## **REGISTERED COMPANY NUMBER: 05781363 (England and Wales) REGISTERED CHARITY NUMBER: 1116562**
**Recycling Lives Charity**
**Annual report and consolidated financial statements For the year ended 30 April 2025**
## **RECYCLING LIVES CHARITY**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR TO 30 APRIL 2025**
||**Page**|**Page**||
|---|---|---|---|
|**Chairman's Report**|1|to|3|
|**Report of the Trustees**|4|to|9|
|**Report of the Independent Auditors**|10|to|12|
|**Consolidated Statement of Financial Activities**|13|||
|**Charity Statement of Financial Activities**|14|||
|**Consolidated Balance Sheet**|15|||
|**Charity Balance Sheet**|16|||
|**Consolidated Statement of Cash Flows**|17|||
|**Notes to the Consolidated Statement of Cash Flows**|18|||
|**Notes to the Consolidated Financial Statements**|19|to|35|
## **RECYCLING LIVES CHARITY**
## **CHAIRMAN'S REPORT FOR THE YEAR TO 30 APRIL 2025**
## **A MESSAGE FROM THE CHAIRMAN**
This has been one of the most significant and, at times, testing periods in the charity’s recent history. And yet, in many ways, it is also the year that I am most proud of — not because of the difficulties we faced, but because of how this organisation responded to them.
The work we do — supporting people leaving custody, feeding families across Lancashire and Cumbria, providing training and mentoring to those who need it most — does not pause when the financial environment becomes difficult. Our beneficiaries’ needs do not diminish when funding becomes scarce. That reality drove every decision the trustees made during this period, and it is the lens through which I would ask you to read this report.
The year to 30 April 2025 brought real challenges: a significant operating deficit, the partial restructuring of our largest commercial partner, rising employer costs, a funding landscape that grew more competitive by the month and the search for a new CEO. These are not problems that appeared or have disappeared overnight, and they are not problems we shied away from. The trustees took deliberate, considered decisions to use our reserves where needed — to protect our people and preserve our programmes — while simultaneously investing our energy in building a more resilient and diversified future.
At the same time, the impact of our work — the numbers that matter most — remained outstanding. More than 200 people supported through rehabilitation. Over 63% of those released going on to find and keep employment. More than 1.26 million tonnes of food diverted from waste. Over three million meals delivered. 190 people gaining accredited qualifications. These are extraordinary results, and they are a direct reflection of the people who work here and volunteer alongside us every single day.
## **A YEAR OF REAL CHALLENGE: 2024-25**
## **What the numbers tell us**
The Group recorded a deficit of £622,838 for the year (compared to a deficit of £499,189 the year prior), and the charity itself recorded a deficit of £385,501 (compared to a deficit of £186,606). These are significant negative values, which continued into the following year, and they deserve explanation rather than minimisation.
Three factors combined to create this position. First, general operating costs continued to rise, with the new Employers’ National Insurance changes adding meaningful pressure to our cost base from April 2025. Second, the funding environment remained intensely competitive, with many grants we had reasonably expected either reduced or not renewed. Third, and most significantly, the relationship with Recycling Lives Services Limited (RLS) — our largest commercial partner for recycling workshop activity — materially affected our income from that source for the calendar year 2025.
The trustees’ decision was clear: we would not cut programmes, and we would not reduce services to our beneficiaries. We drew on our reserves — consciously and deliberately — to hold the line while we worked to build a more sustainable position.
## **What our people delivered**
Against this financial backdrop, the team’s delivery was exceptional:
- •The rehabilitation team worked with over 200 people, with fewer than 5% of those released going on to reoffend — far below the national average
- •Over 63% of participants released during the year found and kept employment
- •The ACE team supported over 200 people with complex needs, including housing, addiction, mental health and employment pathways
- •1.26m tonnes of food redistributed, supporting over 3 million meals across Lancashire and Cumbria
- •14 tonnes of toiletries and 20 tonnes of pet food also diverted to those in need
- •190 participants gained accredited qualifications through our growing training offer
- •Over 100 volunteers gave their time — 14 of whom were subsequently supported into paid employment
- •1.29 million waste electrical items recycled or refurbished through our workshops
1
## **RECYCLING LIVES CHARITY**
## **CHAIRMAN'S REPORT FOR THE YEAR TO 30 APRIL 2025**
These results are a source of immense pride. They are also a reminder of why protecting this organisation’s financial sustainability is not an abstract governance concern — it is a direct responsibility to the people who depend on what we do.
## **TAKING STOCK: THE TRANSITION INTO 2025-26**
## **A new CEO and a fresh lens on the finances**
In July 2025, the charity welcomed Victoria Blakeman as its new Chief Executive Officer. Her appointment marked an important moment — not a change of direction, but an opportunity to look at the organisation with fresh eyes and with the rigour that a challenging financial period demands.
One of Victoria’s first priorities was to work closely with the trustees on a deep dive into the charity’s accounts. We wanted to understand, clearly and honestly, what was driving the depletion of reserves — not just the headline numbers, but the underlying dynamics: which programmes were self-sustaining, where income had become structurally dependent on a single partner, and where costs had grown faster than funding.
That process was not comfortable, but it was essential. It gave us a shared, evidence-based understanding of the pressures the charity faced, and it became the foundation for every strategic decision that followed. The trustees are grateful to Victoria and the team for approaching this with transparency and with a genuine commitment to getting it right.
## **Renegotiating with Recycling Lives Services**
A central strand of the work in this period was an extended and at times demanding renegotiation with Recycling Lives Services Limited (RLS) — the successor entity to our historically largest commercial partner. The previous arrangements had developed organically over many years, and the terms had not kept pace with the charity’s true costs of delivery.
We approached those renegotiations with a clear objective: to ensure that the commercial terms properly reflected the value the charity delivers, and that we were not, in effect, subsidising commercial activity from charitable reserves. Those discussions took time and required careful management, but they have resulted in a more equitable and sustainable arrangement, effective calendar year 2026 — one that appropriately values the charity’s contribution.
Alongside this, we have substantially reduced our concentration risk by bringing on new commercial partners. Global Ardour Recycling, Baxi, Suez and new partnership arrangements are soon to become operational and further discussions are underway. The reliance on any single commercial relationship that characterised our previous position has been significantly and deliberately reduced.
## **The bridge to where we are now**
The renegotiations, the accounts review, and the new partnerships together represent the foundation of a more resilient operating model. The work was not glamorous, and it did not generate headlines. But it was the right work to do, and it has positioned the charity to move forward from a place of clarity rather than uncertainty.
