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REGISTERED NUMBER: 08106006 (England and Wales)










COLOMER MUNMANY EUROPE COMPANY LTD

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023






COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4 to 7

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16 to 25


COLOMER MUNMANY EUROPE COMPANY LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: Y Zhang
H Lyu
J K Boneham
W Peng



REGISTERED OFFICE: Jacobs Building
Dalton Airfield Industrial Estate
Dalton
North Yorkshire
YO7 3HE



REGISTERED NUMBER: 08106006 (England and Wales)



AUDITORS: Thomas Coombs Limited
Statutory Auditor
Chartered Accountants
3365 The Pentagon
Century Way
Thorpe Park
Leeds
West Yorkshire
LS15 8ZB



BANKERS: HSBC Bank Plc
Canada Place
Canary Wharf
London
E14 5AH

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their strategic report of the company and the group for the year ended 31st December 2023.

REVIEW OF BUSINESS
As per the prediction for 2023 it has been a challenging year.

The market for raw material was the weakest it has been for many years, this coincided with considerable rising costs caused by high inflation. To mitigate some of these cost rises we continue to look for and apply efficiencies and savings for aspects of the working costs that we can control. On the flip side, our finished product sales exceeded expectations. Retail sales rebounded to 2021 levels and our ecommerce sales revenue grew by 61% vs 2022.

We anticipate another challenging year for 2024; however, we believe that 2023 represented the bottom of the market for raw material. With inflation slowing, costs should be more easily managed. As for finished product sales, the market looks to be slowing, we anticipate similar sales volumes for retail sales and moderate growth in ecommerce sales.

Overall, our aim is to grow our market share of both raw material procurement as well as for finished product sales and increase our margins and sales volumes. We anticipate we will break even in 2024.

PRINCIPAL RISKS AND UNCERTAINTIES
There are many risks facing the business, the key risks to the business are:
Maintaining a supply and price of raw material to meet demands;
Managing the foreign currency movements and effects on cashflow;
Credit risk in offering extended credit terms to customers in the finished leather market;
Managing the effect of Brexit on the UK group and its European customers.

The company manages this risk by employing a well-trained management team, maintaining positive relationships with key suppliers, and operating an up to date management information system.

KEY PERFORMANCE INDICATORS
Given the straightforward nature of the business, the directors believe that further analysis using KPI's is not necessary for an understanding of the development, performance and position of the business.

ON BEHALF OF THE BOARD:





J K Boneham - Director


22nd May 2024

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31st December 2023.

DIRECTORS
The directors during the year under review were:

Y Zhang
H Lyu
J K Boneham
W Peng

The directors holding office at 31st December 2023 did not hold any beneficial interest in the issued share capital of the company at 1st January 2023 or 31st December 2023.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Thomas Coombs Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J K Boneham - Director


22nd May 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COLOMER MUNMANY EUROPE COMPANY LTD


Opinion
We have audited the financial statements of Colomer Munmany Europe Company Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2023 and of the group's loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' 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 group's and the parent 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 directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to 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. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COLOMER MUNMANY EUROPE COMPANY LTD


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors 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 directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COLOMER MUNMANY EUROPE COMPANY LTD


Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

Based on our understanding of the entity and industries in which it operates, we identified the principal risks of non-compliance with laws and regulations related to health and safety and employment law. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, tax legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, and management bias in accounting estimates, especially stock valuation, accruals and depreciation.

To address the risk of fraud through management bias and override of controls, we:
-Performed analytical procedures to identify any unusual or unexpected relationships.
-Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business.
-Investigated the rationale behind significant or unusual transactions.
-Challenged assumptions and judgements made by management in determining significant accounting estimates, in particular in relation to accruals and depreciation.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to:
-Agreeing financial statements disclosures to underlying supporting documentation.
-Discussions with management of known or suspected instances of non-compliance with laws and regulations.
-Reading the minutes of meetings of those charged with governance.
-Reviewing correspondence with HMRC, relevant regulators including the company's legal advisors.

