Company registration number 03045864 (England and Wales)
TLM TRADING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
TLM TRADING LIMITED
COMPANY INFORMATION
Directors
Gordon Brown
Nicholas Green
Stuart Green - Chair
Esther Kwan
Itayi Mapuranga
Karen Mitchell
Amanda Norman - Chief Executive Officer
Colin Osborne - Represents The Leprosy Mission Global Fellowship
Peter Waddup - Represents the UK Supporting Countries of The Leprosy Mission
Company number
03045864
Registered office
80 Windmill Road
Brentford
Middlesex
United Kingdom
TW8 0QH
Auditor
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
Bankers
Barclays Bank PLC
Peterborough Business Centre
PO Box 294
Peterborough
United Kingdom
PE1 1EZ
Pension Scheme Actuaries
Peter Shellswell
First Actuarial LLP
Network House
Basing View, Basingstoke
Hampshire
RG21 4HG
TLM TRADING LIMITED
CONTENTS
Page
Chair's Report
1
Strategic report
2 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 24
TLM TRADING LIMITED
CHAIR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
Stuart Green
Chair
3 April 2025
TLM TRADING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Chief Executive's Report for and on behalf of the Board of Directors
A very successful year in terms of funds generated for The Leprosy Mission
2024 was a very successful year in terms of the funds raised for the charity in Gifts for Life and donations, generating £626,997, up 16% from £542,248 in 2023.  Included in this amount is over £100,000 in donations added to orders for the emergency appeal for Anandaban Hospital in Nepal, where a mudslide caused devasting damage to buildings and the loss of life of a staff member. £51,048 in gift aid was also generated for The Leprosy Mission International, plus an additional donation of £1,947 was made.
A small loss owing to a strategic move, reducing our future risk
Whilst the generation of the Gifts for Life and donations income is one of the main purposes of The Leprosy Mission Shop, the value of this activity is not shown in these accounts. It is important to keep this in mind when viewing these accounts which show the business having made a small loss in 2024 of (£12,714) vs a small profit in 2023 of £19,180. This loss is almost fully attributable to TUPE/redundancy and legal costs as a result of a strategic decision to move the bookkeeping function away from Elovate, our third-party warehouse. In 2023 we had experienced serious disruption following their introduction of a new warehousing system and needed to reduce our reliance on them, managing our risk and freeing us up to move warehouse should we need to. We have now consolidated all the finance work within the Finance Team at The Leprosy Mission Great Britain, with whom we share a building. We also employed a Customer Service Co-ordinator in-house to improve customer service and further reduce our vulnerability to a third-party warehouse. Thankfully, 2024 proved to be a more stable and successful period with Elovate, with a new CEO bringing in rapid and significant improvements in warehouse despatch times and contact centre performance. Following the issues faced in 2023, we were able to negotiate a three-month break clause in the contract and as a result have decided to continue our partnership with them for now, rather than move warehouse as we were considering a year ago.
Performance against objectives set for 2023/4
For 2024/5 we had set the following objectives:
1)   Improve effectiveness of marketing
The introduction of a Salesforce database in 2021 has improved reporting significantly, allowing the team to analyse the return on investment for each campaign in depth.  Constant tweaks across the whole marketing mix resulted in some of our best ROIs ever, despite the increases in postage costs. To support this, we installed Dataro software into Salesforce, meaning our mailing lists are now generated by AI which predicts which customers are most likely to buy in any given direct mail campaign, thus reducing mailing quantities, saving costs and reducing the environmental impact.
