goodweave@ GOODWEAVE UK (A company limited by guarantee) REPORT & FINANCIAL sfATEMENTS For the Year Ended 31st December 2024 Charity Registration No: 1139218 Company Registration No: 4210546 (England & Wales)
GOODWEAVE UK (A Company Limited by Guarantee) THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31sr DECEMBER 2024 CONTENTS PAGE Legal and Administrative Infonnation Report of Directors Independent Examinerfs Report ststement of Financial Activities Balan Sheet 10 Statement of Cash Flows 11 Notes forming part of the Financial Slatements 12-15 PC20f15 Financial sthtCmts 2024 GC)ODWEAVE UK
GOODWEAVE UK (A Company Limited by Guarantee) The trustees of the charity present their report and financial statements for the year ended 31st December 2024. The accounts have been prepared in accordan with the accounting policies set out in Note I to the accounts and comply with the companWs Memorandum and Articles of Association, the Companies Act 2006 and the Ststement of Recommended Prattl applicable to charities preparing their accounts in accordance with the Financial Reporting stsndard applicable in the UK and Republic of Ireland (FRS 102). REFERENCE AND ADMINisfRATIVE INFORMATION LEGAL StATUS Private company limited by guardntee exempt under Section 30. REGIRED OFFICE 7 Manor Road Teddington Middlesex TWII 8BH OPERATIONAL ADDRESS 7 Manor Road Teddington Middlesex TWII 8BH DIREcfoRS David Ould (Chair) Amanda Berlan Jonathan Blagbrough Kunera Moore- Korthals Altes Terry Hudghton COMPANY SECREfARY David Ould INDEPENDEPtr EXAMINER John Mccullagh 39 The Farthings Kingston Upon Thames Icr2 7wr BANKERS The Co-operdtive Bank plc PO Box 101 l Balloon Street Manchester M60 4EP Page3 of15 Financial Stat¢m¢nts 2024 GOODWEAVE UK
GOODWEAVE UK (A Company Limited by Guarantee) DIREcfoRS' REPORT GOVERNANCE Governing Document The oryanisation is a charity, registered on 29th November 2010, and non-profit making company limited by guarantee, incorporated on 3° May 2001. The company was established under a Memorandum of Association, whith established the objects and powers of the company and is govemed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1. Objectives The Goodweave initiative has two objects: To relieve poverty suffering and distress in any part of the wortd; and To promote research into and education conceming the causes and effects of povety particularfy (without prejudice to that generality) in relation to the condurt of business and to the conditions of employment (including self£mployrnent) of poor people in any part of the world, and to publish the useful results of that research. In furtherance of these objects the oryanisation acts as the UK regional office of Goodweave Intsrnational, whose aims are: to eradicate illegal child labour in the Ca)et industy and such other produtts as certified by the Goodweave label; to provide children with concrete opportunities for education, vocational InIng1 and other means ft)r preparing to mt the future with hope; to stimulate the employment of adults, so parents can support their families adequately; to facilitate development programmes to improve the terms and conditions of employment for adult workers in the carpet and other industries with similar employment issues, consistent with internationally recognised labour standards. so that the industy can become a model for providing a living wage for skilled artisans and their families and for produang carpets using environmentslly sound prattls. Goodweave UK has exclusive licensing rights from Goodweave Intemational (the holder of the trademark) to the Goodweave label in the United Kingdom and agrees to grant importers a licence to use the Goodweave label to market carpets, rugs and other products manufactured according to the Goodweave concept on the tenns and conditions set out in the Licen Agreement. iv) ststement of Directors, Responsibillties Company Law requires the directors to prepare financial statements ft)r each financial year, which give a true and fair view of the state of affair5 of the company as at the balance sheet dats and of its incoming resources and application of resources, including income and expenditure for the financial year. In preparing tho* flnanaal statements. the directors a required to follow best practi and: select suitable accounting policies and apply them consistentlyi obsepie the meth(xls and principle5 in the Charities SORP (FRS 102); Page4 of15 GOODWEAVE UK Financial Stat¢m¢nts 2024
