Reglstsrgd number.. 05970344 Charty numbers: 1117377 (England & Wales) & SC044129 (Scotlandl VILLAGE WATER LIMITED (A company limited by guarant•o) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
VILLAGE WATER UMITED (A company Ilmltfjd by guaranto&) CONTENTS Page R•f•rnnce and admlnlstratlvo dotalls of tho Company, Its Trustses and •dvls•rs Tru¥ts•s' report Ind&pendont audltorfs roport on the fFnanclal statements Statomont of flnAnclal actlvltles 10-13 14 Balance sh1 15-16 Statoment of cash flows 17 Notes to the fln4nclal stat•m•nts 18-36
VILLAGE WATER LIMITED IA Gompany Ilmltod by guarants•l REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDeD 31 DECEMBER 2025 Trnstees Mr Andrew Picken, Chair MS Trina Chakravarti Ms Sarahan8 Dochefty Mr Steven Andre Mr Martyn Anwl Ms Zara Prabhu Mr Drake Peabody Mr Martin Ricka Ms Madison Kirby lappoinled 17 October 20251 Ms Natalie Lanagan lappoinled 30 January 20261 Ms Rebecca Butcher lappoinled 30 January 20261 Mr Simranjeet Gill lappoinl8d 30 JanLtary 20261 Company rogl8tsr•d number 05970344 Charlty regl8tered numbers 1117377 (England & Wales) and SC044129 (Scotlandl Roglstered offlce Room C, URC Office Coleham Head shr$bUry Shrop$hire SY3 7BJ Ind6pend6nt audltor WR Partners Chartered Accountan18 Belmont House Shrewsbury Business Pa Shrgwsbury Shrop$hire SY2 6LG Bankors CAF Bank Ltd 25 Kings Hill Avenue King8 Hill Wesl rnalling Kont ME19 4JQ Page 1
VILLAGE WATER LIMITED (A company limited by guaranteol TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The Trustees present their annual report together with the audited financial statements of the Village Water Limited for the year 1 January 2025 10 31 December 2025. The Annual report serves the PUTP05es of both a Trustees, report and a dire¢lgrs' report under company law. The Trustees confirm th81 the Annual report and financial slalemen15 of the charitable company comply with the current slalulory requirernenls, the qUIrementS of the charitable company's governing document and the provisions of the Slalemenl of Recommended Practice ISORPI applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1 D21 leffeclive 1 January 20191. Since the Company qualifies as Small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 Islralegic Report and Directors, Report) Regulations 2013 has been omilled. Objectives and actlvltles a. Pollcies and objectives Vision- Better health, education and opportunity for everyone. through safe water, sanitation and hygiene, along with additional integrated activities, improving the lives of the people we work with. The Trustees have had regard lo the Charity Commission's guidance on public ben8fil, including the guidance 'Publi¢ benelrt.. running a charity IP821'. Working towards a¢hieving the Su5t8inable 08velDpmenl Goals, concept 'Le8ve no-ong behind,. the Trustees confirm th81 they have complied with the duty in the Charities. Act 2011 and consider that the objects of the charitable company, the activities outlined in this report and the charitable companls future plans have a demonstrable benefrt lo the public. b. Principal advltles Last yeaf, working closely with our dedicated local partners in Zambia and Mozambique, Village Water supported 102,526 people through safe water. sanilalion. and hygiene progmmmes across our district wide work. Since we began in 2004, we have reached a signrficant milestone, passing two million people supported. This achievement reflects improved WASH services in 4,892 villages. support lo 277 sch¢x)Is and 64 health cenlres, and beller learning environments for 157.173 pupils, helping children study in cleaner, safer conditions. A big part ol our approach is working directly with district councils and partners lo develop District Wide Plans.. practical, costed roadmaps designed to reach everyone in a district with sustainable WASH seNices. These plans identify gaps, strengthen accountability, 5UPPOrt local enterprise, and help ensure no one is left behind. Our focus on three districts is inlenlional.. we are lesling and improving an approach that Can ultimately be led and sustained by councils wrth progresswely less input from Village Water. We are not only investing in infrastructure, bul also in the systems that keep services running. In 2025, functionality remained high, with 98Q/o of water points lunclional. This reliability is supported through locally led maintenance systems, including trained area pump minders and slrenglhened water committees. We also track heakh and inclusion outcomes. Our monitoring shows a 930 reduction in waterborne disease in fccus communities, and improved menstrual heSh outcomes. with 94'/o improved menstrual health knowledge in focus wards and an 89010 decrease in girls, school absence linked lo menstruation and illness. Climate r&silience remains a key part of our work. Since 2019. Dur carbon funded programme ha5 helped keep ServIS operational at scale. supporting 1,262,916 people with maintained water aceess and delivering 1,037 water point repair5 in the year. This approach also contributes lo climate outcomes. with an estimated 4.1 million lonnes of carbon emission savings since 2019. through reduced need to boil unsafe water using firewood. Page 2
VILLAGE WATER LIMITED IA company Ilmltgd by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2025 Objoctives and activiti9$ Icontinugdl c. Grant-making policies Village Water works through local partners in Zambia and Mozambique. with whom we have Partnership Agreements which define roles, expectations, and obligations of all parties. Each partner signs a Memorandum of Understanding which details specific aclivilies, timèline and budget. When we idenlfy new partners lo work with in-counlry we Carry out due diligence checks including organisalional. governance, policies. and financial processes. Partnerships are reviewed annual. We rnoni(or project progress and impact using a mobile-to-web system that tracks milestones along the activty timelines. Financial reports are required by an agreod deadline which. once approved. trigger further transfers made in line with the annual budget. Directors meet bi-monthly and team members from e8¢h partner, including Village Water. lake part in 'hub5' focusing on, bul not limited to Communications and marketing, safeguarding, finance and stock control. monitoring. and board support. Staff, Trustees and occasionally volunteers visit the projects lo support local partners lo develop new projects. gather data, marketing materials, and to carry out Yolbw the monel finance checks. Achiovements and perfomiance Review of activities 2025 Overview.. Throughout the year, we made significant strides in improving walef, sanitation, and hygiene IWASHI in the areas we work. reaching over 102,526 people in Zambia and Mozambique combined. Zambia.. In Zambia. we continued district wide delivery across our focus areas, combining infraslruclure investment wrth hygiene promotion, maintenance systems, and monitoring. In 2025 we installed 11 new village water points, rehabilitated live existing water points, and installed solar powered water systems. We slrenglhened maintenance capacity through training and support for local teams, including area pump minder training and continued reinfor¢emenl of water committee roles and pVentatIVe maintenance. Mozambi In Mozambique. we delivered hygiene and sanf(ation promotion and strengthened maintenance systems through training and loolkils for local area pump minders and waleT committees. We installed new yolar systems in schools and supported sustained service delivery through the carbon programme. K8 Successes In 2025, we redeveloped our websrte so that il better reflects the quality and scale of Village Water's work and enables us to launch new campaigns more quickly and effectively. We mad8 good progress in our three focus dislricls. Thanks lo enhanced support and training, area pump minders have reduced both the frequency and duration of breakdowns. Wg conlinugd investing in our three priority dislricls, installing 15 water systems and repairing five. Our monitoring continues to show clear outcome Ve1 impact. 11 Indicates a 93 per nt reduction in waterborne disease in focus communities, alongside Improved outcomes for girls through menstrual health programming, with 94 per cent improved menstrual health knowledge and an 89 per cent reduction in girls, absence linked lo menslrualion and illness. Page 3
