Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-3100037656440423866063579263330627477815601630620953903443173falseP R PinedaK L M Pybus2024-12-31false02023-01-012023-12-31097124830 09712483 2023-01-01 2023-12-31 09712483 2022-01-01 2022-12-31 09712483 2023-12-31 09712483 2022-12-31 09712483 2022-01-01 09712483 c:Director1 2023-01-01 2023-12-31 09712483 c:Director2 2023-01-01 2023-12-31 09712483 c:RegisteredOffice 2023-01-01 2023-12-31 09712483 d:PlantMachinery 2023-01-01 2023-12-31 09712483 d:PlantMachinery 2022-01-01 2022-12-31 09712483 d:PlantMachinery 2023-12-31 09712483 d:PlantMachinery 2022-12-31 09712483 d:PlantMachinery 2022-01-01 09712483 d:Goodwill 2023-01-01 2023-12-31 09712483 d:CurrentFinancialInstruments 2023-12-31 09712483 d:CurrentFinancialInstruments 2022-12-31 09712483 d:Non-currentFinancialInstruments 2023-12-31 09712483 d:Non-currentFinancialInstruments 2022-12-31 09712483 d:ShareCapital 2023-01-01 2023-12-31 09712483 d:ShareCapital 2023-12-31 09712483 d:ShareCapital 2022-01-01 2022-12-31 09712483 d:ShareCapital 2022-12-31 09712483 d:ShareCapital 2022-01-01 09712483 d:SharePremium 2023-01-01 2023-12-31 09712483 d:SharePremium 2023-12-31 09712483 d:SharePremium 2022-01-01 2022-12-31 09712483 d:SharePremium 2022-12-31 09712483 d:SharePremium 2022-01-01 09712483 d:ForeignCurrencyTranslationReserve 2023-01-01 2023-12-31 09712483 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 09712483 d:RetainedEarningsAccumulatedLosses 2023-12-31 09712483 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 09712483 d:RetainedEarningsAccumulatedLosses 2022-12-31 09712483 c:OrdinaryShareClass1 2023-01-01 2023-12-31 09712483 c:OrdinaryShareClass1 2023-12-31 09712483 c:OrdinaryShareClass1 2022-12-31 09712483 c:OrdinaryShareClass2 2023-01-01 2023-12-31 09712483 c:OrdinaryShareClass2 2023-12-31 09712483 c:OrdinaryShareClass2 2022-12-31 09712483 c:OrdinaryShareClass3 2023-01-01 2023-12-31 09712483 c:OrdinaryShareClass3 2023-12-31 09712483 c:OrdinaryShareClass3 2022-12-31 09712483 c:FullIFRS 2023-01-01 2023-12-31 09712483 c:AuditExempt-NoAccountantsReport 2023-01-01 2023-12-31 09712483 c:FullAccounts 2023-01-01 2023-12-31 09712483 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 09712483 d:ConvertibleDebtEquityComponentReserve 2023-01-01 2023-12-31 09712483 d:ConvertibleDebtEquityComponentReserve 2022-01-01 2022-12-31 09712483 d:ConvertibleDebtEquityComponentReserve 2023-12-31 09712483 d:ConvertibleDebtEquityComponentReserve 2022-12-31 09712483 d:ConvertibleDebtEquityComponentReserve 2022-01-01 09712483 d:ValueBeforeAllowanceForImpairmentLoss 2023-12-31 09712483 d:ValueBeforeAllowanceForImpairmentLoss 2022-12-31 09712483 1 2023-01-01 2023-12-31 09712483 11 2023-01-01 2023-12-31 09712483 12 2023-01-01 2023-12-31 09712483 17 2023-01-01 2023-12-31 09712483 d:Non-currentFinancialInstruments d:Secured 2023-12-31 09712483 d:Non-currentFinancialInstruments d:Secured 2022-12-31 09712483 d:CurrentFinancialInstruments d:Secured 2023-12-31 09712483 d:CurrentFinancialInstruments d:Secured 2022-12-31 09712483 d:CurrentFinancialInstruments d:Unsecured 2023-12-31 09712483 d:CurrentFinancialInstruments d:Unsecured 2022-12-31 09712483 d:CurrentFinancialInstruments d:ValueBeforeAllowanceForImpairmentLoss 2023-12-31 09712483 d:CurrentFinancialInstruments d:ValueBeforeAllowanceForImpairmentLoss 2022-12-31 09712483 e:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:pure xbrli:shares
Registered number: 09712483















ETHICAL APPAREL AFRICA (EAA) LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
COMPANY INFORMATION


 
Directors
P R Pineda 
K L M Pybus 




Registered number
09712483



Registered office
1 Eastbourne Road
Tooting

London

SW17 9EG




Accountants
Warrener Stewart
Chartered Accountants

Harwood House

43 Harwood Road

London

SW6 4QP





 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3
Consolidated Statement of Profit or Loss and Other Comprehensive Income
 
4
Consolidated Statement of Financial Position
 
5 - 6
Company Statement of Financial Position
 
7 - 8
Consolidated Statement of Changes in Equity
 
9 - 10
Company Statement of Changes in Equity
 
11
Consolidated Statement of Cash Flows
 
12
Company Statement of Cash Flows
 
13
Notes to the Consolidated Financial Statements
 
14 - 34
Company Detailed Profit and Loss Account and Summaries
 
34
 

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents his strategic report for the year ended 31 December 2023.

