Company registration number 05660494 (England and Wales)
THE BRANDS GROUP LIMITED
ANNUAL REPORT AND
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2024
PAGES FOR FILING WITH REGISTRAR
THE BRANDS GROUP LIMITED
COMPANY INFORMATION
Directors
N Craigie
L Gelderd
P Cronin
R Spence
J Wang
V Morton
S Keen
(Appointed 7 December 2023)
Y Field
(Appointed 12 September 2024)
M Roberts
(Appointed 2 April 2024)
J Plows
(Appointed 15 April 2024)
K Harper
Secretary
J A Noble
Company number
05660494
Registered office
100 Victoria Embankment
London
EC4Y ODH
Accountants
Watling & Hirst Limited
Cawley Place
15 Cawley Road
Chichester
West Sussex
PO19 1UZ
Business address
100 Victoria Embankment
London
EC4Y 0DH
THE BRANDS GROUP LIMITED
CONTENTS
Page
Directors' report
1 - 3
Accountants' report
4
Statement of income and retained earnings
5
Balance sheet
6
Notes to the financial statements
7 - 9
THE BRANDS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Principal activities
The principal activity of the company throughout the period was that of the promotion of branding and the building of awareness of its benefits.

The company is a not for profit company limited by guarantee.
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A Appleton
(Resigned 7 December 2023)
N Craigie
L Gelderd
L Cooper
(Resigned 27 March 2024)
O Blackwood
(Resigned 11 September 2024)
P Cronin
O Anugwom
(Resigned 4 December 2024)
R Spence
J Wang
V Morton
E Campetti
(Resigned 11 September 2024)
S Keen
(Appointed 7 December 2023)
Y Field
(Appointed 12 September 2024)
M Roberts
(Appointed 2 April 2024)
J Plows
(Appointed 15 April 2024)
K Harper

 

Review of Business

 

While inflationary pressures eased towards the end of the Group’s financial year 1 November 2023 to 31 October 2024, the period was characterised by tight consumer spending, a climate in which private label products continued to grow their market share to over 50% of total grocery and the discount channel thrived. The period also experienced political change, with a General Election called for 4 July 2024 which saw a Labour government elected with a significant parliamentary majority.

 

During the period, the Group continued its focus on its three core priorities, championing brands, shaping positively the trading climate for brands and supporting members. With the pending retirement of the Director, a strategic review was implemented, led by Integration Consulting, to assess the Group’s activities, direction and value for money for members. The review strongly endorsed the Group’s work while highlighting opportunities to engage with members more deeply and to be structured more efficiently.

 

Championing brands

A unique role is the promotion of brands as sources of consumer satisfaction and welfare, and drivers of innovation and growth. Weekly case studies, under the heading #WhatBrandsDo, showcased the varied contribution of specific branded companies and products of all sizes. Unusually, two Brands Lectures were held during the year, one on the cost of dull, delivered by Adam Morgan, and the other on the history and future of brand management, delivered by Mark Ritson. Significantly, the period saw the launch of the Group’s Innovation Tracker. Based on Europanel data, this found that nearly 60% of all innovation launches and 90% of all distinctive innovation launches came from branded companies in the years 2019 – 2021.

 

Meanwhile, the Group contributed to a Channel 5 documentary on brands and private labels.

THE BRANDS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

Review of Business (continued)

 

The trading climate and policy engagement

The strongest instance of the Group shaping positively the trading climate for brands lies in its supportive work on the Groceries Supply Code of Practice. The GCA’s annual supplier survey identified compliance levels at a record high at a median of 94.64%, though Amazon’s compliance is a significant outlier, falling to 47%. The Group, through regular contact with members and surveys, identified areas of compliance concerns, alerting the GCA where these were prevalent. A forum was also organised so members could share concerns direct with the GCA. The problem of disputed shortages was the predominant area of concern during the year and it was encouraging to see remedial action being taken by Amazon.

 

A further aspect of the Group’s GSCOP work focuses on the designation of retailers under the Code and calling on the Competition and Markets Authority (CMA) to designate retailers that exceed the threshold of £1 billion of grocery sales per annum. This work is important as the retail landscape evolves.

 

While the Group’s GSCOP work tends to yield short term results, a longer term view is taken with its continued support for the Oxford Symposium. The nineteenth programme in the series featured presentations on the UK grocery market, from the CMA, and comparing and contrasting retail and branded supplier business models, along with panel discussions on the role of price in competition analysis, price differences between countries, striking the optimal balance for shoppers and competition between ecosystems and the high street and the potential for competition policy to address sustainability and wider societal goals.

 

Enabling those who invest in reputation-building initiatives, whether innovation, quality, range or marketing, to reap the associated rewards is fundamental to the effective operation of brand-led businesses. Effective IP frameworks deliver this and the Group engaged IP Ministers, the UK’s Intellectual Property Office and the All Party Parliamentary IP Group accordingly. As EU laws transitioned into UK legislation, the Group took the opportunity to brief parliamentarians on the Statutory Instrument on IP exhaustion that regulates flows of parallel trade. The desired outcome, the status quo, was achieved. To support its work on the IP framework, the Group contributed to the IPO’s Marks and Designs Forum and Research Expert Advisory Group.