2)   Acquire new retail customers
We continued the valuable work of acquiring new customers who can be nurtured to become new supporters of The Leprosy Mission. We acquired 434 new customers in Spring 2024 (versus 764 in Spring 2023), having lowered the mailing quantity to maintain the optimum response rate against the challenging economic conditions.  In Autumn/Winter 2023 we acquired 1088 new customers (versus 1156 in Autumn/Winter 2022). New donors to the charity that have started as new customers to the The Leprosy Mission Shop have an average life time value of 4 years and £375.
3)   Manage the product range to maximise profitability
Detailed analysis of sales, made possible by the Salesforce database, informed product selection enabling the range to be refreshed and updated based on the latest data.   The number of SKUs was significantly reduced in 2023 and was reduced further in 2024, reducing storage costs and making sure we focus on the most profitable lines.
4)   Continue focus on the costs incurred, especially from our third-party warehouse
As well as the above-mentioned reductions in storage costs, significant work was done to reduce stock management costs, including ad hoc labour and stock replenishment charges which had been increasing. New protocols in place have seen a notable reduction in these.
TLM TRADING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
5)   Monitor customer satisfaction
The warehouse issues faced in 2023 had unfortunately caused some customer dissatisfaction. A restoration of customer confidence was critical. The staff team and Elovate contact centre phoned the worst-affected customers, which was well received. A letter of apology and explanation from the CEO was sent to all active customers. In addition, we made the decision to appoint an in-house Customer Service Co-ordinator to oversee our relationship with our customers. The cost of this new role is paid for in part by the reduction in the duties of the Elovate contact centre, further reducing our reliance on them. In the crucial Autumn/Winter period we paid for two dedicated staff who answered calls from customers of The Leprosy Mission Shop only. This ensured a much higher quality of service and the loss of far fewer calls.
6)   Collaborate more successfully across the Leprosy Mission Global Fellowship
The CEO was part of the Strategy Working Group developing the new Global Fellowship Strategy for 2025-2030. This included meetings in Kathmandu in March 2024 and being part of the launch of the new strategy in Delhi in November 2024. This launch coincided with the marking of the 150th anniversary of founding of The Leprosy Mission.
Aaron Scott, Head of Digital and Data, is making an important contribution to the Global Fundraising Working Group.
Moving the Finance function to The Leprosy Mission Great Britain has helped forge further good relations beyond The Shop team.
7)   Develop staff
The company has continued the practice of staff taking one week pro rata per year for professional development. This saw two members of staff make visits to The Leprosy Mission's work in India and others undertaking training in fundraising and marketing. Our Head of Digital and Data took three months of shared parental leave in 2024. This was a good opportunity for others in the team to learn and take on additional responsibility. As a result, we have a more resilient team. The 2024 Staff Engagement Survey showed the highest overall pulse score since the survey began five years ago, with 14 out of the 20 questions scoring 100%.
Future Priorities and Challenges
Building on the work of 2024 and against the background of a less-than-buoyant UK economy and an older customer base we have set the following goals and objectives for 2025/6.
Goals for 2025/6
To raise money for The Leprosy Mission in Gifts for Life, donations and gift aid.
To trade ethically, and in line with our Christian ethos, breaking even in 2025 and delivering a profit in 2026.
To recruit new supporters for The Leprosy Mission.

