S & B Industrial Investments Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04906215 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements

for the Year Ended 31 March 2018

for

S & B Industrial Investments Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

6

Consolidated Balance Sheet

7

Company Balance Sheet

8

Consolidated Statement of Changes in Equity

9

Company Statement of Changes in Equity

10

Consolidated Cash Flow Statement

11

Notes to the Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

DIRECTOR:

Miss S R Broadley

SECRETARY:

Mrs K J Broadley

REGISTERED OFFICE:

39 High Street

Wednesfield

Wolverhampton

West Midlands

WV11 1ST

BUSINESS ADDRESS:

26 Purbrook Road

Monmore Green

Wolverhampton

West Midlands

WV1 2EJ

REGISTERED NUMBER:

04906215 (England and Wales)

AUDITORS:

Crowther Jordan Limited

Chartered Accountants

Statutory Auditors

39 High Street

Wednesfield

Wolverhampton

West Midlands

WV11 1ST

The director presents her strategic report of the company and the group for the year ended 31 March 2018.

REVIEW OF BUSINESS

The results for the financial year and the financial position of the group are shown in the annexed financial

statements.

The group continued to operate principally as a UK based waste management and recycling operator. The majority of

group operating income is derived from S & B Waste Management & Recycling Limited. Whilst competition remained

strong, turnover during the year increased by approximately 4.3%. Gross profit also increased as more cost increases

were passed on to customers and measures taken to improve sorting and develop waste to energy products came on

stream and better matched the range of waste product being managed.

PRINCIPAL RISKS AND UNCERTAINTIES

Although the past twelve months has seen the intensity of local competition decrease, it remains a continuing risk to

the group.

The ability of the group to respond to changes in the type of waste being managed and to provide cost effective

processing and disposal is a key challenge.

Brexit presents many challenges but is virtually impossible to quantify with any precision at this time. The uncertainty

has already led to increased disposal costs due to a weakening Sterling despite strong demand from Europe for refuse

derived fuel products. In order to reduce this risk and uncertainty, the company is expanding its range of products

and UK supply base in order to reduce cost volatility and reliance on European users.The directors believe that Brexit

will have little direct impact on sales revenues since most waste product managed is locally derived. The indirect

impact of Brexit is more difficult to assess as this is ultimately dependent upon the impact of Brexit on the UK

customer base.

DEVELOPMENT AND FUTURE OUTLOOK

The market for waste management is expected to grow at a moderate rate in the short to medium term. National and

international competitors are expected to have increasing influence on the local markets as economies of scale and

currency volatility have more impact.

The group remains committed to increasing productivity, minimising landfill and increasing levels of recycling through

the adoption of new and innovative technologies. The company is working to develop additional waste to energy

products and the identification of alternative ways of utilising waste product.

CONCLUSION

The director expects growth to continue during 2018. The development of additional waste to energy products for

UK users is expected to reduce the adverse effects of the weak currency on disposal costs and enhance profitability.

ON BEHALF OF THE BOARD:

Director

17 December 2018

The director presents her report with the financial statements of the company and the group for the year ended

31 March 2018.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of waste management.

DIVIDENDS

Interim dividends totalling £460 per share were paid during the year. The director recommends that no final dividend

be paid.

The total distribution of dividends for the year ended 31 March 2018 will be £ 92,000 .

DIRECTOR

Miss S R Broadley held office during the whole of the period from 1 April 2017 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial

statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director

has 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 director must not

approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the

company and the group and of the profit or loss of the group for that period. In preparing these financial statements,

the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the

company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group and enable her to ensure that the financial statements comply with the Companies Act 2006.

She is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the group's auditors are unaware, and she has taken all the steps that she ought to have taken as a

director in order to make herself aware of any relevant audit information and to establish that the group's auditors

are aware of that information.

ON BEHALF OF THE BOARD:

Miss S R Broadley - Director

17 December 2018

Opinion

We have audited the financial statements of S & B Industrial Investments Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 31 March 2018 which comprise the Consolidated Statement of

Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in

Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated

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 group's and of the parent company affairs as at 31 March 2018 and of the group's 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 Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the group 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The director is responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Director, 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 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, 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 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained

in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report

of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is

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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to

cease operations, or has 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.

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.

Stephen Gray (Senior Statutory Auditor)

for and on behalf of Crowther Jordan Limited

Chartered Accountants

Statutory Auditors

39 High Street

Wednesfield

Wolverhampton

West Midlands

WV11 1ST

17 December 2018

TURNOVER

8,777,756

8,418,287

Cost of sales

6,320,518

6,146,185

GROSS PROFIT

2,457,238

2,272,102

Administrative expenses

1,219,350

1,319,544

1,237,888

952,558

Other operating income

89,665

10,234

OPERATING PROFIT

4

1,327,553

962,792

Interest receivable and similar income

1,666

1,995

1,329,219

964,787

Interest payable and similar expenses

5

12,196

14,580

PROFIT BEFORE TAXATION

1,317,023

950,207

Tax on profit

6

263,251

182,447

PROFIT FOR THE FINANCIAL YEAR

1,053,772

767,760

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,053,772

767,760

Profit attributable to:

Owners of the parent

1,053,772

767,760

Total comprehensive income attributable to:

Owners of the parent

1,053,772

767,760

FIXED ASSETS

Intangible assets

9

71,008

79,884

Tangible assets

10

4,484,622

3,891,989

Investments

11

-

-

Investment property

12

720,000

955,000

5,275,630

4,926,873

CURRENT ASSETS

Stocks

13

28,500

26,400

Debtors

14

3,817,666

3,214,263

Cash at bank and in hand

1,256,815

1,121,130

5,102,981

4,361,793

CREDITORS

Amounts falling due within one year

15

1,319,008

1,229,722

NET CURRENT ASSETS

3,783,973

3,132,071

TOTAL ASSETS LESS CURRENT LIABILITIES

9,059,603

8,058,944

CREDITORS

Amounts falling due after more than one year

16

(58,133

)

