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2024-12-31-accounts

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS (A COMPANY LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

BOYDELL & CO

Chartered Accountants 146B Chiswick High Road London W4 1PU

Charity number: 1165766 Company number: 09732439

CONTENTS

Page
Company information 1
Report of the Executive Committee 2-6
Report of the Independent Examiner 7
Statement of Financial Activities 8
Balance sheet 9
Notes to the Financial Statements 10-15

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

COMPANY INFORMATION

EXECUTIVE COMMITTEE Josie Donaldson (Chair) Norlisa Abdullah Salvatore Battaglia Catherine Jacobs Desmond O’Neil Rui Parkinson Jon Tay Seng Tong Kyoto Wood COMPANY NUMBER 09732439 CHARITY NUMBER 1165766 REGISTERED OFFICE 146 South Ealing Road London W5 4QL INDEPENDENT EXAMINER Malcolm Barry Boydell FCA Chartered Accountant 146B Chiswick High Road London W4 1PU

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

REPORT OF THE EXECUTIVE COMMITTEE

FOR THE YEAR ENDED 31 DECEMBER 2024

The Trustees, who are also directors of the charitable company for the purposes of the Companies Act, submit their annual report and the independently examined financial statements of the charitable company for the year ended 31 December 2024.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and 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) (effective 1 January 2015).

PURPOSES AND AIMS

The charity had been operating for many years as an unincorporated entity (charity registration number 327290) but these activities were taken over by the new charitable company from 1 April 2016. The assets and liabilities of the unincorporated charity were taken over on this date. The company was incorporated (company number 09732439) on 13 August 2015 and registered with the Charity Commission (reg. number 1165766) on 25 February 2016. The charitable company is governed by its Memorandum and Articles of Association.

There are currently 8 members of the charitable company. All members agree to contribute £1 in the event of the company winding up.

The objects of the Federation are the preservation of health by advancing the knowledge, practice of and expertise in aromatherapy by education, teaching, research and training.

The chair of the Trustees is nominated and elected by the Board of Directors at the first council meeting after the AGM. New members are nominated by the Trustees and selected for appointment by the Trustees.

New Trustees undergo a period of induction to brief them of their legal obligations under Charity and Company Law, the content of the Memorandum and Articles of Association and the decisionmaking processes.

RISK MANAGEMENT

The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

RESERVES POLICY

It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level, which equates to approximately six months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs.

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

REPORT OF THE EXECUTIVE COMMITTEE

FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED)

FINANCIAL REVIEW

The charity recorded a surplus of £143,866 for the year (2023: surplus of £173,646) resulting in total reserves of £1,441,106 at 31 December 2024 (2023: £1,297,240). All reserves are unrestricted.

ACTIVITIES

The International Federation of Aromatherapists (IFA) has successfully navigated the financial year ending 31 December 2024 with a focus on strategic growth, prudent expense management, and sustainable operations.

The total turnover for the year was £537,709, compared to £580,268 in 2023. School registration fees increased from £37,390 in 2023 to £45,275 in 2024 due to new schools joining, which is expected to positively impact membership growth in the upcoming year. While international workshops were not held, a UK conference was organised, contributing £9,920 to revenue. Exam revenue decreased from £205,610 in 2023 to £137,290 in 2024 due to ownership changes in two major schools, preventing exams from taking place. However, new contracts have been signed, ensuring future recovery. Membership subscriptions remained stable at £300,598, reflecting a strong retention rate. Additionally, interest and investment income saw a significant increase from £8,193 to £22,751 due to better interest rates on additional savings.

On the expense side, exam costs reduced from £40,912 in 2023 to £29,131 in 2024, aligning with lower exam-related activities. Translation costs increased from £7,933 to £10,680 due to additional translation requirements for webinars. Bank charges and streamline fees increased from £8,744 to £12,529, reflecting a change in merchant services to reduce overseas charges and avoid service disruptions. Postage costs rose from £43,687 to £49,674, largely due to inflationary pressures. Salaries increased from £162,357 to £195,206 due to inflation and additional staffing requirements. The organisation spent £6,298 on organizing the UK conference, which offset lost revenue from international workshops.