Objectives for 2025/6

1)    To maximise income from long loyal customers by including products they love in the range.

2)    To nurture less loyal existing customers by continuing to refresh the product range and the development of     a "We miss you" communication plan.

3)    To recruit new customers who will bring in income and become supporters of The Leprosy Mission by     continuing direct mail outreach and increasing digital advertising.

4)    To ensure superb customer service for all, including excellent service from Elovate, our third-party     warehouse, and better customer journeys and messaging.

5)    To raise £625k in GFLs and donations.

6)    To select from and tweak our existing product ranges to meet the changing needs of our three main trade     customers.

7)    To maximise the opportunities of the shopify website. (A key factor in the increased profitability of the     company is the move to an in-house built and managed shopify website which will save costs and open up     new possibilities.)

 

TLM TRADING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
We will continue to be pro-active and innovative to empower the staff team of eight to deliver these objectives, enabling them to contribute to and benefit from being part of the much larger organisation of the Global Fellowship.

On behalf of the board

Amanda Norman - Chief Executive Officer
Director
3 April 2025
TLM TRADING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

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

 

TLM Trading Limited is a subsidiary of The Leprosy Mission International (TLMI). TLMI is the leading and coordinating body for The Leprosy Mission Global Fellowship, a federation operating in the name of the Leprosy Mission in 30 countries. Since July 2022, TLM Trading Limited has been trading under the name of The Leprosy Mission Shop.

Principal activities

The company’s main activity is the enhancement of The Leprosy Mission’s profile by means of its e-commerce website, direct mail, and social media marketing. The company increases the number of supporters for The Leprosy Mission, provides funds through donations added to orders, and promotes the sale of Gifts for Life for projects funded by The Leprosy Mission. The company supports the purchase and resale of products made by people affected by leprosy and other disadvantaged groups in the developing world. During 2022 the company rebranded and started trading under the name “The Leprosy Mission Shop” in order to facilitate the aim of attracting new supporters to The Leprosy Mission.

 

Vision

Leprosy Defeated, Lives Transformed

 

Mission

To transform the lives of people affected by leprosy by trading responsibly and in line with our Christian ethos, enabling us to:

Directors

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

Gordon Brown
Nicholas Green
Stuart Green - Chair
Esther Kwan
Itayi Mapuranga
Karen Mitchell
Amanda Norman - Chief Executive Officer
Colin Osborne - Represents The Leprosy Mission Global Fellowship
Peter Waddup - Represents the UK Supporting Countries of The Leprosy Mission
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Amanda Norman - Chief Executive Officer
Director
3 April 2025
TLM TRADING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

TLM TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TLM TRADING LIMITED
- 7 -
Opinion

We have audited the financial statements of TLM Trading Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

TLM TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TLM TRADING LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

TLM TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TLM TRADING LIMITED
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Tracey Richardson BSc (Hons) FCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
4 April 2025
Chartered Accountants
Statutory Auditor
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
TLM TRADING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
1,446,803
1,599,024
Cost of sales
(521,204)
(594,704)
Gross profit
925,599
1,004,320
Distribution costs
(727,554)
(725,073)
Administrative expenses
(517,958)
(483,492)
Other operating income
291,673
209,260
Operating (loss)/profit
5
(28,240)
5,015
Interest receivable and similar income
4
15,526
14,165
(Loss)/profit before taxation
(12,714)
19,180
Tax on (loss)/profit
-
0
-
0
(Loss)/profit for the financial year
(12,714)
19,180

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TLM TRADING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
£
£
(Loss)/profit for the year
(12,714)
19,180
Other comprehensive income
-
-
Total comprehensive income for the year
(12,714)
19,180
TLM TRADING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
-
0
25,000
Tangible assets
10
846
-
0
846
25,000
Current assets
Stocks
11
138,392
148,481
Debtors
12
68,169
1,281
Cash at bank and in hand
934,623
959,585
1,141,184
1,109,347
Creditors: amounts falling due within one year
13
(444,851)
(422,507)
Net current assets
696,333
686,840
Net assets
697,179
711,840
Capital and reserves
Called up share capital
15
200,000
200,000
Profit and loss reserves
497,179
511,840
Total equity
697,179
711,840
The financial statements were approved by the board of directors and authorised for issue on 3 April 2025 and are signed on its behalf by:
Stuart Green - Chair
Amanda Norman - Chief Executive Officer
Director
Director
Company Registration No. 03045864
TLM TRADING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
200,000
492,660
692,660
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
19,180
19,180
Balance at 31 December 2023
200,000
511,840
711,840
Year ended 31 December 2024:
Loss and total comprehensive income for the year
-
(12,714)
(12,714)
Distributions to parent charity under gift aid
8
-
(1,947)
(1,947)
Balance at 31 December 2024
200,000
497,179
697,179
TLM TRADING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
18
(37,671)
147,266
Investing activities
Purchase of tangible fixed assets
(870)
-
0
Interest received
15,526
14,165
Net cash generated from investing activities
14,656
14,165
Financing activities
Distributions paid
(1,947)
-
0
Net cash used in financing activities
(1,947)
-
Net (decrease)/increase in cash and cash equivalents
(24,962)
161,431
Cash and cash equivalents at beginning of year
959,585
798,154
Cash and cash equivalents at end of year
934,623
959,585
TLM TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information

TLM Trading Limited is a private company limited by shares incorporated in England and Wales. The registered office is 80 Windmill Road, Brentford, Middlesex, United Kingdom, TW8 0QH.

