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REGISTERED NUMBER: 06855467 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

FOR

YEALINK (UK) LIMITED

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31st December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income statement 9

Statement of Financial Position 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


YEALINK (UK) LIMITED

COMPANY INFORMATION
for the Year Ended 31st December 2023







DIRECTORS: Mr S B Fenby
Mr S Lamb





SECRETARY: Mr A K Garnham





REGISTERED OFFICE: Midwich Limited
Vinces Road
Diss
United Kingdom
IP22 4YT





REGISTERED NUMBER: 06855467 (England and Wales)





AUDITORS: Xeinadin Audit Limited
100 Barbirolli Square
Manchester
M2 3BD

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

STRATEGIC REPORT
for the Year Ended 31st December 2023


The directors present their strategic report of the Company for the year ended 31st December 2023.

Prior to operations being discontinued, the principal activity of Yealink (UK) Limited (the "Company") was the supply and distribution of unified communications equipment to trade customers. Whilst trading, the company differentiated itself through its technical expertise and the provision of high levels of service and support to our customers and vendor partners.

REVIEW OF BUSINESS
On 1st July 2023, the remainder of the Company's trade and assets were hived up into Nimans Limited, a fellow subsidiary within the UK group of Midwich Group Plc. For the period that trading occurred prior to the transfer, the Company achieved a credible set of financial results.

Financial Key Performance Indicators
2023 2022
£'m £'m
Turnover 6.7 12.0
Gross Profit 0.5 1.0

PRINCIPAL RISKS AND UNCERTAINTIES
As the Company trade and assets have been hived up to Nimans Limited from 1 July 2023, it will no longer represent a going concern and as a result, all risks and uncertainties have transferred with the business.

Employee involvement and policies
From the perspective of the Board, as a result of the Group governance, the Group Board has taken the lead in carrying out the duties of a Board in respect of the Company's employees, including engaging with them, having regard to their interests and the effect of that regard (including on the principal decisions taken by the company during the financial year). The Board of the Company has also considered relevant matters where appropriate. An explanation of how the Group Board has carried out these responsibilities (for the Group and for the Company) is set out in the Group's annual report, which does not form part of this report.

We recognise the importance of our staff to the success of the business since our product sales rely on the excellent service provided by our team. We aim to attract, motivate and retain the best people in our industry, regardless of race, age or disability. The Company provides its employees with information and consults with staff on matters of concern to them.

The Company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the Company's policy whenever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

The Board would like to thank our staff for the support, commitment and enthusiasm shown last year.

Other stakeholders
Similarly, from the perspective of the Board, as a result of the Group governance structure, the Group Board has taken the lead in carrying out the duties of a Board in respect of the Company's other stakeholders. The Board of the Company has also considered relevant matters where appropriate. An explanation of how the directors on the Group Board have had regard to the need to foster the Company's business relationships with suppliers, customers and others, and the effect of that regard, including on the principal decisions taken by the Company during the financial year, is set out (for the Group and for the Company) in the Group's annual report, which does not form part of this report.

ON BEHALF OF THE BOARD:





Mr S B Fenby - Director


21st August 2024

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

REPORT OF THE DIRECTORS
for the Year Ended 31st December 2023


The directors present their report and the financial statements of the Company for the year ended 31 December 2023. Some disclosures that would normally be included in the directors' report are included in the strategic report. These include the review of the principal risks and uncertainties facing the business and an indication of likely future developments for the Company.

DIVIDENDS
During the year, the Company declared no dividends (2022: £nil).

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

Mr S B Fenby
Mr S Lamb

GOING CONCERN
In July 2023 the board opted to hive the trade and assets of the company to a fellow subsidiary in the UK group. As a result of this the company ceased to trade from July 2023.

Key performance indicators
The company's key performance indicators are described in the Strategic Report.

Directors' and officers' liability insurance
The Company maintains insurance cover for the directors and key personnel against liabilities which may be incurred by them while carrying out their duties.