Introduction
 
The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2014 to set out within the company's Strategic Report the Company's Strategic Report Information Required by Schedule 7 pf the large and medium sized companies and groups (Accounts and reports) Regulation 2008. This includes that would which have been included in future developments. 

Business review
 
Ethical Apparel Africa (EAA) is a apparel sourcing and manufacturing firm headquartered in the UK with majority ownership of a garment manufacturing factory in Ghana (“Maagrace”). EAA set up its business in response to the global shift of garment manufacturing from Asia (notably China) to Africa. EAA has a strong social purpose, and has a mission to create over 10,000 quality manufacturing jobs in West Africa by 2030 while shaping the emerging apparel ecosystem to prioritise people and protect the planet. 
EAA’s primary source of revenue is through apparel production order contracts with major US buyers. Clients include for instance Walmart USA (through MAS Acme USA), Refrigiwear, Pajamagram, Obermeyer, Hurley’s Religious Goods, and KONG, and George Clothing, among others. The majority of EAA’s order revenue comes from US buyers (in 2023, 93%), as there is a significant duty advantage for US companies that import apparel manufactured in Africa (under the “African Growth & Opportunity Act”). In addition to placing orders for manufacture at its owned facility Maagrace, EAA also periodically subcontracts “cut make trim” (factory labour) production to other locally owned factories in Ghana that have achieved EAA’s rigorous technical and compliance requirements. 
EAA is one of the ‘first movers’ to invest in the apparel manufacturing industry as it emerges in Ghana and as such has had to dedicate significant time and resources to attracting client interest / orders and building capability to execute production to international standards. Now that the baseline capacity has been proven to export to large (multi $B) clients such as MAS Acme / Walmart USA and George Clothing, the business is entering a new phase of growth. 
Particularly as geopolitical factors lead US buyers to move to diversify sourcing away from China, EAA has experienced significant inbound interest from US companies looking to benefit from the cost competitiveness, duty-free status, and favourable logistics that Ghana offers. EAA expects Ghana’s apparel manufacturing industry to grow rapidly, and has a strategic roadmap in place to ensure we maintain our position as one of the country’s top two apparel exporters as the sector takes off. 
In 2023, EAA achieved approximately $2.5 million in exports and employed 400 people at Maagrace. In 2024, the company anticipates increasing exports and job opportunities by 1.5 times, alongside onboarding at least two additional large clients (valued at $500 million or more), setting the foundation for continued expansion. By 2026, EAA projects revenues will exceed $15 million based on its growing client portfolio.

Financial key performance indicators
 
The company reports quarterly to its investors on the following financial KPIs:
Revenue (for EAA, for Maagrace, and on a consolidated basis)
Gross profit (for EAA, for Maagrace, and on a consolidated basis)
EBITDA (for EAA, for Maagrace, and on a consolidated basis)
the total production order value contracted for the year, expressed in dollar terms and as a percentage of the total annual order book budget target.
Order working capital, calculated as the percentage of EAA funds used for work-in-progress inventory relative to the total production orders in process.
Commission rate, representing gross profit on products as a percentage of orders.

Page 1

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The primary operational risks and uncertainties the Company faces in the near term include leadership transition and timing challenges related to client order cycles. The planned retirement of Technical Director Paul Allen in 2024 introduces a leadership transition risk, necessitating a robust recruitment and selection process to ensure a capable successor and a seamless handover. Additionally, timing uncertainties surrounding client order cycles present challenges, as typical timelines from client interest to bulk production in this industry range from 6 to 12 months. This can extend business development lead times and result in prolonged periods of unconfirmed orders.
On a broader scale, the main macroeconomic and geopolitical risks ahead involve regulatory and global stability concerns. A key regulatory risk is the timing of the renewal of the African Growth & Opportunity Act (AGOA). While AGOA renewal has historically received bipartisan support and is anticipated, the precise timing remains unclear, and any delays may affect buyer and investor confidence. Furthermore, general business risks include the potential for future pandemics or conflicts, which could cause global instability and disrupt supply chains, logistics, and operations.

