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 2021

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

T M Mitchell

K S Jarvie

A Menzies

J E Davidson

I B Clingan

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 2021.

REVIEW OF BUSINESS

Sales rose 33% to £323,232 from £242,375 in 2020, with gross profit increasing from £87,946 to £110,265 with a gross profit percentage of 34% (2020 36%).

Following the new Board appointments in 2019 and early 2020, the business has a renewed focus and considerable work has been put into reviewing our business and developing a five year strategic plan. Our plans are driven by our desire to support disadvantaged producers and suppliers. External feedback has led us to a recognition that JTS has a unique value chain from small holder farmer/producer to the end consumer and we will seek to build on this. We aim to ensure that JTS becomes a stable, trading organisation, working in line with its mission and operating sustainably. Our Board continues to monitor progress against our business plan through KPI reports and meets at least quarterly to consider risks and other matters of governance and to review the overall financial status of the organisation.

2020 was clearly a very challenging year for everyone and COVID-19 brought a whole new context to our work. In March 2020, we quickly adapted to the need for staff to mainly work remotely and reduced shipping to twice per week to reduce interaction within our warehouse. We experienced a massive peak in sales in March/April 2020 as people panic bought rice in particular. This gave us the opportunity to engage new customers as well as some returning customers, many of whom have continued to buy from us since then. That peak in sales gave us some welcome income to cope with the massive reduction in community and shop sales from March onwards as schools, churches and most of our shop customers closed their doors for months. We witnessed an increase in sales to those customers who have strong online presence themselves and also to individuals through our own online shop. We continued to see considerable growth in sales of organic coconut milk and the range of pasta sauces and jams from Meru in Kenya. We introduced a new product range (Beer Bread) from South Africa following an introduction from Oxfam and sales were very encouraging and range extensions are planned for 2021. We also completed a review of new product opportunities and, in addition to seeking to add new products from Ma's in Sri Lanka to complement the coconut milk, we have selected a new producer in India and will be introducing a new pulses range in summer 2021.

As our producer partners struggled with COVID-19 in their own countries, we sought to support them with a supporter appeal and through this supplied sanitiser and handwashing facilities as well as communication support to two producer groups, in Malawi and Eswatini. We were pleased to be able to honour and indeed increase our orders from our producer partners although through the summer of 2020 we experienced considerable delays with product supply, linked to both lockdowns affecting our suppliers and then shipping related delays.

After undergoing a thorough audit process in September 2020, we were thrilled to be awarded "Guaranteed Member" status of the World Fair Trade Organization in December 2020, recognising our commitment to doing business in line with the 10 Fair Trade Principles and to putting people and planet first in our business decisions.

Whilst this is the first time sales have exceeded £300k, marking a key milestone in JTS's growth, sales were below budget mainly due to the lack of new listings through 2020. In March 2020, as the country went into lockdown, we paused the work of the external resource who had been working on new sales, with a new approach now being deployed for 2021.

We received further support from the Trust partly related to the legacy from Audrey Anderson as well donations and small grants from various other sources. These totalled £62k in the year and were material in allowing JTS to remain viable. In addition, we were very pleased to receive £46k from the Third Sector Resilience Fund in April 2020. This grant was extremely helpful in providing us with resilience particularly through the summer months when the combined impacts of delayed stock, reduced community and shop sales and the lack of planned for new listings were biting hard. Additional resilience has also been provided by investment on our IT systems. This has included upgrading our main sales/finance package and our remote access facilities, as well as improving our IT support arrangements and security.

The legacy and donation income, combined with increasing sales, enabled JTS to end the year in profit again and to make a donation to The Balmore Trust of £45,919.

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 was concluded and the KASFA WFTO project continued to progress well.

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1st February 2020 to the date of this report unless otherwise stated.

Other changes in directors holding office are as follows:

T M Mitchell - appointed 26.3.20

K S Jarvie - appointed 26.3.20

A Menzies - appointed 22.4.20

J E Davidson - appointed 6.10.20

I B Clingan was appointed as a director after 31st January 2021 but prior to the date of this report.

The directors shown below were in office at 31st January 2021 but did not hold any interest in the Ordinary shares of £1 each at 1st February 2020 (or date of appointment if later) or 31st January 2021.

