REGISTERED NUMBER: 03368008 (England and Wales)

FCC Communities Foundation Limited

Strategic Report,

Report of the Directors and

Financial Statements

For The Year Ended

31st March 2025

Page

Company Information

1

Strategic Report

2

to

4

Report of the Directors

5

Report of the Independent Auditors

6

to

7

Statement of Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

13

to

17

DIRECTORS:

Mr G Allen

Mrs S A Scott

Mrs J A Fourcade

Ms C H Sambridge

Mr C J Ellis

REGISTERED OFFICE:

8 Hopper Way

Diss

Norfolk

IP22 4GT

REGISTERED NUMBER:

03368008 (England and Wales)

AUDITORS:

TC Group

Suite 4

New Kings Court

Tollgate

Eastleigh

SO53 3LG

SOLICITORS:

Fisher Jones Greenwood LLP

Charter Court, Newcomen Way

Severalls Business Park

Colchester

Essex

CO4 9YA

The Directors present their strategic report for the year ended 31 March 2025.

The purpose of the Strategic Report is to inform stakeholders in the Landfill Communities Fund (LCF) and Scottish Landfill Communities Fund (SLCF) and to help them assess how the directors have performed their duty under section 172 (duty to promote success of the company).

REVIEW OF BUSINESS

The 2024/25 financial year saw a further decline in LCF income but saw the SLCF income grow slightly. The financial year ended with the business receiving £4,251,683.75 in LCF income, which was slightly ahead of forecast, albeit only by £120,314.91. This is still a reduction of £715,561.25 on the previous financial year. It also received £439,384.96 in SLCF income, which was £79,838.33 ahead of forecast and is £16,388.93 up on the previous financial year. With a combined income in excess of £4,500,000, the business is still in a stable financial position.

Although the Bank of England begun to cut interest rates during the 2024/25 financial year, the base rate was still at 4.5% on 31st March 2025. This saw the business ending the financial year having generated £156,315.75 in interest earnings. The Board took the decision to give the interest earnings away as Gift Aid and awarded £150,000 to the three Gift Aid beneficiaries listed below:

1. Sheffield and Rotherham Wildlife Trust

2. Woodland Trust

3. RSPB

During the 2024/25 financial year the business has agreed a deal with Severn Waste Services which will see it start to manage and distribute all of the LCF money generated by Severn Waste Services. This represents a new income stream for FCC Communities Foundation and will result in the business receiving an additional £300,000 of LCF income to manage and distribute in Herefordshire and Worcestershire. This additional income is positive and comes at a time when LCF income is gradually declining, giving the business a boost and ensuring that it continues to be sustainable.

LCF

Autumn Budget Statement - October 2024

As part of the Autumn Budget announcement in October 2024, the Chancellor of the Exchequer, Rachel Reeves announced the following in relation to the Landfill Communities Fund (LCF):

1. The government has reduced the forecast value of the LCF for 2024-2025 down from £30.6m to £23.6m

2. The diversion rate for contributors from Landfill Operators will remain at 5.3%

3. The confirmation of the ENTRUST Levy for 2025-26 is set as 4.05% up from 2.93% in 2024-25

Entrust added the following additional statement on their website:

'We remain committed to reducing our cost base. Following the initiatives taken to restructure the ream and relocate the office in January 2024, our revised resource requirement will continue a downward trajectory while enabling us to deliver an economic, efficient and effective regulatory service to HMRC.'

This was published by ENTRUST on their website on 31st October 2024.

Spring Budget Statement - March 2025

Entrust published a News Update in March 2025 following the Spring Budget Statement briefing the sector on a change to the Entrust Levy for the 2025-26 financial year.

The following extract is lifted from the Entrust News Update:

'Levy

Following the announcement in October that the expected value of the fund for 2025/2026 had dropped significantly to £23.6m (last year the expected value was £30.6m) we asked HMRC if we could review the Levy Percentage.

We have made significant cost savings in our overheads but due to the drop in expected contributions our savings didn't have the desired impact on the levy percentage which went up above 4%.

