The trustees present their annual report and financial statements for the year ended 31 March 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note to the financial statements and comply with the charity's memorandum and articles of association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
KRL has a distinctive set of charitable objectives designed to benefit both the people of Kintyre and the environment:
To promote and preserve the natural environment for the benefit of the general public and in particular to promote, advance, manage and effect the provision, development and improvement of facilities for waste minimisation, and to assist in the adoption of practices which are directed towards reducing unnecessary depletion of natural resources and/or reducing the volume of non-recycled waste.
To promote education in the field of waste management and, in particular to collate information and carry out research in that field and disseminate such information and the results of such research, all with a view to encouraging the use of more sustainable waste management practices.
To relieve poverty among the residents of Kintyre ("the Operating Area") and in particular individuals suffering from mental/physical disability, illness or impairment.
To promote and/or provide training in skills of all kinds, particularly such skills as will assist residents of the Operating Area in obtaining paid employment.
To promote, establish and operate other schemes of a charitable nature for the benefit of the community within the Operating Area.
Kintyre Recycling does not give grants or make social or programme-related cash investments. Rather, its employees and volunteers invest time in promoting environmental awareness, and the company itself provides Community Service and Employability Scheme placement opportunities.
Kintyre Recycling’s main partner organisations include:
Argyll & Bute Council - major customer in the School Uniform scheme
Nathans Wastesavers Ltd - major customer
InspirAlba - supplier of inspiration and support with our funding bids
Textile collections
KRL has seen strong growth this year, rising from an initial income of £7.5k per month in 2023 to an estimated £8.5k per month in 2024. Collection weights now average up to 16 tons monthly. This growth reflects our continued partnership with Nathans Waste Savers Ltd, which has enabled KRL to expand its textile recovery year on year.
We continue to collect from:
• Over 30 schools
• 11 charity shops
• 17 recycling bin sites
Security Shredding
Our secure shredding service continues to operate across Campbeltown, Tarbert, Mid-Argyll, Oban, and the Cowal peninsula. Key clients include local SMEs, J & A Mitchell & Co Ltd, and Argyll Community Housing Association (ACHA), who remain among our longest-standing customers.
South Kintyre Preloved School Uniforms
The Preloved School Uniform Project was launched in early 2022 in South Kintyre, led by Argyll and Bute Council in partnership with Kintyre Recycling and InspirAlba. Eight nurseries and primary schools initially took part, laying the foundation for a growing network of support.
The project secured match funding from The Robertson Trust, Campbeltown Community Wind Farm (CCWF), East Kintyre Wind Farm Trust (EKWT), and J & A Mitchell & Co Ltd.
Project Aims:
The initiative supports Argyll and Bute Council’s wider objectives while promoting employability in South Kintyre. Its core aims are to:
• Advance progress toward net zero by encouraging uniform reuse within the circular economy
• Help families reduce household costs by providing free preloved uniforms
• Create employment opportunities for individuals furthest from the labour market
The project also works to shift attitudes around clothing reuse, helping to remove stigma and normalise sustainable practices. With pupils wearing consistent uniforms across schools, the opportunity for reuse is significant.
In 2023 - 2024, KRL collected 600 items of school uniform, donating around 500 pieces to 129 children in South Kintyre, reaching approximately 1 in 6 local pupils.
Looking ahead, the project aims to strengthen collaboration with schools and expand to include Campbeltown Grammar School and Tarbert Academy, as well as increase visibility at school events.
The initiative continues to grow in popularity, with a streamlined online ordering system and flexible collection options at participating schools or Hazelburn Business Park.
Following three successful years, we are pleased to continue supporting the School Uniform Reuse Project in partnership with Argyll and Bute Council and InspirAlba, with continued support from our match funders.
In the remainder of 2025 and early 2026, we aim to expand the number of participating schools, further reducing the volume of clothing sent to landfill and supporting local families affected by the cost-of-living crisis.
