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← Ditch The Label Ltd

2024-02-29-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 29 February 2024

SRC Advisory Ltd 2ND Floor Stanford Gate South Road Brighton East Sussex BN1 6SB

Ditch The Label Ltd

Contents
Reference and Administrative Details 1
Strategic Report 2 to 3
Trustees' Report 4 to 5
Statement of Trustees' Responsibilities 6
Independent Examiner's Report 7 to 8
Statement of Financial Activities 9 to 10
Balance Sheet 11
Statement of Cash Flows 12
Notes to the Financial Statements 13 to 27

Ditch The Label Ltd

Reference and Administrative Details

Trustees

Rebecca Reynolds Newton Michelle McCarthy Alexander Luff Secretary

Susan Marie Jones

Charity Registration Number

1156329

Company Registration Number

08387544

The charity is incorporated in England & Wales .

Registered Office

Freedom Works Barts House Black Lion Street Brighton BN1 1JE

Independent Examiner

SRC Advisory Ltd 2ND Floor Stanford Gate South Road Brighton East Sussex BN1 6SB

Page 1

Ditch The Label Ltd

Strategic Report for the Year Ended 29 February 2024

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 29 February 2024, in compliance with s414C of the Companies Act 2006.

Achievements and performance

2023 was a very busy year for the charity with some exciting developments which enabled us to reach young people in new territories and in innovative ways.

In a partnership with L’Oréal through the Maybelline brand, we significantly invested in our mental health provision and direct support. In addition to funding for our support community and digital mentors, the partnership enabled us to provide ‘traditional’ therapy over video but also in a pilot project; in the metaverse. One young person told us this had been a lifeline as they would not otherwise have been able to access therapy as they are unable to access face-to-face therapy either in-person or over video.

One of our support mentors joined Maybelline in a tour of universities across the UK delivering a vital mental health presentation called ‘Brave Talk' which gives essential skills and tips on what to do and how to support a friend or relative that may be struggling and where to find help from Ditch the Label.

Our commitment to our support services for young people has been helped by the recruitment of 2 new bilingual support mentors. This increases our support provision and removes barriers for young people where English is not their first language.

Through our education materials for teachers (Ditch the Label Education) we refreshed and relaunched our mental health module and further, added a new module on unconscious bias in partnership with ASOS. There is a suite of resources which are completely free to download and ready to deliver by educators, enabling us to reach thousands of young people in the classroom.

In a major move, Ditch the Label, funded by our partner BRP, launched a Spanish speaking brand called Quítate las Etiquetas. In addition to a Spanish language website there is also a Spanish speaking support community with Spanish speaking digital mentors. This provides a vital safe space where Mexican youth can get guidance and support on dealing with bullying and intimidation.

In summary, in 2023, Ditch the Label:

• Welcomed 2,771 young people to our support community

• Support Mentors responded to 5,958 support requests, plus an additional 468 confidential support requests

• Removed 218 individual pieces of extreme, hateful, abusive or ‘revenge porn’ content from social media platforms

• 8,346 educators downloaded Ditch the Label school resources. This means that in 2023 an estimated 125,190 students were reached in the classroom with our education programs. (Based on a conservative estimate of 50% of the educators downloading the curriculum delivering to a classroom of 30 students. In practice they are usually delivered across multiple classes, year groups and whole schools).

We remain focussed and committed to the continued growth of our support services so we can reach as many young people as possible, breaking down barriers for the most vulnerable in order that they get vital support.

Page 2

Ditch Tbe Label Ltd Strategic Report for the Year Ended 29 FebruarTr' 2024 Financial review The principal tunding sources for the Charity are currentl}, by way of donation& granis, corporate sponsorship and partnerships. The Direclor5 and Trustees have assessed the major risks to which lh¢ Charity is exposed. and are satisfied that systems are in place to miligat¢ e.xposure to the major risks. The Chariiy plans to continue a¢tivities as outlined above, engaging with ils core market in the lorthcoming year subjeer to saiislactor> lunding arrangLments. Pollcy on reserves It is the poliLy of the Charity thal unrestri¢ied funds which have not been designated for a specific use w'herever possible. should be main(ained at a levcl cquii'alent io ihree mon(h's expendiiure. The DireLiors and Trustees considl'r that reser¥'es a( this level will ensure that. in the event of a significant drop in tunding. they will he able io continue the Q'.harit) s Lurrent activities. while consideration is given to iia}'s in ,hich additional funds ma!, bl raised. As part ol'ongoing risk management. the Charity will ￿vieW the reserves polic}. ¢a¢h )'ear or as ihe result ol'a significant ¢hangL or L'¥'ent. The sirategic report ￿.￿8 approved by ihe Iruslees ol-the charity on &+ and signed on its behalf by: Michelle MLCarthy Trustee Page 3

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 29 February 2024.

