Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31No description of principal activitytruefalsetrue11true2023-01-0111truefalse 05061338 2023-01-01 2023-12-31 05061338 2022-01-01 2022-12-31 05061338 2023-12-31 05061338 2022-12-31 05061338 2022-01-01 05061338 c:Director1 2023-01-01 2023-12-31 05061338 c:Director2 2023-01-01 2023-12-31 05061338 c:Director3 2023-01-01 2023-12-31 05061338 c:RegisteredOffice 2023-01-01 2023-12-31 05061338 d:FurnitureFittings 2023-01-01 2023-12-31 05061338 d:FurnitureFittings 2023-12-31 05061338 d:FurnitureFittings 2022-12-31 05061338 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05061338 d:ComputerEquipment 2023-01-01 2023-12-31 05061338 d:ComputerEquipment 2023-12-31 05061338 d:ComputerEquipment 2022-12-31 05061338 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05061338 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05061338 d:CurrentFinancialInstruments 2023-12-31 05061338 d:CurrentFinancialInstruments 2022-12-31 05061338 d:Non-currentFinancialInstruments 2023-12-31 05061338 d:Non-currentFinancialInstruments 2022-12-31 05061338 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 05061338 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 05061338 d:ReportableOperatingSegment1 2023-01-01 2023-12-31 05061338 d:ReportableOperatingSegment1 2022-01-01 2022-12-31 05061338 e:UnitedKingdom 2023-01-01 2023-12-31 05061338 e:UnitedKingdom 2022-01-01 2022-12-31 05061338 e:RestWorldOutsideUK 2023-01-01 2023-12-31 05061338 e:RestWorldOutsideUK 2022-01-01 2022-12-31 05061338 d:ShareCapital 2023-12-31 05061338 d:ShareCapital 2022-12-31 05061338 d:ShareCapital 2022-01-01 05061338 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 05061338 d:RetainedEarningsAccumulatedLosses 2023-12-31 05061338 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 05061338 d:RetainedEarningsAccumulatedLosses 2022-12-31 05061338 d:RetainedEarningsAccumulatedLosses 2022-01-01 05061338 c:OrdinaryShareClass1 2023-01-01 2023-12-31 05061338 c:OrdinaryShareClass1 2023-12-31 05061338 c:OrdinaryShareClass1 2022-12-31 05061338 c:FRS102 2023-01-01 2023-12-31 05061338 c:Audited 2023-01-01 2023-12-31 05061338 c:FullAccounts 2023-01-01 2023-12-31 05061338 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 05061338 d:WithinOneYear 2023-12-31 05061338 d:WithinOneYear 2022-12-31 05061338 d:BetweenOneFiveYears 2023-12-31 05061338 d:BetweenOneFiveYears 2022-12-31 05061338 d:MoreThanFiveYears 2023-12-31 05061338 d:MoreThanFiveYears 2022-12-31 05061338 d:TaxLossesCarry-forwardsDeferredTax 2023-12-31 05061338 f:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 05061338










ZYXEL COMMUNICATIONS UK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
COMPANY INFORMATION


Directors
Shun I Chu 
Karsten Gewecke 
Gordon Gorzone Yang 




Registered number
05061338



Registered office
2nd Floor
2 Old Row Court

Rose Street

Wokingham

RG40 1XZ




Trading Address
2nd Floor
2 Old Row Court

Rose Street

Wokingham

RG40 1XZ






Independent auditors
Sumer Auditco Limited
Chartered Accountants & Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
ZYXEL COMMUNICATIONS UK LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 24


 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their report and the financial statements for the year ended 31 December 2023.

Business review
 
The principal activity of the Company during the reporting period continued to be that of the import and sale of communications equipment. 
The trading activities of the Company focus on selling Zyxel branded IT network products in the UK and Ireland, which form part of the operation of a larger group in the worldwide market.
The majority of customers of the Company are Service Providers in the telecommunication sector. The Company enters into contracts with these Service Providers to supply mainly customised products during the contract term. 
The turnover for the current year increased as a result of new business customers successfully secured during the year through implementation of a competitive pricing strategy. The performance for the year is in line with our expectation with similar trading patterns expected during the next year, 2024.
In the prior year we implemented a new credit control procedures for new customers. This has significantly improved the trade debtor days and hence our operating cash flow. 

