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2023-03-31-accounts

Company no. 05326617 Charity no. 1116150

Wastesavers Charitable Trust Limited Report and Audited Financial Statements 31 March 2023

Wastesavers Charitable Trust Limited

Reference and administrative details

For theyear ended 31 March 2023
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
Darryl Morgan appointed 15 June 2023
Nicola Peake appointed 5 April 2023
Sue Price appointed 15 June 2023
Key management Penelope Goodwin Chief Executive Officer
personnel Alun Harries Charity Manager
Janet Jones Strategic Finance Manager
Rafia Qureshi Operational Finance Manager
Ian Syms Recycling and Health & Safety 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 2023

The trustees present their report and the audited financial statements for the year ended 31 March 2023. 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 trustees with suitable expertise and diverse experience who are able to support the objectives of the organisation. It does this by direct approach, targeted advertising and general social media posts. Wastesavers has recently revamped its recruitment policy and instigated a rigorous selection process to more closely, where possible, align itself to its increased geographic footprint and produce a more diverse board. This has proved to be very successful with three new board members have been appointed during 2023/24. There have been no resignations from the board.

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. In addition, at least one Trustee is supported with a place at the annual Reuse Conference to deepen their understanding of the industry and their counterparts across the environmental landscape.

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

The Company comprises of nine Trustees who are responsible for managing the affairs of the Company. Trustees are drawn from diverse professional backgrounds and many have significant board experience and extensive local and regional experience. The Trustees meet 11 times a year and consider risk management, development policy and strategy, the annual budget and the business plan and approve 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 via the Chief Executive Officer.

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.

2

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2023

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.

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).

3

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2023

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

  1. Reuse. Our flagship Reuse Centre in Maindee, Newport, and Reuse Shops at HWRCs in Newport, Llantrisant, Treherbert, Aberdare, Pentrebach, Roseheyworth, Cardiff, New Inn and Caerphilly. These projects take a variety of household items donated by the general public and business including furniture, IT, electrical items and general bric and brac and makes them available to the general public at affordable prices. We deliver social programmes to reduce social isolation, increase digital awareness and improve employability as well as delivering a comprehensive volunteering programme to support people in gaining additional skills and experiences and to facilitate social interaction. We also run the first Nappy Library in Wales with a paid staff member, ensuring we prioritise reuse over disposal and repair cafes in Newport and Pontypool.

  2. 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.

  3. PEAK. Alternative education provision. Wastesavers works with schools, pupil referral units, the youth offending team, social services, and local authorities in South East Wales, specifically Newport and Torfaen, 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.

The charity also runs a trading arm, Wastesavers Limited. Wastesavers Limited delivers three key services which generates 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.

  1. Kerbside Recycling services for the city of Newport. They hold a contract to deliver the kerbside recycling service including collection and reprocessing source segregated recyclate from all 74,000 houses and flats in Newport. This contract expires in on 31 March 2026.

  2. Commercial Recycling Services for Newport, Cardiff, Monmouthshire and Torfaen, collecting source segregated recycling from businesses using wheeled bins and reusable sacks.

  3. Commercial Reprocessing Services – providing reprocessing services to local authorities and businesses in the local area on an ad hoc basis.

Last year this equated to 18,828 tonnes of recyclables collected at the kerbside and an additional 1,539 tonnes of material brought in from commercial businesses and reprocessing commercially on site.

4

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2023

Wastesavers Limited employs 70 members of staff and represent the largest proportion of income and expenditure for the group.

The charity measures its success by the collection and analysis of Key Performance Indicators at its Management Review Meetings, Board Meetings and contract 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. Health and safety and environmental performance are also monitored and reported against.

On an annual basis the charity also reviews the additional value that reusing furniture and IT gives to society and the numbers of low-income families helped with the provision of low-cost furniture.

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. 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:

This year we achieved all but one of our objectives. The Education Room is still yet to be launched as the project has grown and changed over its lifespan but we remain confident that installation and launch will take place in 2023-24 financial year.

Overview

This year the organisation has been through another period of growth and change with the opening of the Penallta Reuse Shop, The Shed in Aberdare, the launch of the Nappy Library, together with the opening of the Newport and Torfaen Repair Cafés. The commercial recycling department has continued to grow and we anticipate further growth as Welsh Government requirements are rolled out. We managed a change in container collection from a blue box to a blue bag to improve the quality of the cardboard collected, separate glass collection and provide additional capacity for residents ahead of the councils plan to go three weekly with household refuse.