At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COLOMER MUNMANY EUROPE COMPANY LTD


Use of our report
This report is made solely to the 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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Stuart Adam FCA (Senior Statutory Auditor)
for and on behalf of Thomas Coombs Limited
Statutory Auditor
Chartered Accountants
3365 The Pentagon
Century Way
Thorpe Park
Leeds
West Yorkshire
LS15 8ZB

22nd May 2024

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 9,363,506 10,891,159

Cost of sales 8,317,904 9,997,805
GROSS PROFIT 1,045,602 893,354

Administrative expenses 1,729,563 1,479,816
(683,961 ) (586,462 )

Other operating income 225,422 92,258
Gain/loss on revaluation of assets - 168,115
OPERATING LOSS 5 (458,539 ) (326,089 )

Interest receivable and similar income - 200
(458,539 ) (325,889 )

Interest payable and similar expenses 6 73,500 73,833
LOSS BEFORE TAXATION (532,039 ) (399,722 )

Tax on loss 7 - 27,041
LOSS FOR THE FINANCIAL YEAR (532,039 ) (426,763 )
Loss attributable to:
Owners of the parent (530,273 ) (430,710 )
Non-controlling interests (1,766 ) 3,947
(532,039 ) (426,763 )

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

LOSS FOR THE YEAR (532,039 ) (426,763 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (532,039 ) (426,763 )

Total comprehensive income attributable to:
Owners of the parent (530,273 ) (430,710 )
Non-controlling interests (1,766 ) 3,947
(532,039 ) (426,763 )

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

CONSOLIDATED BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 205,562 288,781
Tangible assets 10 3,235,784 3,328,396
Investments 11 - -
Investment property 12 650,000 650,000
4,091,346 4,267,177

CURRENT ASSETS
Stocks 13 1,011,415 894,122
Debtors 14 1,123,673 1,187,350
Cash at bank and in hand 696,031 719,652
2,831,119 2,801,124
CREDITORS
Amounts falling due within one year 15 2,167,843 1,781,640
NET CURRENT ASSETS 663,276 1,019,484
TOTAL ASSETS LESS CURRENT LIABILITIES 4,754,622 5,286,661

CREDITORS
Amounts falling due after more than one year 16 (7,350,000 ) (7,350,000 )

PROVISIONS FOR LIABILITIES 18 (27,041 ) (27,041 )
NET LIABILITIES (2,622,419 ) (2,090,380 )

CAPITAL AND RESERVES
Called up share capital 19 4,000,000 4,000,000
Revaluation reserve 20 6,452 12,907
Non-distributable reserves 20 115,281 115,281
Retained earnings 20 (6,808,326 ) (6,284,508 )
SHAREHOLDERS' FUNDS (2,686,593 ) (2,156,320 )

NON-CONTROLLING INTERESTS 64,174 65,940
TOTAL EQUITY (2,622,419 ) (2,090,380 )

The financial statements were approved by the Board of Directors and authorised for issue on 22nd May 2024 and were signed on its behalf by:





J K Boneham - Director


COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

COMPANY BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 140,000 200,000
Tangible assets 10 2,552,369 2,632,802
Investments 11 433,198 433,198
Investment property 12 650,000 650,000
3,775,567 3,916,000

CURRENT ASSETS
Stocks 13 1,011,415 894,122
Debtors 14 1,282,486 1,348,927
Cash at bank and in hand 593,364 605,925
2,887,265 2,848,974
CREDITORS
Amounts falling due within one year 15 2,164,015 1,774,803
NET CURRENT ASSETS 723,250 1,074,171
TOTAL ASSETS LESS CURRENT LIABILITIES 4,498,817 4,990,171

CREDITORS
Amounts falling due after more than one year 16 (7,350,000 ) (7,350,000 )

PROVISIONS FOR LIABILITIES 18 (27,041 ) (27,041 )
NET LIABILITIES (2,878,224 ) (2,386,870 )

