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

The principal activity of the company continues to be the sale of luxury handbags and other leather goods.

The results for the year are set out on page 6.

No dividends were paid. The directors do not recommend payment of a dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

Each director in office at the date of approval of this annual report confirms that:

• so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

• the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The directors are responsible for preparing the annual report 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 UK-Adopted International Accounting Standards. 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 of the profit or loss of the company 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;

• state whether they have been prepared in accordance with UK-adopted International Accounting Standards; and

• 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of MCM Products UK Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended;

• have been properly prepared in accordance with UK adopted international accounting standards; 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 our audit:

• the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors' report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.

As explained more fully in the directors' responsibilities statement, 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.

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

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.

As part of our planning process:

• We enquired of management the systems and controls the company has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

• We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the Companies Act 2006 and UK-Adopted International Accounting Standards were the most relevant.

• We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

• Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

• Identifying and testing journal entries and the overall accounting records, in particular any that were significant and unusual.

• Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

• Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates in particular in relation to impairment of fixed assets.

• Testing key revenue lines, in particular cut-off, for evidence of management bias.

• Obtaining third-party confirmation of bank balances.

• Documenting and verifying all significant related party transactions.

• Performing a physical verification of key assets and stock items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

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

MCM Products UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16 Conduit Street, Mayfair, London, England, W1S 2XL. The company's principal activities and nature of its operations are disclosed in the directors' report.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The material accounting policies adopted are set out below.

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Where needed additional funding is available from the ultimate parent company, Trias Holding AG, to ensure the company is able to meet its liabilities as they fall due over the next 12 months. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue is presented net of VAT and other sales related taxes. The company recognises revenue when it transfers control of a product to a customer which usually occurs when the goods are delivered to the customer.

Revenue from store sales is recognised at the point in time when the customer obtains control of the goods, which is generally upon receipt of payment made at the time of the sale.

Revenue from online sales is recognised when the goods are delivered to the customer, which is the point at which control transfers.

Returns and refunds are estimated based on historical data and revenue is adjusted for based on the refunds provision.

Included in other operating income are amounts received in line with the Group transfer pricing policy dated 15th December 2016. The amount receivable is based on the companies EBIT ratio.

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:

Key Money - Life of lease.

Key Money being one off payments made to previous tenants when leases were entered into for retail stores in prime location.

Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost 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 income statement.

At each reporting end date, the company 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).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the weighted average principle and comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Cash and cash equivalents include cash in hand and deposits held at call with banks.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

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 company 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.

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. The Company's incremental borrowing rate is determined with reference to the rates offered to the Group by third parties.

Lease payments included in the measurement of the lease liability comprise the following:

• Fixed payments, including in-substance fixed payments;

• amounts expected to be payable under a residual value guarantee;

• penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in substance fixed lease payment.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, to the extent that the right-of-use asset is reduced to nil, with any further adjustment required from the remeasurement being recorded in profit or loss.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. Please see note 13 for the right of use asset.

The Company presents right-of-use assets that do not meet the definition of investment property in 'property plant and equipment’ ('leasehold land and buildings') and lease liabilities in 'current liabilities' and 'non-current liabilities' in the Statement of Financial Position. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period. Please see note 19 for lease liability principle and finance costs.

Rentals payable under other leases are charged to profit or loss on a straight line basis over the term of the relevant lease. These refer to short-term leases not deemed to be under the full control of the company. Please see note 25 for rental payments due under the lease liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the current year a number of amendments to IFRS issued by the International Accounting Standards Board ("IASB") and endorsed by the UK Endorsement Board became mandatorily effective for an accounting period that begins on or after 1 January 2024, there are no amendments that have a material effect on the financial statements of the Company.

At the date of authorisation of these financial statements, new accounting standards and amendments to existing accounting standards have been published that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the company. Management anticipates that all relevant pronouncements will be adopted in the first period beginning on or after the effective date of the pronouncement. These pronouncements are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

In the application of the company’s accounting policies, the directors 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Management has performed an impairment review of the right of use asset by preparing detailed forecasts, which take into account the entity's cost of debt funding, and provide a basis for valuing the expected future cashflows from the asset. In addition to the direct cash flows management considered the value of the high street location to the MCM brand as a whole.

This is an area of significant judgement, as any change in the assumptions, including the anticipated performance, could materially impact the impairment evaluation. The key assumption is the forecast sales attributable to the location. Management have reviewed the forecasts and deem the level of impairment to the asset to be appropriate. At 31 December 2024 the maximum potential impairment which could result from changes in the assumptions is £99,572 which is the carrying amount of the right of use asset.

Inventories and non-invoiced services are recorded at acquisition costs.

Acquisition costs are calculated using the weighted average cost method.

Inventory mark down allowances are calculated using the PLC (Product Life Cycle) aging method. Each item has a PLC code.