Key financial highlights include a drastic reduction in research costs from £43,140 in 2023, reflecting a shift in research priorities. Overall cost of sales decreased from £109,629 to £63,544, contributing to improved gross profit. However, administrative costs increased from £306,786 to £330,881, primarily due to salaries, banking fees, and postage. The net surplus for the year was £143,866, lower than £173,646 in 2023, mainly due to reduced exam income.

IFA remains financially stable with a solid membership base and controlled expenses. Moving forward, the key strategic focus areas will be leveraging new school registrations to drive membership growth, capitalising on new exam contracts to restore exam revenue, continuing costsaving measures particularly in administrative and operational areas, and exploring opportunities to expand workshop and conference offerings. Overall, IFA is well-positioned to maintain financial sustainability while supporting its mission of advancing aromatherapy worldwide.

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

REPORT OF THE EXECUTIVE COMMITTEE

FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED)

ACTIVITIES (CONTINUED)

We held a UK Clinical Aromatherapy conference in London and invited a wide range of speakers to enhance our attendee’s knowledge, this was attended globally. The peer’s interaction was exceptional, trade stands were organised, the day was a success.

We sponsored St Annes Special Needs school which is the senior school to Mandeville school where the children are severely disabled with multiple disorders. The line managers are taught how to introduce and use aromatherapy within the classrooms, the feedback has been excellent with the children benefiting from the aromatherapy treatments. We have continued training so the children who have benefited in their younger years have continuity.

We also contributed to our yearly Christmas Crisis project for the homeless again, which involved our local communities. We supplied 2000 aromatherapy health and wellbeing packs to support them.

Schools in mainline China had not been visited since Covid so all schools in Beijing and Shanghai were met and engaged with to ensure high standards were being adhere to. Regional meetings were organised withing the cities and our evidence-based research projects were discussed. The meetings were very well attended, and it was a good opportunity to talk through how we can support them more.

We invested and collaborated with Northumbria University during 2023/2024 on two research projects. Both trials came in positive, clearly showing Aromatherapy essential oil /Co2 plant extracts reduce stress. In 2025 the papers will be publish in medical journals which will be a big boost to our profession and industry which was our aim and objective for running the trials.

We continue to be accredited by the Professional Standards Authority (PSA), a UK body accountable to parliament and are an active member of the PSA Collaborative group and Integrated Health Collaboration (IHC). We are also a verifying organisation of aromatherapists for the Complementary and Natural Healthcare Council (CNHC) and consultants for National Institute and Care Excellence (Nice). This enables us to ensure our members are at the forefront of developments in the field and to represent our members interests collectively before Government bodies.

We also continue to be recommended by the NHS, UK Government National Careers Office and Universities and Colleges Admissions Office (UCAS) and our journal registered with the British Library.

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

REPORT OF THE EXECUTIVE COMMITTEE

FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED)

DIRECTORS AND TRUSTEES

The directors of the charitable company are its trustees for the purposes of charity law. The trustees serving during the year and since the year end were as follows:

Directors and Trustees:

Norlisa Abdullah (appointed 19 May 2024) Salvatore Battaglia (appointed 19 May 2024) Josie Donaldson Catherine Jacobs Desmond O’Neil (appointed 18 May 2024) Rui Parkinson Jon Tay Seng Tong Kyoto Wood Anne Andenaes (resigned 19 May 2024) Trevor Dwyer (resigned 19 May 2024)

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The Trustees (who are also the directors of the International Federation of Aromatherapists for the purposes of company law) are responsible for preparing the Trustee’s annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the company for that period. In preparing those financial statements, the Trustees are required to:

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

REPORT OF THE EXECUTIVE COMMITTEE

FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED)

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS (CONTINUED)

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In accordance with company law, as the charitable company Trustees, we certify that:

INDEPENDENT EXAMINER

The trustees consider that for the year ended 31 December 2024 the company was entitled to exemption from a statutory audit under section 477 of the Companies Act 2006. Under the provisions of the Act, the directors have appointed Mr Malcolm Barry Boydell FCA, as Independent Examiner.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE TRUSTEES:

Josie Donaldson

24[th] April 2025

146 South Ealing Road London W5 4QJ

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES ON THE UNAUDITED ACCOUNTS OF

THE INTERNATIONAL FEDERATION OF AROMTHERAPISTS (A COMPANY LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 DECEMBER 2024

I report on the accounts of the company for the year ended 31 December 2024 which are set out on pages 7 to 14.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

