ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 09350386

MO FREEDOM LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

MO FREEDOM LIMITED

COMPANY INFORMATION

Director	M Odabash


Registered number	09350386


Registered office	22 Bruton Street
	London
	W1J 6QE


Independent auditors	Sumer Auditco Limited
	Statutory Auditors
	14th Floor
	33 Cavendish Square
	London
	W1G 0PW

MO FREEDOM LIMITED

CONTENTS

	Page
Group strategic report	1 - 2
Director's report	3 - 4
Independent auditors' report	5 - 8
Consolidated statement of comprehensive income	9
Consolidated balance sheet	10
Company balance sheet	11
Consolidated statement of changes in equity	12
Company statement of changes in equity	13
Consolidated statement of cash flows	14
Notes to the financial statements	15 - 32

MO FREEDOM LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 AUGUST 2025

Introduction

The director presents her strategic report for the year ended 31 August 2025.

Business review

The principal activity of the Group continued to be that of the design, manufacture and distribution of women’s holiday wear. There have been no major changes in the group’s core activities in the year under review.

Sales were lower compared to 2024 due to the impact of inflation as well as Ukraine war and conflict in the Middle East and we expect that this will continue in 2026.

Principal risks and uncertainties

The principal risk facing the Group is its ability to continue designing and selling women's holiday wear which for customers remain attractive and affordable. The performance of economy in general will also remain a risk, particularly amid global economic uncertainty driven by political factors such as rising protectionism.

Liquidity Risk

The Group has a strong operating cash inflow and manages its cash requirements in order to maximise interest income and minimise interest expense, whilst ensuring the Group has sufficient liquid resources to meet the operating needs of the business.

Credit Risk

Trade debtors are reviewed on a regular basis and provisions are made for doubtful debts when necessary.

Foreign Exchange Risk

The Group operates across the world and is exposed to movements in foreign currencies affecting the financial result and the value of Group equity. Foreign exchange risk arises because the amount of local currency paid or received for transactions denominated in foreign currencies may vary due to changes in exchange rates (transaction exposures). Foreign exchange risks arise primarily on transactions that are denominated in USD and EUR. In managing its exposure regarding the fluctuation in foreign currency exchange rates, the Group maintains USD and Euro bank accounts to offset the receipts and payments as far as possible and to minimise the exchange impact.

Financial key performance indicators

The key financial performance indicators of the Group are turnover, gross profit and operating profit. A brief
analysis of these is shown below:

2025 2024 Variance

Turnover £12,067,967 £13,062,050 (8%)

Gross Profit £6,759,658 £7,633,270 (11%)

Operating profit £186,481 £911,549 (80%)

Page 1

MO FREEDOM LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

This report was approved by the board on 28 October 2026 and signed on its behalf.

................................................

M Odabash

Director

Page 2

MO FREEDOM LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 AUGUST 2025

The director presents her report and the financial statements for the year ended 31 August 2025.

Principal activities

The principal activity of the Company is that of a management company for Avalon Fashions Group. The principal activity of the Group continued to be that of designing, manufacturing and selling beachwear.

Director

The director who served during the year was:

M Odabash

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the director is required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

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

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

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £223,811 (2024 - £593,994).

Dividends of £186,502 (2024: £185,722) were paid during the year. The director does not propose a final dividend.

Matters covered in the Group strategic report

The following information has been included in the strategic report:
- A business review
- Principal risks and uncertainties
- Financial and other key performance indicators

Page 3

MO FREEDOM LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:

∙so far as is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙ has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 October 2026 and signed on its behalf.

................................................

M Odabash

Director

Page 4

MO FREEDOM LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM LIMITED

Opinion

We have audited the financial statements of MO Freedom Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity 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 United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 31 August 2025 and of the Group's profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Page 5

MO FREEDOM LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the Parent Company financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of director's remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Director's responsibilities statement set out on page 3, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.

Page 6

MO FREEDOM LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group financial statements.

Extent to which the audit was considered capable of detecting irregularities, inlcuding fraud

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.

Based on our understanding of the Group and industry, we identified and assessed the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements. We also enquired of management and those charged with governance about their own identification and assessment of the risks of irregularities. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

We obtained an understanding of the legal and regulatory frameworks that the Group and the parent company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK financial reporting standards and Tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s and parent company's ability to operate or to avoid a material penalty.

