Sun Environmental Services Ltd - Limited company accounts 20.1
Sun Environmental Services Ltd - Limited company accounts 20.1
| REGISTERED NUMBER: 12529565 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 30 April 2021 |
| for |
| Sun Environmental Services Ltd |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 30 April 2021 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Income Statement | 10 |
| Consolidated Other Comprehensive Income | 11 |
| Consolidated Balance Sheet | 12 |
| Company Balance Sheet | 13 |
| Consolidated Statement of Changes in Equity | 14 |
| Company Statement of Changes in Equity | 15 |
| Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Cash Flow Statement | 17 |
| Notes to the Consolidated Financial Statements | 18 |
| Sun Environmental Services Ltd |
| Company Information |
| for the Year Ended 30 April 2021 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Eldo House |
| Kempson Way |
| Suffolk Business Park |
| Bury St Edmunds |
| Suffolk |
| IP32 7AR |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Group Strategic Report |
| for the Year Ended 30 April 2021 |
| The directors present their strategic report of the company and the group for the year ended 30 April 2021. |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Group Strategic Report |
| for the Year Ended 30 April 2021 |
| REVIEW OF BUSINESS |
| On 28 April 2020 our subsidiary company, Stowmarket Skips Ltd, acquired the assets of Stowmarket Skip Hire Ltd and the freehold of the business' operational site in Stowmarket, Suffolk. We started to operate this site and business from 1 May 2020. |
| Since the aquisition we have invested in the business expanding and updating both the lorry and skip fleets, improved the infrastructure and efficiency of our existing yard, and acquired and opened a new site near Cambridge. To support this growth we have established our head office and our systems platform, built our website and launched our brand as Sun Skips. We expect our strong growth profile to continue in 2021/22 as we bring the Cambridge facility fully online. We are in the late stages of the planning approval process at a site on the Suffolk/Essex border, with two further sites in Norfolk in early stages of the planning process. |
| Our business exists to provide a convenient and proficient service to our customers, to allow them to deal responsibly with their waste, and to achieve positive environmental outcomes through the recovery of material and the reduction of waste sent to landfill. |
| We are delighted to have received many positive customer endorsements of our service levels throughout our first year of operations. We will strive to meet and outperform our client's expectations as we go forward. We actively engage with our regulator, The Environment Agency, to ensure we are meeting our environmental obligations so that our clients can be assured that their waste is being managed appropriately. |
| During the last financial year we estimate that we recycled and recovered about 75% of the material we received. The majority of this material is soil, aggregates, wood, green waste and metals. Our processing capability allows us to recover these materials to meet the environmental quality standards that facilitates their return to their highest possible use. |
| The remaining material, largely plastics in its various forms, has been properly disposed of to a registered landfill operator. Going forward, rather than sending this material to landfill we will convert the majority of this waste into EU standard Solid Recovered Fuel (SRF) to allow a recovery of its calorific value. We recognise that SRF does not represent the highest possible use for this material but at this time offers the best practical outcome given the nature of the material and volumes involved. Over the medium term we fully expect new technologies will be developed that allow these materials to have a "2nd life" and we are committed to participating in this evolution. |
| We are mindful of our responsibilities to our employees who have to operate heavy goods vehicles (HGV), plant and machinery and processing lines in their day to day operations. We engage with the Health & Safety Executive, The Transport Commissioner and various consultants to ensure that we have created as safe a working environment as possible for our employees and any other members of the community that our business comes into contact with. |
| During the year our employees reported 1 working time accident which resulted in the loss of 4 working days (approximately 0.1% of the total hours worked during the year). Our HGV fleet has an average age of 2 years. This fleet of vehicles is professionally managed and maintained with the objective of meeting and exceed the obligations in our operating licence. |
