REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31st December 2023 |
for |
RECOLIGHT LIMITED |
REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31st December 2023 |
for |
RECOLIGHT LIMITED |
RECOLIGHT LIMITED (REGISTERED NUMBER: 05496729) |
Contents of the Financial Statements |
for the year ended 31st December 2023 |
Page |
Company Information | 1 |
Statement of Financial Position | 2 |
Notes to the Financial Statements | 3 |
RECOLIGHT LIMITED |
Company Information |
for the year ended 31st December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
Suffolk House |
George Street |
Croydon |
Surrey |
CR0 0YN |
RECOLIGHT LIMITED (REGISTERED NUMBER: 05496729) |
Statement of Financial Position |
31st December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 4 |
Investments | 5 |
CURRENT ASSETS |
Debtors: amounts falling due within one year |
6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) |
RESERVES |
Income and expenditure account | ( |
) | ( |
) |
( |
) | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
RECOLIGHT LIMITED (REGISTERED NUMBER: 05496729) |
Notes to the Financial Statements |
for the year ended 31st December 2023 |
1. | GENERAL INFORMATION |
Recolight Limited is a private company, limited by guarantee, registered in England and Wales under the Companies Act. The address of the registered office is shown on the company information page. The nature of the company's operations and its principal activities are outlined in the Strategic Report. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see below). |
Going concern |
The directors believe that the going concern basis is appropriate as cash reserves are strong and forecasts are regularly prepared and reviewed to ensure that the company has sufficient reserves in order to meet its liabilities as they fall due. In addition, a significant liability exists in relation to deferred income (please see narrative in note 6 to the accounts). |
Income and deferred income |
Income is recognised to the extent that it is probable that the economic benefits will flow to the company and the income can be reliably measured. Income is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The majority of income represents receipts from members in respect of their obligations under the membership agreement (less value added tax). |
Charges are raised against members, in accordance with the membership agreement, to cover estimated costs such as transport and recycling but also marketing and finance costs. However, in any accounting period only the actual costs incurred for services received in that period are taken into the results and any surplus income from members is treated as deferred income to be released against costs incurred in future periods when the end-of-life lamps do come back for recycling. In a year where a deficit is generated, the deferred income is released to income within the Statement of Income and Retained Earnings. |
Other income includes revenues from container leases, training programmes, charges for premium services, and sale of evidence if Recolight's collections exceed the target set by the Environment Agency. |
RECOLIGHT LIMITED (REGISTERED NUMBER: 05496729) |
Notes to the Financial Statements - continued |
for the year ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible assets |
Tangible assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The company adds to the carrying amount of an item of tangible assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to income or expenditure during the period in which they are incurred. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. |
Depreciation is provided on the following bases: |
Fixtures and fittings | - |
Office equipment | - |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised within 'other operating income' in the Statement of Income and Retained Earnings. |
Operating leases: lessee |
Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the period of the lease. |
Taxation |
Tax is recognised in the Statement of Income and Retained Earnings, except that a change attributable to an item of income and expense recognised as other comprehensive income or directly in equity respectively. |
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income. |
Foreign currency translation |
The company's functional currency is GBP. |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. |
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in creditors as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. |
RECOLIGHT LIMITED (REGISTERED NUMBER: 05496729) |
Notes to the Financial Statements - continued |
for the year ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable. |
Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. |
Financial assets that are measured at cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings. |
Financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
and | Office |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
and 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
5. | FIXED ASSET INVESTMENTS |
Investments (neither listed nor unlisted) were as follows: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Fixed term deposit | 5,200,000 | - |
RECOLIGHT LIMITED (REGISTERED NUMBER: 05496729) |
Notes to the Financial Statements - continued |
for the year ended 31st December 2023 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Trade creditors |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