CAPITAL AND RESERVES
Called up share capital 19 4,000,000 4,000,000
Non-distributable reserves 20 115,281 115,281
Retained earnings 20 (6,993,505 ) (6,502,151 )
SHAREHOLDERS' FUNDS (2,878,224 ) (2,386,870 )

Company's loss for the financial year (491,354 ) (426,344 )

The financial statements were approved by the Board of Directors and authorised for issue on 22nd May 2024 and were signed on its behalf by:





J K Boneham - Director


COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up
share Retained Revaluation
capital earnings reserve
£    £    £   
Balance at 1st January 2022 4,000,000 (5,768,359 ) -

Changes in equity
Total comprehensive income - (516,149 ) 12,907
Balance at 31st December 2022 4,000,000 (6,284,508 ) 12,907

Changes in equity
Total comprehensive income - (523,818 ) (6,455 )
Balance at 31st December 2023 4,000,000 (6,808,326 ) 6,452
Non-distributable Non-controlling Total
reserves Total interests equity
£    £    £    £   
Balance at 1st January 2022 42,749 (1,725,610 ) 61,993 (1,663,617 )

Changes in equity
Total comprehensive income 72,532 (430,710 ) 3,947 (426,763 )
Balance at 31st December 2022 115,281 (2,156,320 ) 65,940 (2,090,380 )

Changes in equity
Total comprehensive income - (530,273 ) (1,766 ) (532,039 )
Balance at 31st December 2023 115,281 (2,686,593 ) 64,174 (2,622,419 )

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up
share Retained Non-distributable Total
capital earnings reserves equity
£    £    £    £   
Balance at 1st January 2022 4,000,000 (6,003,275 ) 42,749 (1,960,526 )

Changes in equity
Total comprehensive income - (498,876 ) 72,532 (426,344 )
Balance at 31st December 2022 4,000,000 (6,502,151 ) 115,281 (2,386,870 )

Changes in equity
Total comprehensive income - (491,354 ) - (491,354 )
Balance at 31st December 2023 4,000,000 (6,993,505 ) 115,281 (2,878,224 )

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 151,218 55,505
Interest paid (73,500 ) (73,833 )
Tax paid - 16,258
Net cash from operating activities 77,718 (2,070 )

Cash flows from investing activities
Purchase of tangible fixed assets (103,140 ) (110,811 )
Purchase of investment property - (211,885 )
Sale of tangible fixed assets 1,801 248,932
Interest received - 200
Net cash from investing activities (101,339 ) (73,564 )

Decrease in cash and cash equivalents (23,621 ) (75,634 )
Cash and cash equivalents at beginning of year 2 719,652 795,286

Cash and cash equivalents at end of year 2 696,031 719,652

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Loss before taxation (532,039 ) (399,722 )
Depreciation charges 277,818 316,903
Profit on disposal of fixed assets (648 ) (11,858 )
Gain on revaluation of fixed assets - (168,115 )
Finance costs 73,500 73,833
Finance income - (200 )
(181,369 ) (189,159 )
(Increase)/decrease in stocks (117,293 ) 27,441
Decrease in trade and other debtors 63,677 293,696
Increase/(decrease) in trade and other creditors 386,203 (76,473 )
Cash generated from operations 151,218 55,505

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 696,031 719,652
Year ended 31st December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 719,652 795,286


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 719,652 (23,621 ) 696,031
719,652 (23,621 ) 696,031
Total 719,652 (23,621 ) 696,031

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. STATUTORY INFORMATION

Colomer Munmany Europe Company Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with 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.

The financial statements have been prepared in sterling. All monetary amounts in the financial statements are rounded to the nearest £.

The directors are satisfied that the company has sufficient cash flows and continued support from the parent company to continue to meet its liabilities as they fall due for at least one year from date of approval of the financial statements, thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover
Revenue is measured at the fair value of the consideration receivable for the provision of goods and services to customers outside the company net of returns, sales allowances and VAT.

Revenue is recognised at the point in which the company fulfills its commercial obligations to the customer and amounts in respect of the transaction can be measured reliably and collectability is reasonable assured.

