2021-02-28-accounts

Company registration number: 08387544 Charity registration number: 1156329

Ditch The Label Ltd

(A company limited by share capital) Annual Report and Financial Statements for the Year Ended 28 February 2021

SRC-Time Ltd 2nd Floor Stanford Gate South Road Brighton East Sussex BN1 6SB

Ditch The Label Ltd

Contents

Contents
Reference and Administrative Details	1
Trustees' Report	2 to 5
Statement of Trustees' Responsibilities	6
Statement of Financial Activities	7 to 8
Balance Sheet	9
Statement of Cash Flows	10
Notes to the Financial Statements	11 to 25

Ditch The Label Ltd

Reference and Administrative Details

Chief Executive Officer

Dr Liam Hackett

Trustees

Simon Richard Henry Comins, Rebecca Barrie Susan Carole Baines David Tobias Levine Jarah Koomson Huw Aidan John Morris Adam Hughes Secretary

Susan Marie Jones

Charity Registration Number

1156329

Company Registration Number

08387544

The charity is incorporated in England and Wales.

Registered Office

Phoenix House, 3rd Floor 32 West Street Brighton BN1 2RT

Independent Examiner

SRC-Time Ltd 2nd Floor Stanford Gate South Road Brighton East Sussex BN1 6SB

Page 1

Ditch The Label Ltd

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 28 February 2021.

Objectives and activities

To preserve and protect health and advance education surrounding youth issues, equality and bullying for the Public benefit by:

1) Operating as a youth charity with a core aim to advance and promote the wellbeing of our beneficiaries; young people aged 12-25. We will work across five key areas: bullying prevention, mental health & wellbeing, digital literacy, healthy relationships and identity (primarily orientated around protected characteristics) by raising awareness of the issues faced by young people to improve outcomes across their lives.

2) Contributing towards the fields of research and innovation within our respective core focal areas (see 1) by carrying out primary and secondary research, in addition to the analysis of big data (i.e. social listening) in collaboration with selected partners. This learning will inform our direct support provision and public campaigns to benefit our youth beneficiaries and wider society.

3) Supporting our youth beneficiaries by providing direct advice and facilitating peer-to-peer support on digital forums for our youth beneficiaries as a means of aiding their navigation through the common challenges associated within our core focal areas (see 1), thereby improving their outcomes across health, mental health, social wellbeing, education and future prospects.

4) Advance education through the research, development and distribution of educational materials in both traditional and digital educational environments to directly benefit our youth beneficiaries and educational practitioners.

5) Raise awareness and positively influence societal attitudes and behaviours towards our five key focal areas (see 1) by using public awareness campaigns and sharing our research and insights publicly to benefit our youth beneficiaries and wider society in order to improve outcomes in their lives.

6) Advocate the needs and challenges of young people to key stakeholder groups and policy makers by monitoring and evaluating the experiences and opinions of young people and amplifying and reflecting their voice in order to positively benefit their lives across wider society.

7) Provide secondary support, advice, information and resources to additional stakeholder groups; such as parents/guardians, educators and industry in order to further benefit our youth beneficiaries and advance the education and future prospects of young people.

These objectives are delivered across 4 key areas:

Support: we deliver direct online support and support articles from digital youth mentors

Research: we produce new, innovative research surrounding bullying, mental health and other issues such as gender stereotypes

Education: our free educational resources are delivered in classrooms across the country

Campaigns: we produce innovative content to generate societal shifts in attitudes and behaviours

Ditch the Label confirms that the trustees have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011.

Page 2

Ditch The Label Ltd

Trustees' Report

Achievements and performance

Ditch the Label is a global youth charity that helps vulnerable young people aged 12-25 navigate the issues that affect them the most. The young people who come to us for help struggle with issues such as bullying, online abuse, mental health, coming out, anxiety, depression, self-esteem and body image problems.

Through 2019 - 2020, Ditch the Label continued to prioritise the needs of our beneficiaries with 5.1M young people accessing the support website and with over 3,000 one-to-one confidential support mentor sessions delivered. During the first lockdown of March 2020 as the world began to navigate the global pandemic, demand upon our support services surged by over 150% and remained high as young people struggled to cope and were left feeling anxious and fearful for the future. This especially impacted the most vulnerable youth, as in-person contact stopped and they struggled to navigate domestic issues and advocacy of their safety. In response we were proud to partner with Tumblr to produce a Coronavirus hub which reached 6.8M young people with a suite of vital support resources.