Since receiving the new value of the fund we have revised our costs down again and as a result HMRC have revalued the levy.

Due to this recalculation, the value of the fund has moved up slightly to £23.8m and combined with our extra cost savings, the levy for 2025/2026 will now be 3.78%.'

Performance against Key Targets

HMRC, through ENTRUST, is continuing to monitor the level of uncommitted funds held and unspent funds held by Environmental Bodies, as well as the level of overheads costs being incurred by Environmental Bodies across the sector. Environmental Bodies are expected to continue to reduce the level of uncommitted and unspent funds being held and to contain their administration costs to within 7.5% cost to spend. They are also expected to limit the amount of funds held to no more than 1.5 times the total amount of income they receive across a single financial year.

The level of unspent LCF funds held by the business on 31st March 2025 reduced by £2,633,655 on the previous financial year, down from £7,794,235 to £5,160,580.28. This is well within the 1.5 times the total annual income received target, against which the performance of the business is measured. The level of uncommitted LCF funds held by the business on 31st March 2025, (less contingency), reduced by £327,430 down to £13,392. This represents a positive step forward and clearly demonstrates that the business is committing and spending the funds it receives. It is also a reflection of the fact that the business continued to see a steady decline in income over the course of the financial year. The Directors are comfortable with the level of unspent funds held and are pleased with the progress that has been made to reduce the level of uncommitted funds held. The company committed £5,214,170.48 to new projects in England, (not including the additional £150,000 awarded to the three Gift Aid beneficiaries), and a further £555,952.05 to new projects in Scotland in the 2024-25 financial year.

The Board agreed not to launch a fourth round of the Flagship Funding programme for the 2025/26 financial year due to the reduction in income.

LCF overhead costs were contained at 6.21% cost to spend, against a target of no more than 7.5%.

SLCF

Contributions to the SLCF have continued to fall, with less waste going to landfill. In 2025/26 we are expecting something in the region of £2.4 million being contributed to the SLCF, in accordance with the Scottish Fiscal Commission predictions for the year. (Data provided by SEPA).

FCC Communities Foundation experienced a slight increase in income in Scotland during the 2024-25 financial year, seeing income increase from £422,996 in the 2023-24 financial year, up to £439,385 at the end of the 2024-25 financial year. SLCF overhead costs were reported as being at 10.42% cost to income for the financial year, however SEPA average out the overhead costs since the start of the SLCF, which means that the overhead costs were accepted by SEPA as being 8.39% cumulative and therefore within the target set by SEPA of 10% cumulative cost to income.

The business is forecasting that income will remain broadly the same in Scotland for the forthcoming financial year up to 31st March 2026.

The Scottish Government is currently collecting evidence to inform possible options for the future of the fund following the introduction of the Biodegradable Municipal Waste ban on the 31st December 2025. As part of this exercise, the Scottish Government has launched a consultation which is seeking views to inform decision making on the future of the SLCF from April 2026 onwards. The consultation was launched on the 14th March 2025 and will run for 12 weeks offering key stakeholders an opportunity to give their views and ideas as to the future of the SLCF. FCC Communities Foundation will be submitting a formal response.

EXECUTIVE SUMMARY

After consideration of the results for the year, the Directors feel that the company has performed well with all the key targets set by HMRC having been met.

This assessment is based on the following key performance indicators (KPI's)* of the financial performance. The KPI's have been split into LCF and SLCF as FCC Communities Foundation reports to ENTRUST for its business activity in England and SEPA for its business activity in Scotland:

LCF

SLCF

Landfill tax credit income received

£4,251,684

£439,385

Operating costs for the business

£404,259

£45,787

Cost to spend ratio (%)

6.21%

N/A

Cost to income ratio (%)

N/A

10.42%

New Grant commitments made during the year

£5,364,170

£555,952

Commitment Balance at the year end

£4,934,688

£590,208

Project spend during the year

£7,068,774

£301,019

Level of write backs during the year

£451,622

£99,571

Level of unspent funds held at the end of the year

£5,160,580

£773,253

Level of uncommitted funds held at the end of the year

£13,392

£145,546

Level of funds retained for wind up of the business

£212,500

£37,500

*The above data is based on a cash basis as required by and reported to ENTRUST and SEPA as at 31 March 2025.

During this financial year the company has received and processed 159 new LCF project applications and 54 new SLCF project applications. Of the new project applications received and processed, 79 LCF projects and 21 SLCF projects were awarded funding. The total amount committed to new projects through the LCF was £5,364,170 and the total amount committed to new projects through the SLCF was £555,952.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks are:

- The diversion rate for both the LCF and SLCF not being adjusted to maintain the annual value of the two funds

- The Chancellor reallocating some of the money currently allocated to the LCF to other governmental priorities

- The Chancellor announcing the end of the LCF

- Revenue Scotland announcing the end of the SLCF

FINANCIAL RISK MANAGEMENT

The FCC Communities Foundation Board has responsibility for the company's liquidity and financial risk.

The Directors are committed to keeping the level of unspent funds held and the level of uncommitted funds held to a minimum. This is monitored monthly.

The Board has a policy of not forward committing funds based on financial projections and is therefore always in a position to meet its liabilities in the event of the closure of the LCF and/or SLCF.

An annual winding up provision is made in the budget. This is per ENTRUST guidance and the costs allowed are for the wind down of the business if it were to cease trading prior to the end of the LCF/SLCF.

PEOPLE

FCC Communities Foundation employs 6 full-time and 1 part-time members of staff.

The number of people employed by the business has reduced by one full-time position since the last set of annual accounts was filed. The Grant Administrator retired at the end of October 2024.

The number of staff employed by the company is expected to remain static throughout the 2025-26 financial year.

ON BEHALF OF THE BOARD:

Mr G Allen - Director

8th December 2025

The directors present their report with the financial statements of the company for the year ended 31st March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of operating as an Environmental Body under the Landfill Tax Regulations 1996 in England and an Approved Body in Scotland, to receive, distribute and spend Landfill Communities Fund and Scottish Landfill Communities Fund monies.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st April 2024 to the date of this report.

Mr G Allen

Mrs S A Scott

Mrs J A Fourcade

Ms C H Sambridge

Mr C J Ellis

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr G Allen - Director

8th December 2025

Opinion

We have audited the financial statements of FCC Communities Foundation Limited (the 'company') for the year ended 31st March 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and 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 company's affairs as at 31st March 2025 and of its deficit 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page five, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

- we have performed our own assessment of the susceptibility of the financial statements to material misstatement, including how fraud may occur, and concentrated our audit work in these areas in order to detect any material misstatements which may exist.

- we had a planning meeting with management prior to performing the audit to obtain an understanding of the entity's policies and procedures on compliance with laws and regulations, including enquiring whether there were any instances of non-compliance.

- we had a planning meeting with management prior to performing the audit to obtain an understanding of the entity's risk assessment process, including obtaining managements assessment of the risk of fraud, and knowledge of any actual, suspected or alleged fraud instances during the year

- we tested a number of journals and obtained and evaluated the business rationale for any which appear unusual or outside the company's normal course of business;

- we performed a preliminary analytical review of the financial statements and used this to direct further audit testing

- we performed substantive testing of all material balances at year end and also performed substantive testing of other transactions during the year

Our audit did not identify any matters relating to the detection of irregularities including fraud.

However, because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Gillespie FCCA (Senior Statutory Auditor)

for and on behalf of TC Group

Suite 4

New Kings Court

Tollgate

Eastleigh

SO53 3LG

12th December 2025

INCOME

4

4,551,195

5,075,659

Other operating income

-

10,205

4,551,195

5,085,864

Staff costs

5

321,361

341,502

Depreciation

2,205

1,542

Other operating expenses

4,908,905

7,337,646

5,232,471

7,680,690

(681,276

)

(2,594,826

)

Interest receivable and similar income

156,418

171,617

DEFICIT BEFORE TAXATION

7

(524,858

)

(2,423,209

)

Tax on deficit

8

1,219

4,107

DEFICIT FOR THE FINANCIAL YEAR

(526,077

)

