OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← Ditch The Label Ltd

2025-02-28-accounts

Charity registration number 1156329 (England and Wales)

Company registration number 08387544

DITCH THE LABEL LTD

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2025

DITCH THE LABEL LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J Blackman
L Kishore
A Luff
R Reynolds Newton
H Fischer
C Callaghan
R Dénoux
Charity number (England and Wales) 1156329
Company number 08387544
Registered office Freedom Works Barts House
Black Lion Street
Brighton
BN1 1JE
Independent examiner Sedulo London Limited
605 Albert House
256-260 Old Street
London
EC1V 9DD

(Appointed 10 April 2025) (Appointed 5 June 2025) (Appointed 25 October 2024) (Appointed 8 November 2024) (Appointed 5 June 2025) (Appointed 25 October 2024) (Appointed 18 November 2025)

DITCH THE LABEL LTD

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Statement of cash flows 7
Notes to the financial statements 8 - 17

DITCH THE LABEL LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 28 FEBRUARY 2025

The trustees present their annual report and financial statements for the year ended 28 February 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)".

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.

Public benefit

We have referred to the guidance contained in the charitable company Commission's general guidance on public benefit when reviewing our objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

DITCH THE LABEL LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 28 FEBRUARY 2025

Achievements and performance

Significant activities and achievements against objectives

2024 saw lots of changes at Ditch the Label starting with the exciting news in April 2024 that our Founder and CEO, Liam Hackett was awarded an MBE in the New Year Honours list. The MBE was in recognition of Liam’s contribution to the charity sector and supporting young people across the UK to navigate issues such as mental health, identity, bullying and relationships.

We continued to reach young people on our own support platform and through the continued funding from partners such as L’Oreal to provide traditional therapy sessions (by Zoom or in the Metaverse). We are proud to report that to date, 100% of the young people engaged in the program have reported significant progress in their mental health, with 93% achieving recovery on anxiety (GAD) measures and 85% achieving recovery on low mood (PHQ) measures.

We continued to deliver the vital mental health presentation (‘Brave Talk') across UK universities; this gives essential skills and tips on what to do and how to support a friend or relative that may be struggling. This hugely successful programme will continue throughout 2025 and into 2026.

Our commitment to our support services for young people has been helped by the recruitment of an additional support mentor, enabling us to respond to demand upon our services. Currently our mentors speak 8 languages in addition to English and is a vital service in removing barriers for young people and helping navigate long waiting times from NHS mental health services which are under increasing pressure.

Our education materials for teachers (Ditch the Label Education) continue to support educators and reach thousands of young people in the classroom. These are completely free to download and ready to deliver by teachers. In 2024, 6,165 educators downloaded our school resources reaching a minimum of 92,475 students.

Further, Ditch the Label, funded by our partner BRP, developed a free and complete Education Module on Intimidation (‘Detener La Intimidación’) in Mexican Spanish for delivery in schools across Mexico.

The end of 2024, saw us bid a grateful farewell to our Founder and CEO Liam Hackett, who left Ditch the Label after 19 years.

In summary:

We remain committed to responding to the existing and emerging needs of all young people aged 12-25.

Financial review

The financial year shows a deficit of £138,164 compared to a deficit of £845 in 2024. Income remained similar to last year at £601,554 compared to £615,045 in 2024. Expenditure totalled £739,718 compared to £615,890 in 2024 which is due to incurring additional salary obligations and legal costs.

Reserves policy

It is the policy of the charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three month’s expenditure. The 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 charitable company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

DITCH THE LABEL LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025

Structure, governance and management

The charitable company was established under a Memorandum of Association which established its objects and powers and is governed under its Articles of Association, amended 3 November 2024, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The charitable company is also a registered charity with the Charities Commission.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

J Blackman (Appointed 10 April 2025)
L Kishore (Appointed 5 June 2025)
A Luff (Appointed 25 October 2024)
R Reynolds Newton (Appointed 8 November 2024)
H Fischer (Appointed 5 June 2025)
MD McCarthy (Appointed 25 October 2024 and resigned 18 November 2025)
R Barrie (Resigned 28 October 2024)
SR H Comins (Resigned 28 October 2024)
VR Miller (Resigned 24 May 2024)
JJ Diez-Aguirre (Resigned 28 October 2024)
HR Smith (Resigned 28 October 2024)
J Afia (Resigned 28 October 2024)
MG Woodruff (Resigned 28 October 2024)
AM Benjamin (Resigned 28 October 2024)
C Callaghan (Appointed 25 October 2024)
R Dénoux (Appointed 18 November 2025)

Recruitment and appointment of trustees

New Trustees may be proposed by the CEO, their representative, The Company Secretary or any Trustee and shall be appointed by the appropriate resolution at a meeting of the Board of Trustees.

