Pretty Pleats Ltd Charity Accounts

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COMPANY REGISTRATION NUMBER: 13357794

CHARITY REGISTRATION NUMBER: 1201622

Pretty Pleats Ltd

Company Limited by Guarantee

Unaudited Financial Statements

30 April 2023

Pretty Pleats Ltd

Company Limited by Guarantee

Financial Statements

Year ended 30 April 2023

	Page

Trustees' annual report (incorporating the director's report)	1

Statement of financial activities (including income and expenditure account)	6

Statement of financial position	7

Notes to the financial statements	8

Pretty Pleats Ltd

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 30 April 2023

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 30 April 2023 .

Reference and administrative details

Registered charity name	Pretty Pleats Ltd

Charity registration number	1201622

Company registration number	13357794

Principal office and registered	32 Lemsford Close
office	Grovelands Road
	London
	N15 6BY

The trustees

	T Lowy
	R Erblich	(Appointed 16 November 2022)
	L Weiss

Accountants	Haffner Hoff Ltd
	Accountants
	2nd Floor - Parkgates
	Bury New Road
	Prestwich
	Manchester
	M25 0TL

Structure, governanance and management

Pretty Pleats Ltd is constituted and governed by the Company's Memorandum and Articles of Association. It is a Company Limited by Guarantee ( 13357794 ) set up in April 2021, and a registered charity ( 1201622 ) since 18 January 2023. The charity is governed by a board of trustees who meet regularly. Day-to-day operations are led by its founder and Chairperson, Mrs T Lowy , supported by volunteers.

Objectives and activities

Pretty Pleats Ltd supports families experiencing poverty and financial hardship through the sale of massively discounted new and/or repurposed goods.

The objectives of the charity as stated in the Memorandum and Articles of Association: The prevention and relief of financial hardship, in particular but not exclusively by the recycling of school uniforms and other items.

Strategic report

The following sections for achievements and performance and financial review form the strategic report of the charity.

Achievements and performance

During the year in review we were able to support over 200 families, and an estimated 450 children experiencing poverty or financial hardship through 2 seasonal sales, in August and November 2022. Throughout the year, our volunteers engaged the community and our 8 partner schools to collect lightly used school uniforms for children age 3-19 years, laundering and repurposing these for distribution/resale at our community sales. Trustees also began expanding inventory through partnering with local stores to collect surplus product, increasing our stock to include some new (non-uniform) clothing too. Where specific school uniforms were in high demand and/or we had little donated goods, Trustees purchased new items, ensuring there was something for everyone and allowing for one new set of uniform to be sold along with every repurposed item, oftentimes giving poor children their first experience of receiving a brand new set of of clothing!

Our unique model, tackles poverty with dignity and encourages women to take ownership-responsibility and increase financial independence, rather than creating a culture of continuously being on the receiving end of donations, food parcels, and free goods. This is achieved through a traditional 'shopping experience' with minimal fees charged (up to £5 for repurposed goods, and more than a 50% reduction on new items). Our volunteers are to hand, supporting women to calculate the costs of items they're purchasing and make sound financial decisions. Most importantly, our service puts the users at the centre of what we do, giving them the choice, budgeting and financial independence that comes along with a traditional shopping experience. This echoes our core values of dignity, community, environment and relief.

The charity had a challenging year, with the cost-of-living crisis driving demand and withdrawal of our in-kind storage-sales space; a further cost of the economic crisis. Trustees regrouped, storing donated goods in volunteers' sheds and hiring community spaces for 1-2 days at a time to host public sales. This required a herculean effort, expert logistics, and massive volunteer input; but ultimately we were able to continue to support our community at a time of increased need. Trustees are satisfied with the results achieved, yet acknowledge that additional capacity and a storage-sales space is required to ensure sustainability and allow for growth.

At the very start of the year, Trustees saw an opportunity to support emergency crisis relief in Ukraine, through engaging our community network to collect surplus food which was shipped to the frontlines in partnership with the Ukraine Refugee Drive. The response was overwhelming, with thousands of items received in just 3 days! We thank our community and team of volunteers for coming together to support those in need and we are proud of what we were able to achieve to support a country in crisis.

During the year in review, we have supported single mothers, women who have large families and overwhelming caring responsibilities, victims of abuse, those with mental health challenges that exacerbate poverty, disabled women/children, families experiencing neglect, and some refugee/migrant families. Outcomes include poverty relief, increased dignity for vulnerable women, improved budgeting ability, increased financial resilience, and improved health/wellbeing through the provision of quality clothing, and through freeing up funds for food, shelter, essentials and hygiene products.

