ETICO THE ETHICAL TRADING COMPANY LIMITED

Company Registration Number:
05051325 (England and Wales)

Unaudited statutory accounts for the year ended 24 March 2024

Period of accounts

Start date: 1 April 2023

End date: 24 March 2024

ETICO THE ETHICAL TRADING COMPANY LIMITED

Contents of the Financial Statements

for the Period Ended 24 March 2024

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

ETICO THE ETHICAL TRADING COMPANY LIMITED

Directors' report period ended 24 March 2024

The directors present their report with the financial statements of the company for the period ended 24 March 2024

Principal activities of the company

The principal activity of Etico, The Ethical Trading Company Limited (ETICO) is that of the supply of products produced by smallholder farmers to clients in Europe, North America and Asia who are active in fair trade and organic markets. The Company is a private company limited by shares and is incorporated in England and Wales. The Registered Office address is 25 Hamilton Gardens, London, NW8 9PU.

Company policy on disabled employees

The Company recruits staff on a merit basis and operates a disabled enablement policy where appropriate in full compliance with the Equality Act 2010.

Additional information

The directors present their report and financial statements for the year ended 31st March 2024. In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415 A of the Companies Act 2006. In collaboration with smallholder suppliers and international clients ETICO has overcome the difficulties created by the recent uncertain global trade conditions. This has enabled streamlining and transformation of supply chains with a focus on making them more robust, resilient and profitable for all stakeholders while seeking out new opportunities to diversify. This adaptation in our approach has led to a reduction in turnover this year whilst having limited impact on our profitability. We expect further consolidation in the forth coming year.



Directors

The directors shown below have held office during the whole of the period from
1 April 2023 to 24 March 2024

Nicholas Hoskyns
Albert Tucker
Tim Haigh


The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
1 February 2025

And signed on behalf of the board by:
Name: Nicholas Hoskyns
Status: Director

ETICO THE ETHICAL TRADING COMPANY LIMITED

Profit And Loss Account

for the Period Ended 24 March 2024

2024 2023


£

£
Turnover: 4,598,837 5,347,467
Cost of sales: ( 4,480,897 ) ( 5,233,815 )
Gross profit(or loss): 117,940 113,652
Administrative expenses: ( 249,093 ) ( 267,387 )
Operating profit(or loss): (131,153) (153,735)
Interest receivable and similar income: 191,236 264,697
Interest payable and similar charges: ( 38,146 ) ( 34,560 )
Profit(or loss) before tax: 21,937 76,402
Tax: ( 4,168 ) ( 17,848 )
Profit(or loss) for the financial year: 17,769 58,554

ETICO THE ETHICAL TRADING COMPANY LIMITED

Balance sheet

As at 24 March 2024

Notes 2024 2023


£

£
Called up share capital not paid: 236 236
Fixed assets
Tangible assets: 3 71,025 83,755
Investments: 4 725,730 725,730
Total fixed assets: 796,755 809,485
Current assets
Stocks: 5 466,399 596,894
Debtors: 6 3,091,773 3,573,239
Cash at bank and in hand: 69,715 157,477
Total current assets: 3,627,887 4,327,610
Creditors: amounts falling due within one year: 7 ( 2,334,384 ) ( 3,129,970 )
Net current assets (liabilities): 1,293,503 1,197,640
Total assets less current liabilities: 2,090,494 2,007,361
Creditors: amounts falling due after more than one year: 8 ( 1,542,011 ) ( 1,464,831 )
Accruals and deferred income: ( 11,816 )
Total net assets (liabilities): 548,483 530,714
Capital and reserves
Called up share capital: 764 764
Share premium account: 12,996 12,996
Profit and loss account: 534,723 516,954
Total Shareholders' funds: 548,483 530,714

The notes form part of these financial statements

ETICO THE ETHICAL TRADING COMPANY LIMITED

Balance sheet statements

For the year ending 24 March 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

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

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

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 1 February 2025
and signed on behalf of the board by:

Name: Nicholas Hoskyns
Status: Director

The notes form part of these financial statements

ETICO THE ETHICAL TRADING COMPANY LIMITED

Notes to the Financial Statements

for the Period Ended 24 March 2024

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    The turnover is calculated as net receivable funds invoiced before VAT and other sales taxes including foreign national taxes.

    Tangible fixed assets depreciation policy

    Depreciation is applied according to the following methods Freehold Buildings:- Straight line over 50 years based on cost of acquisition in GBP. Plant and Equipment:- Straight line over 10 years based on cost of acquisition in GBP.