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.

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
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the amounts receivable for goods sold during the year, exclusive of Value Added Tax. Sales of goods are recognised upon the dispatch of goods to the customers after any returns.

 

Donations and Gifts for Life donations

These are received on behalf of TLM Great Britain and TLM Northern Ireland and passed on and accounted for in the respective charity.

 

Income from advertising space in trading catalogues

Trading catalogues provide space for promotion of the Mission's work and enable sales of Gifts for Life (GFL) and donations. The advertising income represents the fee charged to supporting countries in the UK.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Website
3 years straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

TLM TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Office and Computer Equipment
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks consist of merchandise for resale by TLM Trading Limited and are valued at the lower of cost and net realisable value. Cost is determined principally on the first in first out basis. Net realisable value is the expected price at which stock can be realised.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

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

TLM TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.9
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

TLM TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

TLM Trading Limited is a wholly owned subsidiary of The Leprosy Mission International. TLM Trading Limited has brought forward tax losses which have been offset against the profits of the company. It is the intention of the directors to donate an amount of profit to the parent charity under the Gift Aid scheme, subject to cashflow availability.

1.12
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.

TLM TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.13
Retirement benefits

The company operates a non-contributory defined contribution pension scheme with AVIVA (former Friends Life). Previously it participated in a multi-employer defined benefit scheme, providing benefits based upon career averaged revalued earnings which was closed on 31 March 2013 for all employees. In accordance with FRS102, deficit funding for the pension scheme in which the company participates is accrued at current value in creditors falling due after more than one year.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2024
2023
£
£
Other revenue
Grant for promoting artisan development
35,000
35,000
Income from the advertising space provided in catalogues for Gifts for Life and Donations
155,914
135,562
New donors recruitment
11,080
14,000
Special pension refund
-
8,181
Voluntary income from retail and trade customers
37,330
12,194
Mailings
37,628
-
Miscellaneous income
14,721
-
Grant from TLM (Secondment)
-
4,323
291,673
209,260
4
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
15,526
14,165
TLM TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4
Interest receivable and similar income
(Continued)
- 20 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
15,526
14,165
5
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,500
10,450
Depreciation of owned tangible fixed assets
24
847
Amortisation of intangible assets
25,000
25,000
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration and marketing
8
7

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
297,355
280,269
Social security costs
32,271
27,812
Pension costs
35,680
32,377
365,306
340,458
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
68,618
65,498
Company pension contributions to defined contribution schemes
6,812
6,550
75,430
72,048
TLM TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
8
Dividends and distributions
2024
2023
£
£
Distributions to parent charity under gift aid
Amounts paid
1,947
-
0
9
Intangible fixed assets
Website
£
Cost
At 1 January 2024 and 31 December 2024
75,000
Amortisation and impairment
At 1 January 2024
50,000
Amortisation charged for the year
25,000
At 31 December 2024
75,000
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
25,000
10
Tangible fixed assets
Office and Computer Equipment
£
Cost
At 1 January 2024
63,717
Additions
870
Disposals
(30,227)
At 31 December 2024
34,360
Depreciation and impairment
At 1 January 2024
63,717
Depreciation charged in the year
24
Eliminated in respect of disposals
(30,227)
At 31 December 2024
33,514
Carrying amount
At 31 December 2024
846
At 31 December 2023
-
0
TLM TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
11
Stocks
2024
2023
£
£
Goods for resale
138,392
148,481
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
41,186
1,155
Prepayments and accrued income
26,983
126
68,169
1,281
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
198,380
228,552
Amounts owed to group undertakings
101,979
-
0
Taxation and social security
47,802
45,034
Other creditors
79,693
115,261
Accruals and deferred income
16,997
33,660
444,851
422,507
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
29,880
26,577

A group personal pension scheme (GPP) has been set up with AVIVA (formerly Friends Life). TLM Trading Limited makes an employer's contribution of 10% of the monthly pensionable salary to AVIVA.

