NORPOL RECYCLING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
NORPOL RECYCLING LIMITED
COMPANY INFORMATION
Directors
N Holt
S Barnes
Secretary
S Barnes
Company number
3029134 (England and Wales)
Registered office
Norpol House
Charles Street
Nelson
Lancashire
BB9 7YG
Auditor
Ashworth Moulds
11 Nicholas Street
Burnley
Lancashire
BB11 2AL
Bankers
HSBC Bank plc
12 Manchester Road
Burnley
Lancashire
BB11 1JH
NORPOL RECYCLING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
The following pages do not form part of the statutory financial statements:
Detailed trading and profit and loss account
Appendix
NORPOL RECYCLING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The directors present the strategic report for the year ended 31 August 2024.

Principal activities

The principal activity of the company was that of plastic and waste recycling.

 

Whilst the company has reported losses for the two years 2023 and 2024, this is because the directors made a decision to extract profits generated in earlier years from the company, and so were paid bonuses. The core business is still profitable and, if the bonuses paid to directors are excluded from the figures, the results for both years would report a profit. The directors do not perceive the loss in the year to be a matter of concern.

 

The company continues to be profitable and has ample liquid funds to meet its obligations, with no long term liabilities.

Principal risks and uncertainties

The directors consider the principal risks and uncertainties to be: -

 

- Continuing availability of recyclable material

- Price of oil, polymers, energy, and other costs in the current economic climate

- Changes in government policy for the recycling sector

- Credit risk and bad debts exposure

- Non compliance with applicable legislation and governance

- Microeconomic factors such as UK recession and/or knock-on effects from a USA recession.

 

All of the above risks and uncertainties are kept under review by the directors.

 

A key driver of the company's success is the policy of the government in respect of plastic and other recycling. As long as the government continues to enthusiastically support the policy of recycling, and by its actions forcing supermarkets and other large users of plastics to recycle large amounts of waste, then the market for plastic recycling companies should continue to expand.

 

In particular, the Plastic Recycling Notes (PRNs) which are the government's preferred medium for enforcing large plastics users to recycle may be higher risk. Small changes in policy and/or competition from other recyclers can result in large changes in value of PRNs.

 

 

Financial risk

The company is exposed to a moderate level of price risk, credit risk, liquidity risk and cash flow risk. The company manages these risks by financing its operations through retained profits. The company may finance larger capital investments by means of hire purchase agreements where necessary, but has no such borrowings at present.

 

The management objectives are to retain sufficient liquid funds to enable it to meet its day to day requirements, minimise exposure to fluctuating interest rates and match the repayment schedule of any external borrowings with the future cash flows expected to arise from the company's trading activities.

NORPOL RECYCLING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Fair review of the business

The plastic recycling industry works in cycles, largely because it is dependent to a significant extent on government policy, together with the prices of oil and polymers. Results can vary substantially from year to year due to factors beyond the company's control, mostly in respect of the artificial demand conditions for elements of the company's services. However, the directors are confident that the company is in a healthy position and will continue to trade profitably even in years where underlying trading conditions are less favourable.

 

Our review is consistent with the size and nature of our business and reflects the risks and uncertainties we face.

 

We consider our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and gross margin.

 

Turnover during the year decreased by 32.8% to £7.3m. About half of this reduction was because the recycled plastics market as a whole has been quiet and physical sales have dropped; the other half of the reduction is because of the fall in PRN prices.

 

The company's net assets have decreased from £7.3m in 2023 to £3.8m in 2024. This reduction is entirely because of the payment of director's bonuses as explained above and does not represent a future problem. The company's debtors and short term assets are greater than its liabilities by over £2m as at 31 August 2024. The cash balance is £1.4m and there are no long term liabilities.

 

Development and performance

The directors monitor performance through the preparation of basic financial information which monitors the key indicators of cash in hand, trade debtors and trade creditors.

