WasteCo Group – Results Announcement FY23

Results announcement




Results for announcement to the market
Name of issuer WASTECO GROUP LIMITED
Reporting Period 12 months to March 2023
Previous Reporting Period N / A
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$34,392 N / A
Total Revenue $34,392 N / A
Net profit/(loss) from
continuing operations
$(1,991) N / A
Total net profit/(loss) $(1,991) N / A
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend at this time.
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0142 N / A
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the market release and unaudited financial statements
for the year ended 31 March 2023 that accompany this
announcement.
In the attached financial statements, the financial measures for
WasteCo Holdings Limited for the year ended 31 March 2022
have been provided as comparatives. WasteCo Holdings
Limited was the privately held company acquired by the listed
company as part of the reverse-takeover acquisition on 5
December 2022.
Authority for this announcement
Name of person

authorised
to make this announcement
Shane Edmond
Contact person for this
announcement
Shane Edmond
Contact phone number 021 995 519
Contact email address Shane@wasteco.co.nz
Date of release through MAP

30 May 2023

Unaudited financial statements accompany this announcement. At the date of this release the financial
statements are in the process of being audited.

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NZX Release

30 May 2023

WasteCo Group achieves record revenue and EBITDA results for its
first reporting period as a listed company for the year to 31 March
2023
WasteCo Group Limited (NZX:WCO) today announces its unaudited financial results for the 12 months
to 31 March 2023.
Highlights for the 12 months to 31 March 2023
- Revenue growth of 83% to $34.4m
- Operating EBITDA growth of 83% to $5.9m
- Continued strong revenue and new customer growth
- Completion of acquisition of Central Suction Cleaners in Nelson in March 2023 and the
addition of more services in the region
- Continued development in customer relationships resulted in new long term contracts for
services in central and northern Christchurch
- Christchurch sort centre volumes increased substantially during the year resulting in increased
volumes of waste diverted from landfill
- Completion of a large project for Christchurch City Council at the Bromley waste water
treatment plant
- Waste sorting and diversion services at Sail GP, Coca Cola Christmas in the Park, South Island
Fieldays and many other events resulted in large volumes of waste being diverted from landfill
- Medical and quarantine (M&Q) waste treatment facility completed its first full year of
operation showing positive growth, providing only the second option in New Zealand for
treatment, remediation and disposal of M&Q waste
- Completion of reverse listing transaction (RTO) on the NZX on 5 December 2022

Financial Performance Summary

WasteCo Group Ltd (“WasteCo”) is pleased to announce an 83% increase in revenue to $34.4m with
strong growth across all operations.
Despite ongoing pressures on costs and margins we have achieved an 83% increase in operating
EBITDA to $5.9m. Our net loss after tax included the accounting treatment of the RTO transaction
($1.24m) and other adjustments, resulting in a loss of $1.99m. As a reverse listing into a non-trading
shell company, the accounting rules under NZ IFRS require the difference between the fair value of
the consideration paid to purchase the listed shell company (through the transfer of shares) less its
net assets acquired, to be expensed as a share-based payment.
The business continues to take advantage of opportunities in the waste industry. Our ability to provide
innovative waste solutions in partnership with our customers is a key driver. We pride ourselves on
exceeding the expectations of our customers and the public with our efforts to deal with waste as
sustainably and responsibly as possible. This means constantly challenging ourselves to find more
solutions to remove as much volume from landfill as possible.
The transition to NZX listing was an excellent opportunity to enhance the governance and financial
reporting required to support of our ongoing drive to grow revenue and the resulting demands on our
business, customers and people.
All comparative figures shown relate to the financial performance of the WasteCo business for the
year ended 31 March 2022, which is prior to the RTO transaction.