Principal risks and uncertainties
 
The Company is a trading company that sells products of the parent company to a number of business customers. On this background, the directors consider that the level of Company’s exposure to various risks as following:
Foreign currency risk
The main currencies which may impact the Company's operations are the Euro, the Pound Sterling and the US Dollar. In order to minimize foreign currency risk, the Company purchases products in same currency which the Company invoices its customers. 
Credit risk
The Company trades only with recognised, credit worthy third parties. Customers who wish to trade on credit terms are generally subject to credit verification procedures. In addition, receivables balances are monitored on an ongoing basis with the result that the company's exposure to bad debts has not been significant. Provision is made for doubtful debts where necessary. 
Liquidity risk
The directors of the Company monitor closely the liquidity risk of the Company. The Company manages the liquidity risk by: 

ensuring a timely recovery of trade debtors from a stable and growing customer portfolio; 
a steady supply of goods from the parent company; 
continuously monitoring budget and actual cash flow.

Page 1

 
ZYXEL COMMUNICATIONS UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators

2023
2022
Variance



 
 
Turnover

£21,702,876

£15,801,507

37%
 
 
Gross margin

5%

6%

-1%
 
 
Net profit

£135,563

£130,333

4%
 
 
Trade debtor days

77

106

-29
 
 


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



Karsten Gewecke
Director

Date: 16 August 2024

Page 2

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


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

make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The profit for the year, after taxation, amounted to £135,563 (2022 - £130,333).

The company made no dividend payment during the year (2022: £Nil). 

Directors

The directors who served during the year were:

Shun I Chu 
Karsten Gewecke 
Gordon Gorzone Yang 

Matters covered in the Strategic report

The directors have chosen to disclose information on the development and performance of the business, the principal risks and uncertainty and an analysis of key performance indicators required by the Companies Act 2006 to be included in the Directors' Report, within the Strategic Report, found on pages 1 - 2. 

Page 3

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director 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's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Simmons Gainsford LLP, the previous auditors have transferred their audit business to Sumer Auditco Limitedwho will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





Karsten Gewecke
Director

Date: 16 August 2024

Page 4

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ZYXEL COMMUNICATIONS UK LIMITED
 

Opinion


We have audited the financial statements of Zyxel Communications UK Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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.


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ZYXEL COMMUNICATIONS UK LIMITED (CONTINUED)


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 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.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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 directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ZYXEL COMMUNICATIONS UK 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 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:

In order to identify and assess 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 have considered:

the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
the nature of the company including its management structure and control systems (including the opportunity for management to override such controls);
management’s incentives and opportunities for fraudulent manipulation of the financial statements including the group’s remuneration and bonus policies and performance targets; and
the industry and environment in which it operates.

We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.
 
Based on this understanding we identified the following matters as being of significance to the entity:
 
laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and distributable profits legislation;
the timing of the recognition of commercial income;
management bias in selecting accounting policies and determining estimates;
inappropriate journal entries;
manipulation of specific performance measures to meet remuneration targets; and
recoverability of debtors.
 
We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.
 
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;
discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud;
inspection of relevant legal correspondence;
assessment of matters reported to management and the result of the subsequent investigation;
Page 7

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ZYXEL COMMUNICATIONS UK LIMITED (CONTINUED)


obtaining an understanding of the relevant controls and testing their operation during the year;
obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year;
challenging assumptions made by management in their specific accounting policies and estimates, in particular in relation to depreciation of tangible fixed assets, marketing accruals & bonus provision and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue or cash;
assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions;
reviewing the financial statements for compliance with the relevant disclosure requirements;
reviewing correspondence with taxation authorities;
evaluating the underlying business reasons for any unusual transactions;
considered the implementation of controls during the year; and
performing analytical procedures to identify any unusual or unexpected relationships or 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).


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 directors, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's directors 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 directors, as a body, for our audit work, for this report, or for the opinions we have formed.