(27,773

)

PROVISIONS FOR LIABILITIES

19

(128,822

)

(120,295

)

NET ASSETS

8,872,648

7,910,876

CAPITAL AND RESERVES

Called up share capital

20

200

200

Other reserves

21

48,289

149,170

Retained earnings

21

8,824,159

7,761,506

SHAREHOLDERS' FUNDS

8,872,648

7,910,876

The financial statements were approved and authorised for issue by the director on 17 December 2018 and were

signed by:

Miss S R Broadley - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

3,023,003

2,412,844

Investments

11

746,393

746,393

Investment property

12

2,473,165

2,701,119

6,242,561

5,860,356

CURRENT ASSETS

Debtors

14

638,848

511,530

Cash at bank

22,585

26,032

661,433

537,562

CREDITORS

Amounts falling due within one year

15

479,263

581,203

NET CURRENT ASSETS/(LIABILITIES)

182,170

(43,641

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,424,731

5,816,715

CREDITORS

Amounts falling due after more than one year

16

(58,133

)

(27,773

)

PROVISIONS FOR LIABILITIES

19

(147,693

)

(167,061

)

NET ASSETS

6,218,905

5,621,881

CAPITAL AND RESERVES

Called up share capital

20

200

200

Other reserves

21

874,931

1,057,454

Retained earnings

21

5,343,774

4,564,227

SHAREHOLDERS' FUNDS

6,218,905

5,621,881

Company's profit for the financial year

689,024

800,548

The financial statements were approved and authorised for issue by the director on 17 December 2018 and were signed by:

Miss S R Broadley - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 April 2016

200

7,068,986

145,930

7,215,116

Changes in equity

Dividends

-

(72,000

)

-

(72,000

)

Total comprehensive income

-

764,520

3,240

767,760

Balance at 31 March 2017

200

7,761,506

149,170

7,910,876

Changes in equity

Dividends

-

(92,000

)

-

(92,000

)

Total comprehensive income

-

1,154,653

(100,881

)

1,053,772

Balance at 31 March 2018

200

8,824,159

48,289

8,872,648

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 April 2016

200

3,835,679

1,057,454

4,893,333

Changes in equity

Dividends

-

(72,000

)

-

(72,000

)

Total comprehensive income

-

800,548

-

800,548

Balance at 31 March 2017

200

4,564,227

1,057,454

5,621,881

Changes in equity

Dividends

-

(92,000

)

-

(92,000

)

Total comprehensive income

-

871,547

(182,523

)

689,024

Balance at 31 March 2018

200

5,343,774

874,931

6,218,905

Cash flows from operating activities

Cash generated from operations

1

1,655,914

1,159,322

Interest paid

-

(3,761

)

Interest element of hire purchase payments paid

(12,196

)

(10,819

)

Tax paid

(281,190

)

(255,279

)

Net cash from operating activities

1,362,528

889,463

Cash flows from investing activities

Purchase of intangible fixed assets

-

(88,760

)

Purchase of tangible fixed assets

(1,472,057

)

(974,784

)

Sale of tangible fixed assets

74,906

12,900

Sale of investment property

199,001

-

Interest received

1,666

1,995

Net cash from investing activities

(1,196,484

)

(1,048,649

)

Cash flows from financing activities

Loan repayments in year

-

(50,000

)

Capital repayments in year

61,641

(72,463

)

Amount introduced by directors

-

64,886

Other provisions

-

(50,000

)

Equity dividends paid

(92,000

)

(72,000

)

Net cash from financing activities

(30,359

)

(179,577

)

Increase/(decrease) in cash and cash equivalents

135,685

(338,763

)

Cash and cash equivalents at beginning of year

2

1,121,130

1,459,893

Cash and cash equivalents at end of year

2

1,256,815

1,121,130

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.18

31.3.17

£

£

Profit before taxation

1,317,023

950,207

Depreciation charges

789,996

631,647

Loss/(profit) on disposal of fixed assets

59,397

(5,298

)

Finance costs

12,196

14,580

Finance income

(1,666

)

(1,995

)

2,176,946

1,589,141

Increase in stocks

(2,100

)

(8,900

)

Increase in trade and other debtors

(597,913

)

(208,374

)

Increase/(decrease) in trade and other creditors

78,981

(212,545

)

Cash generated from operations

1,655,914

1,159,322

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 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

1,256,815

1,121,130

Year ended 31 March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

1,121,130

1,459,893

1.	STATUTORY INFORMATION

S & B Industrial Investments 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 General Information

page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

The accompanying financial statements and related notes present the consolidated financial position as of 31

March 2018 and the consolidated results of the operations and cash flows. All significant intercompany

transactions have been eliminated.

Turnover

Turnover represents amounts chargeable in respect of goods and services supplied, excluding value added tax.

Turnover from the provision of skips is recognised when the skips are physically delivered to the customer.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten 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.

Freehold property

-

2% on cost

Plant and machinery

-

25% on reducing balance and 15% on reducing balance

Skips

-

25% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

15% on reducing balance

Investment property

The Group carries its investment property at fair value, with changes in fair value being recognised in the profit

and loss.

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 Consolidated 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.

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 group operates a defined contribution pension scheme. Contributions payable to the group's pension

scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

31.3.18

31.3.17

£

£

Wages and salaries

1,406,077

1,294,234

Social security costs

96,180

90,471

Other pension costs

4,911

4,328

1,507,168

1,389,033

The average number of employees during the year was as follows:

31.3.18

31.3.17

Management

3

3

Administration

12

12

Direct Labour

40

36

55

51