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REGISTERED COMPANY NUMBER: 06792524 (England and Wales)

REGISTERED CHARITY NUMBER: 1130203

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2026

for

Ephesea UK

| Ephesea UK |

Contents of the Financial Statements

for the Year Ended 31 March 2026

| Page |

| Report of the Trustees | 1 |  | to |  | 9

| Independent Examiner's Report | 10 |

| Statement of Financial Activities | 11 |

| Balance Sheet | 12 |  | to |  | 13

| Cash Flow Statement | 14 |

| Notes to the Cash Flow Statement | 15 |

| Notes to the Financial Statements | 16 |  | to |  | 24

| Ephesea UK (Registered number: 06792524) |

Report of the Trustees

for the Year Ended 31 March 2026

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2026. The trustees have adopted the provisions of Accounting and Reporting by Charities: 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Charity's objectives (as amended at the 2017 Annual Members' Meeting) are to promote for the benefit of the public the protection and conservation of the world's forests. In particular, by:

1. Raising awareness of the value of responsibly managed forests

2. Promoting and supporting a programme of voluntary forest management certification and chain of custody certification

3. Developing consensus around standards for good forest management; and

4. Increasing public awareness about independent forest certification.

Strategic Priorities

The FSC UK 2024-2027 Strategic Plan builds on our previous three-year plans and is developed in the context of FSC's global vision and mission and our own charitable objectives.

- Promote the value of forests and the products, ecosystem services and social benefits they provide

- Encourage stakeholder engagement and support FSC globally to ensure that the FSC system is fit for purpose, accessible, relevant and trusted

- Improve forest management in the UK for all sizes and types of forest

- Provide support and guidance to UK-based licence holders and enable them to realise the full potential of their FSC licence

- Promote the FSC system, FSC certification and the specification of FSC-certified products

These strategic priorities are underpinned by our work to:

- Ensure that FSC UK pursues its objectives as a registered charity, meets its legal and charitable obligations and operates as a professional organisation that values its people.

Activities demonstrating most significant progress are highlighted in the Achievements and Performance section.

| Ephesea UK (Registered number: 06792524) |

Report of the Trustees

for the Year Ended 31 March 2026

OBJECTIVES AND ACTIVITIES

Public benefit

Deforestation and forest degradation continue to be global issues, impacting climate change and biodiversity loss. Deforestation destroys essential ecosystem services, leading to the loss of livelihood opportunities.

FSC is a global, not-for-profit organisation dedicated to the promotion of responsible forest management worldwide. The FSC system enables businesses and consumers to make informed choices about the forest products they buy and to create positive change by engaging the power of market dynamics.

Global Vision: The true value of forests is recognised and fully incorporated into society worldwide. FSC is the leading catalyst and defining force for improved forest management and market transformation, shifting the global forest trend toward sustainable use, conservation, restoration, and respect for all.

Global Mission: FSC will promote environmentally appropriate, socially beneficial, and economically viable management of the world's forests.

FSC UK works to develop and maintain a voluntary, auditable forest management standard for the UK, which complies with the FSC Principles and Criteria for responsible forest management. FSC forest management certification requires that forest management is not just environmentally appropriate but also socially beneficial and therefore protects the rights of those who live, work and play in the forest.

FSC UK also works to stimulate demand for FSC-certified products, empowering both businesses and consumers to easily identify and source forest products from FSC-certified forests, verified reclaimed sources and/or other controlled sources. Half of people in the UK surveyed in 2023 (FSC UK Consumer Survey via Kantar) were of the belief that all wood-based products available in the UK should be made from sustainable sources and a further quarter thought at least some should meet this standard. 60% thought that consumers have a responsibility to ensure that the products they buy, and the packaging they use, are responsibly sourced, but 71% held businesses responsible for the sustainability of their products and packaging. Credible certification supports compliance with national and international timber and forest-products, and green claims, legislations.

The trustees have had regard to the Charity Commission's guidance on public benefit when exercising any powers or duties to which the guidance is relevant.

| Ephesea UK (Registered number: 06792524) |

Report of the Trustees

for the Year Ended 31 March 2026

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

Priority: Promote the value of forests and the products, ecosystem services and social benefits they provide.

Forests play a vital role in enabling and maintaining life and help to mitigate global challenges of climate change and biodiversity loss. At the same time, forest products are increasingly important as renewable materials that can be a main factor in enabling the bio-based and circular economy which the world needs to develop. Responsible forestry does more than protect the health and resilience of forests - it also protects the wellbeing of the people who live and work in them. These people include community and family forest managers, Indigenous Peoples living on their ancestral lands, and workers whose livelihoods depend on forest products.

FSC's vision is that the true value of forests is recognised and fully incorporated into society worldwide. Forest management certification and ecosystem services verification provide tools to deliver this. We continue to promote FSC certification and demonstrate the positive impacts on our forests whilst also working with others to develop additional tools and solutions.

