OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

Company no. 05326617 Charity no. 1116150

Wastesavers Charitable Trust Limited Report and Audited Financial Statements 31 March 2021

Wastesavers Charitable Trust Limited

Reference and administrative details

For the year ended 31 March 2021
Company number 05326617
Charity number 1116150
Registered office and Wastesavers Resource Centre
operational address Esperanto Way
Lliswerry
Newport
NP19 0RD
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
David Mayer Chair
Roger Ayres Vice Chair
William Langsford Treasurer
Len Casley
Mark Esposito
Caroline Wynn
Key management Penelope Goodwin Chief Executive Officer
personnel Ian Syms Head of Operations
Janet Jones Finance Manager and Company Secretary
Alun Harries Charity Manager
Phil Hurst Marketing and Development Officer
Leane Rowe HR Manager
Ian Pearce PEAK Co-ordinator
Kris Dowding Recycling Manager
Thomas Belcher Regional Manager
Bankers Lloyds TSB Bank
42 Commercial Street
Newport
NP20 1WS
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2021

The trustees present their report and the audited financial statements for the year ended 31 March 2021. Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 7 January 2005 and registered as a charity on 20 September 2006.

The organisation was established under a memorandum of association that established the objects and powers of the organisation and is governed under its articles of association.

The organisation looks to recruit new trustees with specific expertise who are able to support the objectives of the organisation. It does this by direct approach and general advertisement. Wastesavers inducts its trustees by encouraging them to spend time with each project the organisation is involved in to ensure they are fully aware of the activities it undertakes.

Training is available for trustees through WCVA, GAVO and ACEVO who provide a variety of courses for trustees throughout the year which are topical and informative. All trustees are encouraged to engage with at least one training session per year.

The Trustees and Executive Officers of the Company are listed on Page 1.

The Company comprises of six Trustees who are responsible for managing the affairs of the Company. Trustees are drawn from professional, Local Government, and local experience. The Trustees meet 11 times a year and consider risk management, development policy and strategy, monitoring the annual budget and the business plan and approving the annual financial statements. Trustees delegate the day-to-day management and implementation of the Company strategy and policy framework to the Officers of the Company.

No Trustees are remunerated over and above travel expenses. Wastesavers Charitable Trust owns the whole of Wastesavers Limited's share capital; 100 ordinary £1 shares.

The CEO is appointed by the Board of Trustees and is answerable to the Board on a monthly basis. Day to day organisational decision making is carried out by the CEO who also formulates strategic objectives in consultation with, and approved by, the Board of Trustees.

Wastesavers Charitable Trust looks to minimise risk to the organisation at all times. However, it is recognised that sometimes certain levels of risk are necessary for the organisation to progress. At all times risks are calculated before action is made, taking into account the organisation's vulnerability, consequences of inaction and potential benefits. All decisions on risk assessments are made at Board level. This is recorded in the Company’s risk register and reviewed at 6 monthly intervals or sooner if situation demands.

The Trustees are ultimately responsible for the Company’s system of internal financial control, which is designed to provide reasonable, but not absolute assurance regarding the safeguarding of assets, the maintenance of proper accounting records, the reliability of financial information and the management of risk.

2

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2021

The following mechanisms are used for effective internal financial control:

Wastesavers Charitable Trust is a member of CIWM, Reuse Network, ACEVO, GAVO and WCVA all of whom provide advice and guidance on the effective management of the charity and its operational undertakings.

Remuneration of key management personnel is brought to the attention of, and approved by, the Remuneration Committee which is made up of key members of the Board including the treasurer and chairman. When setting pay structures the local government NJC scales are considered along with industry benchmarking to ensure remuneration is appropriate and fair.

Objectives and activities

  1. The relief of poverty by the provision of renovated furniture and other household accessories for residents in necessitous circumstances in the South East Wales area.

  2. The advancement of education in respect of the environmental aspects of, and need for, recycling.

  3. The advancement of education in respect of vocational skills, numeracy and literacy skills and practical skills of benefit to the community (to the extent that such objects are exclusively charitable).

Wastesavers Charitable Trust operates projects in three broad areas that work to further the objectives of the Charity:

  1. Reuse - The Reuse Centre Newport, and Reuse Shops at HWRCs in Newport, Llantrisant, Treherbert, Maesteg and Pentrebach. These projects take items of furniture, IT and electrical items donated by the general public and from businesses and makes them available to the general public with discounts given to those on low income. It uses these items as a tool for social change and delivers social programmes to reduce social isolation, increase digital awareness and improve employability and runs a volunteering programme with positions available throughout the project. These projects employ 24 staff who work with 5-10 volunteers per day to deliver the projects' objectives. We served notice to Kier, in March 2021, that we would no longer operate the shop at Maesteg owing to its poor performance and under investment.

3

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2021

Wastesavers uses volunteers to support its paid staff to meet its objectives. This year 33 volunteers have contributed 1,323 hours, working to reuse and recycle furniture, IT and electrical equipment, preparing furniture for reuse and helped us divert household goods from landfill at the five recycling centres where we are based. Although we have an additional location the volunteering hours are much reduced as the shops located on the recycling centres have been closed for a significant part of the year because of Covid-19 restrictions.

They have however, still helped us divert almost 104 tonnes of reusable material from landfill into other people’s homes, but 567 tonnes less than the previous year due to the two Covid-19 lockdowns and the Autumn ‘firebreak’. This still has direct economic, social and environmental benefits and brings significant benefit to the local communities where we work, especially during the second lockdown where we were able to make donations to household and families in need, whilst on a skeleton staff.

