EMKAP UK LTD
Company Information
EMKAP UK LTD
Contents
EMKAP UK LTD
Strategic report
For the year ended 31 December 2025
The directors present their Strategic report for the year ended 31 December 2025.
Overview
EmKap UK Ltd (“the Company”) is regulated by the Financial Conduct Authority (FCA) and predominantly engages in proprietary trading and matched principal brokerage, with a keen focus on fixed income, particularly in the emerging markets. The Company also provides custody, investment advice and brokerage services.
Overview
EmKap UK Ltd (“the Company”) is regulated by the Financial Conduct Authority (FCA) and predominantly engages in proprietary trading and matched principal brokerage, with a keen focus on fixed income, particularly in the emerging markets. The Company also provides custody, investment advice and brokerage services.
Market volatility remained a key theme in 2025, driven by geopolitical, and economic events. The U.S. elections were a major focus, with a Republican sweep initially fuelling economic optimism but also heightening inflation concerns. Despite ECB and FED monetary easing, bond markets lost earlier gains as the 10-year Treasury yield rose from 3.9% to 4.6% for year end, driven by concerns over potential tariff policies and their inflationary effects. Equities performed well for the year, with the S&P 500 rising 23.31%, whilst the Nasdaq gained 24.88%, but both underperforming the exceptional 2023 run amid tech valuation concerns.
The Company remained profitable in 2025, achieving a modest gain despite market volatility on the back of the conclusion of opportunistic high-margin trades, and rising costs. Profitability was primarily driven by intermediation gains, reflecting the Company’s continued efforts to expand and strengthen its counterparty network and its overall client facing business. However, overall results were tempered by a slowdown in high-margin distressed asset trades, as reduced liquidity and rising prices constrained opportunities. Additionally, heightened market volatility and recessionary concerns limited performance on the proprietary trading side.
Throughout the year, the Company continued to focus on growth by investing in infrastructure and operational improvements while expanding its client base and strengthening relationships with liquidity providers to support long-term expansion.
A key growth initiative in 2025 was the establishment of various direct memberships with custody and settlement and clearing banking and related providers, which will come into fruition in the first part of 2025. These developments, are a long haul strategy but are to strengthen the Company’s custodial offerings by reducing reliance on intermediaries whilst improving competitiveness, and operational efficiencies. This, in turn, will support asset growth and better position the Company to capitalize on current opportunities in the custody business, especially for small to mid-sized companies.
The Company remained profitable in 2025, achieving a modest gain despite market volatility on the back of the conclusion of opportunistic high-margin trades, and rising costs. Profitability was primarily driven by intermediation gains, reflecting the Company’s continued efforts to expand and strengthen its counterparty network and its overall client facing business. However, overall results were tempered by a slowdown in high-margin distressed asset trades, as reduced liquidity and rising prices constrained opportunities. Additionally, heightened market volatility and recessionary concerns limited performance on the proprietary trading side.
Throughout the year, the Company continued to focus on growth by investing in infrastructure and operational improvements while expanding its client base and strengthening relationships with liquidity providers to support long-term expansion.
A key growth initiative in 2025 was the establishment of various direct memberships with custody and settlement and clearing banking and related providers, which will come into fruition in the first part of 2025. These developments, are a long haul strategy but are to strengthen the Company’s custodial offerings by reducing reliance on intermediaries whilst improving competitiveness, and operational efficiencies. This, in turn, will support asset growth and better position the Company to capitalize on current opportunities in the custody business, especially for small to mid-sized companies.
Looking ahead, the 2026 market outlook remains uncertain due to trade war risks and tariff policy concerns, which are pressuring U.S. equities and raising fears of a global slowdown. However, improving geopolitical conditions, including Ukraine-Russia peace talks and increased European defence spending, may support global markets, although the latter remains negative for EU rates.
The Firm will seek opportunistic entry points for proprietary investments in sectors poised to benefit from evolving political and economic developments. At the same time, it will continue to expand its client base and counterparty network for its matched principal trading business, ensuring sustained growth.
The Company remains committed to strengthening its custodial and operational capabilities to enhance client engagement and to generate passive income, helping mitigate exposure to market volatility. Additionally, the Company will continue to uphold strict regulatory compliance and invest in reinforcing its compliance functions to maintain high standards of corporate governance.