The strategic report that follows this message sets out in full the direction of travel: the diversified academy model, the MoJ sub-contracting opportunity, the NEET pilot, the accredited training ambitions, and the wrap-around support offer. All of that work builds on the foundation laid during this transition period.
2
## **RECYCLING LIVES CHARITY**
## **CHAIRMAN'S REPORT**
## **FOR THE YEAR TO 30 APRIL 2025**
## **THE ROAD AHEAD**
The year ahead will not be without challenge. We have set ourselves a demanding budget, and we are realistic about the environment in which we are operating. The criminal justice system remains under significant pressure. The cost of living continues to affect the people we serve. Statutory funding for the voluntary sector is not expanding.
And yet I am genuinely optimistic. The clarity we now have about our cost base and our income mix, the quality of the leadership team around Victoria, the new partnerships we have built, and the growing reputation of our programmes with commissioners and funders — all of this gives me confidence that the trajectory is the right one.
We are positioning the charity as a specialist sub-contractor within the MoJ’s rehabilitative supply chain — a deliberate and proportionate decision that plays to our genuine strengths. We are piloting a new NEET programme with Preston City Council, with the first delivery expected in mid 2026 and conversations already underway with Blackpool Council. We are working toward accredited training centre status, which will open access to Adult Skills Fund monies and strengthen our offer to employers and commissioners. And we have soft-launched an externally marketed wrap-around support package through the New Futures Network — one that has already attracted interest from large national infrastructure businesses seeking genuine social value.
Alongside this, the charity will be rebranded in the summer of 2026 such that its name better reflects its broadened constituencies and stakeholders.
None of this happened by accident. It is the result of clear thinking, careful governance, and a team that refused to be defined by a financially difficult couple of years.
## **WITH GRATITUDE**
I want to close with a straightforward and sincere thank you — to everyone who has played a part in this organisation’s story during this period.
To our staff: the commitment, creativity and compassion you bring to work every day is what makes this charity what it is. A difficult year financially did not diminish your dedication to the people you serve, and that has not gone unnoticed by the trustees.
To our volunteers: over 100 of you gave your time freely, and that generosity ripples out far beyond what any budget line could capture. The fact that 14 of our volunteers went on to find employment this year is a story in itself.
To our partners — both long-standing and new — thank you for believing in what we do and choosing to work alongside us. The relationships we are building with Global Ardour, Suez, Supreme, and others are the foundation of our next chapter.
To our funders — the National Lottery, the Albert Gubay Foundation, Fareshare, Felix, and the many others who support our work — your trust means everything to us, and we take the responsibility of it seriously.
And to my fellow trustees: thank you for your time, your challenge, and your unwavering focus on doing the right thing for this charity and the people it exists to serve.
J B Taylor - Chairman
3
## **RECYCLING LIVES CHARITY**
## **REPORT OF THE TRUSTEES FOR THE YEAR TO 30 APRIL 2025**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year to 30 April 2025. Although the accounting reference date is to 29 April, for administrative reasons the accounts have been prepared to 30 April.
## **Reporting framework**
The trustees' annual report and financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition - October 2019).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives**
Charitable Objects are set out in the Articles of Association as follows - the promotion for the public benefit of urban or rural regeneration in areas of social and economic deprivation (and in particular, but not limited to, Lancashire) by all or any of the following means:
## 1.1 the relief of poverty in such ways as may be thought fit;
1.2 the relief of unemployment in such ways as may be thought fit, including assistance to find employment;
1.3 the advancement of education, training or retraining, particularly among unemployed people, and providing unemployed people with work experience;
1.4 the provision of financial assistance, technical assistance, or business advice or consultancy in order to provide training and employment opportunities for unemployed people in cases of financial or other charitable need through help 1.4.1 in setting up their own business, or 1.4.2 to existing businesses;
1.5 the creation of training and employment opportunities by the provision of workspace, buildings and/or land for use on favourable terms;
1.6 the provision of housing for those who are in conditions of need and the improvement of housing in the public sector or in charitable ownership provided that such power shall not extend to relieving any local authorities or other bodies of a statutory duty to provide or improve housing;
## 1.7 the maintenance, improvement or provision of public amenities;
1.8 the preservation of buildings or sites of historic or architectural importance;
1.9 the provision or assistance in the provision of recreational facilities for the public at large and/or those who, by reasons of their youth, age, infirmity or disablement, poverty or social and economic circumstances, have need of such facilities;
1.10 the protection or conservation of the environment;
- 1.11 the promotion of public safety and prevention of crime; and
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## **RECYCLING LIVES CHARITY**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR TO 30 APRIL 2025**
1.12 such other means as may from time to time be determined subject to the prior consent of the Charity Commission for England and Wales.
## **OBJECTIVES AND ACTIVITIES**
## **Activities**
The charity undertakes the following activities either itself of through its subsidiary company in pursuit of its objectives:
- Accommodation and rehabilitation programme for ex-offenders and ex-homeless
- Training and work experience within prisons and the community through recycling work
- Training placement and mentoring programme
- Food distribution programme
- Running a café to provide work, work experience and training for ex-offenders and ex homeless people
- Other environmental projects
## **STRATEGIC REPORT**
## **Achievement and performance Charitable activities**
Detail relating to the charitable activities undertaken during the year are stated in the Chairman's Report on page 1.
## **Financial review**
## **Overview**
The Group made a deficit for the year of £622,838 (2024: deficit - £499,189) and the charity had a deficit of £385,501 (2024: deficit - £186,606).
Subsidiary company - Recycling Lives (Social Enterprises) Ltd (RLSE) With the exception of the accommodation programme, substantially all the activities are undertaken by the subsidiary RLSE, some which could be considered charitable.
The directors and charity trustees are undertaking regular reviews of the activities carried out by RLSE to ensure that only low risk, fully funded and/or profitable activities, which are appropriate for it to undertake as the subsidiary of a charity, are continued.
## **Principal funding sources**
RLC has a diverse range of funding streams including the National Lottery and the Albert Gubay Foundation and commercial arrangements for recycling work through its subsidiary (RLSE) with Baxi Ltd and Recycling Lives Ltd (RLL). During the previous financial year, the RLL situation changed which meant the arrangemen were moved across to being with Recycling Lives Services Ltd and Global Ardour Recycling Ltd.
## **Reserves policy**
During the prior year the trustees reviewed their policy for financial reserves. The target of free reserves (unrestricted funds not invested in fixed assets or otherwise designated) was set to be between £200,000 and £400,000.
At 30 April 2025, the charity's free reserves were £238,953 (2024: £931,904). The trustees have designated up to £500,000 of the reserves above the target level for new projects and growth.