Acquisition post balance date – Cleanways Group
As previously disclosed to the market the acquisition of the Cleanways Group will settle on 1 June
2023. This is an exciting development for the group and extends our coverage of the South Island with
operations in Invercargill and Cromwell. Cleanways Group has a strong presence in Southland
providing liquid waste solutions as well as providing both liquid and solid waste solutions in Central
Otago. We plan to extend our range of services in the region once successfully integrated.
RESULTS OVERVIEW
$ THOUSANDS
FY23FY22
(unaudited)(audited)
Revenue34,392 18,777
Operating EBITDA5,907 3,223
Operating EBITDA %17%17%
Reverse acquisition - share based payment1,239-
Reverse acquisition - listing expenses403-
Employee benefits expenses - Share Options405-
EBITDA3,860 3,223
Net Loss After Tax( 1,991) ( 4)

Outlook
We have started the new financial year with exciting opportunities in front of us and are at various
stages of discussions on a pipeline of new contracted partnerships as well as day to day growth in
existing customer services. These are for customers that are focused on finding sustainable solutions
to meet the demands that the current environment expects. With new environmental regulatory
changes being phased in this creates new opportunities that we are well positioned to capitalise on as
they arise. There are also more acquisition opportunities to be considered as the year progresses.
Our mission is to make a difference to the world by diverting as much waste away from landfill, and
this drives the delivery of all our services and solutions.
The health, safety and wellbeing of our approximately 290 people is paramount to our success and we
are working to ensure that the WasteCo team has sufficient training and opportunities to grow within
our business.

Dividend Policy
The directors have not declared any dividend for the 2023 financial year. In the medium term, the
opportunities for growth in the business are expected to be the priority for any surplus funds. The
Board will review the dividend policy as revenue and cashflows allow.

About WasteCo
WasteCo is a leading South Island waste solution company, processing and diverting liquid and solid
waste from landfill. It provides comprehensive solutions for household, commercial, industrial and
local authority customers.
WasteCo is New Zealand’s only diamond certified Toitū Enviromark waste solutions provider and
delivers outcomes that ensure its customers are at the leading edge of the sustainability frontier.
The company provides waste and sorting options as well as waste remediation, sweeping and
industrial cleaning services – all delivered using leading edge technology and highly trained customer-
focussed staff.
The Christchurch-based business was established in 2013.

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WasteCo Group Limited (formerly Goodwood Capital Limited)
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For the year ended 31 March 2023



1



Note2023 2022
(unaudited)(audited)
NZ$000NZ$000
Revenue534,39218,777
Other income698713
Expenses
Employee benefits expenses7.1(15,121)(8,146)
Collection, recycling and waste disposal expenses(6,695)(3,840)
Fleet operating expenses(4,762)(2,579)
Depreciation and amortisation expenses7(4,054)(2,394)
Property expenses(500)(257)
Other expenses7(1,910)(1,445)
Profit from operations1,448829
Reverse acquisition share based payment25(1,239)-
Reverse listing expenses(403)-
Finance costs7.2(2,063)(971)
Loss before income tax(2,257)(142)
Income tax benefit/(expense)9266138
Loss for the year
(1,991)(4)
Other comprehensive income
Other comprehensive income for the year--
Total comprehensive loss for the year
(1,991)(4)
Earnings/(loss) per share
Basic and diluted loss per share (NZ$)10(0.0035)(0.0000)

WasteCo Group Limited (formerly Goodwood Capital Limited)
Consolidated Statement of Changes in Equity
For the year ended 31 March 2023



2




Note
Share
capital
Convertible
notes
reserve
Share based
payments
reserve
Retained
earnings
Total equity
NZ$000NZ$000NZ$000NZ$000NZ$000
Balance at 1 April 2021 (audited)641--1,6082,249
Loss for the year---(4)(4)
Transactions with owners in their capacity as owners
Equity component recognised in convertible notes
reserve
18.1-38--38
Balance at 31 March 2022 (audited)64138-1,6042,283
Balance at 1 April 2022 (audited)64138-1,6042,283
Loss for the year---(1,991)(1,991)
Transactions with owners in their capacity as owners
Equity component recognised in convertible notes
reserve
18.1-39--39
Shares issued on reverse acquisition191,153---1,153
Shares issued for convertible notes194,077(77)--4,000
Shares issued during the year194,000---4,000
Share options issued20, 21--438-438
Share options expired20, 21--(33)-(33)
Balance at 31 March 2023 (unaudited)9,871-405(387)9,889

WasteCo Group Limited (formerly Goodwood Capital Limited)
Consolidated Statement of Financial Position
As at 31 March 2023