Despite significant change and new projects across the business we maintained our ISO 9001, 14001 and 45001 standards.

5

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2023

We also saw some changes in key personnel with the recruitment of a new Operational Finance Manager due to the growth of the business and a new Marketing Officer following the retirement of the previous Marketing and PR Officer.

Reuse

In September we opened the Penallta Reuse Shop next to the HWRC in Penallta. It represents a tremendous opportunity with a significant amount of retail space along with a large parking area and offers the opportunity for us to work with other agencies to deliver volunteering placements, upcycle and provide meeting space and a warm hub for the wider community.

The Shed in Aberdare also opened in September. This was a different type of space to Penallta being based in the town centre with a community space above. This has been well received by the community and is meeting business projections.

In the summer 2022 we opened repair cafes in Newport and Torfaen. We also opened a new Nappy Library based at the reuse centre. This aims to advise and support people on their journey using reusable nappies. Since its launch it has supported 23 families to make the switch to reusables saving 4,000 disposable nappies from disposal per month.

In total we employed 52 staff, an increase of 15 people on our 2021-22 employment figures. We also worked with 121 volunteers who contributed 14,694 hours, working to reuse and recycle furniture, IT, electrical equipment and household bric-a-brac and helping us to divert a massive 1064 tonnes of reusable items from landfill (621T 2021-22). This is a labour value of £153,111.48 at minimum wage!

PEAK

This represents the first full year for PEAK post covid without any support funding, and it has been a successful one. We initially planned to reduce the number of working days from 5 to 3 due to costs and lack of demand but this spurred a number of concerns from schools and PRU’s who bulk booked a number of days throughout the year. This enabled us to remain open 5 days a week and helped annual planning. As a result we have engaged with 39 students 26 from Newport and 13 from Torfaen.

Education

The long overdue redevelopment of the education room moved forward this year with installation scheduled for completion during 2023-2024 financial year. Delays due to Covid and the rising scale of the works has pushed our launch timeframe from 2022 to 2023. Additional works to the corridor and reception area will also be incorporated into this project.

Kerbside recycling

During the year our kerbside recycling service diverted 18,828 tonnes of recyclable material from disposal. This was 7.7% lower than 2021-22 as we normalised after Covid.

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Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2023

Material prices were strong this year due to the buoyant market for plastic and aluminium which resulted in a 25% increase in income from material sales in 2021-22. This was as a result in the rising energy prices seen across Europe. Commodity market pricing however can be extremely volatile and the business can see significant price swings as global influences affect the price we receive on our recycling.

The effects of Covid on the workplace have largely disappeared with HSE advising best practice to isolate if symptoms are present and to practice social distancing in the workplace. Wastesavers still has hand sanitiser available for all staff and recommend staff stay at home if they are sick, but all other measures have been scaled back.

Our focus this year was on improving the quality of the cardboard we collect at the kerbside by asking residents to change the way it was presented. Once this was approved in the third quarter of the year, we planned and prepared for this change (to be implemented in 2023-24) which included the purchase of 90,000 90L blue bags to be delivered to residents to separate their cardboard from glass. As a consequence our spend on containers is £180K more than the previous period but this should reduce in future years due to the cost difference between bags and boxes/lids. This additional capacity also helped us prepare for the incoming change to three weekly collections that the council is planning in 2023-24. Due to the lead time on vehicles we placed an order for 4 vehicles; 2 narrow access and 2 electric Terberg’s in preparation for this change.

Commercial recycling and responsibility

This year we returned to income levels achieved in 2019-20. Covid caused many businesses to close; some temporarily and some permanently which has affected the income generated, but this has sprung back this period and we are now seeing our financial performance match that seen before the pandemic, which is more than £30k above last financial year's income figure. In addition to this we collected 1,539 tonnes compared to 1,468 in 2021-22 which represents a 4.8% increase.

Financial review

Income from the Kerbside Recycling service delivered for Newport residents and from selling collected 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 with Newport City Council. The limited company does engage in profit making activities through its commercial recycling department and from commercial reprocessing. These projects generated profits of £74k for the charity.

