097

19,400

Debtors

7

1,824,734

1,655,881

Cash at bank and in hand

142,855

85,277

1,994,686

1,760,558

CREDITORS

Amounts falling due within one year

8

(2,253,373

)

(2,139,596

)

NET CURRENT LIABILITIES

(258,687

)

(379,038

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,472,014

1,137,792

CREDITORS

Amounts falling due after more than one year

9

(440,116

)

(553,582

)

NET ASSETS

1,031,898

584,210

CAPITAL AND RESERVES

Called up share capital

13

2,000

2,000

Retained earnings

14

1,029,898

582,210

SHAREHOLDERS' FUNDS

1,031,898

584,210

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

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

(b)

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

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved for issue by the Board of Directors on 5 October 2018 and were signed on its behalf by:

L P L Ward - Director

1.	STATUTORY INFORMATION

Forward Waste Management 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 company's functional and presentational currency in the financial statements is the Sterling (£), rounded to

the nearest pound.

The significant accounting policies applied in the presentation of these financial statements are set out below.

These policies have been consistently applied to all years presented unless otherwise stated.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of 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.

There have been no material departures from Financial Reporting Standard 102 1A.

Going concern

At 30 June 2018 the company had net current liabilities of £258,687 (2017- £379,038). The directors are

confident that the company will continue to trade profitably and generate sufficient funds in order to pay creditors

as they fall due. The majority of tangible fixed assets are the subject of rental contracts with customers and

produce a gross rental income of approximately £460,000 per annum. Accordingly, the going concern basis

adopted for the preparation of the financial statements is considered to be appropriate.

Preparation of consolidated financial statements

The financial statements contain information about Forward Waste Management Limited as an individual

company and do not contain consolidated financial information as the parent of a group. The company has

taken the option under Section 399 of the Companies Act 2006 not to prepare consolidated financial statements.

Turnover

Turnover represents amounts chargeable in respect of the sale of goods and services and rentals receivable

from customers net of value added tax.

Goodwill

On 1 April 2011, goodwill was transferred with the trade, assets and liabilities from a group company. Goodwill,

being the amount paid in connection with the acquisition of a business in 2005, which has been fully amortised

over a period of 10 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.

Design costs for compactor build are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable

to making the asset capable of operating as intended.

Depreciation is provided at rates calculated to write off fixed assets, less their estimated residual value, over

their expected useful lives on the following bases:

Improvements to property

-

10 - 20% on cost

Plant and machinery

-

10 - 33% on cost

Fixtures and fittings

-

10 - 33% on cost

Motor vehicles

-

33% on cost

Computer equipment

-

33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

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

slow moving items.

Taxation

Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and

is calculated using the tax rates and laws that have been enacted or substantially enacted at the balance sheet

date.

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

balance sheet date.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not

that there will be suitable taxable profits which the future reversal of the underlying timing differences can be

deducted.

Deferred tax is measured on an un-discounted basis at the tax rates that are expected to apply in the periods in

which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance

sheet date.

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.

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with

the lessor are charged against profits on a straight line basis over the period of the lease.

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.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees

are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

Invoice discounting

The company has in place an invoice discounting arrangement. Invoices which are subject to this arrangement

form part of the 'trade debtor' balance, with amounts due to the finance company in respect of advances forming

the 'financing of trade debtors' balance within creditors falling due within one year..

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the profit and loss account in other

administrative expenses.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 36 (2017 - 30 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 July 2017

and 30 June 2018

36,835

1,604

38,439

AMORTISATION

At 1 July 2017

36,835

90

36,925

Charge for year

-

504

504

At 30 June 2018

36,835

594

37,429

NET BOOK VALUE

At 30 June 2018

-

1,010

1,010

At 30 June 2017

-

1,514

1,514

5.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST

At 1 July 2017

-

4,625

3,357,956

Additions

33,650

-

311,565

Disposals

-

-

(113,476

)

At 30 June 2018

33,650

4,625

3,556,045

DEPRECIATION

At 1 July 2017

-

4,625

1,994,397

Charge for year

-

-

296,633

Eliminated on disposal

-

-

(86,756

)

At 30 June 2018

-

4,625

2,204,274

NET BOOK VALUE

At 30 June 2018

33,650

-

1,351,771

At 30 June 2017

-

-

1,363,559

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 July 2017

130,119

63,078

20,648

3,576,426

Additions

186,849

59,285

11,066

602,415

Disposals

(1,242

)

-

(764

)

(115,482

)

At 30 June 2018

315,726

122,363

30,950

4,063,359

DEPRECIATION

At 1 July 2017

71,934

26,288

13,162

2,110,406

Charge for year

42,959

15,083

6,073

360,748

Eliminated on disposal

(1,008

)

-

(426

)

(88,190

)