  1. Education Project. Using a purpose-built education room at Wastesavers Resource Centre, Wastesavers works to educate primary school children about the importance of ‘reduce, reuse and recycle’. The lessons are planned to ensure all children are not only enthused by the project but are aware of its environmental benefits. The education project typically hosts between 6 and 12 visits per term from schools across South Wales but primarily from Newport.

Owing to COVID-19 restrictions the majority of regular attending schools did not make enquiries for the education room. This, together with the teaching staff being furloughed for some of the year and the education room being refurbished, meant the education room was not used this year.

  1. PEAK. Alternative education provision. Wastesavers works with schools, pupil referral units, the youth offending team, social services, and local authorities in South East Wales to take young people who are finding it difficult in mainstream education. The young people then work towards gaining basic/essential skills including plumbing, carpentry, bike repair, cookery, photography and Art and Design. This project employs 3 staff members and typically works with up to 12 young people per day delivering its objectives. Unfortunately owing to the Covid-19 restrictions PEAK has been closed for most of the year and its staff placed on furlough.

The charity also runs a trading arm, Wastesavers Limited, which delivers recycling services generating an income for the charity and furthering its aims and objectives. They occupy a building owned by the charity and pay it rent to cover the use of this space. From this location they deliver waste and recycling collection services to divert as much material from landfill as possible. Last year this equated to 22,123 tonnes of recyclables collected at the kerbside and an additional 1,120 tonnes of material brought in from commercial businesses and reprocessing commercially on site. Wastesavers Limited employs 75 members of staff and represent the largest proportion of income and expenditure for the group.

The charity measures its success by the quarterly collection and analysis of Key Performance Indicators at its Management Review Meetings and Board Meetings. These key indicators include tonnages diverted from landfill, number of students trained, the number of schools who visit the education room and the number of volunteer hours contributed. On an annual basis the charity also reviews the additional value that reusing furniture and IT gives to society and the numbers of lowincome families helped with the provision of low-cost furniture.

4

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2021

The charity is aware of and has reviewed the Charity Commission guidance on public benefit, in particular the legal requirements of charities working to relieve poverty and has taken it into account when reporting on the work the charity has done in the last 12 months to deliver its public benefit. This is covered throughout this report.

Acheivements and performance

The organisation has been maintained as an incorporated charity with shareholdings in Wastesavers Limited.

Last year we had the following objectives:

Because of the difficulties experienced during Covid-19 restrictions the Company has not been able to deliver against all these objectives and they remain a focus for the coming year.

Overview

This year has seen unprecedented circumstances as the organisation has had to contend with the impact the Covid-19 pandemic restrictions have had on its ability to operate and deliver services, whilst ensuring the safety of its staff as far as is possible.

Under extremely challenging circumstances and operating restrictions Wastesavers Limited delivered on its commitments under the Newport collection contract. Across the year an additional 2,719 tonnes of material has been collected as resident changing behaviours, during the pandemic restrictions, of on-line purchasing and the need to stay at home saw increases in several recycling material streams.

The Charity successfully opened a new reuse shop in Merthyr, only for it to shut after just 6 weeks of operations because of the pandemic. Work continued with the redevelopment of the old Co-op building in Chepstow Road, Maindee, although the programme was severely delayed because of Covid-19 and unforeseen construction issues. The Charity actually moved to the new premises in July 2021.

In spite of Covid-19, which has severely impacted the Charity and Wastesavers Limited, our challenges, developments and successes are covered below.

Of note is that the whole group maintained its ISO 9001, 14001 and 18001 standards.

5

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2021

Reuse

As the portfolio of reuse shops at HWRCs has continued to grow the Charity recruited a Regional Manager.

The Charity successfully opened a new reuse shop at Pentrebach, Merthyr in November 2020 employing one full time and two part time members of staff only to be closed shortly afterwards to comply with Covid-19 restrictions.

Staff at all reuse shops were placed on furlough for a significant part of the year and as a result income and tonnes diverted from landfill were greatly impacted.

We have been successful in our bid to run a reuse shop for Blaenau Gwent County Borough Council at its recycling centre at Roseheyworth, and Cardiff City Council still plan to open a reuse shop at one of their HWRCs and we anticipate both these sites will be opened next financial year subject to ongoing Covid-19 restrictions.

Plans for our move to the old Co-op building in Maindee were severely delayed but with the reopening of retail outlets permitted from April 2021 we finally moved to this new site in July 2021.

In this challenging year our reuse projects have still managed to divert 104 tonnes from landfill and since re-opening in April 2021 have continued to re-establish themselves in the communities they operate and look to return to their normal levels of business during the summer months of 2021.

PEAK

This has been another difficult year with PEAK being closed between April 2020 and August 2020. Flexi furlough was in place between September and October 2020 and January to March 2021, due to Covid-19 restrictions.

Covid-19 also affected numbers, with schools keeping pupils in ‘bubbles’ and not releasing them for alternative curriculum for most of the school year.

This year, because of COVID-19 restrictions we only offered carpentry and bicycle maintenance. We worked with 3 Torfaen pupils from 2 different schools and 11 Newport pupils from 3 different schools. A total of 392 contact days was made with the 14 pupils.

Education

Our education room forms a vital part of our work to help educate young people about recycling and how it can benefit communities and the environment. Our work to increase the size of the room ahead of the much awaited and long overdue redevelopment has again been delayed. Work to complete the upgrade will be completed in 2021-22.

Within the Charity’s trading arm, Wastesavers Limited, there are three projects. These are Kerbside Recycling, Commercial Recycling and Commercial Reprocessing. The challenges and successes of these projects are covered below.