Other key performance indicators
 
Additional key performance indicators reported to investors quarterly include metrics such as the order book, which tracks the number of major clients (companies valued at $25M or more) placing orders. Factory operations are evaluated on several fronts: utilization of the direct factory workforce is measured as the ratio of minutes spent on production relative to total direct worker minutes available, while production efficiency is assessed by comparing actual output to the output that would have been achieved at full efficiency based on industry-standard time data. Quality is monitored through the Defects per Hundred Units (DHU) metric. Absenteeism is measured as a percentage of total worker days, and workforce turnover is tracked monthly as a percentage of the total workforce.
Impact targets focus on employment and environmental contributions. These include the total number of factory jobs created, and specifically the number of “good” jobs—defined as those offering permanent contracts, leave entitlements, fair income, workplace security, growth prospects, and a stable work environment. Gender representation is also measured, both as a percentage of women employed overall and within management roles. Workforce satisfaction is evaluated annually by an independent third party using a methodology from the Harvard T.H. Chan School of Public Health. Additionally, CO2 emissions avoided through solar energy use are reported in kilograms, reflecting the company’s environmental commitment.


This report was approved by the board and signed on its behalf.



P R Pineda
Director

Date: 31 December 2024

Page 2

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors

The directors who served during the year were:

P R Pineda 
K L M Pybus 

Directors' responsibilities statement

The directors acknowledge their responsible for preparing the Group Strategic Report, Directors' Report and the consolidated financial statements, in accordance with applicable law.

Company law requires the directors acknowledge to prepare consolidated financial statements for each financial year. Under that law they have elected to prepare the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.

Under company law the directors acknowledge must not approve the consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing the consolidated financial statements, the directors acknowledge their required to:

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;

assess the Group and Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

use the going concern basis of accounting unless they either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

The directors acknowledge their responsibilities for keeping adequate accounting records that are sufficient to show and explain the Parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £734,393 (2022 - loss £1,489,574).

The directors do not recommend the payment of a dividend.

This report was approved by the board and signed on its behalf.
 
P R Pineda
Director

Date: 31 December 2024
Page 3

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note
£
£

  

Revenue
 6 
2,626,808
2,481,305

Cost of sales
  
(1,872,105)
(1,998,539)

Gross profit
  
754,703
482,766

  

Other operating income
 7 
-
139,331

Administrative expenses
  
(1,423,922)
(2,212,567)

Other expenses
  
(10,273)
-

Loss from operations
  
(679,492)
(1,590,470)

  

Finance income
 10 
133
-

Finance expense
 10 
(54,695)
(39,012)

Loss before tax
  
(734,054)
(1,629,482)

  

Tax (expense)/credit
 11 
(339)
139,908

Loss for the year
  
(734,393)
(1,489,574)

Other comprehensive income:

Items that will not be reclassified to profit or loss:
  

Items that will or may be reclassified to profit or loss:
  

Exchange gains arising on translation on foreign operations
  
158,403
(178,945)

  
158,403
(178,945)

  

Other comprehensive income for the year, net of tax
  
158,403
(178,945)

  

Total comprehensive income
  
(575,990)
(1,668,519)

The notes on pages 14 to 34 form part of these financial statements.

Page 4

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
REGISTERED NUMBER: 09712483
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023


2023
2022
Note
£
£

Assets

Non-current assets
  

Property, plant and equipment
 12 
725,257
744,512

Intangible assets
 13 
480,854
480,854

Deferred tax assets
 11 
383,814
383,814

  
1,589,925
1,609,180

Current assets
  

Inventories
 15 
479,174
259,175

Trade and other receivables
 16 
304,226
293,463

Cash and cash equivalents
 24 
86,737
273,259

  
870,137
825,897

  

Total assets

  

2,460,062
2,435,077

Liabilities

Non-current liabilities
  

Loans and borrowings
 18 
34,479
40,359

  
34,479
40,359

Current liabilities
  

Trade and other liabilities
 17 
328,128
564,760

Loans and borrowings
 18 
1,292,566
1,086,492

  
1,620,694
1,651,252

  

Total liabilities
  
1,655,173
1,691,611

  

  

Net assets
  
804,889
743,466


Issued capital and reserves attributable to owners of the parent
 20 

Share capital
 19 
188
188

Share premium reserve
  
2,021,193
2,021,193

Convertible debt option reserve
  
1,316,653
915,927

Foreign exchange reserve
  
(20,543)
(178,945)

Retained earnings
  
(3,064,755)
(2,330,362)
Page 5

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
REGISTERED NUMBER: 09712483
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023


2023
2022
Note
£
£

  
252,736
428,001

  

Non-controlling interest
  
552,153
315,465

TOTAL EQUITY
  
804,889
743,466

For the year ending 31 December 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

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.

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

The financial statements on pages 4 to 34 were approved and authorised for issue by the board of directors and were signed on its behalf by:




P R Pineda
K L M Pybus
Director
Director
Date: 31 December 2024

The notes on pages 14 to 34 form part of these financial statements.