For each PLC code and aging, following allowance applies:

Aging in days 0-180 181-365 366-730 731-1,095 >1,095

Carry over 0% 20% 30% 50% 70%

Seasonal 0% 20% 30% 50% 70%

Fashion     0% 20% 30% 50% 70%

Made for Outlet      0% 20% 30% 50% 70%

Still Valid     10%     40%     60% 80% 100%

Markdown 30% 50% 70% 90% 100%

Defective 100% 100% 100% 100% 100%

All revenue generated by the company relates to goods sold to customers

Revenue streams are analysed as follows

All revenue arises within the UK

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:

Leasehold Land and Buildings relates to all right of use assets of the entity. Total cash outflow relating to this was £470,000 (2023: £470,000).

As at 31 December 2024 the level of provision is £151,111 (31 December 2023: £138,067).

Valuation gains and losses on inventory are included in cost of sales.

Trade and other receivables are not measured at amortised cost with effective interest rate since there are no material differences between the carrying amounts and their amortised costs.

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

Credit risk is the risk of financial loss to the entity if a customer or counterparty to the financial instrument fails to meet its contractual obligations and arises principally from the entities receivables from customers.

Sales are typically recognised at the point of sale. Management have assessed the increase in credit risk over the last 12 months and have adjusted the carrying value of receivables where appropriate. Management review credit risk on an ongoing basis taking into account circumstances at the time, this includes consideration of any potential sales returns in line with their policy of 14 days from the point of sale.

No significant receivables balances are impaired at the reporting date.

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

The company has lease contracts for land and buildings used in its operation. The company's obligations under its leases are secured by the lessor's title to the leased assets.

Set out below are the liabilities relating to the right of use asset included within tangible fixed assets:

The lease terminates on 30 June 2031 with a break clause on 30 June 2026. The committed liability to the break clause has been disclosed above.

For further information about the right of use asset please see note 13.

For information about the maturity of lease liabilities please see note 19.

For information about other leases please see note 26.

The directors consider that the carrying amount of financial assets and liabilities is approximately equal to their fair value.

Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Where needed additional funding is available from the ultimate parent company. Please see note 1.2 for further detail.

Please see note 18 for information on the maturity profile of liabilities.

Foreign exchange risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The company has no material exposure to foreign exchange risk with material financial instruments being denominated in Pound Sterling.

Interest rate risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company has no material exposure to interest rate risk. It has no variable interest bearing assets or liabilities as of 31 December 2024.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

A deferred tax asset has been recognised in respect of fixed asset temporary differences giving rise to a deferred tax asset where the directors believe it is probable that these assets will be recovered.

No material uncertain tax position exists as at 31 December 2024. Although the assessment relies on estimates and assumptions about future events, the extent that the final tax outcome of these matters is different than the amount recorded will be adjusted through the income tax expense in the period in which such determination is made.

The restoration provision in regards to the right of use asset amounts to £100,000 (31 December 2023: £100,000, 1 January 2023: £100,000)

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company has no authorised share capital.

Set out below are the future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities:

£384,845 was recognised in the profit or loss as an expense during the period in respect of lease arrangements (31 December 2023: £489,845).

The company exited a lease at a retail location during the period and hence there are no ongoing non-cancellable leases.

The compensation of key management personnel is the same as disclosed in note 8.

Other related party transactions

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

During the period, stock of £12,196 was purchased from a group company (2023: £1,415,366).

Included in amounts due from the parent company is a loan of £1,200,000 (2023 £900,000). Interest is charged on this loan at 5.25% per annum. Interest income of £28,890 (2023: £40,683) has been recognised during the period in relation to this loan.

Other transactions with a net debit of £1,347,499 were processed with the parent company during the year (2023 £1,120,596) including transfer pricing income of £1,448,275 (2023: £1,108,449).

Other transactions including the recharge of operating overheads and cash transfers with a net debit of £2,231 (2023: £115,021 net credit) were processed with this party related through control.

The board defines capital as share capital and all components of equity. Their objectives when managing capital are to safeguard the company's ability to continue as a going concern which includes having sufficient working capital to meet obligations when they fall due. Please see note 1.2 for further detail.

The company is not subject to any externally imposed capital requirements.

The Company is a subsidiary undertaking of MCM Global AG, Switzerland. The ultimate controlling party is Sungjoo Kim. The largest group in which the results of the Company are consolidated is that headed by Trias Holding AG.

The smallest group in which they are consolidated is that headed by MCM Global AG, Baarerstrasse 137, 6300 Switzerland. The parent companies do not produce accounts available for public use.

During the preparation of the financial statements, management identified errors in the prior period figures. These have been corrected and further details are set out below.

During the year ended 31 December 2021 management completed an impairment review of the right of use asset because of the significant reduction in footfall as a result of the ongoing impact of the Covid 19 pandemic. Discounted cashflow forecasts were produced using the Group's cost of capital to assess the future benefit's of the site. This forecast assumes that the lease will be terminated at the break date of 30 June 2026 however the lease workings were not updated and this caused an error in the calculation to date which caused a misstatement of the lease liability.