Wastesavers Limited; kerbside recycling, commercial recycling, and training

Income from sale of materials collected from kerbside and commercial recycling collections was £1,443k in 2022-23 up £295k from 2021-22 due to increase in value of aluminium and plastic as a result of the energy crisis.

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Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2023

Income from Newport City Council was also higher at £2,643k against last years’ £2,201k. However it is important to note that last year we also received £405k in Covid funding, bringing overall spend on the kerbside project to a similar level. We achieved wage parity with the local authority which, when combined with the increase in staff brought total staff costs from £2,640k in 2021/22 to £2,983k in 2022/23 an increase of 13% (£342k), with £154k of this additional spend coming from agency costs as we struggled to recruit HGV drivers in a difficult market. Service delivery costs were also higher than the previous period by £256k caused by the ageing fleet, plant and building all contributing to this additional spend however this was offset by the increase in material income. Steps are being taken to replace end of life vehicles and equipment to prevent unbudgeted costs.

Wastesavers Charitable Trust Limited; reuse

During 2022-23 we opened two additional reuse shops at Penallta, Caerphilly and Aberdare high street, Rhondda Cynon Taff. We also opened repair cafes in Pontypool Market and at the Newport Reuse centre, as well starting the Newport Nappy Library. Funding of £39,307 was received during this period for these projects as well as residual funding of £128K which was received in the previous period and drawn down for the above during this financial year to offset wages.

In total the reuse shops generated income of £857k in 2022-23 compared to £449k in 2021-22; a 90% increase. This is in part due to bounce back from covid as we had a full year trading without restrictions and in part company growth.

IT recycling and reuse also saw growth of 32% from £84k in 2021-22 to £110k in 2022-23, however the Newport Reuse Centre saw their growth stagnate with a drop in income of -2% (£131k to £128k).

PEAK

Student income from PEAK improved again from £41k in 2021-22 to £87k in 2022-23 – more than double. This is above the £85k generated in 2019-20 before Covid closed schools.

Overall

At the end of the reporting period 2022-23 the Gross results for the Charity were £33,028. This is made up from a profit for the financial year from the trading company of £73,673 (£58,175 2021-22), and a loss in the Charity of -£40,645 (£73,193 profit 2021-22).

The overall deficit of -£531,068 for the Group is due to the accounting treatment of restricted capital grant income, which was fully recognised in the Charity/Group figures in previous financial years, and for which relating expenditure continues. However, in the trading company, income funding the purchase of capital assets is recognised over the life of that asset. Other points to note are as follows:

Fixed assets

In total the group’s tangible fixed assets stand at £2,160k (£2,781k 2021-22) with £1,181k (£754k 2021-22) liabilities due within 12 months. During this time our finance lease commitments have dropped by 64% to £287k representing the age of fleet and end of finance arrangements.

Our cash or cash equivalents was £1,142k 2022-23 (£1,208k 2021-22) at the end of the year, a reduction of £66k on the prior period due to the opening of the additional shops and projects as outlined.

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Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2023

Debt

Creditors have increased from £754k (2021-22) to £1,181k (56% increase) with debtors up from £742k to £1,134k (52% increase). This is due to the purchase of boxes and bags on behalf of the council, with income owed from the council for these purchases outstanding at the end of the financial year, and suppliers waiting to be paid. This was rectified in the first quarter of 2023-24.

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 £410,495 (£373,340 2021-22) held in unrestricted net current assets an increase of £37,155 on 2021-22.

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

2022-23 was a full year of covid recovery with positive outcomes seen across the group. 2023-24 is set to be a year of consolidation ahead of more growth planned for 2024-25.

Our plans remain ambitious with developments across the group to consolidate our market offer ahead of future growth and to deliver on our aims and objectives. Specifically;

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Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2023

Going concern statement

The trustees consider that the charity will continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved for the following reasons:

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.

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.

10

Wastesavers Charitable Trust Limited

Report of the trustees

For the year ended 31 March 2023

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 28 September 2023 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 2023 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.