Using our dedicated reporting tool for cyberbullying and online abuse, we removed over 9,000 pieces of abusive and harmful content from social media platforms bringing vital relief to so many people including those who had already reported with no success. Through Ditch the Label Education , 30,600 educators used our free and complete school resources covering bullying, digital literacy and gender stereotypes - we were pleased to add new resources covering mental health. We published our flagship research report The Annual Bullying Survey 2020 which studied loneliness and poor mental health, revealing the biggest contributors to depression and anxiety in over 13,000 young people’s lives.

While support services remained our top priority, we continued to be involved in policy work where it had pivoted to online meetings. Most notably we consulted to The Law Commission on a Department of Digital, Culture, Media and Sport (‘DCMS’) funded initiative on the Reforms of the Communications Offences and Intimate Image Abuse, both of which continue to make good progress.

All non-essential activities were scaled down with our direct support services prioritised above all other charitable activities to ensure that young people’s safety and wellbeing was at the forefront. As a digital first organisation, we were able to respond swiftly as we did not have to pivot our support services, having been pioneers of digital support for over a decade. On the expiration of the lease and mindful of budgets, the charity moved offices within Brighton during January 2021.

Finally, there were significant financial challenges to contend with as along with many other charities, revenue was severely impacted. Traditional funders shifted priorities to respond to the pandemic and CSR budgets were halted, diverted or delayed. Ditch the Label rose to the challenge and worked incredibly hard with new and existing funders to respond. We are proud to report that the delivery of support services continued to be a lifeline for young people across the globe.

Page 3

Ditch The Label Ltd

Trustees' Report

Financial review

The principal funding sources for the Charity are currently by way of donations, grants, corporate sponsorship, merchandise sales and events.

The Directors and Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The Charity plans to continue activities as outlined above, engaging with its core market in the forthcoming year subject to satisfactory funding arrangements.

Policy on reserves

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use wherever possible, should be maintained at a level equivalent to three month’s expenditure.

The Directors and Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities, while consideration is given to ways in which additional funds may be raised. As part of ongoing risk management, the Charity will review the reserves policy each year or as the result of a significant change or event.

Structure, governance and management

The charity is a company limited by guarantee without share capital.

The following director has held office since 1 March 2018:

Mr L D Hackett

The Trustees, who are also the non executive directors for the purpose of company law are:

Mrs J K Koomson Dr C Spencer (resigned 31 May 2020) Ms S C Baines Mr H A J Morris Ms R Barrie Mr S R H Comins Mr D T Levine (Appointed 17 April 2019) Mr A Hughes (Appointed 7 October 2019)

New Trustees may be appointed at any time with a maximum of ten on the Board.

New Trustees may be proposed by the CEO or any Trustee and shall be appointed by ordinary resolution at a meeting of the Board of Trustees. Special notice is required of a resolution to appoint a Trustee.

Page 4

Ditch The Label Ltd Trustees, Report Trustees are appointed for a tenn of three years. At the end of that term Trustees m&y be reappointed subject to a tnajority vote of the board of Trusiees. There is no cap to the number of times an individual can be ap￿)inted to th¢ board of Trustees. Tru5tee5 are initially invited on to the board for a probationary period of3 months ai which poin¢ the rx)sition will be reviewed by both parties before ¢xtendin8 the position to a full bgard member if apprgpriate. Th¢ annual report was approved by the trustees of the charity on ..261111.4 and signed on its beha]f by.. Adam Hughes TnJst¢e Page 5

