Limited Liability Partnership registration number SO304506 (Scotland)
Fife Resource Solutions LLP
Annual report and financial statements
For the year ended 31 March 2025
Fife Resource Solutions LLP
Limited liability partnership information
Designated members
Fife Council
Sustainability Fife Limited
LLP registration number
SO304506
Registered office
Fife House
North Street
Glenrothes
Fife
KY7 5LT
Auditor
Henderson Loggie LLP
The Stamp Office
Level 5
10 - 14 Waterloo Place
Edinburgh
EH1 3EG
Business address
Fife House
North Street
Glenrothes
Fife
KY7 5LT
Fife Resource Solutions LLP
Contents
Page
Members' report
1
Members' responsibilities statement
2
Independent auditor's report
3 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Reconciliation of members' interests
9 - 10
Notes to the financial statements
11 - 25
Fife Resource Solutions LLP
Members' report
for the year ended 31 March 2025
- 1 -

The members present their annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the limited liability partnership was the provision of waste treatment and disposal services, renewable power developments, consultancy services in climate change and renewable and resource management.

Business review

During the year the limited liability partnership made a loss before FRS 102 pension adjustments of £311 (2024 - loss of £39,083). The pre-pension profit and loss account can be seen in note 19 of the accounts.

Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

Each member is required to subscribe a capital proportion linked to their share of profit and the financing requirement s of the l imited liability partnership. There is no opportunity for appreciation of the capital subscribed.

Designated members

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

Fife Council
Sustainability Fife Limited
Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

- so far as the members are aware, there is no relevant audit information of which the limited liability partnership's auditors are unaware, and

- the members have taken all the steps that they ought to have taken as members in order to make themselves aware of any relevant audit information and to establish that the limited liability partnership's auditors are aware of that information.

Approved by the members on 2 October 2025 and signed on behalf by:
02 October 2025
Fife Council
Designated Member
Fife Resource Solutions LLP
Members' responsibilities statement
for the year ended 31 March 2025
- 2 -

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

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK 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 limited liability partnership will continue in business.

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Fife Resource Solutions LLP
Independent auditor's report
to the members of Fife Resource Solutions LLP
- 3 -
Opinion

We have audited the financial statements of Fife Resource Solutions LLP (the 'limited liability partnership') for the year ended 31 March 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the reconciliation of members' interests 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:

- give a true and fair view of the state of the limited liability partnership's affairs as at 31 March 2025 and of its loss for the year 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 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

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 limited liability partnership 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 members' 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 limited liability partnership’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 members 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 members 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.

Fife Resource Solutions LLP
Independent auditor's report (continued)
to the members of Fife Resource Solutions LLP
- 4 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships 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

- we have not received all the information and explanations we require for our audit.

Responsibilities of members

As explained more fully in the members' r esponsibilities s tatement, the members 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 members 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below.

As part of our planning process:

- We enquired of management the systems and controls the company 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. Management informed us that there were no instances of known, suspected or alleged fraud;

- We obtained an understanding of the legal and regulatory frameworks applicable to the LLP. We determined that the following were most relevant: SEPA, HSE, Data Protection Act 2018, Health and Safety; employment law (including the Working Time Directive) and compliance with the UK Companies Act.

- We considered the incentives and opportunities that exist in the LLP, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly; and

- Using our knowledge of the LLP, together with the discussions held with management 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.