3




Note2023 2022
(unaudited)(audited)
NZ$000NZ$000
ASSETS
Current assets
Cash and cash equivalents
11
873698
Trade receivables and other current assets
12
5,0383,697
Income tax receivable103-
Inventories
13
23072
Total current assets6,2444,467
Non-current assets
Property, plant and equipment1430,85324,532
Right-of-use assets15.15,8635,299
Intangible assets16157147
Total non-current assets36,87329,978
Total assets43,11734,445
LIABILITIES
Current liabilities
Trade and other payables175,2045,527
Payable for acquisition of business261153,562
Income tax payable-37
Lease liabilities15.2711644
Borrowings185,6574,906
Total current liabilities11,68714,676
Non-current liabilities
Borrowings1815,51911,807
Lease liabilities15.25,9645,355
Deferred tax liabilities9.358324
Total non-current liabilities21,54117,486
Total liabilities33,22832,162
Net assets
9,8892,283
EQUITY
Share capital199,871641
Share based payments reserve20405-
Convertible notes reserve18.1-38
Retained earnings(387)1,604
Total equity
9,8892,283

WasteCo Group Limited (formerly Goodwood Capital Limited)
Consolidated Statement of Cash Flows
For the year ended 31 March 2023


4



Note2023 2022
(unaudited)(audited)
NZ$000NZ$000
Cash flows from operating activities
Receipts from customers
33,29716,979
Government grants received
100206
Payments to suppliers and employees
(29,671)(13,354)
Income tax paid
(139)(87)
Net cash from operating activities
27
3,5873,744
Cash flows from investing activities
Payments for property, plant and equipment
(8,529)(9,276)
Acquisition of businesses
(4,463)(2,831)
Payments for intangible assets
(19)-
Cash received on reverse listing acquisition
1-
Net cash used in investing activities
(13,010)(12,107)
Cash flows from financing activities
Proceeds from issue of share capital
4,000-
Proceeds from borrowings
13,95312,221
Principal repayment of borrowings
(5,644)(2,680)
Interest paid on borrowings
(1,573)(660)
Principal repayment of lease liabilities
(725)(425)
Interest paid on lease liabilities
(413)(311)
Lease incentive received
-300
Net cash from financing activities
9,5988,445
Net increase in cash and cash equivalents17582
Cash and cash equivalents at the beginning of the year698616
Cash and cash equivalents at the end of the year
11
873698

WasteCo Group Limited (formerly Goodwood Capital Limited)
Consolidated Statement of Cash Flows
For the year ended 31 March 2023


5
Reconciliation of profit or loss after taxation with cash flow from operating
activities




2023 2022
(unaudited)(audited)
NZ$000NZ$000
Net loss after taxation(1,991)(4)
Adjustments for:
Depreciation on property, plant and equipment3,2081,
851
Depreciation on right of use assets837533
Amortisation of intangible assets910
Share based payments405-
Movement in deferred tax(266)(152)
Interest paid on borrowings1,650660
Interest paid on lease liabilities413311
Reverse acquisition share based payment1,239-
Gain on business acquisition-(349)
Movements in working capital
(Increase) / decrease in trade and other receivables(1,341)(1,984)
Increase / (decrease) in trade payables and other liabilities(323)2,918
(Increase) / decrease in inventory(158)124
Increase / (decrease) in tax liabilities(138)(72)
Movement in trade and other payables due to business acquisition15(102)
Movement in working capital on reverse acquisition28-
Net cash received from operating activities
3,5873,744

WasteCo Group Limited (formerly Goodwood Capital Limited)
Accounting Policies
For the year ended 31 March 2023