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## **RECYCLING LIVES CHARITY**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR TO 30 APRIL 2025**
## **STRATEGIC REPORT (continued)**
## **Going concern**
In the opinion of the trustees, there is no material uncertainty regarding the charity’s ability to continue as a going concern. The trustees have reviewed cashflow forecasts and have concluded that the charity has sufficient reserves to continue in operation for the next 12 months.
## **Risk management**
The Trustees regularly review the risks to which the charity is exposed and seek to apply appropriate strategies to mitigate, lay-off and manage these risks.
The Trustees consider that the current practices and future plans to respond to these risks are appropriate and that, as a result, such risks are being effectively managed.
## **Future plans**
Future plans for the Group are detailed in the Chairman's Report on page 3.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The organisation is a charitable company limited by guarantee, established by its Memorandum of Association and is governed under its Articles of Association dated 13 April 2006, as amended by special resolution dated 4 July 2006 and further amended by special resolution dated 24 July 2019.
## **Members of the company**
Following the latest change to the Articles of Association, the membership of the company is restricted to the trustees and terminates if a member ceases to be a trustee, except that, if retiring at an AGM, all the trustees remain members until the conclusion of the meeting.
## **Recruitment and appointment of new directors/trustees**
The Directors who served during the year together with any changes are listed on page one of the annual report. The Directors are appointed by the members at the AGM or are co-opted by the trustees. All trustees retire at the AGM and are eligible for re- election.
Trustees are recruited with regard to the skills needed by the charity.
## **Induction and training of new trustees**
Trustees are inducted by spending time with senior management and visiting the various aspects of the charity. They are also given a pack of documentation consisting of polices, recent minutes and reports.
## **Organisation**
The Board of Directors meets as necessary, and not less than four times a year. The quorum for a meeting of the trustees is the greater of two or one third of their number. The Board is responsible for the strategic direction and policy of the charity.
The day to day operation of the charity is the responsibility of the Chief Executive and the other members of the senior management who together with the trustees constitute the key management personnel of the charity.
6
## **RECYCLING LIVES CHARITY**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR TO 30 APRIL 2025**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Pay and remuneration for senior staff**
Senior staff salaries are reviewed annually and benchmarked against other charities and social enterprises. Recommendations are then given to trustees for sign off each year.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
05781363 (England and Wales)
## **Registered Charity number**
1116562
## **Registered office**
Recycling Lives Centre 1a Essex Street Preston PR1 1QE
## **Trustees**
J B Taylor D Snape B J Mayne (resigned 01/06/2025) C Jackson N J Whittle C Whalley-Hunter
## **Auditors**
DJH Audit Limited Accountants Statutory Auditors The Exchange 5 Bank Street Bury BL9 0DN
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## **RECYCLING LIVES CHARITY**
## **REPORT OF THE TRUSTEES FOR THE YEAR TO 30 APRIL 2025**
## **REFERENCE AND ADMINISTRATIVE DETAILS (continued) Senior Management Team**
*Alasdair Bruce Jackson (resigned 30/06/2025)
*Victoria Blakeman (appointed 01/07/2025)
*T R Carysforth
*S Collins *R Thackray N Flanagan K Walmsley *Laura Hodson G Welsh *F McManus D Pearson
- (* are employed by a subsidiary company)
## **Solicitors**
Brabners LLP 55 King Street Manchester M2 4LQ
## **Bankers**
Barclays Bank 38 Fishergate Preston PR1 2AD
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees (who are also the directors of Recycling Lives Charity for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
8
## **RECYCLING LIVES CHARITY**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR TO 30 APRIL 2025**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES (continued)**
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
## **AUDITORS**
The auditors, DJH Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on…................... and signed on the board's behalf by:29 April 2026
J B Taylor - Trustee
9
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF RECYCLING LIVES CHARITY**
## **Opinion**
We have audited the financial statements of Recycling Lives Charity (the 'parent charitable company') and its subsidiary (the ‘group’) for the year to 30 April 2025 which comprise the consolidated Statement of Financial Activities, the parent charitable company Statement of Financial Activities, the group and parent charitable company Balance Sheet, the consolidated Statement of Cash Flows and 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 (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent charitable company's affairs as at 30 April 2025 and of its incoming resources and application of resources including its income and expenditure, for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
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 group’s or parent charitable company'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 financial statements and our Report of the Independent Auditors thereon.
Our opinion on the 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.
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 this gives rise to a material misstatement in the financial statements themselves. 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit: - the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
10
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF RECYCLING LIVES CHARITY**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its subsidiary and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 group and parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below As part of our planning process:
- We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the Charities SORP (FRS 102) and the Companies Act 2006 most relevant.
- We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
11
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF RECYCLING LIVES CHARITY**
## **Our responsibilities for the audit of the financial statements continued**
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to estimating the useful economic life of an asset and its residual value and in categorising leases as finance or operating leases.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.
- Testing key income lines for evidence of management bias.
- Obtaining third-party confirmation of material bank and investment balances.
- Documenting and verifying all significant related party balances and transactions.