| The changes we have made to the business and the success it has achieved are due to the efforts of our employees and we extend our thanks to them. During the year we increased our full time employees by 10 (circa 70%) to 24, and we look forward to welcoming more people to our team in 2021. |
| ON BEHALF OF THE BOARD: |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Report of the Directors |
| for the Year Ended 30 April 2021 |
| The directors present their report with the financial statements of the company and the group for the year ended 30 April 2021. |
| CHANGE OF NAME |
| The group passed a special resolution on 21 March 2021 changing its name from |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of skip hire and waste disposal. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 30 April 2021. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 May 2020 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 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 directors are 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 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 group's auditors are aware of that information. |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Report of the Directors |
| for the Year Ended 30 April 2021 |
| AUDITORS |
| The auditors, Knights Lowe Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Sun Environmental Services Ltd |
| Opinion |
| We have audited the financial statements of Sun Environmental Services Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2021 which comprise the Consolidated Income Statement, Consolidated Other 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 30 April 2021 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 |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Emphasis of matter |
| As discussed in Note 2 to the financial statements, the Company has chosen not to charge amortisation of goodwill within their accounting policy for the year ended 30 April 2021. The reasoning is due to attaining appreciating assets bought on acquisition. As such our opinion has not been modified with respect to that matter. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Report of the Independent Auditors to the Members of |
| Sun Environmental Services Ltd |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the 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 Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept 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 directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Report of the Independent Auditors to the Members of |
| Sun Environmental Services Ltd |
| 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. |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
| - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the companies operating sector; |
| - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation ; |
| - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
| - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
| - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
| To address the risk of fraud through management bias and override of controls, we: |
| - performed analytical procedures to identify any unusual or unexpected relationships; |
| - tested journal entries to identify unusual transactions; |
| - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; |
| - investigated the rationale behind significant or unusual transactions; and |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| - agreeing financial statement disclosures to underlying supporting documentation; |
| - reading the minutes of meetings of those charged with governance; |
| - enquiring of management as to actual and potential litigation and claims; |
| - reviewing correspondence with HMRC and the company's legal advisors; |
| There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
| Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion |
| Report of the Independent Auditors to the Members of |
| Sun Environmental Services Ltd |
| 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. |
| for and on behalf of |
| Eldo House |
| Kempson Way |
| Suffolk Business Park |
| Bury St Edmunds |
| Suffolk |
| IP32 7AR |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Consolidated |
| Income Statement |
| for the Year Ended 30 April 2021 |
| Period |
| 23.3.20 |
| Year Ended | to |
| 30.4.21 | 30.4.20 |
| Notes | £ | £ |
| TURNOVER | 1,758,985 | - |
| Cost of sales | 1,018,058 | - |
| GROSS PROFIT | 740,927 | - |
| Administrative expenses | 400,644 | - |
| OPERATING PROFIT | 4 | 340,283 | - |
| Interest payable and similar expenses | 5 | 13,974 | - |