A Sustainable Forestry Symposium, co-hosted by the Zoological Society of London and FSC UK, brought together participants from different parts of the timber supply chain as well as representatives from the financial sector. FSC Verified Impact was presented and FSC UK participated in a panel discussion on unlocking capital for sustainable forest management.

We continue to work with Llais y Goedwig to develop their programme for a group scheme of small and community woodlands across the UK which they hope will, in time, include FSC Verified Impacts.

FSC UK exhibited at and sponsored WoodBUILD 2025, organised by Woodknowledge Wales. As part of the 'Reframing the Value of our Forests' breakout session FSC UK presented on FSC Verified Impact and how this is helping to maintain and enhance forest ecosystem services.

Snaizeholme in Yorkshire and Brynau Farm in South Wales, both part of the Woodland Trust estate, were audited for Verified Impact in April and May 2025. FSC UK worked with the Woodland Trust to create short films about both sites.

Priority: Encourage stakeholder engagement and support FSC globally to ensure that the FSC system is fit for purpose, accessible, relevant and trusted.

The Global Strategy recognises that FSC's core strength is to co-create solutions. FSC convenes members and other partners from diverse interests to set a global benchmark for forest stewardship and deliver results that matter for the forests and the people who depend on them. FSC UK can play an important role on encouraging UK stakeholder engagement.

FSC is widely recognised as a credible forest certification scheme and maintaining this credibility is fundamental to the scheme's success. As a long-established Network Partner, FSC UK is well placed to support FSC as it works to deliver a trusted, accessible, fit for purpose system, providing input on the potential implications of proposed activities and encouraging stakeholders to engage as appropriate as well as working to maintain FSC's integrity and credibility in the UK.

The positive engagement of relevant trade associations and industry bodies with FSC is important in building industry confidence in, and uptake of, the FSC system. FSC UK continues to build relationships with such associations, identifying opportunities for collaboration and engagement.

In September, the Annual Members' Meeting took place at WWF's Living Planet Centre. The event was combined with a celebration of FSC UK's 30th Anniversary with over 80 attendees.

| Ephesea UK (Registered number: 06792524) |

Report of the Trustees

for the Year Ended 31 March 2026

Priority: Improve forest management in the UK for all sizes and types of forest.

It is a fundamental requirement, in terms of both FSC UK's charitable objectives and our role as an FSC Network Partner, that we have an approved national forest stewardship standard. We need to identify mechanisms to reduce the financial and administrative burden on smallholders whilst ensuring that FSC's high forestry standards are maintained. We also have a wider role to play in promoting better forest stewardship in all forests.

Following feedback from FSC International the members of the UK Woodland Assurance (UKWAS) Working Group worked to achieve consensus on a revised, third submission, pre-approval draft of an FSC compliant UKWAS 5 for re-submission to FSC International.

Following stakeholder feedback the UK Woodland Assurance (UKWAS) Working Group worked to review and revise the proposed UKWAS 5 requirements for the management of game release pens. The revision will be included in the pre-approval draft of the FSC compliant UKWAS 5.

Our Forest Standards Manager met with three group scheme managers and two Forest Management Certificate Holders as well as responding to queries and supporting numerous other Certificate Holders.

We continue to support Royal Forestry Society (RFS) Excellence in Forestry Awards, sponsoring the award for Small and Farm Woodlands.

Priority: Provide support and guidance to UK-based licence holders and enable them to realise the full potential of their FSC licence.

It is essential that the relationship we have with our licence holders is proactively managed and that we support those companies committed to the FSC system. As well as providing updates and guidance on the FSC system, we also want to encourage licence holders to make the most of their FSC status and promote their FSC-certified products. Alongside this, it is important that we address unauthorised use of our trademarks which potentially undermines both our credibility and the market advantage that our licence holders should benefit from.

Certificate Holder retention for the period remains high at 91% and feedback from those that contact FSC UK for support is positive. Enquiries to our email and phone helplines are logged to monitor enquiry topics and volumes. We receive a high number of questions related to FSC chain of custody certification and compliance/requirements. The use of the FSC trademarks is also a common theme, FSC licence holders are surveyed by FSC International and UK respondents are asked specifically for their feedback on interactions with FSC UK. The 2025 results indicate a high level of satisfaction, particularly in terms of guidance and information and knowledge on FSC system and standards

During the reporting period, nine new FSC promotional licence agreements were issued. The work to support our promotional licence holders to use our trademarks can significantly increase our reach and help to embed FSC commitments within the companies themselves. Specification of FSC-certified and labelled products is also a driver for FSC certification through retailer supply chains.

Free online training is available to Certificate Holders and Promotional Licence Holders and this continues to be popular, with 569 registrants during the year.