- Reviewing third party documentation and correspondence for discussions of irregularities including fraud.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the group.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members and its trustees those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Richard Askey (Senior Statutory Auditor) for and on behalf of DJH Audit Limited Accountants Statutory Auditors The Exchange 5 Bank Street Bury BL9 0DN
Date: 29 April 2026
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## **RECYCLING LIVES CHARITY**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR TO 30 APRIL 2025**
|Notes
**Income and endowments from**
Donations and legacies
2
**Charitable activities**
4
Workshops
Food distribution
Cafe
Kitchen training
Rehabilitation
Residential work
ACE
Social value
Investment income
3
**Total**
**Expenditure on**
**Charitable activities**
5
Workshops
Food distribution
Cafe
Kitchen training
Rehabilitation
Residential work
Other
ACE
Bikes
**Total**
**NET INCOME/(EXPENDITURE)**
**Transfers between funds**
18
**Net movement in funds**
**RECONCILIATION OF FUNDS**
Total funds brought forward
Prior period adjustment
21
As restated
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
Restricted
funds
**2025**
**Total**
**funds**
2024
Total
funds (As
restated)
£
£
**£**
£
159,249
101,563**260,812**
153,146
1,061,123
3,485**1,064,608**
1,127,967
449,154
17,754**466,908**
290,629
67,712
4,933
**72,645**
42,194
- 14,011
**14,011**
14,521
27,510
309,917**337,428**
390,097
- 56,970
**56,970**
43,890
- 61,820
**61,820**
109,595
209,126
-**209,126**
105,036
44,967
-**44,967**
42,768
2,018,840
570,453**2,589,294**
2,319,843
1,099,475
25,793
**1,125,269**
906,658
510,650
15,204
**525,854**
418,090
84,856
5,143
**89,999**
74,333
13,751
88,674
**102,425**
106,005
386,695
426,347
**813,042**
580,321
37,692
205,901
**243,593**
167,306
103,335
6,754
**110,089**
424,963
38,248
163,613
**201,861**
141,017
**-**
**-**
**-**
339
2,274,701
937,430
**3,212,132**
2,819,032
(255,861)
(366,977)
**(622,838)**
(499,189)
(353,553)
353,553
-
-
(609,414)
(13,424)
**(622,838)**
(499,189)
1,328,099
54,572
**1,382,671**
1,731,171
(312,550)
-
**(312,550)**
(161,861)
1,015,549
54,572
**1,070,121**
1,569,310
406,135
41,148
**447,283**
1,070,121|
|---|---|
The notes form part of these financial statements
13
## **RECYCLING LIVES CHARITY**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR TO 30 APRIL 2025**
|Notes
**Income and endowments from**
Donations and legacies
2
**Charitable activities**
4
Rehabilitation
Residential work
ACE
Investment income
3
**Total**
**Expenditure on**
**Charitable activities**
5
Rehabilitation
Residential work
Other
ACE
Kitchen
Bikes
**Total**
**NET INCOME/(EXPENDITURE)**
**Transfers between funds**
18
**Net movement in funds**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
Restricted
funds
**2025**
**Total**
**funds**
2024
Total
funds
£
£
**£**
£
73,046
84,015
**157,061**
16,553
- 174,899
**174,899**
-
- 56,970
**56,970**
43,890
- 61,820
**61,820**
109,595
44,967
-
**44,967**
42,768
118,013
377,704
**495,717**
212,806
111,726
301,838
**413,564**
-
37,692
205,901
**243,593**
167,307
230
1,576
**1,806**
90,567
38,248
163,613
**201,861**
141,017
7,967
12,427
**20,394**
182
-
-
**-**339
195,863
685,355
**881,218**
399,412
(77,850)
(307,651)
**(385,501)**
(186,606)
(309,855)
309,855
**-**
-
(387,705)
2,204
**(385,501)**
(186,606)
1,431,904
17,796
**1,449,700**
1,636,306
1,044,199
20,000
**1,064,199**
1,449,700|
|---|---|
The notes form part of these financial statements
14
## **RECYCLING LIVES CHARITY**
## **CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 ARPIL 2025**
|**30 ARPIL 2025**||||||
|---|---|---|---|---|---|
|||Unrestricted
funds|Restricted
funds|**2025 Total**
**funds**|2024 Total
funds (As
restated)|
||Notes|£|£|**£**|£|
|**FIXED ASSETS**||||||
|Tangible assets|12|167,182|21,148|**188,330**|109,628|
|**CURRENT ASSETS**||||||
|Debtors|14|336,406|20,000|**356,406**|411,348|
|Investments|15|263,321|192,072|**455,393**|1,167,030|
|Cash at bank and in hand||89,544|28,811|**118,354**|218,247|
|**CREDITORS**||689,270|240,883|**930,153**|1,796,625|
|Amounts falling due within one year|16|(450,317)|(220,883)|**(671,200)**|(836,132)|
|**NET CURRENT ASSETS**||238,953|20,000|**258,953**|960,493|
|**TOTAL ASSETS LESS CURRENT**||||||
|**LIABILITIES**||406,135|41,148|**447,283**|1,070,121|
|**NET ASSETS**||406,135|41,148|**447,283**|1,070,121|
|**FUNDS**|18|||||
|Unrestricted funds||||**406,135**|1,015,549|
|Restricted funds||||**41,148**|54,572|
|**TOTAL FUNDS**||||**447,283**|1,070,121|
The financial statements were approved by the Board of Trustees and authorised for issue on…...............29 April 2026 and were signed on its behalf by:
J B Taylor - Trustee
The notes form part of these financial statements
15
## **RECYCLING LIVES CHARITY STATEMENT OF FINANCIAL POSITION 30 ARPIL 2025**
|**30 ARPIL 2025**||||||
|---|---|---|---|---|---|
|||Unrestricted
funds|Restricted
funds|**2025**
**Total**
**funds**|2024
Total
funds|
||Notes|£|£|**£**|£|
|**FIXED ASSETS**||||||
|Tangible assets|12|11,443|-|**11,443**|12,824|
|Investments|13|100|-|**100**|100|
|**CURRENT ASSETS**||11,543|-|**11,543**|12,924|
|Debtors|14|794,549|20,000|**814,549**|385,213|
|Investments|15|263,321|192,072|**455,393**|1,167,030|
|Cash at bank and in hand||46,898|-|**46,898**|71,122|
|**CREDITORS**||1,104,767|212,072|**1,316,840**|1,623,365|
|Amounts falling due within one year|16|(72,111)|(192,072)|**(264,183)**|(186,589)|
|**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**||1,032,657|20,000|**1,052,657**|1,436,776|
|**LIABILITIES**||1,044,199|20,000|**1,064,199**|1,449,700|
|**NET ASSETS**||1,044,199|20,000|**1,064,199**|1,449,700|
|**FUNDS**|18|||||
|Unrestricted funds||||**1,044,199**|1,431,904|
|Restricted funds||||**20,000**|17,796|
|**TOTAL FUNDS**||||**1,064,199**|1,449,700|
The financial statements were approved by the Board of Trustees and authorised for issue on…..............29 April 2026 and were signed on its behalf by:
J B Taylor - Trustee
The notes form part of these financial statements
16
## **RECYCLING LIVES CHARITY**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR TO 30 APRIL 2025**
|Notes
**Cash flows from operating activities**
Cash generated from operations
A
Interest paid
Net cash (used in)/provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Interest received
Purchase of current asset investments
Sale of current asset investments
Net cash provided by/(used in) investing activities
**Cash flows from financing activities**
Capital repayments in year
Net cash provided by/(used in) financing activities
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**
**Change in cash and cash equivalents in**
**the reporting period**|**2025**
**£**
**(691,605)**
**-**
**(691,605)**
**(164,891)**
**44,967**
**(215,682)**
**927,318**
**591,712**
**-**
**-**
**(99,894)**
**218,247**
**118,354**|2024 (As
restated)
£
(37,449)
-
(37,449)
(23,304)
42,768
(720,062)
747,313
46,715
-
-
9,266
208,981
218,247|
|---|---|---|
17
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR TO 30 APRIL 2025**
## **A. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
||
**OPERATING ACTIVITIES**||||
|---|---|---|---|---|
||||**2025**|2024 (As|
||||**£**|restated)|
|||||£|
||**Net (expenditure)/income for the reporting period (as**
**per the Statement of Financial Activities)**||**(622,838)**|(348,500)|
||**Adjustments for:**||||
||Depreciation charges||**78,633**|69,028|
||Loss on disposal of fixed assets||**13,831**|-|
||Interest received||**(44,967)**|(42,768)|
||Interest paid||**-**|-|
||(Increase)/decrease in debtors||**54,942**|(209,341)|
||Increase/(decrease) in creditors
**Net cash (used in)/provided by operations**||**(171,207)**
**(691,605)**|494,132
(37,449)|
|**B.**|**ANALYSIS OF CHANGES IN NET FUNDS**
**Net cash**
Cash at bank and in hand|At 01.05.24
(As restated)
£
**218,247**
**218,247**|Cash flow
£
**(99,893)**
**(99,893)**|**At 30.4.25**
**£**
**118,354**
**118,354**|
||**Liquid resources**
Deposits included in cash
Current asset investments|**-**
**1,167,030**
**1,167,030**|**-**
**(711,637)**
**(711,637)**|**-**
**455,393**
**455,393**|
||**Total**|**1,385,277**|**(811,530)**|**573,747**|
||||||
The notes form part of these financial statements
18
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR TO 30 APRIL 2025**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements have been prepared: under the historic cost convention; in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective January 1 2019 (second edition – October 2019); FRS 102; and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS 102.