(2,427,316

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(526,077

)

(2,427,316

)

FIXED ASSETS

Tangible assets

9

1,981

4,186

CURRENT ASSETS

Debtors

10

837,988

949,563

Cash at bank

11

5,933,833

8,496,898

6,771,821

9,446,461

CREDITORS

Amounts falling due within one year

12

5,581,721

7,732,489

NET CURRENT ASSETS

1,190,100

1,713,972

TOTAL ASSETS LESS CURRENT LIABILITIES

1,192,081

1,718,158

RESERVES

Income and expenditure account

13

1,192,081

1,718,158

1,192,081

1,718,158

The financial statements were approved by the Board of Directors and authorised for issue on 8th December 2025 and were signed on its behalf by:

Mr G Allen - Director

Retained

Total

earnings

equity

£

£

Balance at 1st April 2023

4,145,474

4,145,474

Changes in equity

Total comprehensive income

(2,427,316

)

(2,427,316

)

Balance at 31st March 2024

1,718,158

1,718,158

Changes in equity

Total comprehensive income

(526,077

)

(526,077

)

Balance at 31st March 2025

1,192,081

1,192,081

Cash flows from operating activities

Cash generated from operations

1

(2,715,363

)

(2,274,561

)

Tax paid

(4,120

)

(572

)

Net cash from operating activities

(2,719,483

)

(2,275,133

)

Cash flows from investing activities

Purchase of tangible fixed assets

-

(4,035

)

Interest received

156,418

171,617

Net cash from investing activities

156,418

167,582

Decrease in cash and cash equivalents

(2,563,065

)

(2,107,551

)

Cash and cash equivalents at beginning of year

2

8,496,898

10,604,449

Cash and cash equivalents at end of year

2

5,933,833

8,496,898

1.	RECONCILIATION OF DEFICIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Deficit before taxation

(524,858

)

(2,423,209

)

Depreciation charges

2,205

1,542

Finance income

(156,418

)

(171,617

)

(679,071

)

(2,593,284

)

Decrease in trade and other debtors

111,575

318,991

Decrease in trade and other creditors

(2,147,867

)

(268

)

Cash generated from operations

(2,715,363

)

(2,274,561

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31st March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

5,933,833

8,496,898

Year ended 31st March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

8,496,898

10,604,449

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank

8,496,898

(2,563,065

)

5,933,833

8,496,898

(2,563,065

)

5,933,833

Total

8,496,898

(2,563,065

)

5,933,833

1.	STATUTORY INFORMATION

FCC Communities Foundation Limited is a private company, limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£) rounded to the nearest pound.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget, Government announcements and future cash flows in making their assessment. Based on these assessments, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Income

Income represents landfill tax credits payable by Landfill Operators under the Landfill Tax Regulations 1996. The percentage of the total landfill tax liability which a Landfill Operator is able to transfer to their nominated Environmental Body is referred to as the diversion rate. The diversion rate is set by the Chancellor of the Exchequer and announced in the Budget. For the financial year to 31 March 2025 the diversion rate was set at 5.3%.

Income is recognised when received from the Landfill Operator as it is at that point the Company takes control over those funds to meet the Objects of the Landfill Communities Fund. Any funds yet to be awarded can be rolled forward into the undistributable reserves to be used in future years to meet the Company's objectives.

Grants committed

The company accounts for grants committed in the income and expenditure account once the award of the grant has been approved by the board of directors and the applicant has been advised of the success of their application and present a Grants agreed liability as the recipient is entitled to commence draw down the approved funds. .

Release of grants committed.

When a grant is approved the applicant has 12 months to complete the project and claim the grant. Each year a number of grants are not claimed or fail to meet the criteria to be claimed within the 12 month period. Amounts committed but unspent are deducted from Expenditure at the earlier of the point the claim is completed and the end and the 12 month grant period.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

33% on cost

Computer equipment

-

33% on cost

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.

Financial assets that are measured at cost and amortised 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 Income statement.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet 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.

