REGISTERED NUMBER: 07205003 (England and Wales) |
TP-LINK UK LIMITED |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
REGISTERED NUMBER: 07205003 (England and Wales) |
TP-LINK UK LIMITED |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Contents of the Consolidated Financial Statements |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Statement of Financial Position | 12 |
Company Statement of Financial Position | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Notes to the Consolidated Financial Statements | 16 |
TP-LINK UK LIMITED |
Company Information |
for the year ended 31 December 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
8th Floor Becket House |
36 Old Jewry |
London |
EC2R 8DD |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Group Strategic Report |
for the year ended 31 December 2023 |
The director presents his strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The results of the group for the year are shown on page 12. The financial position of the group at 31 December 2023 is shown on page 14. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties faced by the group are as below: |
The technologic updating of products - More competitors are joining the market and developing new technology to introduce revolutionary products, which may have a negative effect on our product sale. |
Currency risks - the group is exposed to foreign exchange risk for transactions made from outside of the group including product purchases. Foreign exchange risk became even more outstanding due to the uncertainty of the political and economy environment. Risk arising from such transactions is closely monitored and managed through the group by reducing the risk exposure in certain ways. |
SECTION 172(1) STATEMENT |
The Company's sole director (" the Director") was selected on the basis of his integrity, his success in the industry and markets, his relevant experience and ability to guide and advise the Company. |
The Director is aware of his responsibilities under section 172 of the Companies Act 2003, and ensure that his responsibilities under section 172 are fulfilled in the course of his work. |
The Director participates in regular senior management meetings to understand challenges and opportunities the company facing, to discuss key decisions and to review the consequences of those decisions against the Company's long-term strategies. |
In course of his decision making, and in accordance with his obligations and the requirements of section 172, the Director has regard to the interests of the company's employees. The company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees. This is achieved through formal or informal meetings in the UK. Employees are consulted regularly on a wide range of matters affecting their current and future interests. |
The Director has a key role in both customer and supplier management to enhance and develop the business with both parties. The Director has regular contact with customers and suppliers through business meetings and regular engagements in the discussions on businesses with customer and suppliers. |
The Company recognizes the importance of its environmental responsibilities and aims to comply with all relevant environmental legislation. |
The Director keeps monitoring the impact of the company's operations on the community, and has regard to the desirability of the company to maintain a reputation for high standards of business conduct, which is recognized as a key factor of long term success of business for the company. |
FUNDING AND GOING CONCERN |
The group's business activities together with the factors likely to affect its future development, performance and position are set out below. |
As of 31 December 2023, the group had a strong cash position and no borrowings from outside of the group. And the company had loans to its subsidiaries with total amount of USD 18.7m. |
On the basis of steady growing business and profitability, the group is cautiously maintaining liquidity to ensure that sufficient funds are available for ongoing operations and future development. |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Group Strategic Report |
for the year ended 31 December 2023 |
FINANCIAL KEY PERFORMANCE INDICATORS |
Key performance indicators of the group are considered to be turnover and operating profit. The group turnover amounted to £649M for the 12 months ended 31 December 2023, compared £563M for 12 months to 31 December 2022, with a 15% increase. And the group operating profit amounted to £98M for the 12 months ended 31 December 2023, a significant increase compared £58M for 12 months to 31 December 2022. |
FUTURE STRATEGY |
Our key goal for the next financial year is to keep global market share in wireless networking products and smart home products. Significant resources will be invested into B2B & ISP sector to get more business opportunities. |
We believe that TP-LINK'S long-term strategy, which is to concentrate on delivering reliable products for our customers, is the right one to continue with our success over the long run. |
ON BEHALF OF THE BOARD: |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Report of the Director |
for the year ended 31 December 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of wholesaler of networks communication equipment. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
FUTURE DEVELOPMENTS |
Our key goal for the next financial year is to keep the market share in wireless networking products growing and looking for more opportunities in B2B business sector. We will significantly increase the investment into the B2B sector. We believe that TP-LINK'S long term strategy, which is to concentrate on delivering reliable products for our customers, is the right one to continue with our success over the long run. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors who have held office during the period from 1 January 2023 to the date of this report are as follows: |
FINANCIAL INSTRUMENTS |
The group's operation is exposed to a variety of financial risks that includes the effects of changes in liquidity risks, price risks and foreign exchange currency exposure risk. |
The group has in place a risk management programme that seeks to limit the possible side effects on financial performance by monitoring levels of cash. The monitoring of financial risk management is the responsibility of the Director. |
Liquidity cash flow risk |
The group maintains balances on its bank accounts above a certain level to ensure that there are sufficient funds for daily operations. Credit facility and immediate funding are always available from banks and related party company under common control. |