| PROFIT BEFORE TAXATION | 326,309 | - |
| Tax on profit | 6 | 61,999 | - |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 264,310 | - |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Consolidated |
| Other Comprehensive Income |
| for the Year Ended 30 April 2021 |
| Period |
| 23.3.20 |
| Year Ended | to |
| 30.4.21 | 30.4.20 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 264,310 | - |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
264,310 |
- |
| Total comprehensive income attributable to: |
| Owners of the parent | 264,310 | - |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Consolidated Balance Sheet |
| 30 April 2021 |
| 2021 | 2020 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 8 | 787,440 | 782,009 |
| Tangible assets | 9 | 2,976,382 | 747,951 |
| Investments | 10 | - | - |
| 3,763,822 | 1,529,960 |
| CURRENT ASSETS |
| Debtors | 11 | 225,239 | 67,235 |
| Cash at bank | 257,531 | 150,000 |
| 482,770 | 217,235 |
| CREDITORS |
| Amounts falling due within one year | 12 | 277,593 | 2,567 |
| NET CURRENT ASSETS | 205,177 | 214,668 |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 3,968,999 | 1,744,628 |
| CREDITORS |
| Amounts falling due after more than one year |
13 |
(642,690 |
) |
(244,628 |
) |
| PROVISIONS FOR LIABILITIES | 16 | (61,999 | ) | - |
| NET ASSETS | 3,264,310 | 1,500,000 |
| CAPITAL AND RESERVES |
| Called up share capital | 17 | 3,000,000 | 1,500,000 |
| Retained earnings | 18 | 264,310 | - |
| SHAREHOLDERS' FUNDS | 3,264,310 | 1,500,000 |
| The financial statements were approved by the Board of Directors and authorised for issue on 3 September 2021 and were signed on its behalf by: |
| Q R Stewart - Director |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Company Balance Sheet |
| 30 April 2021 |
| 2021 | 2020 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 8 | - | - |
| Tangible assets | 9 |
| Investments | 10 |
| CURRENT ASSETS |
| Debtors | 11 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
13 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 17 |
| Retained earnings | 18 | ( |
) |
| SHAREHOLDERS' FUNDS |
| Company's loss for the financial year | (4,893 | ) | - |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Consolidated Statement of Changes in Equity |
| for the Year Ended 30 April 2021 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Changes in equity |
| Issue of share capital | 1,500,000 | - | 1,500,000 |
| Balance at 30 April 2020 | 1,500,000 | - | 1,500,000 |
| Changes in equity |
| Issue of share capital | 1,500,000 | - | 1,500,000 |
| Total comprehensive income | - | 264,310 | 264,310 |
| Balance at 30 April 2021 | 3,000,000 | 264,310 | 3,264,310 |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Company Statement of Changes in Equity |
| for the Year Ended 30 April 2021 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Changes in equity |
| Issue of share capital | - |
| Balance at 30 April 2020 |
| Changes in equity |
| Issue of share capital | - |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 30 April 2021 | ( |
) |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Consolidated Cash Flow Statement |
| for the Year Ended 30 April 2021 |
| Period |
| 23.3.20 |
| Year Ended | to |
| 30.4.21 | 30.4.20 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 432,819 | (64,668 | ) |
| Interest element of hire purchase payments paid |
(9,081 |
) |
- |
| Finance costs paid | (4,893 | ) | - |
| Net cash from operating activities | 418,845 | (64,668 | ) |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | (11,247 | ) | (782,009 | ) |
| Purchase of tangible fixed assets | (2,350,819 | ) | (747,951 | ) |
| Sale of intangible fixed assets | 5,816 | - |
| Sale of tangible fixed assets | 2,500 | - |
| Net cash from investing activities | (2,353,750 | ) | (1,529,960 | ) |
| Cash flows from financing activities |
| New loans in year | - | 244,628 |
| New HP/Finance Leases | 591,506 | - |
| Capital repayments in year | (53,963 | ) | - |
| Share issue | 1,500,000 | 1,500,000 |
| Shareholder loan interest | 4,893 | - |
| Net cash from financing activities | 2,042,436 | 1,744,628 |
| Increase in cash and cash equivalents | 107,531 | 150,000 |
| Cash and cash equivalents at beginning of year |
2 |
150,000 |
- |
| Cash and cash equivalents at end of year | 2 | 257,531 | 150,000 |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 30 April 2021 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| Period |
| 23.3.20 |
| Year Ended | to |
| 30.4.21 | 30.4.20 |
| £ | £ |
| Profit before taxation | 326,309 | - |
| Depreciation charges | 119,888 | - |
| Finance costs | 13,974 | - |
| 460,171 | - |
| Increase in trade and other debtors | (158,004 | ) | (67,235 | ) |
