2023-12-31-accounts - Textile Reuse And International Development

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COMPANY REGISTRATION NUMBER: 02143753

CHARITY REGISTRATION NUMBER: 297489

Textile Reuse and International Development Company Limited by Guarantee Financial Statements

31 December 2023

LEAMAN MATTEI

Chartered accountants & statutory auditor Suite 1, First floor 1 Duchess Street London W1W 6AN

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Textile Reuse and International Development

Company Limited by Guarantee

Financial Statements

Year ended 31 December 2023

	Page
Trustees' annual report (incorporating the directors' report)	1
Independent auditor's report to the members	13
Statement of financial activities (including income and
expenditure account)	19
Statement of financial position	20
Statement of cash flows	21
Notes to the financial statements	22

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Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report)

Year ended 31 December 2023

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 December 2023.

Reference and administrative details

Registered charity name Textile Reuse and International Development Charity registration number 297489 Company registration number 02143753 Principal office and registered Unit 404 Clerkenwell Workshops office 27/31 Clerkenwell Close London EC1R 0AT

The trustees

Lekha Klouda Ian Hagg Stephen Robertson Andy Rutherford Anna Lovell Neil Carrett (Resigned 19 June 2023) Melinda Keegan Cristina Osoro Cangas (Appointed 18 March 2024) Company secretary Maria Chenoweth Auditor Leaman Mattei Chartered accountants & statutory auditor Suite 1, First floor 1 Duchess Street London W1W 6AN

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Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

Structure, governance and management

1. The Trustees

The Directors of TRAID (Textile Reuse and International Development) are its Trustees, collectively known as the Board of Trustees. The Trustees who served during the year, and up to the date of this report, are as follows:

Lekha Klouda (Serving Chair) Ian Hagg Stephen Robertson Andy Rutherford Melinda Keegan Anna Lovell Neil Carrett (resigned June 2023)

Trustees at their discretion may admit persons who support the objects of the charity to the Board, seeking those with an interest or expertise in charity's work

A Trustee shall cease to hold office if he or she:

(a) resigns in writing to the Charity;
(b) is absent from three consecutive meetings of the Trustees without good reason, and the other Trustees pass a resolution that such Trustee shall be removed from office by reason of such absence;
(c) is removed by a majority vote of the Trustees for conduct prejudicial to the Charity, provided that any member to be so removed shall have the right to make representation to the meeting at which the decision is to be made; or
(d) becomes bankrupt, or is convicted of a criminal offence involving dishonesty by a court of competent jurisdiction, or otherwise ceases to be legally eligible to serve as a charity trustee or as a company director.

Appointments to TRAID's Board are made on a needs basis to bring relevant skills and experience to the charity. Trustees are appointed by targeted recruitment or recommendation, interview with the Chair and Chief Executive and meeting with the Board.

2. Trustee Induction

Trustees are inducted into the organisation through meeting senior management and accessing organisational documentation. Newly appointed Trustees meet with the CEO and Chair for a strategic overview; following meetings are held with senior management that are related to the specific skill set of the new board member. New Trustees receive and review documentation of TRAID's risk register, audited accounts, quarterly management reports and annual budgets.

All trustees are selected for their relevant experience and expertise and largely work within relevant sectors. TRAID leverages the training and continuing professional development that the trustees receive within their day jobs but would support with access to relevant additional training through professional partners if necessary.

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Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

Structure, governance and management (continued)

3. Senior Management

The Senior Management Team who served during 2023 was as follows:

Maria Chenoweth Chief Executive Umashish Panda Finance Manager Enedina Columbano Commercial Director Leigh McAlea International Projects Manager Roberto Clemente Logistics and Operations Manager Jose Baladron Recycling Development Manager Rodrigo Flores HR and Volunteer Recruitment Manager Sophie Calderbank Communications and Marketing Manager

The charity is managed by the Chief Executive in conjunction with the Board of Trustees and Senior Management Team. The Board of Trustees are responsible for governance, the Board and Chief Executive are responsible for the charity's financial and strategic decisions, the Senior Management Team led by the Chief Executive, are responsible for meeting the aims and objectives of the charity.

The Board of Trustees establish appropriate reporting mechanisms to ensure that the Senior Management operates within the scope of its delegated powers and to the charity's objectives. These mechanisms include annual budgets that are approved by the Board, annual aims and objectives, quarterly reports that review the charity's progress, monthly financial accounts, audited financial statements, risk register, end of year report and annual CEO appraisal.

The Board of Trustees meet quarterly with the Chief Executive and Senior Management Team members to review strategic direction, organisational risk, charitable objectives and financial performance. The Chair of the Board meets regularly with the Chief Executive to review the progress of the charity.

4. Remuneration

TRAID's salaries are benchmarked and calculated against their relevant external sector. Bodies such as the Charity Retail Association, ACEVO pay survey, Glass Door, The Living Wage Foundation and specific external recruitment agencies are used.