GOODWEAVE UK (A Company Limited by Guarantee) DIREcfoRS' REPORT (continued) make judgements and estimates that a reasonable and prudent; prepare the accounts on the going conrn basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial ststements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hen for taking reasonable steps for the prevention and detection of fraud or other irregularities. Members of the Management Committee Members of the Management Committee, who are Directors for the purpose of company law, who served during the financial year and up to the date of this report are set out on page 3. The Dirertors are selected by the Board in the light of their knowledge and experien of the issues on which Goodweave UK W0S. In accordance with company law, as the companvs directors, we certify that: so far as we are aware, there is no relevant audit infonnation of which the companys independent examiner is unaware; and as the directors of the companyi we have tsken all steps that we ought to have tsken in order to make ourselves awa of any relevant audit information and to establish that the companws independent examiner is aware of that information. The Charities ActivitiÉs and Achievements In 2024 mar1(eting for Goodweave UK continued to be managed by Goodweave International (GWI), employing a part-time UK-based consultant to handle regular contscts with the licensees in the UK. The totsl UK lince fees in 2024 We £51,290 of which £29,307 were used for education, health and rehabilitation work with children and their families by our partners in the carpet-producing areas of India and Nepal. This was a decrease of 26% over 2023 and a reflection of a general decrease in hand made carpet sales in the UK and worldwide. Goodweave signed t0 new carpet licensees in the UK in 2024 but this was off*t by the tennination of thr licensees. To date, GWI and its associates worldwide have rescued more than 10,000 children from chlld labour and supported education for some 100,O(10 children. It currently works with 180 importers from around the world tr) monitor their supply chains. More than 125,000 adults worked on some 6,000 Sbtes linSed and inspected by GocLIWeave Intemational in Bangladesh, India, and Nepal in 2024. Goodweave has company partnersllicensees in more than 20 countries and programmes in India, Nepal, Pakistsn and Bangladesh. We currently work in the rugi home textile, apparel, fashion jewellery, and brick sectors, as well as running capacity building projects in additional sectors. G has gradually promoted the Goodweave methodology more widely and in 2024 we continued the trial of our inspection arKI monitoring processes in the Bangladesh gannent industry. GOODWEAVE UK Page5 of15 Financial Statements 2024
GOODWEAVE UK (A Company Limited by Guarantee) DIRECTORS. REPORT (continued) In 2024 Traid made a grant of £60,000 towards the costs of a one year GWI projett in India and Nepal to Reduce Inequality and Child Labour in Textile Worker Communities in India and Nepal. £48,000 of this grant was made at the beginning of the project and the remaining £12,000 is due on completion. Financial Review The Dirertors of Goodweave UK report a net sUlUS of £1,295 for the period under review. At the year-end there was a total reserve of £12,428; made up of £11,787 of unrestricted funds and £641 of restricted funds. Detsils of the major items on the balance sheet can be found in the notes to the accounts. The fluctuations in debtors and creditors year on year are simply the result of the timing of receipts and payments around the year end. ReseNes and Risk Management The trustees have agreed that Goodweave UK can continue its operations and cary out its charitable activities with minimal reser4es and as a result the reserves will be kept at a basic level during 2025. The trustees are confident tha¢ because of the current methods of operation, this policy does not create any significant risk for the charity or its beneficiaries. The trustees regularly examine the major risks that the charity faces and seeks to control these risks to mitigate any impact they may have on the drity. The majority of GWUK income comes from licence payments made in arrears and non-payment is an obvious risk. However, in practice these fees are simply passed through the GWUK accounts when received and so any loss to GWUK debtors will be offset by the same reduction in creditor5. Public Benefit ststement Directors of a charity have a duty to report in their annual report on their charivs public benefit. The Directors have concluded that the section above on-Attivities and Achievements" demonstrates that Goodweave UK'S wort benefits a wide range of people and organisations in both the UK and South Asia and as a result: the alms of the chaiity continue to be charitable; the benefits are for the public, are not unreasonabty restricted in any way and certainly not by abilty to pay and. there is no detiiment or harm arising from the aims or attivities. Fundraising Statement The trustees have taken note of Sections 13 and 14 of the Charities (Protection and Social Investment) Act of 2016. Goodweave UK does not use professional fundraisers. Fundraising attivity with the general public is limited to a donation button on the website and links to this from social information platfonns. No complaints about such activity We received by the charity during 2024. GOODWEAVEUK Page6 of15 Financial sents 2024
GOODWEAVE UK (A Company Limited by Guarantee) DIREcfoRS' REPORT (continued) Independent Examiner John Mccullagh carried out the Independent Examination of the Company. In accordance with Section 485 of the Companies Art 2006, a resolution proposing the re-appointment of Mr John Mccullagh as independent examiner will be put to first Board Meeting following the annual general meeting. Approved by the Board on the 277 May 2025 and signed on its behalf by: David Ould Tery Hu FinaThcia] Statements 2024 GOODWEAVE UK Page 7 of15