| Increase in trade and other creditors | 130,652 | 2,567 |
| Cash generated from operations | 432,819 | (64,668 | ) |
| 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 30 April 2021 |
| 30.4.21 | 1.5.20 |
| £ | £ |
| Cash and cash equivalents | 257,531 | 150,000 |
| Period ended 30 April 2020 |
| 30.4.20 | 23.3.20 |
| £ | £ |
| Cash and cash equivalents | 150,000 | - |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
| At 1.5.20 | Cash flow | At 30.4.21 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 150,000 | 107,531 | 257,531 |
| 150,000 | 107,531 | 257,531 |
| Debt |
| Finance leases | - | (537,543 | ) | (537,543 | ) |
| - | (537,543 | ) | (537,543 | ) |
| Total | 150,000 | (430,012 | ) | (280,012 | ) |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 30 April 2021 |
| 1. | STATUTORY INFORMATION |
| Sun Environmental Services Ltd is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| These group accounts highlight that there has been a FRS 102 departure with respect to goodwill. |
| Business Combinations |
| The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. |
| COVID-19 |
| The effects of the global COVID-19 pandemic have been carefully considered when preparing these financial statements. These financial statements continue to be prepared on a going concern basis as the directors are confident that the company is in a strong financial position to continue to trade going forward. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Critical accounting judgements and key sources of estimation uncertainty |
| In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. |
| The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. |
| Critical judgements in applying the company's accounting policies |
| The following are the critical judgements, including those involving estimations, that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
| Depreciation of tangible fixed assets |
| Tangible fixed assets are recognised at cost and depreciated over the basis appropriate to charge to the profit and loss account the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on the directors' knowledge of the reduction in the residual value of trading assets on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to residual value at the end of their economic lives. |
| Revenue |
| Revenue attributable to a rental or haulage activity is recognised when the skip or service has been delivered to the customer, and recovery of the consideration is probable. |
| Revenue attributable to a skip let on consignment and derived from the weight and or composition of the material recovered from the customer is recognised when the skip has been collected from the customer, weighed, and recovery of the consideration is probable. |
| Revenue is measured net of cancelled bookings, trade discounts and volume rebates. |
| Intangible assets |
| Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. |
| Other intangible assets, including the Sun Skips website, trademarks and licences to operate, that are acquired by the Group are measured at cost less any accumulated impairment losses. |
| Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred. |
| No amortisation has been included on intangible assets and this is a departure from FRS 102, however the directors consider this to be the most appropriate basis of valuing intangible assets, they are considered to be appreciating assets or are developed and improved ongoing, therefore the carrying value is at least the net realisable value or the benefit in use. Impairment reviews are carried out periodically and at each year end to ensure the carrying value is still appropriate. |
| Values are reviewed at each reporting date and adjusted if appropriate. |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and any accumulated impairment losses. |
| If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. |
| Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. |
| Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group. Maintenance expenditure is recognised in profit or loss. |
| Depreciation |
| Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight line method over their estimated useful lives, and is generally recognised in profit or loss. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. |
| Land is not depreciated, its holding value is reviewed annually. |
| The estimated useful lives of property, plant and equipment for current and comparative periods are as follows: |
| Buildings | 25 years |
| Operational vehicles | 10 years |
| Plant & machinery | 7 to 15 years |
| Skips | 10 years |
| Computer & office equipment | 3 to 5 years |
| Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. |
