THE_COPPER_MARK - Accounts

The directors present their annual report and financial statements for the year ended 31 December 2021.

The principal activity of the company continued to be that the continuous improvement of environmental, social

and governance practices in the copper value chain -

a. by improving business practices;

b. by engaging with stakeholders

c. by identifying and promoting the use of a best practice framework; and

d. by assuring and reporting on the performance of copper producers and fabricators.

The Copper Mark provides offices based services for the management systems certification, trainings and advisory services to our clients. Clients are the copper producing sites that participate in the Copper Mark Assurance Process. The Copper Mark also governs the trademark-protected certification mark and logo also known as "The Copper Mark".

For the year ended 31 December 2021 the company has reported a loss of £376,362 in comparison to a profit of £120,068 for the period ended 31 December 2020.  During 2020, the relevant expenditure was offset with a grant of £409,194 received from the International Copper Association (ICA), a company registered in the United States of America.  The Copper Mark continued to receive financial assistance from the ICA in 2021 but this was received in the form of a working capital loan. 

In addition to this, total expenditure has increased.  The company only started trading in 2020 therefore 2021 includes the first full year of expenditure.  In 2020, from January to September employee costs were paid by ICA. From October 2020 onwards staff costs are being paid by The Copper Mark. The financial statement to 31 December 2021 therefore includes a full year of employee costs.

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

Lowson Ward were appointed as auditor to the company in accordance with section 485 of the Companies Act 2006, a resolution proposing that they will be re-appointed will be put at a General Meeting.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Copper Mark is a private company limited by guarantee incorporated in England and Wales. The registered office is Delta Place, 27 Bath Road, Cheltenham, United Kingdom, GL53 7TH.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

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 credited or charged to surplus or deficit.

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

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company 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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

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

Grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

The average monthly number of persons (including directors) employed by the company during the year was:

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £10.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

In the period ended 31 December 2020 the company received technical support and financial assistance in the form of a grant of £409,194 from the International Copper Association (ICA), a company registered in the United States of America.  In the year ended 31 December 2021, The Copper Mark continued to receive technical support and financial assistance from the ICA, however, this was received in the form of a working capital loan.  This change from grant to capital loan has resulted in the company reporting a loss during the year.  The capital loan facility is $900,000 available to be drawn down as and when needed over the period 2021 – 2025.  This loan will be available to The Copper Mark until 31 December 2025 and must be fully repaid by this time.  The interest rate has been agreed at 1% above the Applicable Federal Rate (AFR) of the Internal Revenue Service (IRS) of the United States.  The parties agree to set the interest rate at 1.39% for 2021 in accordance with the mid-term adjusted AFR this amounted to £1,293.  Three instalments of $100,000 each (for a total of £221,634) were withdrawn during the year and no repayments were made.  The loan balance of £221,634 is included within Creditors, amounts falling due in more than one year on the Balance Sheet.

In recognition of the financial and technical support provided, the ICA holds a seat on the Board of Directors of The Copper Mark.