REGISTERED COMPANY NUMBER: 03286173 (England and Wales) REGISTERED CHARITY NUMBER: 1064588 REPORT OF THE TRUSTEES AND **AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024** ## **FOR** ## **TOOGOODTOWASTE LIMITED** Bevan Buckland LLP (Statutory Auditors) Ground Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA TOOGOODTOWASTE LIMrrED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Page Report of the Trustees Report of the Inde￿ndent Auditors 8 to 10 Statement of Flnancial Actjvlties Balance Sheet 12 Cash Flow Statemant 13 Notes to the Cash Flow Slatem¢nt 14 Nots$ to the Financial Statements 15 to 26 Detalled Statement of Financial Acllvltl•s 27 to 28 TOOGOODTOWASTE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 The twste8s who are also dirECtors of the charity for the purposes of the c￿7panieS Act 2006, present their report with the financial statsments of the charty for the year ended 31 December 2024. The trustees have adopted the provisions of Accounl"ng and Reporting by Charrties: Statement of Recommended Practice applicable to charities preparing their accounts in accordanca with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 {effeclive 1 January 20191. OBJECTIVES AND AcTIV￿lEs Objectlves and aim$ Objects & princlpal a¢tlvFties of the charity The (*arlty is estsblished to assist wth the relief of povety and opgrates wilh the followng key objectibEs arKI principal activities.. Provl$lon ol Affordabla Household fterns: Supptying low-￿St or free ess6ntial hous&hold goods to individuals and families in need, helping to alleviate ff nancial hardship and improve qualty of life. Advancemént of Educatlon and Personal Development: SuppoTb'ng individuals through volunteerirrfj and training opportunities aimed at developing work-reiated and social skills. These a¢tiwties are designed to improve employability, build confidence. and promote social inclusion. Envlronrnéntal Sustainability through Ratycllng: Promoting sustainable waste management by collecting arKI redistributing pre-owned furniture and household it8ms that would otherwise go to landfill. This reduces waste and supports environmentsl responsibility within the community. Providing access to affordable household itsms The charity is cornmitted to reducing financial ha￿Ship by making essential household Stems accessibla and affordable for everyone in the communty. Across all sho5￿00M loc4tions, donated goc(Is are offered for sale at fair second-hand market value. Every itèm undergogs a robust process of quality control, sorbng. Gleaning. and safety checking to ensure it is safe. functional, and ready for reuse. The organisation also operates a specialist dom8Stio appllance rethuse facility for &16Ctrical and gas items. This facility lully complies with all WEEE Iwaste Electric41 and Electronic Equipment) ensuring Ihat refurbished appliances meet the highest standards of Safety and environmental responsibility. Provldlng opportunities to volunteer & train The charity is dedicaled to enhanong social inclusion. skill devdoprnent and employability by offering a wide fange of volunteering and training opportunities. Voluntsers play a vital ro￿ acro55 811 areas of the organisation, contributing lo day-t￿aY op8rations as well as governance through participation on the Board of Trustees. Thes& opportunities help individuals build wort<-based skills. impr¢)ve confiden￿, and develop social interaction, laying the gr0￿dwork for future employment or further education. In addition. we Dffer structured placement opportunities to support the rehabilitation and employability of ex-offenders, working in pathership with the Probation S8Nice. These placements provide valuable real-world experience and contribute positivew to individual growlh and communty reintegration. Through the8e initiatives. the charity not only 8UPPOrts its own cyerational needs but al80 helps individuals achieve pèrsonal progress and soaal mobility- Re¢y¢llng and wasts managemént The charity plays a key role in promoting sustsinable waste management and environmental responsibility across Rhondda Cynon Taf and beyond. We offer a reliable, free household collection Se￿1￿ for ilems that are suitable for reuse. ensuring that quality furnilJre and househc4d goods ara diverted from landfill. In 8ddilion. members of the public are welcome to drop off reusable items at our facilities. All donated goods are carefully 50rt&J. cleaned, and tested before being made available for sale in our chaiity showrooms. For comme￿181 organisations, we provKJé a cc41ection service for reusable goods, induding end-of-line stock and retumed items. supporting ethical disposal rouse within tho business sector. Page 1 TOOGOODTOWASTE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 The organisatr.on also operatss a professional Propety Clearance SeNice for indivKluals, solicilors, landlords. and houslng associations. This income-generating service aims to maximise réuse and recycling of cleared items, WOTking in partnershlp wth other organisations to minimi5e waste. We are fiJlly licensed to carry and process waste. holding Stat￿ as a Waste Carrier. an Approved and Authorised Treatment Facility {AATF). T11 Exempts'on and an Approved Reuse Cenlre {ARCI. Thes8 accreditations retlect our commitment to enmronmental compliant?. safe handling of waste, and the promotion of a circular 8conomy. Organlsatlon Overview and Impa¢t ststement Toogoodtowasts is committed to maximising the reuse of item5 and generating income to support its charitable objectives by ensuring all seNces-induding access to charity showTooms-are open to everyon&. To fvrther its mission, the organisation has established a hardship fund that enables tt to provide essential ilèms fre& of charge lo individuals wlh no other means of financial support- These efforts are particularly focused on people in crisis situations. swh as those fleeing domestic Vtolenc8 or dealing wth lite-altering cirujmstances, where timely practical help can make a significant difference. We work collaborativeW with