REGISTERED NUMBER:
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Strategic Report, |
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Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 December 2019 |
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for |
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PREMIER WASTE (UK) PLC |
REGISTERED NUMBER:
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Strategic Report, |
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Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 December 2019 |
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for |
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PREMIER WASTE (UK) PLC |
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
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Contents of the Financial Statements |
for the year ended 31 December 2019 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Report of the Independent Auditors | 4 |
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Statement of Income and Retained Earnings | 6 |
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Balance Sheet | 7 |
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Cash Flow Statement | 8 |
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Notes to the Cash Flow Statement | 9 |
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Notes to the Financial Statements | 10 |
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PREMIER WASTE (UK) PLC |
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Company Information |
for the year ended 31 December 2019 |
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Directors: |
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Secretary: |
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Registered office: |
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Business address: |
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Registered number: |
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Auditors: |
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5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
B15 3BE |
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Bankers: |
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P O Box 46 |
The Bridge |
Walsall |
West Midlands |
WS1 1LU |
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
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Strategic Report |
for the year ended 31 December 2019 |
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The directors present their strategic report for the year ended 31 December 2019. |
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Review of business |
We aim to present a balanced and comprehensive review of the development and performance of our business during |
the period and its position at the period end. Our review is consistent with the size and non-complex nature of our |
business and is written in the context of the risks and uncertainties we face. |
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There has been no change in the principal activities of the company during the period. |
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We consider that our key performance indicators are those that communicate the financial performance and strength |
of the company as a whole, these being turnover, gross margin and return on capital employed. |
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Turnover has increased by 2% compared to the previous period. Gross margin has increased to 37.77% (2018 |
33.50%). |
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Overall there has been an operating profit of £102,414 (2018 £720,231) and a profit before tax of £74,493 (2018 |
£708,167). After taxation, £69,224 has been added to reserves. |
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Return on capital employed has reduced to 3.98% (2018 31.80%). Return on capital employed is calculated as profit |
before exceptional items, interest and tax divided by capital employed, which constitutes total assets less current |
liabilities. |
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Principal risks and uncertainties |
As for many businesses of our size, the business environment in which we operate continues to be challenging. The |
market is highly competitive and margins continue to be under pressure. We are of course subject to world economic |
patterns and the level of activity within our economy. |
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With these risks and uncertainties in mind, we are aware that any plans for the future development of the business |
may be subject to unforseen future events outside our control. |
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Section 172(1) statement |
The directors consider that the company has acted in the best interests of its shareholders during the period under |
review. |
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Engagement with employees |
The company has fewer than 250 employees and so applies the exemption from the requirement to make disclosures |
regarding employee engagement policies. |
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Development and performance |
We consider that the financial position of the company at the period end is satisfactory, with adequate cash resources. |
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Events since the end of the year |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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On behalf of the board: |
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30 June 2020 |
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
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Report of the Directors |
for the year ended 31 December 2019 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2019. |
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Principal activity |
The principal activity of the company continues to be that of waste disposal. |
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Events since the end of the year |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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Directors |
The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this |
report. |
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Financial instruments |
Credit risk |
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are |
monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
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Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
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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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company
will continue in business. |
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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. |
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Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies |
Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to |
have taken as a director in order to make himself aware of any relevant audit information and to establish that the |
company's auditors are aware of that information. |
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Auditors |
In accordance with the company's articles, a resolution proposing that Haines Watts Birmingham LLP be reappointed |
as auditor of the company will be put at a General Meeting. |
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This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to |
small companies. |
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On behalf of the board: |
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Report of the Independent Auditors to the Members of |
Premier Waste (UK) Plc |
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Opinion |
We have audited the financial statements of Premier Waste (UK) Plc (the 'company') for the year ended |
31 December 2019 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow |
Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of |
significant accounting policies. The financial reporting framework that has been applied in their preparation is |
applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial |
Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting |
Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 December 2019 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. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. |
Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the |
financial statements section of our report. We are independent of the company in accordance with the ethical |
requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, |
and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit |
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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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: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the company'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. |
However, not all future events or conditions can be predicted. At the time of approval of this report, the COVID-19 viral |
pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of |
outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, |
suppliers, and wider economy. The directors' view on te impact of COVID-19 is disclosed in the accounting policies |
note. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the |
Auditors thereon. |
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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. |
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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. |
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Opinions on other matters 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 the Report of the Directors 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 the Report of the Directors have been prepared in accordance with applicable legal
requirements. |
Report of the Independent Auditors to the Members of |
Premier Waste (UK) Plc |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the |
audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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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: |
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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; or |
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the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare
a Strategic Report or in preparing the Report of the Directors. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are |
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, |
and for such internal control as the directors determine necessary to enable the preparation of financial statements that |
are free from material misstatement, whether due to fraud or error. |
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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. |
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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. |
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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. |
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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. |
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for and on behalf of
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5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
B15 3BE |
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PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
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Statement of Income and Retained Earnings |
for the year ended 31 December 2019 |
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2019 | 2018 |
Notes | £ | £ |
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Turnover | 3 |
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Cost of sales | ( |
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Gross profit |
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Administrative expenses | ( |
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83,260 | 700,486 |
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Other operating income | 4 |
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Operating profit | 6 |
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Interest payable and similar expenses | 7 | ( |
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Profit before taxation |
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Tax on profit | 8 | ( |
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Profit for the financial year |
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Retained earnings at beginning of year |
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Retained earnings at end of year |
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PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
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Balance Sheet |
31 December 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 9 |
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Current assets |
Debtors | 10 |
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Cash at bank and in hand |
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Creditors |
Amounts falling due within one year | 11 |
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Net current assets |
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Total assets less current liabilities |
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Creditors |
Amounts falling due after more than one
year |
12 |
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Provisions for liabilities | 15 | ( |
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Net assets |
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Capital and reserves |
Called up share capital | 16 |
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Retained earnings | 17 |
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Shareholders' funds |
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The financial statements were approved by the Board of Directors and authorised for issue on
signed on its behalf by: |
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PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
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Cash Flow Statement |
for the year ended 31 December 2019 |
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2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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Interest element of hire purchase payments
paid |
( |
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( |
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Net cash from operating activities | ( |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Sale of tangible fixed assets |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Capital repayments in year | ( |
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Net cash from financing activities | ( |
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(Decrease)/increase in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning
of year |
2 |
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3,050,484 |
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Cash and cash equivalents at end of year | 2 | 2,129,806 | 3,309,048 |
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
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Notes to the Cash Flow Statement |
for the year ended 31 December 2019 |
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1. | Reconciliation of profit before taxation to cash generated from operations |
2019 | 2018 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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(Profit)/loss on disposal of fixed assets | ( |
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Government grants | ( |
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Finance costs | 27,921 | 12,064 |
545,634 | 1,064,242 |
Increase in trade and other debtors | ( |
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Decrease in trade and other creditors | ( |
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Cash generated from operations | ( |
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2. | Cash and cash equivalents |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of |
these Balance Sheet amounts: |
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Year ended 31 December 2019 |
31/12/19 | 1/1/19 |
£ | £ |
Cash and cash equivalents | 2,129,806 | 3,309,048 |
Year ended 31 December 2018 |
31/12/18 | 1/1/18 |
£ | £ |
Cash and cash equivalents | 3,309,048 | 3,050,484 |
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3. | Analysis of changes in net funds |
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Other |
non-cash |
At 1/1/19 | Cash flow | changes | At 31/12/19 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 3,309,048 | (1,179,242 | ) | 2,129,806 |
3,309,048 | ( |
) | 2,129,806 |
Debt |
Finance leases | (578,039 | ) | 376,993 | - | (981,774 | ) |
(578,039 | ) | 376,993 | - | (981,774 | ) |
Total | 2,731,009 | (802,249 | ) | - | 1,148,032 |
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
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Notes to the Financial Statements |
for the year ended 31 December 2019 |
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1. | Statutory information |
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Premier Waste (UK) Plc is a private company , registered in England and Wales. The company's registered |
number and registered office address can be found on the Company Information page. |
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2. | Accounting policies |
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Basis of preparing the financial statements |
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard |
applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006. |
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The financial statements are prepared in sterling, which is the functional currency of the company. Monetary |
amounts in these financial statements are rounded to the nearest £. |
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The financial statements have been prepared under the historical cost convention. The principal accounting |
policies adopted are set out below. |
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The company is a 100% owned subsidiary of Premier Waste (UK) Holdings Plc. |
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The financial statements of the company are consolidated in the financial statements of the parent company. |
These consolidated financial statements are available from Companies House, Crown Way, Maindy, Cardiff, |
CF14 3UZ. |
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Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the company |
has adequate resources to continue in operational existence for the foreseeable future. In making this |
assessment the directors are required to consider a period of at least 12 months from the date of approval of |
the financial statements. |
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The impact of COVID-19 |
In response to the COVID-19 pandemic, the directors have further considered their cash flow projections to take |
into account the impact on the business of possible scenarios brought on by the impact of COVID-19, |
alongside the measures that they can take to mitigate the impact. Based on these assessments, and given the |
measures that could be undertaken to mitigate the current adverse conditions,together with the current |
resources available, the directors have undertaken to conclude that they can continue to adopt the going |
concern basis in preparing the financial statements. |
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Significant judgements and estimates |
In the application of the company’s accounting policies, the directors are required to make judgements, |
estimates and assumptions about the carrying amount 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. |
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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 where the revision affects only that |
period, or in the period of the revision and future periods where the revision affects both current and future |
periods. |
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Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for goods and services |
provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair |
value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
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When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is |
the present value of the future receipts. The difference between the fair value of the consideration and the |
nominal amount received is recognised as interest income. |
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Revenue is recognised when the significant risks and rewards of ownership have passed to the customer |
(usually on dispatch of the goods or service), the amount of revenue can be measured reliably, it is probable |
that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be |
incurred in respect of the transaction can be measured reliably. Where the outcome cannot be estimated |
reliably, revenue is recognised only to the extent that it is recoverable. |
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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2. | Accounting policies - continued |
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Tangible fixed assets |
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Long leasehold | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of |
depreciation and any impairment losses. |
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The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds |
and the carrying value of the asset, and is credited or charged to profit or loss. |
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Impairment of fixed assets |
At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to |
determine whether there is any indication that those assets have suffered an impairment loss. If any such |
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the |
impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the |
company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
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Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the |
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects |
current market assessments of the time value of money and the risks specific to the asset for which the |
estimates of future cash flows have not been adjusted. |
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If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, |
the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment |
loss is recognised immediately in profit or loss account, unless the relevant asset is carried at a revalued |
amount, in which case the impairment loss is treated as a revaluation decrease. |
