REGISTERED NUMBER: 03249021 (England and Wales)

Nottingham Recycling Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Income and Retained Earnings

7

Balance Sheet

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTORS:

P D Atkinson

I Gray

J H Greenwood

J Macdonald

REGISTERED OFFICE:

c/o Macfarlane Group

Siskin Parkway East

Middlemarch Business Park

Coventry

CV3 4PE

REGISTERED NUMBER:

03249021 (England and Wales)

AUDITORS:

Brooks Mayfield Limited

Chartered Accountants

12 Bridgford Road

West Bridgford

Nottinghamshire

NG2 6AB

The directors present their strategic report for the year ended 31 December 2025.

REVIEW OF BUSINESS

The principal activities of the company continue to be the collection, baling and recycling of paper and plastic-based packaging materials on behalf of customers

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider the principal risks and uncertainties facing the Company to be as follows:

- Commodity price risk - recovered paper and cardboard prices are volatile and driven by global demand; sustained price falls directly reduce revenue and margin.

- Customer based risk - loss of key customers would result in lower profitability for the Company

- Working capital requirements - management continue to monitor medium term cash requirements to ensure sufficient funding is in place to facilitate business growth

FINANCIAL KEY PERFORMANCE INDICATORS

The Company considers turnover, gross profit, and net profit to be its financial KPI's. In 2025, turnover was £1.0m (2024: £0.8m); gross profit £0.4m (2024: £0.4m) and net loss after tax £0.1m (2024: £0.3m profit).

FUTURE DEVELOPMENTS AND OUTLOOK

Notwithstanding the challenges of the last year, the Directors remain confident in the Company's medium term prospects, supported by the demand from customers for collecting of baled packaging, as part of our sustainability offering.

ON BEHALF OF THE BOARD:

J Macdonald - Director

7 August 2026

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

P D Atkinson

I Gray

J H Greenwood

J Macdonald

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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 profit or loss 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Brooks Mayfield Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J Macdonald - Director

7 August 2026

Opinion

We have audited the financial statements of Nottingham Recycling Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 December 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.

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 Statement of Directors' Responsibilities set out on page three, 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:

Discussions were held with the directors and key management personnel to obtain an understanding of the legal and regulatory framework applicable to the company and how it is complying with that framework. These discussions helped us obtain an understanding of the company's policies and procedures on compliance with laws and regulations. To support our understanding, we also reviewed any documentation regarding any instances of non compliance together with the correspondence on such matters of those charged with governance.

After obtaining such information, we designed our audit work so that appropriate tests could be devised to enable our work to cover the risk of management override of controls, including the testing of statements, transactions and documents and other adjustments for appropriateness, as well as evaluating the rationale of significant transactions outside the normal course of activity and the review of accounting estimates for bias.

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.

William Oates BA FCA (Senior Statutory Auditor)

for and on behalf of Brooks Mayfield Limited

Chartered Accountants

12 Bridgford Road

West Bridgford

Nottinghamshire

NG2 6AB

7 August 2026

TURNOVER

1,041,538

832,403

Cost of sales

601,625

442,497

GROSS PROFIT

439,913

389,906

Distribution costs

216,882

166,519

Administrative expenses

240,372

127,053

457,254

293,572

OPERATING (LOSS)/PROFIT

5

(17,341

)

96,334

Exceptional items

6

(84,222

)

236,147

(LOSS)/PROFIT BEFORE TAXATION

(101,563

)

332,481

Tax on (loss)/profit

7

(7,272

)

46,313

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(94,291

)

286,168

Retained earnings at beginning of year

603,715

317,547

RETAINED EARNINGS AT END OF YEAR

509,424

603,715

FIXED ASSETS

Tangible assets

8

834,308

615,695

CURRENT ASSETS

Stocks

9

8,673

9,440

Debtors

10

264,359

259,109

Cash at bank

93,520

63,524

366,552

332,073

CREDITORS

Amounts falling due within one year

11

526,663

180,129

NET CURRENT (LIABILITIES)/ASSETS

(160,111

)

151,944

TOTAL ASSETS LESS CURRENT LIABILITIES

674,197

767,639

PROVISIONS FOR LIABILITIES

12

154,773

153,924

NET ASSETS

519,424

613,715

CAPITAL AND RESERVES

Called up share capital

13

10,000

10,000

Retained earnings

14

509,424

603,715

SHAREHOLDERS' FUNDS

519,424

613,715

The financial statements were approved by the Board of Directors and authorised for issue on 7 August 2026 and were signed on its behalf by:

J Macdonald - Director

Cash flows from operating activities

Cash generated from operations

1

135,540

154,320

Tax paid

(8,121

)

(13,237

)

Net cash from operating activities

127,419

141,083

Cash flows from investing activities

Purchase of tangible fixed assets

(412,628

)

(220,279

)

Sale of tangible fixed assets

77,664

-

Net cash from investing activities

(334,964

)

(220,279

)

Cash flows from financing activities

Intra-group loans

237,541

1,532

Net cash from financing activities

237,541

1,532

Increase/(decrease) in cash and cash equivalents

29,996

(77,664

)

Cash and cash equivalents at beginning of year

2

63,524

141,188

Cash and cash equivalents at end of year

2

93,520

63,524

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

29.2.24

Year Ended

to

31.12.25

31.12.24

£

£

(Loss)/profit before taxation

(101,563

)

332,481

Depreciation charges

126,016

67,510

Profit on disposal of fixed assets

(9,665

)

-

14,788

399,991

Decrease/(increase) in stocks

767

(1,812

)

Decrease in trade and other debtors

2,871

11,540

Increase/(decrease) in trade and other creditors

117,114

(255,399

)

Cash generated from operations

135,540

154,320

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

93,520

63,524

Period ended 31 December 2024

31.12.24

29.2.24

£

£

Cash and cash equivalents

63,524

141,188

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

63,524

29,996

93,520

63,524

29,996

93,520

Total

63,524

29,996

93,520

1.	STATUTORY INFORMATION

Nottingham Recycling Limited is a private company, limited by shares , 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 (£).