a wdè range ol support serV￿e5. induding social serwces. Women's Aid, addiction support organisations, faith groups and mental health charities. Our practical support Gornplements their wort< and str8ngthens the overall impact of assistance offered to vulnèrable individuals. Racognising high unemploy￿nt levels and limited OFVOrtunities in the local area, Ihe organisation is also dedicated to supporting work-based learning. Through our training room and access to ICT equipment we help volunteers and placement participants gain valuable, transferable skdls to improve their employment prosp8cts. Our work 15 made possible by thè invaluable ¢ontribution5 of our volunkers and the support of external grant fundèts. We activdy seek match funding to sustain and grow our services. ensumg that both our customers and Èen8fiaariès feel respeded, supported, and empowered through our assistsnce. ACHIEVEMENT ANL) PERFORMANCE During the year, toogoodtowasle Limited ddivered a vride range of community-facing initiatives. reflecting the organisation's contfnued commiknent lo environmental sustsinabilty. social welfare, and sxmmunity engagement. Corporate Partner¥hip8 and donors We recognise the importance of strategic partnerships to halp us deliver our aims and are grateful to our commercial donors who donated stock. Notable contributors indude: - OHU Currys - IKEA - John Léwis - Airsprung Beds - Relyon Beds D&G Office interiors - The ￿)plianCe Recyding Group NHS & Public Wales Maerdy gifting BBI Office Interiors This cdlabor3tion has hdped to divert large volumes of elerxncal items, furnrture and other household items from landfill and provided quality. affordable items to individuals and families, while luthering our c4rcular economy model. Pagg 2 TOOGOODTOWASTE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 Prison Partnership Programme We continued to develop our succéssful working relationship with Parc Prisons wothshops. Assistsnce via workshops included.. - matt￿$S cleaning and refurbishment - PAT testing of electrical goods - Fumituré upcycling - Assembty of flat-pad( fumiture This partnership not only supports our reuse goals but also provides prisoners with valuable rehabilitation and transferfable skills linked to 6mployability. Commercial Office Clearances Commeraal office c￿aran￿ generate large volumes of reusablè office fumiture. which were made available to the Ioc81 community al affordable prI￿s. - These efforts not only supported local people but significanuy contributed to the diversion of waste from landfill, aligning with our suslainability goals. Communlty Space Use Our Tr8orchy Community Space served as a valuable local asset duriry th8 year. -11 was used by Rhondda Radio as a Se￿nd recording stud￿. 11 also provided a base for ts Pen-y-cymoedd Farn Community Fund supporting their outreach acb'vities. Public Events and Famlty Engagemènt A number offree events were held across our showrooms durirvJ the year. Free toys were dislribut8d to children during half-tenn holtdays. At Christmas. showrooms in Ynyshir and Aberdar& featured festive Santa Sleighs next to 12ft Christmas Trees, Creating memorable photo opportunities for local families. Ref8rral SupporL Essential Aid and Donations to local cause8 - A total of 268 requests for assk£lanc£ were re￿Ived from referral partners throughout the year which assisted 583 individuals. Beneficiaries included.. Individua15 momng out of temporary accommodation follo¥Mng homelessness. - People entering first-ts'me tenancies wth limited or no financial ￿sOUrces. Families undergoing significant life changes requiring support with essential fvrniture and household items. - Local groups requiring induding a Fridge lo Treorchy Comprehensive school. a Desk to Oasis Church, Fumitura for tha wellbeing room via Cwm Taf Morgannwg Universty and Fumrture for the Hub at Ty Pentre Eglwys. Trivallis. Volunteering and Training Opportunltlès We deeply value the time, energy, and ox)mmilm8nt volunteers contribute to the organisation. Their supporl 15 essential to our mission and success. Volunteers help in all areas of the organisation from An%Yering telephone calls to bookiThJ in collections, seMn9 customers on the shop floor, sorting & cleaniThJ items before they go for sale or out on our vans collecting & dalivering - 130 dedicated volunteers gen8rously contributed more than 32.000 houls of service. Recyellng & wasts management Throughout the year our dedicated van teams worked within the local area. operating the free household collection semce and also worked alongside multiple oommercial organisat.ons collecting items that are suitable for reuse. - Over 179.000 items were collècted equating lo 1.264 tonnes. - Over 152,000 items wer8 selected by customers for reuse from out showrooms. 180 Gommercial and household clearance $8Nices were completed. Page 3 TOOGOODTOWASTE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 FINANCIAL REVIEW Income from donailons and legacies G8neral donations and membership subscript￿n$ in th8 year totalled £1,559. The incomè generated from the Gift Aid Retail Scheme was £9.264. Income from Charitable Acltvitse8 Income generated through our charity showrooms from the sales of electn"cal, fumiture and other household items was £1,010.215. Our Treorchy branch re-opened in Spring 2024 with a c(Knpletely new look. Vintage and Retro (V&RI Social Enterprise projects raised income of £137.523 for the completion of the propety clearances, items 501d via auction and income from extemal r6cycling sources. Other Income £1,000 was received in year from the Ne￿hboUrlY under the 'Warm Communities Fun(r. £20,OfyJ frorn RCT Environmental services for the Servic£ level Agreement. £1,465 received in office rentals lor Treorchy £1,248 in Interest for savings accounts. ExpendFtura for Charitable Activities The organisation continued to review its operational costs arKI made savings wherever possible. The lotal cosl of providing Chantable activities in the year wa5 £1.256.913. a decrease of 3% on Ihe previous year. - The