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Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

Objectives and activities

TRAID is a charity that works both here in the UK and Internationally with its focus on the environmental and social problems caused by clothing and fashion.

TRAID is a registered charity (registered charity number 297489) and is constituted as a company registered in England and limited by guarantee (registration number 02143753).

As stated in its Memorandum and Articles of Association, the purposes for which TRAID is established are given below.

The charity has three charitable objectives:

(a) To contribute to the conservation and protection of the physical and natural environment for the public benefit, through undertaking recycling including the provision of recycling facilities for textiles, and the promotion of the practice of recycling textiles, clothing and other items;
(b) To apply surplus income to the relief of poverty anywhere in the world;
(c) To advance the education of the public concerning recycling and world poverty through programmes of teaching, training, publishing, exhibitions, seminars and any other means of providing education services and resources.

All TRAID's activities have environmental and social benefits including reducing the amount of clothing entering the waste stream for the purposes of: reducing green-house gas emissions generated by clothing in landfill, reducing the need for new natural resources through extending the life cycle of clothing, and providing a model of business that funds and supports global international development programmes.

Conservation and protection of the physical environment is met through promoting donating and reusing clothes. TRAID provides the public with the means to donate clothing for charity resale through a nationwide network of clothing donation banks, regional free home collections and London based charity shops.

The clothing that TRAID collects is hand sorted by TRAID staff for resale in TRAID shops.To preserve natural resources TRAID shops promote wearing and buying second hand fashion over new.

TRAID shops cater for a broad demographic, making secondhand clothing inclusive to all through its product offering and price points.

TRAID operations create 160 living wage foundation accredited environmental jobs that benefit people and the environment.

As a charitable not for profit, TRAID's activities also fund international NGO projects that focus on the clothing supply chain.

Projects funded by TRAID include supporting the transition to organic cotton production in Africa, supporting the means to abolish bonded labour in South India spinning mills, providing day care centres and care for garment workers' children in Bangladesh.

TRAID's educational dissemination ranges from community events, newsletters, social media, news and PR platforms, panels, public addresses, working with local authorities and schools, providing university lectures and filmed materials.

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Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

Strategic report

The descriptions under the headings "Risk Management", "Achievements and performance", "Financial review" and "Plans for the future" meet the company law requirements for the trustees to present a strategic report.

Risk Management

The Board of Trustees have overall responsibility for TRAID's process of controls, through which risk to the charity and its beneficiaries are measured. Risk management is expected to provide reasonable, rather than absolute, assurance against the misappropriation or ineffective use of resources, errors and fraud. The trustees and management team have identified and are managing both internal and external risk, through systems, control processes and strategic planning.

A detailed organisational risk register is held by the Board, Chief Executive and Senior Management Team. The Risk Register is reviewed annually ensuring systems and controls are in place to monitor, manage and reduce TRAID's exposure to major risk. In addition, any new risks are identified in the quarterly management reports circulated to the Board.

Principal Risks

TRAID reviews its risks annually; in 2023 the following principal risks were highlighted which are being managed through our risk management policy and strategies.

With the end of the warehouse lease approaching in 2025, poor market conditions for acquiring replace warehousing was identified as a principal risk.
In 2020 TRAID experienced its first pandemic, with the closure of shops and continued cost payments, TRAID operated at a loss and used its reserves to fund international projects. The 2023 monthly operating loss of closed shops and staff costs are £460,000; with furlough the monthly operating loss being £255K.

TRAID managed these principal risks by the following ways:

1. Warehousing

Warehousing is kept as an ongoing agenda issue at Board meetings. The Board and Senior Management are up to date with the warehousing market including cost, cost of moving and timelines.

Dilapidation forecasts factor in TRAID's financial projections. In line with monthly accounts, five year financial forecasts were continually updated to indicate the reserves available towards the cost of a warehouse. Ring fenced reserves allow for future warehousing options.

2. Pandemics

The Board agreed to review TRAID's reserves policy to ensure the charity's good health and

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

ability to fund established international projects.

Grant Making Policy

TRAID makes grants to external charity partners who deliver carefully considered international development programmes. In 2023, TRAID continued to mainly focus its funding on the social and environmental impacts of clothing and broadened its programme learning to spread to organic vegetable agriculture to mitigate the risk of farmers being dependent on one crop, TRAID also took over funding the education of waste picker children who work on dangerous Bangladesh landfill sites, including teaching tailoring skills.

Public Benefit

The Trustees have complied with their duty under the Charities Act 2011 to have due regard to the guidance published by the Charity Commission.

Achievements and performance

1. Protecting the Environment

There are currently enough clothes on the planet to dress the next six generations.

Each week here in the UK, 33 million items of new clothes are bought, and 11 million items thrown into the rubbish. The annual global carbon footprint of the fashion industry is a stated 3.3 billion tons.