Ditch The Label Ltd Statement of Trustees, Responsibilitie5 The trustees (who axe also the directors of Ditch The L8bel Ltd ftir the purposes of company law) are responsible for preparing th¢ trustees, report and the financial ststements in accordance with the United Kingdom Accounting Standards (Unitd Kingdom Generally Acccpted Accounting Practice) and applicable law and r¢gulations. Company law requir¢s The tnisiees to prepare financial statements for each financial year. Under company lawthe trustees must not approve the flnanci￿ statements unless they are satisfied that they give a trlle and fair view of the state of affairs of the charitsble company and of its ittcoming resollrces and application of resour¢e5. including its income and expenditure, ftir that period. In preparing these finartcial statements, the trustees are required to.. select suithble a¢countill8 policies and apply them consi5tently' observe the methods and principle5 in the Charities SORP. makejudgements and estimates that are reasonable and prydent., state whether applioble UK Accounting Siandards have been followed. subjKr th any material departures disclosed and explained in the financial statements. and prepaTe the finan¢ial statements on the going concern basis unless it i5 inappropriate to presume that the charitsble ¢omp£ny will continue in business. Th¢ trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclosc Wlth reasonable accuracy ai any time the fJnan¢ial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the &ss¢ts of the charilable company and hence for takin8 reasonable Steps for the prevention and detection of fraud and other irregularlties. Approved by the tn]s¢ees of the charity on. Z" ill Izi. and signed on its behalf by.. Adam Hughes Tru5t¢e Pa8¢ 6

Ditch The Label Ltd

Statement of Financial Activities for the Year Ended 28 February 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Unrestricted Restricted Total 2021	Unrestricted Restricted Total 2021
Note £ £ £
Income and Endowments from:
Donations and grants 3	139,137 140,975 280,112
Charitable activities 4	12,055 - 12,055
Other trading activities 5	5,953 - 5,953
Investment income 6	182 - 182
Other income(Google & Stock movement)	4,789 - 4,789
Total income
	162,116 140,975 303,091
Expenditure on:
Raising funds 7	(1,675) - (1,675)
Charitable activities 8	(298,127) (96,771) (394,898)
Total expenditure
	(299,802) (96,771) (396,573)
Net(expenditure)/income
	(137,686) 44,204 (93,482)
Net movement in funds
	(137,686) 44,204 (93,482)
Reconciliation of funds
Total funds brought forward
	43,873 246,145 290,018
Total funds carried forward 19
	(93,813) 290,349 196,536
	Unrestricted Total
	funds Restricted funds 2020
Note	£ £ £
Income and Endowments from:
Donations and grants 3	140,144 405,434 545,578
Charitable activities 4	7,571 - 7,571
Other trading activities 5	2,125 - 2,125
Investment income 6	766 - 766
Total income
	150,606 405,434 556,040
Expenditure on:
Raising funds 7	(1,217) - (1,217)
Charitable activities 8	(351,696) (195,865) (547,561)
Total expenditure
	(352,913) (195,865) (548,778)
Net(expenditure)/income
	(202,307) 209,569 7,262
Net movement in funds
	(202,307) 209,569 7,262
Reconciliation of funds
Total funds brought forward
	246,180 36,575 282,755

The notes on pages 11 to 25 form an integral part of these financial statements.

Page 7

Ditch The Label Ltd

Statement of Financial Activities for the Year Ended 28 February 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

	Unrestricted Total
	funds Restricted funds 2020
Note	£ £ £
Total funds carried forward 19
	43,873 246,144 290,017

The funds breakdown for 2020 is shown in note 19.

The notes on pages 11 to 25 form an integral part of these financial statements. Page 8

Dit¢h The Label Ltd (Registration number: 08387544) Balance Sheet as at 28 February 2021 2021 2020 Nott Fixed 955ets Tangible &s5ets 14 17,634 20,116 Current assets Stocks Debtor5 Cash at bank and in hand 15 16 8.833 33.680 141021 183,534 4.048 93.489 178 383 275,920 Creditor5: Arnounts falling due withhn one year 17 Net current assets 178902 269901 Net assets 196 536 Funds of the charity: Restricted intome funds R¢srri¢ied fi]nds 19 290,349 246,144 UMrestricttd Income fllnds Unrestricied funds Total funds 19 196 536 290017 For the financial year ending 28 Febnjary 2021 the charity was entitled io exemption from audit under section 477 of th¢ Companies Act 2006 relating to Small cotnparties. Directors. responsibilities.. The tn¢mb¢r5 hav¢ not required the charaty to obtain an audit of its accounts for the year in question in accordatL¢e with s¢¢tion 476,. and The directors acknowledge their resp)nsibilities for cotnplying with th¢ requirernents of the Act with re5pe¢t to accounting records and the preparatitsn of accounts. The financial siaiements on page5 7 to 25 were app￿V¢d by the tn]5tees. artd authorised for i55Ut on .................-.. and signed on their behalf by: Liam l.lackett Chief Executive Officer The notes on page5 1 I to 25 fonn an integral part of these financial 5tatemEnts. Page 9

