REGISTERED NUMBER: |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
for |
Soyang Europe Limited |
REGISTERED NUMBER: |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
for |
Soyang Europe Limited |
Soyang Europe Limited (Registered number: 05503397) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Soyang Europe Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
3 Sheen Road |
Richmond Upon Thames |
TW9 1AD |
Soyang Europe Limited (Registered number: 05503397) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investments | 5 |
CURRENT ASSETS |
Stocks | 6 |
Debtors | 7 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 8 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
9 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Revaluation reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered. |
The financial statements were approved by the director and authorised for issue on |
Soyang Europe Limited (Registered number: 05503397) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
The company is a private company limited by share capital, incorporated in England and Wales. |
The address of its registered office is: |
2 Heap Bridge |
Bury |
Lancashire |
BL9 7HR |
The principal place of business is: |
Calder House |
Metcalf Drive |
Altham Industrial Estate |
Accrington |
Lancashire |
BB5 5TU |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. |
REVENUE RECOGNITION |
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. |
The company recognises revenue when: |
The amount of revenue can be reliably measured; |
it is probable that future economic benefits will flow to the entity; |
and specific criteria have been met for each of the company's activities. |
TANGIBLE FIXED ASSETS |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Asset class | Depreciation method and rate |
Plant and equipment | 20% reducing balance basis |
Fixtures and fittings | 20% reducing balance basis |
Motor vehicles | 25% reducing balance basis |
The directors believe that the policy of not providing depreciation on freehold property is necessary in order for the financial statements to give a true and fair view. The directors confirm that buildings are maintained to high standards of condition and the value is not significantly impaired by the passage of time. Consequently, any element of depreciation is not considered to be material.The director has decided to revalue the freehold property for the financial year 2023 as there has been significant change in the fair value of the property. |
Soyang Europe Limited (Registered number: 05503397) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
STOCKS |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. |
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
FOREIGN CURRENCY TRANSACTIONS AND BALANCES |
Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account. |
LEASES |
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. |
DEFINED CONTRIBUTION PENSION OBLIGATION |
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. |
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. |
Soyang Europe Limited (Registered number: 05503397) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
CASH AND CASH EQUIVALENTS |
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
TRADE DEBTORS |
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. |
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. |
TRADE CREDITORS |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. |
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method |
BORROWINGS |
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. |
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
GOVERNMENT GRANTS |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model. |
INVESTMENT IN SUBSIDIARIES |
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognized in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. |
INVESTMENTS IN ASSOCIATES |
Interests in associates entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognized immediately in profit or loss |
Soyang Europe Limited (Registered number: 05503397) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
PROVISION FOR LIABILITIES |
Provisions are made where an event has taken place that gives the Company a legal or constructive |
obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the Statement of income and Other Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the Balance sheet. |
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting |
estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
Property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The freehold property was revalued by Taylor Weaver, Chartered Surveyors (RICS) on 12 November 2021 for £4,250,000. However, the directors are of opinion that the fair value of freehold property at 31 December 2023 was £4,000,000 after taking into consideration the current market conditions. |
Soyang Europe Limited (Registered number: 05503397) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 31 December 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
Property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2017 | 1,153,957 | - | - | - | 1,153,957 |