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.

Page 4

Ditch The Label Ltd Trustees, Report Structure? governance and mAnag¢ment The charity IS d ¢ompan}' limited bl guarantee wiihout share capital. The following director has held otTice sinLe l March 2023.. Mr L D Hackett The Trustees. N'ho are also ihe non ¢xe¢utive directors for the purpose ot company lam, are.. Ms R Barrie Mrs R 11 Comins Mr A I lughes (resigned 12 Oclobcr 2023) Mrs V Miller Mr J Die/.-Aguirre Mrs H Smith MrsJAlia Mr Mark WoodrutT Mrs A B¢'njamin lappoinied 28 FLbruar)' 20241 W¥ h4lVL AniLILs c)I' A%sociaiion and u Go&Lmance Document. Joint document registered Ifiled ￿'Ith Companie5 HousL. I I I th MarLh 20211 New Trusiees may be appoinied at arty lime ￿1th a m&ximum of ten on thL' Board. Ne￿, Trust¢¢s may be pr(Ipos¢d b}, Ihe C.F.O or an}, Trustee and shall be appointed by ordinary. resolution at a m¢¢iing ol. the Board ol'"I'ru8lees. SpeLial n()lic¢ is required ol"a resoluiion to appoint a'l'rusiee. Trustees are appointed tor a lerni ol'three )'ear5. At Ihe end ol'thal lerni TN51e¢5 may be reappointed subjeci io a majnrily K'c)ie i)I' the board of Trustees. There is no cap to Ihe number ol'times an individual can be appointed lo the board ol I rust¢es. Truslees are initiall!. invited on io the board lor a pri)haiionary' period 01. 3 monihs at M,hich point ihe posilion ill be revi¢￿'¢d bj bi)Ih parties belore extending Ihe posiiion io a tull board member if appropriaie. The annual report was approved b}. the Iruslees ofthe eharity on A*.. and signed on its behall. by.. MiLhelle M¢Carth>' Trustee Page 5

Ditcb The Label Ltd Statement of Trustees, Responsibilities The trustees (who are also the directors of Ditch The Label Ltd for the purposes of company law} are responsibl¢ tor prL'paring ihe trustees, report and the findllLial slatemenis in ac¢ordanLe with the United Kingdom Accounting Standards (Uniied Kingdom ticn¢rally Accepted Accounting Praciicel and applicable law and regulations. Compan>. la￿. requires the trustees to prepare financial statements for each financial year. Under companv law the trustees musi not approvL¥ (he tinanLial statements unless they are satisfied that they give a trne and fair of the siaie of dl'lairs ot the charitahle Compan￿ and of its in¢oming resourLL'S and application of r¢source& iniluding ils income and expendiiure. lor that p¢riod. In prLparing these financial slatem¢nt& the trustees are r¢4uiredto'. select suitable accounting policies and appl), them Lonsislentl>': observe the methods and prinLiples in the C'harities SORP: make judgemenis and estimates thai are r¢&s(Jnable and prudeni: state wheihL'r applicable UK A¢¢ounling Standards hdve been followed. subject to any material departures disclosed and explained in the Iinancial slalements: and prep<irL' Ihe finun¢ial stdtcmL'nls on thL' going Loncern basi5 unle8s Il is inappropriate to presume Ihai the LhariiahlL iompany ￿.111 Lontinue in bu5in¢s5. The IruslLes are responsiblL' lor kLL'ping adLquat¢ accounting records that are sufficient to 5hoM' and explain the charitable Lompanl s transa¢tions and disllosc ￿'ith rLasi)nablL' ac¢urac)' al anfv limL' Ihc financial Posiiion orth¢ Lharitable companj and enahlL ihem to ensurL' that the Iinancial siatLmenls complj with the Companies Act 20116. '1'hiJ arL (Ilsi) rLqPI)nsible r()r .8aliguardirtg thi a4sels ol- Ihe Lharilahle company and hence tor taking rL'us()nuble steps l()r thL prL'V¢'ntion and d¥li¥li()n (Il. Iraud und othLf i￿￿gUIaritIL8. Approved by the Iruslees of the charity on d signed on ils behall. by.. MiLhLllI McC.arthy Tru51e¢ Page 6