Future developments

The company operates mainly in the UK, and much of its activity is dependent on the British public's and government's desire to maintain the environment by a policy of sustainable use of resources. There is no evidence of any slackening of the public desire to keep the country green, and the directors therefore feel that the company will be able to maintain its place in the forefront of the recycling world while continuing to remain profitable.

 

The company is continuing the ongoing development of its Charles Street site in Nelson.

On behalf of the board

S Barnes
Director
4 June 2025
NORPOL RECYCLING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 August 2024.

Principal activities
The principal activity of the company was that of plastic and waste recycling.
Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

N Holt
S Barnes
Auditor

The auditor, Ashworth Moulds, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The information required by schedule 7 of the Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 has been included in the separate Strategic Report in accordance with section 414C (11) of the Companies Act 2006 (Strategic and Directors' Reports) Regulations 2013.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
S Barnes
Director
4 June 2025
NORPOL RECYCLING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

NORPOL RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF NORPOL RECYCLING LIMITED
- 5 -
Opinion

We have audited the financial statements of Norpol Recycling Limited (the 'company') for the year ended 31 August 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 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 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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

NORPOL RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF NORPOL RECYCLING LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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 directors

As explained more fully in the directors' responsibilities statement, the directors 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 directors 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

NORPOL RECYCLING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF NORPOL RECYCLING LIMITED (CONTINUED)
- 7 -
Audit response to risks identified

We addressed detecting material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, as follows:

Risks identified
Audit response
Risk of fraud through management bias and override of controls

 

 

Risk of irregularities and non-compliance with laws and regulations

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://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 company's member 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 company's member those matters we are required to state to the member in an auditor's 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 company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Mark Holmes BA FCA (Senior Statutory Auditor)
For and on behalf of Ashworth Moulds, Statutory Auditor
Chartered Accountants
11 Nicholas Street
Burnley
Lancashire
BB11 2AL
4 June 2025
NORPOL RECYCLING LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
7,251,439
10,791,968
Cost of sales
(7,499,980)
(8,913,348)
Gross (loss)/profit
(248,541)
1,878,620
Distribution costs
(580,440)
(583,516)
Administrative expenses
(2,791,029)
(2,818,867)
Operating loss
4
(3,620,010)
(1,523,763)
Interest receivable and similar income
7
60,591
10,102
Interest payable and similar expenses
8
(2,806)
(33)
Loss before taxation
(3,562,225)
(1,513,694)
Taxation
9
112,278
307,028
Loss for the financial year
(3,449,947)
(1,206,666)
Retained earnings brought forward
7,299,008
8,505,674
Retained earnings carried forward
3,849,061
7,299,008

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages pages 11 to 20 form an integral part of these financial statements.

NORPOL RECYCLING LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,521,337
1,867,002
Current assets
Stocks
11
238,561
344,843
Debtors
12
1,722,139
2,103,220
Cash at bank and in hand
1,467,658
4,565,420
3,428,358
7,013,483
Creditors: amounts falling due within one year
13
(1,099,634)
(1,468,199)
Net current assets
2,328,724
5,545,284
Total assets less current liabilities
3,850,061
7,412,286
Provisions for liabilities
Deferred tax liability
14
-
0
112,278
-
(112,278)
Net assets
3,850,061
7,300,008
Capital and reserves
Called up share capital
16
1,000
1,000
Profit and loss reserves
3,849,061
7,299,008
Total equity
3,850,061
7,300,008