| Taxation |
| Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity. |
| Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years.The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax assets and liabilities are offset only if certain criteria are met. |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. |
| Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on business plans for individual subsidiaries in the Group and the reversal of temporary differences. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves. Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used. |
| Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. |
| The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities |
| Deferred tax assets and liabilities are offset only if certain criteria are met. |
| Hire purchase and leasing commitments |
| Leases of property, plant and equipment that transfer to the Group substantially all of the risks and rewards of ownership are classified as finance leases. The leased assets are measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the assets are accounted for in accordance with the accounting policy applicable to that asset. |
| Assets held under other leases are classified as operating leases and are not recognised in the Group's statement of financial position. |
| Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. |
| Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability.The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
| Financial instruments |
| Financial assets and financial liabilities are recognised in accordance with FRS 102 when the company becomes a party to the contractual provisions of the instrument. |
| Currently all financial liabilities are basic financial instruments as defined by section 11 of FRS 102 which are recognised at amortised cost. |
| Where relevant, derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in the profit or loss account. |
| Employee benefits |
| Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. |
| Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available. |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 3. | EMPLOYEES AND DIRECTORS |
| Period |
| 23.3.20 |
| Year Ended | to |
| 30.4.21 | 30.4.20 |
| £ | £ |
| Wages and salaries |
| The average number of employees during the year was as follows: |
| Period |
| 23.3.20 |
| Year Ended | to |
| 30.4.21 | 30.4.20 |
| Directors | 3 | 3 |
| Employees | 18 | - |
| The average number of employees by undertakings that were proportionately consolidated during the year was 21 (2020 - 3 ) . |
| Employee benefits & staff related costs | £ |
| Net wages, salaries & bonuses | 327,377 |
| Taxes and social security contributions | 96,471 |
| Defined pension contributions | 13,550 |
| Contracted labour | 56,371 |
| Other employee costs | 16,595 |
| Total | 510,364 |
| ======= |
| Period |
| 23.3.20 |
| Year Ended | to |
| 30.4.21 | 30.4.20 |
| £ | £ |
| Directors' remuneration |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 4. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| Period |
| 23.3.20 |
| Year Ended | to |
| 30.4.21 | 30.4.20 |
| £ | £ |
| Hire of plant and machinery |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Auditors' remuneration |
| Directors fees |
| Waste disposal & haulage costs |
| Repairs, maintenance & vehicle operating costs |
| Operating profit is the result generated from the continuing principal revenue producing activities of the Group as well as other income and expenses related to operating activities. Operating profit excludes net finance costs and income taxes. |
| 5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| Period |
| 23.3.20 |
| Year Ended | to |
| 30.4.21 | 30.4.20 |
| £ | £ |
| Hire purchase interest |
| Finance costs |
| 6. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| Period |
| 23.3.20 |
| Year Ended | to |
| 30.4.21 | 30.4.20 |
| £ | £ |
| Deferred tax: |
| Accelerated capital allowances |
| Other timing differences | (172,567 | ) | - |
| Total deferred tax |
| Tax on profit |
| UK corporation tax has been charged at 19% . |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 6. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is the same as the standard rate of corporation tax in the UK. |
| Year Ended |
| 30.4.21 |
| £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Capital allowances in excess of depreciation | ( |
) |
| Trading losses carried forward | 171,637 |
| Non-trade losses carried forward | 930 |
| Deferred tax charge | 61,999 |
| Total tax charge | 61,999 |
| Tax losses amounting to £903,352 are available to offset against future profits of the company. A deferred tax asset of £171,637 has offset against the deferred tax provision. |
