Company registration number 05084614 (England and Wales)
MOORIM EUROPE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
MOORIM EUROPE LTD
COMPANY INFORMATION
Director
Jun Woo Lee
Secretary
Jaeryoung Kim
Company number
05084614
Registered office
Suite 4.1, Ci Tower St. Georges Square
Coombe Road
New Malden
Surrey
KT3 4HG
Auditor
UHY Hacker Young
Quadrant House
4 Thomas More Square
London
E1W 1YW
MOORIM EUROPE LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Income statement
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
MOORIM EUROPE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The director presents the strategic report and financial statements for the year ended 31 December 2025.

Review of the business

Revenue has increased from £46,749,819 to £48,205,943 from 2024 to 2025.

The increase is primarily due to the increase in sales quantity as well as the company receiving increased demand and new customers due to the European competitors' capacity diminishing. Competitors have slowly dropped off as they are giving up the paper machines and hence Moorim expanded its existing client e le, as more European companies look to find an alternative supplier.

Principal risks and uncertainties

The uncertainty of the global economy, rising energy costs, increased ocean freight prices, and fluctuations in demand for paper products are considered by the directors to be the principal risks facing the company.

Competitiveness risks

The company seeks to mitigate its exposure to increasing competition and adverse market conditions by maintaining a diversified customer base across multiple jurisdictions and supplying a broad range of paper products to meet varying customer requirements.

Financial risks

The company does not hold financial instruments to manage its risks.

Credit risk

The company’s principal assets are inventories, cash and trade debtors.

The credit risk associated with cash is limited as the counterparties have credit ratings assigned by international credit rating agencies. The credit risk associated with inventories is also limited as goods are made to order.

The principal credit risk however arises from its trade debtors. In order to manage credit risk of debtors, the director sets limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt aging and collection history. In order to minimise credit risk all trading debtors are covered by a credit insurance policy. In the event of claiming against unpaid debt, it can be recoverable up to a maximum of 95% of the total invoice value.

Foreign exchange risk

Exchange rate risk is related to the potential variability of profits that can arise due to foreign exchange rates. The currency risk mainly arises from sales the company makes to customers in Europe and the sales are settled in foreign currencies such as Euro or USD. However, the currency risk the company faces is minimised as payment to the company’s main supplier is denominated in currencies which match the company’s sales to external customers.

MOORIM EUROPE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
Development and performance

Future developments

The company expects a competitive year ahead within the industry, with a forecasted increase in demand as some European suppliers are converting their production into a different type and closing down their production lines. This is expected to help the company to continue its focus on the UK, Italy, Netherlands, Poland and other European markets. Therefore, it is highly expected that the company will achieve targeted sales performance by increasing its market share and as a result will achieve increased revenue in the European market in the future.

Inflation

Due to high inflation in the global market place, that has occurred since November 2021, and continuing into 2025 our costs have increased due to rising prices from our suppliers as well as rising costs such as employee wages. Our director has assessed the situation and taken steps to ensure that we choose the most cost effective suppliers and manage our outgoings. We have also where possible within the market ensured that our prices take the additional logistics and miscellaneous charges into account.

On behalf of the board

Jun Woo Lee
Director
30 July 2026
MOORIM EUROPE LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2025.

Principal activities

The principal activity of the company during the year continued to be the sale of two-sided coated paper.

On 25 July 2025, the company changed its name from Moorim U.K. Limited to Moorim Europe Limited.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Jun Woo Lee
Auditor

The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has 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 director must not approve the financial statements unless he is 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 director is required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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. He is 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.

MOORIM EUROPE LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

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

On behalf of the board
Jun Woo Lee
Director
30 July 2026
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOORIM EUROPE LTD
- 5 -
Opinion

We have audited the financial statements of Moorim Europe Ltd (the 'company') for the year ended 31 December 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity 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 United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOORIM EUROPE LTD (CONTINUED)
- 6 -

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 director is 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 strategic report and the director's r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report 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 company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the director's r eport.

We have nothing to report in respect of the following matters in relation to which 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 director's remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOORIM EUROPE LTD (CONTINUED)
- 7 -
Auditor's 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 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.

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

Based on our understanding of the Company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the Company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. 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. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue.

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, enquiries of management and testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with 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 due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 him 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.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOORIM EUROPE LTD (CONTINUED)
- 8 -
Vinodkumar Vadgama
Senior Statutory Auditor
For and on behalf of UHY Hacker Young
30 July 2026
Chartered Accountants
Statutory Auditor
MOORIM EUROPE LTD
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
2025
2024
Notes
£
£
Revenue
3
48,205,943
46,749,819
Cost of sales
(47,192,669)
(45,685,086)
Gross profit
1,013,274
1,064,733
Administrative expenses
(885,674)
(798,494)
Other operating income
42,270
28,690
Operating profit
4
169,870
294,929
Investment income
8
5,532
5,301
Finance costs
9
(7,157)
(10,622)
Profit before taxation
168,245
289,608
Tax on profit
10
(42,900)
(64,026)
Profit and total comprehensive income for the year
125,345
225,582

The income statement has been prepared on the basis that all operations are continuing operations.