Fife Resource Solutions LLP
Independent auditor's report (continued)
to the members of Fife Resource Solutions LLP
- 5 -

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Enquiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud;

- Reviewing correspondence with SEPA, HMRC and HSE;

- Reviewing board meeting minutes and legal fee expenditure;

- Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the pension liability; and

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

- Testing key revenue lines, in particular cut-off, for evidence of management bias; and

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available 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 limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them 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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

Keith Macpherson (Senior Statutory Auditor)
For and on behalf of Henderson Loggie LLP, Statutory Auditor
Chartered Accountants
The Stamp Office
Level 5
10 - 14 Waterloo Place
Edinburgh
EH1 3EG
2 October 2025
Fife Resource Solutions LLP
Profit and loss account
for the year ended 31 March 2025
- 6 -
2025
2024
Notes
£
£
Turnover
3
52,726,812
47,133,938
Cost of sales
(47,636,700)
(42,933,987)
Gross profit
5,090,112
4,199,951
Distribution costs
(308,363)
(117,435)
Administrative expenses
(5,116,081)
(4,178,322)
Operating loss
4
(334,332)
(95,806)
Interest receivable and similar income
8
80,021
53,723
Interest payable and similar expenses
9
150,000
6,000
Loss for the financial year before members' remuneration and profit shares
(104,311)
(36,083)
Members' remuneration charged as an expense
7
104,311
36,083
Result for the financial year available for discretionary division among members
-
-

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

Fife Resource Solutions LLP
Statement of comprehensive income
for the year ended 31 March 2025
- 7 -
2025
2024
£
£
Loss for the financial year available for discretionary division among members
-
-
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
(3,328,000)
3,133,000
Total comprehensive income for the year
(3,328,000)
3,133,000
Fife Resource Solutions LLP
Balance sheet
as at 31 March 2025
31 March 2025
- 8 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
828,978
250,388
Current assets
Stocks
11
93,178
87,010
Debtors
12
11,133,775
8,870,233
Cash at bank and in hand
188,092
1,309,392
11,415,045
10,266,635
Creditors: amounts falling due within one year
13
(12,526,426)
(10,799,115)
Net current liabilities
(1,111,381)
(532,480)
Total assets less current liabilities
(282,403)
(282,092)
Net assets excluding pension (liability)/surplus attributable to members
(282,403)
(282,092)
Defined benefit pension (liability)/surplus
15
(204,000)
3,228,000
Net (liabilities)/assets attributable to members
(486,403)
2,945,908
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
(8,810,403)
(8,706,092)
Members' other interests
Other reserves classified as equity
8,324,000
11,652,000
(486,403)
2,945,908
The financial statements were approved by the members and authorised for issue on 2 October 2025 and are signed on their behalf by:
02 October 2025
Fife Council
Designated member
Limited Liability Partnership registration number SO304506 (Scotland)
Fife Resource Solutions LLP
Reconciliation of members' interests
for the year ended 31 March 2025
- 9 -
Current financial year
Other reserves
Other amounts
Total
£
£
£
Members' interests at 1 April 2024
11,652,000
(8,706,092)
(8,706,092)
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
(104,311)
(104,311)
Result for the financial year available for discretionary division among members
-
-
-
Members' interests after loss and remuneration for the year
11,652,000
(8,810,403)
(8,810,403)
Actuarial gains on defined benefit plans
(3,328,000)
-
-
Members' interests at 31 March 2025
8,324,000
(8,810,403)
(8,810,403)
Fife Resource Solutions LLP
Reconciliation of members' interests (continued)
for the year ended 31 March 2025
Current financial year
Other reserves
Other amounts
Total
£
£
£
- 10 -
Prior financial year
Other reserves
Other amounts
Total
£
£
£
Members' interests at 1 April 2023
8,519,000
(8,670,009)
(8,670,009)
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
(36,083)
(36,083)
Result for the financial year available for discretionary division among members
-
-
-
Members' interests after loss and remuneration for the year
8,519,000
(8,706,092)
(8,706,092)
Actuarial gains on defined benefit plans
3,133,000
-
-
Members' interests at 31 March 2024
11,652,000
(8,706,092)
(8,706,092)
Fife Resource Solutions LLP
Notes to the financial statements
for the year ended 31 March 2025
- 11 -
1
Accounting policies
Limited liability partnership information

Fife Resource Solutions LLP is a limited liability partnership incorporated in Scotland. The registered office is Fife House, North Street, Glenrothes, Fife, KY7 5LT.