organisation increased its salary rate for all employe88 to receive at least the National Living Wage. - Van19ases were renewed during thé year promding a reliable fleet and controlled costs. A small number of new stems were purchased to supply essential fumiture & electrical items to our local council's HousiNJ Advice Centre and other r8ferral partnéts. - Loan repayments o)ntinued during the year for the Government Bounce Back Loan Scheme. Incfuded in the above costs for charitab￿ actthiilies are depreuation costs of £60.495 Net movemenl In funds The organisation shows a deficit on unrestricled funds for the year of £35.808, this iridudes depreciation of assets of £21,664. This had been antiupated with the increase in the hourly ratè of pay for all employees and the ¢losur& of Treorchy. A deficit of £38.831 in restrithd funds this year is due to depreciation of capital assets. Risk Review The bt)ard of directors has a rrsk management strategy which comprises.. - An annual revt8w of the principal risks and Un￿rtaIntieS that the chaiity faces. the establishment of new policies. systems and procedures to mitigate those risks identified in the annual r8Vi6w and the implementation of prO￿dureS destgned to minimise or manage any potential impact on the charty should Ihose risks m818rialise. Attention 18 also foujsed on non-financial risks by hamng a proactive approach to Health & Safety, which is managed by a qualified NEBOSH member of the organisation. As part of the induction prO￿sS all new personnel (paid and unpaid) receive health & safety awareness and manual handling Iraining. R08eThes Pollcy The organisation aims to retain adequate reswves to fvnd b¢)th fixed assets, working capital and closure cos1$. - Worklng Capital It is th8 Trusteès, vtew that a woiking capital reseNe amounting to three months, expenditure is adequate, £300,000 lexduding depreciatson}. It is the intents'on to increase this to the desired level as soon as is feasible. - Closurg Costs A designated reserve had bèen created in previous years to cover the costs that would arise if the organisation were to see a significant reduction in income that woukj cause it to close. The ants'cipated costs for this are £100,000 however this was releasgj into the general fund in 2024 to cover the costs of th8 Tret)r¢hy renovations. It is the intention to increase this to the desired level as soon as is feasible. - Frèe Reserves The fr8e reserves, i.e. those not bed up in ￿ed a55ets and deS￿nated funds held on 31st December 2024 amounled lo £61.648. The truste85 are aware of the risks of not hav￿￿ sufficAent resetves and the reserves policy will be reviewed as part of our fulure strategy planning. Page 4 TOOGOODTOWASTE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 Pay Poll¢y lor senior stsff The pay of senior stsff is reviewed annualty by the board of directors. The organisation, guided by the board of directors, has adopted a set of principle5 when setting charty staff remunerats'on so a5 to achieve a balance belween fair pay to attract new staff and to keép appropriately qual'fi&l staff to lead, manage and support or deliver the charity's aims. FUTURE PLANS The twstses recognise that there is an ongoing cost-of-living crisis that affects thé disposable income of our customers and as such, retail sales and donations of stock may be impacted in fijture year& Budgets and plans for 2025 will be regularfy reviewed by the Sen1￿ management team and the board of trustees. Other future plans include - - Continue to promote tha r&branded Treorthy ShovéToom, 'Vintage & Retro.. - Develop more commerci81 partnerships for End-of-line or discontinued stock - Update the organisations ICT to safeguard against malvrare attacks. - Increase Organisations Reserves STRUCTURE, GOVERNANCE AND MANAGEMEKr The organisation by special resolution on 30th May 2017 dlanged its name to kn)goodtowaste Limited. {Prev¢cus name Valleys Furniture Recycling Limited). Thé organisation registered as a charity in September 1994 and IT￿Orporat￿ on 2 De￿mber 1996. On 19 June 2000 it regislered as a company Irmited by guarantee and adopt8d tts Memorandum and Articles of As50Ci8tion. It was resolved thal a new set of Memorandum and Articles of Association were adopted in substitution for all exi5ts.ng Artides of Association on 10th NOVem￿r 2022. The Trustees as charity trustees have control of the Charity and its priyety and fijnds. The numb8r of Trustees shall be not less than three and nol mora than frfteen indiwdual5. The Trustees hold at least 4 Boaftl Meetings each year. CcKnmrttee me&tx)gs i￿luding Finance, EmployThenl and Marketsng are hèld quarterly, on altemale months (where possible). Trustee Re¢Nllment and Appolntsnent A third of trustses must rebre by rotation (longest in offi￿> at each AGM bui may put themselves forwa￿1 for reryelection provided that no Trustee may serve more than 9 consecutive years in Offi￿ unless othernise detemiined by a resolution of the Trustees. The trnjslees may at any ts'me COwOPt any individual. Such Trustees would only hold office until the next eleGlion of Trust*s or until removed by Ihe Trustses (whic*8ver is earlier). The Chair of the Trustees is elected by the Board at the )Irst fvll boatd me8ting following the AGM. Potential new Irustses are provided with an infomiation pa(*. asked to complete an applicalion fom and then invited to attend an infomal meeting with representatives from exisb'ng Board memtsers to discuss the Values, Aims and Objectives of the company and Iheir obligations under Charity and Company 13w. New trustsés undergo an indudion pro￿8$ which includes familiarisation with key documents induding hAemorandum and Articles of Association, Business Plans and Finanual Budgets. During the induction process. new twslees are encouraged to spend some tim6 Within Ihe organFzation. meeting CUff6nt paid and unpad personnel, customers and Stakeholders. Specific training on governan￿ is also provided. Organisailonal Structure The Chièf Exe¢)Jiive Officer (CEO> is responsib18 for the strategic growth arnl vision of the organisation, reporting to the Board of Directors. The Finance Mana Jèr is responsible for financial accountability and financial anatysis, reFQrting to the CEO. Tr8asurer and Finance Committee. The Operalions Manager is responsible for the day-to4ay operational pro(xsses in all the branches and assistsd by an Assistant Retail Manager and an Assistant Warehouse Manager. Th8 management team is supported by 8 Finance Offitsr. Marketing offi￿r, Workshop Supervisor, Propety Clearan Team Leader. 