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 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

6

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

to

24

DIRECTORS:

Y Zhang

H Lyu

W Peng

G Font Puig

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

The directors present their strategic report of the company and the group for the year ended 31st December 2025.

REVIEW OF BUSINESS

The company has continued to operate in the processing of ovine and bovine skins along with the sale of finished leather and related products.

2025 was a year of positive change in the business.

We have re-structured the management team and invested in our main processing facility to drive efficiency in the business and ultimately reduce costs.

Supplier relationships remain strong and we have grown our market share of raw material in the UK. We have seen a good amount of stability in the global market and demand for raw material has remained firm. This has allowed us to strengthen our current supply and increase it when opportunities arise.

Finished goods performed in line with our expectations, with sales remaining flat agaisnt the current economic backdrop. We have plans in place to push forward with a more dynamic marketing plan through 2026 which we anticipate will result in higher revenue from the finished goods sales in the next financial year.

Overall, business remains in a healthy position and we are well placed to build on the progress made in 2025 to push forward in 2026.

PRINCIPAL RISKS AND UNCERTAINTIES

There are many risks facing the business, the key risks to the business are:

Maintaining the supply and price of raw material to meet demands.

Credit risk in offering extended credit terms to customers in the finished leather market.

Managing the effect of major global conflicts, this can affect our ability to ship globally

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:

G Font Puig - Director

30th March 2026

The directors present their report with the financial statements of the company and the group for the year ended 31st December 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31st December 2025.

DIRECTORS

The directors during the year under review were:

Y Zhang

H Lyu

J K Boneham

- resigned 15/9/25

W Peng

G Font Puig

- appointed 15/9/25

The directors holding office at 31st December 2025 did not hold any beneficial interest in the issued share capital of the company at 1st January 2025 (or date of appointment if later) or 31st December 2025.

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:

G Font Puig - Director

30th March 2026

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 2025 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 2025 and of the group's profit 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.

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.

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.

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indication of non-compliance through the audit.

We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiries of management and examination of documents, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls.

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

The primary responsibility for the prevention and detection of fraud rests with those charged with governance and management, and we cannot be expected to detect non-compliance with all laws and regulations. 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. In addition, 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.

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

30th March 2026

TURNOVER

3

7,717,649

7,868,148

Cost of sales

6,757,294

7,123,764

GROSS PROFIT

960,355

744,384

Administrative expenses

1,469,517

1,408,540

(509,162

)

(664,156

)

Other operating income

149,529

258,536

Gain/loss on revaluation of assets

578,946

467,477

OPERATING PROFIT

5

219,313

61,857

Interest payable and similar expenses

6

36,233

66,667

PROFIT/(LOSS) BEFORE TAXATION

183,080

(4,810

)

Tax on profit/(loss)

7

-

-

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

183,080

(4,810

)

Profit/(loss) attributable to:

Owners of the parent

181,851

(4,365

)

Non-controlling interests

1,229

(445

)

183,080

(4,810

)

PROFIT/(LOSS) FOR THE YEAR

183,080

(4,810

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

183,080

(4,810

)

Total comprehensive income attributable to:

Owners of the parent

181,851

(4,365

)

Non-controlling interests

1,229

(445

)

183,080

(4,810

)

FIXED ASSETS

Intangible assets

9

59,338

132,450

Tangible assets

10

3,161,903

2,885,310

Investments

11

-

-

Investment property

12

2,360,000

1,360,000

5,581,241

4,377,760

CURRENT ASSETS

Stocks

13

899,870

956,743

Debtors

14

787,670

1,080,451

Cash at bank and in hand

1,197,512

628,663

2,885,052

2,665,857

CREDITORS

Amounts falling due within one year

15

1,603,403

2,293,806

NET CURRENT ASSETS

1,281,649

372,051

TOTAL ASSETS LESS CURRENT LIABILITIES

6,862,890

4,749,811

CREDITORS

Amounts falling due after more than one year

16

(4,370,000

)

(3,250,000

)

PROVISIONS FOR LIABILITIES

18

(27,041

)

(27,041

)

NET ASSETS

2,465,849

1,472,770

CAPITAL AND RESERVES

Called up share capital

19

8,910,000

8,100,000

Revaluation reserve

20

467,475

467,475

Non-distributable reserves

20

694,227

115,281

Retained earnings

20

(7,670,809

)

(7,273,714

)

SHAREHOLDERS' FUNDS

2,400,893

1,409,042

NON-CONTROLLING INTERESTS

64,956

63,728

TOTAL EQUITY

2,465,849

1,472,770

The financial statements were approved by the Board of Directors and authorised for issue on 30th March 2026 and were signed on its behalf by:

G Font Puig - Director

FIXED ASSETS

Intangible assets

9

20,000

80,000

Tangible assets

10

3,155,448

2,457,219

Investments

11

310,000

433,198

Investment property

12

1,935,000

650,000

5,420,448

3,620,417

CURRENT ASSETS

Stocks

13

899,870

956,743

Debtors

14

789,157

1,240,975

Cash at bank and in hand

1,094,851

512,526

2,783,878

2,710,244

CREDITORS

Amounts falling due within one year

15

1,583,940

2,283,505

NET CURRENT ASSETS

1,199,938

426,739

TOTAL ASSETS LESS CURRENT LIABILITIES

6,620,386

4,047,156

CREDITORS

Amounts falling due after more than one year

16

(4,370,000

)

(3,250,000

)

PROVISIONS FOR LIABILITIES

18

(27,041

)

(27,041

)

NET ASSETS

2,223,345

770,115

CAPITAL AND RESERVES

Called up share capital

19

8,910,000

8,100,000

Non-distributable reserves

20

651,727

115,281

Retained earnings

20

(7,338,382

)

(7,445,166

)

SHAREHOLDERS' FUNDS

2,223,345

770,115

Company's profit/(loss) for the financial year

643,230

(451,661

)

The financial statements were approved by the Board of Directors and authorised for issue on 30th March 2026 and were signed on its behalf by:

G Font Puig - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1st January 2024

4,000,000

(6,808,326

)

6,452

Changes in equity

Issue of share capital

4,100,000

-

-

Total comprehensive income

-

(465,388

)

461,023

Balance at 31st December 2024

8,100,000

(7,273,714

)

467,475

Changes in equity

Issue of share capital

810,000

-

-

Total comprehensive income

-

(397,095

)

-

Balance at 31st December 2025

8,910,000

(7,670,809

)

467,475

Non-distributable

Non-controlling

Total

reserves

Total

interests

equity

£

£

£

£

Balance at 1st January 2024

115,281

(2,686,593

)

64,173

(2,622,420

)

Changes in equity

Issue of share capital

-

4,100,000

-

4,100,000

Total comprehensive income

-

(4,365

)

(445

)

(4,810

)

Balance at 31st December 2024

115,281

1,409,042

63,728

1,472,770

Changes in equity

Issue of share capital

-

810,000

-

810,000

Total comprehensive income

578,946

181,851

1,229

183,080

Balance at 31st December 2025

694,227

2,400,893

64,957

2,465,850

Called up

share

Retained

Non-distributable

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1st January 2024

4,000,000

(6,993,505

)

115,281

(2,878,224

)

Changes in equity

Issue of share capital

4,100,000

-

-

4,100,000

Total comprehensive income

-

(451,661

)

-

(451,661

)

Balance at 31st December 2024

8,100,000

(7,445,166

)

115,281

770,115

Changes in equity

Issue of share capital

810,000

-

-

810,000

Total comprehensive income

-

106,784

536,446

643,230

Balance at 31st December 2025

8,910,000

(7,338,382

)

651,727

2,223,345

Cash flows from operating activities

Cash generated from operations

1

598,900

(4,052,707

)

Interest paid

(36,233

)

(66,667

)

Net cash from operating activities

562,667

(4,119,374

)

Cash flows from investing activities

Purchase of tangible fixed assets

(835,711

)

(57,379

)

Purchase of investment property

-

(527,800

)

Sale of intangible fixed assets

-

285,277

Sale of tangible fixed assets

31,893

251,908

Net cash from investing activities

(803,818

)

(47,994

)

Cash flows from financing activities

Share issue

810,000

4,100,000

Net cash from financing activities

810,000

4,100,000

Increase/(decrease) in cash and cash equivalents

568,849

(67,368

)

Cash and cash equivalents at beginning of year

2

628,663

696,031

Cash and cash equivalents at end of year

2

1,197,512

628,663

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

183,080

(4,810

)

Depreciation charges

178,699

236,078

Loss/(profit) on disposal of fixed assets

582

(7,022

)

Gain on revaluation of fixed assets

(578,946

)

(467,477

)

Finance costs

36,233

66,667

(180,352

)

(176,564

)

Decrease in stocks

56,873

54,672

Decrease in trade and other debtors

289,553

45,889

Increase/(decrease) in trade and other creditors

432,826

(3,976,704

)

Cash generated from operations

598,900

(4,052,707

)

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 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

1,197,512

628,663

Year ended 31st December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

628,663

696,031

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank and in hand

628,663

568,849

1,197,512

628,663

568,849

1,197,512

Total

628,663

568,849

1,197,512

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 & buildings

2% straight line, 4% straight line and 10% straight line

Office equipment

25% straight line

Fixtures & fittings

8.33% straight line and 20% straight line

Plant & machinery

20% straight line and 25% reducing balance

Motor vehicles

20% 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.