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Registered number: 08614581









YUMI INTERNATIONAL LIMITED







UNAUDITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

 
YUMI INTERNATIONAL LIMITED
 
 
COMPANY INFORMATION


Directors
Uttam Kumar Nepal (appointed 10 October 2013)
Clare Nepal (appointed 10 October 2013)




Registered number
08614581



Registered office
13 Gorst Road

Park Royal

London

NW10 6LA





 
YUMI INTERNATIONAL LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
6 - 7
Accountants' report
8
Statement of comprehensive income
9
Balance sheet
10 - 11
Statement of changes in equity
12 - 13
Notes to the financial statements
14 - 23


 
YUMI INTERNATIONAL LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction
 
The directors present their Strategic Report for the year ended 31 December 2025.

Business review

2025 represented a strategically important year in the continued development of the Yumi brand.

Against a backdrop of continued uncertainty across global retail markets, the business delivered a substantial improvement in profitability, margin quality and operational performance, whilst further strengthening the long-term positioning of the Yumi brand and investing in the foundations for future international growth.

Throughout the year, the Company remained focused on disciplined growth, operational efficiency, international expansion and brand elevation rather than pursuing unsustainable volume-led growth within an increasingly promotional fashion environment.

The business enters 2026 from a stronger financial and strategic position, supported by improved profitability, disciplined working capital management, enhanced operational control and growing international opportunities.

The foundations established over recent years position the business favourably for sustainable long-term growth and continued international development.

Brand Positioning and long-term strategy

Yumi is an established British womenswear brand recognised for feminine design, contemporary occasion dressing, elevated everyday style and accessible premium fashion.

Over recent years, the Company has continued evolving the Yumi brand towards a more refined and elevated market position, moving away from direct competition within lower-margin fast-fashion categories and focusing instead on product quality, design integrity, curated collections and long-term customer loyalty.

The business remains committed to creating thoughtfully designed collections that combine femininity, versatility and accessible premium quality, allowing the brand to resonate with customers across a broad range of occasions and life stages.

The directors believe consumers are increasingly seeking better quality, stronger design identity, longevity, authenticity and greater emotional connection from fashion brands, particularly during periods of wider economic uncertainty and market saturation within the fashion sector.

As a result, the Company’s strategic focus throughout 2025 remained centred on:

• strengthening product quality and consistency;
• enhancing brand identity and presentation;
• improving customer experience across all channels;
• reducing reliance on heavy discount-led trading;
• improving operational scalability; and
• building stronger long-term customer relationships.

This strategic repositioning continues to strengthen both the resilience and long-term value of the Yumi brand. 

Page 1

 
YUMI INTERNATIONAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025

Principal risks and uncertainties
 
As with all businesses operating within the global fashion sector, the Company faces a number of risks and uncertainties including:

• geopolitical instability and economic volatility;
• weakening consumer confidence;
• inflationary pressures;
• foreign exchange fluctuations;
• supply chain disruption;
• increasing digital marketing costs; and
• continued competitive pressures across international retail markets.

The Company continues to monitor these risks closely and maintains a disciplined approach to inventory management, cash flow, operational flexibility and strategic planning.

Financial key performance indicators

Despite continued macroeconomic uncertainty across the global retail sector, the Company delivered one of its strongest financial and operational performances to date.


.
Comparative Performance Overview


Metric
2025
2024

Gross Merchandise Value (GMV)
£28.37m
£28.44m

Net Revenue (ex VAT)
£10.32m
£10.19m

Gross Profit
£7.65m
£6.85m

Gross Margin
74.2%
67.2%

Adjusted EBITDA
£1.11m
£597k

Return Rate
56.2%
58.0%

Adjusted EBITDA is stated before the exceptional R&D tax credit repayment/reversal and recruitment cost.

Page 2

 
YUMI INTERNATIONAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025

Global Market Environment

The global fashion industry continued to experience substantial challenges throughout 2025.

Ongoing geopolitical instability, inflationary pressures, changing global trade dynamics, supply chain disruption, currency volatility and weakening consumer confidence across the UK and Europe continued to create difficult trading conditions across the wider retail sector.

The global economy is increasingly operating within a more complex multipolar environment where geopolitical events, inflationary pressures and economic uncertainty continue influencing discretionary spending patterns and consumer purchasing behaviour.

Many of these wider macroeconomic circumstances remain outside the Company’s direct control. However, despite these external challenges, the business demonstrated resilience and continued progression throughout the year.