Ditch The Label Ltd

Statement of Cash Flows for the Year Ended 28 February 2021

	2021 2020
Note	£ £
Cash flows from operating activities
Net cash (expenditure)/income
	(93,482) 7,262
Adjustments to cash flows from non-cash items
Depreciation 7	5,227 6,589
Investment income 6	(182) (766)
	(78,549) 13,085
Working capital adjustments
(Increase)/decrease in stocks 15	(4,785) 167
Decrease/(increase) in debtors 16	59,809 (59,220)
Decrease in creditors 17	(1,387) (24,342)
Decrease in deferred income	- (20,000)
Net cash flows from operatingactivities
	(24,912) (90,310)
Cash flows from investing activities
Interest receivable and similar income 6	182 766
Purchase of tangible fixed assets 14	(2,745) (3,545)
Net cash flows from investingactivities
	(2,563) (2,779)
Net decrease in cash and cash equivalents
	(27,475) (93,089)
Cash and cash equivalents at 1 March
	178,383 271,472
Cash and cash equivalents at 28 February
	141,016 178,383

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 11 to 25 form an integral part of these financial statements.

Page 10

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

1 Charity status

The charity is limited by share capital, incorporated in England and Wales.

The address of its registered office is: Phoenix House, 3rd Floor 32 West Street Brighton BN1 2RT

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Ditch The Label Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Page 11

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:

• The donor specifies that the grant or donation must only be used in future accounting periods; or

• The donor has imposed conditions which must be met before the charity has unconditional entitlement.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 12

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

Tangible fixed assets

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

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Fixtures, fittings and equipment 25% reducing balance Computers 25% reducing balance

Stock

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. Items held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 13

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

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 charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 14

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

Debt instruments

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

Page 15

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

3 Income from donations and legacies

	Unrestricted funds	Unrestricted funds	Restricted	Total
	Designated	General	funds	funds
	£	£	£	£
Donations and legacies;
Legacies	-	22,490	-	22,490
Grants, including capital grants;
Grants from companies	-	50,500	140,975	191,475
Regular giving and capital
donations	-	66,147	-	66,147
Total for 2021	-	139,137	140,975	280,112
Total for 2020	22,354	117,790	405,434	545,578

4 Income from charitable activities

4 Income from charitable activities	4 Income from charitable activities
Unrestricted
General Total 2021 Total 2020
£ £ £
Sales within charitable activities 12,055 12,055 7,571
	Unrestricted
	funds Total
	General funds
	£ £
	12,055 12,055
Total for 2021
	12,055 12,055
Total for 2020
	7,571 7,571

Page 16

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

5 Income from other trading activities

5 Income from other trading activities
	Unrestricted
	funds	Total
	General	funds
	£	£
Other income from other tradingactivities	5,953		5,953
Total for 2021	5,953		5,953
Total for 2020	2,125		2,125

6 Investment income

	Unrestricted
	funds	Total
	General	funds
	£	£
Interest receivable and similar income;
Other interest receivable	182		182
Total for 2021	182		182
Total for 2020	766		766

7 Expenditure on raising funds

Costs of generating donations and legacies

a)

	Unrestricted
	funds Total
	General funds
Note	£ £
Marketingandpublicity	1,675 1,675
Total for 2021
	1,675 1,675
Total for 2020
	1,217 1,217

Page 17

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

8 Expenditure on charitable activities

8 Expenditure on charitable activities
	Unrestricted
	funds Restricted Total
	General funds funds
Note	£ £ £
General direct costs	3,627 28,395 32,022
Staff costs	131,701 45,459 177,160
Governance costs 9	144,380 15,772 160,152
Total for 2021
	279,708 89,626 369,334
Total for 2020
	351,696 195,865 547,561

In addition to the expenditure analysed above, there are also governance costs of £160,152 (2020 - £177,461) which relate directly to charitable activities. See note 9 for further details.