FSC UK's Trademark Enforcement Officer resolved 401 trademark violation cases.

| Ephesea UK (Registered number: 06792524) |

Report of the Trustees

for the Year Ended 31 March 2026

Priority: Promote the FSC system, FSC certification and the specification of FSC-certified products.

As a strong market country, the UK can have a significant impact on uptake on FSC certification of forests globally by driving demand for certification and certified products throughout the supply chain. Raising public awareness of FSC and, in turn, driving consumer demand is one aspect of this, but FSC UK recognises that this can be best achieved in conjunction with businesses and NGOs. In many cases, it is the procurement policies of retailers and other businesses and organisations that creates the demand rather than the consumer and emphasis will be placed on this work.

Our Forest Matters newsletter included case studies on Neville Joinery; Blake, Ruddocks, JLR, The Larch Cladding Company, the National Trust, the Woodland Trust, Archwood Group, Taylor Maxwell, Border Oak, Woodcycle and Rectella.

An omnibus survey of UK consumers was commissioned and carried out in March. Key results include logo recognition of 73%, with 22% of respondents also fully understanding its meaning. FSC purchase preference is 75%. Preference for FSC-certified products is highest amongst Gen Z at 83%.

FSC Forest Week 2025 took place from 20-26 September. 100 UK Certificate Holders and Promotional Licence Holders registered to take part. To help increase our reach on social media for FSC Forest Week, we worked with four Instagram influencers to produce reels about FSC.

We presented at the Construction & Trade Showcase in November at the NMITE Skylon Campus near Hereford; were part of a panel promoting timber and FSC certification to London Architects; and had a poster stand at the ICF Ancient Woodlands Conference promoting FSC Verified Impacts.

We continue to deliver annual presentations to Bangor and Harper Adams university forestry students.

| Ephesea UK (Registered number: 06792524) |

Report of the Trustees

for the Year Ended 31 March 2026

FINANCIAL REVIEW

Income

Over the 2025-26 financial year, income exceeded expenditure by £21,913 We started the year with an opening balance from the previous period of £1,085,144 and ended with a carry-forward of £1,107,057.

Most of the income is received under the Principal Cooperation, Service and Licence Agreement with FSC Global Development. The annual fee is calculated based on the Resource Allocation and Investment for the Network (RAIN) model. Strategic funding is also allocated for specific projects. Some of these projects are managed by other FSC Network Partners and the funding is received and administered by them. The income received indirectly from FSC Global Development through this strategic funding is included within the total RAIN figure.

Expenditure

Expenditure was lower this year compared with last year (£622,852 compared with £689,643). An Impact Investment Fund was launched in 2024 to support projects that help deliver FSC's mission and this resulted in higher expenditure in 2024/25.

Investments

£400,001 was transferred to Rathbones Investment Management in December 2022, followed by £30,010 in March 2026. The value of the holdings at 31st March 2026 was £472,824 (2025: £429,357) and the balance, held in cash, amounted to £2,709 (2025: £2,884). Dividend and interest income for the period was £11,299.

Investment policy and objectives

The financial objective of the investments is to produce some financial return, within an acceptable level of risk and in line with the agreed ethical policy, to help deliver the objectives of the charity.

The trustees of Ephesea UK have accepted a low to medium degree of risk for their investment portfolio and will ensure that their ability to meet future planned expenditure is not compromised by over-investment. The responsibility for the day to day management of the charity's investment assets lies with Rathbones Greenbank who have discretionary management powers with effect from 18 December 2022 under the investment policy agreement which was established by the charity on 15 June 2022.

A sub-committee of the Board of Trustees has been established to advise the wider Board on investments. Decisions on investments are undertaken by the Board based on input from the sub-committee.

Reserves Policy

The Board considers the charity's requirements for reserves in light of the main risks to the organisation. A policy has been established whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be equivalent to 6 months' of expenditure.

The reserves are needed to meet the working capital requirements of the charity and, in the worse-case scenario, to cover the cost of closing the charity. The Board is confident that the charity would be able to continue at worthwhile activity levels in the event of a temporary significant drop in funding and that the estimated cost of closing the charity does not exceed 50% of the reserves.

| Ephesea UK (Registered number: 06792524) |

Report of the Trustees

for the Year Ended 31 March 2026

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Ephesea UK, incorporated in England & Wales on 15 January 2009, is a private company limited by guarantee (as defined by the Companies Act 2006), which is also an association of members registered as an incorporated charity (for simplicity, this report refers henceforth to the company as 'the charity'). The charity is governed under Memorandum and Articles of Association that sets out its objects and powers. These were updated at the 2017 ANNUAL MEMBERS' MEETING in agreement with the membership.

Membership of the charity is open to individuals and organisations who are:

- Members of the Forest Stewardship Council AC;

- Ordinarily based or resident in the UK.