6

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2021

Kerbside recycling

During the year we diverted 22,123 tonnes of recyclable materials through our kerbside recycling contract with Newport City Council (NCC), which represents a 14% increase on 2019-20. This further increase over last year, when NCC reduced their refuse bin capacity from 180L to 120L, is a result of changing behaviours of residents as periods of lockdown continued and resulted in changing purchasing behaviours. With everyone at home, the HWRCs closed, the pubs and shops closed and the switch to online shopping, our food waste, cardboard and glass tonnages increased dramatically. The largest increase being food waste which saw a 14% increase followed by cardboard with a 31% increase over last year. Increased pressure on paper quality and the inability to secondary sort at the depot has meant that a large volume of paper is being collected and processed in with the card, at a reduced income value.

During 2020/21 Covid-19 protection measures were introduced and are detailed in the Covid-19 section below.

As a result of the increased tonnages, all recycling round crews were increased to driver plus 2 loaders and the waste transfer station staff increased their hours from 8 hours per day to 10 hours per day to ensure that all materials could be processed.

The further tonnage increase has resulted in a greater demand for staff but unfortunately, we have been unable to recruit the staff we need and as such our reliance on agency staff has again increased. Work continues to reduce our current reliance on agency workers and the additional cost that it adds. However, as this report is written we have a further pressure on staff as Wastesavers and the whole country is having to deal with significant HGV driver shortages as a result of Covid-19 and Brexit. This is detailed in the section below - Driver Shortages

Commercial recycling and responsibility

This year Wastesavers Commercial Recycling Services were greatly impacted by the Covid-19 restrictions and lockdown measure implemented by Welsh Government. Many business including pubs and hospitality venues were closed for significant periods of time. This meant services were not required. During the year 694 tonnes of recycling were collected although this is down by 464 tonnes on last year.

26 tonnes were reprocessed for neighbouring local authorities an 86% decrease on 2019-20.

Covid-19

A series of lockdown measures continued throughout 2020/2021 to combat the spread of Covid-19. The effects this had on the company were far reaching but also vary different across the Charity and the Limited Company.

On 23rd March all Charity staff, apart from the Charity Manager, were furloughed and all six charity sites closed. The commercial recycling department started to see demands for their services drop as businesses closed, and as a result collection of donations reduced to just 2 days per week.

The kerbside department saw the tonnages being presented at the kerbside increase. Additional vehicles were ordered for rental and additional staff employed to cope with the rising volumes being seen. In addition to this office staff were sent home to work, reception was closed, and strict social distancing guidelines were imposed across our operational site.

7

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2021

The increase in staff to cope with the additional tonnage caught the attention of the HSE who were concerned that we were adding staff into the cab when we should be reducing them in order to adhere to social distancing guideline. The kerbside department had to introduce a range of methods to include staff following the collection vehicles in rented and private vehicles and the introduction of a bubble system.

These measures were tested to the maximum when an outbreak of Covid-19 hit the organisation resulting in mass testing, by the NHS, conducted on site. The testing revealed that 4 of the 74 tests conducted were positive resulting in a further 11 operatives having to isolate. Unfortunately, 2 of the positive tests were the yard manager and operations supervisor with the operations manager also being deemed a close contact to an operative. As a result, this left the Head of Operations to manage the service whilst the remaining management team isolated for 11 days. It was later revealed that Covid-19 had been brought onto site by three different sources and it was the management of social distancing and the bubble system that prevented a mass break out. The disruption to the collection service was contained to a 24-hour period.

All key operational staff across sites hold a virtual meeting daily to be kept abreast of developments.

Driver shortage

Brexit and the criteria required for non-UK residents to work in this country has resulted in over 50,000 driver vacancies in the UK. These vacancies coupled with the Covid-19 pandemic and isolation requirements has created a crisis within the haulage/driver sector. To combat this and to retain/attract drivers, organisations are increasing wages, paying retention bonuses and paying HGV training costs. So far throughout 2021 Wastesavers is working closely with NCC to pool driver resources to plug any gaps that may appear due to its own driver shortage and to maintain service delivery wherever possible.

Financial review

At the end of the reporting period 2020-21 the Charity, incorporating its limited trading arm is currently making a surplus of £135,016 however within this there is £251,342 Covid-19 hardship grants including furlough payments.

Income from the Kerbside Recycling service delivered for Newport residents and from selling recycled material from its kerbside and commercial recycling departments make up the largest proportion of overall income for the group. However, the kerbside project is run at cost price and therefore no profit is generated from this contract. The limited company does engage in profit making activities through its commercial recycling department and from commercial reprocessing. These projects, along with rent paid by the kerbside project for the charity owned building generated profits of £59K for the charity.

8

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2021

Wastesavers Limited; kerbside recycling, commercial recycling, and training

Income from sale of materials collected from kerbside and commercial recycling collections was £724K in 2020-21 down £270K from 2019-20 mainly because of falling prices in the reprocessing markets.

Both income and expenditure for the recycling departments were above last year’s figures mostly as a result of increased income from Newport Council as well as the additional receipt of Covid-19 payments received to implement WG protection measures. Total income was £4,775K compared to last year of £3,997K.

Wastesavers Charitable Trust Limited; reuse

During the year we opened an additional reuse shop at Pentrebach for Merthyr Tydfil Council, only to be shut shortly afterwards. These stores based on either HWRC’s or Council depots are known as Tip Shops, these five stores contributed only £71K this year compared to £382K in 2019-20, with the reuse centre contributing income of £107K compared to £182K last year.

PEAK

PEAK has seen a sharp decrease in its income this year from £84,571 in 2019-20 to £20,352 owing to closure during Covid restrictions.

Overall

Overall, the group made a surplus of £135k which included £481K capital grant funding for the development of the new Reuse Shop at Cheptstow Road, Maindee, Newport.