Ditch The Label Ltd

Independent Examiner's Report to the trustees of Ditch The Label Ltd ("the Company")

I report to the charity trustees on my examination of the accounts of the Company for the year ended 29 February 2024.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of Ditch The Label Ltd are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

Since Ditch The Label Ltd's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of CTA, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of Ditch The Label Ltd as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... Mr Stephen Crouch CTA

2ND Floor Stanford Gate South Road Brighton East Sussex BN1 6SB

Page 7

Ditch The Label Ltd

Independent Examiner's Report to the trustees of Ditch The Label Ltd ("the Company")

Date: 18/12/24

Page 8

Ditch The Label Ltd

Statement of Financial Activities for the Year Ended 29 February 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Total
Unrestricted funds Restricted funds 2024
Note £ £ £
Income and Endowments from:
Donations and legacies 3 216,832 257,817 474,649
Charitable activities 4 1,071 - 1,071
Other trading activities 5 132,000 - 132,000
Investment income 6 2,273 - 2,273
Other income 5,024 28 5,052
Total income 357,200 257,845 615,045
Expenditure on:
Raising funds 7 (14,729) - (14,729)
Charitable activities 8 (561,815) (33,473) (595,288)
Trading expenditure (5,674)
Income tax (23,102) - (23,102)
Total expenditure (605,320) (33,473) (638,793)
Net(expenditure)/income (248,120) 224,372 (23,748)
Net movement in funds (248,120) 224,372 (23,748)
Reconciliation of funds
Total funds brought forward (134,512) 652,643 518,131
Total funds carried forward 19 (382,632) 877,015 494,383
Total
Unrestricted funds Restricted funds 2023
Note £ £ £
Income and Endowments from:
Donations and legacies 3 260,232 196,961 457,193
Charitable activities 4 573 - 573
Other trading activities 5 - 52,471 52,471
Investment income 6 481 - 481
Other income 3,839 78,458 82,297
Total income 265,125 327,890 593,015
Expenditure on:
Raising funds 7 (37,245) - (37,245)
Charitable activities 8 (352,491) (158,991) (511,482)
Other expenditure (2,423) - (2,423)
Total expenditure (392,159) (158,991) (551,150)
Net(expenditure)/income (127,034) 168,899 41,865
Net movement in funds (127,034) 168,899 41,865

The notes on pages 13 to 27 form an integral part of these financial statements. Page 9

Ditch The Label Ltd

Statement of Financial Activities for the Year Ended 29 February 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Unrestricted
Total
funds
Restricted funds
2023
Note £
£
£
Reconciliation of funds
Total funds brought forward
476,266
-
476,266
Total funds carried forward
19
349,232
168,899
518,131

The funds breakdown for 2023 is shown in note 19.

The notes on pages 13 to 27 form an integral part of these financial statements. Page 10

Ditch The Label Ltd (Registration number: 08387544) Balance Sheet as at 29 February 2024 2024 2023 Note Fixed assets .1 angible assets 14 44,119 24.191 Current assets SIoLks Debtors Cash at bank and in hand 5,610 17.693 475.685 498.988 16 114,250 365.565 479.815 Creditors: Amounts fAlllng due within one year 29.552 5,048 Net current assets 450,263 493.940 Net fL8sets 494.382 518.131 Funds of the charity.. Restrlcted income funds RL.qiriLILd lunds 19 877,013 652.643 Un￿striCted income funds UnrL5lriilLd lunds 382.631 134.512 Total funds 19 494,382 518.131 For the linancial year ending 29 February 2024 lh¢ Charity was enliiled lo exemption from audit under section 477 ot'the Companies Act 2006 relating to small LompaniL's. Directors, responsibilities: The members have not rL'quired the charily to obtain an audit ol. its accounts for the year in question in acLordanLL' Wlth section 476.. and The dirLLlors aLknoii'ledge their responsibilities for complying M'ith the rLquiremenis of the Act with respect to aLLounting records and the prLparalion ol-kiLcount5. The linancial statLments on pages 9 to 27 were approv¢d by (he trusteLS, and auihorised for issue on 8AlI.¥2(k... and signed on their behalf by,, Dr Liam Daniel Flacketi Chief executifve offiLLr The note5 on pages 13 10 27 fom an integral part of these tinancial statements. Page I