Recruitment and appointment of new trustees

The charity is managed by a board of trustees of no less than four and no more than twelve. At least three trustees have to be members of the Forest Stewardship Council AC and ordinarily based or resident in the UK. The aim shall be to achieve chamber balance with at least one trustee and, normally, no more than four trustees representing each of the three chambers. However, the board reserves the right to increase the maximum to five in any one chamber where the individuals bring specific skills and expertise required by the Charity.

Trustees are either proposed or volunteer. They may sit on the board until the next annual members' meeting, when they have to seek election from the membership. A trustee pack, outlining trustee responsibilities, is given to all new trustees. Once elected, a trustee may sit on the board for a term of 3 years (from the date of joining the board) before seeking re-election. There is no limit to the number of terms for which a trustee may seek re-election. Re-elected trustees serve a term of 3 years from the date of re-election.

Trustees may elect from amongst themselves a chair, a vice chair and a treasurer.

Decision Making and Reporting

The board of trustees met three times during the year. Board meetings are attended by the Executive Director and, by invitation, members of staff. Between meetings, the Executive Director provides trustees with an Interim Report by email. Online meetings between some or all of the trustees may be arranged at any time and task-and-finish groups or sub-groups of a small number of trustees can be established to address particular issues.

Day to day management of the charity falls to the Executive Director, supported by the permanent staff. The Executive Director is responsible for ensuring that the charity delivers a range of services that meet its Objects and Strategic Priorities.

Wider network

The charity (under the title of FSC United Kingdom) is a National Partner of the wider, international FSC network. The charity receives an annual fee from FSC Global Development Gmbh and this is calculated according to the Resource Allocation and Investment for the Network (RAIN) model. The RAIN fee is paid to FSC National Partners that have agreed and signed a valid Principle Cooperation, Service and License Agreement with FSC Global Development. In the reporting period over 65% of income was generated via the RAIN fee.

The charity participates in FSC's European and Global networks and supports the Global Strategy. FSC International developed its global plan for 2020-2026. The FSC UK strategic plan has been developed in the context of FSC's global vision and mission and our own charitable objectives.

Related parties

The charity has contractual relationships and/or memoranda of understanding with some organisations to facilitate cooperation in the pursuit of its charitable objectives and guard against misunderstandings over areas of common interest.

| Ephesea UK (Registered number: 06792524) |

Report of the Trustees

for the Year Ended 31 March 2026

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

06792524 (England and Wales)

Registered Charity number

1130203

Registered office

The Billiard Room

Town Hall

Great Oak Street

Llanidloes

Powys

SY18 6BN

Trustees

J B Kirkpatrick (Chair)

M Bekin (Vice-Chair)

M C Poole (Treasurer)

S Jennings

H Kwisthout

C McDermott

H van Hensbergen

O Davies

M FitzHerbert

I Baker (appointed 24.4.25)

J Griffin (appointed 24.4.25)

Independent Examiner

Morgan Griffiths LLP

Chartered Accountants

Cross Chambers

9 High Street

Newtown

Powys

SY16 2NY

Bankers

Co-Operative Bank plc

PO Box 101

1 Balloon Street

Manchester

M60 4EP

Management Team

Rosie Teasdale (Executive Director)

Beth Bennett (Business Development Manager)

Tallulah Chapman (Communications Manager)

Rachel Hembery (Operations Manager)

Andrew Sharkey (Forest Standards Manager)

Karen Paterson (Forests & Ecosystem Services Manager) (resigned 31.10.25)

Charity Name

The charity is also known as Forest Stewardship Council® (FSC®) United Kingdom (UK) and permutations thereof.

| Ephesea UK (Registered number: 06792524) |

Report of the Trustees

for the Year Ended 31 March 2026

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 28 July 2026 and signed on its behalf by:

M C Poole - Trustee

Independent Examiner's Report to the Trustees of

Ephesea UK

Independent examiner's report to the trustees of Ephesea UK ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2026.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1. | accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

2. | the accounts do not accord with those records; or

3. | the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4. | the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Thomas Landers BA FCA

Morgan Griffiths LLP

Chartered Accountants

Cross Chambers

9 High Street

Newtown

Powys

SY16 2NY

28 July 2026

| Ephesea UK |

Statement of Financial Activities

(Incorporating an Income and Expenditure Account)