Trustees are appointed for a term of three years. At the end of that term Trustees may be reappointed subject to a majority vote of the board of Trustees. There is no cap to the number of times an individual can be appointed to the board of Trustees.

Trustees are initially invited on to the board for a probationary period of 3-months at which point the position will be reviewed by both parties before extending the position to a full board member if appropriate.

The trustees' report was approved by the Board of Trustees.

J Blackman

Trustee

24 December 2025

DITCH THE LABEL LTD

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF DITCH THE LABEL LTD

I report to the trustees on my examination of the financial statements of Ditch The Label Ltd (the charitable company) for the year ended 28 February 2025.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law), you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006.

Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.

Independent examiner's statement

Since the charitable company’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, 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 that in any material respect:

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 financial statements to be reached.

Emma Houghton FCCA Sedulo London Limited 605, Albert House 256-260 Old Street London EV1V 9DD

27 December 2025

DITCH THE LABEL LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 28 FEBRUARY 2025

Unrestricted Unrestricted
funds funds
2025 2024
Notes £ £
restated
Income from:
Donations and legacies 2 221,107 240,384
Charitable activities 3 277,902 239,317
Other trading activities 4 100,000 133,071
Investments 5 2,545 2,273
Total income 601,554 615,045
Expenditure on:
Raising funds 6 19,550 43,489
Charitable activities 7 720,168 572,401
Total expenditure 739,718 615,890
Net expenditure and movement in funds (138,164) (845)
Reconciliation of funds:
Fund balances at 1 March 2024 517,286 518,131
Fund balances at 28 February 2025 379,122 517,286

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 8 to 17 form part of these financial statements.

DITCH THE LABEL LTD

BALANCE SHEET

AS AT 28 FEBRUARY 2025

Notes
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one year
14
Net current assets
Total assets less current liabilities
The funds of the charitable company
Unrestricted funds
15		 2025
£
80,074
284,986
365,060
(19,752)		 £
33,814
345,308
379,122
379,122
379,122		 2024
as restated
£
128,272
361,746
490,018
(16,850)		 £
44,118
473,168
517,286
517,286
517,286

The notes on pages 8 to 17 form part of these financial statements.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 28 February 2025.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 24 December 2025

J Blackman

Trustee

Company registration number 08387544 (England and Wales)

DITCH THE LABEL LTD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 28 FEBRUARY 2025

Notes
Cash flows from operating activities
Cash absorbed by operations
18
Investing activities
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed assets
Investment income received
Net cash generated from/(used in) investing activities
Net cash generated from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2025
£
(926)
-
2,545		 £
(78,379)
1,619
-
(76,760)
361,746
284,986		 2024
£
£
(90,395)
(29,095)
3,278
2,273
(23,544)
-
(113,939)
475,685
361,746

The notes on pages 8 to 17 form part of these financial statements.

DITCH THE LABEL LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025

1 Accounting policies

Charity information

Ditch The Label Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Freedom Works Barts House, Black Lion Street, Brighton, BN1 1JE.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the charitable company's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company 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.

Income from sponsorship fees is recognised in the year in which it relates and therefore entitled to the income, and net of VAT.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

DITCH THE LABEL LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

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

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

Fixtures and fittings 25% Reducing Balance Computers 25% Reducing Balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

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

1.9 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

DITCH THE LABEL LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.10 Taxation

The charity is a charitable company and is generally exempt from UK corporation tax on income and gains applied for charitable purposes. However, certain non-primary purpose trading and other activities may be subject to UK taxation. Tax charges are recognised in the Statement of Financial Activities (SOFA) within expenditure on raising funds or charitable activities as appropriate, and in the Statement of Financial Position as current tax liabilities.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

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

2 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Donations and gifts 221,107 240,384

DITCH THE LABEL LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025

3 Income from charitable activities

Education and
Education and
support
support
services services
2025 2024
£ £
Education talks 4,250 1,250
BRP - Services expansion 273,652 238,067
277,902 239,317
Analysis by fund
Unrestricted funds 277,902 239,317

Charitable trading income

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 to youth in Mexico. This is delivered through direct support and educational resources in the Spanish language.