| 7. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 8. | INTANGIBLE FIXED ASSETS |
| Group |
| Intangible |
| Goodwill | assets | Totals |
| £ | £ | £ |
| COST |
| At 1 May 2020 | 782,009 | - | 782,009 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 30 April 2021 |
| NET BOOK VALUE |
| At 30 April 2021 |
| At 30 April 2020 | 782,009 | - | 782,009 |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 8. | INTANGIBLE FIXED ASSETS - continued |
| Group |
| On 28 April 2020, Stowmarket Skips Ltd acquired certain assets and operations of Stowmarket Skip Hire Ltd, together with related property assets owned directly by the shareholders of Stowmarket Skip Hire Ltd. The acquisition of the assets and business of Stowmarket Skip Hire Ltd represents the foundation of our domestic and industrial recycling and environmental services business which we expect to grow over time through a combination of improving the performance of the existing assets, new site developments and acquisition. |
| Consideration paid for the trade and assets of Stowmarket Skips Hire Ltd amounted £1,500,000. The cost of the fixed assets acquired totalled £723,807. This transaction has given rise to goodwill of £776,193 to be carried forward. |
| For the 12 months ended 30 April 2021 the operations acquired from Stowmarket Skip Hire Ltd contributed revenue of £1,664,958 and a gross profit of £714,970 to the Group's results. |
| 9. | TANGIBLE FIXED ASSETS |
| Group |
| Land & |
| freehold | Plant and |
| property | machinery | Skips |
| £ | £ | £ |
| COST |
| At 1 May 2020 | 357,460 | 155,800 | 68,491 |
| Additions | 1,015,561 | 446,156 | 354,832 |
| Disposals | - | (2,500 | ) | - |
| At 30 April 2021 | 1,373,021 | 599,456 | 423,323 |
| DEPRECIATION |
| Charge for year | 15,900 | 31,764 | 21,467 |
| At 30 April 2021 | 15,900 | 31,764 | 21,467 |
| NET BOOK VALUE |
| At 30 April 2021 | 1,357,121 | 567,692 | 401,856 |
| At 30 April 2020 | 357,460 | 155,800 | 68,491 |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 9. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Computer |
| Motor | & office |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 May 2020 | 166,200 | - | 747,951 |
| Additions | 462,181 | 72,089 | 2,350,819 |
| Disposals | - | - | (2,500 | ) |
| At 30 April 2021 | 628,381 | 72,089 | 3,096,270 |
| DEPRECIATION |
| Charge for year | 43,537 | 7,220 | 119,888 |
| At 30 April 2021 | 43,537 | 7,220 | 119,888 |
| NET BOOK VALUE |
| At 30 April 2021 | 584,844 | 64,869 | 2,976,382 |
| At 30 April 2020 | 166,200 | - | 747,951 |
| On 30 November 2020 the Group acquired land at Cottenham for £777,000 with the intention of constructing a new recycling facilities on the site to service Cambridge and the surrounding area. The Group has started construction at Cottenham and costs incurred up to 30 April 2021 totalling £150,600. |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant and | Motor |
| machinery | vehicles | Totals |
| £ | £ | £ |
| COST |
| Additions | 245,594 | 461,418 | 707,012 |
| At 30 April 2021 | 245,594 | 461,418 | 707,012 |
| DEPRECIATION |
| Charge for year | 10,774 | 18,299 | 29,073 |
| At 30 April 2021 | 10,774 | 18,299 | 29,073 |
| NET BOOK VALUE |
| At 30 April 2021 | 234,820 | 443,119 | 677,939 |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 10. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 May 2020 |
| and 30 April 2021 |
| NET BOOK VALUE |
| At 30 April 2021 |
| At 30 April 2020 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: Alpha 3 The Buntings, Cedars Park, Stowmarket, Suffolk, England, IP14 5GZ |
| Nature of business: |
| % |
| Class of shares: | holding |
| This subsidiary is fully consolidated in these financial statements. |
| 11. | DEBTORS |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Amounts falling due within one year: |
| Trade debtors | 164,845 | - |
| VAT | 48,530 | 65,000 |
| Prepayments | 11,864 | 2,235 |
| 225,239 | 67,235 |
| Amounts falling due after more than one | year: |
| Amounts owed by group undertakings | - | - |
| Aggregate amounts | 225,239 | 67,235 |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group |
| 2021 | 2020 |
| £ | £ |
| Hire purchase contracts (see note 14) | 144,374 | - |
| Trade creditors | 115,254 | 2,567 |
| Accruals & deferred income | 17,965 | - |
| 277,593 | 2,567 |
| 13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Hire purchase contracts (see note 14) | 393,169 | - |
| Amounts owed to group undertakings | 249,521 | 244,628 | 249,521 | 244,628 |
| 642,690 | 244,628 |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2021 | 2020 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 144,374 | - |
| Between one and five years | 393,169 | - |