3 Domestic Appliance Engineets, S Van Drivers I supetvisors, 6 Customer Service supèrvisors, Logistics Clerk. Bric a Bra¢ supervisor. Call Centre supervisor and a Cleaner. In addits.on lo these 27 paid posIt￿nS, the organisation ￿lIeS on volunteer support from around 20 individuals each day. Page 5 TOOGOODTOWASTE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 REFERENCE AND ADMINISTRATIVE DETALS Ragl$t•red Company number 03286173 (England and Wales} Registsred Charlty nUM￿r 1064588 Reglstered o)Tice Toogoodtowaste Ynyshir Road Porlh CF39 OAT Tru8tees O Lewis D J Henderson MGay D T Davie8 MHBryan PJMoss N Lewis K G Jones M N Birch J T Matthews T C Gray lappointsd 24.10.24) R J Vvilliams Company Secretsry R Edwards Audltorn Bevan Buckland LLP (Ststutory Auditors) Ground Roor Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 gLA Solicitors Geldards LLP, 4 Capital Quarter. Tyndall Street Cardiff. CF10 4BZ Bankers Bardays Bank Plc, 1 Churchlll Plate, London. E14 5HP STATEMENT OF TRUSTEES. RESPONSIBILrriES Th8 trustees (who are also the dire¢tors of Toogoodtowaste ￿Mited for the purposès of company lawl are ￿spOnsible for preparing the Report of Ihe Tmslees and the financial statemenis in accordance wilh applicable law and United lQngdom Accounting Slandards (United ￿ngdorn Generally AC￿pted Accounting Prathcel. Company law requires the Iruslees lo prepare financial statements for each financial year which give a true and fair vi8W of the state of affairs of the charilablè company and of the incoming resources and application of resources. induding the income and expenditure, of the charitable company for that period. In preparing those financial stalements, the trustees are required to selèct suitsble accounting pol￿e9 and then apply them consistentty.. ob$eNe thé methods and principles in Ihe Charity SORP.. make judgements and estimates that are reasonabk aNJ prudent" prepare the financial ststemènts on tre goin9 concern basis unless it is inappropriate to presume that the challtable company will mnb.nue ￿ business. Page 6 TOOGOODTOWASTE LIMITED REPORT QF THE TRUSTEES FOR THE YEAR EKDED 31 DECEMBER 2024 STATEMENT OF TRUSTEES. RESPONSIBLITIES - corrtinuod The truste88 are iespon&lbie for keeplng proper accountrw records which disths8 reasonable acujracy at any Wme the financial po5tbon of the GharitalAe company and to ffiable Ihem to en5uTe th3t the fjnancial staternents comply wrlh Ihe comp￿leS Act 2006. Th&y are also réspMslble for safeguarding the assets of the tharltable ¢cfflpany and hence for takiro wsonaLYe sty forthe prevention and detectionof fraL4I and other trregularitles. In so far a5 the trusiees are aware: the￿ 19 rn felevanl audil infomiation the chwitable CIXnp￿￿8 wdilors are unaware: ai the trusteas have tAken All stops th* th8y wght to have taken to make tr￿MSelveS aware of any relevant audit Inl¢Jmation aTra to establish that the a￿litorS are aware ol fhal intom)aiM. AUDrroR8 The auditors, Bevan Bud(iand LLP (Stsbjtory Auditor81. val be for re-appointment at trÈe f(thcoming Annual Genera Meetiro. c£.l(A.12Q.5 Pft)v￿1 ty olller d the board ot trustees on ..- and sign&1 on its behalf by". O J Hender80n- Trust88 KG Jones- TNstee Page 7 REPORT OF INDEPENDENT AUDITORS TO ThE MEMBERS OF TOOGOOOTOWASTE uivfED Opinion Vve have audited the financial statements of Toog¢)odt¢Jwaste Limited (the 'th8ritable company'l for Ihe year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balan￿ Sheet, the Cash Flow Stalement and notes to the financtal statements, including a summary of significant accounling policies. The financial reporting frameworf( that has been aKplied in their preparation is aF¢)licable law and United lfjngdom Accounting Stsndards (United lQngdom Generally Accepted AccountirKJ Practice). In our Opffiion the finanaal statemenis". give a true and lair view of the state of Ihe charrtable c¢MpanVs aiTrdirs as at 3108cember 2024 and of its incoming resour￿5 and application of resources, iicluding its inccrtne and expenditure. for the year then ended. have been prop8rty prepared in accordance with United I￿v￿0)M ￿rallY A￿pIed Ac£ounting pract￿,. and have been prepared in accordance with the requirements of the Companies Act 2006. 84818 for oplnlon We conducted c￿T audit in accordance vAth Intemational Standards on Audiling (UK) {ISAs (UK)) and applicable law. Our responsibilit￿S under those standards ￿e further descfibed in the Auditors, responsibilities foT the audit of ihe financial ststements seth'on of our reporL We are independent of the thantable company in accordance with thè ethical requirements that are relevant to our audit of the financial sL2tements in the UK, including the FRC'S Elhic81 Standard, and we have fijlfilled our other ethical resp0nsits.lrt￿S in ac￿danCe with I￿se requirements. We believe that the audit evidenf* we have obtained is sufvient arKI apprcpriate lo provKYe a basis fDr wr opinion. Conclu•ion8 relitlng to golng concem In auditing the financial slatements. wé have conduded that the trustees. use of the ￿1r￿j concem basis of accounting in preparation of the financ4al ststsm8nts is appropriate. Based on tho woth have performed, have not identified any material uncertainties relating to ev&nls or condilions that iNJividually or colle¢alv￿, may cast significant dotht on the charitable companws ability to continue a5 a going cortem for a p8nod of al kast ￿1ve months from whén the financial slatements are authoiised for issue. Our responsibilities arKI the resFrfThbiltss of the trustees with r8sm to 