Page 6

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
REGISTERED NUMBER: 09712483
 
 
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023


2023
2022
Note
£
£

Assets

Non-current assets
  

Property, plant and equipment
 12 
156,712
163,795

Other non-current investments
 14 
736,084
736,084

Deferred tax assets
 11 
383,814
383,814

  
1,276,610
1,283,693

Current assets
  

Inventories
 15 
375,680
259,175

Trade and other receivables
 16 
216,772
792,634

Cash and cash equivalents
 24 
68,204
256,523

  
660,656
1,308,332

  

Total assets

  

1,937,266
2,592,025

Liabilities

Non-current liabilities
  

Loans and borrowings
 18 
34,479
40,359

  
34,479
40,359

Current liabilities
  

Trade and other liabilities
 17 
261,549
173,993

Loans and borrowings
 18 
1,104,019
904,331

  
1,365,568
1,078,324

  

Total liabilities
  
1,400,047
1,118,683

  

  

Net assets
  
537,219
1,473,342


Issued capital and reserves attributable to owners of the parent
 20 

Share capital
 19 
188
188

Share premium reserve
  
2,021,193
2,021,193

Convertible debt option reserve
  
1,316,653
915,927

Retained earnings
  
(2,800,815)
(1,463,966)

TOTAL EQUITY
  
537,219
1,473,342
Page 7

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
REGISTERED NUMBER: 09712483
 
 
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023


The Company's loss for the year was £359,996 (2022 - £623,178).

For the year ending 31 December 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

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.

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

The financial statements on pages 4 to 34 were approved and authorised for issue by the board of directors and were signed on its behalf by:




P R Pineda
K L M Pybus
Director
Director


Date: 31 December 2024

The notes on pages 14 to 34 form part of these financial statements.

Page 8
 


 
ETHICAL APPAREL AFRICA (EAA) LIMITED


 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Share capital
Share premium
Convertible debt option reserve
Foreign exchange reserve
Retained earnings
Total attributable to equity holders of parent
Non-controlling interest
Total equity


£
£
£
£
£
£
£
£

At 1 January 2023
188
2,021,193
915,927
(178,945)
(2,330,362)
428,001
(236,688)
191,313

Comprehensive income for the year






Loss for the year
-
-
-
-
(590,892)
(590,892)
(143,500)
(734,393)

Other comprehensive income
-
-
-
(595,176)
-
(595,176)
-
(595,176)

Total comprehensive income for the year
-
-
-
(595,176)
(590,892)
(1,186,068)
(143,500)
(1,329,568)

Contributions by and distributions to owners









Equity share options issued
-
-
400,726
-
-
400,726
-
400,726

Total contributions by and distributions to owners
-
-
400,726
-
-
400,726
-
400,726

At 31 December 2023
188
2,021,193
1,316,653
(774,121)
(2,921,254)
(357,341)
(380,188)
(737,529)

The notes on pages 14 to 34 form part of these financial statements.

Page 9

 


 
ETHICAL APPAREL AFRICA (EAA) LIMITED


 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022



Share capital
Share premium
Convertible debt option reserve
Foreign exchange reserve
Retained earnings
Total attributable to equity holders of parent
Non-controlling interest
Total equity


£
£
£
£
£
£
£
£

At 1 January 2022
188
2,021,193
296,457
-
(840,788)
1,477,050
-
1,477,050

Comprehensive income for the year






Loss for the year
-
-
-
-
(1,252,886)
(1,252,886)
(236,688)
(1,489,574)

Other comprehensive income
-
-
-
(178,945)
-
(178,945)
-
(178,945)

Total comprehensive income for the year
-
-
-
(178,945)
(1,252,886)
(1,431,831)
(236,688)
(1,668,519)

Contributions by and distributions to owners









Equity share options issued
-
-
619,470
-
-
619,470
-
619,470

Total contributions by and distributions to owners
-
-
619,470
-
-
619,470
-
619,470

At 31 December 2022
188
2,021,193
915,927
(178,945)
(2,093,674)
664,689
(236,688)
428,001

The notes on pages 14 to 34 form part of these financial statements.

Page 10
 
ETHICAL APPAREL AFRICA (EAA) LIMITED

 
 
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022



Share capital
Share premium
Convertible debt option reserve
Retained earnings
Total equity


£
£
£
£
£

At 1 January 2022
188
2,021,193
296,457
(840,788)
1,477,050

Loss for the year
-
-
-
(623,178)
(623,178)

Total comprehensive income for the year
-
-
-
(623,178)
(623,178)

Equity share options issued
-
-
619,470
-
619,470

Total contributions by and distributions to owners
-
-
619,470
-
619,470

At 31 December 2022
188
2,021,193
915,927
(1,463,966)
1,473,342

At 1 January 2023
188
2,021,193
915,927
(2,440,819)
496,489

Loss for the year
-
-
-
(359,996)
(359,996)

Total comprehensive income for the year
-
-
-
(359,996)
(359,996)

Equity share options issued
-
-
400,726
-
400,726

Total contributions by and distributions to owners
-
-
400,726
-
400,726

At 31 December 2023
188
2,021,193
1,316,653
(2,800,815)
537,219

The notes on pages 14 to 34 form part of these financial statements.