DISCLOSURE IN THE STRATEGIC REPORT
The Group has chosen, in accordance with Section 414 C(ii) of the Companies Act 2006, and as noted in this Directors' Report, to include certain matters in its Strategic Report that would otherwise be required to disclose in this Directors' Report, specifically in respect of the review of the business, disabled employees, research and development, future developments and key risks in the business.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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 and then apply them consistently;
-make judgements 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

REPORT OF THE DIRECTORS
for the Year Ended 31st December 2023


AUDITORS
The auditor, Xeinadin Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





Mr S B Fenby - Director


21st August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
YEALINK (UK) LIMITED


Opinion
We have audited the financial statements of Yealink (UK) Limited (the 'company') for the year ended 31st December 2023 which comprise the Income statement, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, 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 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to departure from the going concern basis of accounting
In forming our opinion on the financial statements, which is not modified, we have considered the presentation of the financial statements on a break-up basis, the adjustments arising from this presentation, and the adequacy of the disclosures made in the notes to the financial statements. The break-up basis of accounting has been adopted by the Directors in preparing the financial statements due to the trade of the business being hived up to Nimans Limited on 1st July 2023. No date for liquidation has been set. It is therefore appropriate to prepare these financial statements on the break-up basis of accounting.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
YEALINK (UK) LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
YEALINK (UK) LIMITED


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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:

- The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets;
- Results of the enquiries of management about their own identification and assessment of the risks of irregularities;
- Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income and going concern. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the 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 UK Companies Act, environmental laws, employment law, health and safety, pensions legislation 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 company's ability to operate or to avoid a material penalty.

Audit response to risks identified
Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
YEALINK (UK) LIMITED

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 Report of the Auditors.

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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 a Report of the Auditors 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.




Richard Lloyd (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
100 Barbirolli Square
Manchester
M2 3BD

21st August 2024

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

INCOME STATEMENT
for the Year Ended 31st December 2023

2023 2023 2023
Continuing Discontinued Total
Notes £    £    £   

REVENUE 4 - 6,697,908 6,697,908
Cost of sales - (6,180,784 ) (6,180,784 )
GROSS PROFIT - 517,124 517,124

Administrative expenses - (26,423 ) (26,423 )

OPERATING PROFIT and
PROFIT BEFORE TAXATION 6 - 490,701 490,701
Tax on profit 7 - (151,250 ) (151,250 )
PROFIT FOR THE FINANCIAL YEAR - 339,451 339,451


OTHER COMPREHENSIVE INCOME -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

339,451

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

INCOME STATEMENT
for the Year Ended 31st December 2023

2022 2022 2022
Continuing Discontinued Total
Notes £    £    £   

REVENUE 4 12,022,052 - 12,022,052
Cost of sales (11,002,538 ) - (11,002,538 )
GROSS PROFIT 1,019,514 - 1,019,514

Administrative expenses (656,935 ) - (656,935 )

OPERATING PROFIT and
PROFIT BEFORE TAXATION 6 362,579 - 362,579
Tax on profit 7 (21,132 ) - (21,132 )
PROFIT FOR THE FINANCIAL YEAR 341,447 - 341,447


OTHER COMPREHENSIVE INCOME -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

341,447

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

STATEMENT OF FINANCIAL POSITION
31st December 2023

2023 2022
Notes £    £   
ASSETS

CURRENT ASSETS
Inventories 8 - 1,879,926
Trade and other receivables 9 1,637,371 2,043,493
Cash at bank - 2,701
1,637,371 3,926,120
1,637,371 3,926,120

CAPITAL, RESERVES AND LIABILITIES

CAPITAL AND RESERVES
Share capital 10 1,000 1,000
Retained earnings 11 1,602,586 1,263,135
SHAREHOLDERS' FUNDS 1,603,586 1,264,135

LIABILITIES 12 33,785 2,661,985
1,637,371 3,926,120

The financial statements were approved by the Board of Directors and authorised for issue on 21st August 2024 and were signed on its behalf by:





Mr S B Fenby - Director


YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31st December 2023

Share Retained Total
capital earnings equity
£    £    £   
Balance at 1st January 2022 1,000 921,688 922,688
Profit for the year - 341,447 341,447
Total comprehensive income - 341,447 341,447
Balance at 31st December 2022 1,000 1,263,135 1,264,135
Profit for the year - 339,451 339,451
Total comprehensive income - 339,451 339,451
Balance at 31st December 2023 1,000 1,602,586 1,603,586

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31st December 2023


1. STATUTORY INFORMATION

Yealink (UK) Limited is a private company limited by share capital, incorporated in England and Wales, registration number 06855467. The address of the registered office is Midwich Limited, Vinces Road, Diss, IP22 4YT. The address of the principle place of business is Agecroft Road, Pendlebury, Swinton, Manchester, M27 8SB.