Ditch The Label Ltd

Statement of Cash Flows for the Year Ended 29 February 2024

2024
2023
Note £
£
Cash flows from operating activities
Net cash (expenditure)/income
(23,748)
41,865
Adjustments to cash flows from non-cash items
Depreciation
7		 8,856
6,892
Investment income
6		 (2,273)
(481)
Loss on disposal of fixed assets held for the charity's own use
10		 3,278
169
(13,887)
48,445
Working capital adjustments
Decrease in stocks
15		 5,610
1,355
(Increase)/decrease in debtors
16		 (96,557)
215,550
Increase/(decrease)in creditors
17		 24,504
(83,878)
Net cash flows from operatingactivities
(126,671)
181,472
Cash flows from investing activities
Interest receivable and similar income
6		 2,273
481
Purchase of tangible fixed assets
14		 (29,095)
(7,401)
Sale of tangible fixed assets 311
81
Net cash flows from investing activities
(26,511)
(6,839)
Cash flows from financing activities
Repayment of loans and borrowings
17		 -
(106,167)
Net (decrease)/increase in cash and cash equivalents
(129,943)
68,466
Cash and cash equivalents at 1 March
475,685
407,388
Cash and cash equivalents at 29 February
345,742
475,854

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

The notes on pages 13 to 27 form an integral part of these financial statements. Page 12

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

1 Charity status

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

The address of its registered office is: Freedom Works Barts House Black Lion Street Brighton BN1 1JE

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 13

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

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:

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 14

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

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 15

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

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.

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 16

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

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 17

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

3 Income from donations and legacies

3
Income from donations and legacies		 3
Income from donations and legacies
Unrestricted
funds
Restricted
Total
General
funds
funds
£
£
£
Grants, including capital grants;
Grants from companies
28,355
-
28,355
Regulargivingand capital donations
188,477
257,817
446,294
Total for 2024
216,832
257,817
474,649
Total for 2023
260,232
196,961
457,193
4
Income from charitable activities
Unrestricted
General
Total
2024
Total
2023
£
£
£
Sales within charitable activities
1,071
1,071
573
Unrestricted
funds
Total
General
funds
£
£
1,071
1,071
Total for 2024
1,071
1,071
Total for 2023
573
573

Page 18

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

5
Income from other trading activities
Unrestricted
funds Restricted Total
General funds funds
£ £ £
Other income from other tradingactivities 132,000 - 132,000
Total for 2024 132,000 - 132,000
Total for 2023 - 52,471 52,471
Unrestricted
funds Total
General funds
£ £
Interest receivable and similar income;
Other interest receivable 2,273 2,273
Total for 2024 2,273 2,273
Total for 2023 481 481

Costs of generating donations and legacies

a)

Unrestricted
funds
Total
General
funds
Note £
£
Marketingandpublicity 14,729
14,729
Total for 2024
14,729
14,729
Total for 2023
37,245
37,245

Page 19

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

8 Expenditure on charitable activities

8
Expenditure on charitable activities
Unrestricted
funds
Restricted
Total
General
funds
funds
Note £
£
£
32,869
2,219
35,088
(141)
-
(141)
Governance costs
9		 549,576
31,254
580,830
Total for 2024
582,304
33,473
615,777
Total for 2023
349,014
158,991
508,005

In addition to the expenditure analysed above, there are also governance costs of £339,056 (2023 - £160,152) which relate directly to charitable activities. See note 9 for further details.

