Registration number:
OPRL Limited
(A company limited by guarantee)
for the Year Ended 30 June 2023
OPRL Limited
Contents
Company Information |
|
Directors' Report |
|
Limited Assurance Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
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Profit and Loss Account |
|
Statement of Comprehensive Income |
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Balance Sheet |
|
Statement of Changes in Equity |
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Notes to the Financial Statements |
OPRL Limited
Company Information
Chair |
P D Ward |
Chief executive |
M P Bates |
Directors |
L C Marshall K G Worrall K B Vyse P J Maddox J P Hayler J M Piper A E MacCaig J H Winter |
Company secretary |
R Laking |
Registered office |
|
Senior Statutory Auditor |
Denis Cross |
Auditors |
|
OPRL Limited
Directors' Report for the Year Ended 30 June 2023
The directors present their report and the financial statements for the year ended 30 June 2023.
Directors of the company
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is design and promotion of recycling labelling
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
OPRL Limited
Directors' Report for the Year Ended 30 June 2023
Fair Review of Business
As expected, the year has been challenging. Inflationary pressures, slow economic growth and continuing
uncertainty about the detailed requirements of the Government’s extended producer responsibility (EPR)
regulations have all affected businesses’ willingness to engage with OPRL. Despite this, membership has
continued to grow and reached 785 by the end of the year: a net 5% increase. The food industry continues to
provide the largest proportion of our membership, however other key sectors, such as homewares continue to
grow. The Board has continued its business plan based on the dual objectives of attracting more members and
providing valued and appropriate services to retain them. Our survey of members indicates that 91% are
happy with their OPRL membership. At the end of the reporting period the Government announced a delay to
implementation of key aspects of their EPR proposals and the Board will be looking for opportunities both to
increase membership, to shape the regulations and adjust our services during the delay period.
Financially, the company remains in a strong position. A modest operating surplus for the year is associated
with a broad balance of assets and liabilities on our accruals accounting basis. Our cash reserves leave us in a
positive position for managing the risks identified from the new EPR arrangements as many additional
companies will be required to carry labels.
The company is committed to targeting, monitoring and reporting on our social and environmental impacts as
well as our financial results – the triple bottom line. This commitment led us to apply to be registered as a B
Corp company this year. The application process includes a detailed investigation of our social, economic and
environmental policies and achievements as well as a commitment to continuous improvement. Our efforts in
pursuing that will be guided by the 9 (of 17) UN Sustainable Development Goals we have identified as most
relevant to our business and in future our reporting on these will be subsumed in our B Corp reports. A
summary of progress against these goals in this business year is available on the OPRL website.
Our company’s purpose is to collaborate across the packaging value cycle to drive circularity and a
transformation in resource efficiency in packaging. We are working to develop measures that demonstrate the
full environmental effect of our services. At present we can report that members are raising consumer
awareness by making extensive use of our recycling labels and increasing use of our new refill labels. Last year,
we also introduced a new suite of labels encouraging the recycling of some common plastic film formats at
Front of Store and these have proved popular.
This year we have worked with government and our Guarantors to influence the implementation of the
Resources and Waste Strategy which has progressed more slowly than expected. Our objectives remain to
ensure that the obligation to carry information about the recycling of packaging is backed by verifiable
evidence of the practical recyclability of that packaging, and that the information is presented in a standard
and comprehensible way to avoid confusing consumers. OPRL recycling labels meet these requirements and
remain the most recognised and understood labels available for businesses to inform their consumers. We
thank our guarantors, and others involved in the packaging life cycle we have worked with, for their support
and advice.
OPRL Limited
Directors' Report for the Year Ended 30 June 2023
During the year our Chair and founding director, Jane Bevis, announced she would retire after 14 years’service. The board thank Jane for her work, as the Executive Chair, in establishing and growing the company both financially and reputationally. A search for a new Non-Executive Chair has resulted in the appointment of Dr Stewart Davies shortly after the end of the trading year. During the year two Directors, Julian Hunt and Stuart Lendrum, also left the Board after long service and we thank them too for their outstanding contributions.
The staff of the company increased by 3 during the year. Once again, the Board wishes to record their gratitude and appreciation for the work of the staff and their achievements in the past year.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved by the
.........................................
P D Ward
Chair
.........................................
P J Maddox
Director
OPRL Limited
Limited Assurance Report to the Directors of OPRL Ltd
OPRL Ltd commissioned Junxion Strategy (UK) Ltd (“Junxion”, “we”) to perform a limited assurance engagement over non-financial data and statements presented in the Directors’ Report for the reporting year ended 30 June 2023.
Junxion reviewed provided data and statements pertaining to employees, suppliers and products (recycling labels). We examined source evidence and conducted remote meetings with staff to obtain an understanding the processes for aggregating data. We checked all calculations were completed accurately and verified all non-numeric claims by reviewing documentation.
Based on the procedures we have performed and the evidence we have obtained, in our opinion the data and statements we have reviewed in the Directors’ report are fairly stated.
Adam Garfunkel, Co-owner and MD, Junxion Strategy
Date: 6th November 2023
OPRL Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and 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.