The Company remained focused on protecting margin quality, maintaining cash flow discipline and strengthening the long-term quality of the business rather than prioritising short-term sales growth at the expense of profitability.

International Expansion

International expansion remained a major strategic priority throughout 2025.

The Company continued investing selectively in international infrastructure, marketplace development, ecommerce capability and operational scalability to support future overseas growth opportunities.

Particular progress was made within the United States market, which the directors consider to be a significant long-term opportunity for the business.

Although still at an early stage, the United States has the potential to become a meaningful contributor to future growth, supported by the brand’s distinctive product offering, scalable digital infrastructure and increasing international customer reach.

Yumi’s distinctive British identity, feminine handwriting and increasingly elevated product offering continue resonating with international customers seeking accessible premium fashion with stronger design differentiation.

The business also continued strengthening relationships with selected international marketplaces and strategic retail partners whilst maintaining disciplined operational control.

Page 3

 
YUMI INTERNATIONAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025

Ecommerce and Digital Development

Following the successful migration to Shopify, the Company continued investing in ecommerce optimisation, digital infrastructure and customer experience throughout the year.

The Shopify re-platforming provides a more scalable digital infrastructure aligned with the Company's long-term omnichannel and international growth strategy.

Focus areas throughout the year included:

• improved site performance;
• enhanced customer journey;
• elevated brand presentation;
• refined digital storytelling; and
• operational scalability to support future international growth.

These investments have created a materially stronger foundation for future direct-to-consumer growth and long-term international expansion.

Sustainability and Responsible Business

The Company recognises the importance of responsible sourcing, product longevity and continuous operational improvement across the business.

Yumi’s long-term strategy remains centred around creating quality garments with stronger longevity and timeless appeal rather than participating in short-cycle disposable fashion trends.

The Company continues working closely with suppliers and manufacturing partners to support responsible sourcing practices, operational transparency and long-term supplier relationships.

Page 4

 
YUMI INTERNATIONAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025

Outlook For 2026 and Beyond

The directors remain confident in the future direction of the business.

Whilst wider global retail markets remain uncertain, the Company enters 2026 from a considerably stronger operational and strategic position than in previous years.

The business now benefits from:

• materially improved profitability;
• significantly stronger gross margins;
• enhanced operational discipline;
• disciplined working capital;
• improved brand positioning;
• scalable ecommerce infrastructure; and
• growing international opportunities.

The continued evolution of the Yumi brand towards a more elevated and refined market position is generating encouraging momentum across both existing and developing markets, providing a strong platform for further international expansion and future growth.

The Company believes there remains significant long-term opportunity to further expand the brand internationally, particularly within the United States market and selected strategic digital channels.

Strategic priorities for 2026 and beyond include:

• further international expansion;
• continued development of the United States market;
• strengthening direct-to-consumer performance;
• ongoing elevation of the Yumi brand;
• enhancing customer retention and lifetime value; and
• continued operational efficiency improvements.

The business remains focused on building a modern British womenswear brand centred around feminine design, quality product execution, contemporary occasion dressing and accessible premium fashion.

The Board believes the investments made over recent years in product, brand, technology and international infrastructure have positioned the business well to capitalise on future growth opportunities, whilst maintaining the disciplined operational approach that underpins long-term value creation.

Going Concern

The directors have reviewed the Company’s forecasts, trading performance, cash flow projections and overall financial position and remain satisfied that the business has adequate resources to continue operating for the foreseeable future.

Accordingly, the financial statements have been prepared on a going concern basis.

Page 5

 
YUMI INTERNATIONAL LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025

The directors present their report and the financial statements for the year ended 31 December 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the Company during the year continued to be the design, marketing and distribution of womenswear fashion garments and accessories under the Yumi brand.

Page 6

 
YUMI INTERNATIONAL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025

Results and dividends

The profit for the year, after taxation, amounted to £740,492 (2024 - £429,953).

The directors are pleased with the Company's performance during the year, particularly the substantial improvement in profitability, gross margin quality and operational efficiency despite continued uncertainty across the global retail sector.

Gross margin improved significantly to 74.2% compared with 67.2% in the prior year, whilst Adjusted EBITDA increased to approximately £1.11 million compared with £597,000 in 2024.

Profit before taxation has been confirmed following finalisation of the statutory accounts.

The Company's continued focus on operational discipline, premium brand positioning, margin enhancement and international growth has positioned the business strongly for future development. This has been supported by improved profitability, disciplined working capital management, enhanced operational control and growing international opportunities, and the directors remain confident in the Company's prospects going forward.

