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2024-12-31-accounts

Textile Reuse and International Development

Registered Charity No: Registered Company No: 02143753

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31st December 2024

Textile Reuse and International Development Company Limited by Guarantee Financial Activities 31 December 2024

Reference and administrative details

Registered charity name Textile Reuse and International Development Charity registration number 297489 Company registration number 02143753 Principal address and registered 2 Westlinks office Alperton Lane Wembley HA0 1ER Trustees Lekha Klouda Ian Hagg Stephen Robertson Andy Rutherford Anna Lovell Cristina Osoro Cangas (Appointed 18 March 2024) Mark Selby (Appointed 2 July 2025) Melinda Keegan (Resigned 11 March 2025)

Company secretary

Company secretary Maria Chenoweth Auditor Moore Kingston Smith LLP Chartered accountants & statutory auditor Floor 6 9 Appold Street London EC2A 2AP

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Textile Reuse and International Development Contents Page

Page
Report of the Trustees 4 - 15
Independent Auditor's Report 16 - 19
Statement of Financial Activities 20
Balance Sheet 21
Statement of Cash Flows 22
Notes to the financial statements 23 - 33

Page 3

TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

The trustees present their report and financial statements for the year ended 31 December 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Companies Act 2006 and Accounting and Reporting by Charities: The Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective from 1 January 2019).

Objectives and Activities

Textile Reuse and International Development (“TRAID”) is a charity that focuses on the environmental and social problems caused by the fashion industry both in the UK and internationally.

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

As stated in its Memorandum and Articles of Association, the purposes for which TRAID is established are the following 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 activities have environmental and social benefits including reducing greenhouse gas emissions through reducing the amount of clothing entering the waste stream, preserving natural resources such as water and energy through extending the life cycle of clothing, providing a circular business model that funds global development programmes that are focussed on textile supply chains.

Objective a) the conservation and protection of the physical environment is met through facilitating the promotion of donating and reusing second hand 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, donations by post and London based charity shops.

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

TRAID shops cater for a broad demographic, making second-hand clothing inclusive to all through its prominent high street stores, product offering and price points.

As a registered charity, TRAID 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 worker children in Bangladesh.

TRAID’s educational work spans the impact of our clothes on the planet and people, how to keep our clothes in use for longer, the personal and wider benefits of shopping charity second-hand.

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TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

TRAID’s educational activities range from community events, newsletters, social media, campaigns, news and PR platforms, panels, public addresses, working with local authorities and schools, providing university lectures including filmed materials, extending the life of our clothes through teaching repair.

Structure, Governance and Management

The Trustees

The Directors of TRAID 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 Cristina Osoro Cangos

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 the 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.

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 the documentation of TRAID risk register, audited accounts, quarterly management reports, monthly management accounts 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

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Senior Management

The Senior Management Team who served during 2024 was as follows:

Maria Chenoweth Chief Executive Umashish Panda Finance and HR Director Roberto Clemente Operations Director Enedina Columbano Commercial Director Ian Sled Head of Retail Leigh McAlea International Projects Manager Jose Baladron Head of Partnerships Sophie Calderbank Communications and Marketing Manager Enrico Rizzi Recruitment and Training 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 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, Finance/ HR Director and Operations Director to review strategic direction, organisational risk, charitable objectives and financial performance. The Board also meets annually with the Senior Management Team and with the Head of International projects manager and a nominated programme partner.

The Chair of the Board meets regularly with the Chief Executive to review the progress of the charity. During 2023 a Finance Committee was established for the purpose of investment management, as a minimum requirement the finance committee meet once a year.

Remuneration

TRAID 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.

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.

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TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

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, Senior Management Team and appointed auditors. 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 2024 the following principal risks were highlighted.

Principal Risk a).

Warehousing

Mitigation

Warehousing was kept as an ongoing issue on the Board meeting agenda.

In line with monthly accounts, five-year financial forecasts were continually updated to indicate the reserves available towards the future cost of a warehouse. TRAID secured a new rental warehouse in March 2024 and subsequently surrendered three of its warehousing rentals. The new warehouse based in Alperton was in full operation from September 2024.

Principal Risk b).

