Trustees, Report & inancial Statements fashion& textile children trust, for the year ending June 2024 A Illellne lorlarndi88 slnco 1853 FASHION & TEKfiLE CHILDREN'S TRUST REFERENCE AND ADMINISTRATIVE DETAILS Name.. The Fashion & Textile Children's Trust Registered Charity Number. 257136 (England and Wale91 Principal Offict.. 44 Southampton Buildings, London WC2A 1AP E-mail.. Website.. Telephone.. anna@ftcl.org.uk www.ftcl.org.uk 0300-123-9002 1 M.. 07753 605367 Trustees 8t 30 June 2024". Mike Taylor, (Chair of Trustees) Commercial Director, Bntish Heart Foundation Mike Trotman. Ichair, Finance Committee) Former CFO Tom Dixon Group David Shepherd, (Cases CommStteel Former COO Trading, Arcadia Ryan Beckar, Managing Director. UK Vigual Immerslon Van855a Elias, (Cases Committee) Managlng Director, CVUK Robert Bready, Freelance Executive Con8ultanl Anne Secunda, Executive Consultant Phil Cooke, Fomer Chief Product Officer, River Island Alia Gerar (Cases Committeel, Head of Ecosystems, Rethinkx Andrew Woodward, Fomer Chief Marketing Officer, HUSH Ann Campbell, Director of Corp Affairs, Cotton Connect Chlef Executivè.. Anna Pangbouma Bankers.. Barclays Busines8 1 Sl Floor, 27 Soho Square London W10 3aR Solicitors.. FieldFisher Riverbank House 2, Swan Lane London EC4R 3rr Auditors.. Saffery LLP Westpoint Peterborough Business Park Lynch Wood Pelertorough PE2 6FZ Inv851ment Managers.. Qullter Cheviol Investsnent Management Senator House, 85 Queen Victoria Street, London, EC4V 4AB FASHION & TEXTILE CHILDREN'S TRUS[ CONTENTS Page Chairfs Statement Trustses, report Independent auditors, report 10-12 statement of financlal 8Ctlvities 13 Balance sheet 14 Notes to the financlal statements 15-26 Comparative statement of financial activiti88 27 FASHION & TEXTILE CHILDREN'S TRUST CHAIR'S STATEMENT FOR THE YEAR ENDED 30 JUNE 2024 l am delighted to introduce the Annual Report and Accounts for 2024, concluding the 170th year of our charity- In the last 12 months, FTCT has provided financial support totaling £409,040 in paymen18 to 849 children from families working in the British fashion and textile industry. These grants have been crucial for families facing significant financial hardship, often due lo unexpected life events such as bereavement, relationship breakdown, or sickness. Life Continued to be very challenging for families across the indu8try. Last year, we saw an increase in the number of families who needed help to sel up home after being Tehoused,. a situation increasingly linked to incidents of domestic abuse and relationship breakdown. We also saw an increase in the personal debt levels, while simultaneously seeing a drop in the average earnings of parents. Operating on a national sc81e, we are proud to be th8 only organisalion that is dedicated lo providing financial support for parents who work in the British fashion and textile industry and are uniquely placed to help those that are being hardest hit. However, this also goe9 hand-in-hand with support from the industry, which is vital.. we ¢an only continue lo provide our seNice with the investment of companies whose employees we support. Our Business Plan, whlch incorporates our Strategy to reach families in our sector, is available to view on our webslte. as cIKk Our Vl•lon.' We b&lleve no child should have lo IIv8 without the egsentsal items they need lo thrive. Our M1681on: To provide financial grants lo support the chlldren of UK fashion and lextlle families, improving their wellbeing. Our strategic direction is.. To take an innovative approach to extending th8 lifespan of the Charity and conb'nue to help familles cope during challenging times. Our thra8 key focus areas lo support our strategic dlrecb'on are.. Chlldren and Families, Financial Sustainabllity and Operational Excellence. The success of our strategy relles heavily on financial support from the industry. By end of our financial year 2026, we aim lo have awarded £2 million in grants over a fi've-year period, supporting 4,424 children. We are ambitsous in our goal lo raise £640,000 ir) donations, repre88ntr.ng a 90Ukn increase from our last strategic period. In the last financial year, followng the implementation of our fundraising Strategy, we 8uccessfvlly raised £175,364, marking a 60% increase from the previous year. While our fvndrai$ing strategy is bringing positive results, we are not complacent and recognise the continued need to build awareness of the charity across the sector to grow the number of companies we work with. Equally important is the retenllon of our valued and long-standing Partners. By working in partnership with FTCT, companies act as tha critical link, enabling FTCT to reach industry families who may have exhausted all other mean8 of 8UPPOrt. As custodi8n$ of the Charity, we are resolute in our aim lo act in the best interests of current and future families who may need our support. Every pound raised goes diTeclly towards the families we support, and every single grant awarded really does make a difference. Amber, a parent supported by an FTCT grant, reflected on the impact this had made.. 'Tf T appli6d, I W￿￿11 hAvs s+ill Str￿991t& to fiKd childr6￿ 6ltr*hss, ￿ b6d GtL. I would hthv6 pn456lf drtswwiK4 >Thtrr6 d6trt hsJl*h dull￿1￿4. L+ r8hll4 WAS lifo chawfjimfj.. I would like to extend my sincere Ihanks to the Board of Trustees for their invaluable support, expertiso and time that they commit to the Charity. lo the executsve and operative team for their hard work and commitment. Finally, to the growng number of companies in the British fashion and textile sector who have 8UPPOrted us in the last year and whom we are immensely proud to work with. Mike Taylor, Chair of Trustees Date. 30 January 2025 Page I FASHION & TEXTILE CHILDREN'S TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 30 JUNE 2024 The Trustees present their Teport along with the financial statements of the Charity for the year ended June 2024. The financ#al statements have been prepared in accordance with the accounting policies set out on pages 15 to 19 and comply wilh the Charity's Trust Deed and applicable18W. INTRODUCTION The Fashion & Textile Children's Trust IFTCTI 18 the only trade charity dedicated lo supporting the children of those working in the British fashion and texti18 industy. Financlal difficulties can affect anyone at any lime. regardless of their job. An unexpected change in Circumstances at home can suddenly make it impossible for a parent lo provide essential items for Ihelr child. From our daily Interaction$ wlth parents, we understand that economic strain not only impacts Childrtn's access to adequate clothing. bedrcom fumilure, and school essentials but also incfeases the stress on parenlg striving to meet their family's basic needs. The ongoing 'cost-of-lifa' ¢risis Can severely affect mental health.. as financial pressures intensify, the strain on mental wellbeing becomes more evident, leading lo anxiety, stress, and depression emerging as a result. These finan¢lal pressures at home can undoubtedly have an impact on a parenfs performance al work. FTCT is at the heart of the UK faghlon and texble sector, and the parents and Carers who work in this sector are ¢entral lo our day-to-day activities. Whether on the shop floor of a fashDn felailer. al a texti18 manufacturer, a distribution cenlre. or a textile care company. we strive lo build a reputation as a charity that listens, is empathetic, non-judgmental, kind, and fair. from the first enquiry through lo the outcome. As a small team, we lake immense pride in encouraging families lo take the fir81 step, always 'going the extra mile, throughout, working with each family on a ¢a$e-by-case basis to achieve a positive outcome. Our Horltsgfr: The Fashion & Textile Children's Trust was establi8hed in 1853 al the helght of a ￿brant and flourishlng British Silk and cotton weaving industry. Charles Dickens was the Chairman of Appeal in 1856 - in t¢xlay's tem)s, a '¢elebrity Ambassador. Over the last 170 years. the industry has changed over time, and in slep with this, FTCT has evolved alongside it. We now support children whose parents work in a wide range of fashion and lexlile relaled businesses, from warehouse to Shop floor, design room lo factory, we're hera for every parent who finds Ihemsalves unable lo provide essential items for their children. Initially staffed by Chief Executive Anna Pangbourne In 2009, there are now six tsam members In total. Royal Patronage The Fashion & Textile Children'8 Trust was extremely privileged and honoured to have had Such a long history of royal patronage from Her Majesty. Followng His Majesty The King's Accession, the Royal Household Is currently conducllng a review of all Royal Patronages including our own. Organlsatlonal Purpose: The sole purpose of our Charity Is to provide grants - a financial contributlon - to families who work. or have previously worked, in the British fashion and textile industry. Our grants are not a l¢)an and do not have to be re-paid by the parent or carer and similarly do not affect the benefits a parent receives. Additionally, there is no charge or membership fee lo a company who works in partnership with our Charity. Typically, our grants cover the cost of essential items and specialist items for their child lup to 18yr$l and is only considered when circumstances have changed al home or when ongoing situations, e.g. illnes5 or disability mean that a parent is unable lo afford the items their child needs. As part of the application process, we ask the parent to provide finanaal information, ensuring that we have a full understanding of home circumstances and that grants awarded are to those most in need. Once a grant is awarded, all receipts for grant items purchased must be retumed wilhin four weeks. Page 2 FASHION & TEKllLE CHILDREN'S TRUST TRUSTEES, REPORT {continued) FOR THE YEAR ENDED 30 JUNE 2024 Review of the Year- Stratsglc Actlvltles This year. we awarded £407,180 in grants to support 849 children, significantly enhanGlng Iheir opportunities and well-being. This represents an 11 D/0 in¢rease in new grants awarded and a 3 % rise in the number of children helped compared to last year. allowng us to reach even more children in need. The key focus of this year has been the continued implementation of our five-year Busines8 Plan 2021- 2028, alongside the four enabling strategi¢ projects. Our overall Strategic Direction18 to take an Innovative approach lo continue to help families cope during challanging times. Three straleglc aims have been devised to support our strategic dSreGb'on'. Children and Families We aim to grow the number of children we support lo extend the impact our grants give to the lives of UK children. To do this. w8 will maintain our grants awarded figure close to the amount given in the prevlous strategy period. Financial Sustainabllity We are ambitious in our fundraising targets and aim to fund the growth In ¢hildren 5UPPOrted with a higher proportion of fundraising Sncome, Safeguarding the Charity for future generations. Operational Excellence We are detemined to improve the level of service we deliver and aim lo modernise our processes by embracing digital transformation, through cloud-based services and automated procedures. For further Infomiation at*Jul our SlralegiG ObiKtives, During th8 thlrd y8ar ofour strategy, we have successfully undertaken the followng thrèe strategic projects.. Chlldr and Fami le8: Ongoing development of 8 digltal and more personalised appllcalion seTvl¢e for the families we supporL We are continuously enhancing our digital and personalised application service for the families we support through our Customer Relationship Management {CRMI system. This includes new automated email process that providas families with regular updates throughout their application Journey, as well as Qlear and easy-lo-follow guidance on our website. Additionally, the CRM enables us to gather kay slatlstrAI data, helpSng us better understand and addr88s the challenges our famili&s fa￿. Inan U8 We have continued to enhance our fundralsing strategy, 8uccessftJlly collaborating with an increasing number of partners lo boost sector-wde support. Our effortg span four main donor bases.. Corporate, Events, Individuals, and Trusts and Foundations, wth a primary focus on Corporates. We are proud to be partnering with 33 organizalions {up from 20 in 20221231, all of whom promot& our grants and contribute annual donations. Addllionally, we have strengthened our annual fundralsing campaigns.. the Ba¢k-to-School Campaign and the Winter Appeal. eratlonal Excellence: Thanks to the ongoing growth of our corporate partners and the resultlng ncrease in a steadier St￿aM of enquiries, we havi> been able to reduce the need to use social media adverhsing to boost enquiries when the pipeline is low. Our targeted messaging approach with our Partners has also led to improved conversion efticiencies. As we continue to develop our CRM processes, we expect further support for both our Grants and Fundraising fvnctlon8. Page 3 FASHION & TEXTILE CHILDREN'STRUST TRUSTEES. REPORT (continued) FOR THE YEAR ENDED 30 JUNE 2024 Grants Achlevement and Performance The table below presents the net amount of new grants approved in 202312024, after deducting refunds and cancellations of grants committed in previous years.. Ngw Grants roved 2023124 £139,634 £74,551 £44,565 £43,610 £33,860 £31,580 £13800 £12,460 £6,580 £6,540 .£407.,10.Q Approved 9/0 Total Numb6rof,. New case$ Need Financial Hardship Special Needs sep8ralionlDivorc8 Mental Health Housing Illness Bereavement Disability Domestic Abuse Redundancy -lots1 RgFJplents IN￿-, Beneficlarle8 36.980 314 166 93 70 57 71 24 25 15 14 10.94% 10.71 /0 8.32 % 10.950 8.360 2.83% 2.940 1.780 3.390 3.c￿° 1.62/0 1.61'/o 100% As shown in the table abov8 and illuslraled below, 79Oh of FTCT grants approved were for children affected by parentsl circumstances, such as financial hardshlp, redundancy, menlal health, domestic violence or bereavement lo support with essential ilams Such as clothing, school uniform, bedroom furniture, appliances and home items and more. 210/0 of FTCT grants were for children with special needs or disabillly. Typically, grants were for extra tuition, speech and language therapy, specialist equipment, leaming adaptations, occupational therapy, laptop8 to support learning and essential child access modifications lo the family hom&. FTCT conllnues to help families navigate cha118nging times. Using current nallonal statisN¢8 for th8 number of children Ilving in povety and the number of people employed by the sector, th1$ indicates we are only reaching a fraction of our potential beneficlary audience, meaning that the true number of benefi¢iarles eligible for our grants far exceeds the resour￿S we have avallable. By worklng in partnership with the geclor, we ensure we reach employee8 whose famill6s are facing financial hardship in our sector. Our grants can te awarded lo those who currently work in the industry or have previously worked within the last nine year9, provlding that they have worked for a minimum of one year. The ¢hildren in the family musl be aged be￿en o- 18 years. Grants typically provSded by FTCT include.. Essentlal Item3 Clothin and shoes in¢ s¢hool uniforms and PE Kit Children's bedroom furniture l Beddin White oods frid e, cooker and washin Essential household items Stud Essentials- Tablets l La to 8clall8t Itoms Mobili ment Senso Thera Res ite activities ecialist Glothin to machlne s elc. During the last 12 months, many families continue to bg impacted by the ¢ost-of-living crisis. A parent who was recently awarded a grant told FTCT.. 'W8 wwld liko tts +lfj￿￿k cv6ryowo a* this ohArity for the sMpptsY*, >X4 Ghildrew will Mot 40 Gold or ￿￿60￿Art￿b1s this wi¥rtrsr w6 f661 v6ry wpported, 111 the d6dicth+6d work awd pport +kbAt 6)065 iw+o +his Ghdrit¥ IS 9rGtttl4 thppr6Gia+ea. It roliGv6d +h6 pr6sSMf6 S￿r￿M￿al>l4 Clothi￿9 th& Childr6￿ in th6 Wlilt6r Page 4 FASHION & TEXTILE CHILDREN'S TRUST TRUSTEES, REPORT {contlnuedl FOR THE YEAR ENDED 30 JUNE 2024 The FTCT team and Board of Trustees remain committed lo signlficantSy increasing the number of children we a$$ist, to support families who work in our industy and as a result of our strdlegic direction. FTCT Fundrai8ing and Outreach Campaign 2023124 Promotion continued across the British fashion and textile sector with many of our long*stsblish8d industry partners in¢lLkding M&S, John Lewis Partn8rship, Boden and NEXT as well as textile care companies including CLEAN and Johnsons Hotd Linen. Our Working Together Agreement IwfA} provides a clear framework for all of our Partnerships and is tsvo fold.. asking companies to both promote our grants lo employees and invest in our seThi¢es. We are also delighted to be working in partnership with a growing portfolio of companies Including Ralph Lauren, New Look, All Saints, BTMA, Kannegie$ser. The Vvhite Company, Abraham Moon and Charles Trywhitt. We were delighted to work In partnership wlh fashion brand JustHype who donated 100 backpacks to families receiving a grant from FTCT, as part of our Back To School Campaign. Thls was the firsl pr¢xlucl partn8rshlp for FTCT. Our oonlinu6d charity partnership with UKFT (UK Fashion and Tèxtile As50cialionl has helped to raise further awareness and financial support. UKFT organised a Christmas Pnze Draw on behalf of FTCT, raising nearly £1,000. rfcT also presented at a members, conference