Just Trading Scotland Limited - Limited company accounts 20.1

REGISTERED NUMBER: SC357178 (Scotland)

JUST TRADING SCOTLAND LIMITED

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST JANUARY 2020

Page

Company Information

1

Report of the Directors

2

Chartered Accountants' Report

4

Income Statement

5

Balance Sheet

6

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

J K Riches

T Lillie

R Stewart

M L Popple

J H Osman

K S Jarvie

T M Mitchell

A Menzies

REGISTERED OFFICE:

Unit 4

Greenlaw Industrial Estate

Wallneuk Road

Paisley

Renfrewshire

PA3 4BT

REGISTERED NUMBER:

SC357178 (Scotland)

ACCOUNTANTS:

Russell & Russell

Chartered Accountants

4 Royal Crescent

Glasgow

G3 7SL

The directors present their report with the financial statements of the company for the year ended 31st January 2020.

REVIEW OF BUSINESS

Sales rose to £242,375 from £228,898 in 2019, with gross profit increasing to £87,946 from £78,802. This

produced an increase in the gross profit percentage to 36.29% compared to 34.43% in 2019.

In March 2019 JTS celebrated its 10th anniversary with a well-attended Parliamentary Reception and the launch

of a "Dignity through Trade" report highlighting some key achievements over the period, possibly most notably

the importing of 250 tonnes of Kilombero Rice and the milestone of over £2m of fair trade sales. The report also

highlighted our significant producer relationships, which were strengthened through a series of "producer

voices" videos secured for our Parliamentary Reception and increased social media work thereafter.

Following the restructuring and cost reduction in 2017 and consolidation through 2018, the first part of 2019

was a further period of consolidation with a continuing focus on management of margins and relationship

building with key customers, with good results. Last year we reported that having continued to supply Traidcraft

through a very challenging period, we ended the year set to strengthen our trading relationships further. This has

indeed been the case with an increasing range being offered through Traidcraft and a significant increase in sales

through them. An ongoing focus on our website, on-line shops and social media drove a further significant

increase in on-line sales. Investment of time and resources in Ma's Organic Fairtrade Coconut Milk, together

with the recognition of the product with two Great Taste stars, yielded a doubling of sales mainly through key

wholesalers, several of whom have a specific focus on Organic products. JTS was pleased when the Ethical

Consumer magazine recognised Kilombero Rice as the most ethical rice on the UK Market and when several

other products across the range achieved Great Taste Awards.

Despite these successes, JTS did not meet its sales budget mainly due to the cancellation of a key purchase order

from Oxfam when the goods arrived in an unsellable condition. Considerable work has gone into managing this

situation and working with the producer to avoid any repeat.

The reduced staff resource continued to limit the team's ability to work on new business sales and involved

Board support to enable networking within the sector and with potential new supporters and customers. In

addition, external resource was contracted through the second half of the year with the aim of securing new

business sales in 2020.

In September we received news that our parent charity had been the beneficiary of a large legacy from the estate

of Audrey Anderson, a long term supporter of the Trust. This enabled the Balmore Trust to pay off the Social

Investment Scotland loan. Our own loan from the Trust was cleared by a donation from the Trust who,

additionally, donated a further £25k from the legacy immediately to support JTS's working capital requirements

and offered matched funding for the next £25k of donations to be received. At the year-end £10k of this had

been released following successful fundraising.

Overall donations from sources other than the Trust, mainly in support of the Join us on the Journey capital

appeal, were over £67k in the year and were material in allowing JTS to remain viable.

The legacy and donation income combined with continued cost reduction benefits and increasing sales enabled

JTS to end the year in profit for the first time in several years. After a donation of £36,781 to the Balmore Trust

from profits, the net profit for the year was £105,094 (2019: loss of £8,839).

Development work continues in Malawi through a number of grant-funded small projects run by the Balmore

Trust and now managed through the Trust's Project Review Board. The irrigation project continued to progress

well and the KASFA WFTO project got off to a good start within 2019.