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: 28 September 2023

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

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Wastesavers Charitable Trust Limited

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

For the year ended 31 March 2023

Note
Income from:
Donations and legacies
3
Charitable activities
Reuse
4
Recycling
5
Education
6
Investments
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
£
£
19,000
7,236
(5,451)
1,106,856
-
4,801,904
-
86,960
-
1,625
13,549
6,004,581
245,462
834,521
564,095
4,810,028
-
95,092
809,557
5,739,641
(796,008)
264,940
(36,125)
36,125
(832,133)
301,065
2,797,723
947,274
1,965,590
1,248,339		 2023
Total
£
26,236
1,101,405
4,801,904
86,960
1,625
6,018,130
1,079,983
5,374,123
95,092
6,549,198
(531,068)
-
(531,068)
3,744,997
3,213,929		 2022
Total
£
93,779
819,084
4,267,801
41,332
95
5,222,091
724,397
4,750,111
81,743
5,556,251
(334,160)
-
(334,160)
4,079,157
3,744,997

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 2023

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
2023
£
2,160,242
-
2,160,242
32,298
1,133,992
1,142,424
2,308,714
1,181,355
1,127,359
3,287,601
73,672
3,213,929
1,965,590
1,248,339
3,213,929		 The group The charity
2022
2023
£
£
2,780,910
1,002,987
-
100
2,780,910
1,003,087
25,580
32,298
741,852
40,270
1,208,008
687,475
1,975,440
760,043
753,831
195,103
1,221,609
564,940
4,002,519
1,568,027
257,522
-
3,744,997
1,568,027
2,797,723
967,294
947,274
600,733
3,744,997
1,568,027		 The charity
2022
£
1,044,323
100
1,044,423
25,580
46,676
534,301
606,557
42,308
564,249
1,608,672
-
1,608,672
1,235,332
373,340
1,608,672

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 28 September 2023 and signed on their behalf by

W Langsford

William Langsford - Treasurer

17

Wastesavers Charitable Trust Limited

Consolidated statement of cash flows

Consolidated statement of cash flows
For theyear ended 31 March 2023
Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation
Profit on the sale of fixed assets
Interest received
Interest paid
Increase in stock
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 used in investing activities
Cash flows from financing activities:
Payment of finance lease liabilities
Net cash used in financing activities
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Decrease in cash and cash equivalents in the year		 2023
£
(531,068)
656,571
(5,196)
(1,625)
14,075
(6,718)
(392,140)
436,559
170,458
1,625
5,417
(36,124)
(29,082)
(206,960)
(206,960)
(65,584)
1,208,008
1,142,424		 2022
£
(334,160)
646,223
(2,200)
(95)
21,798
(12,804)
(18,619)
(217,740)
82,403
95
2,200
(506,236)
(503,941)
(206,960)
(206,960)
(628,498)
1,836,506
1,208,008

18

Wastesavers Charitable Trust Limited

Consolidated statement of cash flows

For the year ended 31 March 2023

Analysis of changes in net debt:

Analysis of changes in net debt:
£
Cash
1,208,008
(192,885)
(257,522)
757,601
Obligations
under
finance leases after 1
year
Brought
forward
Obligations under
finance leases within
1 year		 £
(65,584)
192,884
-
127,300
Cash
flows		 £
-
-
-
-
New loans		 £
-
(183,850)
183,850
-
Non-cash
movements		 £
1,142,424
(183,851)
(73,672)
Carried
forward
884,901

19

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

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, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

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.

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.

20

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies (continued)

f) Interest receivable

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:
2023 2022
Reuse 19.5% 16.3%
Recycling 78.5% 81.5%
Education 2.0% 2.2%

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.

21

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies (continued)

j) Tangible fixed assets (continued)

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. Tip shop stock is not included at stock at the year end as it is not practicable to value it until the point of sale.

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.

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 except for 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.

22

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies (continued)

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.