6
1. General information
WasteCo Group Limited (formerly Goodwood Capital Limited) (‘WasteCo’ or ‘the Company’) and its
subsidiaries (together ‘the Group’) are limited liability companies, incorporated under the Companies Act
1993 and domiciled in New Zealand. The Group was formed by a reverse acquisition on 5 December
2022 of WasteCo Group Limited and WasteCo Holdings NZ Limited (‘WasteCo Holdings’) (refer note 2.3).
The Group provides solutions in the collection of waste and recycling, industrial cleaning, and
environmental services. WasteCo is a holding company for the Group.
The address of the Company’s registered office is 421 Blenheim Road, Christchurch.
The Company’s name change occurred on 5 December 2022.
2. Significant accounting policies
The following are the significant accounting policies adopted by the Group in the preparation and
presentation of the consolidated financial statements. There have been no changes in accounting
policies since the previous year end.
2.1 Statement of compliance and reporting framework
The consolidated financial statements have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (‘NZ GAAP’). The Group is a for-profit entity for the purposes of
complying with NZ GAAP. The consolidated financial statements comply with New Zealand equivalents to
International Financial Reporting Standards (‘NZ IFRS’), International Financial Reporting Standards
(‘IFRS’),
and other applicable New Zealand Financial Reporting Standards as appropriate for for-profit
entities. The Group is a Tier 1 for-profit entity in accordance with XRB A1 Application of the Accounting
Standards Framework.
The Company is an FMC reporting entity under the Financial Markets Conduct Act 2013. The Company is
listed on the NZX Main Board ("NZX"). These consolidated financial statements have been prepared in
accordance with the requirements of the Financial Markets Conduct Act 2013 and the NZX Main Board
Listing Rules.
2.2 Basis of preparation
The consolidated financial statements have been prepared on a historical cost basis apart from those
items measured at fair value as described below. Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services.
The consolidated financial statements are presented in New Zealand dollars which is the Group’s
functional and presentation currency, rounded to the nearest thousand dollars unless otherwise stated.
The comparative information shown within these consolidated financial statements is that of WasteCo
Holdings, the primary subsidiary, for the period 1 April 2021 to 31 March 2022 as WasteCo Holdings
Limited was determined to be the acquirer in the reverse acquisition on 5 December 2022 (refer note
2.3). Comparative information in the consolidated financial statements has been adjusted in order to be
consistent with the presentation of the current period. These adjustments are limited to classification
and disclosure and had no significant net impact on total assets, total equity, profit or cash flow
classification.

WasteCo Group Limited (formerly Goodwood Capital Limited)
Accounting Policies
For the year ended 31 March 2023


7
2.3 Reverse acquisition
On 5 December 2022 the Company entered into a reverse acquisition in which the Company acquired
100% of the shares of the already operating WasteCo Holdings and its subsidiaries for $29.2 million. The
purchase price was satisfied by the issue of:
1. 504 million fully paid ordinary shares at an issue price of $0.05 per share to the WasteCo Holdings
shareholders, and
2. 80 million fully paid ordinary shares at an issue price of $0.05 per share to the holders of $4 million
mandatory convertible notes previously issued by WasteCo Holdings.
The reverse acquisition does not represent a business combination in accordance with NZ IFRS 3 Business
Combinations. The Board of Directors have therefore accounted for the reverse acquisition as a share-
based payment transaction, as an issue of shares, in accordance with NZ IFRS 2 Share-based Payment.
The appropriate accounting treatment for recognising the new group structure is to treat WasteCo
Holdings as the acquirer of the Company. The consolidated financial statements prepared following the
reverse acquisition are issued under the name of the legal parent and accounting acquiree, WasteCo, but
describe the continuation of the consolidated financial statements of the legal subsidiary and accounting
acquirer, WasteCo Holdings.
Therefore, the consolidated financial statements for the year ended 31 March 2023, reflect the 12
months of trading of the WasteCo Holdings group, and include the financial performance and financial
position of WasteCo from the date of its acquisition on 5 December 2022. The comparative information
presented in the consolidated financial statements represents the financial performance and financial
position of the WasteCo Holdings group.
2.4 Going concern
The Directors have, at the time of approving the consolidated financial statements, a reasonable
expectation that the Group has adequate resources to continue in operational existence for the
foreseeable future. They have therefore continued to adopt the going concern basis of accounting in
preparing the consolidated financial statements.
2.5 Principles of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company. Control is achieved when the Company:
• has power over the investee;
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies in line with the Group's accounting policies.
All intragroup assets, liabilities, equity, income, expenses, and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.