The Firm will seek opportunistic entry points for proprietary investments in sectors poised to benefit from evolving political and economic developments. At the same time, it will continue to expand its client base and counterparty network for its matched principal trading business, ensuring sustained growth.
The Company remains committed to strengthening its custodial and operational capabilities to enhance client engagement and to generate passive income, helping mitigate exposure to market volatility. Additionally, the Company will continue to uphold strict regulatory compliance and invest in reinforcing its compliance functions to maintain high standards of corporate governance.
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EMKAP UK LTD
Strategic report (continued)
For the year ended 31 December 2025
Future developments (continued)
In conclusion, EmKap UK Ltd’s initiatives underscore the Company’s dedication to long-term growth, operational excellence, and client-centric approach. By continuously adapting to market dynamics and strengthening its core capabilities, the Company is well-positioned to capitalize on emerging opportunities while maintaining resilience in an evolving financial landscape.
In conclusion, EmKap UK Ltd’s initiatives underscore the Company’s dedication to long-term growth, operational excellence, and client-centric approach. By continuously adapting to market dynamics and strengthening its core capabilities, the Company is well-positioned to capitalize on emerging opportunities while maintaining resilience in an evolving financial landscape.
The Company's key performance indicators are revenue and operating profit.
Turnover $1,167,711 (2024: $775,205)
Operating profit/(loss) $141,212 (2024: $(79,299))
Turnover $1,167,711 (2024: $775,205)
Operating profit/(loss) $141,212 (2024: $(79,299))
The Firm's directors are responsible for determining the level of risk acceptable and for implementing relative processes to mitigate risks were applicable. This is subject to regular review.
The Company considers the following as principal risks:
i. Liquidity risk
Management considers liquidity as a risk during financial market outliers or due to credit failures of collaborating counterparties. In an effort to prudently manage these risk factors, management may infuse the Firm's capital, if necessary, review day-to-day cash flows across varying market scenarios, monitor daily limit exposures with clients and liquidity providers and regularly review the credit ratings of counterparties.
ii. Credit risk
Risk of default of credit institutions is quantified as moderate, based on the relevant calculations in the Company's capital requirements. Credit event incidents should not occur on a frequent basis, but as the Firm operates in Emerging Markets it is estimated that they may occur more frequently than industry standards i.e. once every three years.
iii. Foreign exchange risk
Foreign exchange risk is adequately monitored by ensuring that trades are matched off across currency pairs and that. where possible, transactions occur in the reporting currency of US Dollars.
The policy towards risk management is to take an active approach to identify and manage financial risks and ensure that adequate risk controls and supervision exist across the underlying platform to flag risks and to manage them appropriately. Financial asset and liability transactions should be incorporated to facilitate planned outcomes, the reduction of unnecessary volatility, and to bolster certainty.
iv. Price risk
As the Firm’s predominant line of business is trading on a matched principal basis, market risk is considered to be contained. In order to mitigate market and settlement risk the Company has a defined risk management policy in place, that outlines trading limits and decision-making hierarchy both for matched principal trading and dealing on own investments.
The Company considers the following as principal risks:
i. Liquidity risk
Management considers liquidity as a risk during financial market outliers or due to credit failures of collaborating counterparties. In an effort to prudently manage these risk factors, management may infuse the Firm's capital, if necessary, review day-to-day cash flows across varying market scenarios, monitor daily limit exposures with clients and liquidity providers and regularly review the credit ratings of counterparties.
ii. Credit risk
Risk of default of credit institutions is quantified as moderate, based on the relevant calculations in the Company's capital requirements. Credit event incidents should not occur on a frequent basis, but as the Firm operates in Emerging Markets it is estimated that they may occur more frequently than industry standards i.e. once every three years.
iii. Foreign exchange risk
Foreign exchange risk is adequately monitored by ensuring that trades are matched off across currency pairs and that. where possible, transactions occur in the reporting currency of US Dollars.
The policy towards risk management is to take an active approach to identify and manage financial risks and ensure that adequate risk controls and supervision exist across the underlying platform to flag risks and to manage them appropriately. Financial asset and liability transactions should be incorporated to facilitate planned outcomes, the reduction of unnecessary volatility, and to bolster certainty.
iv. Price risk
As the Firm’s predominant line of business is trading on a matched principal basis, market risk is considered to be contained. In order to mitigate market and settlement risk the Company has a defined risk management policy in place, that outlines trading limits and decision-making hierarchy both for matched principal trading and dealing on own investments.
