goodweave GOODWEAVE UK (A company limited by guarantee) REPORT & FINANCIAL STATEMENTS For the Year Ended 31st December 2025 Charity Registration No: 1139218 Company Registration No: 4210546 (England & Wales)
GOODWEAVE UK (A Company Limited by Guarantee) THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 315f DECEMBER 2025 CONTENTS PAGE Legal and Administrative Information Report of Directors Independent Examiner's Report ststement of Financial Activities Balance Sheet 10 Statement of Cash Flows 11 Notes forming part of the Financial Statements 12-15 GOODWEAVE UK Page2of15 Financial Statements 2025
GOODWEAVE UK (A Company Limited by Guarantee) The trustees of the charity present their report and financial statements for the year ended 31st December 2025. The accounts have been prepared in accordance with the accounting policies set out in Note I to the accounts and comply with the company's Memorandum and Articles of Association, the Companies Act 2006 and the 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). REFERENCE AND ADMINISTRATIVE INFORMATION LEGAL STATUS Private company limited by guarantee exempt under Section 30. REGIsfERED OFFICE 55 Stoneydeep Twickenham Road Teddington Middlesex TWII 8BL OPERATIONAL ADDRESS 55 Stoneydeep Twickenham Road Teddington Middlesex TWII 8BH DIREcfoRS David Ould (Chair) Amanda Berlan Jonathan Blagbrough Kunera Moore- Korthals Altes Terry Hudghton COMPANY SECREfARY David Ould INDEPENDENT EXAMINER John Mccullagh 39 The Farthings Kingston Upon Thames i(r2 7wr BANKERS The Co-operative Bank plc PO Box 101 l Balloon Street Manchester M60 4EP GOODWEAVE UK Page3of15 Financial Statements 2025
GOODWEAVE UK (A Company Limited by Guarantee) DIREcfoRS' REPORT GOVERNANCE Governing Document The organisation is a charity, registered on 29th November 2010, and non-profit making company limited by guarant, incortx)rated on 3rd May 2001. The company was established under a Memorandum of Association, which established the objects and powers of the company and is governed 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 tx)verty suffering and distress in any part of the world; and To promote research into and education concerning the causes and effects of poverty particularly (without prejudi to that generality) in relation to the conduct of business and to the conditions of employment (including self-employment) of poor people in any part of the world, and to publish the useful results of that research. In furtherance of these objects the organisation arts as the UK regional office of Goodweave International, whose aims are: to eradicate illegal child labour in the carpet industry and such other products as certified by the G(xKIWeave label; to provide children with concrete opportunities for education, vocational training, and other means for 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 industry can become a model for providing a living wage for skilled artisans and their families and for producing carpets using environmentally sound praCtiS. iv) Goodweave UK has exclusive licensing rights from Goodweave International (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 Gojdweave concept on the terms and conditions set out in the LinCe Agreement. ststement of Directors. Responsibilities Company Law requires the directors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the company as at the balance sht date and of its incoming resources and application of resources, including income and expenditure for the financial year. In preparing those financial statements, the directors are required to follow best practice and: select suitable accounting policies and apply them consistently. observe the methods and principles in the Charities SORP (FRS 102). GOODWEAVE UK Page4of15 Financial Statements 2025
GOODWEAVE UK (A Company Limited by Guarantee) DIREcfoRS' REPORT (continued) make judgements and estimates that are reasonable and prudent. prepare the accounts on the going concern 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 statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for tsking 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 *t out on page 3. The Directors are selected by the Board in the light of their knowledge and experience of the issues on which Goodweave UK works. In accordance with company law, as the company's directors, we certify that: so far as we are aware, there is no relevant audit information of which the company's independent examiner is unaware; and as the directors of the company, we have taken all steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to estsblish that the company's independent examiner is aware of that information. The Charities Activities