    Valuation information and policy

    Transactions denominated in Foreign Currencies are translated at the rate of exchange set on the transaction date. Assets and liabilities in foreign currencies are translated into sterling at rates of exchange ruling at the end of the financial year to represent Fair Value, except that long term loans, both received and advanced, are translated at the rate ruling on the date of the transaction and held in the balance sheet at the original conversion rate; any change in value due to currency movements being recorded when repayment is made.

    Other accounting policies

    These financial statements have been prepared and disclosed on a "Going Concern Basis" under the "Historical Cost Convention" unless otherwise specified within these accounting policies with additional disclosure where required to represent a true and fair view of the company's affairs. Monetary amounts are expressed in GBP Sterling rounded to the nearest whole £. Interest Receivable is calculated at an annual rate of 7.5% per annum whereas Interest Payable is calculated at an annual rate of 5.0%, unless otherwise indicated. Revenues in currencies other than GBP are translated to GBP at the spot rate of exchange set on the transaction date. The value of assets and liabilities are translated at the exchange rate set at the year end date. Deferred taxation is accounted for under the liability method where taxation effects arising from timing differences are expected to reverse in the future. Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Profit & Loss Account. Included within sales are related party transactions for sales made to Liberation Foods CIC, a company with a common director. The Company's parent company is the Social Business Network & the ultimate controlling party is N Hoskyns.

ETICO THE ETHICAL TRADING COMPANY LIMITED

Notes to the Financial Statements

for the Period Ended 24 March 2024

  • 2. Employees

    2024 2023
    Average number of employees during the period 5 5

    Number of employees is based on FTE (Full time equivalents) for the 12 months under review

ETICO THE ETHICAL TRADING COMPANY LIMITED

Notes to the Financial Statements

for the Period Ended 24 March 2024

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 April 2023 35,755 48,000 83,755
Additions
Disposals
Revaluations
Transfers
At 24 March 2024 35,755 48,000 83,755
Depreciation
At 1 April 2023 0 0 0
Charge for year 730 12,000 12,730
On disposals
Other adjustments
At 24 March 2024 730 12,000 12,730
Net book value
At 24 March 2024 35,025 36,000 71,025
At 31 March 2023 35,755 48,000 83,755

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method viz. Freehold property - Over 50 years Plant and machinery - 5 years The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised as profit or loss.

ETICO THE ETHICAL TRADING COMPANY LIMITED

Notes to the Financial Statements

for the Period Ended 24 March 2024

4. Fixed assets investments note

Listed investments are valued at cost. Other fixed asset investments represent loans provided to certain co-operatives overseas in order for these to invest in their coffee growing processes and are valued at cost.

ETICO THE ETHICAL TRADING COMPANY LIMITED

Notes to the Financial Statements

for the Period Ended 24 March 2024

5. Stocks

2024 2023
£ £
Stocks 466,399 596,894
Total 466,399 596,894

ETICO THE ETHICAL TRADING COMPANY LIMITED

Notes to the Financial Statements

for the Period Ended 24 March 2024

6. Debtors

2024 2023
£ £
Trade debtors 827,536 1,074,281
Prepayments and accrued income 2,080,399 2,293,957
Other debtors 183,838 205,001
Total 3,091,773 3,573,239

ETICO THE ETHICAL TRADING COMPANY LIMITED

Notes to the Financial Statements

for the Period Ended 24 March 2024

7. Creditors: amounts falling due within one year note

2024 2023
£ £
Bank loans and overdrafts 1,541,346 2,484,906
Trade creditors 438,412 359,224
Taxation and social security 40,309
Accruals and deferred income 22,000 176,801
Other creditors 332,626 68,730
Total 2,334,384 3,129,970

Corporation Tax:- Taxation for 2023-24 Taxable Operating Profit £21,937 Corporation tax payable to HMRC £3,730 Deferred Taxation £438 & profit carried to reserves £17,769. Taxation for 2022-23 Taxable Operating Profit £76,402 Corporation tax payable to HMRC £17,848 Deferred taxation £11,816 & profit carried to reserves £58,554. Provisions for liabilities are made where an event has taken place that creates a legal or constructive obligation for the Company that more probably than not requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the same provision carried in the Balance Sheet. Finance costs are charged to the Profit & Loss Account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. All borrowing costs are recognised in the Profit & Loss Account in the year in which they are incurred.

ETICO THE ETHICAL TRADING COMPANY LIMITED

Notes to the Financial Statements

for the Period Ended 24 March 2024

8. Creditors: amounts falling due after more than one year note

2024 2023
£ £
Other creditors 1,542,011 1,464,831
Total 1,542,011 1,464,831