At 30 June 2018

113,885

41,371

18,809

2,382,964

NET BOOK VALUE

At 30 June 2018

201,841

80,992

12,141

1,680,395

At 30 June 2017

58,185

36,790

7,486

1,466,020

All assets classified within 'plant and machinery' are held for use in operating leases.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 July 2017

428,914

17,175

48,176

494,265

Additions

3,828

-

21,272

25,100

At 30 June 2018

432,742

17,175

69,448

519,365

DEPRECIATION

At 1 July 2017

84,111

7,155

14,060

105,326

Charge for year

57,018

5,724

10,755

73,497

At 30 June 2018

141,129

12,879

24,815

178,823

NET BOOK VALUE

At 30 June 2018

291,613

4,296

44,633

340,542

At 30 June 2017

344,803

10,020

34,116

388,939

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 July 2017

and 30 June 2018

49,296

NET BOOK VALUE

At 30 June 2018

49,296

At 30 June 2017

49,296

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

1,683,293

1,510,859

Amounts owed by group undertakings

-

3,113

Other debtors

39,360

43,926

Directors' current accounts

-

5,505

Deferred tax asset

2,406

5,768

Prepayments and accrued income

99,675

86,710

1,824,734

1,655,881

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

686

-

Other loans

27,118

33,206

Financing of trade debtors

610,647

530,718

Hire purchase contracts (see note 10)

107,363

106,825

Trade creditors

749,577

1,016,883

Amounts owed to group undertakings

3,000

-

Corporation tax

145,374

63,496

Social security and other taxes

28,884

32,747

VAT

133,954

108,022

Other creditors

5,734

1,997

Amounts due to related party

41

51

Directors' current accounts

4,045

-

Accruals and deferred income

436,950

245,651

2,253,373

2,139,596

Financing of trade debtors of £610,647 relates to amounts received for invoice discounting. The specific debtors

are included within trade debtors of £1,683,293.

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Bank loans

150,000

150,000

Other loans

-

26,896

Preference shares

138,792

138,792

Hire purchase contracts (see note 10)

151,324

237,894

440,116

553,582

PREFERENCE SHARES

Details of shares shown as liabilities are as follows:

Allotted and issued

Number:

Class

Nominal

2018

20177

Value:

£

£

138,792

Preference shares

£1

138,792

138,792

The redeemable preference shares are interest bearing (from 1 May 2014) and have no voting rights.

Redemption of the preference shares shall be at the sole instance of the Board of Directors. The preference

shares can be redeemed in full or in part at any time if the company serves notice to the preference share

holders. Redemption shall carry a premium of 16%.

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

£

£

Net obligations repayable:

Within one year

107,363

106,825

Between one and five years

151,324

237,894

258,687

344,719

Non-cancellable operating

leases

2018

2017

£

£

Within one year

96,227

115,751

Between one and five years

91,132

197,087

In more than five years

-

3,557

187,359

316,395

11.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank overdraft

686

-

Other loans

27,118

60,102

Hire purchase contracts

258,687

344,719

Financing of trade debtors

-

530,718

286,491

935,539

LPL Ward has personally guaranteed £50,000 of other loans. LPL Ward and WJ Ward have offered warranty

and indemnity against the invoice discounting accounts, and have also guaranteed several finance leases taken

out by the company. At 30 June 2018, the liability outstanding on these finance leases is £61,121.

12.	DEFERRED TAX

Provisions for liabilities in the prior year relate solely to deferred tax.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class

Nominal

2018

2017

value:

£

£

1,200

Ordinary

£1

1,200

1,200

514 (2017 - 800)

Ordinary A

£1

514

800

286 (2017 - nil)

Deferred

£1

286

-

2,000

2,000

During the year, 286 shares have been amended from Ordinary A shares to deferred shares.

14.

RESERVES

Retained

earnings

£

At 1 July 2017

582,210

Profit for the year

663,688

Dividends

(216,000

)

At 30 June 2018

1,029,898

15.	PENSION COMMITMENTS

During the year the company contributed £31,570 (2017: £15,896) into defined contribution pension schemes.

At the year end there was £5,734 (2017: £1,997) outstanding.

16.	CONTINGENT LIABILITIES

The company has provided a cross guarantee to secure bank overdrafts, other loans and hire purchase

creditors of Enviroquip Limited and Forward Equipment Rentals Limited. As at 30 June 2018, the outstanding

liability covered by the cross guarantee is £Nil (2017: £Nil).

17.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At 30 June 2018, L P L Ward owed the company nil (2017: £5,505). During the year total advances and credits

including interest amounted to £128,859, with total repayments being made of £134,364.

At 30 June 2018, the company owed W J Ward £4,045 (2017: £nil). During the year total advances and credits

including interest amounted to £77,996, with total repayments being made of £82,041.

Total interest of £nil (2017: £305) has been charged on the directors' loan accounts at a commercial rate of

interest.