MOORIM EUROPE LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 10 -
2025
2024
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
147,616
202,854
Current assets
Inventories
12
1,501,149
1,307,998
Trade and other receivables
13
13,771,013
13,901,652
Cash and cash equivalents
2,404,696
1,855,389
17,676,858
17,065,039
Current liabilities
14
(16,766,658)
(16,287,620)
Net current assets
910,200
777,419
Total assets less current liabilities
1,057,816
980,273
Non-current liabilities
14
(110,208)
(158,010)
Net assets
947,608
822,263
Equity
Called up share capital
18
100,000
100,000
Retained earnings
847,608
722,263
Total equity
947,608
822,263

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 30 July 2026
Jun Woo Lee
Director
Company registration number 05084614 (England and Wales)
MOORIM EUROPE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2024
100,000
496,681
596,681
Year ended 31 December 2024:
Profit and total comprehensive income
-
225,582
225,582
Balance at 31 December 2024
100,000
722,263
822,263
Year ended 31 December 2025:
Profit and total comprehensive income
-
125,345
125,345
Balance at 31 December 2025
100,000
847,608
947,608
MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
1
Accounting policies
Company information

Moorim Europe Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Suite 4.1, Ci Tower St. Georges Square, Coombe Road, New Malden, Surrey, KT3 4HG. The company's principal activities and nature of its operations are disclosed in the director's report.

1.1
Basis of preparation

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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 principal accounting policies adopted are set out below.

The company has taken advantage of the following disclosure exemptions under FRS 101:

- the requirements of IFRS 7 Financial Instruments: Disclosures;

- the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;

- the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative information in respect of: (i) paragraph 79(a) (iv) of IAS 1, (ii) paragraph 73(e) of IAS 16 Property Plant and Equipment

- the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 39 to 40 ,111 and 134-136 of IAS 1 Presentation of Financial Statements;

- the requirements of IAS 7 Statement of Cash Flows;

- the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;

- the requirements of paragraph 17 of IAS 24 Related Party Disclosures;

- the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member ; and

- the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

Where required, equivalent disclosures are given in the group accounts of Moorim Paper Co. Ltd. The group accounts of Moorim Paper Co. Ltd are available to the public and can be obtained as set out in note 20.

1.2
Going concern

The director has at the time of approving the financial statements, a reasonable expectation that the true company has adequate resources to continue in operational existence for the foreseeable future. Thus the financial statements are prepared on a going concern basis. Furthermore, the parent company has agreed not to seek repayment of the amounts due until such time as it is able to pay.

MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 13 -
1.3
Revenue

Revenue is recognised to the extent that the company obtains right to consideration in exchange for its performances. Revenue is measured at the fair value of the consideration received, excluding discount, rebates and VAT. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on dispatch of goods.

1.4
Property, plant and equipment

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Over the term of the lease
Computers
over 3 years
Motor vehicles
Over the term of the lease

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.

1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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 (or cash-generating unit) 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 (or cash-generating unit) 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.

MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost 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.

1.7
Cash and cash equivalents

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

1.8
Financial assets

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 assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity are classified as held to maturity investments.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Trade Receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

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.

Derecognition of financial assets

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

1.9
Financial liabilities

The company recogni s es 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

Other financial liabilities, including borrowings, t rade 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.

Derecognition of financial liabilities

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

1.10
Equity instruments

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.

1.11
Taxation

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

Current 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.

MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
1.12
Employee benefits

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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases
As lessee

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. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for 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 adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated 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, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid 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. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is re assessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 17 -

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.15
Foreign exchange

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.

2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the director is 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.

There are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Critical judgements
Impairment of trade receivables

The company makes an estimate of the recoverable value of trade and other receivables. When assessing impairment of trade and other receivables, management considers factors including the credit rating of the receivable, the ageing profile and historical experience.

Valuations of lease liability & right-of-use asset

The application of IFRS 16 requires the company to make judgements that affect the valuation of the lease liabilities and the right-of-use assets. These include determining the interest rate used for discounting of future cashflows. The present value of the lease payment is determined using the discount rate representing the company’s incremental borrowing rate.

3
Revenue

The total revenue of the company for the year has been derived from its single continuing principal activity.

MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
3
Revenue
(Continued)
- 18 -
2025
2024
£
£
Other significant revenue
Interest income
5,532
5,301
2025
2024
£
£
Revenue analysed by geographical market
Europe
38,016,464
36,706,992
United Kingdom
10,140,006
10,009,378
Other
49,473
33,449
48,205,943
46,749,819
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
26,257
(1,204)
Depreciation of property, plant and equipment
55,238
35,731
Profit on disposal of property, plant and equipment
-
(19,264)
Cost of inventories recognised as an expense
47,192,669
45,685,086
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,500
24,000
For other services
Tax services
3,500
3,350
MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
6
Employees

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

2025
2024
Number
Number
Distribution
3
3
Administrative
2
1
Management
1
1
Total
6
5

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
557,605
440,248
Social security costs
22,942
13,562
Pension costs
5,638
5,061
586,185
458,871
7
Director's remuneration
2025
2024
£
£
Remuneration for qualifying services
237,275
211,837

The above reflects remuneration for the highest paid director.

8
Investment income
2025
2024
£
£
Interest income
Interest on bank deposits
5,532
5,301
MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
9
Finance costs
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
6,547
Interest on lease liabilities
7,157
4,075
7,157
10,622
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
42,900
64,026

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

2025
2024
£
£
Profit before taxation
168,245
289,608
Expected tax charge based on a corporation tax rate of 25.00% (2024: 25.00%)
42,061
72,402
Effect of expenses not deductible in determining taxable profit
839
6,855
Deferred tax adjustments in respect of prior years
-
(1,135)
Movement in deferred tax not recognised
-
(14,096)
Taxation charge for the year
42,900
64,026
11
Property, plant and equipment
Leasehold land and buildings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 31 December 2024
202,128
5,442
17,662
225,232
At 31 December 2025
202,128
5,442
17,662
225,232
MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
11
Property, plant and equipment
Leasehold land and buildings
Computers
Motor vehicles
Total
£
£
£
£
(Continued)
- 21 -
Accumulated depreciation and impairment
At 31 December 2024
16,844
605
4,929
22,378
Charge for the year
48,495
1,814
4,929
55,238
At 31 December 2025
65,339
2,419
9,858
77,616
Carrying amount
At 31 December 2025
136,789
3,023
7,804
147,616
At 31 December 2024
185,284
4,837
12,733
202,854

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2025
2024
£
£
Net values
Property
136,789
185,284
Motor vehicles
7,804
12,733
Computers
3,023
4,837
147,616
202,854
Depreciation charge for the year
Property
48,495
30,197
Motor vehicles
4,929
4,929
Computers
1,814
605
55,238
35,731
12
Inventories
2025
2024
£
£
Goods in transit
1,501,149
1,307,998
MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
13
Trade and other receivables
2025
2024
£
£
Trade receivables
13,763,705
13,900,433
Provision for bad and doubtful debts
(30,248)
(30,248)
13,733,457
13,870,185
VAT recoverable
-
6,270
Other receivables
21,597
25,197
Prepayments and accrued income
15,959
-
0
13,771,013
13,901,652

14
Liabilities
Current
Non-current
2025
2024
2025
2024
Notes
£
£
£
£
Trade and other payables
15
16,107,429
16,158,621
-
0
-
0
Corporation tax
42,900
64,026
-
-
Other taxation and social security
568,527
19,010
-
-
Lease liabilities
16
47,802
45,963
110,208
158,010
16,766,658
16,287,620
110,208
158,010
15
Trade and other payables
2025
2024
£
£
Amounts owed to fellow group undertakings
15,235,795
14,940,728
Accruals and deferred income
20,310
321,252
Other payables
851,324
896,641
16,107,429
16,158,621

Amounts owed to group undertakings are unsecured, interest free and are payable on demand.

MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
16
Lease liabilities
2025
2024
Net amounts due
£
£
Within one year
47,802
45,963
After more than one year
110,208
158,010
158,010
203,973
2025
2024
Maturity analysis of future lease payments
£
£
Within one year
53,120
53,119
In two to five years
115,534
168,654
Total undiscounted liabilities
168,654
221,773
Future finance charges and other adjustments
(10,644)
(17,800)
Lease liabilities in the financial statements
158,010
203,973

Lease payments relate to the company’s office premises, a leased vehicle and office equipment. All leases are on fixed repayment terms, with no contingent rentals or purchase options, and no restrictions placed on the use of the leased assets.

17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,638
5,061

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.

18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
MOORIM EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
18
Share capital
(Continued)
- 24 -
19
Debenture

A debenture dated 31 July 2009 created by the company secures all monies due or to become due from the company to Royal Bank of Scotland Plc on any account. The security is formally charged by Royal Bank of Scotland Plc on all assets of the company.

20
Controlling party

The director considers the immediate and ultimate parent undertaking and controlling party to be Moorim Paper Co. Ltd., a company incorporated in Korea. The consolidated financial statements of this group, which is the smallest and largest in which the company is consolidated, can be obtained from 656, Gangnam-daero, Gangnam-gu, Seoul, South Korea.

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