Shilen Manek ACA, FCCA (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Chartered Accountants
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

16 August 2024
Page 8

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
21,702,876
15,801,507

Cost of sales
  
(20,596,691)
(14,834,358)

Gross profit
  
1,106,185
967,149

Administrative expenses
  
(1,024,136)
(866,259)

Operating profit
 5 
82,049
100,890

Interest receivable and similar income
 8 
46,497
5,821

Interest payable and similar expenses
  
(70)
-

Profit before tax
  
128,476
106,711

Tax on profit
 9 
7,087
23,622

Profit for the financial year
  
135,563
130,333

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 
ZYXEL COMMUNICATIONS UK LIMITED
REGISTERED NUMBER: 05061338

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
26,910
49,057

  
26,910
49,057

Current assets
  

Debtors: amounts falling due after more than one year
 11 
-
25,287

Debtors: amounts falling due within one year
 11 
4,753,723
7,238,755

Cash at bank and in hand
 12 
2,598,540
652,040

  
7,352,263
7,916,082

Creditors: amounts falling due within one year
 13 
(5,724,420)
(6,445,949)

Net current assets
  
 
 
1,627,843
 
 
1,470,133

Total assets less current liabilities
  
1,654,753
1,519,190

  

Net assets
  
1,654,753
1,519,190


Capital and reserves
  

Called up share capital 
 15 
5,375,000
5,375,000

Profit and loss account
 16 
(3,720,247)
(3,855,810)

  
1,654,753
1,519,190


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



Karsten Gewecke
Director

Date: 16 August 2024

The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
ZYXEL COMMUNICATIONS UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
5,375,000
(3,855,810)
1,519,190


Comprehensive income for the year

Profit for the year
-
135,563
135,563


At 31 December 2023
5,375,000
(3,720,247)
1,654,753





STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
5,375,000
(3,986,143)
1,388,857


Comprehensive income for the year

Profit for the year
-
130,333
130,333


At 31 December 2022
5,375,000
(3,855,810)
1,519,190


The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

The Company is a private company limited by shares and is incorporated in England and Wales (05061338). The address of its registered office and principal trading office is 2nd Floor, 2 Old Row Court, Rose Street, Wokingham, RG40 1XZ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Unizyx Holding Corporation as at 31 December 2023 and these financial statements may be obtained from 16F, No.207, Sec.2 Dun-Hwa S. Rd., Taipei, Taiwan, R.O.C., or via the website www.unizyx.com.tw.

The immediate parent company is Zyxel Communications A/S, a company incorporated in Denmark, which is the parent undertaking of the smallest group to consolidate these financial statements. 
Unizyx Holding Corporation, a company incorporated in Taiwan and listed on the Taiwan Stock Exchange, is regarded as being the ultimate parent company, which is the parent undertaking of the largest group to consolidate these financial statements.

 
2.3

Going concern

The directors have prepared the accounts on a going concern basis. This basis is considered appropriate as the ultimate parent company has confirmed that it does not intend to change the structure of the groups transactions.

Page 12

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

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

Sale of goods

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

 
2.5

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:

Fixtures and fittings
-
4-5 years
Computer equipment
-
3 years

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.

 
2.6

Debtors

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

 
2.7

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.

Page 13

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Financial instruments

The Company 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 Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs 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 Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 
Page 14

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.8
Financial instruments (continued)


Financial liabilities

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

Basic financial liabilities, which include trade and other payables and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument 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.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables 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 Company 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 Company 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 Company's contractual obligations expire or are discharged or cancelled.

 
2.9

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 15

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

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

 
2.11

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.

 
2.12

Operating leases: the Company as lessee

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

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

 
2.13

Pensions

Defined contribution pension plan

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

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

Page 16

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Current and deferred taxation

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

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

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

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


3.


Judgments 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.
Key accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimate and assumption that has a significant risk of causing a material adjustment to the carrying amount liabilities within the next financial year is:
Marketing accruals and bonus provision
Provisions are made against discounts allowed to clients based on the level of purchase in the financial year and also the estimated year-end bonus to employees. These provisions require management's best estimate of the costs that will be incurred based on contractual requirements and the Company's overall performance.

Page 17

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

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


2023
2022
£
£

Sale of goods
21,702,876
15,801,507


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
21,673,178
15,775,596

Rest of the world
29,698
25,911

21,702,876
15,801,507



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
22,147
29,117

Exchange differences
62,139
3,300

Other operating lease rentals
16,909
17,474

Staff pension costs
33,739
23,282


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
17,400
19,033

Page 18

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
691,362
593,245

Social security costs
81,271
69,690

Cost of defined contribution scheme
33,739
23,282

806,372
686,217


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


        2023
        2022
            No.
            No.







