REGISTERED NUMBER: 05839536 (England and Wales)

Dunton Environmental Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 November 2017

Page

Company Information

1

Strategic Report

2

to

4

Report of the Directors

5

to

6

Report of the Independent Auditors

7

to

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

to

27

DIRECTORS:

N A Roe

Mrs L Roe

SECRETARY:

Mrs L Roe

REGISTERED OFFICE:

Unit 1 Tamebridge Ind. Est.

Aldridge Road

Perry Barr

Birmingham

B42 2TX

REGISTERED NUMBER:

05839536 (England and Wales)

AUDITORS:

Pinfields Limited

Chartered Accountants

Meryll House

57 Worcester Road

Bromsgrove

Worcestershire

B61 7DN

The directors present their strategic report for the year ended 30 November 2017.

REVIEW OF BUSINESS

The company has shown considerable growth over the past financial year. The turnover has increased by

64% on the preceding year to £17.4million. Much of this growth has come from an increased penetration

into the market from improved sales and marketing activities; an increase in the business reputation in the

market; and an improvement in the general economy. This growth was predicted in previous years, but the

business has outperformed those original projections by more than 30%.

The business gross profit percentage was down on the previous year largely due to an under performing

project in Crawley which did not achieve its predicted gross margins. A new management team has been put

in place for this project and it is expected that it will return to profit in 2018. Gross profit on contracts

averaged at 27% against the previous year at 32%.

The direct cost of overhead did go up to support the business growth but did maintain a similar level against

turnover as the previous year of 14.6%. We consider that this level of overhead is high against the turnover

for the year but that is largely due to growth pressures and it is expected in 2018 that this will reduce in

relative terms as the business drives efficiencies. The overhead is also expected to reduce in relative terms

as the waste treatment hubs now come on line and begin to make a contribution to central overhead costs.

The business had continued to invest inwardly in the following areas: staff growth and training, marketing

and sales, new permits for waste treatment centres, new building/office premise improvements and

international development. As such costs will have reduced profit forecast.

The EBITDA for the year is 7.4%.

PRINCIPAL RISKS AND UNCERTAINTIES

The business team has identified the following risks which are currently being monitored and managed.

These items are raised at regular board meetings for review.

1. The project at Kilnwood Vale in Crawley still has 3 years on the program and a work in progress of

£13.5million. In 2017 the contract did not achieve its forecast gross profit margin. To mitigate any further

financial risk a project director was assigned to the management team in August 2017 and an external cost

and contract consultant (Pyments) was appointed in January to manage any commercial and contractual

matters. It is envisaged that from a commercial and program perspective that the contract will return to

profit this year. However there are some future contract changes which have been recently issued by the

Client and it is possible that these could lead to a contractual and commercial dispute. To mitigate this risk

to Dunton, the employment of Pyments as specialist contract cost consultant as noted above will assist.

Equally this change order could be an opportunity for financial gain to the business if managed correctly by

the team.

2. Commercial control and management of projects remains a top priority to ensure we do not suffer any

unforeseen losses. In 2017 a detailed cost and value reporting system was implemented with good effect to

enable the business to have transparency and good optics on project risk. One ongoing project is currently

being tracked as medium risk namely Borehamwood where the risk value is up to £70,000 due to contention

on the scope of works. This cost item is being managed and provided for in the CVR reports.

3. Managing cashflow is a priority for the business. Generally Clients have been paying to term. Given the

growth of the business; the demands on working capital; and recent investments; access to available cash has

reduced. In consideration of this risk, additional funding will be put in place during 2018 to support the

ebb and flow of cash management in the business.

4. In 2017 the business turned over £17.4million. Given concerns about the future economy and a general

increase in competition, the turnover target for 2017/18 will remain at similar levels to 2017. The second

quarter of 2018 will see a reduction in overhead spending to match this reduced turnover forecast and really

focus on lean management and improving productivity. Strategically the business will only focus on their

unique selling points and drive margin as opposed to turnover. There is some concern at board level with the

impact of Brexit on the wider economy and a slowdown is envisaged, hence the business will adjust

accordingly to ensure sales are maintained at the right level. This approach is coupled with concerns about

access to skilled people to support any further growth.