VILLAGE WATER LIMITED IA company limlted by guarantee} TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2025 Achlevemants and perforniance Icontlnued) We have maintained a clear focus on water safely, completing 4.239 water quality lesls in total, including 611 lesls in District Wide Plan areas and 3,628 tests through the carbon programme. Our carbon funded programme continues lo deliver safe water a¢cess for near 1.3 million pecple across rural areas in Zambia and Mozambique. The project has been renewed for another five-year period, and since 2019 we have achieved an estimated 4.1 rnillion lonnes of carbon emission savings. Together, these achievements highlight the impact of long-lerm partnership5 al district level. and our commitment lo reaching everyone with safe, sustainable woler, sanitation. and hygiene. We thank those who make regular gifts. as your support gives us the securrty lo plan. We could not continue lo grow our impact wilhoul the many generous donations from individuals, community groups, and Injsls during the year. We acknowledge. among other5 too numerous to mention, The Waterloo Foundation, The Rotary Club of Slokesley, The Guernsey Overseas Aid and Development Committee, and The Peter Slebbings Memorial Charity. We also remember those who enlrusled us with legacy gifts in thoir wills. Village Water are extremely grateful lo the irnmense generosity DI the BBC Radio 4 Appeal listeners who helped raise over £22,209 via the appeal presented by our ambassador, renowned garden historian, Advolly Richmond. Our Big Give campaign raised £70.411, reflecting a strong response from supporters and high engagement during the appeal period. b. Fundralsln9 actSvltlos and Incomg goneration Village Walor complies w(th the regulatory standards for fundraising. We are registered with the Fundraising Regulator and adhere lo the Fundraising Promise. We are also Signed up to the Fundraising Preference Service IFPSI lo enable individuals lo opt out from receiving fundraising communications from us. During 2025. we received one FPS request and aclioned rt promptly, ensuring the individual was removed from all relevant communications. All income was generated through fundraising, with a small amount from investment income. In 2025 we spent £141,160 12024.. £133,556) in support costs for our projects. Expenditure on charitable aclwilies, including governance, in 2025 was 91 p12024'. 92pl in every pound. Our fundraising activities include applications lo trusts and foundations, en¢ouraging private donations, and digital appea15. We have a large proportlDn of income from corporate donors. We employ a small fundraising team which supports all income generating initiolives. Village Water does not Use third-party suppliers for any fundraising aclivf(ies. Our complaints, policy is publicly available on our website, giving individuals clear means lo complain. even anonymously, about something they are unhappy with. There were no complaints made in 202512024.. none). Our safeguarding policy is available on our website. All staff are familiar with the procedures and have signed the organisalion's Code of Conduct. Structure, govornance and managernont a. Constitution Village Water is a charitable company limited by guarantee incorporated on 18 O¢lober 2006 and registered with the Charrty Commission on 22 December 2006. The Memorandum and Articles of Association were revised and approved by the Board on 26 July 2024. Page 4
VILLAGE WATER LIMITED IA company Ilmbted by guarantsel TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2025 Structure, governance and managemont Icontinuedl b. Methods of appointmènt or electlon of Trustees The charitable company's Board of Trustees currently comprises 12 volunteer members who are responsible for the strategic direction and compliance activities ol the charitable cornpany. The Board meets four times a year. Board Management, Strategy, HR, Fundraising, Finance and Risk Committees meet regularly. Tnjstees are appointed as required. When conSeng new Trustees, the Board will carry out a gap analysis before advertising the posrtion on specialist sites. The Board M8nagement Committee will make recommendation5 on applicants and SeltIOn is by interVW. ¢. Pollcle$ adopted for the Inductlon and tralning of Trustees Newly appointed Trustees receive induction in Village Walerfs background, strategic goals, and financial history. Trustees are expected lo join one of the sub-commillees and gNen the opportunity to wsil the projects in Africa lo better understand the work. d. Organlsatlonal structure and docision-making policlgs The staff team is led by the CEO, to whom the Trustees deleg*e responsibility for ensuring that the charifable company delivers the services specified and that strategic targets are mel. The CEO manages a team of staff including fundraising. monitoring and finance functions. Two trustees stepped down al the April meeting. Paul Marston resigned for personal reasons. and Louise Cook completed her full 12.year term. The Board records its sincere thanks lo both lor their long-51anding Gommilment and valuable contribution lo Village Waterfs work. Madison Kirby joined the Board during the year. The trustees are pleased lo welcome her and look fOard lo the experience and insi9hl she brings lo support the charity's ongoing development and governan. •. Pay policy for kgy managgm&nt personnel The Trustees consider the key management personnel of the charity lo comprise the CEO. The pay of the CEO is reviewed periodically by the Board of Trustees and is benchmarked against similar roles within the charity sector, taking accgunl of the syze, complexity and geographical scope of the organisalion. The aim is lo ensure remuneration is fair, reasonable and sufficient lo attract and retain approprialgly qualified staff whilg reflecting the charity's values and available resources. The remuneration of the CEO is approved by the Trustees. f. Trustees, indemnities The charitable company has granted qualifying Ihird-party indemnity provisions for the benefit of its Trttstees. In addition, the charity maintains Trustee Liability insurance to protect Trusl&es against certain liabilities arising from their role in the governance of the charity. These indemnities and insurance arrangements were in place throughout th& financial year and remain in force al the dale of approval of these financial slalemenls. Page 5
VILLAGE WATER LIMITED IA company limitfjd by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2025 Flnancial raview a. Financlal revSew Incom& Income in 2025 was £1.48m compared wrth £1.69m in 2024. Expenditure lolalled £1.52m, resulting in a small deficit of £38,443 as the charity continued investing in programme delivery across ils three IDCU5 districts. At year end, Village Water held £315,160 in free reserves, comfortably within Tier 4 of ils reserves policy.Corporate income reduced slightly year on year, partly due lo the strengthening of lo¢al currencies against sterling. Eneouragingly. Village Water saw growth across several other areas, 1ncluding non-carbon corporate income, community fundraising, slalulory funding, and legacy giving, all of which increased compared wsth 2024 and demonslrale a continued diversification ol our funding base. Despite a more challenging trusts and foundations fvnding environment, the mix of income outside the carbon programme is now more balanced than in previous years, positioning Village Water well lor sustainable growth in the years ahead. Income streams Stream Individuals (including gift aid) Community groups Trusts Businesses Slatulory Legacy Investments Total 2024 £82,746 £10.428 £377.659 £1,120,150 £54,914 £32,275 £10.136 £1,688,308 2025 £76,525 £24,630 £246,673 £1,018,985 £60,000 £45,542 £5.843 £1.478,198 Ex enditu Total expenditure during the year was £1,516,641 12024.. £1,680,016). Unreslricled funds made up 34Vo12024.' 280AI of our incorne. We continued lo invest heavity in the three districts we are currently working in lo ensure long lemi sustainable WASH services for all. Expenditure on charitable aclivilies, including governance. in 2025 was 91p12024. 92pl in every pound. Expendrture exceeded income by £38.443 as the charity continued lo invest in programme delivery across its three focus districts while Income from trusts and foundations declined COMpad wf(h the previous year. b. Resgrva$ pollcy Village Water, in accordance wi(h recommendations from the Charty Commission. aims lo maintain an unrestricted reserve that allows for Village Water lo protect against future uncertainties and to provide a Secure standing. Tier 1- UK operating costs- £0-116k Tier 2- UK and Partner operating wsls- £116k-228k Tier 3- Exchange rale fluclualions- £228-276k Tier 4. Additional UK and Partner operating costs and Future projects- £276k - 755k The Board remains focused on the need to balance the level of reserves in the charity with th¢ effective delivery of the organi5alion's strategic obieclives. This reserve is lo be invested in an interest-bearing account wlh the potential lo release deposits in a limety fashion if required. Page 6
VILLAGE WATER LIMITED IA company Ilmitsd by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2025 Financlal Revlew {continuedl Should the organisalion face liquidation, 811 assets would be distributed lo another nol-for-profil organisation, working in the same sphere of activity as Village Water lo be used for charf(able purposes. Should any such assets be reslricled to a specific funder. any decision regarding disposal would be discussed and agreed with them before action. Free reseNes comprise of the UnstrICted funds, less fixed as5els and any designated fund5. Total funds al year end stood at £431,875, with £322,371 of this being unrestricted. This amounts to £315.160 free reserves at the year end12024.. £428,301), placing il comfortably within Tier 4 of the reseNes policy. c. Going ¢oncem The financial statements are drawn up on the going concem which assumes Village Water will continue in operational existence for the foreseeable future. The Board has given due consideration lo the working caprtal and cash flow requirements of Village Water. The Board consider Village Walerfs current and forecast cash resources lo be sufficient lo cover the working Gapilal requirement5 of the charitable company for at least 12 months from the date of signing these financial slalemenls. d. Principal risks and uncertainties Village Water's principal risks and uncertainties relate lo income concentration, operational delivery, and external economic and enviTonmenlal factors. A significant proportitsn of income is derived from Dur carbon-financed water programme, which create5 reliance on a single funding source. During the year. this programme was renewed under a new five-year agreement, providing longer-lem) security lor this funding stream. The risk is further mrtigaled by actively diversifying income through trusts, coiporale partnerships. and individual giving, alongside maintaining financial reserves and careful budget planning. Forei9n exchange exposure is miligaled through conservative budgeting and ongoing financial monrtoring. Operational risks include borehole drilling uncertainty, infrastructure maintenance, and climate variability such as drought and flooding. These are miligaled through professional sile surveys, climale-resilienl system design, training of local technicians, and close partnership with local government. Political and rggulalory risks are managed by working through established local partners and maintaining strong local relationships. Village Water ftjrther miligales risk through lean operations, strong governaneè, and reliable monitoring systems, using detailed data and regular reporting lo track funclionalily. managg performance. and ensure accounlable and sustainable programme delivery. g. Risk management The Trustees have overall responsibility for ensuring that the Charitable company has an appropriate system of controls lo identify financial and other risks and lo tske appropriate measures lo manage them. The Finance and Risk Committee carries out on-going reviews of the risk matrix, which is discussed by the Board al each quarterly rneeling. This sets out organisalional and programme risks and actions lo miligale these if appropriate. In ils management of risk, Village Water works through established loeal partner5, Including WATSAN in Mozambique and ECHO in Zambia, who play a central role in nsk management at country level. They miligale operational and financial risk through local technical knowledge. routine monitoring of waterpoinl functionality. oversight of contractors and supply chains. strong financial controls and budget tracking, and regular reporting lo Village Water. Their close latIOnShipS with communities and district aulhorilie5 enable eady idenlificalion of safeguarding, financial, reputslional or delivery risks and prompt corrective action. Page 7
VILLAGE WATER LIMITED {A company limited by guaranteel TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 310ECEMBER 2025 Events after year end In Mozambique, parts of the country are experiencing high levels of rainfall and flooding is leaving communities wrthoul safe drinking water and increasing the risk of disease. Families have been diSplad to temporary cenlres. Schools and health facilities are affected, and livelihoods have been disrupted as crops and farmland are lost. W$ have started a campaign to support these households. Since the year end. conflict in the Middle East has created wider instability, in¢luding disruption to travel routes and potential Impacts on fuel ¢osls and logistics. The Trustees continue to mtsnitor the situation and will respond as necessary. Simran Gill. Natalie Lanagan and Rebecca Butcher were appointed as trustees on 30 January 2026. They bring range of relevant experience lo the Board. and we look forward lo their contribution lo the charty's oversight and future direelion. Plans for the future In 2026, Village Water will continue lo deliver its strategic objectives through Ils district-wide approach, working in partnership wi(h Iccal govemmenls and partners to strengthen sustainable water, sanitation and hygiene IWASHI services. The organisalion aims lo raise over £1.5 million lo support programme delivery and organisational sustsinability. Our planned activities will focus on strengthening district Systems, improving Infrastructure, and enhancing monitoring and accountability. This includes supporting district coordination slruclures, delivering hygiene and sanilalion