Malcolm Barry Boydell FCA

Chartered Accountant 146 B Chiswick High Road London W4 1PU

2025

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Note
Incoming Resources
Membership 300,598 302,956
Examinations 137,290 205,610
Registration of schools 45,275 37,390
Booklets and leaflets 5,310 3,141
Gift Aid – covenanted income 3,410 3,037
Magazine 1,075 1,111
Workshops 10,100 18,650
UK conference income 9,920 180
Other income 1,980 -
Net investment income 2 22,751 8,193
_ _
Total incoming resources 537,709 580,268
_ _
Resources Expended
Cost of generating funds:
Fundraising expenses - -
Charitable expenditure:
Direct charitable
expenditure 3 63,544 109,629
Management and
administration 4 330,881 306,786
_ _
Total resources expended 394,425 416,415
_ _
Net surplus for the year 143,284 163,853
Value adjustments in respect of
investments – unrestricted 582 9,793
_ _
Total surplus for the year 143,866 173,646
Fund balances brought forward 1,297,240 1,123,594
__ __
Fund balances carried forward £ 1,441,106 £ 1,297,240
__ __

The notes on the following pages form an integral part of these financial statements.

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

BALANCE SHEET AT 31 DECEMBER 2024

Note
2024 2023
FIXED ASSETS 7
Tangible assets 312,881 320,512
_ ______
312,881 320,512
CURRENT ASSETS
Debtors and prepayments 14,336 3,951
Investments 8 360,749 361,463
Cash at bank 770,036 617,671
_ ______
1,145,121 983,085
CREDITORS: amounts falling due
within one year 9 (16,896) (6,357)
_ ______
NET CURRENT ASSETS 1,128,225 976,728
__ __
TOTAL ASSETS £ 1,441,106 £ 1,297,240
__ __
Represented by:
__ __
UNRESTRICTED FUNDS 10 £ 1,441,106 £ 1,297,240
__ __

For the financial period ended 31 December 2024 the company was entitled to exemption from audit under section 477 [small company exemption] Companies Act 2006; and no notice has been deposited under section 476 [member or members requesting an audit].

The trustees acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with s. 386 and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its surplus or deficit for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Trustees on

Date 24[th] April 2025

Josie Donaldson

The notes on the following pages form an integral part of these financial statements.

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1. ACCOUNTING POLICIES

Statutory information

The International Federation of Aromatherapists is a private company, limited by guarantee, and domiciled in England and Wales. It has a Companies House registration number 09732439 and is registered at the Charity Commission under registration number 1165766.

The Federation’s registered office is 146 South Ealing Road, London, W5 4QJ.

Statement of compliance

The Federation’s financial statements have been prepared in accordance with the provisions of the 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) (effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (as amended by SORP update bulletin 1 concerning the non-disclosure of a cashflow statement), the Companies Act 2006 and the Charities Act 2011.

There were no material departures from the standard or acts.

The International Federation of Aromatherapists 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 have reviewed the Federation’s financial position and considered the impact of future activities, to ensure it is appropriate to produce the accounts on a going concern basis.

Tangible fixed assets

Long leasehold buildings are depreciated at an annual rate of 2% on a straight-line basis.

Other financial instruments

Other financial instruments which include investments in equity instruments are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the Statement of Financial Activities, except that investments in equity instruments that are not publicly traded and whose fair values may not be measured reliably are measured at cost less impairment. Financial assets, other than those held at fair value, are assessed for indicators of impairment at each reporting end date.

Turnover

Turnover represents predominantly world-wide membership fees receivable.

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED)

1. ACCOUNTING POLICIES (CONTINUED)

Value Added Tax

Value Added Tax is not recoverable by the charity and as such is included in the relevant costs in the Statement of Financial Activities.

Unrestricted Funds

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds.

Restricted Funds

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs.