Price risk |
Expenditure incurred by the group is pre-approved by management. Long term contracts were signed off for major purchase activities in order to ensure that goods and services are obtained at a stable price range within the budget. |
Foreign exchange transactional currency exposure |
The group is exposed to currency risk due to a significant proportion of its payments being denominated in non-sterling currencies. The net exposure of each currency is monitored and managed by the adoption of prudent cash management policy. |
ENGAGEMENT WITH EMPLOYEES |
The group will give full and fair consideration to applications for employment from registered disabled people when vacancies occur and retain any employees who may become disabled. |
The group places considerable value on the involvement of its employees and has continued its practice of keeping them informed on matters affecting them as employees. |
STREAMLINED ENERGY AND CARBON REPORTING |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Report of the Director |
for the year ended 31 December 2023 |
The company, as a subsidiary of the group, follows the sustainability strategy of the group and took local initiatives in the UK market. The company is acting as an importer and distributor, responsible for selling products supplied from the group. Through product innovation, the group has increased the use of renewable energy and reduced carbon emissions. |
From the local perspective, the main energy emissions relate to electricity and gas consumption in the company's office and warehouse. The company drives energy efficiency in the premise by introducing and encouraging good practice behaviour to reduce unnecessary energy consumption. |
IIn line with the The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, for the year ended 31 December 2023, our energy use and greenhouse gas (GHG) emissions are set out below. |
1) Emissions from purchased electricity - 33.77 tCO2e |
2) Emissions from consumption of gas - 20.45 tCO2e |
3) Emissions from business travel in rental or employee-owned vehicles where the company is responsible for purchasing the fuel - 18.08 tCO2e |
Total gross emissions: 72.30 tCO2e |
Emissions per £m turnover: 0.80 tCO2e per £m turnover |
Quantification and reporting methodology |
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2023 UK Government's Conversion Factors for Company Reporting. Data sources include billing and invoices from suppliers. Data for business travel mileage is from employee's claims. |
Intensity measurement |
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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 group's auditors are aware of that information. |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Report of the Director |
for the year ended 31 December 2023 |
AUDITORS |
The auditors, Xeinadin Audit Limited, 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 |
Tp-Link Uk Limited |
Qualified Opinion |
We have audited the financial statements of Tp-Link Uk Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company 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 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
- give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended; |
- have been 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 qualified opinion |
As we were not appointed as auditor of the group and company until after 31 December 2022 and thus did not observe the counting of physical inventories of TP-Link UK Ltd for the year ended 31 December 2022. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2022, which are included in the balance sheet at £91,771,601, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary for the year ended 31 December 2022. |
Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the current period's figures and the comparability of the corresponding figures. |
In addition, were any adjustments to the matter referred to above to be required, the Group strategic report and Director's report comparatives would also need to be amended. |
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 Auditor’s 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 qualified opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report. |
Report of the Independent Auditors to the Members of |
Tp-Link Uk Limited |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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. |
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £91,771,601 held at 31 December 2022. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason. |
Opinions on other matters prescribed by the Companies Act 2006 |
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 Director 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 for the Director have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
Except for the matter described in the Basis for qualified opinion section of our report, 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 directors’ report. |
Arising solely from the limitation on the scope of our work relating to inventory, referred to above: |
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
- we were unable to determine whether adequate accounting records have been kept. |
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: |
- | 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 director's remuneration specified by law are not made. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Tp-Link 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: |
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. |
The following laws and regulations were identified as being of significance to the entity: |
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation. |
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include Waste Electrical and Electronic Equipment regulation, health and safety legislation and ISO 9001 standards for quality management. |
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. |
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 |
Chartered Accountants and Statutory Auditors |
8th Floor Becket House |
36 Old Jewry |
London |
EC2R 8DD |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Consolidated |
Income Statement |
for the year ended 31 December 2023 |
2023 | 2022 |
as restated |
Notes | £'000 | £'000 |
TURNOVER | 3 | 645,249 | 560,793 |
Cost of sales | 480,444 | 448,379 |
GROSS PROFIT | 164,805 | 112,414 |
Administrative expenses | 65,851 | 59,270 |
98,954 | 53,144 |
Other operating income | (1,110 | ) | 4,667 |
OPERATING PROFIT | 5 | 97,844 | 57,811 |
Interest receivable and similar income | 1,747 | 256 |
99,591 | 58,067 |