The charity has received Covid-19 relief funding, including job retention funding from the government during the Covid-19 pandemic which is subsiding wages within the charity. In 2019-20 this was £25K which further increased to £251K in 2020-21 as disruption and restrictions continued throughout the year. Our focus for 2021-22 will be returning to a level of operation for the charity and bringing staff back from furlough. It will be on stabilising our kerbside project after Covid-19, completing works and moving to the new reuse shop at Chepstow Road, whilst further expanding our reuse activities at HWRCs.

Fixed assets

In total the group’s fixed assets stand at £2.9m with £772K of this also held as liabilities relating to finance leases.

Our cash in the bank was at £1,837K at the end of the year mostly owing to profits for the year together with a decrease in debtors and a year-end increase in creditors.

In 2020-21 Covid-19 impacted every element of the organisation but it has weathered the crisis and all services have restarted throughout the early months of 2021-22.

Reserves policy

It is our policy to put aside the equivalent of three months wages for the group. This is currently set at £470,000 and is to cover costs associated with a cease of contract or problems with a restriction in cashflow. At year end there was a balance of £695,216 held in unrestricted net current assets.

9

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2021

Fundraising

Wastesavers does not carry out any fundraising activities and does not have any contracts with professional fundraisers.

Wastesavers is not a member of any voluntary fundraising schemes.

There are no fundraising activities to be monitored.

Wastesavers has had no complaints about fundraising as no fundraising activities were undertaken. There is however, a formal complaints procedure as part of its accredited and audited management system, which is regularly reviewed by the senior management team.

Wastesavers does not carry out any fundraising activities that would contravene GDPR regulations or would cause unreasonable intrusion into a person’s privacy, particularly those that are vulnerable. It does not use unreasonably persistent approaches or undue pressure to give as it does not carry out any fundraising activities.

Plans for future periods

2021-22 and the years that follow are likely to be difficult for the company as we deal with the continued impacts of Covid-19 and how it will continue to impact all services through the winter of 2021-22. We have yet to see whether the changes in type and volumes of waste being presented at the kerbside are permanent. However, our plans and ambitions are to work through these changes, to continue to deliver on our aims and objectives and seek to improve working conditions for staff. Specifically;

Going concern statement

The trustees therefore consider it appropriate to adopt the going concern basis for the preparation of the accounts, as detailed in note 1(c) to the financial statements.

10

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2021

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and the group and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the group and parent charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 18 November 2021 and signed on their behalf by

W Langsford

William Langsford, Treasurer

11

Independent auditors' report

To the members of

Wastesavers Charitable Trust Limited

Opinion

We have audited the financial statements of Wastesavers Charitable Trust Limited (the 'parent charity') and its subsidiary (the 'group') for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, consolidated and parent's balance sheets, consolidated statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the group and parent charity financial statements and our auditor’s report thereon. Our opinion on the group and parent charity financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

12

Independent auditors' report

To the members of

Wastesavers Charitable Trust Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charity and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

13

Independent auditors' report

To the members of

Wastesavers Charitable Trust Limited

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

▪Testing transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

14

Independent auditors' report

To the members of

Wastesavers Charitable Trust Limited

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 24 November 2021

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

15

Wastesavers Charitable Trust Limited

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Note
Income from:
Donations and legacies
3
Charitable activities
Reuse
4
Recycling
5
Education
6
Investments
Other income
Total income
Expenditure on:
Charitable activities
Reuse
Recycling
Education
Total expenditure
8
Net income / (expenditure)
Transfers between funds
Net movement in funds
9
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Restricted Unrestricted
£
£
-
256,381
591,145
210,091
56,824
4,360,957
-
20,352
-
226
-
-
647,969
4,848,007
74,696
408,298
410,378
4,386,497
-
81,091
485,074
4,875,886
162,895
(27,879)
(845)
845
162,050
(27,034)
3,077,130
867,011
3,239,180
839,977		 2021
Total
£
256,381
801,236
4,417,781
20,352
226
-
5,495,976
482,994
4,796,875
81,091
5,360,960
135,016
-
135,016
3,944,141
4,079,157		 2020
Total
£
26,595
534,692
3,946,129
85,271
1,233
7,906
4,601,826
512,189
4,015,949
85,042
4,613,180
(11,354)
-
(11,354)
3,955,495
3,944,141

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20 to the accounts.

16

Wastesavers Charitable Trust Limited

Consolidated balance sheets

As at 31 March 2021

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year 16
Net current assets
Total assets less current liabilities
17
Net assets
19
Funds
20
Restricted funds
Unrestricted funds
Total charity funds
Creditors: amounts falling due after more
than 1 year		 The group
2021
£
2,920,897
-
2,920,897
12,776
723,233
1,836,506
2,572,515
963,848
1,608,667
4,529,564
450,407
4,079,157
3,239,180
839,977
4,079,157		 The group The charity
2020
2021
£
£
3,239,161
671,824
-
100
3,239,161
671,924
10,419
12,776
1,171,521
35,682
969,356
1,078,937
2,151,296
1,127,395
810,747
263,840
1,340,549
863,555
4,579,710
1,535,479
635,569
-
3,944,141
1,535,479
3,077,130
1,211,251
867,011
324,228
3,944,141
1,535,479		 The charity
2020
£
402,454
100
402,554
10,419
52,867
723,000
786,286
102,711
683,575
1,086,129
-
1,086,129
695,647
390,482
1,086,129

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 18 November 2021 and signed on their behalf by