WRAP states that for every three items of secondhand clothing purchased, one new item of clothing will not be purchased, meaning secondhand clothing causes a displacement effect reducing the need for more new clothing that is damaging to the environment.

TRAID's environmental aim is to drive people away from new fast fashion purchases through its network of second hand clothing charity shops; in tandem we promote passing on unworn and unwanted clothing through our network of textile banks and home collections.

Based on WRAP's calculation, in 2023 the environmental benefit of TRAID collections and retail was a carbon saving of 29,027 tons and 5,400,000,000 litres of water.

2. Public Education

During 2023, TRAID promoted the issues surrounding clothing through online and public facing mediums including maintaining the distribution of regular newsletters, increased press coverage and public platforms. Public education was given through local authority activities, CEO engagements and an increased relationship with the Open University where TRAID provided talks, engagement, and materials and film for master's level students.

3. International development

The funding payments made during 2023 were £122,966. In 2023 the Board approved international development funding of 5 projects in 4 countries totaling £578,190.

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Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

Achievements and performance (continued)

Some key moments in 2023 relating to international development funding include it being the first year since Covid that TRAID returned to funding all our partners for longer than a year if they choose; agreement to fund Nagorik Uddyog and Grambangla directly due to the closure of UK partner Childhope; and continuing to include Ethiopian vegetable growers in our funding remit so they can also benefit from more than a decade of work with cotton farmers to create a robust participatory model to reduce pesticide use.

Project Summaries

PAN Ethiopia & PAN UK Funding summary

£262,511, 2023 - 2025 (2 years)
Taking place in Ethiopia in the Gamo Gofo and Welaita Zones
Project partners are PAN UK and PAN Ethiopia
Aims to support 7,775 Ethiopian cotton farmers
Developing the learning model called Farmer Field Schools where farmers find out how to reduce and end toxic dangerous pesticide use on their crops. It's already extremely successful combining on the ground group learning in cotton fields, with individual farm visits by the project team. The next step will be to create more experienced lead farmers to support less experienced farmers, known as follower farmers
Future proofing farmers against unpredictable impacts of climate change. The project does this by encouraging farmers to diversify crops grown alongside cotton - things like plantain, shea nuts, soya, haricot beans, mange tout and other vegetables. It provides food security. It spreads out the season giving farmers a better chance of getting a good harvest even if one crop fails. Farmers are not dependent on the success of only one crop. Farmers have multiple income streams from different crops
Women's microbusinesses will be improving the quality of organic cotton seed.

PAN Ethiopia & PAN UK Funding summary

£38,464, 2023 - 2024 (1 year)
Ethiopia in the Ziway region
Project partners are PAN UK and PAN Ethiopia
Helping vegetable growers to benefit from the successes of pesticide reduction we have seen with cotton farmers in Ethiopia
Extending the benefits, evidence based experience, project expertise, peer support to other farmers
Very important because Ethiopian vegetable farmers use very massive quantities of hazardous pesticides to grow, impacting health, destroying soil and reducing farmer incomes
TRAID funded a pilot project in 2018 to the pesticide reduction model used by cotton farmers to work with vegetable growers. We then funded a one-year project in 2022, and are continuing to fund this work in 2023.
It's been a success so far with 25% of participating vegetable farmers using no hazardous pesticides at all, and a 73% reduction in overall pesticide spraying by farmers. And their vegetable yields have been excellent.
The vegetables grown are valuable cash crops sold in local markets and provide food for farmers and their families. They are also used as rotation crops with cotton.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

Achievements and performance (continued)

OBEPAB & PAN UK Funding summary

£169,112, 2023 - 2025 (18 months)
Benin, West Africa
Project partners are PAN UK and OBEPAB
Supporting 9,000 organic cotton farmers in Benin to manage crops organically using the Farmer Field School model (in field group and individual training to grow organic)
More training for OBEPAB's field staff. In the last phase of the project, the staff doubled in size so they can support more farmers. It's important that staff training is regular and kept up to date on things like new content being taught in Farmer Field Schools and organic certification.
Farmers organised across 60 organic cooperatives will be supported to meet and maintain certification criteria so over 8,000 farmers can secure certification and the 20% premium for organic crops.
Crop diversification - as in Ethiopia, this organic farming model strives to end single crop dependency. Instead growing a range of crops for food, to be sold, and to set up small businesses - such as making Shea Butter from shea nuts.

Nagorik Uddyog and Childhope Funding summary

£69,000, 2023 - 2024 (1 year)
Dhaka, Bangladesh
Project partner is Nagorik Uddyog
Supporting 180 very vulnerable children of garment working mothers by looking after them in day care centres
Without this care, these children would be left alone and at risk, or separated from their mothers when they leave villages to travel to Dhaka for work
The centres provide high quality care, education, good food and health checks for 80 children aged 2 - 5. At least 40 children will be helped to get into state primary school
The centres also provide 100 street and working children aged 6 - 16 with drop in literacy and maths skills, life skills and rights training. These children are working to supplement family incomes. The centre staff will work with parents and employers to make sure these children can attend the drop in classes. They target those involved in the most hazardous labour like tanning or metal work or construction.

They receive education, food, and mentoring. Around 40 will be helped into state schools, while others will be supported into safer work.

Parents are also supported to get a birth certificate for their child. It's a very important document essential for accessing state education, health, and helping to prevent early marriage or child labour.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

Achievements and performance (continued)

Grambangla Funding summary

£24,703, 2023 - 2024 (1 year)
Matuail, Dhaka, Bangladesh
Project partner is Grambangla
Supporting 60 adolescent girls (14 - 17 years) working in very dangerous conditions as waste pickers on a landfill site in Bangladesh
These funds will help Grambangla to provide these children with vocational / skills training to get employment away from the landfill sites
These children's parents are waste pickers, and their children end up also working on the landfill site to make more money for the family
The landfill site brings in rubbish from the city, and the waste pickers sort through to collect things like cow horns, metal, glass and plastics, which they then sell for money by weight and type. It's very dangerous and unhygienic work. Workers also must navigate large vehicles which are shovelling and compacting waste. Life changing and fatal accidents are common
Each girl receives six-months training in tailoring and sewing at the Grambangla Technical Training Centre, registered in 2016 with the Bangladesh Technical Education Board. Participants also receive a nutritious meal while training.
Girls are then supported into employment and typically, go from earning around £30 per month picking waste, to over £70 per month in safer employment

Financial review

For the year ended 31st December 2023, TRAID had incoming resources of £9,075,370 up 4.8% on the previous year (2022: £8,657,587), reflecting the ongoing strength of the retail revenue stream. Total resources expended were £7,981,424, up 14.8% on the previous year (2022: £6,949,735), largely reflecting increased investment in staff to support the revenue generating activities and increased investment in overseas projects.

At 31st December 2023 net assets amounted to £8,271,359 (2022: £7,177,413) of which general unrestricted funds totalled £4,727,227 (2022: £4,150,978) and designated funds totalled £3,544,132 (2022: £3,026,435). TRAID's bank balance was £7,489,380. This balance was sufficient to cover the six months operating costs (estimated to be £4m) as per TRAID's reserves policy.

Plans for future periods

2024 will be the year that TRAID resolves its warehousing, securing a new lease and moving to a new location.

TRAID will review its reserves policy to ensure good organisational financial health in light of the uninsurable event of another pandemic.

TRAID will invest in its estate, to include carrying out maintenance works and updating its retail brand.

TRAID will invest in a brand refresh, ensuring its tone of voice, brand and product is inclusive to all demographics ensuring inclusivity to the power of second hand and charity retail.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

Plans for future periods (continued)

TRAID will continue to manage its finances through real time updated financial spreadsheets that feed into a five-year projection, ensuring the effective management of the charity and its financial planning. The charity will continue funding international development projects that are focused on the social and environmental impacts of the textile supply chain. TRAID will continue its current themes of organic cotton, garment workers' children, exploitation in spinning mills and small innovative projects such as cotton rotation crops and intercropping.

TRAID will continue its public engagements and socials whilst increasing its university relationships that will include the in-depth analysis of the outcome of the Childhope project, which will be the subject of PHD research.

TRAID will continue its work of offering easy and innovative ways for the UK public to act responsibly and sustainably with their unworn clothes, through retaining and increasing our offer of accessible facilities for people to donate their unworn clothing for resale. TRAID shops will work to increase their environmental impact by displacing new clothing purchases with second-hand through good product offering, prominent outlets, and generating public awareness

Staff and Volunteering contribution

TRAID continues to be an accredited London living wage employer, providing employment for 187 staff.

Volunteer input increased during 2023, due to being post pandemic, with 227 people giving 1,042 days.

Reserves Policy

It is the policy of TRAID that unrestricted funds should be maintained to ensure that the charity remains able to continue supporting its charitable activities and to cope with unforeseen risks, such as those that arose during the Covid-19 pandemic. Based on good practice, in 2023 general reserves of sixmonth operating costs totaling £4m were retained.

In addition, careful consideration has been given to the need to prepare for the end of the main warehouse lease in 2025, with a potential aim of TRAID acquiring new warehousing, making the charity's operations more secure and resilient in the long-term. To that end additional reserves are being built up to enable a new purchase or rental to be made; during 2023 these additional reserves amounted to £2.5m. The long-term warehousing options are being kept under review by Trustees taking account of a rapidly changing business environment.

The Board will continue to review the reserves policy of the charity annually.

Investment Policy

It is the policy of the Trustees to maintain surplus funds in an interest-bearing treasury or deposit account which may be accessed as required for the maintenance of Traid's reuse and recycling activities in the United Kingdom

Going Concern

In line with 2023, a financial projection has been produced covering October 2024 to September 2025 profit, loss, cash flow and reserves.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

Plans for future periods (continued)

The financial projection runs from October 2024 to September 2025 based on actual 2023 performance and projection. The projection is based on textile yields remaining as is, retaining good retail performance, no further lockdowns, and no new retail expansion.