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together 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 limited liability partnership. Monetary a mounts in these financial statements are rounded to the nearest £.

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

This LLP is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this LLP, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The LLP has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.

Fife Resource Solutions LLP is a wholly owned subsidiary of Fife Council, see note 16, and the results of Fife Resource Solutions LLP are included in the consolidated financial statements of Fife Council Limited which are available from the parent company.

1.2
Going concern

Not withstanding the technical net liability position of the LLP which arises due to the pension deficit, at the time of approving the financial statements, the members have not identified any material uncertainty in respect of going concern and therefore have a reasonable expectation that the LLP has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. This is based on confirmation received from Fife Council that it will continue to support the partnership through an annual management charge, for the performance of services, and additional financial and/or cash flow support if required, and will work with Fife Resource Solutions LLP to ensure they can meet their financial liabilities as they fall due and therefore remain financially viable.

1.3
Turnover

Revenue is measured by reference to the fair value of consideration received or receivable for goods provided in the normal course of business, excluding trade discounts.

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.

Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
1
Accounting policies (continued)
- 12 -
1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the m embers' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

1.5
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:

Plant and machinery
7 to 8 years

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 recognised in the profit and loss account.

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership 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 limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
1
Accounting policies (continued)
- 13 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

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.

1.8
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The limited liability partnership 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.

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
1
Accounting policies (continued)
- 14 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the LLP after deducting all of its liabilities.

Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
1
Accounting policies (continued)
- 15 -
Basic financial liabilities

Basic financial liabilities include creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt. Financial liabilities classified as payable within one year are held at transaction price. Where the arrangement constitutes a financing transaction (extending over more than one financial year), the debt instrument is initially measured at fair value, net of transaction costs, and is subsequently measured at amortised cost using the effective interest rate method.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the LLP after deducting all of its liabilities.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.10
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.

Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
1
Accounting policies (continued)
- 16 -
1.11
Retirement benefits and post retirement payments to members

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Defined benefit pension scheme

The defined benefit pension scheme asset/liability is calculated by the pension scheme actuary in compliance with FRS 102. The actual performance is unlikely to be in line with actuarial valuation as a result of the valuation being based upon assumptions on future unpredictable events such as return on assets and materiality rates. The estimate has a material impact on the accounts and is explained in more detail in note 15.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Accruals

Management estimate requirements for accruals using post year end information and information available from detailed budgets. This identifies costs and income that are expected to be incurred or received for goods and services provided by and to other parties. Accruals are only released when there is a reasonable expectation that these costs will not be invoiced in the future.

Bad debt provision

During the course of the year and during the year end process, management are required to determine whether any debts should be regarded as bad debts. This process is based on their knowledge of the business, coupled with post year end information identifying debts not recovered relating to the previous financial period.

Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
- 18 -
3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Rendering of services
10,625,709
10,825,739
Management fee income - Cireco
24,213,193
18,002,860
Management fee income - Fife Council
17,887,910
18,305,339
52,726,812
47,133,938
2025
2024
£
£
Other significant revenue
Interest income
80,021
53,723
4
Operating loss
2025
2024
Operating loss for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
149,395
46,101
Operating lease charges
110,875
-
5
Auditor's remuneration
2025
2024
Fees payable to the LLP's auditor and associates:
£
£
For audit services
Audit of the financial statements of the LLP
20,950
19,400
6
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2025
2024
Number
Number
Commercial Operations
69
76
Non Operational Teams
18
17
Recycling Centres
38
35
Resource Recovery
104
99
Total
229
227
Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
6
Employees (continued)
- 19 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
8,511,545
7,743,828
Social security costs
806,677
753,256
Pension costs
1,700,999
1,588,657
11,019,221
10,085,741

Redundancy payments in the year amount to £14,911 (2024 - Nil)