| 537,543 | - |
| Group |
| Non-cancellable operating | leases |
| 2021 | 2020 |
| £ | £ |
| Within one year | 18,605 | - |
| Between one and five years | 7,184 | - |
| 25,789 | - |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 14. | LEASING AGREEMENTS - continued |
| The Group lease an office facility under operating leases.The lease runs for a period of 3 years. Lease payments are fixed. The lease expenses recognised in the profit and loss was £11,421. |
| The Group's policy is to maintain a strong capital base so as to maintain investor, creditor and regulator confidence and to sustain future development of the business. Management monitors the return on capital, as well as the level of dividends to ordinary shareholders. |
| The board of directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowing and the advantages and security afforded by a sound capital position. The weighted-average interest expense on interest-bearing borrowings was 3.7%. |
| The Group monitors 'adjusted net debt' to 'adjusted equity'. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of equity other than amounts accumulated in the hedging reserve. The Group's adjusted net debt to equity ratio at 30 April 2021 was 0.16 to 1. |
| Debt | Interest rate | Year of maturity | Carrying amount |
| £ |
| Finance leases | 4.5% | 2024 to 2025 | 537,543 |
| Shareholder loan | 2% | 2030 | 244,628 |
Finance leases |
Future minimum lease payments |
Interest |
Present value of minimum lease payments |
| £ | £ | £ |
| Due within 1 year | 165,171 | 20,797 | 144,374 |
| Due between 1 and 5 years | 417,376 | 24,207 | 393,169 |
| 15. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 2021 | 2020 |
| £ | £ |
| Hire purchase contracts | 537,543 | - |
| 16. | PROVISIONS FOR LIABILITIES |
| Group |
| 2021 | 2020 |
| £ | £ |
| Deferred tax |
| Other timing differences | (172,567 | ) | - |
| Accelerated capital allowances | 234,566 | - |
| 61,999 | - |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 16. | PROVISIONS FOR LIABILITIES - continued |
| Group |
| Deferred |
| tax |
| £ |
| Charge to Income Statement during year | 61,999 |
| Balance at 30 April 2021 | 61,999 |
| 17. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2021 | 2020 |
| value: | £ | £ |
| Ordinary shares | £1 | 3,000,000 | 1,500,000 |
| All ordinary shares rank equally with regard to the Company's residual assets. Holders of these shares are entitled to dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company. |
| In November 2020, the general meeting of shareholders approved an increase in the authorised shares and the issue of 1,500,000 ordinary shares at an exercise price of £1 per share (2020: 1,500,000). |
| 18. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| Profit for the year | 264,310 |
| At 30 April 2021 | 264,310 |
| Company |
| Retained |
| earnings |
| £ |
| Deficit for the year | ( |
) |
| At 30 April 2021 | ( |
) |
| Sun Environmental Services Ltd (Registered number: 12529565) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 30 April 2021 |
| 19. | COMMITMENTS & POST BALANCE SHEET EVENTS |
| During the year ended 30 April 2021 the Group entered into conditional contracts to purchase land for £650,000 (2020: nil) and contracts with cancellation clauses for operational vehicles for £300,000 (2020: nil). These commitments are expected to be settled after the 30 April 2021 assuming certain pre conditions are fulfilled. |
| After the 30 April 2021, the company completed the purchase of land at Haverhill which is to be developed into a transport, storage and recycling facility. |
| On 28 May 2021 the Company increased its authorised share capital by 1,000,000 shares. The company issued a further 1,000,000 shares at par on 1 June 2021 which were fully paid at that date. |
| 20. | RELATED PARTY DISCLOSURES |
| Directors' fees costing £4,000 a month are paid to JMJ Environmental. A company owned and controlled by director Mr M A Stewart. Total directors' fees paid in the year total £48,000 (2020: £nil). |
| On 28 April 2020 the company borrowed £244,628 from its parent. The balance outstanding on this loan at 30 April 2021 is £249,521and interest accrues on this loan at 2% per annum (£4,893). |
| 21. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party of the Group is Symmons & Co Ltd who is owned and controlled by Mr Q R Stewart. Symmons & Co Ltd was incorporated in Guernsey Registered office address - Maison de Bas Farm Rue des Truchots St Andrew, Guernsey, GY6 8U. Company no. 56906. |
| Directors of the company control directly and indirectly 66% of the voting shares of the company. In addition some of the directors of the company are also directors of the ultimate controlling party. |