Pandemics

Mitigation

With the monies remaining from the new warehouse provision, the Board reviewed TRAID’s reserves policy to increase premise reserves from 6 to 12 months with outstanding ID commitments also added to provide additional security in the event of a future pandemic.

Grant Making Policy

TRAID makes grants to external charity partners who deliver carefully considered international development programmes. 2024 TRAID continued its funding focus on the textile supply chain, funding over half a million pounds supporting 5 global projects, including returning to a previously funded project on child labour run by Good Weave.

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TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

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

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 second-hand clothing purchased, one new item of clothing will not be purchased, meaning second-hand clothing causes a displacement effect reducing the need for more new clothing that is damaging to the environment.

TRAID’s environmental aim is to provide an alternative sustainable way to make fashion purchases through its network of charity shops; in tandem we promote passing on unworn and unwanted clothing through our network of textile banks and home collection service.

Using the carbon footprint calculator tool of WRAP Textiles 2030 the environmental benefit from TRAID’s UK clothing activities are 3,900 tonnes of clothing diverted from landfill, CO2e savings of 33,226 tonnes and a water saving of 6,252,400 m3.

Public Education

During 2024, TRAID continued promoting the social and environmental issues surrounding our clothes that were delivered through online and public facing mediums including hosting 30 in-store workshops, monthly newsletters, two campaigns, good press coverage, public platforms and increased social media outreach. Public education was also given through working with local authorities, colleges, universities and fashion schools, alongside an ongoing relationship of providing materials to the Open University.

International development

In 2024 the Board approved international development funding of 5 projects in 5 countries totalling £532,258.

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TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Project Summaries 2024

1. In-country Partner: Nagorik Uddyog Country/Region: Bangladesh, Dhaka

Project Summary

To protect and improve the lives of the most vulnerable children of garment working mothers by providing access to day-care and drop-in centres, enrolment in formal education, registering for birth certificates and empowering communities to better protect children by advocating for child rights. The project will: -

Support 180 children in established daycentres providing early childhood development services, birth certificate registration, education mainstreaming, and informal education.

2. UK Partner / In-country partner: PAN UK / PAN Ethiopia Country / Region: Ethiopia / Lake Ziway Oromia Region

Project Summary

“Transitioning towards vegetable production and marketing under Agroecological Guarantee for Lake Ziway farmers and consumers.”

Helping Ethiopian vegetable farmers in Ziway to reduce and eliminate heavy use of highly hazardous pesticides (HHPs) by drawing on the successes of PAN Ethiopia’s work with thousands of cotton smallholder farmers. TRAID’s support to date has enabled PAN Ethiopia to take this work with vegetable farmers from pilot (2018) to proof of concept in 2022, to now having trained a total of 1,240 farmers by the end of 2024. This phase will: -

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TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

3. In-country partner: Grambangla UK Partner: N/A Country / Region: Bangladesh / Dhaka

Project Summary

“Providing a sustainable livelihood in the garment industry for vulnerable adolescent girls (14 – 17) to build a life away from waste picking and recycling on a landfill site.”

Grambangla is a long-standing Bangladeshi NGO and has developed a project over many years to educate the children of waste pickers working on a huge landfill site in Dhaka collecting recyclable materials for income. These workers are amongst the very poorest, and it is common for their children to become waste pickers when they grow up. The project aims to break this cycle of inter-generational poverty and extremely hazardous labour with education and training through established education centres and the Grambangla Technical Training Centre (GTTC). The project will: -

Support 60 adolescent girls to receive vocational training in tailoring and sewing, and employment links into the sector.

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TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

4. In-country partner: Manav Sansadhan Evam Mahila Vikas Sansthan (India) In-country partner: GoodWeave Nepal Foundation UK Partner: GoodWeave Foundation Country / Region: Nepal / Bagmati Gandaki and Lumbini Province

Project Summary

“Reducing inequality and child labour in textile worker communities in India and Nepal benefitting 1,400 children.”

We are once again supporting GoodWeave, a charity which focusses on eradicating child labour from the rug, textiles, and garment sector. The project tackles both remediation, and the prevention of child labour in textile communities in India and Nepal. These communities experience serious poverty and a distrust of the public school system meaning school-age children (6 – 14) miss out on education. They drop out and look for work instead resulting in vastly reduced life chances.