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EMKAP UK LTD
Strategic report (continued)
For the year ended 31 December 2025
In accordance with Section 172 of the Companies Act 2006, the directors of EmKap UK Ltd confirm that they have acted in good faith and in the way they consider would be suited to promote the success of the company for the benefit of its members as a whole. In doing so, the directors have considered an array of factors, including but not limited to the long-term consequences of decisions, the interests of employees, the need to foster the company's business relationships with clients and counterparties, the desirability of the company to maintain a reputation for high standards of business conduct, and the need to act fairly between members of the company.
As a regulated entity, the Company also ensures compliance with the FCA's regulations and guidelines, which include conducting our business with integrity, due care, skill, and diligence. This commitment underpins our strategic decisions and day-to-day management of the firm, ensuring that we maintain high standards of market conduct and align our business practices with market standards and for the benefit of our stakeholders.
This year, the board continued to make strategic decisions that were guided by our obligation to promote the success of the company while adhering to regulatory requirements and managing risks effectively. These included investing in advanced technology to further enhance settlement efficiency and ensuring that all our operations are transparent and compliant with evolving rules and regulations.
The directors have also placed a strong emphasis on corporate culture and ethics, recognizing that a responsible approach to conducting business is critical for sustaining the Company’s long-term value proposition. This involves ongoing training programs for existing employees to ensure they remain informed about and committed to our ethical standards and regulatory responsibilities.
In conclusion, the board continues to believe that its actions and decisions will deliver sustainable growth and value for our shareholders, along with positive outcomes for our other stakeholders, thereby promoting the long-term success of EmKap UK Ltd.
As a regulated entity, the Company also ensures compliance with the FCA's regulations and guidelines, which include conducting our business with integrity, due care, skill, and diligence. This commitment underpins our strategic decisions and day-to-day management of the firm, ensuring that we maintain high standards of market conduct and align our business practices with market standards and for the benefit of our stakeholders.
This year, the board continued to make strategic decisions that were guided by our obligation to promote the success of the company while adhering to regulatory requirements and managing risks effectively. These included investing in advanced technology to further enhance settlement efficiency and ensuring that all our operations are transparent and compliant with evolving rules and regulations.
The directors have also placed a strong emphasis on corporate culture and ethics, recognizing that a responsible approach to conducting business is critical for sustaining the Company’s long-term value proposition. This involves ongoing training programs for existing employees to ensure they remain informed about and committed to our ethical standards and regulatory responsibilities.
In conclusion, the board continues to believe that its actions and decisions will deliver sustainable growth and value for our shareholders, along with positive outcomes for our other stakeholders, thereby promoting the long-term success of EmKap UK Ltd.
This report was approved by the board on 27 April 2026 and signed on its behalf by:
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EMKAP UK LTD
Directors' report
For the year ended 31 December 2025
The directors present their annual report together with the financial statements of EmKap UK Limited ('the company') for the year ended 31 December 2025 .
The profit for the year, after taxation, amounted to $17,169 (2024: $44,680).
The directors did not recommend a dividend during the year (2024: $nil).
The directors who served during the year were:
The directors are responsible for preparing the annual report and the financial statements, in accordance with applicable law.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.
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 the financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;
∙assess the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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EMKAP UK LTD
Directors' report (continued)
For the year ended 31 December 2025
The Company has chosen in accordance with s.414C(II) of the Companies Act 2006, to set out in the company's Strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Group (Accounts and Reports) Regulations 2008, and Part 2 of The Companies (Miscellaneous Reporting) Regulations 2018 to be contained in the Directors' report. It has done so in respect of risk exposure, future developments, and engagement with suppliers, customers and others.
The auditor, Buzzacott Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 27 April 2026 and signed on its behalf by:
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Independent auditor's report to the members of EMKAP UK LTD
For the year ended 31 December 2025
We have audited the financial statements of EMKAP UK LTD ('the company') for the year ended 31 December 2025 which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted International Accounting Standards.
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 United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Independent auditor's report to the members of EMKAP UK LTD (continued)
For the year ended 31 December 2025
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' 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 identified material misstatements in the Strategic report or the Directors' report.
Responsibilities of directors
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.