INDEPENDENT EXAMINER'S REPORT TO THE DIREcfoRS OF GOODWEAVE UK LTD I report on the financial statements of Goodweave UK Limtted for the year ended 31# December 2024 set out on pages 9 - 11 and notes to the accounts on pages 12 to 15. These financial ststements have been prepared in accordance with the Charities SORP (FRS 102) under the historical cost convention arKI the accounting policies set out theIn. This report is made solety to the charivs tnjstees, as a body, in accordance with Section 145 of the Charities Act 2011 and regulations made under that Act. My work has been undertaken so that I might stste to the charit¢s trustees those matters I am required to state to them in an independent examinerfs report and for no other purpose. To the extent pennitted by law, I do not accept or assume responsibility to anyone other than the charitsble company and its trustees as a bodyi for my audit worK for this report, or for the opinions I have formed. Respective responslbilities of directors and independent examiner As described on page 4 the company's directors are responsible for the preparation of the financlal statements in accordance with applicable law and United langdom accounting stsndards. My responsibility is to examine the financial ststements in accordance with relevant legal and regulatory requirements and United lfjngdom Stsndards. I report to you my opinion as to whether the financial statements give a te and fair view and are properly prepared in accordance with Companies Att 2006. 1 also report to you if, in my opinion, the Report of the Directors is not consistent with the financial statements, if the company has not kept proper accounting records, if I have not received all the infonnation and explanations I require for the audit, or if infonnation specified by law regarding directors, remunerations with the company is not disclosed. I read the Report of the Directors and consider the implications for my report, if I become aware of any apparent misstatement within it. Basis of Opinion My work was condurted in accordan with the general directions given by the Charity Commission. An examination includes a review, on a test basis, of evidence relevant to the amount and disclosures in the financial statements. It also indudes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the companVs circumstances, consistently applied and adequately disc105ed. I planned and perfomied the examination so as to obtain all the infonnation and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements are free from misstatemenL whether caused by frdud or other irregularity or error. In formlng my opinion, l also evaluated adequately the presentation of information in the financlal statements. Opinion In my opinion the financial statements give a true and fair view of the companys affairs as at 31 December 2024 and of the surplus of incoming reSoUrS over resources expended for the year then ended and have been prope prepared in accordance with the Companws Att 2006 and principle5 of the Charities SORP (FRS 102). Date: lohn Mccullagh GOODWEAVE UK Pag¢8 of IS Financial Statements 2024
GOODWEAVE UK (A Company Limited by Guarantee) Statement of Financial Activities (Including Income & Expenditure Account) For the year ended 31st December 2024 2024 Restricted Funds £ 2023 Total Total Funds £ Funds Notes Unrestricted Funds £ In me and Endowments from hari l Activiti Grants Donations Licence Fees Sundry Income Gift Aid Bank Interest Total Incoming R&sources 48,000 400 51,290 1,473 100 48,000 1,728 51,290 1,473 100 95 1,328 7,492 69,060 1,363 825 10 95 IB23 101,263 102,686 78,750 iture on Ch Direct Objectives Grants Management & Admin. Total ReSoUrS Expended 52,763 48,500 52,763 48,500 128 70,423 10,172 97 128 128 101,263 101,391 80,692 Net income (expenditure) Balance at l Jan 2024 10,492 641 11,133 13,075 Balance at 31 Dec 2024 11,787 641 12,428 11,133 GOODWEAVE UK Pag¢9 of 15 Financ1 Statements 2024
GOODWEAVE UK (A Company Limited by Guarantee) Balance Sheet as at 31st December 2024 Notes 2024 2023 CURRENT ASSErs Debtors and Prepayments Cash at Bank and in hand 37,302 60,155 54,378 74,371 UABILrrIES Amounts falling due within one year (41,950) (63,238) Net Current Assets 12,428 11,133 FUNDS Unrestritted Funds General Restricted Funds 11,787 641 12,428 10,492 641 11,133 The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Att) relating to the audit of the flnancial statements for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Act. The directors acknowledge their responsibilities for complyÈng with the requirements of the Act with respect to accounting records and the preparation of financial statements These financial statements have bn prepared in accordan with the provisions applicable to companies subject to the small companies, regime. The Board of Directors approved these accounts on 27 May 2025. David Ould Director Tery Hu on Director GOODWEAVE UK Page 10 of15 Financial Statem¢nts 2024
GOODWEAVE UK (A Company Limited by Guarantee) Statement of Cash Flow at 31st December 2024 Totsl Funds Prior Year Funds Note Cash Flows from Operating Activities Interest 2,765 95 (13,208) 10 Table 9 Change in cash in 2024 Cash at l January Cash at 31 December 14,216 17,076 27,414 14,216 GOODWEAVEUK Page 11 of 15 Financial siaT¢ments 2024