With no remedial action, the forecast gives a projected surplus for the period of £1,163,264.

Factoring the projected new spending of £713,796 the bottom line becomes £449,468.

This scenario leaves the charity with a positive concluding cash balance of £7,773,287 covering TRAID's six-month reserves policy as well as planning for the end of the current main warehouse lease in 2025.

The Trustees have a reasonable expectation that the Charity has adequate resources to continue in operation for twelve months from the date of approval of these financial statements.

Funds held as custodian trustee

There are no funds held by Custodian Trustees on behalf of others.

Trustees' responsibilities statement

The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the applicable Charities SORP;
make judgments and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and 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 taking reasonable steps for the prevention and detection of fraud and other irregularities.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Directors' Report) (continued)

Year ended 31 December 2023

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

The trustees' annual report (incorporating the directors' report) and the strategic report were approved on 27 September 2024 and signed on behalf of the board of trustees by:

Lekha Klouda Trustee

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Independent Auditor's Report to the Members of Textile Reuse and International Development

Year ended 31 December 2023

Opinion

We have audited the financial statements of Textile Reuse and International Development (the 'charity') for the year ended 31 December 2023 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Independent Auditor's Report to the Members of Textile Reuse and International Development (continued)

Year ended 31 December 2023

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Independent Auditor's Report to the Members of Textile Reuse and International Development (continued)

Year ended 31 December 2023

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to 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 to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Independent Auditor's Report to the Members of Textile Reuse and International Development (continued)

Year ended 31 December 2023

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operation of the charityy, including the Companies Act 2006, Charities Act 2011, data protection, employment, environmental and health and safety legislation;
we assessed the extent of non-compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
performed analytical review procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing the financial disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities,

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Independent Auditor's Report to the Members of Textile Reuse and International Development (continued)

Year ended 31 December 2023

including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council's website at:

www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidanc e-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx.

This description forms part of our auditor's report.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Independent Auditor's Report to the Members of Textile Reuse and International Development (continued)

Year ended 31 December 2023

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

Sonia Yeshin (Senior Statutory Auditor)

For and on behalf of Leaman Mattei Chartered accountants & statutory auditor Suite 1, First floor 1 Duchess Street London W1W 6AN

27 September 2024

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 December 2023

		2023	2023	2022
		Unrestricted
		funds	Total funds	Total funds
	Note	£	£	£
Income and endowments
Charitable activities	5	8,952,339	8,952,339	8,423,410
Investment income	6	123,031	123,031	34,177
Other income	7	–	–	200,000
		``	``	``
Total income		9,075,370	9,075,370	8,657,587
		``	``	``
Expenditure
Expenditure on charitable activities	8,9	7,981,841	7,981,841	6,949,735
Other expenditure	12	(417)	(417)	–
		``	``	``
Total expenditure		7,981,424	7,981,424	6,949,735
		``	``	``
		``	``	``
Net income and net movement in funds		1,093,946	1,093,946	1,707,852
		``	``	``
Reconciliation of funds
Total funds brought forward		7,177,413	7,177,413	5,469,561
		``	``	``
Total funds carried forward		8,271,359	8,271,359	7,177,413
		``	``	``

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 22 to 33 form part of these financial statements.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Statement of Financial Position

31 December 2023

		2023	2022
	Note	£	£
Fixed assets
Tangible fixed assets	17	553,900	684,005
Current assets
Debtors	18	809,129	637,694
Cash at bank and in hand		7,489,380	6,550,350
		``	``
		8,298,509	7,188,044
Creditors: amounts falling due within one year	19	413,569	527,155
		``	``
Net current assets		7,884,940	6,660,889
		``	``
Total assets less current liabilities		8,438,840	7,344,894
Provisions	20	167,481	167,481
		``	``
Net assets		8,271,359	7,177,413
		``	``
Funds of the charity
Unrestricted funds:
Designated funds		3,544,132	3,026,435
General unrestricted funds		4,727,227	4,150,978
		``	``
Total unrestricted funds		8,271,359	7,177,413
		``	``
Total charity funds	21	8,271,359 ``	7,177,413 ``

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of trustees and authorised for issue on 27 September 2024, and are signed on behalf of the board by:

Lekha Klouda Trustee

The notes on pages 22 to 33 form part of these financial statements.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Statement of Cash Flows