OPRL Limited
Independent Auditor's Report to the Members of OPRL Limited
Opinion
We have audited the financial statements of OPRL Limited (the 'company') for the year ended 30 June 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and 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 FRS 102 Section 1A '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 30 June 2023 and of its profit 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 auditor 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 director's 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
OPRL Limited
Independent Auditor's Report to the Members of OPRL Limited
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Directors' Report has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
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; or |
• | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
OPRL Limited
Independent Auditor's Report to the Members of OPRL Limited
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 key laws and regulations we have considered in this context included the Companies Act, pension and tax legislation. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• Using our general commercial and sector experience and through discussions with the directors and other management, we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management’s own assessment of the risks that irregularities may occur either as a result of fraud or error.
• We examined the company’s regulatory and legal correspondence and discussed with the directors and other management any known or suspected instances of fraud or non-compliance with laws and regulations.
• We communicated and discussed identified laws and regulations and potential fraud risks with all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
• In addressing the risk of management override of controls, we tested the appropriateness of journal entries. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements. We also discussed related party relationships and transactions involving them.
There are inherent limitations in the audit procedures described above and the more that compliance with laws and regulations is removed from the events and transactions reflected in the financial statements, the less likely we will become aware of instances of non-compliance. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s 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 an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
OPRL Limited
Independent Auditor's Report to the Members of OPRL Limited
......................................
For and on behalf of
Leigh House
28-32 St Paul's Street
Leeds, LS1 2JT
OPRL Limited
Profit and Loss Account for the Year Ended 30 June 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross surplus |
|
|
|
Administrative expenses |
( |
( |
|
Operating surplus |
33,734 |
48,788 |
|
Other interest receivable and similar income |
|
|
|
Surplus before tax |
|
|
|
Tax on surplus |
( |
( |
|
Surplus for the financial year |
|
|
The above results were derived from continuing operations.
OPRL Limited
Statement of Comprehensive Income for the Year Ended 30 June 2023
2023 |
2022 |
|
Surplus for the year |
|
|
Total comprehensive income for the year |
|
|
OPRL Limited
(Registration number: 06853461)
Balance Sheet as at 30 June 2023
Note |
2023 |
2022 |
|
Fixed Assets |
|||
Intangible assets |
|
- |
|
Tangible Assets |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
( |
|
Provisions for liabilities |
( |
( |
|
Net assets/(liabilities) |
|
( |
|
capital and reserves |
|||
General Funds |
32,041 |
(3,731) |
|
Reserves |
32,041 |
(3,731) |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
......................................... |
......................................... |
OPRL Limited
Statement of Changes in Equity for the Year Ended 30 June 2023
Retained earnings |
Total |
|
At 1 July 2022 |
( |
( |
Surplus for the year |
|
|
At 30 June 2023 |
|
|
Profit and loss account |
Total |
|
At 1 July 2021 |
( |
( |
Surplus for the year |
|
|
Total comprehensive income |
|
|
At 30 June 2022 |
( |
( |
OPRL Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
General information |
The company is a company limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The directors have undertaken a review of the future prospects of the company, taking into account its current position and principal risks. Based on this review, the directors are of the opinion that the company has adequate financial resources to continue in operation for at least 12 months from the date of these financial statements. For this reason, the directors continue to adopt the going concern basis in preparing these financial statements.
Revenue recognition
Membership income is recognised evenly over the period of membership with amounts in respect to future periods included in deferred income within creditors. All other income is recognised when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activites.
Tax
The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
OPRL Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible Assets
Tangible Assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Computer Equipment |
Straight Line basis at 33% per anum |
Furniture & Fittings |
Straight Line basis at 20% per anum |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Software |
Straight Line basis at 20% per anum |
Trust Mark Development |
Straight Line basis at 20% per anum |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
OPRL Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Research & Development
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their expected useful economic lives. Amortisation begins when the intangible asset is available for use, ie when it is in the location and condition necesary to be useable in the manner intended by management.
Financial instruments
Classification
Recognition and measurement
Such assets are subsequently carried at amortised cost using the effective interest method.
Impairment
OPRL Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Intangible assets |
Software |
Trust Mark Development |
Total |
|
Cost or valuation |
|||
Additions acquired separately |
|
|
|
At 30 June 2023 |
|
|
|
Amortisation |
|||
Carrying amount |
|||
At 30 June 2023 |
|
|
|
OPRL Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Tangible Assets |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
||
At 1 July 2022 |
|
|
Additions |
|
|
At 30 June 2023 |
|
|
Depreciation |
||
At 1 July 2022 |
|
|
Charge for the year |
|
|
At 30 June 2023 |
|
|
Carrying amount |
||
At 30 June 2023 |
|
|
At 30 June 2022 |
|
|
Debtors |
Current |
2023 |
2022 |
Trade debtors |
|
|
Prepayments |
|
|
Other debtors |
|
|
|
|
OPRL Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Creditors |
Creditors: amounts falling due within one year
2023 |
2022 |
|
Due within one year |
||
trade creditors |
|
|
Taxation and social security |
|
|
Accruals and deferred income |
|
|
|
|
Related party transactions |
Directors' remuneration
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Pension Contributions |
|
|
202,105 |
194,861 |
In addition the company paid £12,148 (2022 - £2,800) in respect of consultancy services provided by directors.