Page 11

 
ETHICAL APPAREL AFRICA (EAA) LIMITED

 
 
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note
£
£

Cash flows from operating activities
  

Loss for the year
  
(734,393)
(1,489,574)

Adjustments for
  

Depreciation of property, plant and equipment
 12 
110,817
7,035

Finance expense
 10 
1,132
1,207

  
(622,444)
(1,481,332)

Movements in working capital:
  

Increase in trade and other receivables
  
(471,022)
(93,008)

(Increase)/decrease in inventories
  
(405,883)
19,843

Increase in trade and other payables
  
1,080,944
882,219

Cash generated from operations
  
(418,405)
(672,278)

  

Net cash used in operating activities

  
(418,405)
(672,278)

Cash flows from investing activities
  

Purchases of property, plant and equipment
  
(167,711)
(2,615)

Proceeds from disposal of property, plant and equipment
  
-
5,653

Interest paid
  
(1,132)
(1,207)

Net cash (used in)/from investing activities

  
(168,843)
1,831

Cash flows from financing activities
  

Issue of convertible debt
  
400,726
619,470

Net cash from financing activities
  
400,726
619,470

Net decrease in cash and cash equivalents
  
(186,522)
(50,977)

  

Cash and cash equivalents at the beginning of year
  
273,259
324,236

Cash and cash equivalents at the end of the year
 24 
86,737
273,259

The notes on pages 14 to 34 form part of these financial statements.

Page 12

 
ETHICAL APPAREL AFRICA (EAA) LIMITED

 
 
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note
£
£

Cash flows from operating activities
  

Loss for the year
  
(359,996)
(623,178)

Adjustments for
  

Depreciation of property, plant and equipment
 12 
23,458
28,831

Finance expense
 10 
54,695
1,207

Gain on sale of property, plant and equipment
  
-
(4,933)

  
(281,843)
(598,073)

Movements in working capital:
  

Increase in trade and other receivables
  
(400,578)
(93,008)

(Increase)/decrease in inventories
  
(116,505)
19,843

Increase in trade and other payables
  
280,951
718,308

Cash generated from operations
  
(517,975)
47,070

  

Net cash (used in)/from operating activities

  
(517,975)
47,070

Cash flows from investing activities
  

Acquisition of subsidiary, net of cash acquired
  
-
(736,084)

Purchases of property, plant and equipment
  
(16,375)
(2,615)

Proceeds from disposal of property, plant and equipment
  
-
5,653

Interest received
  
(54,695)
(1,207)

Net cash used in investing activities

  
(71,070)
(734,253)

Cash flows from financing activities
  

Issue of convertible debt
  
400,726
619,470

Net cash from financing activities
  
400,726
619,470

Net decrease in cash and cash equivalents
  
(188,319)
(67,713)

  

Cash and cash equivalents at the beginning of year
  
256,523
324,236

Cash and cash equivalents at the end of the year
 24 
68,204
256,523

The notes on pages 14 to 34 form part of these financial statements.

Page 13

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies

 
1.1

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:
has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:
the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
potential voting rights held by the Company, other vote holders or other parties;
rights arising from other contractual arrangements; and
any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at this time that decisions need to be made, including voting patterns at previous shareholders' meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Page 14

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)


1.1
Basis of consolidation (continued)


Changes in the Group's ownership interests in existing subsidiaries

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Company.

When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and its calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent account under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.

 
1.2

Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

 
1.3

Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Group recognises revenue when it transfers control over a product or service to a customer.

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

  
1.4

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Page 15

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)


1.5

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

  
1.6

Employee benefits

 
1.7

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

 
1.8

Property, plant and equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following range:

Plant and machinery
over useful life

 
1.9

Intangible assets

 
1.10

Inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a first in, first out basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

 
1.11

Financial instruments

Financial assets and financial liabilities are recognised when a Group entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Page 16

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)

 
1.12

Non-controlling interests

For business combinations completed prior to 1 January 2010, the Group initially recognised any non-controlling interest in the acquiree at the non-controlling interest's proportionate share of the acquiree's net assets. For business combinations completed on or after 1 January 2010 the Group has the choice, on a transaction by transaction basis, to initially recognise any non-controlling interest in the acquiree which is a present ownership interest and entitles its holders to a proportionate share of the entity's net assets in the event of liquidation at either acquisition date fair value or, at the present ownership instruments' proportionate share in the recognised amounts of the acquiree's identifiable net assets. Other components of non-controlling interest such as outstanding share options are generally measured at fair value. The Group has not elected to take the option to use fair value in acquisitions completed to date.