Goodwill
Goodwill arising on business combinations are capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is 3, 5 and 10 years. Provisions are made for any impairment.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Land & buildings2% straight line, 4% straight line and 10% straight line
Office equipment25% straight line
Fixtures & fittings8.33% straight line and 20% straight line
Plant & machinery20% straight line and 25% reducing balance
Motor vehicles20% straight line and 25% reducing balance

Investment property
Investment properties are measured at fair value at each reporting date with changes in fair value recognised in profit or loss.

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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 included in arriving at the operating result.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Investments
Fixed asset investments are stated at historical cost less provision for any diminution in value.

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market for the year ended 31st December 2022 is given below:

£   
United Kingdom 1,068,526
Europe 2,032,501
Rest of the World 7,790,132
10,891,159

This analysis is not considered to be applicable to the year ended 31st December 2023.

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,616,904 2,729,468
Social security costs 263,019 283,545
Other pension costs 55,134 56,277
2,935,057 3,069,290

The average number of employees during the year was as follows:
2023 2022

UK 78 78

The average number of employees by undertakings that were proportionately consolidated during the year was 3 (2022 - 3 ) .

2023 2022
£    £   
Directors' remuneration 103,187 102,475

5. OPERATING LOSS

The operating loss is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 194,599 228,225
Profit on disposal of fixed assets (648 ) (11,858 )
Goodwill amortisation 83,219 88,679
Auditors' remuneration 17,000 8,355
Foreign exchange differences 54,596 (17,111 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest payable 73,500 73,833

7. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
2023 2022
£    £   
Deferred tax - 27,041
Tax on loss - 27,041

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


9. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1st January 2023
and 31st December 2023 4,114,096
AMORTISATION
At 1st January 2023 3,825,315
Amortisation for year 83,219
At 31st December 2023 3,908,534
NET BOOK VALUE
At 31st December 2023 205,562
At 31st December 2022 288,781

Company
Goodwill
£   
COST
At 1st January 2023
and 31st December 2023 645,852
AMORTISATION
At 1st January 2023 445,852
Amortisation for year 60,000
At 31st December 2023 505,852
NET BOOK VALUE
At 31st December 2023 140,000
At 31st December 2022 200,000

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


10. TANGIBLE FIXED ASSETS

Group
Freehold Motor Office Plant &
property vehicles equipment machinery Totals
£    £    £    £    £   
COST
At 1st January 2023 3,529,920 122,551 156,393 1,044,236 4,853,100
Additions - - 10,792 92,348 103,140
Disposals - - - (13,770 ) (13,770 )
At 31st December 2023 3,529,920 122,551 167,185 1,122,814 4,942,470
DEPRECIATION
At 1st January 2023 471,511 36,371 139,738 877,084 1,524,704
Charge for year 48,584 25,923 10,216 109,876 194,599
Eliminated on disposal - - - (12,617 ) (12,617 )
At 31st December 2023 520,095 62,294 149,954 974,343 1,706,686
NET BOOK VALUE
At 31st December 2023 3,009,825 60,257 17,231 148,471 3,235,784
At 31st December 2022 3,058,409 86,180 16,655 167,152 3,328,396

Company
Freehold Office Plant & Motor
property equipment machinery vehicles Totals
£    £    £    £    £   
COST
At 1st January 2023 2,660,129 163,618 1,028,045 129,151 3,980,943
Additions - 10,792 92,348 - 103,140
Disposals - - (13,770 ) - (13,770 )
At 31st December 2023 2,660,129 174,410 1,106,623 129,151 4,070,313
DEPRECIATION
At 1st January 2023 296,288 143,828 867,311 40,714 1,348,141
Charge for year 36,747 10,216 109,534 25,923 182,420
Eliminated on disposal - - (12,617 ) - (12,617 )
At 31st December 2023 333,035 154,044 964,228 66,637 1,517,944
NET BOOK VALUE
At 31st December 2023 2,327,094 20,366 142,395 62,514 2,552,369
At 31st December 2022 2,363,841 19,790 160,734 88,437 2,632,802