Year ended 31 December 2023

	2023	2022
	£	£
Cash flows from operating activities
Net income	1,093,946	1,707,852
Adjustments for:
Depreciation of tangible fixed assets	305,001	294,494
Other interest receivable and similar income	(123,031)	(34,177)
Accrued income	(39,858)	(7,034)
Changes in:
Trade and other debtors	(171,435)	(26,703)
Trade and other creditors	(73,728)	(235,476)
	``	``
Cash generated from operations	990,895	1,698,956
	``	``
Net cash from operating activities	990,895	1,698,956
	``	``
Cash flows from investing activities
Purchase of tangible assets	(174,896)	(433,851)
Proceeds from sale of tangible assets	–	8,383
Interest received	123,031	34,177
	``	``
Net cash used in investing activities	(51,865)	(391,291)
	``	``
Net increase in cash and cash equivalents	939,030	1,307,665
Cash and cash equivalents at beginning of year	6,550,350	5,242,685
	``	``
Cash and cash equivalents at end of year	7,489,380 ``	6,550,350 ``

The notes on pages 22 to 33 form part of these financial statements.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 December 2023

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Unit 404 Clerkenwell Workshops, 27/31 Clerkenwell Close, London, EC1R 0AT.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. Material estimates and judgements are set out below.

(a) Accruals

Included within accruals is an amounnt due to Waltham Forest Council of £90,634 (2022: £91,746). The accrual is for amounts that are due to the council for the collection of clothes (by the charity) from banks located within the borough. The estimated value has been calculated based on tonnage collected from the banks using average prices for clothes bank materials.

(b) Provision for dilapidations

Included in provisions is an amount in respect of dilapidations for TRAID's shops and warehouses. This is based on management's judgement of the likely cost of restoring the properties to their original condition and rectifying any alterations made. This could be impacted by market fluctuations in building costs and also negotiations with the landlords on exiting the properties.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's objectives.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Fund accounting (continued)

Designated funds are unrestricted that have been set aside by the trustees for a specific purpose.

Incoming resources

All incoming resources are included in the statement of financial activities when the charity becomes entitled to the income and the amounts can be measured reliably.

Incoming resources from charitable activities (including the sale of recycled clothes and other income) are accounted for on a receivable basis.

Investment income (bank interest) is recognised on a receivable basis.

Resources expended

Resources expended are recognised in the period to which they relate.

Direct charitable expenditure comprises all the expenditure relating to the activities carried out to achieve the charitable objectives.

Support costs represent costs that cannot be directly attributed to activities. These costs have been allocated across the charitable activities on the basis of staff time.

Governance includes the cost of compliance with constitutional and statutory requirements. These costs have been allocated across the charitable activities in the same proportions as support costs.

Wages are allocated to different activities on the basis of time spent.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Long leasehold property - over the period of the lease Containers - 33% straight line Motor vehicles - 25% straight line Fixtures, fittings and equipment - 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Leasehold improvements include decommissioning costs relating to the leases.

Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Grants payable

These are recognised when approval for payment has been given by the trustees subject to any necessary proper conditions having being met by the beneficiaries.

Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

Provisions include amounts for dilapidations and restoration where the terms of the lease require the leasehold property to be reinstated to the position it was before commencement of the lease.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Financial instruments

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

4. Limited by guarantee

The charity is is a company limited by guarantee. The members of the company are the trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

5. Charitable activities

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Retail sales	7,748,442	7,748,442	7,119,222	7,119,222
Wholesale sales	1,106,663	1,106,663	1,133,870	1,133,870
Other income	97,234	97,234	170,318	170,318
	``	``	``	``
	8,952,339	8,952,339	8,423,410	8,423,410
	``	``	``	``

Charitable income is from diverting clothes and shoes from landfill.

6. Investment income

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Interest receivable	123,031	123,031	34,177	34,177
	``	``	``	``
Other income
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Landlord compensation	– ``	– ``	200,000 ``	200,000 ``

7. Other income

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

8. Expenditure on charitable activities by fund type

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Diverting clothes and shoes from
landfill	7,155,497	7,155,497	6,006,460	6,006,460
Overseas development projects	424,345	424,345	395,914	395,914
Support costs	401,999	401,999	547,361	547,361
	``	``	``	``
	7,981,841	7,981,841	6,949,735	6,949,735
	``	``	``	``

9. Expenditure on charitable activities by activity type

	Activities
	undertaken	Grant funding		Total funds	Total fund
	directly	of activities	Support costs	2023	2022
	£	£	£	£	£
Diverting clothes and
shoes from landfill	7,155,497	–	386,999	7,542,496	6,539,321
Overseas development
projects	–	424,345	–	424,345	395,914
Governance costs	–	–	15,000	15,000	14,500
	``	``	``	``	``
	7,155,497	424,345	401,999	7,981,841	6,949,735
	``	``	``	``	``
Analysis of support costs
			Support costs	Total 2023	Total 2022
			£	£	£
Staff costs			303,916	303,916	396,283
Governance costs			15,000	15,000	14,500
Depreciation			1,990	1,990	8,200
Other costs			81,093	81,093	128,378
			``	``	``
			401,999	401,999	547,361
			``	``	``
Analysis of grants
				2023	2022
				£	£
Grants to institutions
Pan UK				283,451	273,444
ChildHope				77,221	66,968
Arogya Agam				4,838	–
READ - Rights Education and Development Centre				58,835	50,502
AMMA & Tea Leaf Trust				–	5,000
				``	``
				424,345	395,914
				``	``
Total grants				424,345	395,914
				``	``