GoodWeave’s model addresses what it terms the ‘educational void’ for girls which puts them at high risk of child labour, child marriage and exploitation. A central plank of its work addresses the lack of awareness in textile communities around mental and physical well-being, health, personal ambitions, and the value of education.

GoodWeave inspections identify children being trafficked to work in textiles and on removing them from worksites, there is a long journey to rehabilitation. Some children are reunited with their family and integrated back into school. Others are orphans, or their parents can’t be found, and in those cases, centre-based rehabilitation is a child’s only option to live safely. The project will benefit around 1,400 children (700 will be newly enrolled, and around 700 already participating who will be able to continue): -

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TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

5. In-country partner: OBEPAB UK Partner: PAN UK Country / Region: Benin / West Africa

Project Summary

“Cultivating Benin’s organic cotton sector for better livelihoods, health and environment.”

With TRAID’s investment and support since 2009, OBEPAB with PAN UK has proven beyond doubt that organic cotton production is hugely beneficial to farmers and rural communities. Our commitment has helped OBEPAB scale up to double the size of its operation to support thousands more farmers to grow organic by attracting substantial additional funding from GIZ (the German Government) which began in 2021 ending in Nov 2024. This round of TRAID funding will enable OBEPAB to sustain the project as it stands in a transition period and PAN UK already has strong interest from the United Nations Environment Programme to support this successful work. This phase of the will: -

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TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Financial Review

For the year ended 31st December 2024, TRAID had incoming resources of £9,324,811 up 3% on the previous year (2023: £9,075,370), reflecting the ongoing strength of the retail revenue stream. Total resources expended were £9,429,787, up 16% on the previous year (2023: £8,096,805), largely reflecting increased investment in staff and premises to support the revenue generating activities and increased investment in overseas projects.

At 31st December 2024 net assets amounted to £7,654,906 (2023: £7,826,809) of which general unrestricted funds totalled £6,725,217 (2023: £4,282,677) and designated funds totalled £929,689 (2023: £3,544,132). TRAID’s bank & investment fund balance was £6,989,150 (2023: £7,489,380). This balance was sufficient to cover the charity’s reserve requirement as per TRAID’s reserves policy and the outstanding development funding commitments of £455,383.

Plans for the future

2025 will be the year that TRAID works towards mitigating an unprecedented increase in expenditure such as National insurance, utilities, and staff living wage costs; this will be achieved laying the foundation of increasing our fundraising and environmental impact through TRAID retail and an investment portfolio.

TRAID will continue its brand refresh ensuring that our tone of voice, brand and product is appealing to all demographics with an overarching aim to engage the public further with our activities, ensuring inclusivity to our mission, second hand clothing and charity retail. TRAID will also aim to increase sustainable clothing consumption by driving more footfall through TRAID retail, both in existing, new and pop up shops.

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, eradicating child labour 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 and TRAID communications will continue to deliver educational material.

Staff and Volunteering contribution

TRAID continues to be an accredited London living wage employer, providing employment for 171 staff.

Volunteer input during 2024, were 680 hours. No value has been assigned to these hours.

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TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

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. The charity’s reserves policy was updated in 2024 taking account of current risks and the operating environment. Based on good practice, in 2024 TRAID’s reserves retained totalled £5,787,276, consisting of a six-month operating cost of £4,234,889, an additional six-month fixed premises cost of £1,000,000, and outstanding ID commitments of £552,387.

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

Investment Policy

It is the policy of the Trustees to invest its surplus reserves in a mix of short-term and long-term portfolios. The trustees can understand and tolerate the volatility of the financial market and will monitor the performance on a quarterly basis. The maximum risk level set for the charity is 4 (medium. The time horizon for the short-term liquidity portfolio is up to one year. The time horizon for the long-term investment portfolio is more than five years. The trustees adopt an exclusionary policy to provide greater transparency on Environmental, Social and Governance (ESG) related issues within the portfolio.

The value of TRAID’s investments stood at £6,652,941 as of 31[st] December 2024.

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:

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.