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

The company gifts aid any taxable profit to Registered Charities.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

4.

INCOME

The income and deficit before taxation are attributable to the one principal activity of the company.

An analysis of income by class of business is given below:

2025

2024

£

£

Landfill tax credits

4,551,195

5,075,659

4,551,195

5,075,659

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

280,961

285,251

Social security costs

18,083

32,954

Other pension costs

22,317

23,297

321,361

341,502

The average number of employees during the year was as follows:

2025

2024

Administration

8

8

The remuneration of key management personnel amounted to £91,535 (2024 - £90,226).

2025

2024

£

£

Directors' remuneration

1,998

3,156

6.	RELEASE OF GRANTS COMMITTED

2025

2024

£

£

Release of grants committed

551,193

525,929

When a grant is approved the applicant has 12 months to complete the project and claim the grant. Each year a number of grants are not claimed or fail to meet the criteria to be claimed within the 12 month period. When this happens, the grant is written off and the money is released back into the income and expenditure account so that it can be re-committed to a new project.

7.	DEFICIT BEFORE TAXATION

The deficit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

2,205

1,542

Auditors' remuneration

9,538

8,970

8.

TAXATION

Analysis of the tax charge

The tax charge on the deficit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

1,219

4,107

Tax on deficit

1,219

4,107

UK corporation tax has been charged at 19% (2024 - 19%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Deficit before tax

(524,858

)

(2,423,209

)

Deficit multiplied by the standard rate of corporation tax in the UK of 19% (2024 - 19%)

(99,723

)

(460,410

)

Effects of:

Income and expenses not deductible for tax purposes

129,442

493,017

Gift Aid

(28,500

)

(28,500

)

Total tax charge

1,219

4,107

The Company has no taxable trading profit and it is only taxed on interest received.

9.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1st April 2024

3,784

12,547

16,331

Disposals

(3,784

)

-

(3,784

)

At 31st March 2025

-

12,547

12,547

DEPRECIATION

At 1st April 2024

3,784

8,361

12,145

Charge for year

-

2,205

2,205

Eliminated on disposal

(3,784

)

-

(3,784

)

At 31st March 2025

-

10,566

10,566

NET BOOK VALUE

At 31st March 2025

-

1,981

1,981

At 31st March 2024

-

4,186

4,186

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

806,525

946,395

Prepayments

31,463

3,168

837,988

949,563

11.	CASH AT BANK

2025

2024

£

£

Bank deposit account

4,190,561

6,611,909

Bank current account

1,743,272

1,884,989

5,933,833

8,496,898

The balance held in a term deposit is not expected to be recalled with in the terms of the deposit.

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Corporation tax

1,206

4,107

Social security and other taxes

9,675

10,662

Other creditors

5,072

2,352

Grants agreed by the board but

not paid

5,524,895

7,675,758

Accrued expenses

40,873

39,610

5,581,721

7,732,489

13.

RESERVES

Income

and

expenditure

account

£

At 1st April 2024

1,718,158

Deficit for the year

(526,077

)

At 31st March 2025

1,192,081

The income and expenditure account represents cumulative surpluses of landfill tax credits received over grants committed and operating expenses. This surplus is a result of timing differences between the date that landfill tax credits are received and the date that grant commitments are approved by the board of directors.The amount of reserves are within the limit set by Entrust and SEPA to roll forward to be used in future years to meet the Company's objectives as an Environmental Body.

The company is limited by guarantee and has no share capital. Every director undertakes to contribute such amounts as may be required (not exceeding £1) to the company's assets if it should be wound up while they are a director or within one year after they cease to be a director. There were 5 directors as at the year ended 31 March 2025 (2024 - 5).

The reserves are not distributable to directors as the company is prevented by its Memorandum from paying dividends, bonuses or other distributions to the directors of the company.

14.	CONTINGENT LIABILITIES

At the year end there's a contingent liability of £250,000 (2024 - £250,000). This is an estimate of the total level of funds required to wind up the company at the end of the scheme, in respect of redundancies, insurance and legal costs and as reported at each year end to Entrust and SEPA.