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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.	EMPLOYEES AND DIRECTORS

Period

29.2.24

Year Ended

to

31.12.25

31.12.24

£

£

Wages and salaries

255,293

205,114

Social security costs

26,096

16,775

Other pension costs

14,442

10,689

295,831

232,578

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

Period

29.2.24

Year Ended

to

31.12.25

31.12.24

Directors

4

4

Warehousing

4

4

Transportation

4

4

Administration

3

3

15

15

Period

29.2.24

Year Ended

to

31.12.25

31.12.24

£

£

Directors' remuneration

-

-

5.	OPERATING (LOSS)/PROFIT

The operating loss (2024 - operating profit) is stated after charging/(crediting):

Period

29.2.24

Year Ended

to

31.12.25

31.12.24

£

£

Depreciation - owned assets

126,016

67,510

Profit on disposal of fixed assets

(9,665

)

-

Auditors' remuneration

5,000

4,900

6.	EXCEPTIONAL ITEMS

Period

29.2.24

Year Ended

to

31.12.25

31.12.24

£

£

Exceptional items

(84,222

)

236,147

During the period ended 31 December 2024 exceptional costs were no longer incurred by the company following a fire at the premises caused by a third party in 2022. The reversal of provisions previously made, insurance receipts, and final costs were accounted for in the year ended 31 December 2024 to create net income of £236,147.

However, during the year ended 31 December 2025 actual costs were incurred and further cost provisions were felt necessary to make, for a total cost of £84,222.

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

Period

29.2.24

Year Ended

to

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

(8,121

)

8,121

Deferred tax

849

38,192

Tax on (loss)/profit

(7,272

)

46,313

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax (credit)/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:

Period

29.2.24

Year Ended

to

31.12.25

31.12.24

£

£

(Loss)/profit before tax

(101,563

)

332,481

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

(25,391

)

83,120

Effects of:

Expenses not deductible for tax purposes

20,000

-

Income not taxable for tax purposes

-

(36,807

)

Capital allowances in excess of depreciation

(56,533

)

(38,192

)

Deferred tax

849

38,192

Tax losses carried forward

53,803

-

Total tax (credit)/charge

(7,272

)

46,313

8.	TANGIBLE FIXED ASSETS

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 January 2025

1,093,400

104,750

1,198,150

Additions

412,628

-

412,628

Disposals

(70,142

)

-

(70,142

)

At 31 December 2025

1,435,886

104,750

1,540,636

DEPRECIATION

At 1 January 2025

507,206

75,249

582,455

Charge for year

118,641

7,375

126,016

Eliminated on disposal

(2,143

)

-

(2,143

)

At 31 December 2025

623,704

82,624

706,328

NET BOOK VALUE

At 31 December 2025

812,182

22,126

834,308

At 31 December 2024

586,194

29,501

615,695

9.

STOCKS

31.12.25

31.12.24

£

£

Stocks

8,673

9,440

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.25

31.12.24

£

£

Trade debtors

199,571

196,760

Other debtors

8,121

-

VAT

-

21,873

Prepayments and accrued income

56,667

40,476

264,359

259,109

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.25

31.12.24

£

£

Trade creditors

95,799

21,566

Amounts owed to group undertakings

288,951

51,410

Corporation tax payable

-

8,121

VAT

10,041

-

Accruals and deferred income

131,872

99,032

526,663

180,129

12.	PROVISIONS FOR LIABILITIES

31.12.25

31.12.24

£

£

Deferred tax

154,773

153,924

Deferred

tax

£

Balance at 1 January 2025

153,924

Provided during year

849

Balance at 31 December 2025

154,773

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.25

31.12.24

value:

£

£

10,000

Ordinary

£1

10,000

10,000

14.

RESERVES

Retained

earnings

£

At 1 January 2025

603,715

Deficit for the year

(94,291

)

At 31 December 2025

509,424

15.	CONTINGENT LIABILITIES

During the year ended 28th February 2022 a fire took place at the premises, caused by a third party, in which fixed assets were destroyed and costs such as site clearance fees and professional fees were incurred. At the signing of these accounts it still cannot be reasonably or reliably predicted or quantified whether any more costs or whether a financial claim against the third party to recover the costs will be successful.

16.	CONTROLLING PARTY

At the 31 December 2025 the parent company of Nottingham Recycling Limited is Macfarlane Group UK Limited, whose registered office is Siskin Parkway East, MIddlemarch Business Park, Coventry, CV3 4PE. The ultimate controlling party is Macfarlane Group PLC whose registered office is 3 Park Gardens, Glasgow, G3 7YE.