training in villages, schools. and instilulions, and expanding menstrual health management and WASH education progiammes. Infrastructure Inve51menl will remain a prDrty, with plans lo install and rehabilits18 water systems in villages, schools. and health cenlres, expand solar-powered systems. and strengthen maintenance capacty through training of local maintenance teams, water committees, and Area Pump Minders. We will also continue water quality lesling, surveys. and monf(oring to 5UPPOrt dala4riven planning and long-lemi suslainabilily. In 2026, we will invest in the development of local sanilalion enterprises within a ward in Nalolo, Zarnbia. This will include supporting small businesses wlh training, technical guidance and business developm8nl assistance so they are able to offer affordable lalrine ¢onstruclion and sanilalion service5 to households. By strengthening local supply chains and markel-based service provision, we aim lo increase household access to improved sanitation while building local capacity. creating livelihoods and supporting long-lem sustainability beyond direct project inputs. Through these activities, Village Water will continue lo strengthen locally led systems and ensure Sustainable access lo safe water, sanitation, and hygiene for communities across our focus dislricls. Page 8
VILIAGE WATER LIMITED IA company Ilmlt•d by guarantso) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2025 Stat•m•nl of Trust•os' r•sponslbllltl•$ The Trustggs {who arè also ihe directors of the Company for the purpo868 of company lawl a respon8lble for preparing the Trustees, repxjrt and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndard$ Iuniled Kingdom Generally Accepted Accounting Practic8). Company law rgqulrgs the Trustaes lo prepare financAal siatemonts for each finanryal year. Undgr cornpany law, the Truslaes must not approve the finan8{ stslèments unless they are $allsfied that they give a true and fair view of the stsle tsf affairs of tha Company and of its incoming resources and application of resources, including its income and expenditure. fof that P8riod. In preparing those financial Ststemls, the Trustees are rgquired to.. select suitable accounting policies and thgn aPY Ihgm ¢onsi5tenUy, observe the rnethods and principles of the Charibes SORP IFRS 1021- make judgmgnts and accounting eslmates that ara Tèasonable and prudent; stsle whether applicablg UK Accounting Standards IFRS 1021 have been followed, subject lo any material departures disclosod and explaine¢J In th8 financial statements; prgpare the financial statements on tho going concgm basis unless il Is inappropdate to prgSLtme that the Company will continLte in business. The Trustees arè rèsponslble for keeping adequate accounting records that are sufficient lo show and èxplain the Companls transactions and tylsclose with reasonable accuracy al any time the financial posiiion of the Company and enable them to ensure that Ihe financial staternenls comply wlth the Companies Act 2006. They are al30 responsible for safgguarding the assgls of Ihe Company and hence lor taknng reasonable steps for the prgvention and deteclKJn of fraud and other irregularities. Dls¢losur• of Inforniatlon lo auditor Each oflhe persons who are Tfu$tÈÈ$ 8t the lime when thTS Tnjslees, Eptsrt is approved ha$ confirmed that.. so far as that Trustee is aware. Ih9re is no relgvanl audit information of which the challvs audllor 18 uftaware, and Ihal Trusl¢e has taken all the steps that ought to have been taken as a TnJsle8 in order to be awarg of any felevanl audit information and to establish that the charitys au¢Jitor is aware of that information. Auditor The Cornpany changed auditors ¢Juring the year and appointed WR Partnws as our new external audilois. This change was planned lollowng many years of saryice fmm the provious auditors and was approved by 808rd. Appro byo g members of the board of Trusl8&s and signod on th9ir bghall by.. r Drake Poabody Trustae Date= L,,& IY, 20 Page 9
VILLAGE WATER LIMfTED IA Qompany Ilmltfrd by guaranteel INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF VILLAGE WATER LIMITED Oplnlon We havo audltg¢J thg financial statements of Vfllage Wat8r Limited Ilhe 'charitable ¢ompan¥l for the yeaf endfrj 31 D•cemb8t 2025 which comprise the Ststement of financial a¢Uvtties. the 8a18nce sh8el. the Stalemgnt ol cash flows and the related note5, including a summary of significant accounting policies. The financ5al reporting framework that has been applied in their preparation is applicable law and Unrted Kingdom Accounting Siandards, in¢luding Financial Rgporting Stsndard 102 Thè Financial Reporting StandaTd applicable in the UK and Republic of Ireland, (Vniled Kingdom Generally Accepted Accounting PracJc¢l. In our oplnlon the financ681 slatem8nls: give a true and fair view of the stsle of the charitable companys 8ffaiis as at 31 December 2025 and of its incoming resout¢O5 8nd application ol resources, including its incorne and gxpenditure for the year then ended.. have been pyoperly prepar9d Sn accordance with United 'ngdoM G8nerally Accopted Accounting PractiC8,' and hav9 been prepared in accordance with the requ1MentS of th$ Charities Act 2011, the Charlties and Trustee Inveslfnenl {Scollandl Act 2005 and regulation 8 of the Charitie$ Accounts IS¢otland) Regulations 2006. Bas18 lor opinio We conducted our audit in accordance wilh Intemalional Stsndards on Auditin9 IUKI IISAS IUKII and applicable law. Our responsibilities un¢Jer those standards are further described in th9 Audilorfs responsibilities lor the audit of ihe financial slalements section ol our report. We are independent of Ihe charitable wmpany in accordance th the ethical requir8rnents that are relevant lo our audit of the financial statements in the United Kingdom, induding the Financial Reporting Council's Ethical Standard, and we have fulfilled our other elhical responsibilities in accordance with those requirements. W• b81ieve that Ihe audit evldence wg havè obtsinad is sufficient and approprlatè to prowde a basis lor our oplnlon. Conduslons r•latlng to golng ¢on¢orn In auditing the financial 51alements. we have concluded that the Trustees, use of the going concern ba$is of accounting In the preparation of the financial slalements is appropriate. Bas&d on the work we have performed. we have not identhfjed any materi81 uncertainll&s relating lo events or conditions that. Individually or collectively. may cagt significant doubl on the charitable companrfs ability lo r¢tinue a5 a going concem for a period of al least tsvelve months from when Ihe financial statements are aulhorised for issu8. Our responsibilities and the responsibililles of the Trusteeg wlth respacl lo going C¢$M are described in the relevant sedons of this report. Page 10
VILLAGE WATER LIMITED (A company Ilmltgd by guarante&l INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF MLLAGE WATER LIMITED ICONTINUEDI Other Information The other information comprises the information included in the Annual report other than the financial slalementS and our Auditor's report Ihereon. The Trustees are responsible for the other information contained within thè Annual report. Our ¢)pinion on the financial slalemenls does not cover the other infomalion and, except lo the extent olhewse explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other information and. in doing so. consider whether the other infomiation is materially inconsistent with the financial slalemenls or our knowledge obtained in the course of the audit. or otherwise appears lo be malerialty misslaled. If we identify such material inconsistencies or apparent material mis5taternenls, we are required to determine whether this gives rise lo a material misslalemenl in the financial slalemenls themselves. If, based on the work we hav8 performed. wo Conclude that there is a material misstatement ol this other information, we are required to report that fad. We have nothing lo report in this regard. Matters on which wo ar8 raquired to report by gXCePtion We have nothing lo report in respect of the following matters Whe the Charities IA¢counls and Reports) Regulations 2008 and the Charities Accounts Iscollandl Regulations 2006 las amended) requires us lo report lo you if, in our opinion. the infoimalion given in the Trustees, report is inconsislenl in any material respect with the financial slalemenls", or sufficient and proper accounting records have not been kept.. or the financi81 slalemenls are not in agreement with the accounting records and returns., or we have not received all the information and explanations we require for our audit. R9spon$ibilitle$ of trustees As explained more fully in the Trustees, responsibilities slalemenl, the Trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for su¢h internal control as the Trustees determine is necessary lo enable the preparation of financial statements that a free from material misstatement, whether due lo fraud or error. In preparing the financial Sialemenls, the Trustees arg responsible for assessing the charitable ¢ompany's ability lo Continue as a going concern. disclosing. as applicable, matters related lo going concern and using the going Concern basis of accounting unless the Trustees either intend lo liquidate the charitable company or to cease operations, or have no realistic af(ernalive but lo do so. Page11
VILLAGE WATER LIMITED IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF VILLAGE WATER LIMITED (CONTINUED} Auditor's responsibilities for the audit of th¢ financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and section 4411 Ilcl of the Charrties and Trusteè Inve51menl (Scollandl Ad 2005 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalemenl, whether due lo fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audTt conducted in accordance with ISAS IUKI will aayS detect a material misslalemenl when il exi51s. Misslatemenls can arise from fraud or error and are considered material if. individually or in the aggregate, they coukj reasonably be expected to influence the economic decisions of users iaken on the basis of these financial statements. Irregularities. including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our rgsponsibililies, outlined above. lo detect material misslatemenls in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed bek)w'. We reviewed the susceplibilty of the charitable company's financial sialemenls to material misslalemenl and identified the principal risks, implementing a series of testing pr¢xedure5 to provide us wrth SLrfficienl comfort lo issue our opinion. We reviewed the charrtable company's regulatory environment to ensure we could conclude that rt had acted in accordance with the framework relevant to the charitable company and rts environment and identify any instances of non-compliance. We alsts assessed the charitable company's internal control procedures lo ensure we could appropriately scrulinise these controls and establish whether our understanding of the control environment was sufficient lo supplement our additional lesling procedures. The engagement team consisted of a team that the engagement partner believes is equipped wrth the relevant level ol technical and charitable company awareness to carry out our work to the required standard. Because of the inherent limitations of an audit, there is a risk that we will not deleel all irregularities, including those leading to a material misslalemenl in the financial slalements or non-compliance with règulation. This risk increases the MO that compliance with a law or regulation is removed from the events and ITansactions reflected in the financial slalemenls. as we wll be less likely lo become aware of Instances of non-compliance. rhe risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud inVoe5 intentional concealment, forgery, collusion, omission or mi5represenlalion. A further description of our responsibilrties for the audit of the financial statements is located on the Financial Reporting Council's website at.. wwwfr .or .uklaudilorsres onsibi ities. This description forms part of our Audstorfs report. Page 12
VILLAGE WATER LIMITED (A company Ilmltad by guarant••l INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF VILLAGE WATER LIMITED (CONTINueDI Us• of our r•port This report Is made 501oly to the chgrflaNe companys truste8$, as a body. In ac¢ord8nc8 with Part 4 of th Charities (Accounts and Report51 Regulations 2008 and regulatron 10 01 the Charities Accoun15 {Scolandl Regulations 2006. OUT audit work has been undertaken so that we might state to the charitable comp8nls trustees those matters wo are required lo slate to them an AudiloT'S report and fer no other purpose. To the fijllest exienl permitted by law, wa do not accgpt or assume responsibility lo anyone othar than Ihfj charitable comp8ny and Its members. as a body, for our audit work, for this report. or for the opinions we have forrn&d. WR Partners Chartered Aecovntanls statutory Auditors 38lmonl House Shfewsbury Business Park Shrewsbury Shropshlre SY2 6LG Date: 30 WR Partners are elKJible to act as audito in term5 of section 1212 of the Companies Act 2006. Page 13
VILLAGE WATER UMITED (A Company Ilmltod by gu4rnnts0> STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDMJRE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2025 Restrlctsd Unrg$trlcted lunds fund$ 2025 2025 Tgtal fund$ 2025 Total funds 2024 Not• In¢om• from: Donations and legaoes Investments 981.729 490,626 1,472,355 1,678, 172 10, 136 Total In¢om• 981,729 496.469 1.478,198 1,688,308 Expenditure on.. Charitable acb'vit1¢8 1.082,140 434.501 1.516.641 1,660,016 Total •xpendituro 1.082,140 434.501 1.516.811 1.660.016 Mot 1•XndIr•Illn¢0mO Tfanslers between fijnds 1100.4111 169.947 61.968 1169,9471 {38,4431 28.292 t6 Net movement Sn funds 69.536 1107,9791 {38,4431 28.292 RKon¢lllatlon of funds: Total funds brought forward Nel movemfrnt in fvnd$ 39,968 69,536 430.350 1107,9791 470,318 138.4431 442.026 28.292 Total funds carrl•d foThvard 1Q9,5(14 322.371 431,875 470,318 l of the above r8sull8 ar9 derived from continuing aclfvilles. The Statemènt of Financial Activities includes all galns and losses r8co9nisgd in tho ar. The notes on pages 18 10 36 form part of Ihege financial statement8. Page 14
VILLAGE WATER LIMrrED IA MpanY Ilmltod by guarant••) ReGI8TeRED NUMBER: 05•70344 BALANCE 8HEET A8 AT 31 DECEMBER 2025 2025 2024 Not• Flx•d •M•ts InlangSbl• assets T8ngibl 8881ts 12 5,781 1,451 13 2,049 7,211 2.049 Currnnt a•a•t• Debtors Cash at bank and in harHI 14 118.$58 417,763 121,351 358.125 536,321 479,4T6 Curr•nt Ilabllltl Credltorn: amoLtnts faIry dLt8 witNn one 15 (111,657) (11,207) N•t ¢urr•nt aM•t• 468.269 Totsl •s•ots l••• cumint Ilabllltl•s 431,876 470,318 N•t M•t• 431,875 470,318 Totsl n•t •M•ts 431,875 470.318 Pag•15
VILLAGE WATER LIMITED {A company Ilmltod by guarantO0) REGISTERED NUMBER: 05970344 BALANCE SHEET ICONTINUEDI AS AT 31 DECEMBER 202S 2025 2024 Noto Charlty funds Restricted funds Unrestricted funds 16 109,504 322,371 39,968 430,350 16 Total funds 431.875 470.318 The enllty was enli118d to exemptson from audit under section 477 of the Companie5 Act 2006. The mgmbers have not requir8d the enllty lo obtain an audit lor the year in question In accordance with section 476 of the Companies Act 2006. However, an 8udil is required in accordanc8 with section 144 of the Charilies Act 2011 and $9ction 44{1)l¢l of the Charities and Trustee Investment {ScoUand) Act 2005. The Trusteès acknowledge their rgsponsibilittes for complying wlh the requirements of the Act with respect lo acc¢yJnlin9 recryds and prèparatlon of flnanciaj statements. The finanaal stalem8nl$ have been prepared in aCrdanc wlh th8 piovislons appIable to anlilies subject lo thè srnall companies regime. Tho temenls were approvod and aythMsgd for issue by the Trustees and signed on their behalf bw. Mr Orake Pèab TNsle& Dgte.. The notes on pages 18 to 36 fom) part of these financial stslemonls. Page 16
VILLAGE WATER LIMITED {A company Ilmlt•d by guarantsol STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025 2026 2024 Cash flowffj from 0ratIng actlvltl•s Net ¢a$h used in oporaling activities 61.694 (91,549) Cash flows from Investlng actlvltles Bank Inte8t received Purchase of intangible a$5ets Purchase of tangible fixed ass&ts 6.843 17.2001 15991 10, 136 (2,270J Net cash (used inyprovld•d by Investlng actlvltles 11.9561 7.866 Change In cash and cash 8qulval•nts In the year Cash and c8sh equivalents al the beginning of thg year 59,638 183.6831 441,808 368,126 Cash and cash •qulvalent8 at the end of the year 417,763 358, 125 The notes on pages 18 to 36 form part of the8e finan¢ial $lalom8nts Pa9e 17
VILLAGE WATER LIMITED (A eompany limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 General Infomiation Village Water is a private charitable company limited by guarantee, incorporated in England and Wale5 under the Companies Ael, and registered as a charity in England and Wales 111173771 and Scotland ISC0441291. The charrtable company's registered office addres5 15 shown page 1. The nature of the eharrtable ompanls operations and ils principal activites are sol out in the Trustees, Report on page 2. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities". Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Village Water L1mited meets the deffnilion of 8 public bgnefit entity under FRS 102. The financial statements have been prepared using the historical cost convention. The fundional currency of the chafity is considered lo be pounds sterling (£1 because that is the currency of the primary economic environment in which il operates. The financial sialemenls are presented in pounds sterling 1£). 2.2 Going concern The financial slal&menls are drawn up on the going Concern basis which assumes Village Water will continue in operational existence for the foreseeable future. The Board has given due consideration lo the working caprtal and cash flow requirements of Village Water. The Board consider Village Walerfs Current and foreca51 cash resources lo be suffi'cient lo coveT the working capitsl r8quiremenls of the charitable company for at least 12 months from the dale of signing these finan¢ial slalements. 2.3 Incoming resources All incoming resources are included in the slalement of financial adivilies when the charitable company Is enlilled lo the income. il is probable that the income will be received. and the amount can be measured reliably. Incoming resource5 from donations represent voluntary income, which is credited in the year in which they are received.. and Investment income, including bank interest, Is credited in the year in which it is reived. Page18
VILLAGE WATER LIMITED IA company limited by guarant881 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Accounting policies Icontinuedl 2.4 Rasourcgs exponded Expendi(ure is included on an aecrual's basis inclusive of VAT, which is not recoverable. Expenditure direclty allTibutable lo specific activities has been allocated lo Ihose ads'vities. Costs of charitable activities in Zambia and Mozambique represent direct expenditurg incurred Ihrough grants lo local partners for their operational aclivrties together with associated support costs to deliver safe water. sanilalion and hygiene. Fundraising expenses rel8le lo the costs incurred by the charitable company in raising funds for the charrtable work. Governance costs are associated wi(h the arrangements relating lo the strategic operations of the charitabe company as opposed lo those costs associated with general running of the charrtable company, fundraising or charitable activity. These governance costs include external audit costs, staff and Trustee costs in govemance of the organisalion. 2.5 Fund structure The funds held by the charf(able company fall into the following categories.. Unrestricted funds- represents donations and other incoming resources recewable for the object of the charitable company wilhoul further specrfied purpose and are available a5 general funds. Reslrrted funds- represent funds subject to reslriclions on their expenfilure as imposed by the donor. 2.6 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company, this is normally upon notifiealion of the interest paid or payable by the inslilulion with whom the funds are deposited. 2.7 Intanglble assets and amortbsatlon Intangible assets are initially recognised al cost. After r8cognilion. under the cost model, Intangible assets are measured at cost less any a¢cumulated amortisalion and any accumulated impaimienl losses. Amortisalion is provided on intangible assets al rates calculated lo write off the cost of each asset on a slraighl-line basis over ils expected useful life. Amort15ation Is provided on the followng basis.. Website 200 Page 19
VILLAGE WATER LIMITED (A company limited by guaranteè) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Accounting policies Icontinuedl 2.8 Tanglble fSxed as$ets and depreciation Tangible assets are slated in the balance sheet al cost less aumUlated deprecralion and accumulated impairment losses. The cost of tangible asse15 comprises the purchase price together with all expenses directly incurred in bringing the asset lo its location and eondilion ready for use. Depreciation is charged so as lo allocale the CDSI of tangible fixed assets less their residual value over their eslimaled useful lives, using the 51raighl-line method. Depreciation is provided on the follohwng basis.. Fixtures and fittings 33% 2.9 Recelvablos Receivable5 are wognised al the settlement amount due. Prepayments are valued al the amount prepaid nel of any discounts due. 2.10 Cash at bank and in hand Cash al bank and in hand includes cash and short-lerm highly liquid investments wlh a short maturrty of three months or less from the dale of a¢quisrtion or opening of the deposit or similar account. 2,11 Liabilities alld provisions Liabilrties are recognised when there is an obligation at the Balanc8 sheet dale as a result of a past event, il is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be eslimaled reliably. Liabilities are COgnised al the amount th81 the Company anticipates rt will pay lo settle the debt or the arnounl Il has received as advanced payments for the goods or services il musl provide. Provisions are measured at the best estimate of the amounts requifed to settle the obligation. Where the effect of the lime value of money is material, the provision is based on the prasenl value of those amounts, diswunted al the PTe-lax discount rale that reflects the risks specific lo the liability. The unwinding of the discount is recognised in the Siatemenl of financial 8clivilies as a finance cost. Page 20
