The trustees present their annual report and financial statements for the year ended 31 December 2025.
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 charity's governing document, the Companies Act 2006 and "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)".
In 2025, the Sahamiye Foundation continued its work to advance literacy and education across the Horn of Africa through Daariz, school reading activities and the development of a school directory.
Key initiatives in 2025
1. Expanding Daariz
During the year, we continued to expand Daariz, our free literacy app, and grow its user base, with strong representation from women and girls.
2. School reading competition
Building on the success of the inter-school reading competition in Hargeisa, we extended the programme in 2025 to schools in Gabiley, Ababsiyo, Wajaale, Berbera, Burco and Borama. A total of 3,096 students from 63 primary and secondary schools took part, competing on reading speed and comprehension. Prizes were awarded to top performers to celebrate their achievements and encourage a culture of lifelong learning.
3. Exploring AI for Daariz
During the year, we explored how artificial intelligence could support the future development of Daariz and its Somali and English learning materials. This exploration will inform planned research into rewriting the app and changing how its learning audio is produced.
4. School directory database
Our work on developing a comprehensive school directory in Somaliland continued throughout 2025. This database captures critical data on school resources and infrastructure, allowing us to tailor our programmes more closely to the needs of individual schools and enhance the overall effectiveness of our educational initiatives.
In 2025, we extended the school reading competition beyond Hargeisa to six further cities, reaching 3,096 students across 63 schools. We also continued to grow the Daariz user base and develop the school directory database. These activities support our longer-term goal of reaching millions of learners.
Total income for the year was £106,645 (2024: £161,865), comprising donations of £104,798 (2024: £161,865) and interest income of £1,847 (2024: £nil). Expenditure on charitable activities was £257,815 (2024: £338,198), resulting in net expenditure of £151,170 (2024: £176,333). The charity made no donations to other organisations during the year (2024: £nil).
Expenditure included non-cash charges of £160,479 for software amortisation and £2,881 for depreciation. Total unrestricted funds at 31 December 2025 were £174,479 (2024: £325,649), of which £173,534 was held in fixed assets (2024: £336,894).
The charity's reserves (excluding amounts held within fixed assets) were £945 at 31 December 2025. The Trustees feel that the charity does not need to hold reserves as the main donor currently provides funding when required.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The trustees are aware of the risks associated with working internationally and are familiar with the Charity Commission’s Compliance Toolkit, which provides guidance on managing risk when working abroad. Ismail Ahmed has experience of working in Africa and will assist the trustees in identifying and managing those risks, enabling them to make informed strategic and operational decisions.
The charity is a company limited by guarantee formed by the governing documents being the Memorandum and Articles of Incorporation dated 5 September 2019 and amended on 5 November 2020.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Ismail Ahmed – Co-founder and Director
Hayat Arteh – Co-founder and Director
Shibani Kaushik – Director
All trustees are responsible for the general control and management of the Foundation. Ismail Ahmed and Hayat Arteh are responsible for overall investment strategy. Mohamed Abdi Ali is responsible for operations and other general management activities.
The management of the charitable company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Sahamiye Foundation (the charity) for the year ended 31 December 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
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 that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements 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 financial statements 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 financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
Sahamiye Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is , 2 Leman Street, London, United Kingdom, E1W 9US.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Resources expended are recognised in the period in which they are incurred and accounted for on an accruals basis.
Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements, including legal, accounting fees and costs of board meetings.
Where possible costs are allocated directly to the activities to which they relate. Support costs are allocated between charitable activities based on the apportionment of direct costs.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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 the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible 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).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Rent
Marketing costs
Telephone and Internet
Accountancy fees
Legal and professional fees
Foreign exchange
Bank charges
Computer costs
Amortisation
General Expenses
Light, Heat and Power
During the year the charity paid fees of £5,333 ( 2024: £8,424) to the accountants for the independent examination review and other services.
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. There were also no reimbursed expenses to the Trustees.
During the period ended 31 December 2025 donations totalling £104,798 ( 2024: £161,865 ) were received from Ismail Ahmed, a trustee of the Charity.
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: