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REGISTERED NUMBER: 05503397 (England and Wales)










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: M P Mashiter





SECRETARY: C Mashiter





REGISTERED OFFICE: 2 Heap Bridge
Bury
Lancashire
BL9 7HR





REGISTERED NUMBER: 05503397 (England and Wales)





AUDITORS: SKS Audit LLP
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 4,987,642 4,635,537
Investments 5 40,163 40,163
5,027,805 4,675,700

CURRENT ASSETS
Stocks 6 2,519,839 3,335,705
Debtors 7 2,391,272 1,909,277
Cash at bank and in hand 106,758 169,870
5,017,869 5,414,852
CREDITORS
Amounts falling due within one year 8 (4,503,108 ) (4,670,851 )
NET CURRENT ASSETS 514,761 744,001
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,542,566

5,419,701

CREDITORS
Amounts falling due after more than one
year

9

(1,042,250

)

(1,166,629

)

PROVISIONS FOR LIABILITIES (484,000 ) (467,000 )
NET ASSETS 4,016,316 3,786,072

CAPITAL AND RESERVES
Called up share capital 10 100 100
Revaluation reserve 2,056,167 2,056,167
Retained earnings 1,960,049 1,729,805
SHAREHOLDERS' FUNDS 4,016,316 3,786,072

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 24 September 2024 and were signed by:





M P Mashiter - Director


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 classDepreciation method and rate
Plant and equipment20% reducing balance basis
Fixtures and fittings20% reducing balance basis
Motor vehicles25% 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 23 (2022 - 21 ) .

4. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
Property machinery fittings vehicles Totals
£    £    £    £    £   
COST OR VALUATION
At 1 January 2023 4,000,000 420,206 492,854 424,988 5,338,048
Additions - 375,318 58,936 120,500 554,754
Disposals - - - (25,900 ) (25,900 )
At 31 December 2023 4,000,000 795,524 551,790 519,588 5,866,902
DEPRECIATION
At 1 January 2023 - 246,985 301,752 153,774 702,511
Charge for year - 70,426 44,352 65,226 180,004
Eliminated on disposal - - - (3,255 ) (3,255 )
At 31 December 2023 - 317,411 346,104 215,745 879,260
NET BOOK VALUE
At 31 December 2023 4,000,000 478,113 205,686 303,843 4,987,642
At 31 December 2022 4,000,000 173,221 191,102 271,214 4,635,537

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 2,357,342 3,169,361
Consignment stock 162,497 166,344
2,519,839 3,335,705

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,206,182 1,775,116
Other debtors 52,664 74,955
Prepayments 132,426 59,206
2,391,272 1,909,277

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 117,069 154,044
Hire purchase contracts 21,260 37,629
Trade creditors 2,876,701 3,097,831
Consignment creditors 162,497 166,344
Amounts owed to group undertakings - 43,831
Corporation tax 9,663 9
Pension contributions unpaid 4,469 1,352
Social security & other taxes 36,369 66,788
Lloyds- Customer invoice
discounting 1,177,076 985,857
Other creditors 39,993 76,926
Accrued expenses 58,011 40,240
4,503,108 4,670,851

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 96,454 120,353
Bank loans - 2-5 years 222,695 265,906
Bank loans over 5 yrs
by installments 562,356 613,456
Hire purchase contracts 160,745 166,914
1,042,250 1,166,629

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: £    £   
100 Ordinary share £1 100 100

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Moganarden Pillay Chelvanaigum FCCA (Senior Statutory Auditor)
for and on behalf of SKS Audit LLP

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).