WasteCo Group Limited (formerly Goodwood Capital Limited)
Accounting Policies
For the year ended 31 March 2023


8
Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred
in a business combination is measured at fair value, which is calculated as the sum of the acquisition-
date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former
owners of the acquiree and the equity interests issued by the Group in exchange for control of the
acquiree. Acquisition related costs are generally recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised at
their fair value at the acquisition date, except that deferred tax assets or liabilities, and liabilities related
to employee benefit arrangements, are recognised and measured in accordance with NZ IAS 12 Income
Taxes and NZ IAS 19 Employee Benefits respectively.
Goodwill is measured as the excess of the sum of the consideration transferred over the net of the
acquisition‑date amounts of the identifiable assets acquired, and the liabilities assumed. If, after
reassessment, the net of the acquisition‑date amounts of the identifiable assets acquired and liabilities
assumed exceeds the sum of the consideration transferred, the excess is recognised immediately in
profit or loss as a bargain purchase gain.
If the initial accounting for a business combination is incomplete by the end of the reporting period in
which the combination occurs, the Group reports provisional amounts for the items for which the
accounting is incomplete. Those provisional amounts are adjusted during the measurement period or
additional assets or liabilities are recognised, to reflect new information obtained about facts and
circumstances that existed as of the acquisition date that, if known, would have affected the amounts
recognised as of that date. Measurement period adjustments are adjustments that arise from additional
information obtained during the ‘measurement period’ (which cannot exceed one year from the
acquisition date) about facts and circumstances that existed at the acquisition date.
Refer to note 2.3 in relation to the basis of preparation due to the reverse acquisition transaction.
2.6 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The chief operating decision maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the Board of
Directors.
2.7 Revenue recognition
The Group derives revenue from the following major sources:
• Sweeping services;
• Waste collection, recycling, and disposal services; and
• Industrial cleaning services.
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract
with a customer and excludes amounts collected on behalf of third parties, such as goods and service tax
and customs duties. The Group recognises revenue when it transfers control over a good or service to a
customer.
Sweeping services
The Group provides sweeping services for Councils and commercial customers. The Group considers its
performance obligations for sweeping services are satisfied over time, on the basis that the services are
provided and consumed by the customer on a simultaneous basis, and so will recognise the related
revenue as the performance obligation is satisfied.

WasteCo Group Limited (formerly Goodwood Capital Limited)
Accounting Policies
For the year ended 31 March 2023


9
Waste collection, recycling, and disposal services
The Group provides waste collection,
recycling, and disposal services via front load bins, hook bins, skip
bins and wheelie bins from both commercial and private customers. Recycling services include a
dedicated sorting facility with a focus on diversion from landfill.
Revenue from collection and disposal of waste is recognised when the performance obligation to the
customer has been fulfilled, which is generally when the waste has been collected from the customer.
Costs to dispose of the waste are generally incurred at, or close to the time of collection.
Revenue from the sale of recycled materials is recognised when control of the goods has transferred,
being when the goods have been shipped to the customer’s specific location or when the customer
collects the goods.
Industrial cleaning services
The Group provides industrial scrubbing, high pressure water blasting, urgent spill response services,
portaloo hire and collection, and septic tank cleaning.
For revenues derived from industrial cleaning services; the Group considers its performance obligations
are satisfied over time, on the basis that the services are provided and consumed by the customer on a
simultaneous basis, and so will recognise the related revenue as the performance obligation is satisfied.
2.8 Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply
with the conditions attached to them and that the grants will be received. Government grants are
recognised in profit or loss over the period necessary to match them with the costs that they are
intended to compensate.
2.9 Interest income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to that asset's net carrying amount on initial recognition.
2.10 Borrowing costs
Borrowing costs include interest expense calculated using the effective interest method and finance
charges in respect of lease arrangements. Borrowing costs are expensed as incurred.
2.11 Income Tax
The income tax expense or benefit for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before
tax’ as reported in the Statement of Profit or Loss and Other Comprehensive Income because of items of
income or expense that are taxable or deductible in other years and items that are never taxable or
deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively
enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable
profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax
assets are recognised for all deductible temporary differences to the extent that it is probable that

WasteCo Group Limited (formerly Goodwood Capital Limited)
Accounting Policies
For the year ended 31 March 2023


10
taxable profits will be available against which those deductible temporary differences can be utilised.
Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the
initial recognition (other than in a business combination) of assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Group expects, at the end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.
2.12 Goods and services tax
Revenue, expenses, assets, and liabilities are recognised net of the amount of goods and services tax
(GST) except:
• where the amount of GST incurred is not recovered from the Inland Revenue Department, it is
recognised as part of the cost of acquisition of an asset or as part of an item of expense; or
• for receivables and payables, which are recognised inclusive of GST.
The net amount of GST recoverable or payable to the Inland Revenue Department is included as part of
receivables or payables.
2.13 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and,
where applicable, direct labour costs and those overheads that have been incurred in bringing the
inventories to their present location and condition. Costs of inventories are determined on a first-in-first-
out basis. Net realisable value represents the estimated selling price for inventories less all estimated
costs of completion and costs necessary to make the sale.