23

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

2. Prior period comparatives: statement of financial activities

2022
Restricted Unrestricted Total
£ £ £
Income from:
Donations and legacies 32,000 61,779 93,779
Charitable activities
Reuse 99,503 719,581 819,084
Recycling 7,931 4,259,870 4,267,801
Education - 41,332 41,332
Investments - 95 95
Total income 139,434 5,082,657 5,222,091
Expenditure on:
Charitable activities
Reuse 107,422 616,975 724,397
Recycling 473,469 4,276,642 4,750,111
Education - 81,743 81,743
Total expenditure 580,891 4,975,360 5,556,251
Net income / (expenditure) and movement in funds (441,457) 107,297 (334,160)
3. Donations and legacies
Donations and legacies
2023
Restricted Unrestricted Total
£ £ £
Donations and gift aid 19,000 6,295 25,295
Kickstart grant - 941 941
19,000 7,236 26,236
Prior year comparative 2022
Restricted Unrestricted Total
£ £ £
Donations and gift aid - 6,970 6,970
COVID grants (including CJRS) - 20,347 20,347
Kickstart grant - 25,949 25,949
Other grants 32,000 8,513 40,513
32,000 61,779 93,779

24

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

4. Reuse

Reuse
Grants - revenue
Grants repayable to funder
Computer recycling
Furniture shop
Tip shops
Other income		 Unrestricted
£
£
39,307
-
(44,758)
-
-
110,076
-
127,868
-
856,827
-
12,085
(5,451)
1,106,856
Restricted		 2023
Total
£
39,307
(44,758)
110,076
127,868
856,827
12,085
1,101,405
Prior period comparative
Grants - revenue
Computer recycling
Furniture shop
Tip shops
Other income		 Unrestricted
£
£
99,503
28,491
-
83,653
-
131,168
-
448,694
-
27,575
99,503
719,581
Restricted		 2022
Total
£
127,994
83,653
131,168
448,694
27,575
819,084

5. Recycling

Recycling
Material sales
Newport City Council:
Recycling payment
Flats recycling
Commercial recycling income
Other income
Reimbursement for recycling
consumables		 Restricted
Unrestricted
£
£
-
1,443,290
-
2,642,978
-
520,516
-
15,173
-
170,500
-
9,447
-
4,801,904		 2023
Total
£
1,443,290
2,642,978
520,516
15,173
170,500
9,447
4,801,904

25

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

5.
Recycling (continued)
Prior period comparative
Material sales
Newport City Council:
Recycling payment
COVID funding
Grants - capital
Flats recycling
Commercial recycling income
Other income
Reimbursement for recycling
consumables		 Restricted
Unrestricted
£
£
-
1,147,794
-
2,201,092
-
345,343
-
405,231
7,931
-
-
11,614
-
141,409
-
7,387
7,931
4,259,870		 2022
Total
£
1,147,794
2,201,092
345,343
405,231
7,931
11,614
141,409
7,387
4,267,801
6. Education
2023 2022
Total Total
£ £
Student income 86,960 41,332

All income from education in the current and prior period was unrestricted.

7. Government grants

The charitable company receives government grants, defined as grant funding from the Welsh Government, to fund charitable activities. The total value of such grants in the period ending 31 March 2023 was £941 (2022: £175,730). There are no unfulfilled conditions or contingencies attaching to these grants.

26

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

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
£
740,983
33,814
141,216
10,658
39,602
52,319
14,249
1,020
-
9,859
-
1,043,720
36,263
1,079,983		 Recycling
£
2,982,848
65,235
1,307,328
6,853
88,000
28,700
147,436
8,496
67
14,075
579,110
5,228,148
145,975
5,374,123		 Education
£
75,772
228
7,459
1,783
998
3,901
1,164
79
-
-
-
91,384
3,708
95,092		 Support and
governance
£
91,071
4,464
240
1,847
-
2,472
325
8,066
-
-
77,461
185,946
(185,946)
-		 2023 Total
£
3,890,674
103,741
1,456,243
21,141
128,600
87,392
163,174
17,661
67
23,934
656,571
6,549,198
-
6,549,198

Total governance costs were £16,000.

27

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

For the year ended 31 March 2023
8.
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
£
529,272
18,948
32,676
15,211
43,702
35,733
11,517
4,887
83
6,990
-
699,019
25,378
724,397		 Recycling
£
2,640,474
67,764
1,051,333
2,297
105,176
7,657
137,967
7,641
2,546
21,798
578,850
4,623,503
126,608
4,750,111		 Education
£
70,429
191
2,731
55
59
3,762
1,139
-
-
-
-
78,366
3,377
81,743		 Support and
governance
£
75,719
2,003
121
506
-
2,671
-
6,970
-
-
67,373
155,363
(155,363)
-		 2022 Total
£
3,315,894
88,906
1,086,861
18,069
148,937
49,823
150,623
19,498
2,629
28,788
646,223
5,556,251
-
5,556,251

Total governance costs were £13,475.