Kintyre e-Bike Hire
The bike centre at Hazelburn Business Park offers e-bikes and normal pedal bikes for hire. We have fully qualified Bike Mechanics who provide Bronze, Silver and Gold Bike Servicing for Pedal Bikes. There is also a small retail selection of bike parts for sale to the public. Kintyre e-Bikes is a great asset to the community, the bike centre currently runs daily during the summer tourism season, and book by appointment bike servicing and bike hire in the winter months.
Cycling Initiatives & Wheel Wise Project
We continue to partner with Ticket to Ride, Inverness, offering bike hire and collection service from Campbeltown, Oban, Fort William and Inverness and likewise these shops can use KRL as a drop off pick up point, promoting the NC 78 route. This has been particularly popular and increased our bike hire through the summer 2024 season.
We also continue to partner with Nevis Cycles and Oban Cycles to offer bike hire along the full 234-mile Caledonia Way, a long-distance cycling route through Scotland’s scenic countryside.
To support year-round viability for the bike centre beyond the summer season, we piloted the Wheel Wise project in 2024 in collaboration with Campbeltown Grammar School. This initiative enables our bike mechanic to engage with pupils aged 12 and over who are struggling in mainstream education, offering hands-on learning and practical skills.
The charity provided repair support at the three Mull of Kintyre Triathlon events throughout 2024.
Looking ahead, we will continue working with local partners to:
Promote cycling as a sustainable mode of transport
Reduce our local carbon footprint
Establish a community cycle group
Offer led rides to support health and wellbeing
Bengullion Road Site
KRL continues to rent out the land at Bengullion Road and we currently have leases agreed and tenants in two spaces with a further one available.
During the year there was an overall surplus arising of £32,895 (2024: deficit of £9,845) arising on charitable activities with an unrestricted surplus being £14,142 (2024: deficit of £1,737). At the balance sheet date total funds amounted to £67,717 with the unrestricted fund balance being £14,523.
The balance of unrestricted funds is clearly below the level the Trustees deem necessary to meet continuing unrestricted activities. However they have now carried out a full forecast over the upcoming couple of years and believe sufficient funding will be obtained from existing and new activities to address any funding issues going forward.
Under the Memorandum and Articles of Association, the organisation has the power to make any investments, which the directors see fit. The directors have not implemented a specific investment policy during the year.
Other Risks
The Board of Directors have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.
In particular, the charity has detailed financial procedures in place. Cheque signatories will only be drawn from senior staff and directors and any new signatory must be approved by the board. All cheques for £500 and over, and all salary payments, require two authorised signatories.
Kintyre Recycling has a regularly reviewed Health & Safety policy, which is considered to cover all major risks. The company received a satisfactory rating following its last professional safety inspection.
Plant and equipment is checked annually by agents of the company's insurers.
Independent Examiners
The company does not require full audited accounts as it is under £500,000 turnover threshold. Rather, the annual accounts are independently examined. A resolution proposing that Iain Webster CA of Goldwells (Argyll) Ltd be reappointed as independent examiner of the company will be put to the members at the AGM.
Bike hire and bike repair centre
The bike shop had to find a way to survive out of summer season to be financially viable. We have raised funding to run the Wheel Wise project through 2025. This project will help the bike centre be viable all year round asset for tourism and the local community.
We will be attending various events throughout the year to engage with the public and advertise our growing services, including providing repair support at the three Mull of Kintyre Triathlon events taking place throughout 2025.
Moving forward we will continue to work with local partners to promote cycling, to show that cycling can be used as an alternative transport mode and help reduce our local carbon foot print, set up a cycle group and offer cycle led rides for the health and well-being for our users.
School Uniform project
Following a successful pilot, we have agreed to continue supporting the School uniform re-use project with Argyll and Bute Council and InspirAlba. We are looking forward to increasing the number of schools participating in this project, further reducing the amount of clothes being sent to landfill and helping local families struggling with the cost of living crisis.