W Langsford

William Langsford - Treasurer

17

Wastesavers Charitable Trust Limited

Consolidated statement of cash flows

For the year ended 31 March 2021

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation
(Profit) / loss on the sale of fixed assets
Interest received
Interest paid
Decrease / (increase) in stock
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Interest received
Proceeds from the sale of property, plant and equipment
Payments for plant, property and equipment
Net cash provided by / (used in) investing activities
Cash flows from financing activities:
Payment of finance lease liabilities
Net cash provided in / (used in) financing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Analysis of changes in net debt:
£
£
Cash
969,356
(180,846)
180,846
(635,569)
-
152,941
1,047,996
Obligations under finance leases
within 1 year
Obligations under finance leases
after 1 year
Brought
forward
Cash
flows
867,150		 2021
£
135,016
635,348
-
(226)
29,542
(2,357)
448,289
148,785
1,394,397
226
-
(317,084)
(316,858)
(210,389)
(210,389)
867,150
969,356
1,836,506
£
-
(185,162)
185,162
-
Non-cash
movements		 2020
£
(11,354)
613,504
(7,906)
1,233
37,970
(3,869)
(588,274)
(141,203)
(99,899)
(1,233)
15,000
(773,643)
(759,876)
(227,530)
(227,530)
(1,087,305)
2,056,661
969,356
£
1,836,506
(185,162)
(450,407)
Carried
forward
1,200,937

18

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Wastesavers Charitable Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

b) Group accounts

These financial statements consolidate the results of the charitable company and its whollyowned (controlled) subsidiary, Wastesavers Limited, on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern. However, the COVID-19 pandemic has had a profound impact on the global economy, and had in turn affected the charity. The trustees have considered the impact of this issue on the charitable company’s current and future financial position.

Although Reuse and education services have been disrupted, the charity has utilised the government’s Job Retention Scheme Funding. This has allowed the charity to continue to pay staff 100% of salaries over the period of service closure. Whilst income from the Kerbside recycling service within the trading subsidiary has been largely unaffected, the suspension of Commercial Recycling Services throughout the pandemic has allowed the secondment of staff to assist with other projects thereby reducing costs to mitigate the loss in income.

As the charity holds unrestricted, general reserves of £324,228 (group: £839,977) and a cash balance of £1,078,937 (group: £1,836,506), the trustees consider that both the charity, and the group as a whole, have sufficient cash reserves to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.

d) Income

Income is recognised when the charitable company has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charitable company has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

19

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

d) Income (continued)

Income generated from the supply of goods or services is included in the statement of financial activities in the period in which the supply is made. Income received in advance of provision of reuse or training services is deferred until criteria for income recognition are met.

e) Donated goods for resale

Donated goods for resale are recognised as income at their fair value upon receipt, which is deemed to be the expected proceeds from sale less the expected costs of sale. Any difference in the resale value is charged or credited to the statement of financial activities during the year.

f) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the bank.

g) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charitable company. Designated funds are unrestricted funds of the charitable company which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charitable company's work or for specific projects being undertaken by the charitable company.

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities on the following basis:

vities on the following basis:
2021 2020
Reuse 12.4% 12.8%
Recycling 85.3% 84.4%
Education 2.3% 2.9%

20

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

j) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Land and buildings 25 years straight line Motor vehicles 5 and 7 years straight line Plant and machinery 7 years straight line Computer and office equipment 4 years straight line Leasehold land improvements 5 years straight line

Leasehold land is not depreciated.

Items of equipment are capitalised where the purchase price exceeds £10,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

k) Investment in subsidiary undertakings

The charitable company has one wholly owned subsidiary, Wastesavers Limited, (registered company number 03842840). The subsidiary is used for non-primary purpose trading activities. The subsidiary undertaking is valued at cost less any cumulative impairment losses in the charitable company's accounts.

l) Stock

Purchased stock is included at the lower of cost or net realisable value. Donated items of stock for resale are recognised at fair value which is the expected proceeds from sale less any expected costs of sale. A value for IT stock is brought into the accounts once the item is ready for sale either on-line or in the Reuse shop.

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

o) Creditors

Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

21

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

p) Financial instruments

The group and charitable company only have financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

q) Redundancy payments

Where an employee receives a termination benefit the full cost is recognised at the date the employee is notified.

r) Pension costs

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

s) Finance leases

Assets purchased under finance leases are capitalised as fixed assets. Obligations under such agreements are included in creditors. The difference between the capitalised cost and the total obligation under the lease represents the finance charge. Finance charges are written off to the statement of financial activities over the period of the lease so as to produce a constant periodic rate of charge on the remaining balance of the liability.

t) Critical accounting judgements and key sources of estimation or uncertainty

In the application of the group's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation or uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Depreciation

As described in note 1j to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

22

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

2. Prior period comparatives: statement of financial activities

Restricted
£
£
Income from:
Donations and legacies
-
26,595
Charitable activities
Reuse
(34,459)
569,151
Recycling
344,360
3,601,769
Education
-
85,271
Investments
-
1,233
Other income
-
7,906
Total income
309,901
4,291,925
Expenditure on:
Charitable activities
Reuse
5,129
507,060
Recycling
443,458
3,572,491
Education
1,152
83,890
Total expenditure
449,739
4,163,441
(139,838)
128,484
Donations and legacies
2021
Restricted Unrestricted
Total
£
£
£
Donations and gift aid
-
5,039
5,039
COVID grants (including CJRS)
-
251,342
251,342
-
256,381
256,381
Unrestricted
Net income / (expenditure) and net movement in
funds		 2020
Total
£
26,595
534,692
3,946,129
85,271
1,233
7,906
4,601,826
512,189
4,015,949
85,042
4,613,180
(11,354)
2020
Total
£
1,505
25,090
26,595

3. Donations and legacies

All donations and legacies received in the prior year were unrestricted.