7
Members' remuneration
2025
2024
Number
Number
Average number of members during the year
2
2
2025
2024
Members' remuneration comprises:
£
£
Remuneration under participation rights
(104,311)
(36,083)
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
80,021
53,723
9
Interest payable and similar expenses
2025
2024
£
£
Other finance costs:
Net interest on the net defined benefit liability
(150,000)
(6,000)
Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
- 20 -
10
Tangible fixed assets
Plant and machinery
£
Cost
At 1 April 2024
326,454
Additions
727,985
At 31 March 2025
1,054,439
Depreciation and impairment
At 1 April 2024
76,066
Depreciation charged in the year
149,395
At 31 March 2025
225,461
Carrying amount
At 31 March 2025
828,978
At 31 March 2024
250,388
11
Stocks
2025
2024
£
£
Raw materials and consumables
93,178
87,010
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
407,418
321,349
Amounts owed by group undertakings
10,465,464
8,186,565
Other debtors
198,387
297,122
Prepayments and accrued income
62,506
65,197
11,133,775
8,870,233
Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
- 21 -
13
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Trade creditors
682,822
314,787
Amounts owed to group undertakings
2,537,582
1,412,859
Other taxation and social security
2,222,819
1,995,818
Deferred income
14
4,303,937
4,223,515
Other creditors
2,779,266
2,852,136
12,526,426
10,799,115
14
Deferred income
2025
2024
£
£
Other deferred income
4,303,937
4,223,515
15
Retirement benefit schemes
Defined benefit schemes

Fife Resource Solutions LLP is an admitted body of the Fife Council Pension Fund. The Superannuation Fund is a defined benefit scheme into which employee and employer contributions, and interest and dividends from investments are paid and from which pensions, lump sums and superannuation benefits are paid out. Employees' contributions are tiered and employer's basic contributions are assessed every three years by an actuary and are fixed to ensure the fund remains solvent and in a position to meet its future liabilities. The actuarial method used is known as Projected Unit Credit Method.

The last actuarial valuation was carried out at 31 March 2023 and the actuary prepared his valuation at 31 March 2025 by projecting the results of that valuation forward using approximate methods. The valuation at 31 March 2025 used the principal assumptions.

Key assumptions
2025
2024
%
%
Discount rate
5.80
4.85
Expected rate of increase of pensions in payment
2.75
2.75
Expected rate of salary increases
3.25
3.25
Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
-- (continued)
- 22 -
Mortality assumptions

The assumed life expectancy on retirement at age 65 are:

2025
2024
Years
Years
Retiring today
- Males
19.1
19.2
- Females
23.1
23.1
Retiring in 20 years
- Males
20.2
20.3
- Females
24.6
24.7
Amounts recognised in the profit and loss account
2025
2024
Costs/(income):
£
£
Current service cost
1,654,000
1,587,000
Net interest on net defined benefit liability/(asset)
(570,000)
(579,000)
Other costs and income
(5,814,000)
(2,165,000)
Total costs/(income)
(4,730,000)
(1,157,000)
Amounts recognised in other comprehensive income
2025
2024
Costs/(income):
£
£
Actual return on scheme assets
(1,904,000)
(3,422,000)
Less: calculated interest element
2,328,000
2,144,000
Return on scheme assets excluding interest income
424,000
(1,278,000)
Actuarial changes related to obligations
(380,000)
2,841,000
Effects of changes in the amount of surplus that is not recoverable
18,287,000
8,670,000
Total costs
18,331,000
10,233,000
Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
-- (continued)
- 23 -

The amounts included in the balance sheet arising from the limited liability partnership's obligations in respect of defined benefit plans are as follows:

2025
2024
£
£
Present value of defined benefit obligations
32,335,000
35,683,000
Fair value of plan assets
(50,418,000)
(47,581,000)
Surplus in scheme
(18,083,000)
(11,898,000)
Restriction on scheme assets
18,287,000
8,670,000
Total liability/(asset) recognised
204,000
(3,228,000)
2025
Movements in the present value of defined benefit obligations
£
Liabilities at 1 April 2024
35,683,000
Current service cost
1,654,000
Past service cost
99,000
Benefits paid
(991,000)
Contributions from scheme members
437,000
Actuarial gains and losses
(380,000)
Interest cost
1,758,000
Other
(5,925,000)
At 31 March 2025
32,335,000
The defined benefit obligations arise from plans funded as follows:
2025
£
Wholly unfunded obligations
204,000
Wholly or partly funded obligations
32,131,000
32,335,000
Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
-- (continued)
- 24 -
2025
Movements in the fair value of plan assets
£
Fair value of assets at 1 April 2024
47,581,000
Interest income
2,328,000
Return on plan assets (excluding amounts included in net interest)
(424,000)
Plan introductions, changes, curtailments and settlements
437,000
Benefits paid
(991,000)
Contributions by the employer
1,487,000
At 31 March 2025
50,418,000

The actual return on plan assets was £1,904,000 (2024 - £3,422,000).

2025
2024
Fair value of plan assets
£
£
Equity instruments
33,780,060
31,403,460
Debt instruments
11,596,140
12,371,060
Property
2,520,900
2,379,050
Cash
2,520,900
1,427,430
50,418,000
47,581,000
16
Loans and other debts due to members
2025
2024
£
£
Analysis of loans
Amounts falling due within one year
(8,810,403)
(8,706,092)

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

17
Contingent liability

The LLP is subject to an ongoing investigation by the HSE. The LLP’s legal advisers have advised the LLP that at the reporting date, updated to the date of approval of the financial statements, the outcome of the investigation remains unknown. While it is anticipated that the outcome of the investigation will be material to the LLP and that the possibility that a financial penalty may be imposed on the LLP at a future date is not remote, legal advice indicates that at this time it is premature to assess the amount or timing of any financial penalty which may become payable.

Fife Resource Solutions LLP
Notes to the financial statements (continued)
for the year ended 31 March 2025
- 25 -
18
Related party transactions

The total remuneration of the employees, including board members, who are considered to be key management personnel of the LLP was £664,675 (2024 - £600,207).

The LLP has taken advantage of the exemption under FRS 102 paragraph 33.1A from disclosing transactions with any wholly owned undertaking of Fife Council.

Fife Councils share of the membership is 99.99%, with Sustainability Fife Limited holding the remaining 0.01%. Sustainability Fife however are wholly owned by Fife Council, therefore the entity qualifies for this exemption.

19
Ultimate controlling party

The entity's financial statements are consolidated in Fife Council's financial statements.

Largest group
Smallest group

The ultimate controlling party is Fife Council due to its share of the membership at 99.99%.

The remaining 0.01% is owed by Sustainability Fife Limited.

20
Pre FRS 102 pension adjustments profit and loss account

|  | 31 March | 31 March
|  | 202 5 | 202 4
|  | £ | £
Turnover |  | 52,726,812 | 4 7,133,937
Cost of sales |  | (4 7,636,700) | (4 4,519,646)
|  | ─────── | ───────
Gross profit |  | 5,090,112 | 2,614,291
Administrative expenses (inc. distribution expenses) |  | (5,170,444) | (2,707,097)
|  | ─────── | ───────
Operating (loss)/profit |  | (80,332) | (92,806)
Other operating income |  | 80,021 | 53,723
|  | ─────── | ───────
(L oss)/gain before pension adjustments |  | (311) | (39,083)
FRS 102 pension movements |  |  |
Service cost difference |  | (254,000) | (3,000)
Net finance cost on pension liability |  | 150,000 | 6,000
Re-measurement (loss)/ on pension |  | (3,328,000) | 3,133,000
|  | ─────── | ───────
Profit/(loss) after pension adjustments |  | 3,432,311 | 3,096,917
|  | ═══════ | ═══════

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