Our Board continued to monitor progress against our business plan through monthly sales performance trackers

as well as meeting at least quarterly to consider KPI reporting, risks and other matters of governance and to

review the overall financial status of the organisation. After many years of Board stability, changes took place in

2019. On his 80th birthday John Riches stepped down as Chair, to be replaced by Mary Popple. Stephen Hayes

resigned in order to work overseas and Malcolm Shannon retired due to ill health. The opportunity has been

taken to refresh the Board with skills required to take JTS to a sustainable level. Joe Osman joined the Board in

July 2019 and Karena Jarvie and Tracy Mitchell joined the Board at the end of March, 2020. Further Board

appointments are expected later in 2020.

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1st February 2019

to the date of this report unless otherwise stated.

Other changes in directors holding office are as follows:

S Hayes - resigned 12.9.19

M Shannon - resigned 31.10.19

J H Osman - appointed 8.7.19

M P Paterson - appointed 20.6.19 - resigned 25.7.19

K S Jarvie , T M Mitchell and A Menzies were appointed as directors after 31st January 2020 but prior to the date of this report.

The directors shown below were in office at 31st January 2020 but did not hold any interest in the Ordinary

shares of £1 each at 1st February 2019 (or date of appointment if later) or 31st January 2020.

J K Riches

T Lillie

R Stewart

M L Popple

J H Osman

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating

to small companies.

ON BEHALF OF THE BOARD:

T M Mitchell - Director

1st May 2020

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval

the financial statements of Just Trading Scotland Limited for the year ended 31st January 2020 which comprise

the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's

accounting records and from information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the Board of Directors of Just Trading Scotland Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Just Trading Scotland Limited and state those matters that we have agreed to state to the Board of Directors of Just Trading Scotland Limited, as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Just Trading Scotland Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Just Trading Scotland Limited. You consider that Just Trading Scotland Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Just Trading Scotland Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Russell & Russell

Chartered Accountants

4 Royal Crescent

Glasgow

G3 7SL

6th May 2020

TURNOVER

242,375

228,898

Cost of sales

154,429

150,096

GROSS PROFIT

87,946

78,802

Distribution costs

13,021

15,390

Operating and administrative expenses

176,557

122,397

189,578

137,787

(101,632

)

(58,985

)

Other operating income

3

211,844

59,491

OPERATING PROFIT

5

110,212

506

Interest payable and similar expenses

5,118

9,345

PROFIT/(LOSS) BEFORE TAXATION

105,094

(8,839

)

Tax on profit/(loss)

6

-

-

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

105,094

(8,839

)

FIXED ASSETS

Tangible assets

7

2,817

3,021

CURRENT ASSETS

Stocks

68,968

88,631

Debtors

8

35,032

20,519

Cash at bank and in hand

584

303

104,584

109,453

CREDITORS

Amounts falling due within one year

9

75,644

79,811

NET CURRENT ASSETS

28,940

29,642

TOTAL ASSETS LESS CURRENT LIABILITIES

31,757

32,663

CREDITORS

Amounts falling due after more than one year

10

34,000

140,000

NET LIABILITIES

(2,243

)

(107,337

)

CAPITAL AND RESERVES

Called up share capital

13

1

1

Retained earnings

(2,244

)

(107,338

)

SHAREHOLDERS' FUNDS

(2,243

)

(107,337

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st January 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st January 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

The financial statements were approved by the Board of Directors and authorised for issue on 1st May 2020 and were signed on its behalf by:

T M Mitchell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st February 2018

1

(98,499

)

(98,498

)

Changes in equity

Total comprehensive income

-

(8,839

)

(8,839

)

Balance at 31st January 2019

1

(107,338

)

(107,337

)

Changes in equity

Total comprehensive income

-

105,094

105,094

Balance at 31st January 2020

1

(2,244

)

(2,243

)

1.	STATUTORY INFORMATION

Just Trading Scotland Limited is a private company, limited by shares , registered in Scotland. 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.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on the going concern basis. The directors believe that the

company has adequate resources to continue to operate for the foreseeable future.

Turnover

The turnover shown in the profit and loss account represents the sales value of goods sold during the

year, exclusive of Value Added Tax.