From 1 January 2010, the total comprehensive income of non-wholly owned subsidiaries is attributed to owners of the parent and to the non-controlling interests in proportion to their relative ownership interests. Before this date, unfunded losses in such subsidiaries were attributed entirely to the Group. In accordance with the transitional requirements of IAS 27 (2008), the carrying value of non-controlling interests at the effective date of amendment has not been restated.


2.


Reporting entity

Ethical Apparel Africa (EAA) Limited (the 'Company') is a limited company incorporated in . The Company's registered office is at . These consolidated financial statements comprise the Company and its subsidiaries (collectively the 'Group' and individually 'Group companies'). The Group is primarily involved in manufacturing & sourcing that enables brands to diversify their supply chains through ethical production in West Africa..


3.


Basis of preparation

The Group's consolidated and the Company's individual financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's board of directors on 31 December 2024.

Details of the Group's accounting policies, including changes during the year, are included in note 1.

The Company has taken advantage of the exemption available under section 408 of the Companies Act 2006 and elected not to present its own Statement of Comprehensive Income in these financial statements.

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Group accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

The areas where judgments and estimates have been made in preparing the consolidated financial statements and their effects are disclosed in note 5.

Page 17

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Basis of preparation (continued)


3.1 Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following items, which are measured on an alternative basis on each reporting date.


Items



3.2 Changes in accounting policies

i) New standards, interpretations and amendments effective from 1 January 2023

The following tables summarise the impacts of adopting new accounting standards on the Group's consolidated financial statements.

Consolidated Statement of Financial Position (extract)

Consolidated Statement of Comprehensive Income (extract)

The following tables summarise the impacts of adopting new accounting standards on the Company's financial statements.

Company Statement of Financial Position (extract)

ii) 

New standards, interpretations and amendments not yet effective

The following new standards, interpretations and amendments, which are not yet effective and have not been adopted early in these financial statements, will or may have an effect on the Company's future financial statements:

Heading 1



The directors anticipate that the adoption of these Standards in future periods may have an impact on the results and net assets of the Company, however, it is too early to quantify this.

The directors anticipate that the adoption of other Standards and interpretations that are not yet effective in future periods will only have an impact on the presentation in the financial statements of the Company.


4.


Functional and presentation currency

These consolidated financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.

Page 18

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Accounting estimates and judgments

5.1 Judgment

Judgment 1

In the application of the Company's accounting policies, which are described in note 3, the director is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant and are continually reviewed on an ongoing basis.


5.2 Estimates and assumptions

Allowance for expected credit losses

The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the lifetime expected credit loss, group based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience and historical collection rates.

Revenue from contacts with customers

When deciding the most appropriate basis for presenting revenue, both the legal form and the substance of the agreement between the company and its business partners and customers are reviewed to determine each party's respective role in the transaction. Factors taken into consideration include whether the Company as the primary obligor with the customer and whether the Company has attitude in determining pricing.


6.


Revenue


The following is an analysis of the Group's revenue for the year from continuing operations:


2023
2022
£
£


Sale of goods
2,584,029
2,434,795

Other income
18,635
16,349

Development consultanct income
24,144
30,161

2,626,808
2,481,305


7.


Other operating income

2023
2022
£
£


Government grants receivable
-
139,331

Page 19

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employee benefit expenses

Group


2023
2022
£
£

Employee benefit expenses (including directors) comprise:

Wages and salaries
510,753
338,665

National insurance
38,592
28,957

Defined contribution pension cost
2,484
2,508

551,829
370,130


The monthly average number of persons, including the directors, employed by the Group during the year was as follows:


2023
2022
No.
No.

Directors
2
2

2
2

Company


2023
2022
£
£

Employee benefit expenses (including directors) comprise:

Wages and salaries
101,232
96,432

National insurance
38,592
28,957

Defined contribution pension cost
2,484
2,508

142,308
127,897



9.


Directors' remuneration

2023
2022
£
£


Directors' emoluments
101,232
96,432

Group contributions to pension schemes
2,484
2,508

103,716
98,940


Page 20

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Finance income and expense

Recognised in profit or loss


2023
2022
£
£



Other interest receivable
133
-

Finance expense

Bank interest payable
1,132
1,207

Other loan interest payable
53,564
37,805


Net finance expense recognised in profit or loss
(54,563)
(39,012)






Page 21

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Tax expense

11.1 Income tax recognised in profit or loss



2023
2022
£
£

Current tax


Deferred tax expense

Origination and reversal of timing differences
339
(139,908)


The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows:


2023
2022
£
£


Loss for the year
(734,393)
(1,489,574)