The notes on pages pages 11 to 20 form an integral part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 4 June 2025 and are signed on its behalf by:
S Barnes
Director
Company registration number 3029134 (England and Wales)
NORPOL RECYCLING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
20
(3,154,349)
(1,285,153)
Interest paid
(2,806)
(33)
Income taxes paid
(317)
(175,988)
Net cash outflow from operating activities
(3,157,472)
(1,461,174)
Investing activities
Purchase of tangible fixed assets
(237,929)
(311,788)
Proceeds from disposal of tangible fixed assets
37,105
54,527
Advance of loans
199,943
(199,943)
Interest received
60,591
10,102
Net cash generated from/(used in) investing activities
59,710
(447,102)
Net decrease in cash and cash equivalents
(3,097,762)
(1,908,276)
Cash and cash equivalents at beginning of year
4,565,420
6,473,696
Cash and cash equivalents at end of year
1,467,658
4,565,420
NORPOL RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
1
Accounting policies
Company information

Norpol Recycling Limited is a private company limited by shares incorporated in England and Wales. The registered office is Norpol House, Charles Street, Nelson, Lancashire, BB9 7YG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Revenue from the sale of Plastic Recycling Notes (PRNs) is recognised on the sale of the notes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% straight line basis
Plant and machinery
20% straight line basis
Fixtures, fittings and equipment
20% straight line basis
Commercial vehicles
25% straight line basis
Motor vehicles
25% reducing balance basis

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

NORPOL RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

A financial instrument is a contract giving rise to a financial asset (such as trade and other debtors, cash and bank balances) or a financial liability (such as trade and other creditors, bank and other loans, hire purchase and lease creditors) or an equity instrument (such as ordinary or preference shares).

 

Financial instruments are recognised in the company's balance sheet when the company becomes a party to the contractual provisions of the instrument.

 

All the company's financial instruments are basic financial instruments and are recognised at amortised cost using the effective interest method.

 

Amortised cost: the original transaction value, less amounts settled, less any adjustment for impairment.

 

Effective interest method: where a financial instrument falls due more than 12 months after the balance sheet date and is subject to a rate of interest which is below a market rate, the original transaction value is discounted using a market rate of interest to give the net present value of future cash flows.

Derecognition of financial assets

Financial assets cease to be recognised only when the contractual rights to the cash flows expire, or when substantially all the risks and rewards of ownership are transferred to another entity.

 

Financial liabilities cease to be recognised when and only when the company's obligations are discharged, cancelled, or they expire.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

NORPOL RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to reserves, in which case the deferred tax is also dealt with in reserves.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

NORPOL RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
3
Turnover and other revenue
2024
2023
£
£
Other significant revenue
Interest income
60,591
10,102
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
7,105,669
10,138,522
Europe
145,770
653,446
7,251,439
10,791,968
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
984
367
Fees payable to the company's auditor for the audit of the company's financial statements
13,950
13,250
Depreciation of owned tangible fixed assets
533,354
569,406
Loss/(profit) on disposal of tangible fixed assets
13,135
(16,091)
Operating lease charges
55,267
55,200
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Production
27
28
Selling and Distribution
3
3
Administration
6
6
Total
36
37

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,138,478
5,580,685
Social security costs
668,217
758,518
Pension costs
51,641
50,061
5,858,336
6,389,264
NORPOL RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
3,995,156
4,420,509
Company pension contributions to defined contribution schemes
12,667
10,500
4,007,823
4,431,009

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
2,004,917
2,391,163
Company pension contributions to defined contribution schemes
2,667
6,500
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
56,099
-
0
Other interest income
4,492
10,102
Total income
60,591
10,102
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
33
Other finance costs:
Other interest
2,806
-
0
2,806
33
NORPOL RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(219,160)
Deferred tax
Origination and reversal of timing differences
(112,278)
(87,868)
Total tax credit
(112,278)
(307,028)