Equality, Diversity and Inclusion (EDI)

Inclusion is at the heart of our mission, providing culturally specific clothing for families who have specific religious requirements and can't access mainstream clothing banks. We specifically seek community spaces which have disabled access and good transport links, ensuring sales are accessible to all. Our outreach is traditionally offline (through print media, inter-agency referrals, and word of mouth), recognising that many in our community, and those experiencing poverty, do not have regular access to internet. We stock a wide variety of school uniforms and clothing, ensuring we have something for everyone, regardless of school, size, or budget. We have repurposed items for as low as £2 apiece and new items at half-price, ensuring there is something for every budget. We are also

introducing a Hardship Fund, recognising that there are some families who may not even be able to afford the very minimal fees. Families will be able to access the Hardship Fund by self-referral and/or through referrals made by our partner organisations and schools. EDI applies to our recruitment too, with all welcome to join as volunteers regardless of age, gender, religion, ethnicity etc. We have volunteers as young as 15 years to 58 years, across the full spectrum of the community. All are bound by a common mission, to support those in need.

Financial review

The charity received £631 in donations, £1,389 in earned income and £10,996 in grants from The National Lottery Community Fund and The London Borough of Hackney during the year. The total income was £13,016 (2022: £4,506). Increased income reflects the trustees' ambition to grow the charity, its capacity and delivery. The charity's expenditure during the year amounted to £5,100, primarily for the delivery of charitable activities as well as associated governance, fundraising and support costs, as listed in the financial statements in notes to the accounts. Trustees were able to keep expenses minimal through significant in-kind contributions and volunteer input. At the year end, £7,701 in restricted reserves were held over, the majority of which was designated for our May 2023 sale, and will be listed in next year's financial statements.

The trustees are satisfied with the charity's financial performance during the year in review.

Reserves policy

The trustees retain reserves as necessary and where appropriate, consolidate funds in order to provide activities to its users they feel to be appropriate. At the period end, the charity held free unrestricted reserves of £564 (2022: £349). The trustees acknowledge the need for sustainability, and are currently working towards holding a minimum of 3 months running costs in reserves at all times.

Plans for future periods

The community we support reside in the London Borough of Hackney and its surrounding areas, which rank within the lowest third on the Indices of Multiple Deprivation. The current economic climate has bared the inequalities and extent of poverty within our community. The cost-of-living crisis has been specifically harsh for poor families, and those already experiencing structural and racial inequality. Recent welfare change in the UK has been especially harsh on large families. In particular the onset of the two-child limit to welfare benefits and other welfare caps have caused steep increases in poverty and hardship especially for those with larger than average families, now even more so with the increased cost of goods, meaning each child equals significant additional financial pressures on top of the household pressures of rent, utilities and subsistence. As one of the frontline poverty relief services within our community, we've seen demand for our services increase dramatically as of late! More than 70% of survey respondents have indicated that they would like to see more (non-uniform) clothing and/or other items, as well as increased frequency and capacity of operations. Whereas trustees didn't intend for Pretty Pleats Ltd to become a large-scale regular operation (at present it is very seasonal due to its early aims of supplying school uniforms), it it is now becoming increasingly evident that we need to scale services in order to support a community in crisis. We've contracted professional charity consultants to support us to scale, develop governance and increase income to support this.

Trustees are forward-thinking, envisioning a future where:

" A Hardship Fund will support those most in-need to access goods for free, removing minimal fees of £2-£5 apiece. " Proper software and systems will be introduced to track sales, stock, accounts, donations etc, streamlining operations and increasing efficiency and accountability. " We'll work in tandem with ALL local schools. " We'll partner with food banks, financial/debt advice, family services, school safeguarding leads etc to facilitate cross-referrals. " We'll expand stock to include non-uniform clothing, footwear, school supplies and household goods. " We'll partner with more local stores to collect surplus product for distribution. " We'll be open to the public regularly, as opposed to seasonally, moving on from our narrow uniform provision to becoming a go to space for discounted (and for some, free) clothing/household goods.

The trustees' annual report and the strategic report were approved on 6 November 2023 and signed on behalf of the board of trustees by:

T Lowy

Trustee

Pretty Pleats Ltd

Company Limited by Guarantee

Statement of Financial Activities

(including income and expenditure account)

Year ended 30 April 2023

	2023			2022
	Unrestricted funds	Restricted funds	Total funds	Total funds
Note	£	£	£	£

Income and endowments

Donations and legacies	5	631	10,996	11,627	2,443
Other income	6	1,389	–	1,389	2,063
		-------	--------	--------	-------
Total income		2,020	10,996	13,016	4,506
		-------	--------	--------	-------

Expenditure

Expenditure on raising funds:

	Costs of raising donations and legacies	7	68	–	68	300
Expenditure on charitable activities		8,9	1,737	3,295	5,032	3,857
			-------	--------	--------	-------
Total expenditure			1,805	3,295	5,100	4,157
			-------	--------	--------	-------

	-------	--------	--------	-------
Net income and net movement in funds	215	7,701	7,916	349
	-------	--------	--------	-------

Reconciliation of funds

Total funds brought forward	349	–	349	–
	-------	--------	--------	-------
Total funds carried forward	564	7,701	8,265	349
	-------	--------	--------	-------

