REGISTERED NUMBER: 13897245 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 December 2024

for

MMC MATERIALS UK LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

P Gilligan

R A Bublik

Registered office:

3rd Floor

86-90 Paul Street

London

EC2A 4NE

Registered number:

13897245 (England and Wales)

Accountants:

Cooper Parry Advisory Limited

Broadwalk House, 5th Floor

5 Appold Street

Broadgate

London

EC2A 2AG

Fixed assets

Tangible assets

4

334,694

252,701

Current assets

Debtors

5

100,293

76,348

Cash at bank

-

14,221

100,293

90,569

Creditors

Amounts falling due within one year

6

950,605

568,005

Net current liabilities

(850,312

)

(477,436

)

Total assets less current liabilities

(515,618

)

(224,735

)

Capital and reserves

Called up share capital

9

100

100

Retained earnings

(515,718

)

(224,835

)

Shareholders' funds

(515,618

)

(224,735

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

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

(b)

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

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 December 2025 and were signed on its behalf by:

P Gilligan - Director

1.	Statutory information

MMC Materials UK Limited 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. In forming their view the directors have considered the company's loss for the year of £290,883 (2023 £185,523) and net liabilities of £515,618 at 31 December 2024 (2023 £224,735), together with detailed forecasts for at least twelve months from the date of approval of these financial statements.

MMC Materials UK Ltd's operations and future profitability are closely linked to the wider MMC group strategy. The company houses the group's in house raw materials capability and during 2024 the business continued to invest in plant and equipment, increasing fixed assets to £337,404 (2023 £252,701), to support the development of a new raw materials plant planned to open in early Autumn 2025. This plant is intended to be the world's largest liquid inoculation facility for mycelium based raw materials and will position MMC Materials UK Ltd as the only large scale manufacturer of mycelium based raw materials for mushroom packaging in the UK. The company also filed a patent application with the UK Intellectual Property Office for the Magical FishBox in March 2024, which is expected to support future demand for these raw materials.

The company's activities are funded by its parent, MMC Holding International Ltd, through interest free, on demand group loans and access to external facilities, including an Innovate UK loan facility made available to support the capital expenditure on the raw materials plant. The directors of the parent company have confirmed their current intention to continue to provide financial support to the company for at least twelve months from the date of approval of these financial statements and for as long as is necessary thereafter to enable the company to meet its obligations as they fall due. Group forecasts prepared by the directors show continued compliance with Innovate UK loan covenants and liquidity ratios over that period.

The directors' forecasts, which include the impact of the raw materials plant being commissioned in 2025 and moving into production, show a path to improving group gross margins as Symbiotec Ltd, MMC Packaging Europe Ltd and other group manufacturing entities transition to internally produced raw materials. The new plant is expected to reduce raw material costs by up to 40 per cent from opening and, as volumes and efficiency increase through 2026, by up to 60 per cent compared with current external supply. This reduction in input costs is essential to enable mushroom packaging to scale competitively. MMC Packaging Europe Ltd in particular will rely on these raw materials to increase utilisation of its Bulgarian manufacturing facility which would not be viable at scale without the cost reductions delivered by MMC Materials UK Ltd. While the group's current plan is to use all production internally, the plant also creates a potential new sales opportunity from supplying surplus raw materials to third parties if appropriate.

The board's group plan assumes that 2025 is the year in which the key operational and commercial levers are put in place, with the objective of delivering profitability across the trading entities during 2026. On that basis the directors expect MMC Materials UK Ltd to move from being a cost centre to a key contributor to group profitability through lower input costs, better control of supply and the option to develop additional revenue streams from raw materials.

Having considered the forecasts, the demonstrated ability of the group to raise equity and grant funding, the maintenance of Innovate UK covenant compliance and the strategic importance of the raw materials capability to the group's business model, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future.

Accordingly, they continue to adopt the going concern basis of accounting in preparing these financial statements.

The financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.

Tangible fixed assets

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

Plant and machinery

-

Straight line over 5 years

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

3.	Employees and directors

The average number of employees during the year was NIL (2023 - NIL).

4.	Tangible fixed assets

Plant and

machinery

£

Cost

At 1 January 2024

252,701

Additions

81,993

At 31 December 2024

334,694

Net book value

At 31 December 2024

334,694

At 31 December 2023

252,701

5.

Debtors: amounts falling due within one year

2024

2023

£

£

Trade debtors

8,852

-

Other debtors

91,441

76,348

100,293

76,348

6.

Creditors: amounts falling due within one year

2024

2023

£

£

Bank loans and overdrafts

426

-

Trade creditors

120,191

37,777

Amounts owed to group undertakings

746,013

480,328

Other creditors

83,975

49,900

950,605

568,005

7.	Leasing agreements

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

2024

2023

£

£

Within one year

91,770

91,770

Between one and five years

229,425

321,195

321,195

412,965

8.	Secured debts

There is a fixed and floating charge on the assets on the company in respect of a loan facility in the name of the parent company.

9.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

100

Ordinary

£1

100

100

10.	Related party disclosures

As at 31 December 2024 the company owed its parent entity £613,234 (2023: £438,839). The loan is interest free and repayable on demand.

As at 31 December 2024 the company owed its fellow subsidiary £132,779 (2023: £41,435). The loan is interest free and repayable on demand.

Included in the company's profit and loss were management charges from the parent totalling £81,600 for the year.

11.	Parent undertaking

The ultimate parent company is MMC Holding International Ltd, a company registered in England and Wales.

The company's registered office address is 3rd Floor 86 - 90 Paul Street, London, England, EC2A 4NE.