As a result of performing the above, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

Page 7

MO FREEDOM LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM LIMITED (CONTINUED)

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 Auditors' report.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.

Abdultaiyab Pisavadi BSc FCA (Senior statutory auditor)

for and on behalf of

Sumer Auditco Limited

Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW

28 October 2026

Page 8

MO FREEDOM LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 AUGUST 2025

	2025	2024
Note	£	£


Turnover	4	12,067,967	13,062,050
Cost of sales		(5,308,309)	(5,428,780)
Gross profit		6,759,658	7,633,270
Distribution costs		(2,184,411)	(2,465,263)
Administrative expenses		(4,410,051)	(4,282,722)
Other operating income	5	21,285	26,273
Operating profit	6	186,481	911,558
Interest receivable and similar income	10	59,477	51,916
Interest payable and similar expenses	11	(5,170)	(256)
Profit before taxation		240,788	963,218
Tax on profit	12	(107,147)	(261,706)
Profit for the financial year		133,641	701,512


Currency translation differences	(19,123)	(65,862)
Total comprehensive income for the year	114,518	635,650

Profit for the year attributable to:
Non-controlling interests	(90,170)	107,518
Owners of the parent Company	223,811	593,994
	133,641	701,512

Total comprehensive income for the year attributable to:
Non-controlling interest	(90,170)	107,518
Owners of the parent Company	204,688	528,132
	114,518	635,650

The notes on pages 15 to 32 form part of these financial statements.

Page 9

MO FREEDOM LIMITED

REGISTERED NUMBER: 09350386

CONSOLIDATED BALANCE SHEET

AS AT 31 AUGUST 2025

		2025		2024
Note		£		£

Fixed assets
Intangible assets	15		-		26,504
Tangible assets	16		70,724		75,490
			70,724		101,994
Current assets
Stocks	18	1,274,533		1,456,974
Debtors: amounts falling due after more than one year	19	57,958		57,958
Debtors: amounts falling due within one year	19	2,604,690		2,240,557
Cash at bank and in hand	20	5,833,988		5,865,488
		9,771,169		9,620,977
Creditors: amounts falling due within one year	21	(3,748,737)		(3,557,831)
Net current assets			6,022,432		6,063,146
Total assets less current liabilities			6,093,156		6,165,140
Net assets			6,093,156		6,165,140

Capital and reserves
Called up share capital	22	1	1
Profit and loss account	23	3,648,031	3,637,464
Equity attributable to owners of the Parent Company		3,648,032	3,637,465
Non-controlling interests		2,445,124	2,527,675
Shareholder's funds		6,093,156	6,165,140

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 October 2026.

................................................

M Odabash

Director

The notes on pages 15 to 32 form part of these financial statements.

Page 10

MO FREEDOM LIMITED

REGISTERED NUMBER: 09350386

COMPANY BALANCE SHEET

AS AT 31 AUGUST 2025

		2025		2024
Note		£		£

Fixed assets
Investments	17		1,193,174		1,193,174
			1,193,174		1,193,174
Current assets
Debtors: amounts falling due within one year	19	1,787		102,624
Cash at bank and in hand	20	140,771		91,697
		142,558		194,321
Creditors: amounts falling due within one year	21	(520,387)		(531,711)
Net current liabilities			(377,829)		(337,390)
Total assets less current liabilities			815,345		855,784
Net assets			815,345		855,784

Capital and reserves
Called up share capital	22	1	1
Profit and loss account carried forward		815,344	855,783
Shareholder's funds		815,345	855,784

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 October 2026.

................................................

M Odabash

Director

The notes on pages 15 to 32 form part of these financial statements.