The financial statements combine the accounts of Recycling Live Charity and its trading subsidiary to 30 April 2025.
The group has recorded a sizeable deficit for the year (£622,838) and, since the year end, has noted a further depletion of reserves.
As detailed further in the Chairman’s report, the group has taken action to address the underlying factors which have contributed to the deficits and the trustees are now confident that the group is well placed to move forward with a resilient operating model.
A cashflow forecast has been prepared for the next 12 month period which indicates that, with new partnership agreements in place, the group has sufficient resources to continue in operational existence. The trustees have critically reviewed the forecasts and have discounted the benefit of any pipeline funding, which may result in additional funds being available.
Whilst the trustees acknowledge that the year ahead will not be without challenge, having considered all relevant risks, they remain satisfied that the group is a going concern and that the financial statements are correctly prepared on this basis.
## **Income**
All income is recognised once the group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following applies to particular types of income:
Grants - whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.
Donations - from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.
Rendering of services - income derived from rendering services is recognised by reference to the completion of defined milestones. Income is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
## **Deferred income**
Income is only deferred and included in creditors when:
- The income relates to a future accounting period
- A sales invoice has been raised ahead of the work being carried out and there is no contractual entitlement to the income until the work has been done
- Not all the terms and conditions of the grant have been met, including the incurring of expenditure and the grant conditions are such that unspent grant must be refunded
## **Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
Charitable activities are costs of undertaking the work of the charity. The charity is not registered for VAT and costs are stated inclusive of VAT where charged.
19
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## **1. ACCOUNTING POLICIES - continued**
## **Expenditure**
The subsidiary is registered for VAT and is able to recover some of the input tax charged as it relates to VATable supplies. Costs are stated net of VAT where charged.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 25% on cost Fixtures and fittings - 25% on cost Motor vehicles - 25% on cost Computer equipment - 25% on cost
## **Taxation**
There is no liability to income tax in the subsidiary because it donates its taxable profits to the charity. The charity is exempt from income tax.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Financial instruments**
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
All the financial instruments in these accounts are considered to be basic financial instruments.
## **Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
## **2. DONATIONS AND LEGACIES**
**----- Start of picture text -----**
2024 (As
Group 2025
restated)
£ £
Donations 260,812 153,146
Charity 2025 2024
£ £
Donations 157,061 16,553
**----- End of picture text -----**
20
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
|**3.**|**INVESTMENT INCOME**|||
|---|---|---|---|
||**Group**||**2025**
2024 (As
restated)|
||||**£**
£|
||Deposit account interest||**44,967**
42,768|
||**Charity**
Deposit account interest||**2025**
2024
**£**
£
**44,967**
42,768|
|**4.**|**INCOME FROM CHARITABLE ACTIVITIES**
**Group**
Workshops
Food distribution
Café
Training kitchen
Rehabilitation
Residential work
ACE
Social value||**2025**
2024 (As
restated)
**£**
£
**1,064,608**
1,127,967
**466,908**
290,629
**72,645**
42,194
**14,011**
14,521
**337,428**
390,097
**56,970**
43,890
**61,820**
109,595
**209,126**
105,036|
||||**2,283,515**
2,123,929|
||**Charity**
Rehabilitation
Residential work
ACE Project||**2025**
2024
**£**
£
**174,899**
-
**56,970**
43,890
**61,820**
109,595
**293,689**
153,485|
|**5.**|**CHARITABLE ACTIVITIES COSTS**
**Group**
Workshops
Food distribution
Cafe
Kitchen training
Rehabilitation
Residential work
Other
ACE
Bikes|Direct
Costs (see
note 6)
£
1,025,565
457,538
83,170
81,973
671,091
202,377
57,837
163,229
-|Support
costs (see
note 7)
**Totals**
£
**£**
99,703
**1,125,269**
68,316
**525,854**
6,829
**89,999**
20,452
**102,425**
141,951
**813,042**
41,216
**243,593**
52,252
**110,089**
38,633
**201,861**
-
**-**|
|||2,742,781|469,351
**3,212,132**|
21
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## **5. CHARITABLE ACTIVITIES COSTS - continued Charity**
|Kitchen training
Rehabilitation
Residential work
Other
ACE|Direct Costs
(see note 6)
Support costs
(see note 7)
**Totals**
£
£
**£**
12,615
7,779
**20,394**
292,315
121,249
**413,564**
202,377
41,216
**243,593**
200
1,606
**1,806**
163,229
38,633
**201,861**
670,735
210,482
**881,218**|
|---|---|
**6. DIRECT COSTS OF CHARITABLE ACTIVITIES**
|**Group**
Staff costs
Direct activity costs
Office running costs
Bad debt
**Charity**
Staff costs
Rates and water
Insurance
Transport costs
Repairs and cleaning
Residential costs
ACE costs
Soup kitchen costs
Sundries|**2025**
2024 (As
restated)
**£**
£
**1,698,307**
1,546,650
**879,577**
682,493
**160,510**
142,643
**4,387**
(12,064)
**2,742,781**
2,359,722
**2025**
2024
**£**
£
**508,625**
207,112
**1,985**
3,385
**-**
3,264
**11,479**
6,136
**-**
59
**124,262**
69,036
**7,006**
-
**12,459**
-
**4,919**
2,635
**670,735**
291,627|
|---|---|
22
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## **SUPPORT COSTS 7.**
|**Group**
Workshops
Food distribution
Café
Kitchen training
Rehabilitation
Residential work
Other
ACE|Support
salaries
Other
costs
Depreciation
costs
Governance
costs
**Totals**
£
£
£
£
**£**
46,842
22,052
-
30,809
**99,703**
29,389
19,596
-
19,330
**68,316**
3,010
1,839
-
1,980
**6,829**
3,290
4,658
10,449
2,054
**20,452**
48,898
60,808
1,619
30,626
**141,951**
13,639
17,440
1,656
8,482
**41,216**
-
(12,255)
64,507
-
**52,252**
14,685
14,412
402
9,133
**38,633**
**159,753**
**128,551**
**78,633**
**102,414**
**469,351**|
|---|---|
Support costs are allocated on the following basis: Staff salaries on estimate of time spent; all other costs on basis of use of resources.