for the Year Ended 31 March 2026

| 31.3.26 |  | 31.3.25

| Unrestricted |  | Restricted |  | Total |  | Total

| funds |  | funds |  | funds |  | funds

| Notes | £ | £ | £ | £ |

INCOME AND ENDOWMENTS FROM

Donations | 2 | 741 |  | - |  | 741 |  | 140 |

Charitable activities | 5

RAIN/ACF | 437,877 |  | - |  | 437,877 |  | 469,256 |

Membership | 42,570 |  | - |  | 42,570 |  | 35,981 |

Other trading activities | 3 | 138,374 |  | - |  | 138,374 |  | 144,825 |

Investment income | 4 | 21,106 |  | - |  | 21,106 |  | 24,676 |

Total | 640,668 |  | - |  | 640,668 |  | 674,878 |

EXPENDITURE ON

Charitable activities | 6

Forestry | 78,346 |  | - |  | 78,346 |  | 94,074 |

Licence holder support | 254,529 |  | - |  | 254,529 |  | 245,182 |

Stakeholder Engagement | 99,578 |  | - |  | 99,578 |  | 74,169 |

Promoting FSC | 174,698 |  | - |  | 174,698 |  | 138,320 |

Value of Forests | 45,701 |  | - |  | 45,701 |  | 42,902 |

Impact Investment Fund | (30,000 | ) | - |  | (30,000 | ) | 94,996 |

Total | 622,852 |  | - |  | 622,852 |  | 689,643 |

Net gains/(losses) on investments | 4,097 |  | - |  | 4,097 |  | (5,717 | )

NET INCOME/(EXPENDITURE) | 21,913 |  | - |  | 21,913 |  | (20,482 | )

RECONCILIATION OF FUNDS

Total funds brought forward | 1,085,144 |  | - |  | 1,085,144 |  | 1,105,626 |

TOTAL FUNDS CARRIED FORWARD | 1,107,057 |  | - |  | 1,107,057 |  | 1,085,144 |

| Ephesea UK (Registered number: 06792524) |

Balance Sheet

31 March 2026

| 31.3.26 |  | 31.3.25

| Notes | £ | £ |

FIXED ASSETS |

Tangible assets | 14 | 6,670 |  | 4,630 |

Investments | 15 | 472,824 |  | 429,357 |

479,494 |  | 433,987 |

CURRENT ASSETS |

Debtors | 16 | 153,820 |  | 173,754 |

Cash at bank and in hand | 646,060 |  | 717,578 |

799,880 |  | 891,332 |

CREDITORS |

Amounts falling due within one year | 17 | (172,317 | ) | (240,175 | )

NET CURRENT ASSETS | 627,563 |  | 651,157 |

TOTAL ASSETS LESS CURRENT LIABILITIES | 1,107,057 |  | 1,085,144 |

NET ASSETS | 1,107,057 |  | 1,085,144 |

FUNDS | 20

Unrestricted funds | 1,107,057 |  | 1,085,144 |

TOTAL FUNDS | 1,107,057 |  | 1,085,144 |

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2026 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a) | ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b) | preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

| Ephesea UK (Registered number: 06792524) |

Balance Sheet - continued

31 March 2026

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

The financial statements were approved by the Board of Trustees and authorised for issue on 28 July 2026 and were signed on its behalf by:

M C Poole - Trustee

| Ephesea UK |

Cash Flow Statement

for the Year Ended 31 March 2026

| 31.3.26 |  | 31.3.25

| Notes | £ | £ |

Cash flows from operating activities

Cash generated from operations | 1 | (48,019 | ) | 62,298 |  |

Net cash (used in)/provided by operating activities | (48,019 | ) | 62,298 |  |

Cash flows from investing activities

Purchase of tangible fixed assets | (5,235 | ) | (515 | ) |

Purchase of fixed asset investments | (39,370 | ) | (7,799 | ) |

Interest received | 21,106 |  | 24,676 |  |

Net cash (used in)/provided by investing activities | (23,499 | ) | 16,362 |  |

Change in cash and cash equivalents in the reporting period | (71,518 | ) | 78,660 |  |

Cash and cash equivalents at the beginning of the reporting period | 717,578 |  | 638,918 |  |

Cash and cash equivalents at the end of the reporting period | 646,060 |  | 717,578 |  |

| Ephesea UK |

Notes to the Cash Flow Statement

for the Year Ended 31 March 2026

1. | RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

| 31.3.26 |  | 31.3.25

£ | £ |

| Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) | 21,913 |  | (20,482 | ) |

| Adjustments for:

| Depreciation charges | 3,195 |  | 2,779 |  |

| (Gain)/losses on investments | (4,097 | ) | 5,717 |  |

| Interest received | (21,106 | ) | (24,676 | ) |

| Decrease in debtors | 19,934 |  | 20,904 |  |

| (Decrease)/increase in creditors | (67,858 | ) | 78,056 |  |

| Net cash (used in)/provided by operations | (48,019 | ) | 62,298 |  |

2. | ANALYSIS OF CHANGES IN NET FUNDS

| At 1.4.25 | Cash flow | At 31.3.26

£ | £ | £ |

| Net cash |

| Cash at bank and in hand | 717,578 |  | (71,518 | ) | 646,060 |  |

717,578 |  | (71,518 | ) | 646,060 |  |

| Total | 717,578 |  | (71,518 | ) | 646,060 |  |

| Ephesea UK |

Notes to the Financial Statements

for the Year Ended 31 March 2026

1. | ACCOUNTING POLICIES

| Basis of preparing the financial statements

| The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: 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) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

| Income

| All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

| Expenditure

| Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

| Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

| Governance costs

| Governance costs are those incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.

