Principal activities of the company

The principal activity of WaterAid Trading Limited ("the Company") is identifying and undertaking commercial licensingdeals.

Additional information

The Company made a profit before Deed of Covenant to the parent, WaterAid, of £368,101 (2020: £1,404,521).The Company continues to be successful generating profits that are covenanted to the parent, WaterAid. Income is raisedprimarily from royalties and licensing contracts whereby companies pay for the use of our logo in cause related marketinginitiatives. The Trading partnerships in 2020 - 2021 included Armani, Belu Water Ltd, Fujifilm Europe GmbH, Glastonburyand Soaper Duper. The level of income was significantly affected by COVID-19, this included a £859k reduction in BeluWater Ltd from 2019-2020 reflecting the impact of the pandemic on the hospitality industry, making Belu unprofitable forthe first time.Within costs of sales is a charge of £19,735 (2020: £70,174) being the cost to the parent of utilising the parent's nameand logo.The Directors do not expect any significant changes to the type of revenue generating activities due to take place in thenext financial year, however we do begin to forecast regular income from Fempowered sales in 2021 – 2022.The risk assessment process undertaken by the parent encompasses the activities of the Company and the Directors aresatisfied that the general risks faced by the Company have been identified and reasonable steps taken to mitigate thoserisks have been put in place.The Company, in conjunction with the treasury department of its parent, has considered the financial risks the Companyis exposed to and has in place a risk management programme that seeks to limit the adverse effects of key risks on thefinancial performance of the Company. The Company does not use derivative financial instruments to manage risk, so nohedge accounting is applied.Given the size of the Company, the Directors have not delegated the responsibility of monitoring financial risk to a subcommitteeof the Board. The policies set by the Board of Directors, are implemented by the parent's finance departmenton behalf of the Company. The department has procedures to manage interest rate risk, credit risk, and in circumstanceswhere it would be appropriate to use financial instruments to manage these.The Company is exposed to price risk as a result of its operations. However, given the size of the Company’s operations,the costs of managing exposure to price risk exceed any potential benefits. All significant contracts are managed througha competitive procurement process. The Directors will revisit the appropriateness of this policy should the Company’soperations change in size or nature. The Company has no exposure to equity securities price risk as it holds no listed orother equity investments.The Company has implemented policies to manage the recoverability of debts in an optimal manner given costlimitationsA qualifying third party indemnity provision was in force for the benefit of one or more Directors during the financial year.The Company, in association with the treasury department of its parent, has short-term debt finance that is designed toensure that the Company has sufficient available funds for operations and any planned expansion.The Company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include only cashbalances which attract floating rates of interest.The Directors confirm they have reviewed all other major risks the Company is exposed to and have established systemsto mitigate those risks.In line with prior years, a Deed of Covenant is in place whereby all profits generated by the Company are distributed tothe parent in the form of a 'Gift Aid' payment.The Company will make a payment of £368,101 in 2021 (2020: £1,404,521) to its parent, WaterAid, under a Deed ofCovenant.

This report was approved by the board of directors on 15 September 2021
and signed on behalf of the board by:

Name: Tim Wainwright
Status: Director