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Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

9 Analysis of governance and support costs

10

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

2024 2023
£ £
Loss on disposal of fixed assets held for the charity's own use (3,278) (169)
Depreciation of fixed assets 8,854 6,892

Page 21

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

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:
2024
2023
£
£
Staff costs during the year were:
Wages and salaries 236,686
68,522
Staff NIC (Employers) 15,515
11,032
Directors remuneration 81,523
77,454
Directors NIC 9,647
10,058
Staff pensions (Defined contribution) - pension scheme 1 7,274
3,926
Directors pension 3,754
2,550
Wages and salaries -
103,346
Entertainment-100% business 381
-
Entertainment-100% business 29
1,027
354,809
277,915

During the year, one employee received emoluments falling within the band of £85,000 to £85,000.

13 Taxation

The charity is a registered charity and is therefore exempt from taxation, other than on trading activities. £23,102 (2023 - £Nil).

Page 22

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

14
Tangible fixed assets		 14
Tangible fixed assets
Furniture and
equipment
Other tangible
fixed asset
Total

£
£
£
Cost
At 1 March 2023
23,424
39,589
63,013
Additions
20,609
8,486
29,095
Disposals
(849)
-
(849)
At 29 February2024
43,184
48,075
91,259
Depreciation
At 1 March 2023
14,557
24,265
38,822
Charge for the year
4,018
4,838
8,856
Eliminated on disposals
(538)
-
(538)
At 29 February2024
18,037
29,103
47,140
Net book value
At 29 February2024
25,147
18,972
44,119
At 28 February2023
8,867
15,324
24,191
15
Stock
2024
2023
£
£
Finishedgoods -
5,610
16
Debtors
2024
2023
£
£
Trade debtors 98,635
-
Prepayments 2,457
4,574
Other debtors 13,158
13,119
114,250
17,693

Page 23

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

17 Creditors: amounts falling due within one year

17
Creditors: amounts falling due within one year
2024 2023
£ £
Trade creditors 1,910 9,540
Other taxation and social security 23,102 6,496
VAT grant repayable (14,023) (16,219)
Other creditors 7,198 3,761
Accruals 11,365 1,470
29,552 5,048

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 £11,028. (2023: £6,477)

19 Funds

Balance at 1 Incoming Resources Balance at 29
March 2023 resources expended February 2024
£ £ £ £
Unrestricted funds
General
Unrestricted - general (134,512) 357,200 (605,320) (382,632)
Restricted funds
Lottery Funding 1,090 - (146) 944
The Clothworkers Foundation Fund 935 - (124) 811
Unilever Fund 1,714 - (1,251) 463
Electronic Arts 80,919 - - 80,919
Paul Hamlyn Foundation 60,299 - - 60,299
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 (295) - (108) (403)
Rathbone Trust 2,000 - - 2,000
The David + Ruth 22,065 - - 22,065
Simple (1,000) - - (1,000)
DTL US Fund (300) - - (300)

Page 24

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

Balance at 1
March 2023
£
Incoming
resources
£
Resources
expended
£
Balance at 29
February 2024
£
414,521
238,095
(23,345)
629,271
(207)
-
(2,413)
(2,620)
(431)
-
-
(431)
(35)
-
(31)
(66)
3,000
-
-
3,000
(4,225)
-
-
(4,225)
(1,222)
-
-
(1,222)
(358)
19,750
(5,756)
13,636
(58)
-
-
(58)
(562)
-
-
(562)
-
-
(290)
(290)
-
-
(11)
(11)
652,644
257,845
(33,475)
877,014
518,132
615,045
(638,795)
494,382
BRP
ASOS
Citi e for education
Citibank
Dylan Nsbuga Salary
EA Games
Fruitworks
Maybelline
TikTok
Schwarzkopf / Got2be
FiFAe
MNY
Total restricted funds
Total funds

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

2023 PARTNERS

BRP - we are a proud charity partner for BRP, a global leader in the world of power sports vehicles and boats. We work together on their program "Ride Out Intimidation" - a global cause and joint mission to create real and lasting social change and impact. This is delivered through direct support and education in the Spanish language.

Citi e for Education - our third year as a proud charity partner with the campaign supporting our work with young people. Citi e for Education has a focus on education globally.

Henkel - through the got2b brand, their support funded our Self-Expression hub which provides a place for young people to explore their most authentic self. It includes toolkits, articles and tips from therapists and influencers.