Page 18

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

10 Net incoming/outgoing resources

Net (outgoing)/incoming resources for the year include:

Net (outgoing)/incoming resources for the year include:
	2021 2020
	£ £
Depreciation of fixed assets	5,227 6,590

Page 19

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

11 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

12 Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
	2021 2020
	£ £
Staff costs during the year were:
Wages and salaries	226,911 344,201
Other Staff Costs	48 460
	226,959 344,661

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

during the year expressed as full time equivalents was as follows:
	2021 2020
	No No
Employees	8 9

During the year, one employee received emoluments falling within the band of £70,000 to £80,000.

13 Taxation

The charity is a registered charity and is therefore exempt from taxation.

Page 20

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

14 Tangible fixed assets	14 Tangible fixed assets
Furniture and equipment Other tangible fixed asset Total
£ £ £
Cost
At 1 March 2020 14,465 27,074 41,539
Additions 1,633 1,112 2,745
At 28 February2021 16,098 28,186 44,284
Depreciation
At 1 March 2020 5,943 15,480 21,423
Charge for theyear 2,100 3,127 5,227
At 28 February2021 8,043 18,607 26,650
Net book value
At 28 February2021 8,055 9,579 17,634
At 29 February2020 8,522 11,594 20,116
15 Stock
	2021 2020
	£ £
Finishedgoods	8,833 4,048
16 Debtors
	2021 2020
	£ £
Trade debtors	- 56,175
Prepayments	2,093 6,432
Other debtors	31,587 30,882
	33,680 93,489

Page 21

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

17 Creditors: amounts falling due within one year

17 Creditors: amounts falling due within one year
	2021	2020
	£	£
Trade creditors	900	1,294
Other taxation and social security	4,886	8,012
VAT grant repayable	(4,082)	(11,215)
Other creditors	1,279	6,279
Accruals	1,650	1,649
	4,632	6,019

18 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £4,879. (2020: £6,471)

19 Funds

19 Funds	19 Funds
Balance at 1 March 2020 Incoming resources Resources expended Balance at 28 February 2021
£ £ £ £
Unrestricted funds
General
Unrestricted - general 43,873 162,116 (299,802) (93,813)
Restricted funds
Lottery Funding 1,825 - (287) 1,538
The Clothworkers Foundation Fund 1,566 - (246) 1,320
Unilever Fund	57,040 25,000 (79,072) 2,968
Electronic Arts	80,919 - - 80,919
Paul Hamlyn Foundation	30,000 76,000 - 106,000
Highway One Foundation	10,000 - - 10,000
River Island	20,500 - - 20,500
The Schuh Trust	5,000 - - 5,000
Barclays	15,244 - - 15,244
Oath (UK) Ltd	4,050 - - 4,050
People's Postcode Lottery	20,000 - - 20,000
Tumblr	- 15,910 (15,866) 44
Rathbone Trust	- 2,000 - 2,000
The David + Ruth	- 22,065 - 22,065
Simple	- - (1,000) (1,000)
DTL US Fund	- - (300) (300)

Page 22

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

	Balance at 1 Incoming Resources Balance at 28
	March 2020 resources expended February 2021
	£ £ £ £
Total restricted funds
	246,144 140,975 (96,771) 290,348
Total funds
	290,017 303,091 (396,573) 196,536

The specific purposes for which the funds are to be applied are as follows:

Eleanor Rathbone Charitable Trust – Ditch the Label was awarded a £2,000 grant to provide student booklets across schools in Merseyside. These booklets are used alongside our free Mental Health Education programme.

Garfield Weston - A 12-month grant of £25,000 towards funding our core costs. Such vital funding enables us to focus less on fundraising for those costs and more on reaching young people who need us.

The David + Ruth Lewis Family Charitable Trust – Ditch the label received vital funding that gave us the opportunity to respond swiftly to the COVID crisis which saw a significant increase in both the number and severity and urgency of support requests we received from vulnerable young people. This allowed us to provide additional support over a 6-month period.

Paul Hamlyn Foundation - The Paul Hamlyn Foundation supported Ditch the Label with a grant of £30,000 towards the CEO's salary and a vital emergency grant of £46,000. This emergency funding enabled us to respond swiftly to the COVID crisis in employing additional support mentors to deal with the increase in the numbers of young people accessing our services.

Unilever - Working in partnership through their Simple brand, Ditch the Label collaborated on a campaign involving Little Mix which encouraged people to choose kindness online.