2. ACCOUNTING POLICIES

Basis of preparation
The Company maintains its books and records in sterling ("£") and presents its annual financial statements in conformity with United Kingdom laws and regulations.

These annual financial statements have been prepared in accordance with Financial Reporting Standard FRS 101 and in accordance with applicable accounting standards, as adopted by the European Union and the Companies Act 2006.

The company transferred its trade, assets and liabilities to Nimans Limited on 1st July 2023 and ceased trading at that date. The directors therefore do not consider it to be appropriate to adopt the going concern basis of accounting and have prepared the financial statements on the basis that the company is no longer a going concern.

However, given that the trade is being carried on by Nimans Limited, and having regard to the nature of the entity's assets and liabilities, no adjustments to, or reclassifications of, the amounts included in these financial statements as a result of the financial statements being prepared on a break up basis.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to
136 of IAS 1;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 88C and 88D of IAS 12 Income Taxes;
the requirements of paragraph 74(b) of IAS 16;
the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into
between two or more members of a group;
the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets.

Revenue
Revenue arises from the sale of goods.

Revenue from the sale of goods is recognised on despatch when control of the products is transferred to the customer. All performance obligations are met on despatch when the customer obtains control to direct the goods in the channel and incurs the risk of obsolescence.

Finance costs
Interest expense is recognised using the effective interest method which calculates the amortised cost of a financial asset or liability and allocates the interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial asset or liability to the net carrying amount of the financial asset or liability. Other finance costs include the changes in fair value of derivatives and other financial instruments measured at fair value through profit or loss.

Inventory
Inventory is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Cost comprises purchase price and directly attributable costs incurred in bringing products to their present location and condition.

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31st December 2023


2. ACCOUNTING POLICIES - continued

Current taxation
Current tax payable or recoverable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because some items of income or expense are taxable or deductible in different years or may never be taxable or deductible. The Company's liability for current tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the end of the reporting period date.

Deferred taxation
Deferred taxation is calculated using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, if the deferred tax arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for. No deferred tax is recognised on initial recognition of goodwill or on investment in subsidiaries. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred tax asset is realised, or the deferred tax liability is settled. Deferred tax liabilities are provided in full and are not discounted. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Foreign currency
The presentation and functional currency for the Company is Sterling. Foreign currency transactions made by the Company are recorded in the functional currency at the exchange rate at the date of the transaction. Monetary assets and liabilities have been translated at rates in effect at the reporting date, with any exchange adjustments being charged or credited to the income statement, within administrative expenses.

Employee benefit costs
Provision is made in the financial statements for all employee benefits. Liabilities for wages and salaries, including non­ monetary benefits and annual leave obliged to be settled within 12 months of the reporting date, are recognised in accruals. Contributions to defined contribution pension plans are charged to the income statement in the period to which the contributions relate.

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31st December 2023


2. ACCOUNTING POLICIES - continued

Trade and other receivables
Trade and other receivables are financial assets recognised when the Company becomes party to the contractual provisions of the instrument. Included within trade and other receivables are vendor rebates.

Trade and other receivables are initially measured at transaction price plus directly attributable transaction costs. Transaction price is equivalent to fair value for trade and other receivables that do not contain a significant financing component. Where trade and other receivables do contain a significant financing component the fair value is equivalent to the transaction price adjusted for the effects of discounting. The effects of discounting are not adjusted if it is expected at the inception of the contract that there will be a period of one year or less from when the goods or services are transferred to the customer to the payment date.

Trade and other receivables are subsequently measured at amortised cost using the effective interest method less expected credit losses. Expected credit losses are calculated based on probability weighted amounts derived from a range of possible outcomes that are based on reasonable supporting information and discounted for the time value of money. The Company applies the simplified approach to measure the loss allowance at an amount equal to lifetime expected credit losses including where trade receivables contain a significant financing component. The effects of expected credit losses are omitted if immaterial.

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less from inception.

Trade and other payables
Trade and other payables are financial liabilities recognised when the Company becomes party to the contractual provisions of the instrument. Trade and other payables are initially measured at fair value minus transaction costs directly attributable to the issue of the financial liability. Trade and other payables are subsequently measured at amortised cost using the effective interest method.

Equity
Equity comprises the following:
- "Share capital" represents the nominal value of equity shares issued.
- "Retained earnings" represents the accumulated profits and losses attributable to equity shareholders.

Discontinued operations
On 1st July 2023 the company hived-up it's business to a fellow subsidiary in the group.