9w concem are d8scribed in the relevant sects.ons of Ihis rgport. Other Informatlon The trustees are iesponsible for the olher infomiation. The other infomatson ¢%XllPfises the infomiation induded in the Annual Report, other than the financlal slatements and our Report of the Independent Auditors thefecm. Our opIn￿n on the financial statements does ￿t (xjver the oth8r infomiation and, eX￿pt lo the extent othervffje expliuty stated in our rewt. we (lo not exFrfess any fom) of assuran￿ c￿¢￿10n thereon. ID conn8ctson y￿¢h our aLbJrt of the f￿a￿la1 stat￿}ents, our reSpOn￿bIlty is to read the othef infomalion and. in doing so, consider whelher the other infonnalion ts materially inconsistent ￿th Ihe financial ststements or our knowledge obtaingd in the audit or otherwise appears to be materiaty misststed. If we idw)tify such matsrial inconsistencies or apparent materi81 misstatsments, we are requlred to deternine this gtves rise to a material misstatement in the financial ststemenls themselves. If, based on the worf( we hav8 perf0M￿d, we conclude that the￿ 15 a material misstatement of this other information, we are required to report that facL have rx)thing to rewl in regard. Oplnlons on other mattern prescrlb•d by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit the information given in the Report ol the Trustees for the financial year for which the financial statements are prepared is consistent V+ryth the finartial ststements.. and the Report ofthe Trustees has been prepared in accordance ¥￿th wlicable bJal requirements. Matlern on Mthlch wo are rnqulrod to report by ex¢epllon In the light of the knowledge and understanding of the charitable company and its environment obtained in the wrse of lh8 audit. we have not identified matenal misylatements in the Report of the Tnjstees. IN8 have nothing lo report in respect of the following matters whore the C¢)mpanies Act 2¢X6 requires us to Teport to y¢)u if, in our opinion.. adequate accounting records have r￿1 been kept or retums adequate for our audit have not been ￿CeIVed from branches not visited by us.. or the finarK4al ststements are not in ￿feeMeTrt with the accounting ￿cordS and retums., or certain disclosures of Iruste8s' reM￿eration speofied by I￿1 are not made" or we have not received all the informab'on and exp1anatKm￿ VIE require ft)r our a￿J1(. or the trustees were nol entilled to take advantage of the small ¢¢knpan*s 8x•Trcm from the requirement to prepare a Slralegic Report or in preparirKJ Report of the Tnjstees. Page 8 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TOOGOODTOWASTE LIMITED Re8pon81billtle8 of tru8tee8 As explained more fully in the Statemert of Trustees. Responsikn'lities, the trustées (who are also the directors of the cttar1tab￿ company for the purposes of company law) are responsible for the p￿paratiOn ol the financial statements and for ￿Ing satisfied that they give a true and fair Mew, and for such intemal control as Ihe trustees delemiine is necessary to ènable the preparation of financial statements that a￿ free froyn material misstatement. whether due lo fraud or error. In preparing the financial Statements. the trustees are responsible for assessing the charitable company's ability to continue as a going concem, disclosing, as applicable, matters ￿lated to going concern and using the going concem basis of accounting unless th8 trustses either intend to I￿uldate the ¢haritable cThipany or to ￿a58 operations, or have no realistic altemabve but to do so. Our responsibilitie8 lor the audit of Ihe finan¢lal statements Our objectives are to obtain reasonable assurancè about whether the financtal statements as a whole are free from matedal misststement INhether due to fraud or error, and to issue a Report of lh6 Independent 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 misststement when rt e￿sIs. Misstatements can arise from fraud or error and are considered material rf. indiwdu81ty or in the aggregate. they could reasonably be expected to influence Ihe economic decisions of users taken on the basis of these financial statements. Prior year Audlt by Another Auditor Thé financial stslements or the Charitgble company for the peri(KJ ended 31 De￿rnber 2023 were audited by another auditor who expressed an unmodified opinion. We ha￿ reVIev￿ the predecessor audttorfs report and considered Fts implications on the current yearfs financial statements. Extent to whlch the audit was consldered Capable of detectlng Irregularities, including fraud We identify and assess the risks of material misstatement of the Financial Statements. whether du8 to fraud or error, and then. design and perfom audit procedures responsive to those risks. induding obtaining audit eviden￿ that is suffiaent and appropriate to provide a basis for our opinion. We discussed our audit independence ¢omplying with the Revised Ethical Standard 2024 wlth the engagement team members whilst planning the audit and continually monitored our independence throughout th8 process. Idontifylng and a8se88lng potenllal risks related to irregularities. In identifying and assessing risks of malerial misstatemenl ￿ respect of irregularities, induding fraud and nonThcompliance with laws and fegulatsons, wr procedu￿5 induded the following.. enquiring of managemen( including obtsiniThJ and reviewing supp￿ting documenlalion, conceming thé Charity polities and procedures relating to: identifying. evaluating and complying wlh laws and regulations and whether they were aware of any instances of non-compliance., detecting and responding to the rlsks of fraud and vtslher they have knowledge of any actual. suspected or alleged fraud.. the internal controls established to mrtigate risks related ttj fraud or non-com￿lan￿ with laws and regulations,. DisC￿S1n9 among the engagement tsam how and wfiere fraud Might occur in th8 Financial Stslements and any potential indi¢ators of fraud. obtaining an understsnding of thè legal and regulatory frameworks that the Chanty operat65 in, focusing on those laws and ré9ulatsons that had a direct