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1st January 2023
and 31st December 2023 433,198
NET BOOK VALUE
At 31st December 2023 433,198
At 31st December 2022 433,198

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Colomer Munmany Belgium
Registered office: Outside the UK
Nature of business: Provide logistic and warehouse services
%
Class of shares: holding
Ordinary 100.00

Marshall Farmer Limited
Registered office: United Kingdom
Nature of business: Processing animal skins
%
Class of shares: holding
Ordinary 100.00

Charles Paisley & Sons Limited
Registered office: United Kingdom
Nature of business: Other business support activities
%
Class of shares: holding
Ordinary 87.50


12. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
At 1st January 2023
and 31st December 2023 650,000
NET BOOK VALUE
At 31st December 2023 650,000
At 31st December 2022 650,000

Investment property is included in the financial statements at fair value of £650,000 which, in the opinion of the directors, fairly represents the open market value at the balance sheet date.

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


12. INVESTMENT PROPERTY - continued

Group


Company
Total
£   
FAIR VALUE
At 1st January 2023
and 31st December 2023 650,000
NET BOOK VALUE
At 31st December 2023 650,000
At 31st December 2022 650,000

Investment property is included in the financial statements at fair value of £650,000 which, in the opinion of the directors, fairly represents the open market value at the balance sheet date.


13. STOCKS

Group Company
2023 2022 2023 2022
£    £    £    £   
Finished goods 1,011,415 894,122 1,011,415 894,122

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 311,343 431,976 310,797 431,429
Amounts owed by group undertakings - - 168,732 168,732
Other debtors 18,387 18,368 18,378 18,360
Amounts owed by related
parties 671,638 595,831 671,637 595,831
VAT 3,238 31,398 1,120 31,307
Prepayments and accrued income 119,067 109,777 111,822 103,268
1,123,673 1,187,350 1,282,486 1,348,927

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade creditors 579,245 615,315 573,641 606,757
Amounts owed to group undertakings - - 4,176 4,176
Social security and other taxes 122,461 110,421 122,461 110,421
Other creditors 73,645 73,140 73,645 73,140
Amounts owed to related
parties 1,228,976 935,627 1,228,976 935,627
Accruals and deferred income 163,516 47,137 161,116 44,682
2,167,843 1,781,640 2,164,015 1,774,803

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Related party loan 7,350,000 7,350,000 7,350,000 7,350,000

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 221,587 250,910
Between one and five years 175,936 285,697
397,523 536,607

Company
Non-cancellable operating leases
2023 2022
£    £   
Within one year 221,587 250,910
Between one and five years 175,936 285,697
397,523 536,607

18. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax 27,041 27,041 27,041 27,041

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


18. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1st January 2023 27,041
Balance at 31st December 2023 27,041

Company
Deferred
tax
£   
Balance at 1st January 2023 27,041
Balance at 31st December 2023 27,041

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
4,000,000 Ordinary £1 4,000,000 4,000,000

20. RESERVES

Group
Retained Revaluation Non-distributable
earnings reserve reserves Totals
£    £    £    £   

At 1st January 2023 (6,284,508 ) 12,907 115,281 (6,156,320 )
Deficit for the year (530,273 ) (530,273 )
Transfer 6,455 (6,455 ) - -
At 31st December 2023 (6,808,326 ) 6,452 115,281 (6,686,593 )

Company
Retained Non-distributable
earnings reserves Totals
£    £    £   

At 1st January 2023 (6,502,151 ) 115,281 (6,386,870 )
Deficit for the year (491,354 ) (491,354 )
At 31st December 2023 (6,993,505 ) 115,281 (6,878,224 )


21. ULTIMATE PARENT COMPANY

Longfeng Colomer Co., Ltd (incorporated in China ) is regarded by the directors as being the company's ultimate parent company.

COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


22. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are Hui Lyu and Heping Wang.