23

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

4. Reuse

Grants - revenue
Grants - capital
Computer recycling
Furniture shop
Tip shops
Other income		 Restricted Unrestricted
£
£
110,000
21,508
481,145
-
-
59,051
-
48,409
-
70,522
-
10,601
591,145
210,091		 2021
Total
£
131,508
481,145
59,051
48,409
70,522
10,601
801,236		 2020
Total
£
(34,459)
-
88,126
94,339
381,986
4,700
534,692

Revenue grant income was restricted in the prior year. All other Reuse income was unrestricted.

5. Recycling

Material sales
Newport City Council:
Recycling payment
COVID funding
Grants - revenue
Grants - capital
Flats recycling
Commercial recycling income
Other income
Reimbursement for recycling
consumables		 Restricted Unrestricted
£
£
-
724,250
-
2,531,789
-
379,586
-
508,432
-
-
56,824
-
-
43,352
-
164,084
-
9,464
56,824
4,360,957		 2021
Total
£
724,250
2,531,789
379,586
508,432
-
56,824
43,352
164,084
9,464
4,417,781		 2020
Total
£
994,168
2,057,899
355,846
-
344,360
-
3,460
175,320
15,076
3,946,129

Capital grant income was restricted in the prior year. All other Recycling income was unrestricted.

6. Education

Student income
Other income		 Restricted
£
£
-
20,352
-
-
-
20,352
Unrestricted		 2021
Total
£
20,352
-
20,352		 2020
Total
£
84,571
700
85,271

All income from education in the prior period was unrestricted.

24

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

7. Government grants

25

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

8. Total expenditure

Total expenditure
Staff costs (note 10)
Other staff costs
Service delivery costs
Development and consultancy
Premises costs
Administrative costs
Insurance
Audit and accountancy
Bad debts
Interest and charges
Depreciation
Sub-total
Allocation of support and governance costs
Total expenditure		 Reuse
£
375,133
7,333
17,964
7,714
26,520
14,842
8,629
1,191
-
6,271
-
465,597
17,397
482,994		 Recycling
£
2,590,634
60,595
1,154,134
11,158
98,268
10,264
126,974
6,713
498
29,542
587,953
4,676,733
120,142
4,796,875		 Education
£
70,817
220
2,234
1,835
154
1,376
1,171
-
-
-
-
77,807
3,284
81,091		 Support and
governance
£
81,654
1,089
240
2,141
-
612
1,379
6,313
-
-
47,395
140,823
(140,823)
-		 2021 Total
£
3,118,238
69,237
1,174,572
22,848
124,942
27,094
138,153
14,217
498
35,813
635,348
5,360,960
-
5,360,960

Total governance costs were £12,850.

26

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

8. Total expenditure (continued) Prior period comparative

Total expenditure (continued)
Prior period comparative
Staff costs (note 10)
Other staff costs
Service delivery costs
Development and consultancy
Premises costs
Administrative costs
Insurance
Audit and accountancy
Bad debts
Interest and charges
Depreciation
Sub-total
Allocation of support and governance costs
Total expenditure		 Reuse
£
320,744
22,569
73,371
19,751
25,697
18,633
5,665
2,541
-
6,856
-
495,827
16,362
512,189		 Recycling
£
2,118,066
61,151
840,307
3,431
87,088
65,997
119,083
7,206
39
37,970
567,564
3,907,902
108,047
4,015,949		 Education
£
71,921
720
3,581
116
115
1,714
3,206
-
-
-
-
81,373
3,669
85,042		 Support and
governance
£
71,656
1,890
161
1,485
26
216
411
6,293
-
-
45,940
128,078
(128,078)
-		 2020 Total
£
2,582,387
86,330
917,420
24,783
112,926
86,560
128,365
16,040
39
44,826
613,504
4,613,180
-
4,613,180

Total governance costs were £12,460

27

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

9. Net movement in funds

This is stated after charging / (crediting):

Net movement in funds
This is stated after charging / (crediting):
2021 2020
£ £
Interest payable 29,542 37,970
Depreciation
▪Owned assets 272,023 243,276
▪Leased assets 363,325 370,228
(Profit) / loss on the sale of fixed assets Nil (7,906)
Trustees' remuneration Nil Nil
Trustees' reimbursed expenses Nil Nil
Auditors' remuneration:
▪Statutory audit 12,850 12,460
▪Other services Nil 225

Trustees were not reimbursed expenses during the year (2020: nil).

10. Staff costs and numbers

Staff costs for the group were as follows:

Salaries and wages
Social security costs
Pension contributions
Agency staff		 2021
£
1,995,123
151,007
130,897
841,211
3,118,238		 2020
£
1,923,682
144,403
130,910
383,392
2,582,387

No employee earned more than £60,000 during the year.

The key management personnel of the group comprise the Chief Executive Officer, Finance Manager, Recycling and Health and Safety Manager, HR Manager, Marketing and Development Officer, Regional Manager who are employed by Wastesavers Limited, and the PEAK Coordinator, Charity Manager and Volunteer and Reuse Manager who are employed by Wastesavers Charitable Trust Limited. The total employee benefits of the key management personnel of the group, including employers' national insurance, were £300,963 (2020: £282,972).