|**Governance costs**
Professional and legal|fees|**2025**
2024 (As
restated)
**£**
£
**102,414**
155,984
**102,414**
155,984|
|---|---|---|
|**Charity**
Kitchen training
Rehabilitation
Residential work
Other
ACE|Support
salaries
Other costs
Depreciation
costs
£
£
£
3,059
2,818
-
42,861
51,733
-
13,639
17,440
1,656
-
1,576
30
14,685
14,412
402|Governance
costs
Totals
£
£
1,902
**7,779**
26,655
**121,249**
8,482
**41,216**
-
**1,606**
9,133
**38,633**|
||**74,244**
**87,979**
**2,088**|**46,172**
**210,482**|
|**Governance costs**
Professional and legal fees|**2025**
2024
**£**
£
**46,172**
99,749
**46,172**
99,749|
|---|---|
23
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## **8. NET INCOME/(EXPENDITURE) Group**
Net income/(expenditure) is stated after charging/(crediting):
|Auditor's remuneration
Depreciation - owned assets
Deficit on disposal of fixed assets
Operating lease rentals
Auditor's remuneration - accountancy fees|**2025**
**£**
**10,000**
**78,633**
**-**
**2,515**
**5,000**|2024 (As
restated)
£
4,800
69,029
-
2,515
4,100|
|---|---|---|
## **Charity**
|Net income/(expenditure) is stated after
charging/(crediting):
Auditor's remuneration
Depreciation - owned assets|**2025**
**£**
**10,000**
**2,088**|2024
£
4,800
1,941|
|---|---|---|
## **9. TRUSTEES' REMUNERATION AND BENEFITS Trustees' expenses**
There were no trustees' expenses paid for the year to 30 April 2025 nor for the period ended 30 April 2024.
## **Trustee’s remuneration**
J B Taylor was paid £12,000 (2024: £25,500) during the year for IT consultancy services provid
24
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## **10. STAFF COSTS**
|a) Employees|**2025**|2024 (As
restated)|
|---|---|---|
||**£**|£|
|Salaries and wages|**1,727,691**|1,595,391|
|Pension costs - money purchase|**155,377**|31,076|
|Employer's NI contributions|**34,313**
**1,917,380**|137,800
1,764,267|
|Staff costs for the trading subsidiary included
above
**1,334,562**
1,556,657
b) Employees earning more than £60,000
**Number**
Number
£80,000 - £90,000
**1**
1
c) The key management of the group comprise the trustees and senior staff (as set
out on pages 7 and 8). The trustees do not receive any remuneration for their services.
**2025**
2024 (As
restated)
**£**
£
The total employee benefits of other key
management were as follows:
**447,417**
357,158
d) Average staff numbers
The average number of employees referred to
above, was as follows:-
**2025**
2024 (As
restated)
Charity
**15**
7
Trading subsidiary
**43**
55
**58**
62|||
25
## **RECYCLING LIVES CHARITY**
## **COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD 30 APRIL 2023 TO 30 APRIL 2024**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
4
Workshops
Food distribution
Cafe
Kitchen training
Rehabilitation
Residential work
ACE
Social value
Investment income
3
**Total**
**EXPENDITURE ON**
**Charitable activities**
5
Workshops
Food distribution
Cafe
Kitchen training
Rehabilitation
Residential work
Other
ACE
Bikes
Other
**Total**
**NET INCOME/(EXPENDITURE)**
**Transfers between funds**
18
**Net movement in funds**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds (As
restated)
Restricted
funds
**2024**
**Total**
**funds (As**
**restated)**
£
£
**£**
47,561
105,585
**153,146**
1,127,967
-
**1,127,967**
283,421
7,208
**290,629**
42,194
-
**42,194**
14,521
-
**14,521**
106,809
283,288
**390,097**
43,890
-
**43,890**
200
109,395
**109,595**
105,036
-
**105,036**
42,768
-
**42,768**
1,814,367
505,476
**2,319,843**
906,658
-
**906,658**
405,704
12,386
**418,090**
74,333
-
**74,333**
35,534
70,471
**106,005**
224,472
355,849
**580,321**
167,306
-
**167,306**
424,963
-
**424,963**
-
141,017
**141,017**
-
339
**339**
-
-
**-**
2,238,970
580,062
**2,819,032**
(424,603)
(74,586)
**(499,189)**
(319)
319
**-**
(424,922)
(74,267)
**(499,189)**
1,440,471
128,839
**1,569,310**
1,015,549
54,572
**1,070,121**|
|---|---|
26
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## **12. TANGIBLE FIXED ASSETS**
## **Group**
|**COST**
At 1 May 2024
Additions
Disposals
At 30 April 2025
**DEPRECIATION**
At 1 May 2024
Charge for year
Eliminated on disposal
At 30 April 2025
**NET BOOK VALUE**
At 30 April 2025
At 1 May 2024
**Charity**
**COST**
At 1 May 2024
Additions
Disposals
At 30 April 2025
**DEPRECIATION**
At 1 May 2024
Charge for year
At 30 April 2025
**NET BOOK VALUE**
At 30 April 2025
At 30 April 2024|Improvements
to
property
Fixtures
and
fittings
Motor
vehicles
Computer
equipment
**Totals**
£
£
£
£
**£**
3,610
258,345
96,726
28,093
**386,774**
-
84,302
79,884
705
**164,891**
-
(1,440)
(66,780)
-
**(68,220)**
**3,610**
**341,207**
**109,830**
**28,798**
**483,445**
3,610
169,428
84,471
19,637
**277,146**
-
53,611
21,387
3,635
**78,633**
-
(901)
(59,763)
-
**(60,664)**
**3,610**
**222,138**
**46,095**
**23,272**
**295,115**
**-**
**119,069**
**63,735**
**5,526**
**188,330**
-
88,917
12,255
8,456
109,628
Improvements
to
property
Fixtures
and
fittings
Motor
vehicles
Computer
equipment
**Totals**
£
£
£
£
**£**
3,610
50,855
1,800
6,734
**62,999**
-
-
-
707
**707**
-
-
-
-
**-**
**3,610**
**50,855**
**1,800**
**7,441**
**63,706**
3,610
38,031
1,800
6,734
**50,175**
-
1,941
-
147
**2,088**
**3,610**
**39,972**
**1,800**
**6,881**
**52,263**
**-**
**10,883**
**-**
**560**
**11,443**
-
12,824
-
-
12,824|
|---|---|
27
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
|**13.**
**FIXED ASSET INVESTMENTS**
**Charity**
**COST LESS IMPAIRMENT**
At 1 May 2024 and 30 April 2025
**NET BOOK VALUE**
At 1 May 2025
At 30 April 2024
There were no investment assets outside the UK.