effect on the Financial Statéments or that had a lundamental effect on the operations of th8 Charity, The key laws and regulats'ons we considered in this context indud8d the UK Companies Act and relevant tax legislation. Audit response to rfsks Identified In addition to the above, our proCedU￿S to respond to risks identified induded the following". ravlewing the financial statemènt drsdosures and testing to supporting documentation lo assess compliance with relevant laws and regulations.. enquiring of managemenl con￿MIng aclual and polential litigation arKI claims: perfoming analytical procedures to hjentify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud,. reading minutes of meetings of those charged wrth govemance and reviewing correspondence with HMRC,. and In addressing the risk of fraud through management override of controls, testing the appropriateness ofjournal entries and other adjustments.. assessing whether the judgements made in making accounting estimates are indicative of a potents'al bias" and evaluating the business rationale of any significant transactions that are unusual or outside the nom)al course of busin8SS. We also communicated relevant identified laws and regulations and potential fraud risks to all engagem8nt team members and rem8in8d alert to any indicaliors of fraud or non 490 99 {3,550} 11131) 63,003 739 1,962 6,780 11,600) Net cash used In operatlons 29,4821 47821) ANALYSIS OF CHANGES IN NEf FUNDS At 1.1.24 C8sh flow At31.12.24 Net cash Cash at bank and in hand 200,401 117,080 200.401 83,321) 117,080 Dobt Debls falling due wrthin l year Debts frdlling due after 1 year (10,01]O} (10,0￿) 10.0 24.167 10.000 14,167) Total 176.234 3.321 102 913 The not8s fom) part of these financial statements Pag8 14 TOOGOODTOWASTE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 ACCOUNTING POUCIES Ba8ls of preparing Ihe financial stalements The financial statements of the charitable company, which is a public benefft entity under FRS 102. have been prepared in accordance with the Charitses SORP {FRS 102) 'Accounting and R&poitng by Charityes, Statemént of R￿QmMended Pradrts applicable to charities preparrng their accounts in accordance with the Financial Repo￿n9 Standard applicable in the UK and R6publi¢ of Ireland {FRS 102> {effective 1 January 20191,, Financral Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. and the Companies Act 2006. The finan(ial stalements have b6en p￿pared under the historical cost convention. Critical accountlng judgements and key sources of e8timatlon uncertainty In the application of the charity's accounting pOI￿leS, the Irusteès are required to mak8 judgements, estimates and assumpb.ons about the ¢arrying amount of assets and liabiltties that are not readily apparent from olher sources. The estimates and associated assumptions are based on historical experience and other factorJ that are considered to be ￿levant Aclual re$￿ts may differ from these esb"mates. The estimates and urKlerfying assumptions are reviewed on an ongoing basis. Revisions to a¢￿UntIng eslimates are recognised in the period in which the estimate is remsed where the ￿vIsion affects only that period, or In the period of the revision and Mure perrods where the revision affects both current and Mure periods. Income Income is recognised when the charity has entrtlement to tr￿ funds, any perfomance condilions attached to the item{s) of income have been mel it is probable that the income will be rel￿1Ved and the amount can bé ffleasured reliably, Income consists of the invol￿d value (exduding VAT of goods soldlsupplied to third parties and members. No amounts are Included in the financial statement for seNices donated by volunteers Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Intere51 on funds held on deposit is included when receivatle and the amount can be measured reliabty by the charity, this is normally upon notification of the interest paid or payable by the Bath. Membership and Subscription income is credited to the Ststement of Financial Aciivities in the year in which they are due. Income received in advance Is deferred to the appropfiats financial year. Sponsorship Income is uedited to the Statsment of Financial Actiwties in the year in which they are due. Income from govemment and other grants, whether 'capital' 9rants or 'revenue' grants, is recognised when the charity has ent'llement to the funds, any performance conditions attached to the grants have been met, Il is probabl& that the Income will be received and the and the amounl can be measured reliably and Is not deferred. Capilal grants are released to the SOFA in the year of receipt Fixed assets relating to capital grants are Capilalised, and dep￿18th'On Charged is offset against the grant ￿Come. in a restricted fund. Income from furniture supplled A minimum fixe for the year. Basic financial liabilities Basic financial liabilits'es, including ueditC￿s 8nd bank loans Initiany recognised at transaction price unless the arrangement constitutes a finan￿ng transaction, where the debt instrument is measured at the present value of the futur6 payments discounted at a market rate of Interest Financial liab￿ltieS dassified as payable within one year are not amortised. Debt instruments are subsequently carrred at amortised cosL using the effects.ve Interest rat8 méthod. Trade Credito￿ are obllqations to pay foi goods or swice5 that have been acquired in th& ordinary cours8 of operations from suppliers. Amounts payable are Classified as currenl liabilities if payment is due within one year or less. If not, they are presented as nonourrent liabilities. Trade ¢reditors are recognised initially al transaction price ané subsequenty measured at amorttsed cost LJ$ing the effective interest method. Der8¢ognftion of flnanclal liabllltles Financi81 liabilitles are dèrecognised when the chariws contractual obligations expire or ar8 dlsch8rg8d or cancelled. Cash and Cash Equivalents Cash and cash equiv8￿nts Include cash in hand. deposits held at call wth banks, other short-tsrm liquid