REGISTERED NUMBER: 07832975 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
TDCM UK LIMITED |
REGISTERED NUMBER: 07832975 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
TDCM UK LIMITED |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
TDCM UK LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Registered Auditors & |
Chartered Accountants |
Mercury House |
19-21 Chapel Street |
Marlow |
Buckinghamshire |
SL7 3HN |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
2023 was a year of a number of challenges for TDCM with a several key developments creating headwinds for the business after a number of years of growth and consolidation. The company has further diversified its revenue streams with additional customers outside of the Ebike sector. These additional customers were not however sufficient to arrest an overall decline in revenue, leading to sales revenue in 2023 that were 12.5% lower than the previous year at £11.8m (2022 £13.5m). |
The Key events during the year were: |
- Supply chains of finished goods within in the Ebike sector remained high due to a period of oversupply and purchasing in the years following COVID. This led to existing customers revising POs downwards during the year to reflect the inventory they were already carrying. |
- Consumer demand in the EBike sector declined as inflationary pressures in the wider economic environment reduced discretionary consumer spending. Ebike share schemes and demand for components to supply these products remained healthy as urban micromobility continued to grow. |
The Operating profit in 2023 was £168k, a significant decline on the previous years' tally of £741k. There was, and remains, a continuing battle to pass on raw material cost increases to our end customers that enables the company to protect gross margins. Looking forward to 2024, we are broadly optimistic that the overstocking of Ebike inventory in the wider market will reduce and lead to a resumption of demand from our existing customers that will enhance the prospect of revenue growth in 2024. |
In general, 2023 was a challenging year for the business with reduced revenue but despite this the company continued to win new customers and set a stable platform to take advantage of the more favourable market condition forecast for 2024. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risk to the business remains the ability of the company to maintain and grow its sales in an increasingly competitive market. In the event that a number of key customers reduce or withdraw orders then this would require the company to react to ensure reserves are maintained at a reasonable level. |
THE FUTURE |
The board believes that the Company is now established as a trusted and high-quality supplier to the E-Bike industry. The plan over the next three years is to continue to develop the business with new and better product launches and deliver substantive improvements in financial performance. |
ON BEHALF OF THE BOARD: |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Richardson Jones, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TDCM UK LIMITED |
Opinion |
We have audited the financial statements of TDCM UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TDCM UK LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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: |
We gained an understanding of the legal and regulatory framework applicable to TDCM Group Limited and the manufacturing industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to the Companies Act 2006 and UK tax legislation. Our procedures included: |
- agreeing the financial statement disclosures to underlying supporting documentation |
- enquiries with management |
- understanding of management's internal controls designed to prevent and detect irregularities |
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TDCM UK LIMITED |
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. |
for and on behalf of |
Registered Auditors & |
Chartered Accountants |
Mercury House |
19-21 Chapel Street |
Marlow |
Buckinghamshire |
SL7 3HN |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 3 | 11,794,265 | 13,486,004 |
Cost of sales | 10,595,746 | 11,971,470 |
GROSS PROFIT | 1,198,519 | 1,514,534 |
Administrative expenses | 1,074,007 | 898,290 |
124,512 | 616,244 |
Other operating income | 43,753 | 124,494 |
OPERATING PROFIT | 5 | 168,265 | 740,738 |
Interest payable and similar expenses | 6 | 68,543 | 77,856 |
PROFIT BEFORE TAXATION | 99,722 | 662,882 |
Tax on profit | 7 | 29,811 | 117,116 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 69,916 | 545,768 |
Non-controlling interests | (5 | ) | (2 | ) |
69,911 | 545,766 |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 69,911 | 545,766 |
OTHER COMPREHENSIVE INCOME |
Foreign exchange differences | (157,930 | ) | (134,190 | ) |
Capital reserve |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(157,930 |
) |
(134,190 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(88,019 |
) |
411,576 |
Total comprehensive income attributable to: |
Owners of the parent | (88,014 | ) | 411,578 |
Non-controlling interests | (5 | ) | (2 | ) |
(88,019 | ) | 411,576 |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