J K Riches

T Lillie

R Stewart

M L Popple

J H Osman

T M Mitchell

K S Jarvie

A Menzies

J E Davidson

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

16th September 2021

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 2021 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 loss 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

17th September 2021

TURNOVER

323,232

242,375

Cost of sales

212,967

154,429

GROSS PROFIT

110,265

87,946

Distribution costs

15,729

13,021

Operating and administrative expenses

206,737

176,557

222,466

189,578

(112,201

)

(101,632

)

Other operating income

3

113,269

211,844

OPERATING PROFIT

5

1,068

110,212

Interest payable and similar expenses

1,167

5,118

(LOSS)/PROFIT BEFORE TAXATION

(99

)

105,094

Tax on (loss)/profit

6

-

-

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(99

)

105,094

FIXED ASSETS

Tangible assets

7

2,682

2,817

CURRENT ASSETS

Stocks

128,941

68,968

Debtors

8

65,068

35,032

Cash at bank and in hand

52,857

584

246,866

104,584

CREDITORS

Amounts falling due within one year

9

144,457

75,644

NET CURRENT ASSETS

102,409

28,940

TOTAL ASSETS LESS CURRENT LIABILITIES

105,091

31,757

CREDITORS

Amounts falling due after more than one year

10

107,433

34,000

NET LIABILITIES

(2,342

)

(2,243

)

CAPITAL AND RESERVES

Called up share capital

13

1

1

Retained earnings

(2,343

)

(2,244

)

SHAREHOLDERS' FUNDS

(2,342

)

(2,243

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st January 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st January 2021 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 16th September 2021 and were signed on its behalf by:

T M Mitchell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st February 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

)

Changes in equity

Total comprehensive income

-

(99

)

(99

)

Balance at 31st January 2021

1

(2,343

)

(2,342

)

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.

Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

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

31.1.21

31.1.20

£

£

Donations received

61,601

206,844

Employment allowance

4,000

3,000

Government grants

47,668

2,000

113,269

211,844

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2020 - 5 ) .

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.1.21

31.1.20

£

£

Depreciation - owned assets

438

1,734

Pension costs

1,597

1,446

Donation to The Balmore Trust Limited

45,919

36,781

Interest on loans from group undertakings

-

3,984

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 £974 (2020 - £2,606). As it is expected that qualifying charitable donations will be made each year, no provision for deferred tax has been made.

7.	TANGIBLE FIXED ASSETS

Plant and

Furniture

office

and

equipment

fittings

Website

Totals

£

£

£

£

COST

At 1st February 2020

13,433

110

463

14,006

Additions

303

-

-

303

Disposals

(6,039

)

-

-

(6,039

)

At 31st January 2021

7,697

110

463

8,270

DEPRECIATION

At 1st February 2020

11,023

50

116

11,189

Charge for year

301

22

115

438

Eliminated on disposal

(6,039

)

-

-

(6,039

)

At 31st January 2021

5,285

72

231

5,588

NET BOOK VALUE

At 31st January 2021

2,412

38

232

2,682

At 31st January 2020

2,410

60

347

2,817

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.21

31.1.20

£

£

Trade debtors

59,027

20,010

Other debtors

6,041

15,022

65,068

35,032

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.21

31.1.20

£

£

Bank loans and overdrafts (see note 11)

1,567

6,688

Trade creditors

18,885

9,387

Amounts owed to group undertakings

61,800

-

Taxation and social security

2,724

1,310

Other creditors

59,481

58,259

144,457

75,644

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.1.21

31.1.20

£

£

Bank loans (see note 11)

48,433

-

Other creditors

59,000

34,000

107,433

34,000

11.

LOANS

An analysis of the maturity of loans is given below:

31.1.21

31.1.20

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

-

6,688

Bank loans

1,567

-

Other loans

9,000

5,000

10,567

11,688

Amounts falling due between one and two years:

Bank loans - 1-5 years

48,433

-

Other loans

44,000

19,000

92,433

19,000

12.	SECURED DEBTS

The following secured debts are included within creditors:

31.1.21

31.1.20

£

£

Bank overdraft

-

6,688

The bank overdraft is secured by a floating charge.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.1.21

31.1.20

value:

£

£

1

Ordinary

£1

1

1

14.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Transactions with directors

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 (2020 - £15,000). This amount bears no interest and is not repayable until after 31st January , 2022.

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.