It started when a group of entrepreneurs left a small recycling bin in the corner of a warehouse, and within three years they had developed the greenest business in Merton.

Kid Stop is a social enterprise which takes unused or unwanted children's toys and clothing for recycling and then resells the goods at the lowest possible price in deprived areas of south London.

Last week, the organisation’s hard work for both the environment and community was recognised when it scooped the Merton Green Guardian business award for 2008.

“It’s fantastic recognition for what we’re trying to do,” said Alex Green, chief executive of Kidstop.

“Our key goal is to make Kid Stop a sustainable business in the long term with both an environmental and social purpose.

“Not only is this a great new and niche way for people to recycle in the community, we’re providing really good quality stuff to people who need it.”

Unwanted products are donated by local residents, and increasingly, large retailers at Kid Stop’s headquarters and shop in Mitcham’s Willow Lane Industrial Estate.

“A lot of the bigger retailers would get rid of a damaged romper suit if a couple of stitches were missing,” added Mr Green.

“But we’ve told them that we can pass on these products to people who wouldn’t be able to shop at their stores in the first place - we’re not competition.”

He added: “While there is a great deal of wealth in Merton, there are some areas which are among the poorest in the country.

“For a lot of people, being able to shop for their children and choose exactly what they want is an empowering experience that they may often be deprived of.”

With a recent grant from the London Development Agency, the company has purchased a mobile shop that brings its goods within reach of the whole community. Kid Stop is definitely a green and ethical company on the move.