Average head count 2021
No.
100		 2020
No.
102

28

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

11. Tangible fixed assets

The group
Cost
At 1 April 2020
Additions in year
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 £
-
316,765
316,765
-
-
-
316,765
-
Assets under
construction		 Land and
buildings
£
1,617,552
-
1,617,552
1,258,462
40,151
1,298,613
318,939
359,090		 Leasehold
land
£
121,281
-
121,281
-
-
-
121,281
121,281		 Plant and
machinery
£
917,211
-
917,211
370,619
109,328
479,947
437,264
546,592		 Motor
vehicles
£
3,466,261
319
3,466,580
1,770,951
458,137
2,229,088
1,237,492
1,695,310		 Office
equipment
£
27,564
-
27,564
19,187
3,876
23,063
4,501
8,377		 £
614,498
-
614,498
105,987
23,856
129,843
484,655
508,511
Leasehold
improvements		 Total
£
6,764,367
317,084
7,081,451
3,525,206
635,348
4,160,554
2,920,897
3,239,161

Included within the net book value is £771,789 (2020: £1,135,100) relating to assets held under finance leases. The depreciation charged to the statement of financial activities in respect of these assets was £363,325 (2020: £370,228).

29

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

11. Tangible fixed assets (continued)

Tangible fixed assets (continued)
The charity
Cost
At 1 April 2020
Additions in year
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 £
-
316,765
316,765
-
-
-
316,765
-
Assets under
construction		 Land and
buildings
£
1,617,552
-
1,617,552
1,258,461
40,151
1,298,612
318,940
359,091		 Plant and
machinery
£
1,898
-
1,898
1,698
200
1,898
-
200		 Motor
vehicles
£
49,310
-
49,310
6,147
7,044
13,191
36,119
43,163		 £
10,557
-
10,557
10,557
-
10,557
-
-
Leasehold
improvements		 Total
£
1,679,317
316,765
1,996,082
1,276,863
47,395
1,324,258
671,824
402,454

30

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

12. Subsidiary undertakings

Wastesavers Limited

The charitable company owns the whole of the issued share capital (100 ordinary £1 shares) of Wastesavers Limited, a company registered in England and Wales. The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are donated to the charitable company. A summary of the results of the subsidiary is shown below:

Turnover
Cost of sales
Gross profit
Administrative expenses
Operating profit
Interest receivable
Interest payable
Profit on ordinary activities
Corporation tax
Profit for financial year
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 2021
£
4,774,531
(634,759)
4,139,772
(4,071,107)
68,665
101
(29,542)
39,224
-
39,224
2021
£
3,695,890
(3,180,032)
515,858		 2020
£
3,997,120
(431,453)
3,565,667
(3,498,504)
67,163
726
(37,970)
29,919
-
29,919
2020
£
4,208,990
(3,732,356)
476,634

13. Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

Gross income
Results for the year		 2021
£
1,133,573
449,350		 2020
£
707,093
1,812

31

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

14. Stock
2021
2020
£
£
Donated goods for resale
12,776
10,419
15. Debtors
2021
2020
£
£
Trade debtors
336,641
790,630
Prepayments
46,574
21,999
Accrued income
340,018
358,892
Amounts owed from subsidiary
-
-
VAT
-
-
723,233
1,171,521
16. Creditors: amounts due within 1 year
2021
2020
£
£
Trade creditors
174,344
249,350
Other taxation and social security
289,387
186,357
Accruals
219,011
72,134
Other creditors
38,885
39,411
Deferred income (see note 22)
57,059
82,649
Obligations under finance leases
185,162
180,846
963,848
810,747
17. Creditors: amounts due after 1 year
2021
2020
£
£
Obligations under finance leases
450,407
635,569
The group
The group
The group
The group		 2021
2020
£
£
12,776
10,419
2021
2020
£
£
15,276
16,960
116
2,050
18,602
26,589
1,688
3,380
-
3,888
35,682
52,867
2021
2020
£
£
4,665
57,511
99,187
5,974
157,279
36,883
2,709
2,343
-
-
-
-
263,840
102,711
2021
2020
£
£
-
-
The charity
The charity
The charity
The charity

32

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

18. Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charitable company's trading subsidiary, Wastesavers Limited, donates available profits to the charitable company. Any taxable profits retained in the subsidiary company are chargeable to corporation tax.

19. Analysis of net assets between funds

Analysis of net assets between funds
Tangible fixed assets
Current assets
Creditors: amounts falling due within 1 year
Creditors: amounts falling due after more than 1 year
Net assets at 31 March 2021
Prior period comparative
Tangible fixed assets
Current assets
Creditors: amounts falling due within 1 year
Creditors: amounts falling due after more than 1 year
Net assets at 31 March 2020		 £
2,325,729
913,451
-
-
3,239,180
£
2,415,722
661,408
-
-
3,077,130
Restricted
funds
Restricted
funds		 £
595,168
1,659,064
(963,848)
(450,407)
839,977
£
823,439
1,489,888
(810,747)
(635,569)
867,011
Unrestricted
funds
Unrestricted
funds		 Total
funds
£
2,920,897
2,572,515
(963,848)
(450,407)
4,079,157
Total
funds
£
3,239,161
2,151,296
(810,747)
(635,569)
3,944,141

33

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

20. Movements in funds

Restricted funds
WEFO (EDRF Obj 2)
Welsh Assembly
Cardiff City Council
Newport City Council
Rhondda Cynon Taf Council
Leasehold land (NCC)
NCC flats recycling
Wastesavers Ltd capital fund
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1 April
2020
£
171,070
188,022
47,700
288,855
-
121,281
324,853
1,935,349
3,077,130
867,011
867,011
3,944,141		 Income
£
-
-
-
481,145
110,000
-
-
56,824
647,969
4,848,007
4,848,007
5,495,976		 £
(21,513)
(18,638)
-
(34,545)
-
-
(25,173)
(385,205)
(485,074)
(4,875,886)
(4,875,886)
(5,360,960)
Expenditure		 £
£
-
149,557
-
169,384
-
47,700
(845)
734,610
-
110,000
-
121,281
-
299,680
-
1,606,968
(845)
3,239,180
845
839,977
845
839,977
-
4,079,157
At 31 March
2021
Transfers
between
funds		 £
£
-
149,557
-
169,384
-
47,700
(845)
734,610
-
110,000
-
121,281
-
299,680
-
1,606,968
(845)
3,239,180
845
839,977
845
839,977
-
4,079,157
At 31 March
2021
Transfers
between
funds
3,239,180
839,977
839,977
4,079,157

Purposes of restricted funds

WEFO and Welsh Assembly funds

The WEFO and Welsh Assembly funds are capital restricted funds representing the Wastesavers Resource Centre. The funds will be reduced each year by the annual depreciation charge of the related fixed assets, along with any impairment losses incurred.