No dividends were declared in respect of the year ended 31 December 2025. (2024: £500,000).

The business continues to demonstrate disciplined financial management whilst maintaining sufficient resources to support future operational and strategic growth.

Financial Risk Management

The Company continues monitoring financial risks associated with foreign exchange fluctuations, inflationary pressures, interest rate movements and wider macroeconomic uncertainty.

Management maintains a disciplined approach towards working capital management, inventory control, cash flow forecasting and operational flexibility to support the long-term stability of the business.

Directors

The directors who served during the year were:

Uttam Kumar Nepal (appointed 10 October 2013)
Clare Nepal (appointed 10 October 2013)

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 4 September 2026 and signed on its behalf.
 





Uttam Kumar Nepal
Director

Page 7

 
YUMI INTERNATIONAL LIMITED
 
 
  
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF YUMI INTERNATIONAL LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2025

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Yumi International Limited for the year ended 31 December 2025 which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes from the Company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW)we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.

This report is made solely to the Board of directors of Yumi International Limited, as a body, in accordance with the terms of our engagement letter dated 15 March 2026Our work has been undertaken solely to prepare for your approval the financial statements of Yumi International Limited and state those matters that we have agreed to state to the Board of directors of Yumi International Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Yumi International Limited and its Board of directors, as a body, for our work or for this report. 

It is your duty to ensure that Yumi International Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Yumi International Limited. You consider that Yumi International Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or review of the financial statements of Yumi International Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

  



Krishna Prasad Dahal, FCCA
 
Focus Somar Audit and Tax Accountants Limited
  
Apex House
Grand Arcade
North Finchley
London
N12 0EH
4 September 2026
Page 8

 
YUMI INTERNATIONAL LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025

2025
2024
Note
£
£

  

Turnover
  
10,321,700
10,199,401

Cost of sales
  
(2,663,892)
(3,348,574)

Gross profit
  
7,657,808
6,850,827

Distribution costs
  
(9,199)
(9,452)

Administrative expenses
  
(6,748,058)
(6,400,378)

Other operating income
  
91,215
138,484

Operating profit
  
991,766
579,481

Interest payable and similar expenses
  
(449)
(1,112)

Profit before tax
  
991,317
578,369

Tax on profit
  
(250,825)
(148,416)

Profit for the financial year
  
740,492
429,953

Other comprehensive income for the year
  

Total comprehensive income for the year
  
740,492
429,953

The notes on pages 14 to 23 form part of these financial statements.

Page 9

 
YUMI INTERNATIONAL LIMITED
REGISTERED NUMBER: 08614581

BALANCE SHEET
AS AT 31 DECEMBER 2025

2025
2024
Note
£
£

Fixed assets
  

Intangible assets
 5 
-
494

Tangible assets
 6 
32,445
39,054

  
32,445
39,548

Current assets
  

Stocks
 7 
2,371,033
2,196,671

Debtors: amounts falling due within one year
 8 
1,638,212
1,422,395

Cash at bank and in hand
 9 
314,006
346,325

  
4,323,251
3,965,391

Creditors: amounts falling due within one year
 10 
(1,288,646)
(1,678,381)

Net current assets
  
 
 
3,034,605
 
 
2,287,010

Total assets less current liabilities
  
3,067,050
2,326,558

  

Net assets
  
3,067,050
2,326,558


Capital and reserves
  

Called up share capital 
 12 
970
970

Profit and loss account
 13 
3,066,080
2,325,588

  
3,067,050
2,326,558


Page 10

 
YUMI INTERNATIONAL LIMITED
REGISTERED NUMBER: 08614581
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2025

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 September 2026.




Uttam Kumar Nepal
Director

The notes on pages 14 to 23 form part of these financial statements.

Page 11

 
YUMI INTERNATIONAL LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2025
970
2,325,588
2,326,558


Comprehensive income for the year

Profit for the year

-
740,492
740,492


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
740,492
740,492


Total transactions with owners
-
-
-


At 31 December 2025
970
3,066,080
3,067,050


The notes on pages 14 to 23 form part of these financial statements.

Page 12

 
YUMI INTERNATIONAL LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2024
970
2,395,635
2,396,605


Comprehensive income for the year

Profit for the year

-
429,953
429,953


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
429,953
429,953


Contributions by and distributions to owners

Dividends: Equity capital
-
(500,000)
(500,000)


Total transactions with owners
-
(500,000)
(500,000)


At 31 December 2024
970
2,325,588
2,326,558


The notes on pages 14 to 23 form part of these financial statements.