The company manages a Producer Compliance Scheme for producers of lamps, luminaires, and other equipment so that the scheme members can discharge their collection and recycling obligations under the Waste Electrical and Electronic Equipment Regulations (WEEE) 2013 as amended. |
Membership of the Recolight scheme means that the company takes on the member's collection and recycling liabilities under the WEEE regulations. Consequently, Recolight has a liability to meet future collection, treatment, recovery and environmentally sound disposal requirements that may arise for scheme members. The liability to Recolight arises, in the case of non-household products, whenever Recolight is contacted by a holder of waste that is obligated to Recolight in accordance with the WEEE regulations. In addition, Recolight has made statements in the market that have created a valid expectation amongst holders of waste lamps that it will continue to provide a collection and recycling service. |
The board and management of the company review this liability on an annual basis using the quantity of product placed on the market, the level of collections made by the company, the equivalent weight of materials to be recycled, the anticipated life of the product and the total costs of collections, recycling and compliance. The fees charged by Recolight to its members create the deferred income to meet these future costs. |
In addition, if a Recolight scheme member ceases to sell EEE for any reason, it no longer has any liability to pay fees to Recolight. Nevertheless Recolight retains a collection and recycling liability in respect of the member's products for the following compliance year. |
8. | AUDITORS' INFORMATION |
The audit report provided to the members of Recolight Limited on the financial statements for the year ended 31st December 2023 was not qualified. |
The audit report was signed by & Partners, Chartered Accountants and Statutory Auditor. |
RECOLIGHT LIMITED (REGISTERED NUMBER: 05496729) |
Notes to the Financial Statements - continued |
for the year ended 31st December 2023 |
9. | REVIEW OF THE BUSINESS |
The principal activity of the company continued to be the operation of a Waste Electrical and Electronic Equipment (WEEE) Compliance Scheme on behalf of lighting equipment producers in the UK. |
Recolight is the UK's leading lighting WEEE compliance scheme: since 2007, Recolight has funded the recycling of more waste lamps, luminaires and LEDs than all other UK WEEE schemes put together. |
Recolight successfully complied with its members' collection and recycling obligations under the WEEE regulations for the 2023 compliance period, without needing to use the compliance fee to meet that target. |
Recolight has for several years been at the forefront of encouraging the UK lighting industry to adopt circular economy principles, and that has continued during 2023. Recolight provided three information and awareness webinars regarding the circular economy and the lighting industry, and also organised the Circular Lighting Live conference and exhibition for the second year. It is the first ever UK event dedicated to sustainability and the circular economy for the lighting industry. The success of the 2022 event meant that it was moved to a larger location for 2023, with more room for attendees and sponsor exhibitors. |
Recolight encourages action on the circular economy in the lighting industry, because it is the right thing to do. But it also has the consequence of making the Recolight WEEE scheme more attractive to lighting producers. As a result, at the end of 2023, 14 new producer members joined the Recolight compliance scheme, including 11 transfers from other PCSs, and 3 freeriders. |
During the year, Recolight was also an active member of the BSI committee producing a new code of practice for the remanufacture of lighting equipment. |
Recolight has set a target of achieving net zero by 2030. This will be very challenging, but the company has already taken a number of actions including changes to its travel policies, procurement policies to include net zero requirements, and container collections. |
Recolight is committed to effective engagement with relevant stakeholders. Recolight communicates regularly with its members, keeping them informed of changes to the legislation, and helping them to comply. Recolight continues to work closely with DEFRA, and relevant agencies, appropriate industry forums, and its suppliers, to ensure the views and needs of its members are properly represented. |
Recolight is pleased to be a full and active member of the Lighting Industry Association and its sustainability working group, the UK WEEE Scheme Forum (WSF) which Recolight chairs, the BSI committee TPR/1/7/4 preparing a code of practice for luminaire remanufacture, and the Industry Council for Electrical Recycling (ICER). |
Recolight is also pleased to be invited as a guest to the Joint Trade Associations (JTA), a group of a dozen producer trade associations in the electrotechnical sector. The JTA works to ensure that the UK WEEE system is fair, and has also prepared comprehensive proposals for a compliance fee every year since this became an option in 2014. The JTA proposal was once again selected for the 2023 compliance period. |
The Government set the national target for lamp recycling in 2023 at 4,145 tonnes, unchanged from 2022. The actual collections during 2023 were 4,047 tonnes, 2.4% below target. Recolight always welcomes a stretching collection target, and considers that the ideal national target is one that is just missed, to ensure that there is all WEEE that is collected and treated is needed by a PCS to meet its target. |