| Allocation and apportionment of costs

| Support costs have been apportioned to activities based on the apportionment of salary costs.

| Tangible fixed assets

| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

| Fixtures and fittings | - | 50% on cost and 15% on reducing balance

| Computer equipment | - | 33% on cost

| Taxation

| The charity is exempt from corporation tax on its charitable activities.

| Fund accounting

| Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

| Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

| Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

| Ephesea UK |

Notes to the Financial Statements - continued

for the Year Ended 31 March 2026

1. | ACCOUNTING POLICIES - continued

| Foreign currencies

| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

| Pension costs and other post-retirement benefits

| The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

| Operating leases

| Costs in respect of operating leases are charged to the statement of financial activities on a straight line basis over the term of the lease.

2. | DONATIONS

| 31.3.26 |  | 31.3.25

£ | £ |

| Donations | 741 |  | 140 |  |

3. | OTHER TRADING ACTIVITIES

| 31.3.26 |  | 31.3.25

£ | £ |

| Trademark Licensing | 134,894 |  | 143,300 |  |

| Training | 500 |  | 1,525 |  |

| Consultancy | 2,980 |  | - |  |

138,374 |  | 144,825 |  |

| Consultancy income includes fees paid by FSC for specific services beyond those covered under the Activities Compensation Fee.

4. | INVESTMENT INCOME

| 31.3.26 |  | 31.3.25

£ | £ |

| Deposit account interest | 9,807 |  | 12,974 |  |

| Investment income | 11,299 |  | 11,702 |  |

21,106 |  | 24,676 |  |

| Ephesea UK |

Notes to the Financial Statements - continued

for the Year Ended 31 March 2026

5. | INCOME FROM CHARITABLE ACTIVITIES

| 31.3.26 |  | 31.3.25

| Activity | £ | £ |

| ACF / RAIN | RAIN/ACF | 437,877 |  | 469,256 |  |

| FSC Membership | Membership | 42,570 |  | 35,981 |  |

480,447 |  | 505,237 |  |

| The Resource Allocation and Investment for the Network (RAIN) income includes fees paid for work undertaken by FSC UK on collaborative projects funded by FSC International under the RAIN model.

6. | CHARITABLE ACTIVITIES COSTS

| Grant |

| funding of |

| Direct | activities | Support |

| Costs (see | (see note | costs (see |

| note 7) | 8) | note 9) | Totals

£ | £ | £ | £ |

| Forestry | 64,414 |  | - |  | 13,932 |  | 78,346 |  |

| Licence holder support | 201,311 |  | - |  | 53,218 |  | 254,529 |  |

| Stakeholder Engagement | 82,384 |  | - |  | 17,194 |  | 99,578 |  |

| Promoting FSC | 142,359 |  | - |  | 32,339 |  | 174,698 |  |

| Value of Forests | 37,430 |  | - |  | 8,271 |  | 45,701 |  |

| Impact Investment Fund | - |  | (30,000 | ) | - |  | (30,000 | ) |

527,898 |  | (30,000 | ) | 124,954 |  | 622,852 |  |

7. | DIRECT COSTS OF CHARITABLE ACTIVITIES

| 31.3.26 |  | 31.3.25

£ | £ |

| Staff costs | 449,115 |  | 402,747 |  |

| Telephone | 707 |  | 827 |  |

| Postage and stationery | 1,229 |  | 2,263 |  |

| Travel & subsistence | 28,066 |  | 13,259 |  |

| Publications & subscriptions | 13,202 |  | 10,354 |  |

| Recruitment & training | 3,946 |  | 5,021 |  |

| UKWAS | 8,837 |  | 6,386 |  |

| Publicity | 9,736 |  | 5,644 |  |

| Consultancy fees | 1,500 |  | 4,970 |  |

| Sundries | 302 |  | 253 |  |

| FSC Membership Admin Fee | 5,731 |  | 5,960 |  |

| Sponsorship | 5,000 |  | 2,400 |  |

| Printing | 527 |  | 3,417 |  |

| Small Woods project | - |  | 13,850 |  |

527,898 |  | 477,351 |  |

| Ephesea UK |

Notes to the Financial Statements - continued

for the Year Ended 31 March 2026

8. | GRANTS PAYABLE

| 31.3.26 |  | 31.3.25

£ | £ |

| Impact Investment Fund | (30,000 | ) | 94,996 |  |

| Grants awarded to / (withdrawn from) institutions during the year were as follows:

|  | 31.3.25 |  |  | 31.3.25 |  |

|  | £ |  |  | £ |  |

| Centre for Advanced Timber Technology |  | (30,000 | ) |  | 30,000 |  |

| Llais y Goedwig |  | - |  |  | 40,000 |  |

| Zoological Society of London |  | - |  |  | 24,966 |  |

|  | (30,000 | ) |  | 94,996 |  |

9. | SUPPORT COSTS

| Governance |

| Management |  | costs |  | Totals

£ | £ | £ |

| Forestry | 12,677 |  | 1,255 |  | 13,932 |  |

| Licence holder support | 48,424 |  | 4,794 |  | 53,218 |  |

| Stakeholder Engagement | 15,645 |  | 1,549 |  | 17,194 |  |

| Promoting FSC | 29,427 |  | 2,912 |  | 32,339 |  |

| Value of Forests | 7,526 |  | 745 |  | 8,271 |  |

113,699 |  | 11,255 |  | 124,954 |  |

| Activity | Basis of allocation

| Management | Salary costs

| Governance costs | Salary costs

10. | NET INCOME/(EXPENDITURE)

| Net income/(expenditure) is stated after charging/(crediting): |

| 31.3.26 |  | 31.3.25

£ | £ |

| Depreciation - owned assets | 3,195 |  | 2,779 |  |

| Independent Examination fee | 2,200 |  | 2,400 |  |

| Ephesea UK |

Notes to the Financial Statements - continued

for the Year Ended 31 March 2026

11. | TRUSTEES' REMUNERATION AND BENEFITS

| There were no trustees' remuneration or other benefits for the year ended 31 March 2026 nor for the year ended 31 March 2025.

| Trustees' expenses

| Travel expenses totalling £3,903 (2025 - £3,428) were paid to 7 (2025 - 7) trustees in the year to 31 March 2025.

12. | STAFF COSTS

|  | Year Ended 31.3.26 |  |  | Year Ended 31.3.25 |  |

| £ |  |  | £ |  |

| Wages and salaries |  | 451,198 |  |  | 399,987 |  |

| Social security costs |  | 47,735 |  |  | 35,495 |  |

| Pensions |  | 27,073 |  |  | 23,987 |  |

|  | 526,006 |  |  | 459,469 |  |

| The average number of employees during the period was as follows: |  |  |

| Licence holder support |  | 4.6 |  |  | 4.3 |  |

| UK forest standards |  | 1.0 |  |  | 1.0 |  |

| Stakeholder engagement |  | 1.0 |  |  | 1.0 |  |

| Core |  | 1.7 |  | 1.8 |  |

| Value of Forests |  | 1.2 |  | 1.0 |  |

| Promoting the system |  | 2.8 |  |  | 2.2 |  |

|  | 12.3 |  |  | 11.3 |  |

| The number of employees whose emoluments as defined for taxation purposes amounted to over £60,000 in the period was one (2025 one).

| The charity considers its key management personnel comprise the management team listed on page 8. The total employment benefits including employer pension contributions of the key management personnel for the year ended 31 March 2026 were £263,788 (2025 £259,833).

| Ephesea UK |

Notes to the Financial Statements - continued

for the Year Ended 31 March 2026

13. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

| There were no restricted funds during the year to 31 March 2025.

14. | TANGIBLE FIXED ASSETS

| Fixtures |

| and |  | Computer |

| fittings |  | equipment |  | Totals

£ | £ | £ |

| COST

| At 1 April 2025 | 15,734 |  | 35,855 |  | 51,589 |  |

| Additions | 1,788 |  | 3,447 |  | 5,235 |  |

| At 31 March 2026 | 17,522 |  | 39,302 |  | 56,824 |  |

| DEPRECIATION

| At 1 April 2025 | 13,166 |  | 33,793 |  | 46,959 |  |

| Charge for year | 379 |  | 2,816 |  | 3,195 |  |

| At 31 March 2026 | 13,545 |  | 36,609 |  | 50,154 |  |

| NET BOOK VALUE

| At 31 March 2026 | 3,977 |  | 2,693 |  | 6,670 |  |

| At 31 March 2025 | 2,568 |  | 2,062 |  | 4,630 |  |

15. | FIXED ASSET INVESTMENTS

| Listed

| investments

£ |

| MARKET VALUE

| At 1 April 2025 | 429,357 |  |

| Additions | 39,370 |  |

| Revaluations | 4,097 |  |

| At 31 March 2026 | 472,824 |  |

| NET BOOK VALUE

| At 31 March 2026 | 472,824 |  |

| At 31 March 2025 | 429,357 |  |

| There were no investment assets outside the UK.