CONSOLIDATED BALANCE SHEET |
31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 10,740 | 17,388 |
Tangible assets | 10 | 505,381 | 780,482 |
Investments | 11 | - | - |
516,121 | 797,870 |
CURRENT ASSETS |
Stocks | 12 | 3,517,094 | 4,375,211 |
Debtors | 13 | 2,861,186 | 3,693,755 |
Cash at bank | 432,053 | 684,256 |
6,810,333 | 8,753,222 |
CREDITORS |
Amounts falling due within one year | 14 | 4,447,635 | 6,584,253 |
NET CURRENT ASSETS | 2,362,698 | 2,168,969 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,878,819 |
2,966,839 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 4,406 | 4,406 |
Share premium | 18 | 3,169,042 | 3,169,042 |
Other reserves | 18 | 103,092 | 103,092 |
Retained earnings | 18 | (383,108 | ) | (295,094 | ) |
SHAREHOLDERS' FUNDS | 2,893,432 | 2,981,446 |
NON-CONTROLLING INTERESTS | 19 | (14,613 | ) | (14,607 | ) |
TOTAL EQUITY | 2,878,819 | 2,966,839 |
The financial statements were approved by the Board of Directors and authorised for issue on 8th October 2024 and were signed on its behalf by: |
Mr A R Boyce - Director |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
COMPANY BALANCE SHEET |
31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium | 18 |
Retained earnings | 18 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (618 | ) | 1,601 |
The financial statements were approved by the Board of Directors and authorised for issue on |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1st January 2022 | 4,406 | (706,672 | ) | 3,169,042 |
Changes in equity |
Total comprehensive income | - | 411,578 | - |
Balance at 31st December 2022 | 4,406 | (295,094 | ) | 3,169,042 |
Changes in equity |
Total comprehensive income | - | (88,014 | ) | - |
Balance at 31st December 2023 | 4,406 | (383,108 | ) | 3,169,042 |
Other | Non-controlling | Total |
reserves | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1st January 2022 | 103,092 | 2,569,868 | (14,605 | ) | 2,555,263 |
Changes in equity |
Total comprehensive income | - | 411,578 | (2 | ) | 411,576 |
Balance at 31st December 2022 | 103,092 | 2,981,446 | (14,607 | ) | 2,966,839 |
Changes in equity |
Total comprehensive income | - | (88,014 | ) | (5 | ) | (88,019 | ) |
Balance at 31st December 2023 | 103,092 | 2,893,432 | (14,612 | ) | 2,878,820 |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1st January 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31st December 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31st December 2023 | ( |
) |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 155,605 | 395,590 |
Interest paid | (68,543 | ) | (77,856 | ) |
Tax paid | (114,073 | ) | (48,578 | ) |
Net cash from operating activities | (27,011 | ) | 269,156 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (4,503 | ) | - |
Purchase of tangible fixed assets | (62,759 | ) | (108,216 | ) |
Sale of tangible fixed assets | - | 10,507 |
Net cash from investing activities | (67,262 | ) | (97,709 | ) |
(Decrease)/increase in cash and cash equivalents | (94,273 | ) | 171,447 |
Cash and cash equivalents at beginning of year |
2 |
684,256 |
646,999 |
Effect of foreign exchange rate changes | (157,930 | ) | (134,190 | ) |
Cash and cash equivalents at end of year |
2 |
432,053 |
684,256 |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 99,722 | 662,882 |
Depreciation charges | 348,315 | 396,098 |
Loss/(profit) on disposal of fixed assets | 695 | (10,055 | ) |
Finance costs | 68,543 | 77,856 |
517,275 | 1,126,781 |
Decrease/(increase) in stocks | 858,117 | (890,321 | ) |
Decrease/(increase) in trade and other debtors | 832,569 | (141,184 | ) |
(Decrease)/increase in trade and other creditors | (2,052,356 | ) | 300,314 |
Cash generated from operations | 155,605 | 395,590 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 432,053 | 684,256 |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 684,256 | 646,999 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 684,256 | (252,203 | ) | 432,053 |
684,256 | (252,203 | ) | 432,053 |
Debt |
Debts falling due within 1 year | (944,508 | ) | - | (944,508 | ) |
(944,508 | ) | - | (944,508 | ) |
Total | (260,252 | ) | (252,203 | ) | (512,455 | ) |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
TDCM UK Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
These consolidated financial statements incorporate the financial statements of TDCM UK Limited, its trading wholly-owned subsidiary, TDCM Corporation Limited, and TDCM Corporation Limited's 58.63% owned subsidiary, Wiz Energy Technology Co. Limited, both registered in the Republic of China. |
The group uses the acquisition method of accounting to consolidate the results of the subsidiaries. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Intangible assets |
Trademarks and patents are capitalised at cost and amortised on a straight-line basis over the effective period of the trademark or patent. |
Computer software is capitalised at cost and amortised on a straight-line basis over the estimated useful of the software which may vary from 3 to 5 years. |
Tangible fixed assets |
Fixed assets are stated at acquisition cost less accumulated depreciation. Depreciation is provided on a straight-line basis over the estimated useful lives which vary from 3 to 5 years. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom | 2,166,333 | 1,425,558 |