L'Oreal - through the Maybelline brand, their support funded our direct support services, a pilot programme delivering therapy in the metaverse, an education module on mental health and a university tour delivering 'Brave Talk', which aims to equip people with the tools to support others in a crisis and guide them to help.

ASOS - their funding enabled Ditch the Label to produce an education module on unconscious bias, so that educators can download it; free, complete and ready to deliver in the classroom.

'OLD' PARTNERS

Spotify - Ditch the Label produced the signposting resources for their trust and safety channel.

TikTok - Ditch the Label collaborated with TikTok to produce an education module with a series of lessons aimed at reducing harmful online challenges. This is available completely, free to all secondary schools across the UK.

Page 25

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

20
Analysis of net assets between funds
Unrestricted
Total funds at 29
funds
Restricted
February
General
funds
2024
£
£
£
Tangible fixed assets 42,735
1,695
44,430
Current assets 479,815
-
479,815
Current liabilities (6,448)
(2)
(6,450)
Total net assets
516,102
1,693
517,795
Unrestricted
Total funds at 28
funds
Restricted
February
General
funds
2023
£
£
£
Tangible fixed assets 21,930
2,261
24,191
Current assets 498,988
-
498,988
Current liabilities (5,048)
-
(5,048)
Total net assets
515,870
2,261
518,131
21
Analysis of net funds
Financing cash
At 29 February
At 1 March 2023
flows
2024
£
£
£
Cash at bank and in hand 475,685
(110,126)
365,559
Net debt
475,685
(110,126)
365,559
Financing cash
At 28 February
At 1 March 2022
flows
2023
£
£
£
Cash at bank and in hand 301,221
174,458
475,679
Net debt
301,221
174,458
475,679

Page 26

Ditch The Label Ltd

Notes to the Financial Statements for the Year Ended 29 February 2024

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:

2024: £85,000 2023: £85,000 At the balance sheet date the amount due from Key management personnel was £701 (2023 - £662).

Page 27

Ditch The Label Ltd

Statement of Financial Activities by fund for the Year Ended 29 February 2024

Unrestricted Funds

Unrestricted Funds
Total
Total
Unrestricted
Unrestricted
Funds
Funds
2024
2023
£
£
Income and Endowments from:
Donations and legacies 216,832
260,232
Charitable activities 1,071
573
Other trading activities 132,000
-
Investment income 2,273
481
Other income 5,024
3,839
Total income
357,200
265,125
Expenditure on:
Raising funds (14,729)
(37,245)
Charitable activities (561,815)
(352,491)
Trading expenditure (5,674)
-
Income Tax
(23,102)
-
Other expenditure -
(2,423)
Total expenditure
(605,320)
(392,159)
Net expenditure
(248,120)
(127,034)
Net movement in funds
(248,120)
(127,034)
Reconciliation of funds
Total funds brought forward
(134,512)
476,266
Total funds carried forward
(382,632)
349,232

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

Page 28

Ditch The Label Ltd

Statement of Financial Activities by fund for the Year Ended 29 February 2024

Restricted Funds

Restricted Funds
Total
Total
Restricted
Restricted
Funds
Funds
2024
2023
£
£
Income and Endowments from:
Donations and legacies 257,817
196,961
Other trading activities -
52,471
Other income 28
78,458
Total income
257,845
327,890
Expenditure on:
Charitable activities (33,473)
(158,991)
Total expenditure
(33,473)
(158,991)
Net income
224,372
168,899
Net movement in funds
224,372
168,899
Reconciliation of funds
Total funds brought forward
652,643
-
Total funds carried forward
877,015
168,899

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 29 February 2024

Total
Total
2024
2023
£
£
Income and Endowments from:
Donations and legacies (analysed below) 474,649
457,193
Charitable activities (analysed below) 1,071
573
Other trading activities (analysed below) 132,000
52,471
Investment income (analysed below) 2,273
481
Other income(analysed below) 5,052
82,297
Total income
615,045
593,015
Expenditure on:
Raising funds (analysed below) (14,729)
(37,245)
Charitable activities (analysed below) (624,064)
(511,482)
Other expenditure(analysed below) -
(2,423)
Total expenditure
(638,793)
(551,150)
Net(expenditure)/income
(23,748)
41,865
Net movement in funds
(23,748)
41,865
Reconciliation of funds
Total funds brought forward
518,131
476,266
Total funds carried forward
494,383
518,131