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(3,562,225)
(1,513,694)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(890,556)
(378,424)
Tax effect of expenses that are not deductible in determining taxable profit
143
2,888
Depreciation on assets not qualifying for tax allowances
4,436
4,436
Deferred tax adjustments in respect of prior years
(127)
346
Super-allowances on capital additions post-April 2021
-
0
(5,482)
Change in deferred tax rate
-
0
69,208
Tax losses carried forward, no deferred tax asset provided
773,826
-
0
Taxation credit for the year
(112,278)
(307,028)
NORPOL RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
10
Tangible fixed assets
Land and buildings
Plant and machinery etc
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2023
1,118,604
6,272,331
38,200
7,429,135
Additions
-
0
237,929
-
0
237,929
Disposals
-
0
(302,635)
-
0
(302,635)
At 31 August 2024
1,118,604
6,207,625
38,200
7,364,429
Depreciation and impairment
At 1 September 2023
339,783
5,204,294
18,056
5,562,133
Depreciation charged in the year
18,880
509,438
5,036
533,354
Eliminated in respect of disposals
-
0
(252,395)
-
0
(252,395)
At 31 August 2024
358,663
5,461,337
23,092
5,843,092
Carrying amount
At 31 August 2024
759,941
746,288
15,108
1,521,337
At 31 August 2023
778,821
1,068,037
20,144
1,867,002
11
Stocks
2024
2023
£
£
Raw materials and consumables
53,945
56,168
Finished goods and goods for resale
184,616
288,675
238,561
344,843
NORPOL RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,161,207
1,344,244
Corporation tax recoverable
219,477
219,160
Other debtors
46,515
325,451
Prepayments and accrued income
294,940
187,850
1,722,139
2,076,705
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
-
0
26,515
Total debtors
1,722,139
2,103,220
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
390,919
369,632
Taxation and social security
130,863
486,641
Directors loan accounts
344,157
354,018
Other creditors
18,493
14,322
Accruals and deferred income
215,202
243,586
1,099,634
1,468,199
14
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
106,997
160,591
Tax losses
(107,177)
(51,016)
Others
180
2,703
-
0
112,278
NORPOL RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
14
Deferred taxation
(Continued)
- 19 -
2024
Movements in the year:
£
Liability at 1 September 2023
112,278
Credit to profit or loss
(112,278)
Liability at 31 August 2024
-

The company has an estimated deferred tax asset of £773,826 arising because of the losses brought about by the directors' bonuses. This amount has not been included as an asset because of uncertainty over whether it will be recovered within 12 months.

15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
51,641
50,061

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
NORPOL RECYCLING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
17
Related party transactions

Rent and rates of £55,267 (2023: £55,200) was payable to a company which is controlled by a family member of one of the directors. A balance of £NIL (2023: £NIL) was outstanding at the year-end.

 

During the tear, the company purchased a commercial vehicle from a company controlled by a family member for £22,500.

 

Remuneration of £20,000 (2023: £20,000) was paid to a family member of one of the directors.

 

During the year, the company purchased waste plastic amounting to £2,089,268 (2023: £2,266,651) from Norpol Recycling, an unincorporated business of which N. Holt, a director of the company, is the sole proprietor. At 31 August 2024 the company owed Norpol Recycling £349,002 (2023: £244,641).

 

The company provided telephone, bookkeeping and reception services to Norpol Recycling, and will receive a recharge of £20,176 (2023: £19,734) for those services provided by the company during the year.

18
Ultimate controlling party

The company's ultimate controlling party is Mr. N. Holt, a director of the company.

19
Directors' transactions

This loan has been repaid since the year-end.

20
Cash absorbed by operations
2024
2023
£
£
Loss after taxation
(3,449,947)
(1,206,666)
Adjustments for:
Taxation credited
(112,278)
(307,028)
Finance costs
2,806
33
Investment income
(60,591)
(10,102)
Loss/(gain) on disposal of tangible fixed assets
13,135
(16,091)
Depreciation and impairment of tangible fixed assets
533,354
569,406
Movements in working capital:
Decrease/(increase) in stocks
106,282
(27,721)
Decrease in debtors
181,455
729,100
Decrease in creditors
(368,565)
(1,016,084)
Cash absorbed by operations
(3,154,349)
(1,285,153)
21
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
4,565,420
(3,097,762)
1,467,658
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