VILLAGE WATER LIMITED {A company Ilmlted by guarantoel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Accounting pollcies Icontinuedl 2.12 Financial instruments The Company onty has financial assets and linaneial liabilrties of a kind that qualify as basic financial instruments. Basic financial instruments are Initially recognised at transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured al amortised cost using the effective interest method,. however, the charitable company does not curfenlly have any bank loans. 2.13 Pensions The Charitable company operates a defined contribution pension scheme. Contributions are recognised in the Slalemenl of Financial Activities in period in which they become payable. Critical ac¢ounting estlmates and areas of judgment Estimates and judgments are continually evaluat and are based on historical experience and other factors, including expectations of future events that are believed lo be reasonable under the circumstances. Critical accounting estimates and assumptions.. The Company makes estimates and assumptions concerning the future. The resurting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no eslimale5 and assumptions that have a signrficant risk ol causing a material adjustment lo the carrying amounts of assets and liabilities wrthin the next financial ygar. Income from donations and legaciès Restricted Unrestrlctgd fund$ funds 2025 2025 Total funds 202S Donatlons Community Corporate Individuals Slalulory TruslslFoundalions Legacy 15,999 751,768 2,256 60,000 151,706 8,631 267,217 74,269 24,630 1,018,985 76,S25 60,000 246,673 45,542 94,967 45.542 981.729 490.626 1,472,35S Page 21
VILLAGE WATER LIMITED (A company Ilmttod by guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 In¢ome from donation$ and l•gacles lcontinu) Re$liy¢ted UnrestriG19d runds funds 2024 2024 Total funds 2024 Donatlons Communty Corporate Individual$ Statutory Trus151Foundats'ons Legacy Grft 3,110 801,929 3,356 54,914 356,460 7.318 318,221 67,682 10,428 1, 120, 150 71,038 54,914 377,659 32,275 11,708 21, 199 32,275 11,708 1.219. 769 458,403 1, 678, 172 Investment incomo Unrestrlctod funds 2025 Total funds 2025 Bank in19resl r8Geivable 5.843 Unroslricl8d lunds 2024 To181 funds 2024 Bank inl¢ro8t recetvable 10, 136 10, 136 Page 22
VILLAGE WATER LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Analysi$ of expgndlture on charltable actlvltles Summary by fund type Restrlcted Unrestricted funds funds 2025 2025 Total 2025 Charitable actMlies- Zambia Charitable activities- Mozambique Fundraising Govemance 563,765 518,375 112,Q03 115,964 141,160 65,374 675.768 634.339 141,160 6S,374 1.082.140 434.501 1,516,841 Restrlcted expendituro. Village Water raises donations in the UK to support water, sanilalion and hygiene IWASHI activities in Zambia and Mozambique. The monies are remilled lo Empowered Communities Helping Others and WATSAN Mozambique, both independent NGOS, who Carry out the compan¥s fi'eldwork programme. Unrestricted expenditure The charrtable company initially identifies all unrèslriced èxpendrturè and then apportions the cost between four major categories". Charitable expenditure Zambia- relates lo support costs incurred to raise funds for aclivrties in Zambia. Charitable activi(ies Mozambique- relates lo support costs incurred lo raise funds for activities in Mozambique. Fundraising expenses- relate to the costs incurred by the ¢har((able company in raising funds lor the charitable work., and Govemance- costs are those asswialed with the governance arrangements relating lo Ihe strategic operations ol the charitable Company. Page 23
VILLAGE WATER LIMITED {A company Ilmited by guarantèè) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Analysis of •xpenditure on charltable adivities Icontinuedl Summary by fund type Iconlinuedl Reslricled Unhpslricted funds funds 2024 2024 Total 2024 Charitable aclivilies• Zambia Charitable acliwties- Mozambique Fundraising Governance 595, 923 663,615 101,435 110.511 133,556 54,976 697.358 774. 126 133,556 54.976 1, 259, 538 400,478 1,660,016 Analysls of gxpenditure by activities Charitable Actlvities 2025 Support costs 2025 Total funds 2025 Charitable activities- Zambia Charitable activities- Mozambique Fundraising Governance 675,768 634,339 675,768 634,339 141,160 65,374 141.160 65.374 1.310.107 206.534 1,516,641 Charitable Activities 2024 Support costs 2024 Total funds 2024 Ch811table activities- Zambia Charitable a¢livili&s- Mozambique Fundraising Govemance 697.358 774. 126 697,358 774, 726 133,556 54,976 133.556 54,976 1,471.484 188.532 1,660,016 Page 24
VILLAGE WATER LIMITED (A ¢ompany Ilmlted by guarant•el NOTes TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 Analy*ls of expendlturo by actlvltles {contlnued} Analysls of dlrect costs Charltable Charltsblg actlvltles. actlvltlos- Zambla Mozamblquo 2025 2028 Total funds 2025 staff costs Training Travel Work from home allowance Event8 & fundraising Office eosts 100,223 3,401 1,594 477 308 1.923 480 2,885 103,796 3,526 1,653 496 204.019 6.927 3,247 973 308 3,913 978 5,872 1,990 498 2.987 280 738 nsurance IT expense¥ Other govemance costs Depreciation and amortisation Remittances lo Zarnbia Remittances to Mozambique Direct expendf(ure in UK on work in Zambia Direct expenditure in UK on work in Mozambique 712 $80,659 1.460 $60,659 515,945 3,106 2,430 515,945 3,106 2,430 875,768 834,339 1,310.107 Pag• 2S
VILLAGE WATER LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Analysis of gxponditure by activities Icontlnuedl Analysis of direct costs Icontlnuedl Charitable activities- Z8mbia 2024 Charitable activities- ozambique 2024 Total funds 2024 Staff costs 92, 792 2.544 1,416 572 101550 2, 638 1,468 594 1,557 684 1.436 584 794,342 5,782 2.884 1. 166 3,061 1,343 2.821 7, 147 593,248 653,827 2.675 9, 788 Training Travel Work from home allowance Office costs Insuranc& IT expenses Depreciation and amortisation Rgmittances lo Zambia Romittances lo Mozambique Direct expenditure in UK on work in Zambi8 Oirecl expenditure in UK on work in Mozambique 659 1,385 563 593,248 653,827 2,675 9. 788 697.358 774, 126 7.471,484 Salaries. recruilmenl, trainin9 travel and volunteers. wsts are apportioned per capita- i.e., on the number of people of employed within an aclivily. Events and fundraising, other govemance costs, audit fees and bank charges apportionment is based on usage. Office costs, insiJran¢e and IT expenses apportionment is based on floor area occupied by an activity. Page 26
VILLAGE WATER LIMITED IA company limited by guaranteol NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Analysi$ of expenditure by activities Icontinuedl Analysis of support costs Total fund$ 2025 Fundralsing Governanco 2025 2025 Staff costs Training Travel Work from home allowance Events & fijndraising Office costs IT expenses Other governance costs Audit fees 119,353 3.779 1.771 531 44.943 1,889 886 164,296 5,668 2,657 797 266 8.610 2,874 3,451 110 8,720 3,938 4,702 1,968 12,520 1,187 81 1,064 1,251 1,968 12.520 396 81 Depreciation and amortisalion Bank charges 791 141.180 65.374 206,534 Total funds 2024 Fundraising Govemance 2024 2024 Staff costs 100,694 2,827 1,573 636 23.260 2,403 1.538 41,316 1,413 787 318 142,010 4.240 2,360 954 Training Travel Work from home allowance Events & fundraising Office costs IT expenses Other governance Costs Audit fees Depreciation and amortisalion Bank charges 23.260 3,604 2,307 1.260 7,500 938 99 1,201 769 1.260 625 373 99 733,556 54,976 188,532 Page 27