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:
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Independent auditor's report to the members of EMKAP UK LTD (continued)
For the year ended 31 December 2025
Auditor's responsibilities for the audit of the financial statements (continued)
How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud
and non-compliance with laws and regulations, was as follows:
How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud
and non-compliance with laws and regulations, was as follows:
∙the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, including
knowledge specific to auditing investment brokerage businesses;
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, including
knowledge specific to auditing investment brokerage businesses;
∙we made enquiries of management as to where they considered there was susceptibility to fraud, and their
knowledge of actual, suspected and alleged fraud;
knowledge of actual, suspected and alleged fraud;
∙we identified the laws and regulations that could reasonably be expected to have a material effect on the financial
statements through discussions with directors and other management at the planning stage, and from our
knowledge and experience of investment brokerage businesses;
statements through discussions with directors and other management at the planning stage, and from our
knowledge and experience of investment brokerage businesses;
∙the audit team held a discussion to identify any particular areas that were considered to be susceptible to
misstatement, including with respect to fraud and non-compliance with laws and regulations; and
misstatement, including with respect to fraud and non-compliance with laws and regulations; and
∙we focused our planned audit work on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including the Companies Act 2006, The Financial Services and Markets Act 2000, employment legislation, Sanctions and Anti-Money Laundering Act 2018 and taxation legislation.
We assessed the extent of compliance with the laws and regulations identified above through:
∙making enquiries of management;
∙inspecting legal expenditure and correspondence throughout the year for any potential litigation or claims;
∙considering the internal controls in place that are designed to mitigate risks of fraud and non-compliance with laws
and regulations; and
and regulations; and
∙considering whether transactions the company was party to was compliant with the UK's sanctions relating to Russia.
To address the risk of fraud through management bias and override of controls, we:
∙determined the susceptibility of the company to management override of controls by checking the implementation
of controls and enquiring of individuals involved in the financial reporting process; and
of controls and enquiring of individuals involved in the financial reporting process; and
∙reviewed journal entries at the year end to identify unusual transactions, particularly in relation to expenditure;
∙performed analytical procedures to identify any large, unusual or unexpected transactions and investigated any large variances from the prior period;
∙reviewed accounting estimates and evaluated where judgements or decisions made by management indicated bias
on the part of the company's management;
on the part of the company's management;
∙carried out substantive testing to check the occurrence and cut-off of expenditure;
∙tested the completeness of revenue by comparing reports generated by the trading platform to entries
in the nominal ledger; and
in the nominal ledger; and
∙tested the occurrence and accuracy of revenue by agreeing trades recorded in the trading platform to Bloomberg tickets.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which
included:
included:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙enquiring of management as to actual and potential litigation and claims; and
∙reviewing correspondence with the Financial Conduct Authority.
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Independent auditor's report to the members of EMKAP UK LTD (continued)
For the year ended 31 December 2025
Auditor's responsibilities for the audit of the financial statements (continued)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
130 Wood Street
EC2V 6DL
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EMKAP UK LTD
Statement of comprehensive income
For the year ended 31 December 2025
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EMKAP UK LTD - Registered number: 09779913
Statement of financial position
As at 31 December 2025
The financial statements on pages 10 to 32 were approved and authorised for issue by the board of directors on 27 April 2026 and were signed on its behalf by:
The notes on pages 14 to 32 form part of these financial statements.
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EMKAP UK LTD
Statement of changes in equity
For the year ended 31 December 2025
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EMKAP UK LTD
Statement of cash flows
For the year ended 31 December 2025
The notes on pages 14 to 32 form part of these financial statements.
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
EmKap UK Ltd (the 'company') is a private company limited by shares incorporated in England and Wales with registration 09779913. Its registered office is at 9-10 Domingo Street, London, EC1Y 0TA.
The company's principal activity isproprietary trading and matched principal brokerage for fixed income and equities .
The company's principal activity is
2.Accounting policies
These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the UK, IFRS Interpretations Committee and the parts of the Companies Act 2006 applicable to companies reporting under IFRS.
These financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies below.
These financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies below.
There are no new or amended international accounting standards or IFRIC interpretations that have been issued that would be expected to have a material impact on the company.
Revenue from gains on financial instruments is recognised on a trade date basis and in accordance with the substance of the relevant agreements. Profits or losses from the sale of financial instruments represent the difference between the net proceeds and the carrying amount of the investments sold.
Advisor charges on other business is recognised on completion of the relevant documentation to affect the completion of the transaction.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the period until the date the rent is expected to be adjusted to the prevailing market.