inveslmenls wtlh original maturities of three months or less. and bank overdrafts. Bank overdrafts are shown Wtthin borrowings In cuffent liabililies. Going Con¢arn At the time of approving the accounts. the trustees have a reasonable expectation that the tharity has adequate resources to continue in operational existsnce for the foreseeable future. Thus Ihe Irustees continue to adopt the going con¢em basis of accounting in preparing the accounts. Debtors Trade and other debtors are reocMJnised at the settlement amount du8 after any trade discount offered. Prepayments are valuad at the amount prepaid net of any trade discounts due. Creditors and provisions Creditors and provisions a￿ recognised where the company has a present obligation {leg81 and conslruclivel r8sultsng from a past event that will probably result in Ihe transfer of funds to a third paty and the amount due to s8tUe the obligation can be me85ured or 85ts"mated reliably. Creditors and promsions are nomally recognised at their setdem8nt arno￿1 after allowiThJ for any trade discounts due. Page 17 continued... TOOGOODTOWASTE LIMITED NOTES TO THE FINANCIAL STATEMENTS - Contlnued FOR THE YEAR ENDED 31 DECEMBER 2024 DONATIONS AND LEGACIES 2024 2023 Donattons Memberships 10,810 13 10,581 37 10,823 10,618 INVESTMENT INCOME 2024 2023 Rents received Interest re￿1vable 1.465 1,560 2.713 1,560 INCOME 2024 2023 Activity Charitable Activity Charitable Activity Charttable Activity Charitable Activtty Grants Household items supplied Service level agreement Social enterpris6 projects 1,000 1,010,215 20.000 137.523 4,849 982,464 20,000 170.119 1 168.738 1.177.432 Grants received, inclL*Jed in the ab¢)ve, are as folows: 2024 2023 Neighbourly Foundation Pen Y Cymoedd Wnd Fami Wam) Communty FurKI 500 4.349 1.000 1.000 4.849 CHARITABLE ACTIVITIES COSTS Support costs (see note 61 Direct Costs Totals Charitable Actiwty 1,054.435 202 478 1.256.913 Page 18 continued... TOOGOQDTOWASTE LIMITED NOTES TO THE FINANCIAL STATEMEPtrs - eonlinued FOR THE YEAR ENDED 31 DECEM8ER 2024 SUPPORT COSTS Support Costs Governance Costs Support Costs Govemance Costs 2024 2023 60,494 Depreciation 60.494 63,003 63,003 5.883 Advertising & meetings 5,883 11,420 11.420 50.358 Premises costs 50,358 53,932 53,932 45,272 Telephone & administrallon 45,272 45,919 45.919 8.350 Legal & professional fe 8.350 10.568 10.568 14,510 14.510 12,716 12.716 nsurancès 8,611 8,611 Bank Charges 9,317 9,317 9.000 9.￿0 Audtt fees 8.500 8.500 Analysed be￿en charilable activities 193,478 9.000 202.478 206.875 15.375 Govemance costs includes payments to the auditors of £9.tXM) of which £1,5IY) relates to accountancy fe6S. {2023'. £8,500 of which £1.500 relates to accountancy fees). NET INCOMEI{EXPENDITURE Net incomel(exp6nditure) is stated after chargIn￿(crediting). 2024 2023 Auditors, remuneratson Depreciation - owned assets 9,000 60,497 8.500 63.003 TRUSTEES. REMUNERATION AND BENEFrrs There were no trustees. remuneration or olh8r benefits for the year ended 31 December 2024 nor for the year ended 31 Decèmber 2023. Tru$tees' expenses There wer8 no trustees, expenses patd for th8 year ended 31 Decemter 2024 nor for th6 yéar ended 31 De￿mber 2023. STAFF COSTS 2024 2023 Wages and salaries Soci81 security costs Other pension costs 734,471 55,116 769,103 57,667 14,836 804,015 841.606 Th8 f@muneration of key management perS(￿ne1 is as follows. 2024 2023 Aggregate compensation 120 329 149.940 The key management ￿[Sonnel of the charity ccffiprise of the Chief Executive offi￿r. Finance Manager and the Operations Manager. Pap 19 conlinu8d... TOOGOODTOVIASTE LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 STAFF COSTS . eonllnuod The average monthly number of employees during the year was as follows: 2024 26 2023 30 Charitable Activities Governance 28 32 No employees received emoluments in excess of £60.000. 10. COMPARATtVES FOR THE STATEMENT OF FINANCIAL ACTivrriES Unrestricted funds Re5tncted funds Total funds INCOME AND ENDOWMENTS FROM Donabons and legacies 10.618 10,618 Charitable activities Charitable Adivity 1.173,083 4,349 1,177,432 Investrnent incorr 1.560 Total 1 185,261 4.349 1.18g.610 EXPENDITURE ON Charltable a¢tivities Charitable Activity 1249 344 48,971 1.298,315 NET INCOMEI{EXPENDITURE) (64,083) {44,622) (108,705) RECONCILIATION OF FUNDS Total fijnds brought foThvard 504.637 667,452 1.172,089 TOTAL FUNDS CARRIED FORWARD 440,554 622,830 11. TANGIBLE FIXED ASSETS Freehold property Short leasehold Plant and machinery Computer equipment Totsls COST At 1 January 2024 Additions 1.683,482 44.597 14.339 49,607 9,657 1,7S7,085 44,597 Al 31 December 2024 1,728.079 9.657 1.801.682 DEPRECIATION At 1 January 2024 Charge for year 746,520 56.825 11.362 47,821 1,786 8,382 613 814,085 60,497 At 31 December 2024 803.345 12.635 49,607 8,995 874,582 NET BOOK VALUE At 31 De¢emb8r 2024 924,734 1.704 927,100 At 3108c•mber 2023 936,*2 2,977 Page 20 continued... TOOGOODTOWASTE UMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 11. TANGIBLE FIXED ASSETS - ¢ontlnued Th8 big lottery fijnd has a legal tharge dated 15 March 2012 over the chartty's property Unit 1, Ynyshir and 8 legal charg8 dated 1 February 2018 over the charity'$ property previously known as the Treorchy Youth Centre, Horeb Street, Treorchy. 12. STOCKS 2024 2023 Stocks 980 13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade deblor5 other d6btors VAT Piepayments and acCn￿d income 4,445 3,490 4,705 4,705 4,954 31.947 38.759 14. CREDITORS: AMouKfs FALLING DUE WITHIN ONE YEAR 2024 2023 Bank loans and overdrafts {see note 16) Trade créditors Social security and other tsxes Other creditors Accwals and deferred incom8 10.000 20,742 12,104 9.533 17,230 10,000 22,464 23,534 13.872 69.609 69,870 15. CREDrroRS: AMOUNTS FALUNG DUE AFfER MORE THAN ONE YEAR 2024 2023 Bank loans (see note 161 4,167 16. LOANS An analysis of the maturity of lo8￿ is given bel(M'. 