28

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

9. Net movement in funds

This is stated after charging / (crediting):

Net movement in funds
This is stated after charging / (crediting):
2023 2022
£ £
Interest payable 23,934 21,798
Depreciation
Owned assets 307,858 297,510
Leased assets 348,713 348,713
Profit on the sale of fixed assets (5,196) (2,200)
Trustees' remuneration Nil Nil
Trustees' reimbursed expenses Nil Nil
Auditors' remuneration:
Statutory audit (excl. VAT) 16,000 13,475
Other services Nil Nil

Trustees were not reimbursed expenses during the year (2022: nil).

10. Staff costs and numbers

Staff costs for the group were as follows:

Salaries and wages
Social security costs
Pension contributions
Agency staff		 2023
£
2,618,553
214,105
160,407
897,609
3,890,674		 2022
£
2,261,608
172,119
139,539
742,628
3,315,894

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, and Operational Finance Manager who are employed by Wastesavers Limited, and the Charity Manager who is employed by Wastesavers Charitable Trust Limited. The total employee benefits of the key management personnel of the group, including employers' national insurance, were £190,672 (2022: £171,010).

Average head count 2023
No.
122		 2022
No.
120

29

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

For the year ended 31 March 2023
11. Tangible fixed assets
The group
£
Cost
At 1 April 2022
-
Additions in year
36,124
Disposals in year
-
At 31 March 2023
36,124
Depreciation
At 1 April 2022
-
Charge for the year
-
Disposals in year
-
At 31 March 2023
-
Net book value
At 31 March 2023
36,124
At 31 March 2022
-
Assets under
construction		 Land and
buildings
£
2,374,191
-
-
2,374,191
1,358,941
70,417
-
1,429,358
944,833
1,015,250		 Leasehold
land
£
121,281
-
-
121,281
-
-
-
-
121,281
121,281		 Plant and
machinery
£
917,211
-
(31,300)
885,911
589,075
109,029
(31,079)
667,025
218,886
328,136		 Motor
vehicles
£
3,532,942
-
-
3,532,942
2,678,124
452,643
-
3,130,767
402,175
854,818		 Office
equipment
£
27,564
-
-
27,564
26,938
626
-
27,564
-
626		 £
603,941
-
-
603,941
143,142
23,856
-
166,998
436,943
460,799
Leasehold
improvements		 Total
£
7,577,130
36,124
(31,300)
7,581,954
4,796,220
656,571
(31,079)
5,421,712
2,160,242
2,780,910

Included within the net book value is £74,524 (2022: £423,019) relating to assets held under finance leases. The depreciation charged to the statement of financial activities in respect of these assets was £348,713 (2022: £348,713).

30

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

11. Tangible fixed assets (continued)

Tangible fixed assets (continued)
The charity
Cost
At 1 April 2022
Additions in year
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 £
-
36,125
36,125
-
-
-
36,125
-
Assets under
construction		 Land and
buildings
£
2,374,191
-
2,374,191
1,358,941
70,417
1,429,358
944,833
1,015,250		 Plant and
machinery
£
1,898
-
1,898
1,898
-
1,898
-
-		 Motor
vehicles
£
49,310
-
49,310
20,237
7,044
27,281
22,029
29,073		 Total
£
2,425,399
36,125
2,461,524
1,381,076
77,461
1,458,537
1,002,987
1,044,323

31

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

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:

2023 2022
£ £
Turnover 5,360,802 4,739,573
Cost of sales (696,809) (448,143)
Gross profit 4,663,993 4,291,430
Administrative expenses (4,581,441) (4,213,700)
Operating profit 82,552 77,730
Other income 5,196 2,200
Interest receivable - 43
Interest payable (14,075) (21,798)
Profit on ordinary activities 73,673 58,175
Corporation tax - -
Profit for financial year 73,673 58,175
The aggregate of the assets, liabilities and funds was:
2023 2022
£ £
Assets 2,712,521 3,112,939
Liabilities (2,064,815) (2,538,906)
Funds 647,706 574,033
Parent charity
The parent charity's gross income and the results for the year are disclosed as follows:
2023 2022
£ £
Gross income 1,280,405 1,005,945
Results for the year (40,645) 73,193

