The directors present their annual report and financial statements for the year ended 31 January 2026.

2025/26 was another significant year for True Origin (the trading name for Just Trading Scotland), as we implemented our recovery plan (following the product recall in late 2024/25) and worked with new producer partners to launch new product ranges. The economic and political context that we are operating in remains challenging.

Sales and the product range

Total sales for the year were £453k (2024/25: £487k), representing a decline of approximately 7% against the prior year and below the annual budget of £540k.

Sales performance continued to be affected by the product recall that took place in late 2024/25. This limited the availability of True Origin branded product lines and led to the approval of a recovery plan that included increased emphasis on the “Friends” range, collaborating with other ethical brands to broaden the product offer and maintain market presence. This range which continues to provide vital market access for our fair trade partners while offering our customers greater choice, performed strongly, significantly exceeding budget and providing an important contribution to overall revenue. As a result, the overall sales mix shifted towards these partner products during the year, with implications for margin and brand positioning.

Following considerable work across the team, in January 2026 we launched 18 new True Origin branded products from two new producer partners, one in Eswatini and one in Mozambique. The launch event, an online tasting experience, was attended by a record number of customers and supporters and generated significant sales in the last week of the financial year. We look forward to building on this initial success through 2026/27 and beyond.

Marketing Developments

When we rebranded to True Origin, one of the objectives was to appeal to the “ethical foodie” market and to widen our customer base accordingly, whilst continuing to serve our loyal fair trade supporters. In 2025, we engaged a digital marketing agency to support us in this ambition. Alongside this, we significantly developed our supporter engagement approach through a series of “True Origin Live” online events. These events, with a range of speakers from our producer partners and others in the fair trade and wider ethical sector, have been well supported with a growing sense of community amongst those attending.

Partnership and mission alignment

As detailed in our “Theory of Change”, we remain deeply committed to our mission as a fair trade business, putting producers at the heart of all we do. We continued our strong collaboration with our parent charity, The Balmore Trust (now operating as True Origin Partnerships), thereby strengthening outcomes for producers.

Governance and Oversight

Governance continues to be robust, with one new Board member recruited during the year to further broaden the range of skills and experience. We implemented the previously agreed transition plan for the change of Chair in March 2025.

The Board continues to meet quarterly, reviewing health and safety matters and performance against our business plan through KPI reports and assessing key risks and financial health. The directors monitor these risks closely and take appropriate action where possible.

Financial Performance

Gross profit for the year was £138k, with an average gross margin of approximately 30%.

The ongoing loan support from Social Investment Scotland’s Recovery & Resilience Fund remains vital. Through the recovery period, we benefitted from considerable financial support from our parent charity, The Balmore Trust (True Origin Partnerships), as well as significant donor income and external funding. In the summer we launched a pilot “Impact Partners” scheme, engaging supporters in our growth. Together, these various sources of financial support have been crucial to our recovery and in particular to our cash flow management. During the year, the write-off of a historic loan by our parent charity boosted our “Other operating income” and significantly strengthened our balance sheet position.

The overall position for the year after the write-off of the loan from the Balmore Trust, was a net profit of £59k.

Future Outlook

The directors recognise that trading performance in 2025/26 has been below expectations and that corrective action is required. Priorities for the coming year include:

• Rebuilding sales of True Origin product lines and improving gross margins through product mix and pricing

• Continuing to strengthen direct-to-consumer sales while investing in business development resource to secure higher volume sales

• Maintaining tight control over operating costs and securing continued funding and financial support

• Investing in systems development and marketing to support business growth

While the outlook remains challenging, the directors believe that these actions will support a gradual improvement in trading performance. The directors are satisfied that adequate resources are in place to enable the company to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

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

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

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Just Trading Scotland Limited for the year ended 31 January 2026 which comprise the profit and loss account, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.

As a practising member firm of the ICAS we are subject to its ethical and other professional requirements which are detailed at https://icas.com/icas-framework-preparation-of-accounts.

Our work has been undertaken solely to prepare for your approval the financial statements of Just Trading Scotland Limited and state those matters that we have agreed to state to the Board of Directors of Just Trading Scotland Limited, as a body, in this report in accordance with the requirements of the ICAS as detailed at https://icas.com/icas-framework-preparation-of-accounts. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Just Trading Scotland Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Just Trading Scotland 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 profit of Just Trading Scotland Limited. You consider that Just Trading Scotland 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 Just Trading Scotland 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.

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

For the financial year ended 31 January 2026 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 directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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.

Just Trading Scotland Limited is a private company limited by shares incorporated in Scotland. The registered office is Unit 4, Greenlaw Industrial Estate, Wallneuk Road, Paisley, UK, PA3 4BT.

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 company will continue to be supported by the Balmore Trust and the JTS Directors having considered this and made due enquiries, continue to adopt the going concern basis in preparing the financial statements which assumes that the company will continue in operation for the foreseeable future. true

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

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

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:

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

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.

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, 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.

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.

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.

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.

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.

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

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.

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