10. Analysis of support costs

11. Analysis of grants

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

12. Other expenditure

		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2023	Funds	2022
		£	£	£	£
	(Gain)/loss on disposal of tangible fixed
	assets held for charity's own use	(417)	(417)	–	–
		``	``	``	``
13.	Net income
	Net income is stated after charging/(crediting):
				2023	2022
				£	£
	Depreciation of tangible fixed assets			305,001	294,494
	Gains on disposal of tangible fixed assets			(417)	–
				``	``
14.	Auditors remuneration
				2023	2022
				£	£
	Fees payable for the audit of the financial	statements		15,000	14,500
				``	``
15.	Staff costs
	The total staff costs and employee benefits for the reporting period are analysed as				follows:
				2023	2022
				£	£
	Wages and salaries			4,201,252 ``	3,617,085 ``

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. Contributions payable by the charity for the year ended 31 December 2023 were £81,277 (2022: £80,820).

Contributions totalling £Nil (2022: £Nil) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000.

The charity's key management personnel comprises the Board of Trustees and the senior management team.

Included within the senior management team are the following:- Chief Executive, Finance Manager, Commercial Director, Communications Manager, Logistics and Operations Manager, Recycling Development Manager, and HR and Volunteer Recruitment Manager.

Total benefits received by the senior management team in the year amounted to £528,832 (2022: £468,958). The trustees received no remuneration during the year (2022: £nil).

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

15. Staff costs (continued)

The average head count of employees during the year was 187 (2022: 148). The average number of full-time equivalent employees during the year is analysed as follows:

	2023	2022
	No.	No.
Shops	125	96
Collecting, sorting and distribution	52	43
Management and administration	9	7
Recycling	1	1
Overseas development	–	1
	``	``
	187	148
	``	``

The number of employees whose remuneration for the year fell within the following bands, were:

	2023	2022
	No.	No.
£60,000 to £69,999	1	1
£70,000 to £79,999	2	1
£110,000 to £119,999	–	1
£120,000 to £129,999	1	–
	``	``
	4	3
	``	``

16. Trustee remuneration and expenses

None of the trustees received remuneration for their services during the year (2022: £nil)

None of the trustees were reimbursed for any expenses during the year (2022: £nil)

The charitable company paid for trustee indemnity insurance during the year for the premium of £451 (2022: £438).

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

17. Tangible fixed assets

		Long			Fixtures,
		leasehold		Motor	fittings and
		property	Containers	vehicles	equipment	Total
		£	£	£	£	£
	Cost
	At 1 January 2023	167,481	493,175	611,110	1,810,868	3,082,634
	Additions	–	–	54,000	120,896	174,896
	Disposals	–	–	(15,350)	–	(15,350)
		``	``	``	``	``
	At 31 December 2023	167,481	493,175	649,760	1,931,764	3,242,180
		``	``	``	``	``
	Depreciation
	At 1 January 2023	112,830	493,175	463,614	1,329,010	2,398,629
	Charge for the year	6,234	–	88,006	210,761	305,001
	Disposals	–	–	(15,350)	–	(15,350)
		``	``	``	``	``
	At 31 December 2023	119,064	493,175	536,270	1,539,771	2,688,280
		``	``	``	``	``
	Carrying amount
	At 31 December 2023	48,417	–	113,490	391,993	553,900
		``	``	``	``	``
	At 31 December 2022	54,651	–	147,496	481,858	684,005
		``	``	``	``	``
18.	Debtors
					2023	2022
					£	£
	Trade debtors				56,095	8,812
	Prepayments and accrued income				464,489	405,146
	Other debtors				288,545	223,736
					``	``
					809,129	637,694
					``	``
	The debtors above include the following amounts falling due			after more	than one year:
					2023	2022
					£	£
	Other debtors				102,461	102,461
					``	``

Other debtors of £102,461 (2022: £102,461) relates to rent deposits which are repayable in more than one year. The rent deposits are charged as security for amounts payable under the respective leases.

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

19. Creditors: amounts falling due within one year

	2023	2022
	£	£
Trade creditors	205,234	195,575
Accruals and deferred income	208,335	248,193
Social security and other taxes	–	83,387
	``	``
	413,569	527,155
	``	``

20. Provisions

								Dilapidations
								£
At	1	January	2023	and	31	December	2023	167,481
								``

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

21. Analysis of charitable funds

Designated funds

The income funds of the charity include the following designated funds. Designated funds represent the net book value of fixed assets at 31 December 2023 and also amounts which have been set aside out of unrestricted funds by the trustees to support international development projects.