Page 11

MO FREEDOM LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 AUGUST 2025

	Called up share capital	Profit and loss account	Equity attributable to owners of Parent Company	Non-controlling interests	Total equity
	£	£	£	£	£
At 1 September 2023	1	3,268,812	3,268,813	2,446,399	5,715,212

Profit for the year	-	593,994	593,994	107,518	701,512
Currency translation differences	-	(39,620)	(39,620)	(26,242)	(65,862)
Dividends: Equity capital	-	(185,722)	(185,722)	-	(185,722)

At 1 September 2024	1	3,637,464	3,637,465	2,527,675	6,165,140

Profit for the year	-	223,811	223,811	(90,170)	133,641
Currency translation differences	-	(26,742)	(26,742)	7,619	(19,123)
Dividends: Equity capital	-	(186,502)	(186,502)	-	(186,502)
At 31 August 2025	1	3,648,031	3,648,032	2,445,124	6,093,156

The notes on pages 15 to 32 form part of these financial statements.

Page 12

MO FREEDOM LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 AUGUST 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 September 2023	1	795,031	795,032

Profit for the year	-	246,474	246,474
Dividends: Equity capital	-	(185,722)	(185,722)

At 1 September 2024	1	855,783	855,784

Profit for the year	-	146,063	146,063
Dividends: Equity capital	-	(186,502)	(186,502)
At 31 August 2025	1	815,344	815,345

The notes on pages 15 to 32 form part of these financial statements.

Page 13

MO FREEDOM LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2025

			2025	2024
			£	£

Profit for the financial year	133,641	701,512
Adjustments for:
Amortisation of intangible assets	26,504	53,014
Depreciation of tangible assets	29,602	32,174
Interest paid	5,170	256
Interest received	(59,477)	(51,916)
Taxation charge	107,147	261,706
Decrease in stocks	182,441	364,696
(Increase)/decrease in debtors	(362,466)	178,714
Increase/(decrease) in creditors	300,962	(387,026)
Corporation tax (paid)	(218,870)	(292,433)
Foreign exchange	(18,973)	-
Net cash generated from operating activities	125,681	860,697

Cash flows from investing activities
Purchase of tangible fixed assets	(24,986)	(33,387)
Interest received	59,477	51,916
Net cash from investing activities	34,491	18,529
Cash flows from financing activities
Dividends paid	(186,502)	(185,722)
Interest paid	(5,170)	(256)
Net cash used in financing activities	(191,672)	(185,978)
Net (decrease)/increase in cash and cash equivalents	(31,500)	693,248
Cash and cash equivalents at beginning of year	5,865,488	5,238,102
Foreign exchange gains and losses	-	(65,862)
Cash and cash equivalents at the end of year	5,833,988	5,865,488

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	5,833,988	5,865,488
	5,833,988	5,865,488

The notes on pages 15 to 32 form part of these financial statements.

Page 14

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

1.	General information

The company is a private company limited by shares, and is incorporated in England and Wales. The address of its registered office is 22 Bruton Street, London W1J 6QE.

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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

Parent company disclosure exemptions

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available to qualifying entities:

• Only one reconciliation of the number of shares outstanding at the beginning and end of the period
  has been presented as the reconciliations for the group and the parent company would be identical;

• No cash flow statement or net debt reconciliation has been presented for the parent company;

• Disclosures in respect of the parent company’s financial instruments have not been presented as
  equivalent disclosures have been provided in respect of the group as a whole; and

• No disclosure has been given for the aggregate remuneration of the key management personnel of
  the parent company as their remuneration is included in the totals for the group as a whole.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 15

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.3

Going concern

The director has, at the time of approving the financial statements, a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for a period of at least 12 months from the state of approval of these financial statements. Thus, the going concern basis of accounting has been adopted in preparing the financial statements.

2.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of turnover can be measured reliably;

∙it is probable that the Group 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.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of turnover can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Page 16

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.5

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

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.

2.6

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.

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:

Short-term leasehold property	-	Straight line over 10 years
Plant and machinery	-	20%-33% straight line
Fixtures and fittings	-	20%-33% Straight line

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.

2.7

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 17

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.8

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.

2.9

Debtors

Debtors are initially measured at the transaction price and are measured subsequently carried at
amortised cost using the effective interest method, less any impairment. Debtors classified as due
within one year are not amortised.

2.10

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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.11

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due within the operating cycle fall into this category of financial instruments.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Page 18

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.11

Financial instruments (continued)

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

2.12

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 19

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.13

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP. Monetary amounts in these financial
statements are rounded to the nearest £.

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.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

2.14

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.

2.15

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.