2.14 Property, plant and equipment
Each class of property, plant and equipment is measured at historical cost less accumulated depreciation
and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to
the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable the future economic benefits associated with the item will flow to
the Group and the costs of the item can be measured reliably. The carrying amounts of any component
accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are
charged to profit or loss in the reporting period in which they are incurred.
Depreciation is recognised so as to write off the cost of assets less their residual values, over their useful
lives. The estimated useful lives, residual values and depreciation method are reviewed at the end of
each reporting period.
The following depreciation rates are applied:
Class of asset Depreciation Depreciation
rates basis
Plant and equipment 10% - 100% Straight line
Vehicles 8% - 100% Straight line
Office equipment 16% - 100% Diminishing value

WasteCo Group Limited (formerly Goodwood Capital Limited)
Accounting Policies
For the year ended 31 March 2023


11
Premises and leasehold improvements 10% - 100% Diminishing value
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
2.15 Intangible assets
Acquired intangible assets with finite useful lives are carried at cost less accumulated amortisation and
accumulated impairment losses. Amortisation is recognised on a diminishing value basis over their
estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of
each reporting period, with the effect of any changes in estimate being accounted for on a prospective
basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less
accumulated impairment losses.
The following amortisation rates are applied:
Class of asset Depreciation Depreciation
rates basis
Computer software 50% - 100% Diminishing value
Goodwill is measured at cost less accumulated impairment losses. Goodwill is tested for impairment
annually and reviewed at each balance date to determine whether there is any objective evidence of
impairment.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from
use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the
difference between
the net disposal proceeds and the carrying amount of the asset, are recognised in
profit or loss when the asset is derecognised.
2.16 Leases
The Group assess whether a contract is or contains a lease, at inception of the contract. The Group
recognises a right-of -use asset and a corresponding lease liability with respect to all lease arrangements
in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or
less) and lease of low value assets. For these leases, the Group recognises the lease payments as an
operating expense on a straight-line basis over the term of the lease unless another systematic basis is
more representative of the time pattern in which economic benefit from the leased assets are
consumed.
The lease liability is initially measured at the present value of the future lease payments, discounted by
using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its
incremental borrowing rate. The lease liability is subsequently measured at amortised cost using the
using the effective interest method. It is remeasured when there is a change in future lease payments
arising from a change in an index or rate or if the Group changes its assessment of whether it will
exercise a purchase, extension of termination option, with a corresponding adjustment made to the
carrying value of the right-of -use asset.
The right-of -use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before the commencement date and any initial direct costs and restoration costs.
They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of -
use assets are depreciated over the shorter period of lease term and the useful life of the underlying
asset. The depreciation starts at the commencement date of the lease.

WasteCo Group Limited (formerly Goodwood Capital Limited)
Accounting Policies
For the year ended 31 March 2023


12
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
2.17 Short‑term and other long‑term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave
and sick leave in the period the related service is rendered at the undiscounted amount of the benefits
expected to be paid in exchange for that service.
Liabilities recognised in respect of short‑term employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service.
2.18 Financial instruments
Financial assets and financial liabilities are recognised in the Consolidated Statement of Financial Position
when the Group becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately as an expense in the profit or loss.
2.19 Financial assets
Financial assets are measured at amortised cost or fair value on the basis that the Group’s business
model for managing financial assets and the contractual cash flow characteristics of the financial assets.
The Group classifies its financial assets as at amortised cost only if both of the following criteria are met:
• the asset is held within a business model whose objective is to collect the contractual cash flows;
and
• the contractual terms give rise to cash flows that are solely payments of principal and interest.
The Group has no financial assets at fair value.
Financial assets at amortised cost
The Group holds receivables with the objective to collect the contractual cash flows, the cash flows are
solely payments of principal and interest, and therefore measures them subsequently at amortised cost
using the effective interest method.
The Group’s financial assets at amortised cost include cash and cash equivalents, and trade and other
receivables. Cash and cash equivalents include cash in hand and deposits held at call with banks.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on trade receivables. The amount of
expected credit losses is updated at each reporting date to reflect changes in credit risk since initial
recognition of the respective financial instrument.
The Group recognises lifetime expected credit losses for trade receivables. The expected credit losses on
these financial assets are estimated using a provision matrix based on the Group’s historical credit loss
experience, adjusted for factors that are specific to the debtors, general economic conditions and an
assessment of both the current as well as the forecast direction of conditions at the reporting date,
including time value of money where appropriate.