and Achievements In 2025 marketing for Goodweave UK continued to be managed by Goodweave International (GWI), employing a part-time UK-based consultant to handle regular contacts with the liCensS in the UK. The consultancy was ended in June and since then marketing is managed directly by the USA office. The total UK licence fees in 2025 were £54,692 of which £31,251 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 an increase of 6.6 % over 2024 reflecting an improvement in the UK carpet industry compared to the low levels of the previous year. Goodweave has 19 licensed importers in the UK; two new carpet licensees were signed in the UK in 2025 but this was offset by the termination of four licensees. In then period 2023-2025, GWI and its associates worldwide freed 1,511 children from child labour and supported education for approximately 63,000 children. It currently works with 179 importers from around the world to monitor their supply chains. More than 146,000 adults worked on sites licensed and inspected by Goodweave International in Bangladesh, India, and Nepal in 2025. Goodweave has company partners/licensees in 23 countries and programmes in India, Nepal, and Bangladesh. We currently work in the rug, home textile, apparel, and fashion jewellery sectors, as well as running capacity building projects in additional sectors. GWI has gradually promoted the Goodweave methodology more widely and in 2025 we continued the trial of our inspection and monitoring processes in the Bangladesh garment industry. GOODWEAVE UK Page5 of15 Financial Statements 2025
GOODWEAVE UK (A Company Limited by Guarantee) DIREcfoRS' REPORT (continued) In 2025 Traid made further grant of £47,982 towards the costs of a GWI project in India and Nepal to"Reduce Inequality and Child Labour in Textile Worker Communities in India and Nepal" Traid also paid the final instalment of £12,000 for a similar grant in 2024. Financial Review The Directors of Goodweave UK report a net deficit of £7,729 for the period under review. At the year~end there was a totsl reserve of £4,699. all the reserves are unrestritted. Details of the major items on the balance sht can be found in the notes to the accounts. The fluttuations in debtors and creditors year on year are simply the result of the timing of receipts and payments around the year end. Reserves and Risk Management The trustees have agreed that Goodweave UK can continue its operations and carry out its charitable activities with minimal reserves and as a result the reserves will be kept at a basic level during 2026. The trustees are confident that, because of the current methods of operation, this policy does not create any significant risk for the charity or its beneficiaries. The trust5 regularly examine the major risks that the charity faces and seeks to control these risks to mitigate any impact they may have on the charity. 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 creditors. Public Benefit ststement Directors of a charity have a duty to report in their annual report on their charity's public benefit. The Directors have concluded that the section above on"Activities and Achievements" demonstrates that Goodweave UK'S work benefits a wide range of people and organisations in both the UK and South Asia and as a result: the aims of the charity continue to be charitable. the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay and; there is no detriment or harm arising from the aims or activities. Fundraising Statement The trUStS 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 activity with the general public is limited to a donation button on the website and links to this from social information platforms. No complaints about such attivity were received by the charity during 2025. GOODWEAVE UK Page6of15 Financial Statcmcnts 2025
GOODWEAVE UK (A Company Limited by Guarantee) DIRECTORS, REPORT (continued) Independent Examiner John Mccullaah carrled out the Independent Examination of the Company. In accordance with Settion 485 of the Companies Att 2006, a resolution oroposino the re-apwintment of Mr John Mccullagh as independent examiner will be put to first Board Meeting following the annual general meetino. Approved by the Board on the Iith August 2026 and signed on its behalf by: David Ould Terry H hton CIOODWF.A VE LJK Pc2gL7 of15 FinanLial Statemeiit% 20". i