and led a webinar lo highlight ways in which ¢ompanles can promote financlal wellbeing. Work also ¢oncluded on FTCTS first br8nd film FTCT, produced by Postcard Productions, who kindly offered their 5eryices pro bono. The film was en18red into the Charlty Film Awards and FTCT was dellghted lo be a finalist. The film is regularly used across our social media channels and web811e. We We￿ also plèased lo work in partnership with PureLondon, the UK'S largest fashlon tr8de sh¢JW. FTCT was represented in a panel discussion along9ide our invited Partners from The ￿lIe Company, Luxury Lockslitch and Boden lo discuss how leading fashion retallers are enhancing employee wellbelng, demonstrating the value of FTCT'S grant Support service. Stskeholder support.. We arè proud lo continue to be the official Drapers, Chadly Partner al the three Drapers Awards Ceremonies held throughout the year. Attended by neady 1,000 representaliveg from the 8ector, this Is a unique opportunity lo raise awafeness. fundraise and continue 10 Strengthen our ne￿ork. FTCT would like to thank Jill Geoghan, Editor for her ongoing Support. We are also delighted to have been selected as the chosen charity by the Master of the WorshlpfiJl Company of Launderers, Charlie Betteridge, lo whom we would like lo offer our sincere thanks. Page S FASHION & TEXTILE CHILDREN'S TRUST TRUSTEES. REPORT leontinuedl FOR THE YEAR ENDED 30 JUNE 2024 Net Fundraising.. £175.364 for 2023124. This Included amounts in the follomng groupings.. Donation8 Grou Sainsbu 's and FTCT Winter A £19.001 Next £18.001 M&S PLC £14.001 B&M. New Look. Ral h LaU￿n UK £9.001 Dra ers Awards, November 23 £8.001 All Saints, John Lewis, Jojo Maman Bebe, The Whlte Co, £4,001 TheD ers Co Nats'onal Laund Grou Salvation Anny, Clean Linen Services, other Drapers Awards (Sept 23 1 March 24 Inlefftavo Textiles Ltd BTMA, Christeyns UK Ltd, Jackson Workwear, K8nnegie5ser, Micronclean Ltd. Rowan Bentall Charitable Trust, The Society of Hospitsl Linen Servlces Luxury Lockslitch, TSA Conference Book Sale. UKFT Summer Rèception, Ralph Lauren Easter Fundraiser, Aberdeen Laundry, Sall$bury Trading. Johnsons Hotel Linen, CMS Social Impact Fund, Girbau UK Ltd, Back lo School Cam al n Winter A al and other. In £20,000 £19,000 £18 000 £14,000 £9.000 £8,000 eal £2,001 £4,000 £1.001 £2,000 £0 £1,000 Chang• to our Grants Pollcy regardlng flnanclal 8UPPOrt for employee8 who %￿rk in the gro¢ory 8￿t01 Our FTCT Grants Policy will soon undergo a signiflcant change. From 1 January 2025. financial support for employees within gr￿ery stores that sell Clothing wlll be diseonbnued, marking a shift in resource allocation. This strategic move is designed to optimise the distribution of our funds and ensure th& sustainability of our grant supwrt service. FTCT remains committed to a responsible transits'on, ènsuring grocery sector employees are inforned in advance and directed towards th8 appropriate trade charity and other available 8UPPOrt organisations. Publlc Bènoflt ststemfrnt The Trustees confimi that they have complled with the duty in 8eclion 4 of the Charities Act 2008 lo have dua regard to the Charity Commisslon's general guidance on public benefit, 'Charilies and Public Benefit,. Our Charitable objective8, as set out in our Trust Deed dated 1968, focus on the rellèf of poverty and support of education among children of any persons presently or fomerfy employed in the lexts'le and allied trades. Today, we reflect these objectives by providing grants for everyday items lo support a child's health and wellbeing, from school unifom and essential clothing to larger furnitur& item5 and speciallst equipment. Our grants help to relieve financial pressure on families dunng challenging times, whlle making sure chlldren have everything they need to thrive. Page 6 FASHION & T￿lLE CHILDREN'S TRUST TRUSTEES. REPORT Iconllnuad) FOR THE YEAR ENDED 30 JUNE 2024 FINANCIAL REVIEW Total income received durfng the year Increased by 18.80A lo £426,572 compared with £359,123 in the previous year. Investm8nt income from securities reflected 0.70/0 rise In returns from those achieved in the previous year as a continued result of the measured transition lo rebalance the capital base mix of the Investment fund portfolio to reflect the adopted total returns policy. Income perft)miance was enhanced by a 60/0 increase in returns from donations and fundraising incomes, £175,364 compared to £109,591 achieved in the previous year, reflecting an outperformance in Corporalelcommunity donations and Corporalellndividual events. Total expenditur8 durlng the year amounted to £848,036, a 4.4'10 increase compared to £812.146 spent in the prevSou$ year. This Increase mainly reflects our strategic grants programme coupled with organi5ational development activities that support our strategic goals. Inv08tment PollGy and Parformanco The Trustees appoint Inv8Stment Managers and delegate to them power at Ihelr dlscretlon lo buy and sell investments securities on their behalf in accordance with the investment policy laid down by the Trustees. The Trust'8 investments are managed on a discretionary basis by Quilter Chevlot. The Trustees have adopted a lolal return policy, with an investment objective of a¢hiewng long-term capital growth lo the value of the portfolio, as well as generatin9 agreed income levels through diversified funds and individual holding5 in fixed income stocks, equitses. allernats've investments and cash. Hlstorically, th8 emphasis had focused on income generation. The Trust's rlsk appelle remalns medlum, limiting equity exposure to a maximum of 75 % of the portfolio, allowing the fund to accept a moderate variation or disruption lo capital value or current income in order to meet the Charity'$ longer-tem objectives. Ethlcal and Rgspon8lble Inv88tment Irs principle the