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TEXTILE REUSE AND INTERNATIONAL DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the trustees have confirmed that there is no information that they are aware of which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

Auditor

Moore Kingston Smith LLP were appointed auditors to the company. A resolution proposing that they will be re-appointed as auditors of the company will be put to the Annual General Meeting.

The Trustees’ report, including the strategic report, was approved by the board of Trustees on …………… and signed on its behalf by:

Lekha Klouda

Chair of Trustees

Company registration number: 02143753

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

Opinion

We have audited the financial statements of Textile Reuse and International Development (‘the company’) for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including 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:

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 charitable company 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 related 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 charitable company'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.

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 contained within the annual report. 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.

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 course of 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 themselves. 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.

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

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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees (who are also the directors of the charitable company 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.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Auditor’s Responsibilities for the audit of the financial statements (continued)

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

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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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 objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company'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 company’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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

30 October 2025

Page 19

Textile Reuse and International Development Statement of Financial Activities For the year ended 31 December 2024

Note
Income and endowments
Charitable activities
5
Investment income
6
Total income
Expenditure
Expenditure on charitable activities
8,9
Other expenditure
12
Total expenditure
(Loss)/Gain on investment
19
Net income and net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 2023
Unrestricted
Total Funds
As restated
9,073,608 9,073,608 8,952,339
251,203 251,203 123,031
9,324,811 9,324,811 9,075,370
9,429,787 9,429,787 8,097,222
- - (417)
9,429,787 9,429,787 8,096,805
(66,927)
(66,927)
-
(171,903)
(171,903)
978,565
7,826,809 7,826,809 6,848,244
7,654,906 7,654,906 7,826,809
2024

The notes on pages 2 to 3 form part of these financial statements.

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

Page 20

Textile Reuse and International Development Balance Sheet As at 31 December 2024

Fixed assets
Note
Tangible fixed assets
16
Current assets
Investments
19
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Provisions
20
Net assets
Funds of the charity
Unrestricted funds:
Designated funds
General unrestricted funds
Total charity funds
22		 2024
2023
As restated
£
£
929,689
553,900
6,652,941
-
1,199,753
809,129
336,209
7,489,380
1,535,962
8,298,509
(1,296,205)
(858,119)
239,757
7,440,390
7,822,387
7,994,290
(167,481)
(167,481)
7,654,906
7,826,809
929,689
3,544,132
6,725,217
4,282,677
7,654,906
7,826,809

The notes on pages 2 to 3 form part of these financial statements.

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 , and are signed on behalf of the board by:

Lekha Klouda Chair of Trustees

Company registration number

02143753

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Textile Reuse and International Development Statement of Cash Flows Year ended 31 December 2024

Cash flows from operating activities
Net income
Adjustments for:
Depreciation of tangible fixed assets
Other interest receivable and similar income
(Gain) / loss on investments
Changes in:
Trade and other debtors
Trade and other creditors
Cash generated from operations
Net cash from operating activities
Cash flows from investing activities
Purchase of tangible assets
Purchase of listed investments
Sale of listed investments
Interest received
Net cash used in investing activities
Net (decrease)/ increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
2023
£
£
(171,903)
978,565
345,433
305,001
(251,203) (123,031)
66,927
-
(390,624) (211,293)
438,086
41,653
36,716
990,895
36,716
990,895
(721,222) (174,896)
(7,855,123)
-
1,135,245
-
251,203
123,031
(7,189,897) (51,865)
(7,153,181)
939,030
7,489,380
6,550,350
336,209
7,489,380

The notes on pages 2 to 3 form part of these financial statements.

Page 22

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024

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 2 Westlinks Alperton Lane, Wembley, HA0 1ER.

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

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus, in absence of any material uncertainties, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

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 amount due to Waltham Forest Council of £90,014 (2023: £90,634). 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 Textile Reuse and International Development (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.

Page 23

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024

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.

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.

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.

Page 24

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024

Fund accounting

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

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

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

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.

Pension costs

Staff and pension costs are recognised as incurred with all associated costs. The retirement benefits for specific employees of the trust are provided by a money purchase scheme. The Trust's obligation is restricted to their contributions.