INDEPENDENT EXAMINER'S REPORT TO THE DIREcfoRS OF GOODWEAVE UK LTD I report on the financial statements of Goodweave UK Limited for the year ended 31st December 2025 set out on pages 9 - 11 and notes to the accounts on pages 12 to 15. These financial statements have been prepared in accordance with the Charities SORP (FRS 102) under the historical cost convention and the accounting policies set out therein. This report is made solely to the charity's trustees, 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 state to the charity's trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the extent permitted by law, I do not accept or assume responsibility to anyone other than the charitable company and its trUStS as a body, for my audit work, for this report, or for the opinions I have formed. Respective responsibilities of directors and independent examiner As described on page 4 the company's directors are responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom accounting standards. My responsibility is to examine the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Standards. I report to you my opinion as to whether the financial ststements give a true and fair view and are properly prepared in accordance with Companies Act 2006. 1 also report to you if, in my opinion, the Report of the Directors is not consistent with the financial ststements, if the company has not kept proper accounting records, if I have not received all the information and explanations I require for the audit, or if information 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 conducted in accordance 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 includes 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 company's Clrcumstsns, consistently applied and adequately disclosed. I planned and performed the examination so as to obtain all the information 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 misstatement, whether caused by fraud or other irregularity or error. In forming my opinion, I also evaluated adequately the presentation of information in the financial statements. Opinion In my opinion the financial statements give a true and fair view of the company's affairs as at 31st December 2025 and of the surplus of incoming resources over resources expended for the year then ended and have been properly prepared in accordance with the Company's Act 2006 and principles of the Charities SORP (FRS 102). Date: If A_ John Mccullagh GOODWEAVE UK Page8of15 Financial Statements 2025
GOODWEAVE UK (A Company Limited by Guarantee) ststement of Financial Activities (Including Income & Expenditure Account) For the year ended 31st December 2025 2025 Restricted Funds £ 2024 Total Funds Notes Unrestricted Funds £ Total Funds £ In me Endowments from Charita le Activitie Grants Donations Licence Fees Sundry Income Gift Aid Bank Interest Total Incoming Resources 59,982 2,000 54,692 2,280 59,982 4,329 54,692 2,280 31 47 48,000 1,728 51,290 1,473 100 95 2,329 31 47 2,407 118,954 121,361 102,686 Ex nditure on Charitable Artivities Direct Objectives Grants Management & Admin. Total Resources Expended 9,359 56,972 62,623 66,331 62,623 136 52,763 48,500 128 136 9,495 119,595 129,090 101,391 Net income (expenditure) 641 Balance at l Jan 2025 11,787 641 12,428 11,133 Balance at 31 Dec 2025 4,699 4,699 12,428 GOODWEAVE UK Page9of15 Financial Statements 2025
GOODWEAVE UK (A Company Limited by Guarantee) Balance Sheet as at 31st December 2025 Notes 2025 2024 CURRENT ASSETS Debtors and Prepayments Cash at Bank and in hand 48,415 37,302 58,977 54,378 LIABIUTIES Amounts falling due within one year (54,278) (41,950) Net Current Assets 4,699 12,428 FUNDS Unrestricted Funds General Restricted Funds 4,699 11,787 641 12,428 4,699 The directors are satisfied that the company is entitled to exemotion from the Drovisions of tDa_ Companies Att 2006 (the Att) relating to the audit of the financial statements for the year by virtue of section 477, and that no member or members have requested an audit pursuant to settion 476 of the Att. The directors acknowledge their SponsIbl11"eS for complying with the reqU1ments of the Art with respect to accounting records and the preparation of financial statements These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies, regime. The Board of Directors approved these accounts on the Ilth of August 2026. hJo.11 David Ould Direttor Terry H ghton Director C7C)ODWEA VE UK Page loot li Financial Stateinents ?02)
GOODWEAVE UK (A Company Limited by Guarantee) Statement of Cash Flow at 31st December 2025 Total Funds Prior Year Funds Note Cash Flows from Operating Activities Interest (6,561) 47 2,765 95 Table 9 Change in cash in 2025 Cash at l January Cash at 31 December 17,076 10,562 14,216 17,076 GOODWEAVE UK Pagellof15 Financial Statcinents 2025