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Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to |
apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating |
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount |
does not exceed the carrying amount that would have been determined had no impairment loss been |
recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised |
immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the |
reversal of the impairment loss is treated as a revaluation increase. |
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Cash at bank and in hand |
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, |
other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank |
overdrafts are shown within borrowings in current liabilities. |
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Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable |
assurance that the grant conditions will be met and the grants will be received. |
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Government grants relating to turnover are recognised as income over the periods when the related costs are |
accrued. Grants relating to an asset are recognised in income systemically over the assets expected useful life. |
If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the |
asset's carrying amount. |
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Government grants relating to property, plant and equipment are treated as deferred income and released to |
profit or loss over the expected useful lives of the assets concerned. |
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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2. | Accounting policies - continued |
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Financial instruments |
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 |
‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. |
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Financial instruments are recognised in the company's balance sheet when the company becomes party to the |
contractual provisions of the instrument. |
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Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when |
there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net |
basis or to realise the asset and settle the liability simultaneously. |
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Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction |
price including transaction costs and are subsequently carried at amortised cost using the effective interest |
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the |
present value of the future receipts discounted at a market rate of interest. Financial assets classified as |
receivable within one year are not amortised. |
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Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or |
joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are |
subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that |
investments in equity instruments that are not publicly traded and whose fair values cannot be measured |
reliably are measured at cost less impairment. |
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Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss account are assessed for indicators |
of impairment at each reporting end date. |
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Financial assets are impaired where there is objective evidence that, as a result of one or more events that |
occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If |
an asset is impaired, the impairment loss is the difference between the carrying amount and the present value |
of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is |
recognised in profit or loss account. |
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If there is a decrease in the impairment loss arising from an event occurring after the impairment was |
recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed |
what the carrying amount would have been, had the impairment not previously been recognised. |
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The impairment reversal is recognised in profit or loss account. |
|
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or |
are settled, or when the company transfers the financial asset and substantially all the risks and rewards of |
ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the |
asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
|
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual |
arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets |
of the company after deducting all of its liabilities. |
|
Basic financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies |
and preference shares that are classified as debt, are initially recognised at transaction price unless the |
arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of |
the future receipts discounted at a market rate of interest. |
|
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
|
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
2. | Accounting policies - continued |
Trade payables 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 payment is due within one year |
or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction |
price and subsequently measured at amortised cost using the effective interest method. |
|
Other financial liabilities |
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial |
instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and |
are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit |
or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is |
a cash flow hedge. |
|
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair |
value through profit or loss. Debt instruments may be designated as being measured at fair value though profit |
or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their |
performance evaluated on a fair value basis in accordance with a documented risk management or investment |
strategy. |
|
Financial liabilities and equity instruments are classified according to the substance of the contractual |
arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets |
of the company after deducting all of its liabilities. |
|
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or |
cancelled. |
|
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. |
Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion |
of the company. |
|
Taxation |
The tax expense represents the sum of the tax currently payable and deferred tax. |
|
Current tax |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported |
in the profit and loss account because it excludes items of income or expense that are taxable or deductible in |
other years and it further excludes items that are never taxable or deductible. The company’s liability for current |
tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
|
Deferred tax |
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised |
to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other |
future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill |
or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor |
the accounting profit. |
|
Leases |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks |
and rewards of ownership to the lessees. All other leases are classified as operating leases. |
|
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of |
inception and the present value of the minimum lease payments. The related liability is included in the balance |
sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. |
The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining |
balance of the liability. |
|