2.16

Operating leases: the Group as lessee

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

Page 20

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.17

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

2.18

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.19

Taxation

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 and the Group operate and generate income.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The group makes estimates and assumptions concerning the future. Actual results may differ from these estimates. 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.

Stock provision

In line with other retailers stock is physically counted at each location at the year end. The provision for old stock is based on prior years’ experience of saleability and profitability of old stock. A provision of £2,350,035 (2024: £2,634,431) has been made for the current year stock, for prior year stock and for stock older than two years. These provisions are consistent with prior years.

Page 21

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

Beachwear wholesale	8,045,198	8,352,667
Beachwear retail	4,022,769	4,709,383
	12,067,967	13,062,050

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	4,387,002	5,034,539
Rest of the world	7,680,965	8,027,511
	12,067,967	13,062,050

5.	Other operating income
		2025	2024
		£	£

	Royalty receivable	21,285	26,273

	Exchange differences	(114,559)	93,625
	Other operating lease rentals	522,648	505,243

Page 22

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

	Audit of these financial statements	8,500	8,500
	Audit of financial statements of subsidiaires	35,000	29,500

8.	Employees
	Staff costs, including director's remuneration, were as follows:

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Wages and salaries	2,258,388	2,150,948	36,000	36,000
Social security costs	274,280	251,302	4,398	3,712
Cost of defined contribution scheme	40,658	43,011	-	-
	2,573,326	2,445,261	40,398	39,712

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

	2025	2024
	No.	No.

Directors	2	2
Production	29	29
Administration	25	28

	56	59

9.	Director's remuneration
		2025	2024
		£	£

	Director's emoluments	36,000	36,000

During the year retirement benefits were accruing to no directors (2024 -£nil) in respect of defined contribution pension schemes.

Page 23

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

10.	Interest receivable
		2025	2024
		£	£

Other interest receivable

59,477

51,916

11.	Interest payable and similar expenses
		2025	2024
		£	£

Other loan interest payable	5,016	-
Other interest payable	154	256
	5,170	256

Corporation tax
Current tax on profits for the year	87,137	225,012
Foreign tax on income for the year	20,010	36,694
Total current tax	107,147	261,706

Page 24

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

12.Taxation (continued)

Profit on ordinary activities before tax

240,788

963,218

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	60,197	240,805
Effects of:
Non-tax deductible amortisation of goodwill and impairment	12,317	13,254
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	58,220	1,394
Capital allowances for year in excess of depreciation	3,648	3,191
Other timing differences	(27,235)	(5,073)
Different tax rates on overseas earnings	-	8,135
Total tax charge for the year	107,147	261,706

13.	Dividends
		2025	2024
		£	£

Dividend paid on equity capital

186,502

185,722

14.	Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £146,063 (2024 - £246,474).

Page 25

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

15.	Intangible assets
	Group

		Goodwill
		£
	Cost
	At 1 September 2024	530,136
	At 31 August 2025	530,136
	Amortisation
	At 1 September 2024	503,632
	Charge for the year on owned assets	26,504
	At 31 August 2025	530,136
	Net book value
	At 31 August 2025	-
	At 31 August 2024	26,504

Page 26

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

16.	Tangible fixed assets
	Group

	Short-term leasehold property	Plant and machinery	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 September 2024	129,344	144,652	455,891	729,887
Additions	-	1,400	15,306	16,706
Exchange adjustments	-	-	(4,389)	(4,389)
At 31 August 2025	129,344	146,052	466,808	742,204
Depreciation
At 1 September 2024	108,073	139,910	406,414	654,397
Charge for the year on owned assets	6,216	3,839	19,548	29,603
Exchange adjustments	-	-	(12,520)	(12,520)
At 31 August 2025	114,289	143,749	413,442	671,480
Net book value
At 31 August 2025	15,055	2,303	53,366	70,724
At 31 August 2024	21,271	4,742	49,477	75,490

Page 27

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

17.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 September 2024	1,193,174
	At 31 August 2025	1,193,174

Direct subsidiary undertaking
The following was a direct subsidiary undertaking of the Company:
Name	Registered office	Principal activity	Class of shares	Holding