Valuation in 2022 | 988,210 | - | - | - | 988,210 |
Cost | 1,857,833 | 795,524 | 551,790 | 519,588 | 3,724,735 |
4,000,000 | 795,524 | 551,790 | 519,588 | 5,866,902 |
Soyang Europe Limited (Registered number: 05503397) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | FIXED ASSET INVESTMENTS |
Interest | Interest |
in | in |
associate | subsidiary |
£ | £ |
COST |
At 1 January 2023 | 40,162 | 1 |
Additions- | - | - |
Impairments | - | - |
At 31 December 2022 | 40,162 | 1 |
NET BOOK VALUE |
At 31 December 2023 | 40,162 | 1 |
At 31 December 2022 | 40,162 | 1 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Soyang Hardware Limited |
Registered office:- Unit 13, Meridian, Buckingway Business Park, Anderson Road, Swavesey, Cambridgeshire, England, CB24 4AE |
Nature of business:- Repair of computers and peripheral equipment |
% |
Class of shares | Holding |
Ordinary shares | 70% |
31.12.2023 | 31.12.2022 |
£ | £ |
Aggregate capital & reserves | (100,059 | ) | (32,810 | ) |
Profit/(Loss) for the year | (67,249 | ) | (132,785 | ) |
B Factory SPRL |
Registered office:- Place de la Fosse, Mont-Saint-Guibert, 1435, Belgium |
Nature of business:- Textile manufacturing |
% |
Class of shares | Holding |
Ordinary shares | 30% |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital & reserves | 131,508 | 133,871 |
Profit/(Loss) for the year | 44,198 | 44,794 |
Soyang Europe Limited (Registered number: 05503397) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | STOCKS |
2023 | 2022 |
£ | £ |
Trading stock |
Consignment stock |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
Included within trade debtors are balances totalling £1,518,336 (2022- £1,257,482) that are subject to factoring arrangements. The trade debtor balances have been transferred to the counterparty, though the transaction does not qualify for derecognition on the basis that the insert detail (eg. late payment) risk / reward is retained by the company. The associated liability recognised in creditors amounts to £1,177,076 (2022 - £ 985,857) |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts |
Trade creditors |
Consignment creditors | 162,497 | 166,344 |
Amounts owed to group undertakings |
Corporation tax |
Pension contributions unpaid | 4,469 | 1,352 |
Social security & other taxes | 36,369 | 66,788 |
Lloyds- Customer invoice |
discounting |
Other creditors | 39,993 | 76,926 |
Accrued expenses |
Creditors include bank loans which are secured by fixed and floating charge over the company premises at Altham of £117,069 (2022 - £154,044). |
Hire purchase creditors are secured on the assets they relate to. |
Creditors also includes confidential invoice discounting facility of £1,177,076 (2022 - £985,857) which is secured by fixed and floating charge over all company assets. |
Soyang Europe Limited (Registered number: 05503397) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans - 1-2 years |
Bank loans - 2-5 years |
Bank loans over 5 yrs |
by installments |
Hire purchase contracts |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans over 5 yrs |
by installments | 562,356 | 613,456 |
562,356 | 613,456 |
Creditors include bank loans which are secured by fixed and floating charge over the company premises at Altham of £881,504 (2022 - £999,716). |
10. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary share | £1 | 100 | 100 |
11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
12. | FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENCIES |
The total amount of financial commitments not included in the balance sheet is £147,880 (2022 - £197,328) |
Soyang Europe Limited (Registered number: 05503397) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
13. | RELATED PARTY DISCLOSURES |
Dividends paid to directors |
2023 | 2022 |
£ | £ |
Mr M P Mashiter |
Dividends paid | 171,930 | 165,430 |
Other related party transactions |
During the year the company made the following related party transactions: |
Soyang Technologies Co Limited |
(Shareholder) |
During the year the company purchased goods to the value of £2,705,609 (2022: £5,326,870) from Soyang Technologies Co Limited. At the balance sheet date, included in trade creditors, is the amount due to Soyang Technologies Co Limited of £1,812,763 (2022: £2,104,248). |
MP Mashiter |
(Director and Shareholder) |
During the year there were loans made to the immediate family of MP Mashiter. The balance due at the year end was £52,377 (2022: £44,503). |
B Factory SPRL |
(Associate) |
In June 2018 the company acquired 30% of the share capital of B Factory SPRL. During the year the company purchased goods to the value of £94,393 (2022: £34,178) from B Factory SPRL and sold goods to the value of £61,038 (2022: £35,942) to B Factory SPRL. At the balance sheet date, included in trade debtors, is the net amount due from B Factory SPRL of £16,025 (2022: £18,574) due from the associate company and £32,003 ( 2022- £Nil) owed to this company. |
Soyang Hardware Limited (formely Josero Limited) |
(Subsidiary) |
At the balance sheet date, amounts owed to group undertakings, includes amount of £Nil (2022: £43,831) due to subsidiary company and an amount owed by Soyang Hardware Limited of £151,777 (2022- £Nil). |