WasteCo Group Limited (formerly Goodwood Capital Limited)
Accounting Policies
For the year ended 31 March 2023


13
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the
risks and rewards of ownership and continues to control the transferred asset, the Group recognises its
retained interest in the asset and an associated liability for amounts it may have to pay. If the Group
retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group
continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds
received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.
2.20 Financial liabilities
Financial liabilities are classified as either financial liabilities at ‘fair value through profit or loss’ (“FVTPL”)
or ‘amortised cost’.
The Group has no financial liabilities at FVTPL.
Financial liabilities measured subsequently at amortised cost
Other financial liabilities (including trade and other payables, borrowings and lease liabilities) are
subsequently measured at amortised cost using the effective interest method. The effective interest
method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash payments (including all fees and points paid or received that form an integral part of the
effective interest rate, transaction costs and other premiums or discounts) through the expected life of
the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial
recognition.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged,
cancelled or have expired. The difference between the carrying amount of the financial liability
derecognised and the consideration paid and payable is recognised in profit or loss.
Convertible notes
The compound financial instruments issued by the Group comprise convertible notes.
The component parts of convertible loan notes issued by the Group are classified separately as financial
liabilities and equity in accordance with the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument. An equity instrument is any contract that
evidences a residual interest in the assets of an entity after deducting all of its liabilities. A conversion
option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed
number of the Company’s own equity instruments is an equity instrument.
At the date of issue, the fair value of the liability component is estimated using the prevailing market
interest rate for a similar non‑convertible instrument. This amount is recorded as a liability on an
amortised cost basis using the effective interest method until extinguished upon conversion or at the
instrument’s maturity date.
The conversion option classified as equity is determined by deducting the amount of the liability
component from the fair value of the compound instrument as a whole. This is recognised and included
in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion
option classified as equity will remain in equity until the conversion option is exercised, in which case,

WasteCo Group Limited (formerly Goodwood Capital Limited)
Accounting Policies
For the year ended 31 March 2023


14
the balance recognised in equity will be transferred to share capital. Where the conversion option
remains unexercised at the maturity date of the convertible loan note, the balance recognised in equity
will be transferred to retained earnings. No gain or loss is recognised in profit or loss upon conversion or
expiration of the conversion option.
Transaction costs that relate to the issue of the convertible loan notes are allocated to the liability and
equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to
the equity component are recognised directly in equity. Transaction costs relating to the liability
component are included in the carrying amount of the liability component and are amortised over the
lives of the convertible loan notes using the effective interest method.
2.21 Foreign currency translation
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions or valuation where items are re-measured.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated
at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a
foreign currency are not retranslated.
Exchange differences on monetary items are recognised in the profit or loss in the period in which they
arise.
2.22 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
are shown in equity as a deduction, net of tax, from the proceeds.
2.23 Share based payment transactions
For equity-settled share-based payments where the goods or services acquired from non-employees can
be measured reliably, then the goods or services are measured directly at their fair value. If goods or
services cannot be measured reliably, or for transactions with employees, the goods or services are
measured indirectly, i.e. with reference to the fair value of equity instruments granted.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will
eventually vest, with a corresponding increase in equity.
At the end of each reporting period, the Group revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss
such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the
share-based payments reserve.
The share-based payment for the acquisition of WasteCo was valued with reference to the fair value of
equity instruments issued by the Company. The share-based payment has been expensed at the date of
the reverse acquisition (refer note 2.3).