Administration
1
1



Sales
5
5



Project management
5
5

11
11

The employment expenses in the accounts are after recharging the portion of employees' services provided to other subsidiaries within the group.  


8.


Interest receivable

2023
2022
£
£


Bank interest receivable
45,294
5,821

Other interest receivable
1,203
-

Page 19

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Taxation


2023
2022
£
£



Total current tax
-
-

Deferred tax


Deferred tax
(7,087)
(23,622)

Total deferred tax
(7,087)
(23,622)


Tax on loss on ordinary activities
(7,087)
(23,622)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
128,476
106,711


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
30,192
20,275

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
509
2

Capital allowances for year in excess of / (under) depreciation
4,763
(2,693)

Utilisation of tax losses
(40,794)
(27,734)

Changes to tax losses carried forward
(7,087)
(23,622)

Changes in provision leading to an increase in the tax charge
5,330
10,150

Total tax charge for the year
(7,087)
(23,622)


Factors that may affect future tax charges

The company has estimated tax losses of £3,397,025 (2022: £3,537,548) available to carry forward against future trading profits. 

Page 20

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Tangible fixed assets





Computer equipment
Fixtures, fittings and equipment
Total

£
£
£



Cost


At 1 January 2023
136,008
142,543
278,551


Disposals
(134,790)
-
(134,790)



At 31 December 2023

1,218
142,543
143,761



Depreciation


At 1 January 2023
136,008
93,486
229,494


Charge for the year on owned assets
-
22,147
22,147


Disposals
(134,790)
-
(134,790)



At 31 December 2023

1,218
115,633
116,851



Net book value



At 31 December 2023
-
26,910
26,910



At 31 December 2022
-
49,057
49,057


Page 21

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
-
25,287

-
25,287


2023
2022
£
£

Due within one year

Trade debtors
4,593,487
6,906,935

Amounts owed by group undertakings
25,499
243,867

Other debtors
25,287
-

Prepayments and accrued income
53,797
39,387

Deferred taxation
55,653
48,566

4,753,723
7,238,755



12.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
2,598,540
652,040



13.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
2,472
19,979

Amounts owed to group undertakings
5,086,672
5,665,041

Other taxation and social security
565,148
634,997

Other creditors
9,102
2,017

Accruals and deferred income
61,026
123,915

5,724,420
6,445,949


Page 22

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Deferred taxation



2023


£






At beginning of year
48,566


Charged to profit or loss
7,087



At end of year
55,653

The deferred tax asset is made up as follows:

2023
£


Tax losses carried forward
55,653

55,653

Tax losses carried forward are recognised as an asset to the extent that it could be allowable against the future profits to be earned in the coming year.


15.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



5,375,000 (2022 - 5,375,000) ordinary shares of £1.00 each
5,375,000
5,375,000



16.


Reserves

Profit and loss account

The profit & loss account comprises the balance of profits accumulated over the life of the Company.


17.


Contingent liabilities

The Company has given a guarantee in favour of HM Revenue & Customs under a VAT deferment scheme amounting to £250,000 (2022: £250,000).
There is a charge imposed by the bank of the Company in favour of the landlord over the rent deposit £25,287 (2022: £25,287).  

Page 23

 
ZYXEL COMMUNICATIONS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £33,739 (2022 - £23,282). Contributions totalling £23,657 (2022 - £10,196) were payable to the fund at the balance sheet date and are included in creditors.


19.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
82,752
82,752

Later than 1 year and not later than 5 years
393,072
413,760

Later than 5 years
-
62,064

475,824
558,576


20.


Related party transactions

The Company has taken advantage of the exemption available in accordance with FRS 102, paragraph 33.1.A 'Related party disclosures' from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.


21.


Controlling party

The immediate parent company is Zyxel Communications A/S, a company incorporated in Denmark, which is the parent undertaking of the smallest group to consolidate these financial statements. 
Unizyx Holding Corporation, a company incorporated in Taiwan and listed on the Taiwan Stock Exchange, is regarded as being the ultimate parent company, which is the parent undertaking of the largest group to consolidate these financial statements.


 
Page 24