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
FV gain/(loss) on investments are the unrealised gains or losses recognised on financial assets held at fair value through profit or loss. Once the relating financial asset held at fair value is disposed and the gain becomes realised, all previously recognised unrealised gains/(losses) are reversed, and the total realised gain/(loss) is recognised within revenue as 'Deals on own account'.
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following range:
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
The company holds money on behalf of clients in accordance with the client money rules of the UK Financial Conduct Authority (FCA). Such money is classified as 'segregated client funds' in accordance with these rules. Segregated client funds comprise individual client funds held in segregated client money accounts. Segregated client money accounts hold statutory trust status restricting the company's ability to control the money, and accordingly, such amounts are not included in the Statement of financial position.
Financial assets held at fair value through profit or loss are valued using a market approach based on observable data for identical instruments.
Basic financial assets
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts.
All receivables are regularly reviewed and a provision for impairment of trade receivables is established when there is objective evidence that all amounts may not be collectible according to the original terms of the sales transaction. Bad debts are written off as incurred.
Other financial assets
The company classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, and available for sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition and re-evaluates this designation at every reporting date. The company has no financial assets classified at fair value through profit or loss or as available for sale.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the end of the reporting period, which are classified as non-current assets. Loans and receivables are included in trade and other receivables in the Statement of financial position. Loans and receivables are subsequently carried at amortised cost using the effective interest method.
Impairment of financial assets
The company assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a "loss event") and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities are measured at fair value on initial recognition. For all financial liabilities not subsequently measured at fair value through the Statement of comprehensive income, the transaction costs directly attributable to the acquisition of the financial liabilities are also recognised.
Basic financial liabilities
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments which do not meet the conditions are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
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.
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The policies have been applied consistently in preparing the accounts in both current and prior years.
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The policies have been applied consistently in preparing the accounts in both current and prior years.
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
5.Revenue (continued)
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
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Page 24
EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
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Page 25
EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
Retained earnings
Retained earnings includes all current and prior periods' profits and losses, and distributions to shareholders.
Other reserves
Other reserves arose on the change in presentational currency in 2019.
Retained earnings includes all current and prior periods' profits and losses, and distributions to shareholders.
Other reserves
Other reserves arose on the change in presentational currency in 2019.
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EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
There were no capital commitments at 31 December 2025 or 31 December 2024.
The Company is exposed to market price risk, interest rate risk, credit risk, liquidity risk, currency risk, compliance risk and capital risk management arising from the financial instruments it holds. The risk management policies employed by the Company to manage these risks are discussed below, and detailed in its Risk Management Framework:
1. Market price risk
Market price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices. The Company's financial assets at fair value through profit or loss are susceptible to market price risk arising from uncertainties about future prices of the investments. The Company's market price risk is managed through diversification of the investment portfolio.
Sensitivity analysis
An increase in financial instruments prices by 5% at 31 December 2025 would have increased equity and profit or loss by US$11.4 thousand (31 December 2024: US$89.6 thousand). For a decrease of 5% there would be an equal and opposite impact on the profit and other equity.
2. Interest rate risk
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Company's income and operating cash flows are substantially independent of changes in market interest rates. Other than cash at bank which attract interest at normal commercial rates, the Company has no other significant interest-bearing financial assets or liabilities. Interest bearing assets issued at variable rates expose the Company to cash flow interest rate risk. Interest bearing assets issued at fixed rates expose the Company to fair value interest rate risk. The Company's Management monitors the interest rate fluctuations on a continuous basis and acts accordingly.
1. Market price risk
Market price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices. The Company's financial assets at fair value through profit or loss are susceptible to market price risk arising from uncertainties about future prices of the investments. The Company's market price risk is managed through diversification of the investment portfolio.
Sensitivity analysis
An increase in financial instruments prices by 5% at 31 December 2025 would have increased equity and profit or loss by US$11.4 thousand (31 December 2024: US$89.6 thousand). For a decrease of 5% there would be an equal and opposite impact on the profit and other equity.
2. Interest rate risk
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Company's income and operating cash flows are substantially independent of changes in market interest rates. Other than cash at bank which attract interest at normal commercial rates, the Company has no other significant interest-bearing financial assets or liabilities. Interest bearing assets issued at variable rates expose the Company to cash flow interest rate risk. Interest bearing assets issued at fixed rates expose the Company to fair value interest rate risk. The Company's Management monitors the interest rate fluctuations on a continuous basis and acts accordingly.