Tumblr Inc - Tumblr sponsored a Coronavirus hub on the Ditch the Label website when the pandemic first hit. This hub provided vital help and resources to people struggling through lockdown among many other challenges.

Page 23

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

20 Analysis of net assets between funds
	Unrestricted Total funds at 28
	funds Restricted February
	General funds 2021
	£ £ £
Tangible fixed assets	14,208 3,426 17,634
Current assets	183,536 - 183,536
Current liabilities	(4,632) - (4,632)
Total net assets
	193,110 3,426 196,536
	Unrestricted Total funds at 29
	funds Restricted February
	General funds 2020
	£ £ £
Tangible fixed assets	16,584 3,532 20,116
Current assets	275,920 - 275,920
Current liabilities	(6,019) - (6,019)
Total net assets
	286,485 3,532 290,017
21 Analysis of net funds
	Financing cash At 28 February
	At 1 March 2020 flows 2021
	£ £ £
Cash at bank and in hand	178,383 (37,367) 141,016
Net debt
	178,383 (37,367) 141,016
	Financing cash At 29 February
	At 1 March 2019 flows 2020
	£ £ £
Cash at bank and in hand	271,472 (93,089) 178,383
Net debt
	271,472 (93,089) 178,383

Page 24

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 28 February 2021

22 Related party transactions

During the year the charity made the following related party transactions: Key management personnel Remuneration of key management personnel

Aggregate compensation:

2021: £75,000 2020: £74,963 At the balance sheet date the amount due from Key management personnel was £1,098 (2020 - £392).

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Ditch The Label Ltd

Statement of Financial Activities by fund for the Year Ended 28 February 2021

Unrestricted Funds

Unrestricted Funds
	Total Total
	Unrestricted Unrestricted
	Funds Funds
	2021 2020
	£ £
Income and Endowments from:
Donations and legacies	139,137 140,144
Charitable activities	12,055 7,571
Other trading activities	5,953 2,125
Investment income	182 766
Other income	4,789 -
Total income
	162,116 150,606
Expenditure on:
Raising funds	(1,675) (1,217)
Charitable activities	(298,127) (351,696)
Total expenditure
	(299,802) (352,913)
Net expenditure
	(137,686) (202,307)
Net movement in funds
	(137,686) (202,307)
Reconciliation of funds
Total funds brought forward
	43,873 246,180
Total funds carried forward
	(93,813) 43,873

This page does not form part of the statutory financial statements.

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Ditch The Label Ltd

Statement of Financial Activities by fund for the Year Ended 28 February 2021

Restricted Funds

Restricted Funds
	Total Total
	Restricted Restricted
	Funds Funds
	2021 2020
	£ £
Income and Endowments from:
Donations and legacies	140,975 405,434
Total income
	140,975 405,434
Expenditure on:
Charitable activities	(96,771) (195,865)
Total expenditure
	(96,771) (195,865)
Net income
	44,204 209,569
Net movement in funds
	44,204 209,569
Reconciliation of funds
Total funds brought forward
	246,145 36,575
Total funds carried forward
	290,349 246,144

This page does not form part of the statutory financial statements.

Page 27

Ditch The Label Ltd

Detailed Statement of Financial Activities for the Year Ended 28 February 2021

	Total Total
	2021 2020
	£ £
Income and Endowments from:
Donations and legacies (analysed below)	280,112 545,578
Charitable activities (analysed below)	12,055 7,571
Other trading activities (analysed below)	5,953 2,125
Investment income (analysed below)	182 766
Other income(analysed below)	4,789 -
Total income
	303,091 556,040
Expenditure on:
Raising funds (analysed below)	(1,675) (1,217)
Charitable activities(analysed below)	(394,898) (547,561)
Total expenditure
	(396,573) (548,778)
Net(expenditure)/income
	(93,482) 7,262
Net movement in funds
	(93,482) 7,262
Reconciliation of funds
Total funds brought forward
	290,017 282,755
Total funds carried forward
	196,536 290,017