13. Parent charity

32

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

14. Stock

2023
2022
£
£
Donated goods for resale
32,298
25,580
15. Debtors
2023
2022
£
£
Trade debtors
410,874
388,859
Prepayments
156,225
125,939
Accrued income
566,893
227,054
Amounts owed from subsidiary
-
-
VAT
-
-
1,133,992
741,852
16. Creditors: amounts due within 1 year
2023
2022
£
£
Trade creditors
456,799
116,313
Other taxation and social security
116,333
178,039
Accruals
191,051
84,762
Other creditors
141,614
115,917
Deferred income (see note 22)
91,707
65,915
Obligations under finance leases
183,851
192,885
1,181,355
753,831
17. Creditors: amounts due after 1 year
2023
2022
£
£
Obligations under finance leases
73,672
257,522
The group
The group
The group
The group		 2023
2022
£
£
32,298
25,580
2023
2022
£
£
17,373
36,820
15,171
1,158
1,131
1,228
206
653
6,389
6,817
40,270
46,676
2023
2022
£
£
32,734
3,335
10,878
6,481
146,028
29,017
5,463
3,475
-
-
-
-
195,103
42,308
2023
2022
£
£
-
-
The charity
The charity
The charity
The charity

33

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

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
Net assets at 31 March 2023
Prior period comparative
Tangible fixed assets
Current assets
Creditors: amounts falling due within 1 year
Net assets at 31 March 2022
Creditors: amounts falling due after more than 1
year
Creditors: amounts falling due after more than 1
year		 £
1,866,271
99,319
-
-
1,965,590
£
2,300,543
497,180
-
-
2,797,723
Restricted
funds
Restricted
funds		 £
293,971
2,209,395
(1,181,355)
(73,672)
1,248,339
£
480,367
1,478,260
(753,831)
(257,522)
947,274
Unrestricted
funds
Unrestricted
funds		 Total funds
£
2,160,242
2,308,714
(1,181,355)
(73,672)
3,213,929
Total funds
£
2,780,910
1,975,440
(753,831)
-
(257,522)
3,744,997

34

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

20. Movements in funds

Movements in funds
Restricted funds
WEFO (EDRF Obj 2)
Welsh Assembly
Cardiff City Council
Newport City Council
Rhondda Cynon Taf Council
Education Suite
Leasehold land (NCC)
NCC flats recycling
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds
Torfaen County Council -
New Inn Salaries
Torfaen County Council -
Reuse Coordinator
Landfill Disposal Tax
Community Scheme
Wastesavers Ltd capital
fund		 At 1 April
2022
£
128,044
150,746
44,758
701,119
110,000
68,665
22,000
-
10,000
121,281
216,780
1,224,330
2,797,723
947,274
947,274
3,744,997		 Income
£
-
-
(44,758)
-
-
-
-
39,307
19,000
-
-
-
13,549
6,004,581
6,004,581
6,018,130		 £
(21,513)
(18,638)
-
(39,378)
(40,007)
(68,665)
(22,000)
(35,261)
-
-
(169,974)
(394,121)
(809,557)
(5,739,641)
(5,739,641)
(6,549,198)
Expenditure		 £
£
-
106,531
-
132,108
-
-
(16,802)
644,939
-
69,993
-
-
-
-
-
4,046
(19,323)
9,677
-
121,281
-
46,806
-
830,209
(36,125)
1,965,590
36,125
1,248,339
36,125
1,248,339
-
3,213,929
At 31 March
2023
Transfers
between
funds
1,965,590
1,248,339
1,248,339
3,213,929

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

Funding to support the establishment of 2 sites in Cardiff, Lamby Way (opened 2021) and Bessemer Road (CCC made the decision not to continue with this site and the funds will be returned in 2023/24).

35

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

20. Movements in funds (continued)

Newport City Council

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

Part of the grant from Newport City Council, £25,000, was allocated for the purchase of a new Reuse vehicle.

Another part of the grant received from Newport City Council, £25,000, was allocated towards the refurbishment of the classroom at Head Office. The pandemic held up works until 2022, works have now commenced and should be completed this financial year.