 

A particular long-running problem concerns the UK’s weak remedies for misleadingly similar, ‘parasitic’ packaging designs. This has both IP and consumer protection dimensions. The Group continued to highlight concerns to policymakers and contributed to external meetings and discussions on the subject. The passage of the Digital Markets, Competition and Consumer Bill through Parliament presented a chance to strengthen the protection of shoppers. The Group supported a debate in the House of Lords, along with two amendments. While neither were adopted, this prompted a meeting with the IP Minister and the launch of an internal review by the IPO, the first such review in ten years. The Group also contributed to a Sunday Times colour magazine feature on the issue.

 

The Group’s policy engagement was led by the Council and strong value was delivered by the Group’s membership of AIM and the Alliance for IP.

 

Supporting members

A strong member benefit is the training provided by the Group, on GSCOP, Competition Law and Compliance and Trading with Amazon, with members enjoying four free training places per year. The period was one of transition as the Group prepared for the retirement of its leading training provider and the appointment of a new provider. In addition, a new online format was developed based on a modular approach and the website restructured to improve its ranking on search engines. The transition, still in progress at the end of the financial period, was successful, with trial courses scoring highly with delegates. The transition resulted in additional costs at a time when demand for training from outside the membership fell, affecting revenue. In all, thirteen courses were run compared to twenty the previous year.

 

The Group supported members on relevant policy developments and was particularly active in helping members prepare for the introduction of the new Extended Producer Responsibility regime for waste packaging.

 

THE BRANDS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

Review of Business (continued)

 

Despite a challenging commercial climate, the full membership remained relatively stable, with Concha y Toro and Graftons International joining and Assisi Petcare, Gu Puds and Natural Balance Foods withdrawing. Associate membership remained stable, while two Entrepreneur members joined (Bullards Spirits and Getbuzzing) and three left (Greenypeeps, Vital Life and YesTo). Attracting new members was a continuous feature of the Group’s efforts and marketing activity, with targeted approaches, the publication of a quarterly newsletter and regular posts on social media to build the Group’s profile. To support this work, the Group introduced a new Customer Relationship Management system.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

By order of the board
J A Noble
Secretary
4 March 2025
THE BRANDS GROUP LIMITED
REPORT TO THE DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY ACCOUNTS OF THE BRANDS GROUP LIMITED
- 4 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of The Brands Group Limited for the year ended 31 October 2024 set out on pages 6 to 9 from the company’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at https://www.accaglobal.com/gb/en/member/standards/rules-and-standards/rulebook.html.

This report is made solely to the board of directors of The Brands Group Limited, as a body, in accordance with the terms of our engagement letter dated 19 October 2023. Our work has been undertaken solely to prepare for your approval the financial statements of The Brands Group Limited and state those matters that we have agreed to state to the board of directors of The Brands Group Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at https://www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Brands Group Limited and its board of directors as a body for our work or for this report.

It is your duty to ensure that The Brands Group 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 deficit of The Brands Group Limited. You consider that The Brands Group 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 The Brands Group 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.

Watling & Hirst Limited
Chartered Certified Accountants
Cawley Place
15 Cawley Road
Chichester
West Sussex
PO19 1UZ
7 March 2025
THE BRANDS GROUP LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -
2024
2023
Notes
£
£
Income
338,911
339,253
Administrative expenses
(399,071)
(315,059)
Operating (deficit)/surplus
(60,160)
24,194
Interest receivable and similar income
4,037
-
0
(Deficit)/surplus before taxation
(56,123)
24,194
Tax on (deficit)/surplus
(1,490)
(2,688)
(Deficit)/surplus for the financial year
(57,613)
21,506
Retained earnings brought forward
327,472
305,966
Retained earnings carried forward
269,859
327,472

The income and expenditure account has been prepared on the basis that all operations are continuing operations.

THE BRANDS GROUP LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 6 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
3
35,202
15,822
Cash at bank and in hand
307,852
337,977
343,054
353,799
Creditors: amounts falling due within one year
4
(73,195)
(26,327)
Net current assets
269,859
327,472
Reserves
Income and expenditure account
269,859
327,472
Total members' funds
269,859
327,472

For the financial year ended 31 October 2024 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 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 Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered 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 4 March 2025 and are signed on its behalf by:
N Craigie
M Roberts
Director
Director
Company registration number 05660494 (England and Wales)
THE BRANDS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 7 -
1
Accounting policies
Company information

The Brands Group Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 100 Victoria Embankment, London, EC4Y ODH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Income and expenditure

Subscriptions are apportioned over the period of membership on the accruals basis.

 

Income from events and training courses is recognised when the service has been provided.

 

All income is shown net of any associated VAT.

1.3
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.4
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

THE BRANDS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 8 -
Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.5
Taxation

As a mutual organisation, corporation tax is not payable on the member subscriptions or profits from member activities. Only investment income and non-member trading activities are chargeable.

1.6
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.7
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.8
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

The average monthly number of persons employed by the company during the year was:

2024
2023
Number
Number
Total
1
1
THE BRANDS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
3
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
29,760
6,265
Other debtors
5,442
9,557
35,202
15,822
4
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
27,847
6,301
Corporation tax
1,489
2,688
Other taxation and social security
5,769
5,496
Other creditors
38,090
11,842
73,195
26,327
5
Members' liability

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

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