Europe | 2,742,953 | 4,834,060 |
United States of America | 556 | 90,088 |
Asia | 6,722,344 | 6,859,179 |
Canada | 162,079 | 272,840 |
Australia | - | 4,279 |
11,794,265 | 13,486,004 |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 1,836,977 | 2,102,082 |
Social security costs | 184,588 | 209,468 |
Other pension costs | 90,591 | 180,174 |
2,112,156 | 2,491,724 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Parent company directors | 4 | 4 |
Administrative staff | 9 | 9 |
Manufacturing staff | 87 | 90 |
Selling & Distribution staff | 9 | 12 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | - | - |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets | 337,165 | 370,377 |
Loss/(profit) on disposal of fixed assets | 9,013 | (10,055 | ) |
Computer software amortisation | 11,151 | 25,721 |
Foreign exchange differences | (97,769 | ) | (274,670 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank interest | 68,543 | 77,856 |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
Other jurisdictions | 29,811 | 117,116 |
Tax on profit | 29,811 | 117,116 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 99,722 | 662,882 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
23,455 |
125,948 |
Effects of: |
Income not taxable for tax purposes | (23,455 | ) | (125,948 | ) |
Tax due in other jurisdictions | 29,811 | 117,116 |
Total tax charge | 29,811 | 117,116 |
Tax effects relating to effects of other comprehensive income |
31.12.23 |
Gross | Tax | Net |
£ | £ | £ |
Foreign exchange differences | (157,930 | ) | - | (157,930 | ) |
Capital reserve |
(157,930 | ) | - | (157,930 | ) |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Foreign exchange differences | (134,190 | ) | - | (134,190 | ) |
Capital reserve |
(134,190 | ) | - | (134,190 | ) |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Patents and | Computer |
licences | software | Totals |
£ | £ | £ |
COST |
At 1st January 2023 | 64,807 | 186,395 | 251,202 |
Additions | - | 4,503 | 4,503 |
At 31st December 2023 | 64,807 | 190,898 | 255,705 |
AMORTISATION |
At 1st January 2023 | 64,807 | 169,007 | 233,814 |
Amortisation for year | - | 11,151 | 11,151 |
At 31st December 2023 | 64,807 | 180,158 | 244,965 |
NET BOOK VALUE |
At 31st December 2023 | - | 10,740 | 10,740 |
At 31st December 2022 | - | 17,388 | 17,388 |
10. | TANGIBLE FIXED ASSETS |
Group |
Plant and |
machinery |
£ |
COST |
At 1st January 2023 | 3,511,871 |
Additions | 62,759 |
Disposals | (382,204 | ) |
At 31st December 2023 | 3,192,426 |
DEPRECIATION |
At 1st January 2023 | 2,731,389 |
Charge for year | 337,165 |
Eliminated on disposal | (381,509 | ) |
At 31st December 2023 | 2,687,045 |
NET BOOK VALUE |
At 31st December 2023 | 505,381 |
At 31st December 2022 | 780,482 |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
TDCM Corporation Limited was acquired in 2012 and operates in Taiwan, Republic of China. |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Wiz Energy Technology Co. Ltd is a 58.63% subsidiary of TDCM Corporation Limited and operates in Taiwan, Republic of China. |
12. | STOCKS |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Finished goods | 3,517,094 | 4,375,211 |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 2,369,616 | 2,795,013 |
Amounts owed by group undertakings | - | - |
Other debtors | 458,589 | 858,960 |
Prepayments and accrued income | 32,981 | 39,782 |
2,861,186 | 3,693,755 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Other loans (see note 15) | 944,508 | 944,508 |
Trade creditors | 896,952 | 1,498,868 |
Tax | 29,116 | 113,378 |
Other creditors | 2,032,747 | 3,595,274 |
Accrued expenses | 544,312 | 432,225 |
4,447,635 | 6,584,253 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Other loans | 944,508 | 944,508 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year | 257,281 | 272,109 |
Between one and five years | 619,139 | 408,429 |
876,420 | 680,538 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £0.001 | 4,406 | 4,406 |
TDCM UK LIMITED (REGISTERED NUMBER: 07832975) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
18. | RESERVES |
Group |
Retained | Share | Other |
earnings | premium | reserves | Totals |
£ | £ | £ | £ |
At 1st January 2023 | (295,094 | ) | 3,169,042 | 103,092 | 2,977,040 |
Profit for the year | 69,916 | 69,916 |
Foreign exchange difference | (157,930 | ) | - | - | (157,930 | ) |
At 31st December 2023 | (383,108 | ) | 3,169,042 | 103,092 | 2,889,026 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st January 2023 | ( |
) | 106,173 |
Deficit for the year | ( |
) | ( |
) |
At 31st December 2023 | ( |
) | 105,555 |
19. | NON-CONTROLLING INTERESTS |
The minority interest represents third-party interest in the Net Assets of Wiz Energy Technology Co. Ltd. |
The minority interest's share in the results for the year was a loss: £5 (2022: loss: £2), and the minority interest in the Net Assets at the balance sheet date was deficit: £14,613 (2022: deficit: £14,607). |
20. | RELATED PARTY DISCLOSURES |
Other loans of £944,508 represent loans from the group's Shareholders. |
21. | ULTIMATE CONTROLLING PARTY |