**14.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**Group**
**2025**
**£**
Trade debtors
**301,736**
Prepayments
**54,670**
**356,406**
**Charity**
**2025**
**£**
Trade debtors
**52,011**
Amounts owed by group undertakings
**740,623**
Prepayments
**21,914**
**814,549**
**15.**
**CURRENT ASSET INVESTMENTS**
**Group**
**2025**
**£**
Short term deposits
**455,393**
**Charity**
**2025**
**£**
Short term deposits
**455,393**|Shares in
group
undertakings
**100**
**100**
100
2024 (As
restated)
£
301,610
109,738
411,348
2024
£
1,500
379,576
4,137
385,213
2024 (As
restated)
£
1,167,030
2024
£
1,167,030|
|---|---|
28
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## **CREDITORS: AMOUNTS FALLING DUE WITHIN ONE 16. YEAR**
|**Group**
Trade creditors
Social security and other taxes
VAT
Other creditors
Accrued expenses and deferred income
Deferred capital grants
**Charity**
Bank loans and overdrafts
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses|**2025**
**£**
**128,008**
**29,883**
**9,961**
**165,198**
**338,150**
**-**
**671,200**
**2025**
**£**
**-**
**21,585**
**16,360**
**8,545**
**217,692**
**264,183**|2024 (As
restated)
£
157,817
34,662
75,926
129,125
436,197
2,405
836,132
2024
£
14,973
6,311
4,184
4,808
156,313
186,589|
|---|---|---|
## **17. LEASING AGREEMENTS**
## **Group**
Minimum lease payments under non-cancellable operating leases fall due as follows:
|Within one year
Between one and five years
In more than five years|**2025**
**£**
**16,438**
**3,782**
**-**
**20,220**|2024 (As
restated)
£
36,553
14,375
-
50,928|
|---|---|---|
The above figures exclude service charges.
There was a formal lease between the Charity and Recycling Lives Ltd (RLL), for the accommodation space at the registered office. This was made for two floors of residential space.
Following the administration of RLL, there is no longer a formal lease commitment. The property is occupied under the same terms but an updated lease has not yet been finalised, and there is therefore no contractual commitment at the year end date.
29
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## 18. **MOVEMENT IN FUNDS**
|**Group**|||||
|---|---|---|---|---|
||At|Net|Transfers|At|
||01.05.24 (As|movement|between|30.04.25|
||restated)|in funds|funds||
||£|£|£|£|
|**Unrestricted funds**|||||
|General fund|**1,015,549**|**(608,604)**|**(810)**|**406,135**|
|**Restricted funds**|||||
|Capital Donation - New Kitchen|**29,038**|**(12,278)**|**810**|**17,570**|
|ASDA -Capital|**8,756**|**(5,178)**|**-**|**3,578**|
|Release potential|**-**|**20,000**|**-**|**20,000**|
|ACE|**16,778**|**(16,778)**|**-**|**-**|
||**54,572**|**(14,234)**|**810**|**41,148**|
|**TOTAL FUNDS**|**1,070,121**|**(622,838)**|**-**|**447,283**|
|Net movement in funds, included in the above are||as follows:|||
|**Unrestricted funds**||Incoming
resources|Resources
expended|Movement in
funds|
|General fund||**2,073,869**|**(2,682,473)**|**(608,604)**|
|**Restricted funds**|||||
|Capital Donation - New Kitchen||**-**|**(12,278)**|**(12,278)**|
|ASDA -Capital||**-**|**(5,178)**|**(5,178)**|
|Release potential||**188,899**|**(168,899)**|**20,000**|
|Fareshare||**10,711**|**(10,711)**|**-**|
|Training||**16,039**|**(16,039)**|**-**|
|Residential||**66,970**|**(66,970)**|**-**|
|ACE||**122,850**|**(139,627)**|**(16,778)**|
|Albert Gubay||**24,181**|**(24,181)**|**-**|
|Café||**5,143**|**(5,143)**|**-**|
|Lottery||**82,725**|**(82,725)**|**-**|
|Vinci||**12,500**|**(12,500)**|**-**|
|Soup kitchen||**12,985**|**(12,985)**|**-**|
|||**543,004**|**(557,238)**|**(14,234)**|
|||**2,616,873**|**(3,239,711)**|**(622,838)**|
30
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## 18. **MOVEMENT IN FUNDS Comparatives for movement in funds Group**
|**Unrestricted funds**
General fund
**Restricted funds**
Capital Donation - New Kitchen
ASDA -Capital
Release potential
ACE
Bikes
**TOTAL FUNDS**|At
30.4.23 (As
restated)
Net
movement
in funds
Transfers
between
funds
At
30.4.24 (As
restated)
£
£
£
£
1,440,471
(424,603)
(319)
1,015,549
61,506
(32,468)
-
29,038
13,934
(5,178)
-
8,756
5,000
(5,000)
-
-
48,399
(31,621)
-
16,778
-
(319)
319
-
128,839
(74,586)
319
54,572
1,569,310
(499,189)
-
1,070,121|
|---|---|
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
Albert Gubay
Capital Donation - New Kitchen
Vinci
ASDA -Capital
Lancashire & Cumbria Core
TNLCF (The National Lottery
Charity Fund)
Placements
ACE
Training
Wates
Fareshare
Bikes|Incoming
resources
Resources
expended
Movement in
funds
1,965,056
(2,389,659)
(424,603)
30,827
(30,827)
-
1,201
(33,669)
(32,468)
30,000
(30,000)
-
-
(5,178)
(5,178)
162,025
(167,025)
(5,000)
73,456
(73,456)
-
17,807
(17,807)
-
109,396
(141,017)
(31,621)
5,975
(5,975)
-
67,561
(67,561)
-
7,208
(7,208)
-
20
(339)
(319)
505,476
(580,062)
(74,586)
2,470,532
(2,969,721)
(499,189)|
|---|---|
31
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## 18. **MOVEMENT IN FUNDS**