Textiles and Security Shredding
We are continuing to expand and develop our network of textile and security shredding collections into 2025/26.
The charity is a company limited by guarantee having no share capital and is a registered charity for the purpose of Section 505 of the Income and Corporation Taxes Act 1988.
Kintyre Recycling is governed by a voluntary Board of Trustees. None of the trustees have any beneficial interest in the company.
For the purpose of company law the Trustees also serve as and are referenced as Directors.
No persons external to the charity may appoint trustees.
Strategic decisions are made either by the Board of Directors or at a company General Meeting, in accordance with the company's Memorandum and Articles of Association. Advice and support flows freely between the Management Team and the Board of Directors.
If new directors are required, the existing directors and members are asked actively to seek out suitable local individuals who are sympathetic to the aims of the charity and who would be able to contribute to the charity’s future. Adverts are also placed in local and social media.
Following an appointment, an introduction to the Company and its operating procedures is given by an established Director, the Company Secretary or the Business Manager. This includes details of the duties and responsibilities of a director, finances, financial and personnel procedures, health and safety, the general ethos of the Company and details of how the company operates on a day to day basis. A tour of the operations is included, and the Director is introduced to all the staff. Any further training is assessed with the Director.
The Trustees, who are also the directors for the purpose of company law, who served during the year and up to the date of signature of the financial statements were:
A Board recruitment campaign was launched at the beginning of the financial year. Leaflets were produced and we also ran an advert on our social media pages. The Business Manager is responsible for all day to day decisions with support from the Board of Trustees, one bike mechanic, one driver and one therapeutic worker.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 March 2025, which are set out on pages 7 to 20.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Kintyre Recycling Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Workshop 2, Hazelburn Business Park, Campbeltown, ARGYLL, PA28 6HA.
The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income from government and other grants, whether 'capital' or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the funds have been met, it is probable that the income will be received and the amount can be measured reliably and is nor deferred.
Income received in advance of the provision of a specified service deferred until the criteria for income recognition are met.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
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:
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 statement of financial activities.
At each reporting end date, the charity 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).
Cash and cash equivalents 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.
The charity 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 charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
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.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
General funds are unrestricted funds which are available for use at the discretion of the directors in furtherance of the general objectives of the charity.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for a specific purpose.
In the application of the charity’s accounting policies, the trustees 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.
Activities for generating funds
Performance Related Grants
RF = restricted grant income available for specific purposes.
UF= unrestricted grant available to cover general expenditure.
None of the directors or any persons connected with them, received any remuneration or expenses during the year.
The average monthly number of employees excluding trustees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income is included in the financial statements as follows:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The balances remaining on the Energy Saving Trust (£4,163), the Big Lottery Fund - E-bikes (£3,316) and CCWF - E-bikes (£1,764) are the depreciation adjusted balances for fixed assets purchased in previous years in accordance with the funding bids. These balances are reducing as these assets are depreciated.
Other funding:
Bike project
Funding was received during the year to meet running costs for this project as follows:
£4,000 was received from Campbeltown Community Wind Farm Trust for the Wheel Wise project to be spent in 2025/26.
£2,500 was received from Fern Cour Community Fund for the Wheel Wise project to be spent in 2025/26.
£1,500 was received from Campbeltown Grammar School to be used in 2025/26.
£839 was received from Community Cycling Ardrishaig from there closure and is to be used to repair bikes donated.
£18,760 was received from InspirAlba to meet salary costs for the project.
School Uniform project
Funding was received during the year to meet running costs for this project as follows:
£8,000 received from the Robertson Trust.
£4,000 received from Campbeltown Community Wind Farm Trust.
£22,406 received from Argyll & Bute Council.
£484 received from Argyll & Bute Council for the purchase of equipment.
The above funding is in addition to brought forward funding expensed during the year for year 3 of this project (which has another year to run).
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2024 - none).