Avalon Fashions Limited

22 Bruton Street, London, United Kingdom, W1J 6QE

Design, manufacture and
distribution of beachwear

Ordinary

60.16%

Indirect subsidiary undertakings
The following were indirect subsidiary undertakings of the Company:
Name	Registered office	Principal activity	Class of shares	Holding

	Avalon Fashions II Limited	14th Floor, 33 Cavendish Square, London, United Kingdom, W1G 0PW	Retailer of designer swimwear and beachwear	Ordinary	60.16%
	Avalon Fashions LLC	19 Franklin Street, Tenafly, NJ 07670, USA	Commercial apparel designers	Ordinary	60.16%

Page 28

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

18.	Stocks
		Group	Group
		2025	2024
		£	£

Raw materials and consumables	497,643	526,860
Finished goods and goods for resale	776,890	930,114
	1,274,533	1,456,974

There is no material difference between the replacement cost of stocks and the amounts stated above. The provision reducing the carrying value of stocks to net realisable value above as at 31 August 2025 amounted to £2,350,035 (2024: £2,634,431).

19.	Debtors
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Due after more than one year
Other debtors	57,958	57,958	-	-

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£

Due within one year
Trade debtors	1,282,480	933,232	-	460
Other debtors	1,212,414	1,218,378	-	-
Prepayments and accrued income	109,796	88,947	1,787	102,164
	2,604,690	2,240,557	1,787	102,624

20.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

	Cash at bank and in hand	5,833,988	5,865,488	140,771	91,697

Page 29

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

21.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Trade creditors	1,633,314	1,115,017	-	432
Amounts owed to group undertakings	-	-	172,485	168,439
Corporation tax	99,161	209,217	101,978	106,981
Other taxation and social security	60,430	65,419	15,947	25,604
Other creditors	156,388	180,299	152,611	176,769
Accruals and deferred income	1,799,444	1,987,879	77,366	53,486
	3,748,737	3,557,831	520,387	531,711

22.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

1 Ordinary share of £1.00	1	1

23.

Reserves

Profit and loss account

The Company's reserves of £815,345 (2024: £855,783) are all distributable.

The Group's reserves of £3,621,217 (2024: £3,637,464) include a debit balance of £26,227 (2024: £22,340) relating to foreign exchange differences. The foreign exchange differences represents adjustments resulting from translation of subsidiary financial statements into the reporting currency.

24.	Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administrated fund. The pension cost charge represents contributions payable by the Group to the fund an amounted to £40,658 (2024: £43,011).

Contributions totalling £4,050 (2024: £6,407) were payable by the Group to the fund at the balance sheet date and are included in creditors.

Page 30

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

25.	Commitments under operating leases
	At 31 August 2025 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

		Group	Group
		2025	2024
		£	£

Not later than 1 year	452,909	450,674
Later than 1 year and not later than 5 years	719,079	1,092,370
Later than 5 years	58,500	139,284
	1,230,488	1,682,328

26.

Related party transactions

Company

At the year end, a balance of £152,611 (2024: £176,769) was owed to the director. No interest was charged on this balance.

At the year end, a balance of £172,485 (2024: £168,439) was owed to Avalon Fashions Limited, a subsidiary.

At the year end, a balance of £20,000 (2024: £Nil) was recognised in accruals in relation to a company under common control.

During the year interest of £4,046 (2024: £4,035) was charged by Avalon Fashions Limited, a subsidiary.

During the year, consultancy fees of £274,320 (2024: £379,777) were charged to subsidiaries.

During the year, consultancy fees of £20,000 (2024: £Nil) were charged to companies under common control.

The Company's sole director is considered to be key management personnel.

Group

At the year end, a balance of £151,097 (2024: £135,256) was owed from the director. No interest was charged on this balance.

At the year end, a balance of £20,000 (2024: £Nil) was recognised in accruals in relation to a company under common control.

During the year, consultancy fees of £20,000 (2024: £Nil) were charged to companies under common control.

Remuneration to key management personnel for the year was £415,902 (2024: £376,909).

Page 31

MO FREEDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

27.	Post balance sheet events

No events have occurred between 31 August 2025 and the date of approval of these financial statements that would require adjustment to or disclosure in the financial statements.

28.	Controlling party

The ultimate controlling party is the director and sole shareholder, Melissa Odabash.

Page 32