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss |
on a straight line basis over the term of the relevant lease except where another more systematic basis is more |
representative of the time pattern in which economic benefits from the leases asset are consumed. |
|
Pension costs and other post-retirement benefits |
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
2. | Accounting policies - continued |
|
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are |
required to be recognised as part of the cost of stock or fixed assets. |
|
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are |
received. |
|
Termination benefits are recognised immediately as an expense when the company is demonstrably committed |
to terminate the employment of an employee or to provide termination benefits. |
|
3. | Turnover |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by class of business is given below: |
|
2019 | 2018 |
£ | £ |
|
|
|
|
|
|
4. | Other operating income |
2019 | 2018 |
£ | £ |
Government grants |
|
|
|
5. | Employees and directors |
2019 | 2018 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2019 | 2018 |
|
Administrative | 4 | 4 |
Direct | 34 | 27 |
Directors | 2 | 2 |
|
|
|
2019 | 2018 |
£ | £ |
Directors' remuneration |
|
|
|
|
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
6. | Operating profit |
|
The operating profit is stated after charging/(crediting): |
|
2019 | 2018 |
£ | £ |
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
(Profit)/loss on disposal of fixed assets | ( |
) |
|
Auditors' remuneration |
|
|
|
7. | Interest payable and similar expenses |
2019 | 2018 |
£ | £ |
Hire purchase |
|
|
|
8. | Taxation |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
( |
) |
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% . |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is |
explained below: |
|
2019 | 2018 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2018 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
|
Utilisation of tax losses | ( |
) | ( |
) |
Gains not taxable |
|
|
Deferred tax profit and loss movement |
|
( |
) |
Total tax charge | 5,269 | 130,922 |
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
9. | Tangible fixed assets |
Fixtures |
Long | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 January 2019 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
( |
) |
|
( |
) | ( |
) |
At 31 December 2019 |
|
|
|
|
|
Depreciation |
At 1 January 2019 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
|
( |
) |
|
( |
) | ( |
) |
At 31 December 2019 |
|
|
|
|
|
Net book value |
At 31 December 2019 |
|
|
|
|
|
At 31 December 2018 |
|
|
|
|
|
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
Cost |
At 1 January 2019 |
|
|
|
Additions |
|
|
|
Disposals |
|
( |
) | ( |
) |
At 31 December 2019 |
|
|
|
Depreciation |
At 1 January 2019 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
( |
) | ( |
) |
At 31 December 2019 |
|
|
|
Net book value |
At 31 December 2019 |
|
|
|
At 31 December 2018 |
|
|
|
|
10. | Debtors: amounts falling due within one year |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Amounts owed by participating interests | - | 24,994 |
Prepayments and accrued income |
|
|
|
|
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
11. | Creditors: amounts falling due within one year |
2019 | 2018 |
£ | £ |
Hire purchase contracts (see note 13) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
VAT | 109,375 | 138,905 |
Other creditors |
|
|
Accruals and deferred income |
|
|
Deferred government grants |
|
|
|
|
|
12. | Creditors: amounts falling due after more than one year |
2019 | 2018 |
£ | £ |
Hire purchase contracts (see note 13) |
|
|
Deferred government grants |
|
|
|
|
|
13. | Leasing agreements |
|
Minimum lease payments under hire purchase fall due as follows: |
|
2019 | 2018 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. |
Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the |
assets. The average lease term is 3 to 5 years. All leases are on a fixed repayment basis and no arrangements |
have been entered into for contingent rental payments |
|
14. | Financial instruments |
|
The carrying amount of financial assets (debt instruments) carried at amortised cost is £2,363,532 (2018 |
£1,663,903). |
|
The carrying amount of financial liabilities measured at amortised cost is £4,132,235 (2018 £4,090,417). |
|
15. | Provisions for liabilities |
2019 | 2018 |
£ | £ |
Deferred tax | 138,866 | 133,597 |
|
Deferred tax |
£ |
Balance at 1 January 2019 |
|
Provided during year |
|
Balance at 31 December 2019 |
|
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
15. | Provisions for liabilities - continued |
|
The deferred tax charge represents timing differences on corporation tax payable arising from accelerated |
capital allowances claimed on fixed asset additions. The liability is expected to reverse by approximately |
£73,000 in the next accounting period. |
|
16. | Called up share capital |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 50,000 | 50,000 |
|
17. | Reserves |
Retained |
earnings |
£ |
|
At 1 January 2019 |
|
Profit for the year |
|
At 31 December 2019 |
|
|
18. | Pension commitments |
|
2019 | 2018 |
Defined contribution schemes | £ | £ |
|
Charge to profit or loss in respect of defined contribution schemes | 19,594 | 10,687 |
|
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the |
scheme are held separately from those of the company in an independently administered fund. |
|
19. | Related party disclosures |
|
|
2019 | 2018 |
£ | £ |
Purchase of goods and services |
|
|
Amount due to related party |
|
|
|
|
2019 | 2018 |
£ | £ |
Sales of goods and services |
|
|
Purchase of goods and services |
|
|
Property and equipment rentals | 158,002 | 158,002 |
Amount due from related party |
|
|
Amount due to related party |
|
|
Recognised bad or doubtful debts due from related parties |
|
|
PREMIER WASTE (UK) PLC (REGISTERED NUMBER: 03565632) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
20. | Post balance sheet events |
|
At the time of approval of these financial statements, the COVID-19 viral pandemic is one of the most |
significant economic events for the UK and the wider world. For entities with a year end 31 December 2019 or |
earlier, the emerging impact of COVD-19 in the post balance sheet period is viewed under UK accounting |
principles as a non-adjusting post balance sheet event. The directors are required, however, to consider the |
impact on the business in the post balance sheet period and on the outlook for the foreseeable future in terms |
of their confirmation of the going concern assumption as the appropriate basis for preparation of the accounts. |
Further details of the directors' view of the impact of COVID-19 are given in the Accounting Policies. |
|
21. | Ultimate controlling party |
|
The ultimate parent company is Premier Waste (UK) Holdings Plc, a company registered in England and Wales |
under company number 2232586. Copies of the group accounts can be obtained from Companies House, |
Crown Way, Maindy, Cardiff, CF14 3UZ. |
|
22. | Remuneration trust |
|
The company made a contribution in the accounting period to a Remuneration Trust in the amount of |
£1,200,000 (2018 £250,000). The terms of the trust are set out in a trust deed executed by the company and |
the original trustees. |
|
23. | Government grants |
|
2019 | 2018 |
£ | £ |
|
Arising from government grants | 40,854 | 60,008 |
40,854 | 60,008 |
|
Deferred income is included in the financial statements as follows: |
|
2019 | 2018 |
£ | £ |
|
Current liabilities | 10,213 | 14,809 |
Non-current liabilities | 30,641 | 45,199 |
40,854 | 60,008 |
|
The grants are being released to income over the estimated useful lives of the assets which they are financing. |