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

Pretty Pleats Ltd

Company Limited by Guarantee

Statement of Financial Position

30 April 2023

	2023	2022
Note	£	£

Current assets

Cash at bank and in hand	9,957	750

Creditors: amounts falling due within one year	13	1,692	401
		-------	----
Net current assets		8,265	349
		-------	----
Total assets less current liabilities		8,265	349
		-------	----
Net assets		8,265	349
		-------	----

Funds of the charity

Restricted funds		7,701	–
Unrestricted funds		564	349
		-------	----
Total charity funds	14	8,265	349
		-------	----

For the year ending 30 April 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

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

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

These financial statements were approved by the board of trustees and authorised for issue on 6 November 2023 , and are signed on behalf of the board by:

T Lowy

Trustee

Pretty Pleats Ltd

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 30 April 2023

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 32 Lemsford Close, Grovelands Road, London, N15 6BY.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: - income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. - legacy income is recognised when receipt is probable and entitlement is established. - income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. - income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: - expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. - expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. - other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Limited by guarantee

Pretty Pleats Ltd is a company limited by guarantee and does not have a share capital. In the event of the company being wound up, members are required to contribute an amount not exceeding £10.

5. Donations and legacies

Unrestricted Funds	Restricted Funds	Total Funds 2023
£	£	£

Donations

	Donations	631	–	631

Grants

Mains Grant	–	10,996	10,996
	----	--------	--------
	631	10,996	11,627
	----	--------	--------

Unrestricted Funds	Restricted Funds	Total Funds 2022
£	£	£

Donations

	Donations	2,443	–	2,443

Grants

Mains Grant	–	–	–
	-------	----	-------
	2,443	–	2,443
	-------	----	-------

6. Other income

	Unrestricted Funds	Total Funds 2023	Unrestricted Funds	Total Funds 2022
	£	£	£	£
Uniform sales	1,389	1,389	2,063	2,063
	-------	-------	-------	-------

7. Costs of raising donations and legacies

	Unrestricted Funds	Total Funds 2023	Unrestricted Funds	Total Funds 2022
	£	£	£	£
Costs of raising donations and legacies - Donations	68	68	300	300
	----	----	----	----

8. Expenditure on charitable activities by fund type

	Unrestricted Funds	Restricted Funds	Total Funds 2023
	£	£	£
Charitable grants	1,538	2,469	4,007
Support costs	199	826	1,025
	-------	-------	-------
	1,737	3,295	5,032
	-------	-------	-------

	Unrestricted Funds	Restricted Funds	Total Funds 2022
	£	£	£
Charitable grants	3,457	–	3,457
Support costs	400	–	400
	-------	----	-------
	3,857	–	3,857
	-------	----	-------

9. Expenditure on charitable activities by activity type

	Activities undertaken directly	Support costs	Total funds 2023	Total fund 2022
	£	£	£	£
Charitable grants	4,007	6	4,013	3,457
Governance costs	–	1,019	1,019	400
	-------	-------	-------	-------
	4,007	1,025	5,032	3,857
	-------	-------	-------	-------

10. Analysis of support costs

	Analysis of support costs	Total 2023	Total 2022
	£	£	£
General office	6	6	–
Governance costs	1,019	1,019	400
	-------	-------	----
	1,025	1,025	400
	-------	-------	----

11. Staff costs

The average head count of employees during the year was Nil (2022: Nil).

No employee received employee benefits of more than £60,000 during the year (2022: Nil).

12. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

13. Creditors: amounts falling due within one year

	2023	2022
	£	£
Trade creditors	421	–
Accruals and deferred income	670	–
Other creditors	601	401
	-------	----
	1,692	401
	-------	----

14. Analysis of charitable funds

Unrestricted funds

	At 1 May 2022	Income	Expenditure	At 30 April 2023
	£	£	£	£
General funds	349	2,020	(1,805)	564
	----	-------	-------	----

	At 1 May 2021	Income	Expenditure	At 30 April 2022
	£	£	£	£
General funds	–	4,506	(4,157)	349
	----	-------	-------	----

Restricted funds

	At 1 May 2022	Income	Expenditure	At 30 April 2023
	£	£	£	£
Restricted fund - grants receivable	–	10,996	(3,295)	7,701
	----	--------	-------	-------

	At 1 May 2021	Income	Expenditure	At 30 April 2022
	£	£	£	£
Restricted fund - grants receivable	–	–	–	–
	----	----	----	----

15. Analysis of net assets between funds

	Unrestricted Funds	Restricted Funds	Total Funds 2023
	£	£	£
Current assets	2,256	7,701	9,957
Creditors less than 1 year	(1,692)	–	(1,692)
	-------	-------	-------
Net assets	564	7,701	8,265
	-------	-------	-------

	Unrestricted Funds	Restricted Funds	Total Funds 2022
	£	£	£
Current assets	750	–	750
Creditors less than 1 year	(401)	–	(401)
	----	----	----
Net assets	349	–	349
	----	----	----

16. Taxation

Pretty Pleats Ltd is a registered charity and therefore is not liable to income tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.