4 Income from other trading activities

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Sponsorship fees 100,000 132,000
Merchandise sales - 1,071
Other trading activities 100,000 133,071
Income from investments
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Interest receivable 2,545 2,273

5 Income from investments

DITCH THE LABEL LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025

6 Expenditure on raising funds

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Fundraising and publicity
Fundraising agents 19,550 21,934
Staff costs - 15,945
19,550 37,879
Trading costs
Other trading activities - 5,610
Total costs 19,550 43,489

7 Expenditure on charitable activities

Education and Education and
support support
services services
2025 2024
£ £
Direct costs
Staff costs 227,670 243,529
Consultancy fees 58,860 34,077
Travelling expenses 854 17,828
Marketing and social media 23,944 15,801
Website costs 6,811 17,759
Subscriptions 829 2,033
318,968 331,027
Share of support and governance costs (see note 8)
Support 305,655 226,086
Governance 95,545 15,288
720,168 572,401
Analysis by fund
Unrestricted funds 720,168 572,401

DITCH THE LABEL LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 28 FEBRUARY 2025

8
Support costs allocated to activities
Staff costs
Depreciation
Premises costs
HR, training and recruitment
Other staff costs
Insurance
Telephone costs
Computer and software
Travelling expenses
Other office costs
Bank charges
Governance costs
Analysed between:
Education and support services
Governance costs comprise:
Accountancy
Legal and professional
9
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial statements
Depreciation of owned tangible fixed assets
Loss/(profit) on disposal of tangible fixed assets		 2025
£
167,738
11,159
30,952
32,339
5,509
2,343
4,138
13,763
8,585
28,518
611
95,545
401,200
401,200
2025
£
19,192
76,353
95,545
2025
£
1,000
11,159
-		 2024
£
94,925
5,577
52,309
9,017
5,366
2,496
2,522
15,336
13,632
24,323
583
15,288
241,374
241,374
2024
£
9,645
5,643
15,288
2024
£
1,000
8,855
(3,278)

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.

DITCH THE LABEL LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025

11 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2025
Number
8
2025
£
350,433
30,096
14,879
395,408		 2024
Number
12
2024
£
318,209
25,162
11,028
354,399

Redundancy and termination payments totalling £30,000 (2024: £Nil) were made in the reporting period to 1 (2024: 0) member of staff.

The number of employees whose annual remuneration was more than £60,000 is as follows:

2025 2024
Number Number
£70,000 - £80,000 - 1
£110,000 - £120,000 1 -

Remuneration of key management personnel

The Key Management Personnel is considered to be the Trustees (who are not remunerated) and the Chief Executive Officer (who is remunerated).

Officer (who is remunerated).
2025 2024
£ £
Aggregate compensation 138,007 92,974

DITCH THE LABEL LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 28 FEBRUARY 2025

12
Tangible fixed assets
Fixtures and
fittings
£
Cost
At 1 March 2024
24,527
Additions
926
At 28 February 2025
25,453
Depreciation and impairment
At 1 March 2024
12,739
Depreciation charged in the year
3,076
At 28 February 2025
15,815
Carrying amount
At 28 February 2025
9,638
At 29 February 2024
11,787
13
Debtors
Amounts falling due within one year:
Trade debtors
Corporation tax recoverable
Other debtors
Prepayments and accrued income
14
Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income		 Computers
£
66,659
-
66,659
34,400
8,083
42,483
24,176
32,331
2025
£
36,000
23,102
19,130
1,842
80,074
2025
£
14,248
1,004
4,500
19,752		 Total
£
91,186
926
92,112
47,139
11,159
58,298
33,814
44,118
2024
£
98,636
-
27,181
2,455
128,272
2024
£
1,910
3,575
11,365
16,850

DITCH THE LABEL LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025

15 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 March 2024 Incoming Resources At 28 February
resources expended 2025
£ £ £ £
General funds 517,286 601,554 (739,718) 379,122
Previous year: At 1 March 2023 Incoming Resources At 29 February
resources expended 2024
£ £ £ £
General funds 518,131 615,045 (615,890) 517,286

16 Prior Year Restatement

The previous years financial statements contained mis-allocations in respect of unrestricted and restricted funds. During the year, an exercise had been completed to review and re-allocate income and expenditure to the correct funds.

The 2024 financial statements have also been amended to remove the incorrect Corporation Tax liability included.

The net effect of these changes are as follows:

Funds 2024 £ 2024 restated Adjustment
Unrestricted Funds (382,632) 517,286 900,918
Restricted Funds 877,015 - (877,015)
Total Funds 494,383 517,286 23,903

The financial statements have also been restated to amend the presentation of costs to show a more accurate reflection on the cost categories and their associated charitable activities. The net effect of this was £nil.

17 Related party transactions

There were no disclosable related party transactions during the year (2024 - none).

DITCH THE LABEL LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 28 FEBRUARY 2025

18 Cash absorbed by operations 2025 2024
£ £
Deficit for the year (138,164) (845)
Adjustments for:
Investment income recognised in statement of financial activities (2,545) (2,273)
Gain on disposal of tangible fixed assets - (2,965)
Depreciation and impairment of tangible fixed assets 11,159 8,855
Movements in working capital:
(Increase)/decrease in stocks - 5,610
Decrease/(increase) in debtors 48,269 (110,579)
Increase in creditors 2,902 11,802
Cash absorbed by operations (78,379) (90,395)