| Ephesea UK |

Notes to the Financial Statements - continued

for the Year Ended 31 March 2026

15. | FIXED ASSET INVESTMENTS - continued

| Cost or valuation at 31 March 2026 is represented by:

| Listed

| investments

£ |

| Valuation in 2023 | (136 | ) |

| Valuation in 2024 | 19,353 |  |

| Valuation in 2025 | (24,970 | ) |

| Valuation in 2026 | 9,850 |  |

| Cost | 468,727 |  |

472,824 |  |

16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

| 31.3.26 |  | 31.3.25

£ | £ |

| Trade debtors | 134,453 |  | 150,718 |  |

| Prepayments and accrued income | 19,367 |  | 23,036 |  |

153,820 |  | 173,754 |  |

17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

| 31.3.26 |  | 31.3.25

£ | £ |

| Social security and other taxes | 15,316 |  | 13,295 |  |

| Deferred income | 93,567 |  | 96,041 |  |

| Accrued expenses | 63,434 |  | 130,839 |  |

172,317 |  | 240,175 |  |

18. | LEASING AGREEMENTS

| Minimum lease payments under non-cancellable operating leases fall due as follows:

| 31.3.26 |  | 31.3.25

£ | £ |

| Within one year | 9,650 |  | 9,650 |  |

| Ephesea UK |

Notes to the Financial Statements - continued

for the Year Ended 31 March 2026

19. | ANALYSIS OF NET ASSETS BETWEEN FUNDS

| 31.3.26 |  | 31.3.25

| Unrestricted |  | Restricted |  | Total |  | Total

| funds |  | funds |  | funds |  | funds

£ | £ | £ | £ |

| Fixed assets | 6,670 |  | - |  | 6,670 |  | 4,630 |  |

| Investments | 472,824 |  | - |  | 472,824 |  | 429,357 |  |

| Current assets | 799,880 |  | - |  | 799,880 |  | 891,332 |  |

| Current liabilities | (172,317 | ) | - |  | (172,317 | ) | (240,175 | ) |

1,107,057 |  | - |  | 1,107,057 |  | 1,085,144 |  |

20. | MOVEMENT IN FUNDS

| Net |  | Transfers |  |

| movement |  | between |  | At |

| At 1.4.25 |  | in funds |  | funds |  | 31.3.26 |

£ | £ | £ | £ |

| Unrestricted funds

| General Fund | 1,080,514 |  | 21,913 |  | (5,235 | ) | 1,097,192 |  |

| Capital Fund | 4,630 |  | - |  | 5,235 |  | 9,865 |  |

1,085,144 |  | 21,913 |  | - |  | 1,107,057 |  |

| TOTAL FUNDS | 1,085,144 |  | 21,913 |  | - |  | 1,107,057 |  |

| Net movement in funds, included in the above are as follows:

| Incoming |  | Resources |  | Gains and |  | Movement |

| resources |  | expended |  | losses |  | in funds |

£ | £ | £ | £ |

| Unrestricted funds

| General Fund | 640,668 |  | (622,852 | ) | 4,097 |  | 21,913 |  |

| TOTAL FUNDS | 640,668 |  | (622,852 | ) | 4,097 |  | 21,913 |  |

| Comparatives for movement in funds

| Net |  | Transfers |  |

| movement |  | between |  | At |

| At 1.4.24 |  | in funds |  | funds |  | 31.3.25 |

£ | £ | £ | £ |

| Unrestricted funds | 1,105,626 |  | (20,482 | ) | - |  | 1,085,144 |  |

| TOTAL FUNDS | 1,105,626 |  | (20,482 | ) | - |  | 1,085,144 |  |

| Ephesea UK |

Notes to the Financial Statements - continued

for the Year Ended 31 March 2026

20. | MOVEMENT IN FUNDS - continued

| Comparative net movement in funds included in the above are as follows:

| Incoming |  | Resources |  | Gains and |  | Movement |

| resources |  | expended |  | losses |  | in funds |

£ | £ | £ | £ |

| Unrestricted funds | 674,878 |  | (689,643 | ) | (5,717 | ) | (20,482 | ) |

| TOTAL FUNDS | 674,878 |  | (689,643 | ) | (5,717 | ) | (20,482 | ) |

| A current year 12 months and prior year 12 months combined position is as follows:

| Net |  | Transfers |  |

| movement |  | between |  | At |

| At 1.4.24 |  | in funds |  | funds |  | 31.3.26 |

£ | £ | £ | £ |

| Unrestricted funds | 1,105,626 |  | 1,431 |  | - |  | 1,107,057 |  |

| TOTAL FUNDS | 1,105,626 |  | 1,431 |  | - |  | 1,107,057 |  |

| Net movement in funds included in the above are as follows:

| Incoming |  | Resources |  | Gains and |  | Movement |

| resources |  | expended |  | losses |  | in funds |

£ | £ | £ | £ |

| Unrestricted funds | 1,315,546 |  | (1,312,495 | ) | (1,620 | ) | 1,431 |  |

| TOTAL FUNDS | 1,315,546 |  | (1,312,495 | ) | (1,620 | ) | 1,431 |  |

21. | RELATED PARTY DISCLOSURES

| There were no related party transactions for the year ended 31 March 2026.