Trust wishe5 to be a responsible Investor. Environmentsl, social and govemanc8 IESGI criteria are a set of standards for an organisation operation that socially conscious investors, such a3 our charity. cons5ders when revie￿ng their investments. Environmental criteria consider how an org8nlsation performs as a steward of nature. Social criteria examine how it manages relationships with 8mployees, suppliers, customers, and the communities where il operates. Governance dèals with an organisalion leadership, executs've pay, audits, inlemal controls, and shareholder nghls. Therefore, the inv&stmenl managers are expected lo take account of ESG Issues in their investment analysis and decision-making processes and engage with company management when appropriate. The Managers send through, quarterly, a specific report covering ESG issues encountered during the peri¢￿. The Investment Manager has calegorised the Charity's responsible investment preference is 'Aware' whi¢h means that the aSm is to oplimise financial returns for the given level of risk level, believing that to achieve this being aware of environmental. social and govemance factors are important inputs. The lolal inwme from the Trust's investment portfollo stood at £251,208 compared lo the previous yearfs total of £249,532. During the year to 30 June 2024, allowing for capital withdrawals including fees during the year, the portfolio grew by 8.9'kn in ¢8pilal terms and generated an income return of 3.9'A, so overall a net increase of 12.80A. This compared to an increase in the benchmark, the MSCI PIMFA Balanced Index of 14.00/0 and the Asset Risk Consultants {ARC) Charity Steady Growth Index of 11.OQ/o. On a rolling 5-year basis, the portfolio has dellvered a compound nel total return of 33.20/0, against 29.10 for the benchmark and 23.7.￿ for the ARC Charity Steady Growth Index. The Finance Committee continues to monitor the activities of the portfolio Managers and is sat18fied wth Quilter Chewot's perfomiance. Page 7 FASHION & TEXnLE CHILDREN'STRU5t TRUSTEES, REPORT {continuedl FOR THE YEAR ENDEO 30 JUNE 2024 Res8rrfes poliGy The Trustees, policy is lo distribute the income from inve9tment8 and other sources lo meet charitable demands, whilst optimising running ¢0sts and prole¢ling the capital base to ensure that the Trust is able to meet all future charitable needs. In 2023124 the sum of £202,390 was added lo reserves {2022123.' £399,204 was deducted from reserves}, mainly due to a £570,034 combined overall rise in realised and unreallsed gains on investment assets compared lo the prior year. Total unrestricted income funds have remained at £0 {2022'. £0) these funds were designated trj fvlfil commitments already made to support children's educational needs. Thésè commitments have finally discharged in June 2022. These commitments were condllional based on an annual review addressing the progress of the child concerned and any changes in the grants to support educational needs or in the financial situation of the parents. Dependent upon this, the grant was either continued al the prev(ou8 level or increased Iprowding 8vldence Is shown). In line with the 8oard's directive ag from 1 July 2019, no further contn'bulions will be considered for these types of grants. Total endowment funds amount lo £7,459,86012023'. £7,257,470) all of which relates lo the expendable endowmentfund. STRUCTURE, GOVERNANCE AND MANAGEMENT The prfncipal addresses and detai18 of profe8$lonal advisers are included In the Information sheet at the tront of these a¢cr)unts. Govornlng Document The Trust 18 constituted under a Declaration of Trust, dated 23 Septembèr 1968, amended by Charity Commission Scheme 214 Isl sealed 18 December 1995. Appolntment of Tru8tee8 The Trust Deed of 1968 requires a minimum of four and a maximum of eighteen Trustees. Trustees are Inwted to join the Board., preference 19 given to those who are currently employed in senior positions in the fashion and textile, retail and manufacturing industry. Twstees, excluding the Chair, are elected by a resolution of the Trustees and serve for a period of four years after which they can be reelected. The Chair is elected by the Trustees and Serves for a perlod of three years and a m2￿MuM of six years in the event of reolection. Induction and Trainlng Each prospective Trustee meets with the Chief Executive, Chair and Tnjstee representative and attends a Trustee Meeting in advance of their appointment being confimed. In December last year, four Trustees were Suc￿sSfUllY recruited to join the Board.. Ann Campbell, Alia Gerar, Andrew Woodward and Phil Cooke. Each concluded an in-depth inductlon, which included details of the Charity, our Trust Deed, legal responslbililies and the latest govemance information prodU￿d by the Charity Commission Page 8 FASHION & TExfiLE CHILDREN'S TRUST TRUSTEES, REPORT Icontinuedl FOR THE YEAR ENDED 30 JUNE 2024 Oryanisatlon The Charity is governed by a Board of eleven Trustees, operating under the day-to-day management of the Chief Executive and team. The Trustees below all held office from 1 July 2023 to 30 June 2024.. Mike Taylor, (Chair of Tru$teesl, Commercial Director, British Heart Foundatlon Mike Trotman, (Chair, Finance Committee) Fomier CFO, Tom Dixon Group David Shepherd, Fomier COO Trading, Arcadia Ryan Becker, Managing Director, UK Visual Immerslon Vanessa Elias, Managing Director, CVUK Robert Bready, Freelance Executive Consultant Anne Secunda, Executive Consultant Phil Cooke (Appointed 23 January 20241, Former Chief Product Offlcer, River Island Alia Gerar {Appoinled 23 January 20241, Head of E¢o$yslems. Rethinkx Andrew Woodward (Appointed 23 January 2024). Fomer Chief Marketing Officer. HUSH Ann Campbell (Appointed 23 January 20241, Director of Corp Affairs, Cotton Connect Ther8 are sub-committees.. Flnance Committee