VILLAGE WATER LIMITED {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Auditor's remungration 2025 2024 Fees payable lo the Company's auditor for the audi( ol the Companys annual accounts 7,750 5,000 Fees payable lo the Company's auditor in respect of.. All non-audil services not included above 2,500 2,5C Taxation and Charitable status The Trust is a chantable company wlhin the definition of Section 467 Corporation Tax Act 2010 and is, therefore, able lo take advanla9e of the exernplion given by Section 486 of that Act. Accordingly, there Is no Corporation Tax charge in Ihesg financial slalemenls. 10. Staff costs 2025 2024 Wages and salaries Social security costs Oporaling costs of defined benefit pension schemes 319.211 27,971 21.133 292,450 22.950 20,952 368,31 S 336 352 Of the lolal staff costs of £368,315, £204,019 is allated to charitable aclivilie5 Isee note 71, including programme monitoring and delivery roles supporting the carbon-financed wal&r programme. These costs are classified as charitable expenditure in accordance with the Char((ie5 SORP IFRS 1021. The average number of persons employed by the Company during the year was as follows.. 2025 No. 2024 Average number of employees The average headcounl expressed as full-lime equivalents was.. 2025 2024 No. Employees Page 28
VILLAGE WATER UMITED {A company Ilmltod by guaranto0) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2026 10. 8tsff co$ts Icontlnugdl No employee received remuneration amounting lo more than £60.000 in oilh&r yoar. The total amount of employee benefrts (including employer pension contributions and employer national insurance conlrsbution8) paid lo key management personnel of the charity was £54.840 {2024.. £53,132). 11. Trustees. Temuneratlon and expenses During the yoar. no Tiustees received any remunerats'on or other benefits (2024 - £NIU. 2 Trustees were paid expenses lotalling £1,14512024.. £1.330) for travelling lo UK Trustees. meetings. No charity Tru81ee received payment for professional or other services supplied lo the charity {2024'. £nill. 12. Intanglbla assets Webslte Cost Addf(ions 7.200 At 31 De¢ember 2025 7,200 Amortlsatlon Charge for the year At 31 December 2025 N•t book v•lu• At 31 December 2025 5,760 At 31 Decemb8r2024 Page 29
VILLAGE WATER LIMITED {A ¢ompany Ilmlted by guarant> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 13. Tangibl• flxed assets Flxtureg and 1sitlng$ Cost or valuatlon Al 1 January 2025 Add¢tions 9,758 Al 31 December 2025 10.357 Dgprlclatlon At 1 January 2025 Charge for the year 7,709 1.197 At 31 December 2025 8,906 Net book valu• At 31 December 2025 1,4S1 At 31 December 2024 2,049 14. Debtorn 2025 2024 Dug within one year Other debtors Prepayments and accrued InMe Gift Aid Recoverable 99,081 19,477 120,858 493 118,$58 121.351 Page 30
VILLAGE WATER LIMITED IA company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 1S. Credltorn.. Amounts falling due within one year 2025 2024 Othèr laxalion and social security Other creditors 7.477 2,866 101.314 8.881 2,326 Accruals and deferred income 111.657 11.207 16. Statement of funds Statement of funds - current year Balance at 31 December 2025 Balance at 1 January 2025 Transfgrs Inlout Income Expendlture Unr8strictèd fund$ General Funds 430,350 496,469 1434,5011 1169,9471 322,371 Restri$d funds Zambia Mozambique 39,968 567,882 413,847 1563.7661 IS18.3741 S6,596 114,351 99.680 9.824 39,968 981,729 11.082,1401 169,947 109,$04 Total of funds 470,318 1,478,198 11,516,641> 431,875 Page 31
VILLAGE WATER LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 16. Statement of funds Icontinuedl Statement of funds - prior yèar 88lènce al 31 December 2024 Balance al l January 2024 Transle in/oul Income Exp8ndilure Unrestrlcted funds General Funds- all funds 377,027 468, 539 (400,479J (74, 73T) 430,350 Restri¢t&d funds Zambia Mozambique 50,000 15,000 585, 891 633, 878 (595,923) (663, 615) 39.968 14. 737 65.(XX7 1,219 769 (1, 259, 538? 14. 737 39,968 Total of funds 442.027 1, 688.308 11, 660,017) 470,318 17. Summary of funds Summary offunds- current year Balance at 31 Decombor 2025 Balance at 1 January 2025 Transfers Inlout Income Expgnditure General funds Reslricled funds 430,350 39,968 496,469 1434,5011 {169,9471 981,729 11,082,140> 169,947 322.371 109.504 470,318 1,478.198 11,516,641> 431.875 Page 32
VILLAGE WATER LIMITED {A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 17. Sumfflary offunds Icontinuedl Summary offunds- prloryear Balance al 31 December 2024 Balance al l January 2024 Transfe in/oul Income Expenditu General funds Restricted funds 377,027 65,000 468,539 (400,479) 1,279, 769 (1,259,538) (14, 737) 14, 737 430.350 39,968 442.027 1.688,308 (7,660,Ot 7) 470.318 In accordance with a stsnding 8oard resolution lo support expendrture in Africa with unrestricted funds and maintain a positive balance on reslricled balance, unreslricled funds of £169,947 12024." £14,737) were tranSferd lo restricted funds. 18. Analysis of n8t assets between funds Analysls of net assets between funds - current year Restrlcted Unrestrlcted funds funds 2025 2025 Total funds 2025 Tangible fixed assets Intangible fixed assets Current a55els Creditors due within one year 1,451 1.451 5,760 5,760 426,817 536,321 1111,6571 {111.6571 109,504 Totsl 109,504 322.371 431,875 Page 33
VILLAGE WATER LIMITED IA company limitgd by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 18. Analysis of net assets betsveen funds Icontinuedl Analysis of ngt assets batwgen funds - prior year Reslricl&d Unr8slricled funds lunds 2024 2024 Total funds 2024 Tangible fixed a55els CUrn1 assets Creditors due within one ygar 2,049 439.508 (11,2071 2.049 479.476 111,207) 39,968 Total 39,968 430.350 470,378 19. Reconclllatlon of net movement in funds to net cash flow from oporating activities 2025 2024 Nel incomelexpendilure for the year las per Stslemenl of Finan¢ial A¢livi11gsI 138,4431 28.292 Adjustments for: Depreciation charges Amortisalion charges Bank interest received Decreasellincreasel in debtor5 Increase in creditors 1,197 2.085 15,8431 2,793 100,450 (10, 136) (114. 726) 2,936 Net cash providod byl{used in) operating actlvities 61,594 (91, 549) 20. Anatysls of cash and cash oquivalents 2025 2024 Cash in hand 417,763 358, 125 Total cash and ¢a$h gquivalonts 417,763 358, 125 Page 34
VILLAGE WATER LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 21. Analy$l$ of Changes in net debt A11 January 2025 Cash flows At31 De¢¢mber 2025 Cash al bank and in hand 358,125 59,638 417,783 358,125 59,638 417,763 22. Pension commitments The chartsble Company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the chanlable company lo the scheme and amounted to £21,13312024. £20,952). Contributions totslling £2.862 12024.. £3.5121 were payable lo the scheme al the end of the year and are included in other payables. 23. Op¥ratlng lèase commltments Al 31 December 2025 the Company had commitments to make future minimum lease poyment5 under non-cancellable operating leases as follows.. 2025 2024 Not later than 1 year 4,510 Company limited by guarantee The ¢ompany is a charitable company limited by guarantee and consequently not have share capital. In the ev&nt that the charitable company enters into liquidation, each member of the charitable company agrees lo contribute an arnounl not exceeding £1 towards costs of the dissolution. and liabilities of the charitable company. 25. Rglatod party transactlons The charitable company works in partnership wth Independent local charities Empowered Communities H@Iping others (ECHOI in Zambia WATSAN Mozambique in Mozambique, who Sha a common Pufpose. All partners receive funding for their charitable objectives from Village Water and from other onois. During the year, the charrtable company remitted £1,096,080 12024.. £1,246,823) lo these partners. Page 35
VILLAGE WATER LIMITED (A company Ilmlt•d by guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEM8ER 2026 26. Events after the reportlng perlod There have been no significant events beeen the ygar end and the date of approval of these financial slalements which would require a change lo, or disclosure in the financial stslemenls. Page 36