Rhondda Cynon Taf Council

Rhondda Cynon Taff received funding of £110,000 from Welsh Government towards setting up a new Reuse site at Aberdare. The site was set up in 2022/23 and funding is being used to support the running of the site.

Torfaen County Council - New Inn Salaries

TCBC also received funding which was passed to us to subsidise salaries at New Inn to March 2023. The balance was fully spent in 2022/23.

Torfaen County Council - Reuse Coordinator

Funding from Torfaen County Council towards the setting up and running of a Repair Café in Pontypool, Torfaen. The funding was fully spent in 2022/23.

Education Suite

Donations to fund the refurbishment of the education suite at Head Office. The refurbishment work is underway and expected to be completed in late summer 2023.

Landfill Disposal Tax Community Scheme

Funding was received to support the setting up of 2 new projects, The Nappy Library and Reuse Repair Café.

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.

NCC flats recycling

Funding to provide flats’ recycling facilities across Newport, working in partnership with Newport City Council and Newport City Homes. This is an ongoing project.

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.

36

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

20. Movements in funds (continued)

Prior year comparative:
Restricted funds
WEFO (EDRF Obj 2)
Welsh Assembly
Cardiff City Council
Newport City Council
Rhondda Cynon Taf Council
Education Suite
Leasehold land (NCC)
NCC flats recycling
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds
Wastesavers Ltd capital
fund
Torfaen County Council -
New Inn Salaries
Torfaen County Council -
Reuse Coordinator		 At 1 April
2021
£
149,557
169,384
47,700
734,610
110,000
-
-
-
121,281
299,680
1,606,968
3,239,180
839,977
839,977
4,079,157		 Income
£
-
-
-
-
-
99,503
22,000
10,000
-
-
7,931
139,434		 £
(21,513)
(18,638)
(2,942)
(33,491)
-
(30,838)
-
-
-
(82,900)
(390,569)
(580,891)
(4,975,360)
(4,975,360)
(5,556,251)
Expenditure		 £
£
-
128,044
-
150,746
-
44,758
-
701,119
-
110,000
-
68,665
-
22,000
-
10,000
-
121,281
-
216,780
-
1,224,330
-
2,797,723
-
947,274
-
947,274
-
3,744,997
At 31 March
2022
Transfers
between
funds		 £
£
-
128,044
-
150,746
-
44,758
-
701,119
-
110,000
-
68,665
-
22,000
-
10,000
-
121,281
-
216,780
-
1,224,330
-
2,797,723
-
947,274
-
947,274
-
3,744,997
At 31 March
2022
Transfers
between
funds
2,797,723
5,082,657
5,082,657
5,222,091		 947,274
947,274
3,744,997

37

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

22. Deferred income

At 1 April 2022
Amounts deferred during the year
Amounts released during the year
At 31 March 2023		 2023
2022
£
£
65,915
57,059
91,707
65,915
(65,915)
(57,059)
91,707
65,915
The group		 2023
2022
£
£
-
-
-
-
-
-
-
-
The charity		 2023
2022
£
£
-
-
-
-
-
-
-
-
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		 2023
£
48,168
16,010
64,178		 2022
£
48,168
11,970
60,138

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 £514,106 (2022: £448,143) and received a total of £2,989,284 (2022: £2,930,381), from Newport City Council. This included the following amounts:

Recycling payment
Recycling consumables
Emergency funding		 2023
£
2,651,196
338,088
-
2,989,284		 2022
£
2,200,722
345,343
384,316
2,930,381

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 £950 (2022: £540) from A-Print and Design Limited. The outstanding balance at 31 March 2023 was £198 (2022: Nil).

38

Wastesavers Charitable Trust Limited

Notes to the financial statements

For the year ended 31 March 2023

24. Finance lease commitments

At 31 March 2023 the group had finance leases at the year end with total future minimum lease payments as follows:

payments as follows:
Amount falling due:
Within 1 year
Within 1 - 5 years		 2023
£
206,959
80,046
287,005		 2022
£
206,960
264,932
471,892

25. Capital commitments

At 31 March 2023, Wastesavers Limited had entered into a hire purchase agreement to acquire two new specialist recycling trucks with a total cost over five years of £304,913 (excluding VAT). As at 31 March 2023, no payments had been made. The vehicles were in use from August 2023.

39