Ichair, Flnance Committee Mike Trolman and Chair, FTCT, Mlke Taylor) are responsible for the monitoring and control of total inGome, expenditure and for supervislon of the Accounts. The performance of Quilter Cheviol is monIto￿d by the Finance Committee. Iti￿G&￿￿ is responsible for assessing applications and reviewing appli¢alSons for grants of over £750 per child. submitted by the Grants Team. There are currently three members of the Cases Committee, David Shepherd, Vanes8a Elias and Alia Gerar, Trustees. TRUSTEES, RESPONSIBILITIES IN RELATION TO FINANCIAL STATEMENTS The Charfty's Trustees are responsible for preparing the Tru$le8'8 Annual Report and financial statements in accordance with applicab18 law and United Kingdom A¢counts'ng Standards (Generally Ac￿pIed Accounting Practice). The law applicable to Chanlies in England and Wales requSres the Trustees lo prepare financial statements for each financial year which give a true and fair vlew of the slate of affairs of the Charity and the incoming resources and application of resources of the Charity for that period. In preparfng these financial statements, th& Trustees are requiffd to.. select suitable accounting policies and apply them conslslently., observe the methods and principles in the Charities SORP., make judgments, and esllmales that are reasonable and pruden( stale whether applicable accounting standard5 have been followed, subject to any departures disclosed and explained in the financial statements Prepare the financial statements on the going concern basi$ unless 1118 inapproprlale to présume that th8 Charity will continue irn operation. The Trustees are regponsible for keeping proper accounting record5 that disclose with reasonable accuracy al any lime the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. The Trustees are also responsible for safeguardlng the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other Irregularities. This Annual Report was approved by the Trustees on 23 January 2024 and signed on their behalf by.. Mike T8ylor ChaSr of Trustees Date.. 30 January 2025 Page 9 FASHION & TEKnLE CHILDREN'S TRUST INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF THE FASHION & T&XTILE CHILDREN'S TRUST Oplnlon We have audited the finarlcial stalemenl$ of Fashion & Textile child￿￿'S Trust for the year ended 30 June 2024 which comprise Slalement of financial activities, balance sheet and notes to the financial 51atemenls, including significant accounb'ng policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom A¢￿UntIng Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republ￿ of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the slate of the ¢harity's affair8 as at 30 June 2024 and of ils incoming resources and application of resources for the year then ended., have been properfy prepared in accordance with Unlted Kingdom Generally A¢cepled Accounting PracliGe', and have been prepared In accordance wlth the requirements of the Chadtlè8 Act 2011. Ba818 for oplnlon We conducted our audit in accordance with Intematsonal Standards on Auditing {UKI IISA8 (UK)) and appli¢abl6 law. Our responsibilities under those standards are further described in the Auditorfs responsibilits'es for the audit of the financial statements section of our report. We are independent of the charity in accordance wllh the ethical requirements that are relevant to our audll of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled aur other ethical re8pon8ibililies In accordance with these requirements. W8 believe thal the audit évidence we have obtained 18 Sufficient and appropriate to provide a basis for our opinion. Conclu8lon8 relatlng to golng concorn In auditing the financial $talemenl8, we have concluded that the trustees, usa of the going concern bas18 of accounting in the preparation of the financial statements ig appropriate. Based on the work we have performed, we have not idents'fied any material unc8rtalnlies relab'ng lo events or condilions that, individually or collectively, may cast significant doubl on the Charity's ability to continue as a going concern for a perlod of at least tsvelve months from when the financial statements are authoris8d for issue. Our respon8ibilitie5 and the responslbilib'es of th8 trustees wth respect te golng concern 8re described in the r8levanl sections of this report. Other Infomiatlon The trustee8 are responsible for the other InforTnation, The other information comprises the Information included in the annual report, other than the financial staternenls and our audilorfs report thereon. Our oplnion on the financial statements does not Covgr the other infomation and, except lo the &xtenl otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. Our respon8ibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the financial $talements or our knowledge obtained in the course of the audit or otheNise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misststements. we are required to determine whether this 9ives rise lo a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other informalion,. we are required to report that fact. We have nothing to report in thi5 regard. Page 10 FASHION & TEXTILE CHILDREN'S TRUST INDEPENDENT AuD￿ORs, REPORT Icontinuedl TO THE TRUSTEES OF THE FASHION AND TEXTILE CHILDREN'S TRUST Matters on whlch we ar& required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require u5 to report lo you if, in our opinion.. the inforrnation given in the Truslees, Annual Report is inconsistent in any material resFect with the financial statements.. or the charity has not kept sufficient accounting records., or the financial statements are not in agreement with the accounting records and returns., or we have not received all the information and explanations we fequire for our audit. Re8ponslbllltl•8 of trust998 