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS For the Year Ended 31st December 2025 l) Accounting policies a) Basis of preparation The financial statements have bn prepared under the historical cost convention, modified to include the revaluation of certain fixed assets, and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2008) and the Companies Act 2006. These accounts are the accounts of Goodweave UK These accounts have bn prepared on an accruals basis and include income and expenditure as they are earned or incurred, rather than as cash is received or paid. The recommendations of the Statement of Recommended Prattice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 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 concern At the time of approving the accounts, the TrUStS have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the accounts. b) Fund accounting The company's unrestritted fund consists of funds, which the company may use for its purposes at its discretion. The company's restricted funds are those where the licensee/donor has imposed restrittions on the use of the funds, which are legally binding. c) Voluntary income All voluntary income is included upon receipt. Grants re1vable 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 charity. Where applicable, these costs have been treated as direct charitable expenditure. GOODWEAVE UK Page12of15 Financial Statemenls 2025
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2025 2. Licence Fees: Importers must pay a fee to be able to use the trademarked Goodweave label and logo. 57 % of the f is sent to the Goodweave office in the relevant producer country to fund random inspections, and welfare, education and rehabilitation activities. 43 % contributes to promotion of the Goodweave mark and aims in the UK and internationally. Licensed importers must report on their imports and pay the licence fee within 30 days of each quarter day (March 31st June 30th September 30th December 31st). Accounting is made for the quarter in which the licence f is, or should have been, received for imports in the previous quarter. Estimates of outstanding payments have bn 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 excluding VAT = £36,413 £1,914 of outstsnding lince fee were written off in 2025, following the bankruptcy of one licens. 3. Grants Received: £12,000 received from Traid as the final payment of a £60,000 grant towards the costs of a project: "Reducing Inequality and Child Labour in Textile Worker Communities in India and Nepal - l July 2024 - 30 June 2025" £47,982 received from Traid as the first payment of a £60,000 grant towards the costs of a project: "Reducing Inequality and Child Labour in Textile Worker Communities in India and Nepal Phase 2- 1 August 2025- 31 July 2026" £641 carried forward as Restricted Funds at the end of 2024 were transferred to GWI in 2025 to support work carried out by GWI on UK marketing. 4. Donations Received: Donations received included: Wyndham Charitable Trust = £1,000 5. Marketing Partner/Sponsor Payments Receivable: Income from marketing partner/sponsor = £2,280 (£1,520 receivable at the year-end) GOODWEAVE UK Page 13of15 Financial Statements 2025
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2025 6. Direct Objectives Item of Expenditure Unrestricted Restricted Total (£) (£) (£) Transfer of licence fees to Goodweave India/Nepal Marketing and Licensing Support to GWI Management & Administration Tota I 31,251 25,721 62,623 31,251 25,721 71,982 136 129,090 9,359 136 9,495 119,595 7. Liabilities 2025 (£) 23,567 19,197 2024 (£) 17,534 14,416 500 Licence payments to Nepal/India Marketing Payments to GWI Donation for GWI VAT Payment Tota I 54,278 41,950 8. Debtors Item 2025 (£) 46,591 1,824 2024 (£) 36,822 380 100 37,302 Licence fees Private Label FS Gift Aid 48,415 GOODWEAVE UK Page 14of15 Financial Statements 2025
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2025 9. Reconciliation of Net Income/(Expenditure) to Operating Activity Net Cash Flow 2025 2024 Net Income/ Ex Ad'ustments for: Interest Increase /Decrease in Debtors Increase/ Decrease in Creditors Net Cash Used in O eratin Activities enditure for 2025 as er the SOFA 47 95 10. Share Capital: The company is limited by guarantee and does not have share capital. 11. Remuneration of Directors: No directors received any remuneration or repayment of expenses in the year. 12. Small Company Exemptions: "These financial statements have bn prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and with the Financial Retx)rting Standard for Smaller Entities (effective April 2008). For the financial year ended 31 t)ecember 2025 the company was entitled to exemption from audit under section 477 Companies Act 2006. and no notice has been 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 Att 2006 relating to financial statements, so far as applicable to the company." GOODWEA VE UK Page 15of15 Financial Statements 2025