Income tax credit/expense (including income tax on associate, joint venture and discontinued operations)
339
(139,908)

Loss before income taxes
(734,054)
(1,629,482)


Unrelieved tax losses carried forward
339
(139,908)

Total tax expense
339
(139,908)

Page 22

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.Tax expense (continued)

11.2 Current tax assets and liabilities

2023
2022
£
£

Current tax assets

Corporation tax repayable
36,637
65,279

Current tax liabilities


11.3 Deferred tax balances

The following is the analysis of deferred tax assets/(liabilities) presented in the consolidated statement of financial position:


2023
2022
£
£


Deferred tax assets
383,814
383,814



Opening balance
Closing balance
        £
        £
2023
Property, plant and equipment

1,938

1,938

Tax losses carried forward

381,876

381,876



383,814


383,814





Opening balance
Recognised in profit or loss
Closing balance
        £
        £
        £
2022
Property, plant and equipment

260

1,678

1,938

Tax losses carried forward

243,646

138,230

381,876



243,906


139,908


383,814


Page 23

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Property, plant and equipment


Group





Plant and machinery

£



Cost or valuation



At 1 January 2022
242,231


Additions
583,332


Disposals
(5,653)



At 31 December 2022
819,910


Additions
91,562



At 31 December 2023
911,472


Plant and machinery

£



Accumulated depreciation and impairment



At 1 January 2022
51,500


Charge owned for the year
28,831


Disposals
(4,933)



At 31 December 2022
75,398


Charge owned for the year
110,817



At 31 December 2023
186,215



Net book value


At 31 December 2022
744,512


At 31 December 2023
725,257

Page 24

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Company





Plant and machinery

£



Cost or valuation



At 1 January 2022
242,231


Additions
2,615


Disposals
(5,653)



At 31 December 2022
239,193


Additions
16,375



At 31 December 2023
255,568


Plant and machinery

£



Accumulated depreciation and impairment



At 1 January 2022
51,500


Charge owned for the year
28,831


Disposals
(4,933)



At 31 December 2022
75,398


Charge owned for the year
23,458



At 31 December 2023
98,856



Net book value


At 31 December 2022
163,795


At 31 December 2023
156,712


13.


Intangible assets

Group





Goodwill

£



Cost



Additions - external
480,854



At 31 December 2022
480,854



At 31 December 2023
480,854
Page 25

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.Intangible assets (continued)



Goodwill

£



Accumulated amortisation and impairment




Net book value


At 31 December 2022
480,854


At 31 December 2023
480,854


14.

Other non-current investments


Group



Company

2023
2022
£
£

Investments in subsidiary companies
736,084
736,084


15.


Inventories

Group


2023
2022
£
£



Work in progress
479,174
259,175

Company


2023
2022
£
£



Work in progress
375,680
259,175


16.


Trade and other receivables



Group

2023
2022
£
£

Page 26

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.Trade and other receivables (continued)


Trade receivables
183,339
168,900

Trade receivables - net
183,339
168,900

Receivables from related parties
11,936
11,934

Total financial assets other than cash and cash equivalents classified as loans and receivables
195,275
180,834

Prepayments and accrued income
62,657
38,933

Other receivables
46,296
73,694

Total trade and other receivables
304,228
293,461

Less: current portion - trade receivables
(183,339)
(168,900)

Less: current portion - prepayments and accrued income
(62,657)
(38,933)

Less: current portion - other receivables
(46,296)
(73,694)

Less: current portion - receivables from related parties
(11,935)
(11,935)

Total current portion
(304,227)
(293,462)

Total non-current portion
-
-

The company's credit risk is primarily attributable to these receivables. The amounts presented in the balance sheet include allowances for specific doubtful receivables and expected credit losses.
Trade and other receivables are not subject to restrictions on title and no collateral is held as security. The company considers that the carrying amount of trade and other receivables is a reasonable approximation of their fair values.
Intercompany receivables are unsecured, repayable on demand and are interest free.
Deposits and prepayments include amounts paid in advance to suppliers of services and historically have covered periods from 1 to 12 months in advance. The Group's current policy, which is also adopted by the Company, is that deposits and prepayments will normally only be made for periods of up to twelve months in advance.
The other classes within trade and other receivables do not contain impaired assets.


Company

2023
2022
£
£


Trade receivables
148,539
168,900

Trade receivables - net
148,539
168,900

Receivables from related parties
11,935
525,389

Total financial assets other than cash and cash equivalents classified as loans and receivables
160,474
694,289

Prepayments and accrued income
21,456
38,933
Page 27

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.Trade and other receivables (continued)


Other receivables
34,842
59,412

Total trade and other receivables
216,772
792,634

Less: current portion - trade receivables
(148,539)
(168,900)

Less: current portion - prepayments and accrued income
(21,456)
(38,933)

Less: current portion - other receivables
(34,842)
(59,412)

Less: current portion - receivables from related parties
(11,935)
(525,389)

Total current portion
(216,772)
(792,634)

Other unallocated
-
1

Total non-current portion
-
-


17.