Tangible fixed assets

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

Plant and office equipment

-

25% straight line

Furniture and fittings

-

25% straight line

Website

-

25% straight line

Stocks

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

and slow moving items.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual

arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is

any contract that evidences a residual interest in the assets of the company after deducting all of its

liabilities.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange

ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating

result.

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of

the lease.

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.

Deferred government and charitable grants

Deferred government and charitable grants in respect of capital expenditure are treated as deferred

income and are credited to the profit and loss account over the estimated useful life of the assets to which

they relate.

3.	OTHER OPERATING INCOME

31.1.20

31.1.19

£

£

Donations received

206,844

51,291

Employment allowance

3,000

3,000

Charitable grants

-

5,200

Government grants

2,000

-

211,844

59,491

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2019 - 4 ) .

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.1.20

31.1.19

£

£

Depreciation - owned assets

1,734

2,633

Pension costs

1,446

746

Donation to The Balmore Trust Limited

36,781

-

Interest on loans from group undertakings

3,984

6,000

6.

TAXATION

The company has agreed to make a qualifying charitable donation to The Balmore Trust Limited of a sum

equal to its profits for the period as adjusted for taxation purposes with the result that no provision for

corporation tax is required. There are capital allowances plus government grants in excess of depreciation

amounting to £2,606 (2019 - £2,503). As it is expected that qualifying charitable donations will be made

each year, no provision for deferred tax has been made.

The trading losses, as adjusted for taxation purposes, available to carry forward at 31st January, 2019

amounting to approximately £105,000 were utilised in the year ended 31st January, 2020.

7.	TANGIBLE FIXED ASSETS

Plant and

Furniture

office

and

equipment

fittings

Website

Totals

£

£

£

£

COST

At 1st February 2019

11,903

110

463

12,476

Additions

1,530

-

-

1,530

At 31st January 2020

13,433

110

463

14,006

DEPRECIATION

At 1st February 2019

9,427

28

-

9,455

Charge for year

1,596

22

116

1,734

At 31st January 2020

11,023

50

116

11,189

NET BOOK VALUE

At 31st January 2020

2,410

60

347

2,817

At 31st January 2019

2,476

82

463

3,021

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.20

31.1.19

£

£

Trade debtors

20,010

14,145

Other debtors

15,022

6,374

35,032

20,519

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.20

31.1.19

£

£

Bank loans and overdrafts (see note 11)

6,688

18,320

Trade creditors

9,387

36,324

Taxation and social security

1,310

1,206

Other creditors

58,259

23,961

75,644

79,811

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.1.20

31.1.19

£

£

Amounts owed to group undertakings

-

100,000

Other creditors

34,000

40,000

34,000

140,000

11.

LOANS

An analysis of the maturity of loans is given below:

31.1.20

31.1.19

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

6,688

18,320

Other loans

5,000

5,760

11,688

24,080

Amounts falling due between one and two years:

Other loans

19,000

20,000

12.	SECURED DEBTS

The following secured debts are included within creditors:

31.1.20

31.1.19

£

£

Bank overdrafts

6,688

18,320

The bank overdraft is secured by a floating charge.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.1.20

31.1.19

value:

£

£

1

Ordinary

£1

1

1

14.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Transactions with directors

a) Loan from T Lillie

Included in Creditors: amounts falling due after more than one year is an amount owed to T Lillie of

£15,000 (2019 - £20,000). This amount bears no interest and is not repayable until after 31st January,

2021.

b) Donations received

Included in donations received is £2,005 (2019:£nil) received from directors.

15.	RELATED PARTY DISCLOSURES

Transactions with parent company

The Balmore Trust Limited

The company has taken advantage of the exemption from the requirement to disclose transactions entered

into with group companies on the grounds that the company is a wholly owned subsidiary of The

Balmore Trust Limited..

16.	ULTIMATE CONTROLLING PARTY

The parent company is The Balmore Trust Limited, a company limited by guarantee and the address of its

registered office is The Coach House Balmore, Torrance, Glasgow G64 4AE.