2. NET INVESTMENT) INCOME/(CHARGES)


Interest on cash deposits
Other interest received
Dividends received
Other income distributions
Profit/(loss) on disposal of investments
Investment charges

£

. DIRECT CHARITABLE EXPENDITURE

Translation costs
Magazines
Books purchased for resale
Booklets, leaflets and directories
Exhibitions and meetings
Examinations
Miscellaneous costs
Research costs (University of Northumbria)
UK conference costs
Workshop costs
Charity projects

£
2024
2023
10,206
478
6,077
4,404
6,917
6,601
651
669
1,418
(1,468)
(2,518)
(2,491)
__
_
22,751
£8,193
_
_
2024
2023
10,680
7,933
12,183
11,968
-
78
-
-
1,027
3,007
29,131
40,912
-
243
21
43,140
6,298
-
1,450
423
2,754
1,925

_
63,544
£ 109,629

____

3. DIRECT CHARITABLE EXPENDITURE

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED)

4. MANAGEMENT AND ADMINISTRATION EXPENDITURE

2024 2023
Note
Gross salaries 6 195,206 162,357
Other staff costs 3,521 3,831
Staff training and recruitment - -
Office heating, lighting and council tax 2,318 2,167
Office telephone and internet 3,796 3,923
Website 215 -
Postage, printing and stationery 49,674 43,687
Travel, accommodation and
council expenses 3,640 31,098
UK entertaining 1,075 -
Property service charges and insurance 11,247 7,824
Advertising, PR and UK entertaining 2,281 534
Bank charges 12,529 8,744
Book-keeping and accountancy 10,100 6,598
Professional Standards Authority 12,675 11,708
Other associations 35 1,169
Independent examiner’s fee 3,690 3,690
Repairs and low value assets 647 2,780
Computers and IT maintenance 8,589 5,891
Depreciation – leasehold property 7,631 7,631
Photocopier rental 2,012 3,154
_ _
£ 330,881 £ 306,786
_ ______
5. OPERATING SURPLUS
Operating surplus is shown after charging:
2024 2023
Depreciation on tangible fixed assets £ 7,631 £ 7,631
_ ______

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED)

6. STAFF COSTS

. STAFF COSTS
2024 2023
Gross wages and salaries 166,984 140,921
Social security costs 12,973 9,435
Pension costs 15,249 12,001
_ ______
£ 195,206 £ 162,357
_ ______

No Trustee received any remuneration during this or the previous year in their capacity as a trustee. One employee received remuneration between £75,001 and £80,000 (2023: one employee between £60,001 and £65,000).

The average number of staff employed by the charity during the year was as follows:

2024
(No.)
Direct charitable work
4
_

7. TANGIBLE FIXED ASSETS
Leasehold
Property
COST
At 1 January and 31 December 2024
381,560
_

DEPRECIATION
As at 1 January 2024
61,048
Charge for the period
7,631
_
As at 31 December 2024
68,679
_
NET BOOK VALUE
As at 31 December 2024
£ 312,881
_
As at 31 December 2023
£ 320,512
_
2023
(No.)
4
_____

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED)

8. CURRENT ASSET INVESTMENTS

2024 2023
Listed investments £ 360,749 £ 361,463
_ ______

At the reporting date, listed investments held with Quilter Cheviot Limited are held at their market value, in accordance with their valuation report prepared by Quilter Cheviot.

9.
10.
CREDITORS: Amounts falling due within one year
2024
Trade creditors
1,709
Accruals
3,780
Social security and other taxes
4,837
Income received in advance
6,570
__
£ 16,896
_
ACCUMULATED FUND-UNRESTRICTED
2024
Balance at 1 January 2024
1,297,240
Excess of income over expenditure for the year
143,866
__
Balance at 31 December 2024
£ 1,441,106
______
2023
1,666
3,780
911
-
__
£ 6,357
_
2023
1,123,594
173,646
_
£ 1,297,240
____

11. RELATED PARTIES

There are no related party transactions to report, other than the remuneration earned by the Federation’s employees.

12. OTHER FINANCIAL COMMITMENTS

At 31 December 2024 the Federation had no annual commitments under non-cancellable operating leases.

13. CONTINGENT LIABILITIES

At 31 December 2024 the Federation had no contingent liabilities.

THE INTERNATIONAL FEDERATION OF AROMATHERAPISTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED)

  1. OFF BALANCE SHEET ARRANGEMENTS

There are no material off-balance sheet arrangements to disclose.

  1. EVENTS SINCE THE BALANCE SHEET DATE

There are no events on which to report.

16. FINANCIAL INSTRUMENTS

Other than its investments, the Federation has no other financial instruments than basic financial instruments.

17. TRUSTEES’ ADVANCES, CREDIT AND GUARANTEES