Page 25

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024 4. Limited by guarantee The charity is is a Company limited by guarantee. The members of the company are the trustees named on page 2. In the event of the charity being wound up, the liability in respect of the guarantee is limited lo £10 per member of the charity. S. Charitable activities Unreslricled Funds Total Funds 2024 Unreslricled Funds Total Funds 2023 Retail sales Wholesale sales Other income 7,779,555 1,109,763 184,290 7,779,555 1,109,763 184,290 7,748,442 1,106,663 97,234 7,748,442 1,106,663 97,234 9,073,608 9,073,608 8,952,339 8,952,339 Charitable income is from diverting clothes and shoes from landfill. 6. Investment income Unreslricled Funds Total Funds 2024 Unreslricled Funds Total Funds 2023 Interest receivable 251,203 251,203 123,031 123,031 7. Expenditure on charitable activities by fund type Unreslricled Funds Total Funds 2024 Unreslricled Funds Total Funds 2023 Diverting clothes shoes from landill Overseas development projects Support cost 8,119,071 532,258 778,458 9,429,787 8,119,071 532,258 778,458 9,429,787 7,155,497 539,726 401,999 8,097,222 7, 155,497 539,726 401.999 8,097,222 Page 26

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024 8. Expenditure on charitsble activities by activity type Activities undertaken directly Grant funding of activities Total Funds 2024 Total Funds 2023 Support cost Diverting clothes and shoes from landill Overseas development projects Governance cost 8,119,071 757,608 8,876,679 532,258 20,850 9,429,787 7,542,496 539,726 15,000 8,097.222 532,258 20,850 778,458 9. Analysis of support costs Total 2024 Total 2023 Staff costs Governance cost Depreciation Other costs 556,797 20,850 4,002 196.809 778 458 303,916 15,000 1,990 81.093 401999 10. Analysls of grants 2024 2023 Restated Grant to institutions Pan UK Nagorik Grambangla Goodweaves Other grants awarded 374,687 71,925 25,646 60,000 431,623 69,000 24,703 14,400 539,726 532,258 Page 27

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024 11. Other expenditure Unrestricted Totsl Funds Funds 2024 Unrestricted Funds Total Funds 2023 (Gainsllloss on disposal of tangible fixed assets held for charity's own use 417 417 12. Net income Net income is slated after chargingllcredilingl.. 2024 2023 Depreciation of tangible fixed assets Loss on disposal of tangible fixed assets 345,433 305,001 417 13. Auditors remuneration 2024 2023 Fees payable for the audit of the financial ststemenls 20,850 15,000 14. Staff costs The total staff costs and employee benefits for the reporting period are analysed as follows.. 2024 2023 Wages and salaries Social Security Costs Pension Costs 3,931,349 342,494 76,768 4,350.611 3,796,579 323,396 81,277 4,201.252 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 2024 were £76,76812023". £81,277>. 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 and HR Director, Commercial Director, Operations Director, Head of Retail, International Projects Manager, Head of Partnerships, Communications and MArkeling Manager, and Recruitment Training Manager. Total benefits received by the key management personnel in the year amounted to £556,79712023.. £528,832). Page 28

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024 14. Stsff Costs (wntinugd) The average head count of employees during the year was 171 12023.. 1871. The average number of full- time equivalent employees during the year is analysed as follows.. 2024 No. 110 55 2023 No. 125 52 Shops Collecting, sorting and distribution Management and administration Recycling 171 187 The number of employees whose remunerati'on for the year fell within the following bands, were.. 2024 No. 2023 No. £60,000 to £69,999 £70,000 to £79,999 £80,000 to £89,999 £120,000 10 £129,999 15. Trustee remuneration and expenses None of the trustees received remuneration for their services during the year12023'. £nill. None of the trustees were reimbursed for any expenses during the year12023". £nill. The charitable company paid for Iruslee indemnity insurance during the year for the premium of £53012023.. £4511. Page 29