## **Charity**
|**Charity**|||||
|---|---|---|---|---|
||At|Net|Transfers|At|
||01.05.24|movement|between|30.04.25|
|||in funds|funds||
||£|£|£|£|
|**Unrestricted funds**|||||
|General fund|**1,431,904**|**(387,705)**|**-**|**1,044,199**|
|**Restricted funds**|||||
|Release potential|**-**|**20,000**|**-**|**20,000**|
|Soup kitchen|**1,018**|**(1,018)**|**-**|**-**|
|ACE|**16,778**|**(16,778)**|**-**|**-**|
||**17,796**|**2,204**|**-**|**20,000**|
|**TOTAL FUNDS**|**1,449,700**|**(385,501)**|**-**|**1,064,199**|
|Net movement in funds, included in the above||are as follows:|||
|**Unrestricted funds**||Incoming
resources|Resources
expended|Movement in
funds|
|General fund||**118,013**|**(505,718)**|**(387,705)**|
|**Restricted funds**|||||
|Release potential||**174,899**|**(154,900)**|**20,000**|
|Residential||**66,970**|**(66,970)**|**0**|
|ACE||**122,850**|**(139,627)**|**(16,778)**|
|Soup kitchen||**11,967**|**(12,985)**|**(1,018)**|
|||**376,686**|**(374,482)**|**2,204**|
|||**494,699**|**(880,200)**|**(385,501)**|
32
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## 18. **MOVEMENT IN FUNDS Comparatives for movement in funds Charity**
|**Unrestricted funds**
General fund
**Restricted funds**
ACE
Soup kitchen
Bikes
**TOTAL FUNDS**|At
30.04.23
Net
movement
in funds
Transfers
between
funds
At
30.4.24
£
£
£
£
1,587,907
(155,684)
(319)
1,431,904
48,399
(31,621)
-
16,778
-
1,018
-
1,018
-
(319)
319
-
48,399
(30,922)
319
17,796
1,636,306
(186,606)
-
1,449,700|
|---|---|
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
Soup kitchen
ACE
Bikes|Incoming
resources
Resources
expended
Movement in
funds
102,190
(257,874)
(155,684)
1,200
(182)
1,018
109,396
(141,017)
(31,621)
20
(339)
(319)
110,616
(141,538)
(31,940)
212,806
(399,412)
(187,624)|
|---|---|
33
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
19. **MOVEMENT IN FUNDS** A current year 12 months and prior year 12 months combined position is as follows: **Group**
|
**Group**|||||
|---|---|---|---|---|
||At|Net|Transfers|At|
||30.04.23 (As|movement|between|30.04.25|
||restated)|in funds|funds||
||£|£|£|£|
|**Unrestricted funds**|||||
|General fund|1,440,471|(1,033,207)|(1,129)|406,135|
|**Restricted funds**|||||
|Capital Donation - New Kitchen|61,506|(44,746)|810|
17,570|
|ASDA -Capital|13,934|(10,356)|-|3,578|
|Release potential|5,000|15,000|-|20,000|
|Bikes|-|(319)|319|
-|
|ACE|48,399
128,839|(48,399)
(88,820)|-
1,129|-
41,148|
|**TOTAL FUNDS**|1,569,310|(1,122,028)|-|447,283|
|Net movement in funds, included in the above are as follows:|||||
|**Unrestricted funds**||Incoming
resources|Resources
expended|Movement in
funds|
|General fund||4,038,925|(5,072,132)|(1,033,207)|
|**Restricted funds**|||||
|Capital Donation - New Kitchen||1,201|(45,947)|(44,746)|
|ASDA -Capital||-|(10,356)|(10,356)|
|Release potential||350,924|(335,924)|15,000|
|Fareshare||17,919|(17,919)|-|
|Training||22,014|(22,014)|-|
|Residential||66,970|(66,970)|-|
|ACE||232,246|(280,644)|(48,399)|
|Albert Gubay||55,008|(55,008)|-|
|Café||5,143|(5,143)|-|
|Lottery||156,181|(156,181)|-|
|Vinci||42,500|(42,500)|-|
|Placements||17,807|(17,807)|-|
|Wates||67,561|(67,561)|-|
|Bikes||20|(339)|(319)|
|Soup kitchen||12,985|(12,985)|-|
|||1,048,480|(1,137,300)|(88,820)|
|||5,087,405|(6,209,432)|(1,122,028)|
||||||
20. **RELATED PARTY DISCLOSURES**
## **Charity and subsidiary**
At 30th April 2025 the subsidiary Recycling Lives (Social Enterprise) Limited owed to the parent charitable company £740,623 (2024 - £379,576). The amount is non-interest bearing and unsecured.
34
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR TO 30 APRIL 2025**
## 21. **PRIOR PERIOD ADJUSTMENT**
During the current period, the group has identified an error in the calculation of accrued income in respect of social value effecting the years ended 30 April 2023 and 30 April 2024.
In accordance with the applicable accounting standards, the error has been corrected retrospectively. Comparative information has been restated and the opening balance of total funds as at 1 May 2023 has been adjusted.
The effect of the adjustment is cumulative. The adjustment to the year ended 30 April 2023 was to reduce accrued income by £161,861. The adjustment to the year ended 30 April 2024 was an additional reduction to accrued income of £150,689. Therefore, the cumulative effect on the prior year accrued income of £312,550.
|**Reconciliation of changes in funds - group**
**Adjustments to prior period**
Recalculation of accrued income
Unrestricted funds as previously reported
Unrestricted funds as adjusted
**Analysis of the effect on funds**
Unrestricted funds
Restricted funds
Total funds|**30 April**
**2023**
**£**
(161,861)
1,602,332
1,440,471
1,440,471
128,839
1,569,310|**30 April**
**2024**
**£**
(312,550)
1,328,099
1,015,549
1,015,549
54,572
1,070,121|
|---|---|---|
35