As explained more fully In the Trustees, Responsibilities Stslement set out on page 8, the trustees are responsible for the preparats.on of the financial statements and for being sat55fied that they give a true and fair view, and for such intemal control as the Iruslees determine is necessary lo enable the preparation of financial statements that are free from material misstatement. whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related lo goSng concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or lo ¢ease operations, or have no realistic alternative bul lo do so. Audltor8' ra*pon8lbllltle8 for the audlt of the flnanclal Statèments We have been appointed as auditors under the Charilles Act 2011 and report in accordance with regulations mada und8r that Act. Our objectlves are to obtain reasonable assurance about whether the financial statements as a whole are free from malerfal mlsslalemenl, whether due lo fraud or error, and to issue an auditors, report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misslalemonl when it exists. Misstatemen18 can arise from fraud or error and are considered material if, individually or in the aggr8gale, they could reasonably be expected to influence the economlc decisions of users taken on the basis of these financial $tslements. Irregularities, includlng fraud, are instances of non-complianc• with laws and regulations. We design procedures in line with our responsibilities, outlin6d above, to detect material misstatements in respe¢t of irregularille8, including fraud. The specific prO￿dureS for this engagement and the extent lo which thes8 are capable of detec￿ng irr8gularilie5, including fraud are detailed below. Identifying and assessing risks related to irregularities: We assessed the gu8ceplibllity of the charity's financial statements to material mi8Stalement and how fraud might occur, including through discussions ￿th the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as Intended. We evaluated possible incentives and opportunlties for fraudulent manipulation of the financSal statements. We identified laws and regulations that are of significance in the context of thè charity by discussions with trustees and updating our understanding of the sector in which the charity operates. Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wale8. Audit response to risks identified.. We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statemenl disclosures. We reviewed the charity's records of breaches of laws and regulations. minutes of meetings and Corresponden￿ with Page 11 FASHION & TEXTILE CHILDREN'S TRUST INDEPENDENT AuD￿ORs, REPORT Icontlnued) TO THE TRUSTEES OF THE FASHION AND TEXTILE CHILDREN'S TRUST relevant authorities lo identify potential matenal misstatements arising. We discussed the chanty's policies and procedures for compliance wllh laws and regulations wth members of management responsible for compliance. During the planning meeting with the audit team. the engagement partner drew attention to the key afeas which might involve non-compliance with laws and regulations or fra￿d. We enquired of management whether they were aware of any InStan￿S of non 74,648 444.904 108,804 219,880 183,452 664.584 184,778 627,368 519552 328.484 848,036 812,146 Expandlture on ralslng funds 2024 2023 Costs of generating voluntsry income Fundraising Costs Advertising & website costs Publicity Recruilmenl other costs 9,295 8,278 5,574 1,680 25,132 3,702 8,946 300 36,260 108 804 145,064 48,194 98,019 146,213 38,565 184778 Support costs (note 8) Invesknenl management costs 183 452 Page 19 FASHION & TE￿ILE CHILDREN'STRUST NOTES TO THE FINANCIAL STATEMENTS {conllnugdl FOR THE YEAR ENDED 30 JUNE 2024 Charitable acllvltl¢8 Support costs (note 81 Grants Inole 6) Direct costs Total 2024 Total 2023 Large Grants Medium and Small Grant8 2024 2023 407,180 407,180 367,346 219,680 219,680 226,595 664,584 664,584 627,368 627,368 37,724 33,427 Analy818 of newgrants 2024 2023 Large Grants {paid & payable) Paid directly lo educational organlsations on behalf of Sndlvidua13 Pald lo indivlduals Prior year commllments reversed Medium Gronls (paid & payable) Paid directly lo organisatsons on bèhalf of individuals Pald lo individua18 Small Grants Ipald & payable) Paid directly lo organisalions on behalf of individualg Paid to indivldualg 360,059 324,408 Total grants for the year 407,180 Goveman¢• costs 2024 2023 Audit fees (note 101 Insuran Professional fees lincludlng Con$ultaney} Other office costs 12,000 2,681 989 12,060 2,375 20,348 28,561 46,160 Support ¢osts (note 8) Page 20 FASHION & TEXTILE CHILDREN'S TRUST NOTES TO THE FINANCIAL STATEMENTS {Gontlnuedl FOR THE YEAR ENDED 30 JUNE 2024 Support costs 2024 2023 staff costs (note 91 Bookkeeping costs (note 10} Office costs Depreciation Governance costs (note 7) 272,150 361 25,370 2,042 28,561 328 484 244.249 270 31,656 2.279 324,614 Allocated to.. Expenditure on raising fijnds Inote 41 Charitab18 activities {nole 51 108,804 219,680 98,019 226,595 328,484 324,614 Employe98 2024 2023 Wages and salaries National insurance Employer's Pension 243,619 20,963 217,877 18,914 272,150 244 249 Number Number Number ofemployees The average number ofemployeas durin9 the yearw8S', Man8gement and administration One employee eam8 in excess cf £80,000 but lesg than £90,000 per annum12023.' one). Totsl remuneration of key management personnel w89 £134,85812023.' £128,716). 