2024 2023 Amounts falling due within one year on dmnd: Bank loans 10,O¢X) 10.000 Amounts falling between one and two years: Bank loans - 1-2 years 4.167 14,167 Page 21 continued... TOOGOODTOWASTE LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 17. LEASING AGREEMENT8 Minimumlgase payments under non (35,808) Restrl¢ted funds Big L¢)ttèry- Communty Asset Transfer- Capital Big Lottery- People & Pla¢es- Capital Pen Y Cymoedd IAfind Fam - Capital Welsh Government- Welsh Towns (14.7*} {15.542} {7,291 } (14,796) (15,5421 17.2911 38.831 38.8311 TOTAL FUNDS 1.182,274 1,256.913} 74,639> ComparatIv￿ for movement in funds Net movement in fijnds At 31.12.23 At1.1.23 Unre$tri¢ted funds General fijnd Project dosure costs Working capital 354.637 100,000 50,000 {14,083) 340,554 100,000 50.000) 504.637 (64,083) 440,554 Re8trl¢tsd funds Big Lottery- C0mmL￿1ty Asset Transfer- Capital Big Lottery- People & Places- Capit Pen Y Cymoedd Wnd Fami - Capital Welsh Government- Welsh Towns 302,686 250.070 102.921 11.775 (14,796) (16,748) (2,505) 10.573) 287.890 233,322 1QD.416 667.452 622 830 TOTAL FUNDS 1,172.089 108.705) 1,063,384 Page 23 continued... TOOGOODTOWASTE UMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 19. MOVEMENT IN FUNDS - contlnu Comparative net movement in funds. induded in the above are as follows.. IncomiTrJ re50urc8S Resources expended Movement in funds Unrestrictsd funds General ffijnd Worf(ing capital 1,185,261 (1,199,344} 50,000 (14,083} 50.0001 1,185,261 Restricted funds Big Lottery- Community Asset Transfer- Capital Big Lott6ry - peop￿ & Places- Capital Pen Y Cymoedd Wnd Farm - Capital Welsh Gavemment- Welsh Towns 11.249,3441 164.083) (14,796) (16.7481 16,8541 10,5731 114,7961 {16,7481 12,505) 10,573) 4,349 4.349 48,971) 44,622} TOTAL FUNDS 1,189,610 1.298,315) 108,7051 A current year 12 months and prior year 12 month5 combin&J positi￿ is as follows: Net movement in funds At 31.12.24 At 1.1.23 Unrestri¢ted funds General fund Project closure costs W0￿1n9 capital 354,637 100,000 50,000 {49.891} 304,746 1 ¢JO,000 50,01)0} 504.637 (99.8911 404,746 Raslricted funds Big Lott&ry- Community Asset Transfer- Capital Big Lottery- People & Places- Capital Pen Y Cymoedd Wnd Farm - Capital Welsh Govemment- Welsh Towns 302.686 250,070 102,921 11.775 (29,592) (32,2901 {9.796} 11,775) 273,094 217,780 93,125 667.452 583,999 TOTAL FUNDS 1.172.089 988.745 Page 24 continuaj... TOOGOODTOWASTE LIMITED NOTES TO THE FINANCIAL STATEMENTS - Continued FOR THE YEAR ENDED 31 DECEMBER 2024 19. MOVEMENT IN FUNDS - contlnued A current year 12 monlh5 and prior year 12 months combined nel movement in funds, included in the above ar8 as follows.. Inc(Mning resources ReSoUr￿S exp8ndéd Movement in funds Unrestri¢ted funds General fund Working capital 2,367,535 (2,417.426) 50,0001 (49,891) 2,367,535 Reslrlcted funds Big Lottery- CommuThty Asset Transfer- Capital Big Lottery - People & Places- Capttal Pen Y Cymoedd Wnd Fami - Capital Welsh Govemment- Welsh Towns {2,467,4261 {99,891) (29.5921 (32,290) (14,1451 11.7751 {29,592) {32.2901 19,796) 11,775) 4,349 4.349 87,802> 83.453 TOTAL FUNDS 2.371.884 2.555,228) Deslgnatsd Funds ProjKt Closure The board recognise the to maintain a res8rve to cover the closure costs arising from a significant reduction in income. Restrieted Funds Blg Lottory Community Asset Transfer for the Ynyshir building and extension to include a training room, additional offices and cante8n. Big Lottery- People & Places Grant towards the renovations of the fonner Tr8orchy Youth Centre. Pon y Cymoedd Wlnd Farni This funding was received for the riK)f renovatiorts of the fom*r Treorthy Youth Centre. Funding towards Treorchy re-fit & EBay room in 2023 Welsh Government- W•bh Toyms Funding towards addibonal extemal slorage to increase re-use. Othgr Funds DWP Kickstart8 Funding".towards employment for 11 young peoE4e and associated for 6 months. Page 25 continued... TOOGOODTOWASTE LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 20. CAprrAL COMMITMENTS As at 31 December 2024, the charity dKI not have any rapita commitrnents {2023: £nil). RELATED PARTY DISCLOSURES 21. There were no related party transactions for the yearended 31 Dee48mber 2024. INDEMNITY INSURANCE 21 The charity has purchas6d insurance to protect it loss arising from the neglect or défaults of its trustees and employees, and to Indemnify the trustees against the Cons￿uenl￿s of any neglecl or default on their part. The cost ol this Insurance is included within the overall cost of a sp6aalist charity policy which includes property insurance and the employerfs liability Insuran￿ arKI canr￿t therefore be separat&ly identified. MEMBERS. CONTRIBUTION 23. Contrtbutions for membetslwp for individuals were $8t at £1 for waged and £1 for unwaged. Organisations contributed £1 for membetships. Each membefs liabilty is limited £1. At 31 Oécember 2024. there were 30 members of the company {2023.' 43). Page 26 TOOGOODTOWASTE LIMITED DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 INCOME AND ENDOWMENTS Oonatlons and lega¢ies Donations Memberships 10,810 13 10,581 37 10,823 10,618 Investment Income Rents received Interest receivable 1,465 1,248 1.560 2,713 1,560 Charltable activities Grants Househokl items supplied Setvice level agr8ement Social ent8rprise projects 1,000 1.010,215 20,000 137.523 4,849 982,464 20,000 170,119 1.168,738 1.177.432 Total In¢omlng resources 1,182.274 1.189,610 EXPENDITURE Charitable a¢tlvltlé8 Wages Social security Pensions Volunteer expenses Transport Costs Cost of goods sold 734,471 55.116 14,428 44.046 137.166 769,103 57,667 14,836 36.879 121,828 82.627 1,054.435 1,082,940 Support ¢osts Advertising Bank charges Freehold propety depreciation Short leasehokl depreciab.on Plant and machinery Bank loan interest Insurance Premis8s Costs Telephone and Administrati Legal and professional Auditors, remuneration 5,883 8,121 56.822 1.273 2,399 490 14,510 50,358 45.272 8,350 9.000 11,420 8,578 47,695 1,276 14.032 739 12.716 53,932 45,919 10,568 8,500 T¢)tsl resources expend 1,256,913 1,298,315 Net axpondtturè 108,705) This page does not part of the stabjtory financial ststements Page 27 This page does not fom part of tho statutory financial statements Page 28