 

The assets of the scheme are held separately from those of the company in an independently administered fund.

TLM TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Retirement benefit schemes
(Continued)
- 23 -

Defined benefit schemes

 

The company used to operate a non-contributory multi-employer pension scheme providing benefits based upon career-averaged re-valued earnings. The career averaged re-valued earnings scheme was closed to new members effective from 12 November 2007 and with effect from 31 March 2013 the scheme was closed to new accruals. The company's pension contributions are determined by a qualified actuary on the basis of triennial valuations.

 

The individual accounts of each of the participating employers need to reflect the obligation the have to the scheme. The scheme cannot identify each employer's share of the total scheme assets. Therefore, it is not possible to use defined benefit accounting for an individual company. Accordingly, the scheme is accounted for as if it is a defined contribution scheme.

 

The last actuarial valuation was made at 31 December 2021 using the projected unit valuation method and the market value of the assets represented 100% of the market value of the liabilities. After taking into account the results of the triennial valuation carried out as at 31 December 2021, the company has agreed to make an annual contribution of £5,800 to cover the administrative expenses of the scheme. This amount is payable with effect from 1 January 2023 payable in equal monthly instalments for a period of three years, into the Special Pension Account held by The Leprosy Mission International.

 

FRS102 requires an entity that has entered into an agreement to reduce the historic deficit on a multi-employer pension scheme, to recognise the liability in accordance with FRS102 section 28.13 and 28.13A. The last valuation of the scheme was carried out with an effective date of 31 December 2021. This valuation revealed the Scheme was in surplus on the agreed Statutory Funding Objective basis agreed between the employers and the pension scheme trustees. As a result no recovery plan was required. Therefore the FRS102 liability as at 31 December 2024 is £nil (2023 - £nil).

 

The next actuarial valuation is due at 31 December 2024 and the results are expected by November 2025.

15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £5 each
40,000
40,000
200,000
200,000
16
Related party transactions
Transactions with related parties

During the year the company received a loan of £100,000 (2023 - £nil) from its parent, The Leprosy Mission International (TLMI). At 31 December 2024 an amount of £101,979 (2023 - £30) was due to TLMI. TLMI also made a grant of £35,000 (2023 - £35,000) to promote development of artisan products by people affected by leprosy and disability groups. This is in support of TLMI's charitable objectives.

 

During the year the company purchased services from Stuart Green Research Limited, a company of which Stuart Green is a director, totalling £1,500 (2023 - £nil).

TLM TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
17
Ultimate controlling party

The ultimate parent company is The Leprosy Mission International (TLMI), a company limited by guarantee and a registered charity. The company which is registered in England and Wales is number 3591514 and is registered charity number 1076356.

 

The Leprosy Mission International is both the smallest and largest group for which financial statements are prepared. The group financial statements are available to the public and may be obtained from Companies House.

18
Cash (absorbed by)/generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(12,714)
19,180
Adjustments for:
Investment income
(15,526)
(14,165)
Amortisation and impairment of intangible assets
25,000
25,000
Depreciation and impairment of tangible fixed assets
24
847
Movements in working capital:
Decrease in stocks
10,089
67,652
(Increase)/decrease in debtors
(66,888)
36,024
Increase in creditors
22,344
12,728
Cash (absorbed by)/generated from operations
(37,671)
147,266
19
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
959,585
(24,962)
934,623
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