10 Audftors, and Accountants, remuneratlon 2024 2023 Audll Bookkeeplng Saffery LLP Bookkeeping & Office Services 12,000 361 12,060 270 Page 21 FASHION & TEXTILE CHILDREN'S TRUST NOTES TO THE FINANCIAL STATEMENTS (¢onlinued} FOR THE YEAR ENDED 30 JUNE 2024 Fixed A890ts Intsnglblg flxed a860ts Website Total Cost At 1 July 2023 Additions At30June 2024 18.000 18,000 18.000 18,000 Amortisalion and impaimient At 1 July 2023 Charge for the year At 30 June 2024 18,000 18,000 18.000 Nel book value At 30 June 2024 At 30 June 2023 Tanglblo flxed assets Computer Equipment Total Cost At 1 July 2023 Addllions 29,875 29,875 At 30 June 2024 29 675 Depreciation At 1 July 2023 Charge for the year AI 30 Juno 2024 23,724 23,724 2,042 25,766 Nel book value At 30 June 2024 At 30 June 2023 Page 22 FASHION & TEXTILE CHILDREN'S TRUST NOTES TO THE FINANCIAL STATEMENTS (continugd) FOR THE YEAR ENDED 30 JUNE 2024 12 Investments 2024 2023 Quoted investments Market value at 1 July 2023 Additions and other adjustm8nts Disposals proceeds Realised gainl{loss} on investments Unrealised gainl(los$l on investments Market value at 30 June 2024 6.418,483 541,225 {503,4031 128.330} 652,184 7,080,159 7,044,554 1,037,794 {1,717,6841 190,664 13e,845 6,418,483 Cash held at Investment manager8 233,500 386,914 7,313,659 6 805,397 Hislorl¢al Cost at 30 June 2024 5,406,650 5.397.157 All invèstmènts are held primarily lo provide an investment retum lor the Charfty. Geographical Analy818 2024 2023 United Kingdom Oversea5 Fixed Interest Fixed Interest 962,922 107,894 945,320 105,839 United Kingdom Europe USA Asia Equity Equlty Equity Equity 1,728,538 657,922 2,OS4,035 342,805 1,578,933 574.086 1.676,182 289.013 Japan Emergin9 Mafkets Global Equity Equity 159,S98 148,610 190,281 82,560 175,234 82,560 - Equity Alternative Investments Property Equity 793,624 842,906 7080 159 6,418,483 All investment income is derfved from Investments traded on the UK stock exchange. 13 Deblorn and prepayments 2024 2023 Other debtors Prepayments Accrued income 5,760 12,917 11,065 13.186 46,847 Page 23 FASHION & TEXTILE CHILDREN'S TRUST NOTES TO THE FINANCIAL STATEMENTS {conllnued) FOR THE YEAR ENDED 30 JUNE 2024 14 Croditor8: amounts falling duo wlthln ono year 2024 2023 Large Grants payable (see below) Medium and Small Grants payable {see below} Taxab'on and Social security Company Credit card Sundry creditors Accruals 600 6,790 4,853 3,798 26,633 2,460 4,769 4,648 25,399 42,674 37,278 The Trustees have included as a Ilabilily grants payable withln one year that have been communicated in wrrting prior to the balan￿ sheet date. 2024 2023 Largè Grants payabla at 1 July 2023 Medium Grants payable a11 July 2023 Small Grants payable al 1 July 2023 2,460 3,885 600 4.485 387,348 369,371 2.480 2,460 407,180 409,040 600 New commitmentsl Transfers lolfrom designated fund {note 61 Paid during the year Large Grants payable at 30 June 2024 Medlum Grants payable at 30 June 2024 Small Grants payable at 30 June 2024 Totsl Grants carried foNMrd payable 2023124 800 2.460 600 2.460 15 Grant commltsn•nts The payment of future grants is contingent upon grant conditions being met and Is subject lo an annual review by the Trustees, who relain th8 discretion lo terminate any grant. The balance on the designated fund, representing the future liability at the balance sheet date was £012023.. £0). Page 24 FASHION & TEXTILE CHILDREN'S TRUST NOTES TO THE FINANCIAL STATEMENTS Icontlnued) FOR THE YEAR ENDED 30 JUNE 2024 16 Fund8 2024 Unrestricted Restricted Genèral Designated Expendable Permanent fund fund endowment endowment Total 2024 At l July 2023 Income 7,257.470 175,364 7,257,470 426,572 251,208 {848,0361 Expenditure 1848.0361 Transfers 596,828 1596,8281 Gainllloss) on revaluation and disposal of Investment assets AI 30 June 2024 823,854 823,854 7,459.860 7.459.8eo Fund8 2023 Unrestricted Restricted General Designated Expendable Permanent fund fvnd endowment endowment Total 2023 At 1 July 2022 Income 7,656,674 109.591 7,656.674 359,123 249,S32 Expenditure (812,1481 1812,1461 Transfers 562,614 1582,6141 Gainlllosslon revaluation and disposal ol Inveglmenl assets At 30 June 2023 53,819 S3,819 7,257,470 7.257,470 17 Analys18 of assets botween funds 2024 Ursreslricted Restricted General Designated Expendable Pemian8nl fund fund endowment endgwment Total 2024 Intangible fixed assets Tangible fixed a5$ets 3.909 3,909 Investrnents 7,313,659 7,313.659 Current assets 184,966 184,966 Current liabilities 142.674) 7.459,860 (42,6741 7,459,860 Net Assets Page 25 FASHION & TEXTILE CHILDREN'S TRUST NOTES TO THE FINANCIAL STATEMENTS (conllnued) FOR THE YEAR ENDED 30 JUNE 2024 Analysls of 0880ts batween fund8 2023 Unrestricted Restricted General Designated Expendable Permanent fund fiJnd end¢)wment andowmgnl Total 2023 Intsngible fixed assets Tangible fixed assels 5.951 5.951 Investments 6,805.397 8.805,397 Current a8$els 483,398 483,398 Currenl liabilities 137.2761 7 257,470 (37,2761 7,257,470 Net Assets 18 R8latod Partl08 No Trustee, or persons connected wllh tha Trustees, received any remuneratlon or wère Teimburs8d any expenses from the Charity during the year12022-23'. None). 19 Opfrratlng Lease Commltment8 At 30 June 2024 the Chanty had annual commitments under non-cancellable operatlng leases: Operating leases which explre- thin one year Service Office Subleas8 Agreement £23,544 within ￿ lo five years £37,404 Page 26 FASHION & TEXTILE CHILDREN'S TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2023 Unrestricted Income Endowment Funds Funds. Totsl 2023 Notes Income and endowmenis from: Donations and legacies other trading activibes Income from 5nvestments Other incoming resources 109,591 109,591 249,532 249,532 Total Income and endowments 249 532 109591 359 123 ExFénditure on.. Raising Funds 184,778 184,778 Chadtable acUvitie8 627,388 627,388 Total Expenditure 812 146 Net Galn on investments 12 53,819 53.819 Net Income/lexpenditur8} 562814 163410 Transfer betsveen funds 582,614 <582,614) Nel loutgoingl resources before other recognised gain8 and10sge8 {399,2041 1399,204) Other gainslllosses) Net movement In funds for the year (399,204) {399,2041 Total funds brought forward 7,656.874 7,856,674 Total funds carried fornvard 7.257,470 7,257.470 Page 27