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 29 February 2024

Total Total
2024 2023
£ £
Donations and legacies
Donations and gifts 257,817 196,961
Donations and gifts 188,477 218,532
Grants 28,355 41,700
474,649 457,193
Charitable activities
Website merchandise 1,071 573
1,071 573
Other trading activities
Fee income - 52,471
Fee income 132,000 -
132,000 52,471
Investment income
Other interest receivable 2,273 481
2,273 481
Other income
Other income 28 78,458
Other income 5,024 3,839
5,052 82,297
Raising funds
Advertising (14,729) (37,245)
(14,729) (37,245)
Charitable activities
Advertising - CA (1,072) (569)
Opening finished goods (5,610) (6,965)
Direct costs (15,622) (325)
Closing finished goods - 5,610
Website running costs - CA (1,147) (36,295)
Website costs (11,634) (1,980)
Trade subscriptions (8,287) (3,477)
Shopify Fees - CA RES 141 (316)
Other interest payable (3) -
Wages and salaries - (103,346)
Directors remuneration - (7,546)
Computer and software expenses - GOV (1,010) -

This page does not form part of the statutory financial statements. Page 31

Ditch The Label Ltd

Detailed Statement of Financial Activities for the Year Ended 29 February 2024

Total Total
2024 2023
£ £
Computer software and maintenance costs (4,704) (3,038)
Postage, Freight & Courier - GOV (1,755) -
Printing, postage and stationery (4,170) (2,180)
Trade subscriptions - (421)
Domain and web hosting - GOV (1,459) -
Domain and web hosting - GOV (2,420) (2,920)
Cleaning - GOV (789) (44)
Motor Vehicle Expenses - GOV (1,447) (1,484)
Travel and accommodation - CA RES (18,367) (5,959)
Travel and subsistence (4,590) (16,895)
Advertising (3,113) -
Entertainment-100% business (381) -
Entertainment-100% business (29) (1,027)
Accountancy fees (9,645) (8,666)
Professional Fees (1,825) (3,056)
Legal and professional fees (9,377) (2,552)
Bank Fees - GOV (1,069) -
Depreciation of fixtures and fittings (2,285) (2,543)
Depreciation of office equipment (52) (70)
Depreciation of office equipment (1,680) (342)
Depreciation of computer equipment (512) (572)
Depreciation of computer equipment (4,325) (3,365)
(Profit)/loss on sale of tangible fixed assets held for charity's own use 3,278 169
Wages and salaries (236,686) (68,522)
Staff NIC (Employers) (15,515) (11,032)
Directors remuneration (81,523) (77,454)
Directors NIC (9,647) (10,058)
Staff pensions (Defined contribution) - pension scheme 1 (7,274) (3,926)
Directors pension (3,754) (2,550)
Casual wages (626) (2,269)
Staff training - (15)
Staff Training - GOV (2,493) (341)
Staff welfare - GOV (161) (133)
Staff welfare (3,628) (3,970)
Rent and rates (43,833) (53,504)
Rates (3,156) (2,042)
Light, Power, Heating - GOV (3,980) (3,925)
Insurance (2,495) (3,172)
Repairs and maintenance - GOV (552) (102)
Repairs and maintenance (11,090) (3,640)

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

Page 32

Ditch The Label Ltd

Detailed Statement of Financial Activities for the Year Ended 29 February 2024

Total
Total
2024
2023
£
£
Telephone & Internet - GOV (2,522)
(2,971)
Office refreshments - GOV (29)
-
Office expenses (3,308)
(2,697)
Sundry expenses (435)
(2,057)
Car hire and leasing expense (6,596)
-
Entertainment - GOV (48)
(624)
Entertainment - GOV (65)
(800)
Corporation tax (23,102)
-
Consulting - GOV (5,103)
(704)
Consulting (41,483)
(44,800)
(624,064)
(511,482)
Other expenditure
Bank interestpayable -
(2,423)
-
(2,423)

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

Page 33