Page 27
EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
3. Credit risk
Credit risk arises from cash and cash equivalents, contractual cash flows of investments carried at fair value through other comprehensive income (FVOCI) and at fair value through profit or loss (FVTPL) and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables.
(i) Impairment of financial assets
The Company has the following types of financial assets that are subject to the expected credit loss model:
• trade receivables
• financial assets at FVTPL
• cash and cash equivalents
Trade Receivables
The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables (including those with a significant financing component).
To measure the expected credit losses, trade receivables would have been grouped based on shared credit risk characteristics and the days past due. The Company defines default as a situation when the debtor is more than 90 days past due on its contractual payments.
The expected loss rates are based on the payment profiles of sales over a period of 36 months before 31 December 2025 or 1 January 2025 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company, and a failure to make contractual payments for a period of greater than 180 days past due.
Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.
The Company did not have significant trade receivables and has therefore not performed an expected credit loss assessment for the year. The balance receivable from related entity was also not assessed for expected credit loss since it is under common control with the Company.
Financial assets at fair value through profit or loss
The Company is also exposed to credit risk in relation to debt investments that are measured at fair value through profit or loss. The maximum exposure at the end of the reporting period is the carrying amount of these investments. The Company assesses credit risk on Financial assets at fair value through profit or loss by taking into account, ratings from external credit rating institutions, and internal ratings if external are not available.
Cash and cash equivalents
The Company assesses, on a group basis, its exposure to credit risk arising from cash at bank. The Company assesses credit risk on cash and cash equivalents by taking into account, ratings from external credit rating institutions and internal ratings, if external are not available.
Page 28
EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
4. Liquidity risk
Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability but can also increase the risk of losses. The Company has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.
The following tables detail the Company's remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows.
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5. Currency risk
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Company's measurement currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Swiss Franc, the Great British Pound and the Euro. The Company's Management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Company's measurement currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Swiss Franc, the Great British Pound and the Euro. The Company's Management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.
Page 29
EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
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Sensitivity analysis
A 10% strengthening of the United States Dollars against the following currencies at 31 December 2025 would have increased/(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. For a 10% weakening of the United States Dollars against the relevant currency, there would be an equal and opposite impact on the profit and other equity.
A 10% strengthening of the United States Dollars against the following currencies at 31 December 2025 would have increased/(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. For a 10% weakening of the United States Dollars against the relevant currency, there would be an equal and opposite impact on the profit and other equity.
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6. Compliance risk
Compliance risk is the risk of financial loss, including fines and other penalties, which arises from non compliance with laws and regulations of the state. The risk is limited to a significant extent due to the supervision applied by the Compliance Officer, as well as by the monitoring controls applied by the Company.
Compliance risk is the risk of financial loss, including fines and other penalties, which arises from non compliance with laws and regulations of the state. The risk is limited to a significant extent due to the supervision applied by the Compliance Officer, as well as by the monitoring controls applied by the Company.
Page 30
EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
7. Capital risk management
The Company has a regulatory obligation to monitor and implement policies and procedures for capital risk management. Specifically, the Company is required to test its capital against regulatory requirements and has to maintain a minimum level of capital. This ultimately ensures the going concern of the Company.
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The Company's overall strategy remains unchanged from last year.
Extensive disclosures as required by the MIFIDPRU 8 of the Financial Conduct Authority (FCA) are published on the Company's website.
Fair value estimation
The fair values of the Company's financial assets and liabilities approximate their carrying amounts at the reporting date.
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Company is the current bid price. The appropriate quoted market price for financial liabilities is the current ask price.
Fair value measurements recognised in statement of financial position
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
∙Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities.
∙Level 2 inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
∙Level 3 inputs for the asset or liability that are not based on observable market data (unobservable inputs).
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Page 31
EMKAP UK LTD
Notes to the financial statements
For the year ended 31 December 2025
An analysis of changes in net debt has not been presented as all of the Company’s cash flows relate to movements
in cash, and the Company has no items to include in such an analysis.
in cash, and the Company has no items to include in such an analysis.
As at 31 December 2025, the Company owed $nil (2024: $nil) to
Key management personnel are the same as the directors.
The ultimate controlling party is Persella Ioannides , by virtue of her 100% shareholding.
Page 32