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS For the Year Ended 31st December 2024 l) Accounting policies a) Basis of preparation The financial statements have bn prepared under the historical cost convention, modified to include the valUation of certain fixed assets, and in accordance with the Financial Reporting Stsndard for Smaller Entities (effective January 2008) and the Companies Act 2006. These accounts are the accounts of C)OdWeave UK These accounts have bn prepared on an accruals basis and include income and expenditure as they are eamed or incurred. rather than as cash is received or paid. The recommendations of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019), have been followed in the preparation of these accounts. Goodweave UK is a Public Benefit Entity as defined by FRS 102. iv) b) Going cOnrn At the time of appmving the accounts, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existen for the foreseeable future. Thus, the Trustees continue to adopt the going conrn basis of accounting in preparing the accounts. b) Fund accounting The companws unrestricted fvnd consists of funds, which the company may use for its purposes at its discretion. The companvs restricted ndS are those where the linsee/donOr has imposed restrictions on the use of the funds, which are legally binding. c) Voluntsry income All voluntsry income is induded upon receipt. Grants receivable are credited to income immediately upon receipt. d) Investment income Credit is tsken for interest when the interest falls due for payment. e) Administration expenditure Administration expenditure comprises costs incurred in running the chary. Where applicable, these costs have bn treated as dirert charitsble expenditure. GOODWEAVE UK P88e 12 of15 Financial Statrtllents 2024
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2024 2. Licence Fees: Importers must pay a fee to be able to use the trademarked Goodweave label and logo. 57 % of the fee is sent to the Goodweave Offi in the relevant producer county to fund random inspections, and welfare, education and rehabilitation activities. 43 % contributes to promotion of the Goodweave mark and aims in the UK and intemationally. LInsed importer5 must report on their imports and pay the licence f within 30 days of each quarter day (March 31st June 30th, September 30th, December 31. Accounting is made for the quarter in which the lince fee is, or should have bn, received for imports in the pVIouS quarter. Estimates of outstanding payments have been induded in these accounts because they are a significant part of total assets and of the reserves. Licence fee payments owed to GWUK at year end exduding VAT - £30,685 3. Grants Received: £48,000 received from Traid as the first payment of a £60,000 grant towards the costs of a projett: 'Reducing Inequality and Child Labour in Textile Worker Communities in India and Nepal - l July 2024 - 30 June 2025". 4. Donations Received: Donations received included: Wyndham Charitsble Trust = £l,O(Ki 5. Marketing Parknerlsponsor Payments Receivable: Income from marketing partrerlsp)nsor - £1,473 (£316 receivable at the yearnd) GOODWEAVE UK Pagc 13 of 15 Financial Statemrnts 2024
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2024 6. Dirert objects.ves Item of Expenditure Unrestricted (£) Restricted Total (£) (£) Transfer of licence fees to Goodweave India/Nepal Marketing and Licensing 29,307 23,456 29,307 23,456 Support to GWI 48,500 48,500 Management & Administration Total 128 128 128 101,391 101,263 7. Liabilities 2024 (£) 17,534 14,416 500 2023 (£) 28,559 22,785 1,625 Licence payments to Nepal/India Marketing Payments to GWI Donation for GWI VAT Payment Total 41,950 63,238 8. Debtors Item 2024 (£) 36,822 380 100 37,302 2023 (£) 58,520 1,635 Licence fees Private Label Fees Gift Aid 60,155 GOODWEAVE UK Page 14of15 Financial Statements 2024
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2024 9. Reconciliation of Net Incomel(Expenditure) to Operating Activity Net Cash Flow 2024 2023 Net Income Ex nditure ustments for: Interest Increase Decrease in Debtors Increase/ Decrease in Creditors Net Cash Used in O ratin Activities for 2022 as r the SOFA 95 10 10. Share Capital: The company is limited by gUardnt and does not have share capitsl. 11. Remuneration of Directors: No directors received any remuneration or repayment of expenses in the year. 12. Small Company Exemptions: 'These financial statements have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Att 2006 and with the Financial Reporting Standard for Smaller Entities (effective April 2008). For the financial year ended 31 December 2024 the company was entided to exemption from audit under section 477 Companies Act 2006; and no notice has b&n deposited under section 476. The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 and for preparing financial statements 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 profit or loss 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 financial statements, so far as applicable to the company." GOODWEAVE UK Page 15 of 15 Financial Statements 2024