Assignment
The assignment to ARN is to consistently achieve the established recycling targets in a responsible and high-quality manner.
ARN Auto Recycling Nederland B.V. (ARN) was founded on 13 oktober 1993 by BOVAG, the former FOCWA, RAI Vereniging and Stiba. On behalf of the Auto Recycling Foundation and the Car Battery Recycling Foundation, the organisation implements producer obligations for the collection and processing of end-of-life vehicles and EV and LMT batteries, as well as the activities of the Scooter Recycling Netherlands foundation.
Incentive Premium
On June 30, 2024, the incentive premium scheme for auto dismantling companies, which had a duration of one year, ended. This premium is in addition to the existing (administration) compensation for the dismantling of Dutch car wrecks and was intended to further increase the professionalism of auto dismantling. The premium is linked to the sustainable and safe dismantling of refrigerant and EV drive batteries. By investing in training, equipment, and registration in the field of EV drive batteries and refrigerant, the auto dismantling companies affiliated with ARN could receive up to € 10,485 in compensation. This incentive premium scheme has been used extensively, and its results are fully satisfactory.
New Software Package
After a good preparation period in 2023, ARN started the construction and implementation of the ERP software package SAP/Mendix on January 1, 2024. All material flows and operational business processes are recorded in the Mendix software package. The financial results of this are recorded in SAPbyDesign. This labor-intensive and challenging project ran smoothly through the efforts of almost all ARN colleagues, the implementation partner, and the external project leader, within time planning and budget, with a go-live on October 1, 2024.
Reporting
The annual accounts of ARN Auto Recycling Nederland B.V. have been prepared based on BW 2 Title 9.
| Balance Sheet and Profit Loss Statement | 2024 | 2023 | |
|---|---|---|---|
| Balance Sheet (before profit appropriation in euros) | |||
| 1 | Intangible Fixed Assets | 714,038 | 281,225 |
| 2 | Tangible Fixed Assets | 52,261 | 83,663 |
| 3 | Financial Fixed Assets | 33,694 | 33,694 |
| Total Fixed Assets | 799,993 | 398,582 | |
| 4 | Receivables | 5,215,109 | 5,650,970 |
| 5 | Cash and Cash Equivalents | 451,095 | 477,988 |
| Total Current Assets | 5,666,204 | 6,128,959 | |
| Total Assets | 6,466,197 | 6,527,541 | |
| 6 | Equity | 3,489,620 | 3,307,018 |
| Total Equity | 3,489,620 | 3,307,018 | |
| 7 | Provisions | 120,885 | 107,000 |
| 8 | Long-term Liabilities | 0 | 9,439 |
| 9 | Current Liabilities | 2,855,692 | 3,104,084 |
| Total Liabilities | 2,976,577 | 3,220,523 | |
| Total Equity and Liabilities | 6,466,197 | 6,527,541 | |
| Profit and Loss Account (in euros) | |||
| 10 | Net Turnover | 15,217,924 | 13,537,544 |
| Total Revenues | 15,217,924 | 13,537,544 | |
| 11 | Cost of Sales | 10,911,981 | 9,415,796 |
| 12 | Costs of Outsourced Work and Other External Costs | 1,965,369 | 1,773,344 |
| 13 | Wages and Salaries | 1,572,029 | 1,543,612 |
| 14 | Social Security and Pension Costs | 436,237 | 443,432 |
| 15 | Depreciation of Fixed Assets | 142,350 | 154,519 |
| 16 | Interest Expenses and Similar Costs | 1,914 | 263 |
| Total Operating Expenses | 14,984,880 | 13,330,966 | |
| Operating Result | 233,044 | 206,578 | |
| 17 | Taxes on Result | -50,442 | -51,846 |
| Result After Taxes | 182,602 | 154,732 | |
Explanation
- Intangible fixed assets consist of purchased software and are linearly depreciated to nil over five years. In 2024, € 577,886 was invested mainly in the construction and implementation of the Mendix software package, the Bbb reporting portal, and the further development of a BI tool.
- Tangible fixed assets consist of the furnishing of the office building in Breukelen and other fixed business assets.
- Financial fixed assets concern a security deposit which serves as collateral for the rental contract regarding the office building in Breukelen.
- The item receivables consists of debtors, a claim on the shareholder, and other receivables and accrued assets.
- The liquid assets of ARN Auto Recycling Nederland B.V. are held at creditworthy banking institutions.
- The change in Equity in 2024 consists of the undistributed result for the financial year. In 2024, a statutory reserve was formed for the capitalized self-developed software of the Bbb reporting portal and Mendix.
- Provisions: For the transfer of the draining installations to the auto dismantling companies, a provision was formed in 2020 and 2021 based on the expected associated costs. The project was almost completed in 2024, and the remaining amount of the provision consists of a reservation for the estimated environmental risk minus the expected proceeds from the disposed residual materials.
- Long-term liabilities: Upon entering into the affiliation agreement with ARN, the affiliated auto dismantling companies deposited a security for the use of the ARN logo boards. In 2024, this security deposit was refunded to all auto dismantling companies, with the logo boards remaining the property of ARN.
- Short-term liabilities mainly consist of creditors, the material obligation for car dismantling companies, and the contractually agreed contribution to the operating costs of HKS Tiel B.V., reduced by the fifth (and final) installment of the sales proceeds from the PST factory. The material obligation for car dismantling companies represents the compensation still to be paid to the car dismantling companies and the expected costs for collection and processing. The obligation is linked to the outstanding material balances per company at the end of the financial year. Outstanding material balances are caused by materials still present in wrecks reported for dismantling or in available packaging, or materials that have been removed but not yet claimed.
- The net turnover consists of charged costs as contractually agreed with Stichting Auto Recycling, Stichting Autobatterij Recycling, Stichting Scooter Recycling Nederland and Stichting Instituut voor de Duurzame Mobiliteit. The net turnover increased by 12.4% in 2024 compared to 2023.
- Cost of sales: In 2024, 158,589 (2023: 133,224) wrecks were dismantled by the 203 (2023: 208) car dismantling companies affiliated with ARN. These car dismantling companies were paid compensation for their services to ARN. In addition, the cost of sales consists of costs for collection and processing of ARN materials, the contractually agreed contribution to the operating costs of the PST factory, the incentive scheme for battery and refrigerant dismantling, and other recycling costs.
- The costs of outsourced work and other external costs include publicity, housing, office, transport, and other operating costs.
- Wages and salaries: The average workforce at ARN consists of 19.0 FTE (2023: 18.5 FTE). In addition, ARN Auto Recycling Nederland B.V. has a Supervisory Board consisting of three members.
- The social security and pension costs item consists of the legally required social security contributions and pension costs. Employees aged 21 and older participate in a collective pension scheme from the start of their employment.
- Depreciation on fixed assets mainly concerns depreciation on software.
- Interest expenses and similar costs mainly concern interest costs and bank charges.
- Income tax: ARN Auto Recycling Nederland B.V. forms a fiscal unity for corporate income tax purposes.