Trade and other payables



Group

2023
2022
£
£


Trade payables
93,132
45,947

Payables to related parties
20,608
374,636

Other payables
68,145
129,020

Accruals
43,336
13,607

Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
225,221
563,210

Other payables - tax and social security payments
-
1,548

Deferred income
102,903
-

Total trade and other payables
328,124
564,758

Less: current portion - trade payables
(93,132)
(45,947)

Less: current portion - payables to related parties
(20,608)
(374,636)

Less: current portion - other payables
(68,147)
(130,569)

Less: current portion - accruals
(43,336)
(13,607)

Less: current portion - deferred income
(102,903)
-

Total current portion
(328,126)
(564,759)

Total non-current position
-
-

Page 28

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Company

2023
2022
£
£


Trade payables
107,086
45,947

Payables to related parties
20,608
-

Other payables
34,170
119,016

Accruals
9,885
7,482

Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
171,749
172,445

Other payables - tax and social security payments
-
1,548

Deferred income
89,798
-

Total trade and other payables
261,547
173,993

Less: current portion - trade payables
(107,086)
(45,947)

Less: current portion - payables to related parties
(20,608)
-

Less: current portion - other payables
(34,171)
(120,564)

Less: current portion - accruals
(9,885)
(7,482)

Less: current portion - deferred income
(89,798)
-

Total current portion
(261,548)
(173,993)

Total non-current position
-
-


18.


Loans and borrowings


Group

2023
2022
£
£

Non-current

Bank loans - secured
34,479
40,359

34,479
40,359

Current

Bank loans - secured
165,718
177,232

Bank loans - unsecured
1,099,122
899,438

Lease liabilities
27,726
9,822

1,292,566
1,086,492

Total loans and borrowings
1,327,045
1,126,851

Page 29

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Company

2023
2022
£
£

Non-current

Bank loans - secured
34,479
40,359

34,479
40,359

Current

Bank loans - secured
4,897
4,893

Bank loans - unsecured
1,099,122
899,438

1,104,019
904,331

Total loans and borrowings
1,138,498
944,690

19.


Share capital

Authorised

2023
2023
Number
£

Shares treated as equity
A Ordinary shares of £0.01 each

10,000

100

B1 Ordinary shares of £0.01 each

4,900

49

B2 Ordinary Shares shares of £0.01 each

3,900

39

18,800

188


Issued and fully paid


2023
2023
2022
2022
Number
£
Number
£

A Ordinary shares of £0.01 each

At 1 January and 31 December
10,000

100

10,000
 
100
 

2023
2023
2022
2022
Number
£
Number
£

B1 Ordinary shares of £0.01 each

At 1 January and 31 December
4,900

49

4,900
 
49
 

Page 30

 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.Share capital (continued)

2023
2023
2022
2022
Number
£
Number
£

B2 Ordinary Shares shares of £0.01 each

At 1 January and 31 December
3,900

39

3,900
 
39
 


20.


Reserves


Share premium

This reserve records the amount received above the nominal value of shares issued, net of any transaction costs.

Foreign exchange reserve

This reserve records exchange differences arising from the translation of the financial statements of foreign subsidiaries and foreign currency transactions recognized directly in equity.

Retained earnings

This reserve includes retained earnings and accumulated losses from current and prior periods.


21.


Non-controlling interests

2023
2022
£
£


Balance at beginning of the year
(236,688)
-

Share of loss/profit for the year
(143,500)
(236,688)

Non-controlling interests arising on acquisition
315,464
315,464

(64,724)
78,776

Page 31
 


 
ETHICAL APPAREL AFRICA (EAA) LIMITED


 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Analysis of amounts recognised in other comprehensive income



Foreign exchange reserve



£



Year to 31 December 2023



Exchange differences arising on translation of foreign operations
(595,176)



(595,176)

Page 32

 


 
ETHICAL APPAREL AFRICA (EAA) LIMITED


 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.Analysis of amounts recognised in other comprehensive income (continued)



Foreign exchange reserve



£



Year to 31 December 2022



Exchange differences arising on translation of foreign operations
(178,945)



(178,945)

Page 33
 
ETHICAL APPAREL AFRICA (EAA) LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Controlling party

The company is a jointly controlled by K Pybus and P Pineda.


24.

Notes supporting statement of cash flows

Group


2023
2022
£
£


Cash at bank available on demand
86,737
273,259


Company


2023
2022
£
£


Cash at bank available on demand
68,204
256,523



25.

Events after the reporting date


Group

There were no significant events after 31 December 2023 that required adjustment to or disclosure in the financial statements.

Page 34