FUTURE DEVELOPMENTS

In the context of the risks identified above, the strategic priorities of the business are to maintain turnover for

the next 24 months and focus on building robust control systems and deliver projects that really focus on our

unique selling points. The goal is to increase margins and achieve an EBITDA return in future years in

excess of 12%. The business will also focus on innovation at every operational level and particularly drive

new technology development in soil and waste remediation. In 2017 the business obtained a permit to

operate a waste facility in Wolverhampton with the first asbestos treatment licence in the UK. It's this trend

of new and innovative technologies that will be the main driver for business development in the future with a

lesser emphasis on civil engineering type work which characterised 2017.

In 2017 the business was awarded the Midlands Enterprise, Best Environmental Restoration Service. In this

vein, the business will continue to drive technology developments and industry recognition to raise our brand

awareness and position the business as the top land remediation and waste management specialist in the UK.

ON BEHALF OF THE BOARD:

N A Roe - Director

7 August 2018

The directors present their report with the financial statements of the company for the year ended 30 November 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of environmental consultants and

service providers in the field of land restoration, recycling technologies and waste management.

DIVIDENDS

Interim dividends totalling £2150 per share were paid during the year. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 November 2017 will be £ 215,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2016 to the

date of this report.

N A Roe

Mrs L Roe

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.

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), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied

that they give a true and fair view of the state of affairs of the company and of the profit or loss of the

company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and 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 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.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant

audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Pinfields Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

N A Roe - Director

7 August 2018

Opinion

We have audited the financial statements of Dunton Environmental Limited (the 'company') for the year

ended 30 November 2017 which comprise the Statement of Comprehensive Income, Balance Sheet,

Statement of Changes in Equity, 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 November 2017 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the 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.

Conclusions relating to going concern

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

to report to you where:

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

-

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.

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.

Our opinion on the financial statements does not cover the other information and we do not express any form

of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information

and, in doing so, consider whether the other information is materially inconsistent with the financial

statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based

on the work we have performed, we conclude that there is a material misstatement of this other information,

we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the 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 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 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.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes

our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities . This description forms

part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's

members those matters we are required to state to them in a Report of the Auditors and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company's members as a body, for our audit work, for this report, or for the opinions we

have formed.

Paul Tivey FCA FCCA (Senior Statutory Auditor)

for and on behalf of Pinfields Limited

Chartered Accountants

Meryll House

57 Worcester Road

Bromsgrove

Worcestershire

B61 7DN

7 August 2018

Pinfields Limited Chartered Accountants (Statutory Auditor)

REVENUE

17,438,813

10,626,558

Cost of sales

(12,973,485

)

(7,183,023

)

GROSS PROFIT

4,465,328

3,443,535

Administrative expenses

(3,898,753

)

(2,320,416

)

566,575

1,123,119

Other operating income

251,107

259,447

OPERATING PROFIT

817,682

1,382,566

Interest receivable and similar income

42

983

817,724

1,383,549

Interest payable and similar expenses

4

(59,921

)

(51,270

)

PROFIT BEFORE TAXATION

5

757,803

1,332,279

Tax on profit

6

(113,602

)

(260,745

)

PROFIT FOR THE FINANCIAL YEAR

644,201

1,071,534

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

644,201

1,071,534

FIXED ASSETS

Property, plant and equipment

8

2,458,372

1,558,463

CURRENT ASSETS

Inventories

9

292,362

34,993

Debtors

10

6,117,820

2,431,787

Investments

11

63,209

63,209

Cash at bank and in hand

371,222

1,241,525

6,844,613

3,771,514

CREDITORS

Amounts falling due within one year

12

6,771,543

3,506,565

NET CURRENT ASSETS

73,070

264,949

TOTAL ASSETS LESS CURRENT LIABILITIES

2,531,442

1,823,412

CREDITORS

Amounts falling due after more than one year

13

(795,786

)

(528,861

)

PROVISIONS FOR LIABILITIES

16

(168,062

)

(156,158

)

NET ASSETS

1,567,594

1,138,393

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

1,567,494

1,138,293

SHAREHOLDERS' FUNDS

1,567,594

1,138,393

The financial statements were approved by the Board of Directors on 7 August 2018 and were signed on its behalf by:

N A Roe - Director

Mrs L Roe - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2015

100

766,759

766,859

Changes in equity

Dividends

-

(700,000

)

(700,000

)

Total comprehensive income

-

1,071,534

1,071,534

Balance at 30 November 2016

100

1,138,293

1,138,393

Changes in equity

Dividends

-

(215,000

)