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024 16. Tangible fixed assets Long Leasehold Containers property Motor Vehicles Fixtures, fittings and equipment Total Cost Al 1 Janurary 2024 Additions Disposals 167,481 493,175 649,760 77,454 1,931,764 643,768 3,242,180 721,222 At 31 December 2024 167,481 493,175 727,214 2,575,532 3,963,402 Depreciation Al 1 Janurary 2024 Charge for the year Disposals 119,064 4,002 493,175 536,270 78,778 1,539,771 262,653 2,688,280 345,433 At 31 December 2024 123,066 493,175 615,048 1,802,424 3,033,713 Carrying amount At 31 December 2024 44,415 112,166 773,108 929,689 At 31 December 2023 48,417 113,490 391,993 553,900 17. Debtors 2024 2023 Trade debtors Prepayments and accrued income VAT debtor Other debtors 107,419 606,648 199,005 286,681 1,199,753 56,095 464,489 288,545 809,129 The debtors above include the following amounts falling due after more than one year.. 2024 2023 Other debtors 286,681 288,545 Other debtors relates lo rent deposits which are repayable in more than one year. The rent deposits are charged as security for amounts payable under the respective leases. Page 30

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024 18. Creditors: amounts falling due within one year 2024 2023 Trade Creditors Accruals and Deferred income Grant commitments Social Security and other taxes 382,155 375,966 455,383 82,701 1,296,205 205,234 208,335 444,550 858,119 19. Investments 2024 2023 Opening balance as at 1 January 2024 Additions in the period Disposals al cost In the period Gainlloss on investments Closing value as at 31 December 2024 7,855, 123 11,135,245) 166,9271 6 652,941 20. Provisions Dilapidations Al 1 January 2024 and 31 December 2024 167,481 21. Analysls of charltable funds Designated funds The income funds of the charity include the following designated funds. Designated funds represent the nel book value of fixed assets al 31 December 2024 and also amounts which have been set aside out of unreslricled funds by the Iruslees to support international development projects. The balance on each designated fund relating to international development projects at 31 December 2024 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 14 years. Balance al 1 January 2024 Resources expended Transfers Balance at 31 December 2024 Fixed Asset Fund Pan UK Amit Consultancy READ Grambangla Unnayan Committee Nagorik Uddyog Warehouse Fund 553,900 352,375 10,800 83,057 10,000 34,000 2,500,000 3,544,132 1345,4331 1352,3751 110,8001 183,0571 110,0001 134,0001 721,222 929,689 2,500,000) 1,778,778 835,665 929,689 Page 31

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024 21. Analysis of charitable funds Icontinuedl Fixed Assets Fund- This represents the net book value of the fixed assets at 31 December 2024. 22. Analysis of net assets between funds Unrestricted Funds Designated Funds Totsl Funds 2024 Fixed Assets Investments Current assetsllliabillitiesl Provisions 929,689 929,689 6,652,941 239,757 1167.4811 7,654,906 6,652,941 239,757 1167,4811 6,725,217 929,689 Unrestricted Funds As reststed Designated Funds Total Funds 2023 As reststed Fixed assets Investments Current assetsllliabillitiesl Provisions 553,900 553,900 4,450,158 1167,4811 4,282,677 2,990,232 7,440,390 1167,4811 7,826,809 3,544,132 23. Prlor year adjustments The prior period adjustment reflects the underaccrual of grant commitments for the 2023 year. Year ended 31 December 2023 A$ previously reported Adjustment As restated Balance Sheet Creditors Unrestricted Reserves Total reserves 413,569 4,727,227 8,271,359 444,550 1444,5501 1444,5501 858,119 4,282,677 7,826,809 Statement of Financial Activity Expenditure on charitable activities 7,981,841 115,381 8,097,222 Page 32

Textile Reuse and International Development Notes to the financial statements Year ended 31 December 2024 24. Analysis of changes in net debt Al 1 Jan 2024 Movement in At cash 31 Dec 2024 Cash at bank and in hand 7,489,380 7,153,171 336,209 25. Operating lease commitments The total future minimum lease payments under non-cancellable operating leases are as follows.. 2024 2023 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years 1,649,500 7,471,263 6,718,748 1,302,368 2,634,497 1,557,781 26. Related partles The charity is contracted with super.mkl CIC. The Chief Executive Officer is a member and director al super.mkl CIC. There was £748,42812023".£415,5081 of retail ineome generated through this partnership with associated commission costs of £157,44812023'. £83,102). Page 33