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31st December 2023


3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of financial statements in accordance with the principles of FRS 101 requires the directors to make judgements and use estimation techniques in order to provide a fair presentation of the Company's financial position and performance. Accounting judgements represent the accounting decisions made by the directors that have the most significant effect on amounts recognised in the financial statements. Sources of estimation uncertainty represent the assumptions made by management that carry significant risks of a material adjustment to the value of assets and liabilities within the next financial year. Judgements and estimates are evaluated based on historic experience, on­ going developments within the Company, and reasonable expectations of future events. Judgements and estimates are subject to regular review by the directors.

The following are the significant sources of estimation uncertainty facing the Company in preparing the financial statements:

Inventory write down
Inventory is written down to the lower of cost and net realisable value. To determine inventory write downs the Company is required to estimate the future sales volumes, sales prices, costs to sell inventory, and shrinkage.

The Company uses a range of different techniques to write down inventory to the lower of cost and net realisable value including a formulaic methodology based on the age of inventory. The aged inventory methodology writes down inventory by a specific percentage based on time elapsed from purchase date and these specific percentages are based on historic data.

A specific inventory provision of £Nil (2022: £45,966) is provided in order to value the stock in line with the accounting policy.

4. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

2023 2022
£    £   
Sale of goods 6,697,908 12,022,052
6,697,908 12,022,052

An analysis of revenue by geographical market is given below:

2023 2022
£    £   
United Kingdom 6,697,908 12,022,052
6,697,908 12,022,052

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 9,956 386,785

The average number of employees during the year was as follows:
2023 2022

Sales 1 7

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31st December 2023


5. EMPLOYEES AND DIRECTORS - continued

2023 2022
£    £   
Directors' remuneration - -

6. PROFIT BEFORE TAXATION

The profit before taxation is stated after charging:
2023 2022
£    £   
Auditors' remuneration 4,167 5,000

7. TAXATION

Analysis of tax expense
2023 2022
£    £   
Current tax:
Tax 151,250 21,132
Total tax expense in income statement 151,250 21,132

Factors affecting the tax expense
The tax assessed for the year is higher (2022 - lower) than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before income tax 490,701 362,579
Profit multiplied by the standard rate of corporation tax in the UK of
23.521% (2022 - 19%)

115,418

68,890

Effects of:
current year
Prior year adjustment 23,526 (47,758 )
Expense non deductible 12,599 -
Deferred tax (293 ) -
Tax expense 151,250 21,132

8. INVENTORIES
2023 2022
£    £   
Finished goods for resale - 1,879,926

9. TRADE AND OTHER RECEIVABLES
2023 2022
£    £   
Trade receivables - 1,866,873
Amounts owed by group undertakings 1,637,371 -
Other receivables - 176,620
1,637,371 2,043,493

YEALINK (UK) LIMITED (REGISTERED NUMBER: 06855467)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31st December 2023


10. SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,000 Ordinary £1.00 1,000 1,000

11. EQUITY
Retained
earnings
£   

At 1st January 2023 1,263,135
Profit for the year 339,451
At 31st December 2023 1,602,586

12. TRADE AND OTHER PAYABLES
2023 2022
£    £   
Trade payables - 1,203
Amounts owed to group undertakings - 2,615,566
Tax 11,285 20,654
VAT 22,500 1,869
Accrued expenses - 22,693
33,785 2,661,985

13. SECURED DEBTS

The Company is party to a composite agreement with its bankers. There is a fixed and floating charge registered in favour of HSBC Corporate Trustee Company (UK) Limited dated 3 January 2023, covering all the property of the undertaking of the Company.

The Company is party to a security accession deed with its bankers. There is a fixed and floating charge registered in favour of HSBC Corporate Trustee Company (UK) Limited dated 14 December 2022, covering all the property of the undertaking of the Company.

14. ULTIMATE PARENT COMPANY

Midwich Group plc is the ultimate parent company. Midwich Group plc is incorporated in England and Wales and its registered office is Vinces Road, Diss, Norfolk, IP22 4YT.

Midwich Group plc, is the parent undertaking of the largest group which prepares publicly available consolidated financial statements for the year ended 31 December 2023. Copies of the consolidated financial statements may be obtained from Companies House.

15. TRADE HIVE UP

On 1 July 2023 the company hived up all its trading activity and assets to a fellow subsidiary in the UK group of Midwich Group plc.