The balance on each designated fund relating to international development projects at 31 December 2023 represents the amount that TRAID expects to contribute to the various projects over the coming years. It is expected that all designated funds will be paid within the coming 1-4 years.

				Balance at
	Balance at 1			31
	January	Resources		December
	2023	expended	Transfers	2023
	£	£	£	£
Fixed Asset Fund	684,005	(289,651)	159,546	553,900
Pan UK	154,320	(233,568)	431,623	352,375
Amit Consultancy	–	(3,600)	14,400	10,800
ChildHope	45,000	(77,221)	32,221	–
Arogya Agam	1,238	(1,238)		–
READ	141,872	(58,815)		83,057
Grambangla Unnayan Committee	–	(14,703)	24,703	10,000
Nagorik Uddyog	–	(35,000)	69,000	34,000
Warehouse Fund	2,000,000	–	500,000	2,500,000
	``	``	``	``
	3,026,435	(713,796)	1,231,493	3,544,132
	``	``	``	``

Fixed Assets Fund:

This represents the net book value of the fixed assets at 31 December 2023.

Childhope:

Four established centres provide the children of garment working mothers in Bangladesh with high quality care, education, and nutrition who would otherwise be on the streets, left home alone or working in unsafe conditions. Children aged 2-5 are prepared for government primary schools, while children aged 6-16, many of them working, receive non-formal education, life skills training and are supported into school wherever possible. The project will support around 200 children and their families.

READ and Arogoya Agam:

The project campaigns to improve the rights and representation of the most marginalised textile workers in Tamil Nadu, South India a garments industry hub. This phase of the work focuses on supporting migrant garment workers, who live precariously in settlements near or inside mills and factories, and experience particularly bad exploitation.

The project is working with regional state authorities, and on the ground, to track and safely register migrant workers through an app and helpline so they can access their rights, and ensure

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

they get paid on time. The work also focuses on empowering women to build solidarity and awareness amongst the majority female workforce, by building the capacity of women leaders.

At least 5,000 migrant workers will be supported, while legal and advocacy support will reach around 500 workers. The project also supported an additional 2,000 garment workers, particularly migrant garment workers, with access to food and medical supplies in the context of Covid. As factories closed, many garment workers became immediately destitute and in addition, inter-state migrant workers were stuck thousands of miles from their homes without any resources.

Fairtrade Foundation:

This grant supports cotton farmers at the Vasudha co-operative in Madhya Pradesh, India to breed non-GM seeds so they can have more choice over how they farm, and grow organic cotton.

AMMA and Tea Leaf Trust:

The project addresses the need for flexible and fairly paid employment for garment working mothers in Sri Lanka. It uses food waste and plants to dye fabrics naturally and the all-women team create beautiful sustainable handmade textiles, clothes, and homeware for the domestic and overseas market.

PAN UK:

Improving the environment, health, and income of small holder cotton farmers in Benin and Ethiopia by reducing their use of hazardous pesticides and fertilisers, and ultimately, growing organically. The protect supports farmers to manage crops naturally by strengthening their knowledge base with regular training in field schools, using natural cheap food sprays, intercropping, ,crop rotation and increasing the numbers of beneficial insects. As a result, yields and incomes will increase, while pesticides poisoning and environmental harm will decrease.

Warehouse Fund:

This represents the ring-fenced fund TRAID has buit up for the purposes of acquiring new warehousing, making the charity's operations more secure and resilient in the long-term..

Docusign Envelope ID: 307AC539-7A90-4AEE-A3EB-7F2E9DF23DC9

Textile Reuse and International Development

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2023

22. Analysis of net assets between funds

	Unrestricted	Designated	Total Funds
	Funds	Funds	2023
	£	£	£
Tangible fixed assets	–	553,900	553,900
Current assets/(liabilities)	4,894,708	2,990,232	7,884,940
Provisions	(167,481)	–	(167,481)
	``	``	``
	4,727,227	3,544,132	8,271,359
	``	``	``
	Unrestricted	Designated	Total Funds
	Funds	Funds	2022
	£	£	£
Tangible fixed assets	–	684,005	684,005
Current assets/(liabilities)	4,318,459	2,342,430	6,660,889
Provisions	(167,481)	–	(167,481)
	``	``	``
	4,150,978	3,026,435	7,177,413
	``	``	``

23. Prior year adjustments

The prior period adjustment corrects the brought forward fixed asset position and designated reserves.

24. Analysis of changes in net debt

				At
	At	1 Jan 2023	Cash flows	31 Dec 2023
		£	£	£
Cash at bank and in hand		6,550,350	939,030	7,489,380
		``	``	``

25. Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2023	2022
	£	£
Not later than 1 year	1,302,368	1,434,801
Later than 1 year and not later than 5 years	2,634,497	3,174,517
Later than 5 years	1,557,781	1,423,253
	``	``
	5,494,646	6,032,571
	``	``

26. Related parties

There were no related party transactions in the year (2022: none).