This page does not form part of the statutory financial statements. Page 28

Ditch The Label Ltd

Detailed Statement of Financial Activities for the Year Ended 28 February 2021

	Total	Total
	2021	2020
	£	£
Donations and legacies
Donations and gifts	-	22,354
Donations and gifts	66,147	64,875
Grants	22,490	-
Grants	140,975	405,434
Grants	50,500	52,915
	280,112	545,578
Charitable activities
Merchandise sales	12,055	7,571
	12,055	7,571
Other trading activities
Fee income	5,953	2,125
	5,953	2,125
Investment income
Other interest receivable	182	766
	182	766
Other income
Other income	4,789	-
	4,789	-
Raising funds
Fundraising costs	-	(1,217)
Advertising	(1,675)	-
	(1,675)	(1,217)
Charitable activities
Advertising	-	(826)
Education services	-	(1,318)
Education and awareness promotions	(2,250)	(1,428)
Opening finished goods	(4,048)	(4,215)
Direct costs	(3,161)	(4,389)
Closing finished goods	8,833	4,048
Social Media	(10,390)	(70,626)
Public relations	(3,000)	(3,960)
Website costs	(24,895)	-
Website costs	(1,443)	(10,633)
Courier services	-	(128)

This page does not form part of the statutory financial statements.

Page 29

Ditch The Label Ltd

Detailed Statement of Financial Activities for the Year Ended 28 February 2021

	Total	Total
	2021	2020
	£	£
Commissions payable	(1,558)	(874)
Staging fundraising events	-	(7,334)
Trade subscriptions	(403)	-
Consultancy fees	(12,225)	-
Wages and salaries	(40,789)	(85,013)
Wages and salaries	(57,293)	(97,800)
Staff NIC (Employers)	(3,738)	(8,022)
Staff NIC (Employers)	(5,939)	(6,876)
Directors remuneration	(58,500)	(58,471)
Directors NIC (Employers)	(7,131)	(7,247)
Staff pensions (Defined contribution) - pension scheme 1	(932)	-
Staff pensions (Defined contribution) - pension scheme 1	(1,814)	(4,055)
Directors pensions (Defined contribution) - pension scheme 1	(1,024)	(933)
Computer software and maintenance costs	(2,302)	(513)
Printing, postage and stationery	(4,834)	(2,112)
Domain and web hosting	(801)	(2,887)
Cleaning	(28)	(1,195)
Travel and subsistence	(306)	-
Travel and subsistence	(1,552)	(15,660)
Advertising	(925)	-
Advertising	(2,224)	(3,641)
Staff entertaining (allowable for tax)	(48)	(460)
Customer entertaining (disallowable for tax)	-	(973)
Accountancy fees	(300)	-
Accountancy fees	(8,238)	(8,818)
Consultancy fees	(325)	-
Consultancy fees	(120)	-
Legal and professional fees	(401)	(746)
Bank charges	(248)	(357)
Bank interest payable	(76)	-
Other interest payable	(19)	-
Depreciation of fixtures and fittings	(104)	-
Depreciation of fixtures and fittings	(1,698)	(2,349)
Depreciation of office equipment	(20)	(166)
Depreciation of office equipment	(278)	(232)
Depreciation of computer equipment	(971)	(1,012)
Depreciation of computer equipment	(2,156)	(2,831)
Wages and salaries	(11,504)	(23,978)
Wages and salaries	(16,159)	(27,585)
Staff NIC (Employers)	(1,054)	(2,262)

This page does not form part of the statutory financial statements.

Page 30

Ditch The Label Ltd

Detailed Statement of Financial Activities for the Year Ended 28 February 2021

	Total Total
	2021 2020
	£ £
Staff NIC (Employers)	(1,676) (1,939)
Directors remuneration	(16,500) (16,492)
Directors NIC (Employers)	(2,011) (2,044)
Staff pensions (Defined contribution) - pension scheme 1	(263) -
Staff pensions (Defined contribution) - pension scheme 1	(558) (1,144)
Directors pensions (Defined contribution) - pension scheme 1	(289) (340)
Subcontract cost	- (347)
Staff training	(426) (3,367)
Staff welfare	(1,307) (5,775)
Rent and rates	(49,183) (39,918)
Rates	(7,390) -
Insurance	(3,911) (3,123)
Repairs and maintenance	(16,212) (1,693)
Telephone and fax	(2,885) (3,469)
Office expenses	(850) -
Sundryexpenses	(4,721) (33)
	(396,573) (547,561)

This page does not form part of the statutory financial statements.

Page 31