Cardiff City Council

An award of funding in relation to improving reuse infrastructure in Cardiff.

Newport City Council

An award of funding in relation to improving reuse infrastructure in Newport.

Rhondda Cynon Taf Council

An award of funding in relation to improving reuse infrastructure in Aberdare.

Leasehold land

A grant was received from the Welsh Government to enable Wastesavers Ltd to purchase a plot of leasehold land adjoining the current property.

34

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

20. Movements in funds (continued)

NCC flats recycling

Circular economy funding towards the purchase of flats recycling bins, caddies and liners within Wastesavers Limited. Note that this fund has been renamed from 'NCC recycling consumables'.

Wastesavers Ltd capital fund

The Wastesavers Ltd capital fund represents assets purchased and to be purchased with capital grants in the subsidiary company. The fund will be reduced each year by the annual depreciation charge of the related fixed assets. In the financial statement of Wastesavers Limited, these capital grants have been treated as deferred capital income. Adjustments were made on consolidation to bring the accounting treatment for capital grants into line with Wastesavers Charitable Trust Limited's accounting policies.

Prior year comparative:
Restricted funds
WEFO (EDRF Obj 2)
Welsh Assembly
WCVA Active Inclusion
Welsh Government: COLCP
Cardiff City Council
Newport City Council
Leasehold land (NCC)
NCC flats recycling
Wastesavers Ltd capital fund
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1 April
2019
£
192,584
206,660
-
3,160
90,000
300,000
121,281
-
2,303,283
3,216,968
738,527
738,527
3,955,495		 Income
£
-
-
7,841
-
(42,300)
-
-
344,360
-
309,901
4,291,925
4,291,925
4,601,826		 £
(21,514)
(18,638)
(7,841)
(3,160)
-
(11,145)
-
(19,507)
(367,934)
(449,739)
(4,163,441)
(4,163,441)
(4,613,180)
Expenditure		 £
£
-
171,070
-
188,022
-
-
-
-
-
47,700
-
288,855
-
121,281
-
324,853
-
1,935,349
-
3,077,130
-
867,011
-
867,011
-
3,944,141
Transfers
between
funds
At 31 March
2020		 £
£
-
171,070
-
188,022
-
-
-
-
-
47,700
-
288,855
-
121,281
-
324,853
-
1,935,349
-
3,077,130
-
867,011
-
867,011
-
3,944,141
Transfers
between
funds
At 31 March
2020
3,077,130
867,011
867,011
3,944,141

35

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

21. Finance lease commitments

The group had finance leases at the year end with total future minimum lease payments as follows:

Amount falling due:
Within 1 year
Within 1 - 5 years		 2021
£
206,959
471,892
678,851		 2020
£
210,388
678,851
889,239

All finance leases are held by Wastesavers Limited. The charity has no finance leases in its own name, but does act as guarantor for the leases held by Wastesavers Limited.

22. Deferred income

At 1 April 2020
Amounts deferred during the year
Amounts released during the year
At 31 March 2021		 2021
2020
£
£
82,649
62,679
57,059
82,649
(82,649)
(62,679)
57,059
82,649
The group		 2021
2020
£
£
-
-
-
-
-
-
-
-
The charity		 2021
2020
£
£
-
-
-
-
-
-
-
-
The charity
-

The Commercial Recycling Service invoices in advance of service delivery. As the group is not entitled to the income until the services are delivered, the income is deferred within the group accounts.

23. Related party transactions Wastesavers Limited

Wastesavers Limited is a wholly owned subsidiary of Wastesavers Charitable Trust Limited. During the year Wastesavers Limited paid the following amounts to Wastesavers Charitable Trust Limited:

Rent
Management fee		 2021
£
47,220
11,454
58,674		 2020
£
46,296
13,731
60,027

36

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2021

23. Related party transactions (continued) Newport City Council

David Mayer, a trustee of Wastesavers Charitable Trust Limited, is also a Councillor of Newport City Council. During the year Wastesavers Limited purchased materials totalling £634,759 (2020: £431,453) and received a total of £3,423,002 (2020: £2,434,653), from Newport City Council. This included the following amounts:

Recycling payment
Recycling consumables
Emergency funding		 2021
2020
£
£
2,531,789
2,057,899
382,781
376,754
508,432
-
3,423,002
2,434,653

A-Print and Design Limited

Roger Ayres, a trustee of Wastesavers Charitable Trust Limited, is also director of a printing company called A-Print and Design Limited. During the year Wastesavers Charitable Trust Limited (group) purchased printing supplies totalling £685 (2020: £865) from A-Print and Design Limited. The outstanding balance at 31 March 2021 was £Nil (2020: Nil).

24. Capital commitments

At 31 March 2021, capital expenditure commitments were as follows:

Contracted but not provided for in the accounts:
Reuse Centre building works		 2021
£
439,640
439,640		 2020
£
-
-

37