Page 13

 
YUMI INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

1.


General information

Yumi International Limited is a private company, limited by shares, registered in England and Wales, registration number 08614581, registration address 13 Gorst Road, Park Royal, London NW10 6LA. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 
YUMI INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
YUMI INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 16

 
YUMI INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property

Straight line over life of lease
Plant and machinery
-
25%
on cost
Fixtures and fittings
-
25%
on cost
Improvements to property
-
15%
on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 17

 
YUMI INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.

The directors consider that there were no significant judgements made in applying the Company's accounting policies during the year that have a material effect on the amounts recognised in the financial statements.

The directors have also considered the key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date and have concluded that there are no estimates which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.


4.


Employees

The average monthly number of employees, including the directors, during the year was as follows:


        2025
        2024
            No.
            No.







30
32

Page 18

 
YUMI INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

5.


Intangible assets




Computer software

£





At 1 January 2025
11,850


Disposals
(11,850)



At 31 December 2025

-





At 1 January 2025
11,356


Charge for the year on owned assets
494


On disposals
(11,850)



At 31 December 2025

-



Net book value



At 31 December 2025
-



At 31 December 2024
494


Page 19

 
YUMI INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

6.


Tangible fixed assets


Long-term leasehold property
Plant and machinery
Improvements to property
Total

£
£
£
£



Cost or valuation


At 1 January 2025
2,410
19,065
51,338
72,813


Additions
-
6,681
-
6,681


Disposals
(2,410)
(7,303)
-
(9,713)



At 31 December 2025

-
18,443
51,338
69,781



Depreciation


At 1 January 2025
2,290
10,018
21,451
33,759


Charge for the year on owned assets
120
5,468
7,701
13,289


Disposals
(2,410)
(7,302)
-
(9,712)



At 31 December 2025

-
8,184
29,152
37,336



Net book value



At 31 December 2025
-
10,259
22,186
32,445



At 31 December 2024
120
9,047
29,887
39,054




The net book value of land and buildings may be further analysed as follows:


2025
2024
£
£

Long leasehold
-
120

-
120



7.


Stocks

2025
2024
£
£

Finished goods and goods for resale
2,371,033
2,196,671

2,371,033
2,196,671


Page 20

 
YUMI INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

8.


Debtors

2025
2024
£
£


Trade debtors
934,768
514,972

Other debtors
54,138
58,861

Prepayments and accrued income
219,906
168,337

Deferred taxation
429,400
680,225

1,638,212
1,422,395



9.


Cash and cash equivalents

2025
2024
£
£

Cash at bank and in hand
314,006
346,325

Less: bank overdrafts
(91,181)
-

222,825
346,325



10.


Creditors: Amounts falling due within one year

2025
2024
£
£

Bank overdrafts
91,181
-

Trade creditors
738,793
1,122,160

Other taxation and social security
325,066
309,142

Other creditors
-
123,038

Accruals and deferred income
133,606
124,041

1,288,646
1,678,381



11.


Deferred taxation

Page 21

 
YUMI INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
 
11.Deferred taxation (continued)




2025


£






At beginning of year
680,225


Charged to profit or loss
(250,825)



At end of year
429,400

The deferred tax asset is made up as follows:

2025
2024
£
£


Tax losses carried forward
429,400
680,225

429,400
680,225


12.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



970 (2024 - 970) Ordinary shares of £1.00 each
970
970



13.


Reserves


.
Profit and loss account


2025

£

Balance at 01 January 2025
2,325,588

Profit for the year
740,492

Balance at 31 December 2025
3,066,080

Page 22

 
YUMI INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025

14.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £11,365 (2024 : £11,403) . Contributions totalling £2,646 (2024 : £2,744) were payable to the fund at the balance sheet date and are included in creditors.


15.


Commitments under operating leases

At 31 December 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£


Not later than 1 year
237,369
64,967

Later than 1 year and not later than 5 years
638,555
65,059

875,924
130,026


16.


Post balance sheet events

Subsequent to the year end, in January 2026, the Company became a wholly owned subsidiary of Yumi Holdings Ltd as part of a group restructuring. The ultimate ownership of the Company remained unchanged.


17.


Controlling party

The company is controlled by Uttam K Nepal by virtue of majority of shareholding by Mr Uttam K. Nepal and his wife Mrs. Clare Nepal in Yumi International Ltd.

 
Page 23