(215,000

)

Total comprehensive income

-

644,201

644,201

Balance at 30 November 2017

100

1,567,494

1,567,594

Cash flows from operating activities

Cash generated from operations

1

508,705

1,148,947

Interest paid

(1,482

)

-

Interest element of hire purchase payments paid

(58,439

)

(51,270

)

Finance costs paid

(1

)

-

Tax paid

(131,560

)

96,849

Net cash from operating activities

317,223

1,194,526

Cash flows from investing activities

Purchase of tangible fixed assets

(311,024

)

(125,643

)

Sale of tangible fixed assets

20,692

168,799

Purchase of current asset investments

-

(44,370

)

Interest received

42

983

Net cash from investing activities

(290,290

)

(231

)

Cash flows from financing activities

Capital repayments in year

(491,667

)

(451,449

)

Amount withdrawn by directors

(405,569

)

(914,037

)

Net cash from financing activities

(897,236

)

(1,365,486

)

Decrease in cash and cash equivalents

(870,303

)

(171,191

)

Cash and cash equivalents at beginning of year

2

1,241,525

1,412,716

Cash and cash equivalents at end of year

2

371,222

1,241,525

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

2017

2016

£

£

Profit before taxation

757,803

1,332,279

Depreciation charges

473,744

262,193

Loss/(profit) on disposal of fixed assets

5,662

(85,054

)

Finance costs

59,921

51,270

Finance income

(42

)

(983

)

1,297,088

1,559,705

Increase in inventories

(257,369

)

(29,868

)

Increase in trade and other debtors

(3,495,464

)

(894,400

)

Increase in trade and other creditors

2,964,450

513,510

Cash generated from operations

508,705

1,148,947

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 November 2017

30/11/17

1/12/16

£

£

Cash and cash equivalents

371,222

1,241,525

Year ended 30 November 2016

30/11/16

1/12/15

£

£

Cash and cash equivalents

1,241,525

1,412,716

1.	STATUTORY INFORMATION

Dunton Environmental Limited is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on the Company

Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The presentation currency of these financial statements is sterling (£) and they are rounded to the

nearest £1. Early adoption of amendments to FRS102: Small entities and other minor amendments

(July 2015) have been applied before accounting periods commencing 1 January 2016.

Profit recognition on contracting activities

Profit on individual contracts is only taken when their outcome can be foreseen with reasonable

certainty, based on the lower of the percentage margin earned to date and that forecast at completion.

Full provision is made for all known or expected losses on individual contracts immediately such

losses are foreseen.

Turnover

Turnover represents net income earned for services provided during the period, excluding value added

tax. Contract turnover includes the value of work completed during the financial year based on

estimates of the work performed.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

10% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Government grants

Government grants have been allocated over a three year period.

Stocks

Inventories and work in progress are valued at the lower of cost and net realisable value, after making

due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling

costs in bringing inventories to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of

Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive

income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

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

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable

profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held

under finance leases are depreciated over their estimated useful lives or the lease term, whichever is

the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period

of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Employer-financed retirement benefit scheme

The company has established trusts for the benefit of employees and persons connected with them.

Monies held in these trusts are held by independent trustees and managed at their discretion. The

trustees are empowered to provide both retirement and other employee benefits.

Where the company retains future economic benefit from, and has de facto control of the assets and

liabilities of the trust, they are accounted for as assets and liabilities of the company until the earlier

of the date that an allocation of trust funds to employees in respect of past services is declared and the

date that assets of the trust vest in identified individuals.

Where monies held in trust are determined by the company on the basis of employees' past services to

the business and the company can obtain no future economic benefit from those monies, such monies,

whether in trust or accrued for by the company are charged to the profit and loss account in the period

to which they relate.

Where monies held in trust are determined by the company on the basis of employees' past services to

the business and are payable after completion of the employment, such monies are charged to the

profit and loss account in the period during which services are rendered by employees.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

3,339,159

1,873,448

Social security costs

3,568

3,383

Other pension costs

133,709

88,409

3,476,436

1,965,240

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

2017

2016

3

5

The wages cost included in the accounts includes wages paid to employees of Dunton Environmental

Consulting LLP which are recharged to Dunton Environmental Ltd.

2017

2016

£

£

Directors' remuneration

25,742

24,414

Directors' pension contributions to money purchase schemes

80,440

80,037

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2