Amounts written off investments | 7 | 5,459 | 264 |
94,132 | 57,803 |
Interest payable and similar expenses | 8 | 576 | 1,039 |
PROFIT BEFORE TAXATION | 93,556 | 56,764 |
Tax on profit | 9 | 26,184 | 13,686 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 67,372 | 43,078 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Consolidated |
Other Comprehensive Income |
for the year ended 31 December 2023 |
2023 | 2022 |
as restated |
Notes | £'000 | £'000 |
PROFIT FOR THE YEAR | 67,372 | 43,078 |
OTHER COMPREHENSIVE INCOME |
Foreign exchange movement | (4,522 | ) | 10,781 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(4,522 |
) |
10,781 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
62,850 |
53,859 |
Total comprehensive income attributable to: |
Owners of the parent | 62,850 | 53,859 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Consolidated Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
as restated |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 12 | 9 | 2 |
Tangible assets | 13 | 35,142 | 17,578 |
Investments | 14 | 24,193 | 8,115 |
59,344 | 25,695 |
CURRENT ASSETS |
Stocks | 15 | 116,835 | 91,772 |
Debtors | 16 | 122,312 | 100,334 |
Cash and cash equivalents | 127,132 | 87,217 |
366,279 | 279,323 |
CREDITORS |
Amounts falling due within one year | 17 | 115,029 | 63,632 |
NET CURRENT ASSETS | 251,250 | 215,691 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
310,594 |
241,386 |
PROVISIONS FOR LIABILITIES | 20 | 12,788 | 6,430 |
NET ASSETS | 297,806 | 234,956 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 21,950 | 21,950 |
Capital redemption reserve | 22 | 60,001 | 60,001 |
Foreign exchange reserve | 22 | (911 | ) | 3,611 |
Other reserves | 22 | 508 | 508 |
Merger reserve | 22 | (302 | ) | (302 | ) |
Retained earnings | 22 | 216,560 | 149,188 |
SHAREHOLDERS' FUNDS | 297,806 | 234,956 |
The financial statements were approved by the director and authorised for issue on 28 January 2025 and were signed by: |
J Qiao - Director |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Company Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
as restated |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Stocks | 15 |
Debtors | 16 |
Cash and cash equivalents |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 20 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 | 21,950 | 21,950 |
Capital redemption reserve | 22 | 60,001 | 60,001 |
Other reserves | 22 | 39 | 39 |
Retained earnings | 22 | 55,856 | 34,368 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 21,488 | 16,283 |
The financial statements were approved by the director and authorised for issue on |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Consolidated Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption |
capital | earnings | reserve |
£'000 | £'000 | £'000 |
Balance at 1 January 2022 | 21,950 | 106,110 | 60,001 |
Changes in equity |
Profit for the year | - | 43,078 | - |
Other comprehensive income | - | - | - |
Total comprehensive income | - | 43,078 | - |
Balance at 31 December 2022 | 21,950 | 149,188 | 60,001 |
Changes in equity |
Profit for the year | - | 67,372 | - |
Other comprehensive income | - | - | - |
Total comprehensive income | - | 67,372 | - |
Balance at 31 December 2023 | 21,950 | 216,560 | 60,001 |
Foreign |
exchange | Other | Merger | Total |
reserve | reserves | reserve | equity |
£'000 | £'000 | £'000 | £'000 |
Balance at 1 January 2022 | (7,170 | ) | 508 | (302 | ) | 181,097 |
Changes in equity |
Profit for the year | - | - | - | 43,078 |
Other comprehensive income | 10,781 | - | - | 10,781 |
Total comprehensive income | 10,781 | - | - | 53,859 |
Balance at 31 December 2022 | 3,611 | 508 | (302 | ) | 234,956 |
Changes in equity |
Profit for the year | - | - | - | 67,372 |
Other comprehensive income | (4,522 | ) | - | - | (4,522 | ) |
Total comprehensive income | (4,522 | ) | - | - | 62,850 |
Balance at 31 December 2023 | (911 | ) | 508 | (302 | ) | 297,806 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Company Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Other | Total |
capital | earnings | reserve | reserves | equity |
£'000 | £'000 | £'000 | £'000 | £'000 |
Balance at 1 January 2022 | 21,950 | 18,085 | 60,001 | 39 | 100,075 |
Changes in equity |
Total comprehensive income | - | 16,283 | - | - | 16,283 |
Balance at 31 December 2022 | 21,950 | 34,368 | 60,001 | 39 | 116,358 |
Changes in equity |
Total comprehensive income | - | 21,488 | - | - | 21,488 |
Balance at 31 December 2023 | 21,950 | 55,856 | 60,001 | 39 | 137,846 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Tp-Link Uk Limited is a |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies. |
The financial statements are rounded to the nearest thousand Pound. |
FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS |
The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
BASIS OF CONSOLIDATION |
The consolidated financial statement present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
All of the company's subsidiary undertakings were acquired as part of a series of group reconstructions, with no change in ultimate equity holders of the acquired subsidiary. The directors have taken advantage of the option in FRS 102 to account for these group reconstructions using the merger accounting method. |
Under merger accounting the results and cash flows of all combing entities are brought into the financial statements of the group from the beginning of the financial year in which the combination occurred, adjusted to achieve uniformity of accounting policies. The comparative information is restated by including the total comprehensive income for all combining entities for the previous reporting period and their statement of financial position for the previous reporting date. |
On acquisition the carrying values of assets and liabilities of the subsidiary undertaking are not adjusted to fair value, and no goodwill is recognised by the group as a consequence of the business combination. |
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occured before the date of transition to FRS 102, being 1 April 2014. |
Going concern |
The business activities, together with the factors likely to affect its future development, performance, and position are set out in the strategic report, in addition to a description of the group's policies to manage their principle risks and uncertainties. |
The group overall is in a strong net asset position with year on year increases in turnover. This reflects continued demand for the product offering. The group has continued to make a profit. |
Consequently, the directors are confident that there will be sufficient funds to continue to meet liabilities as they fall due to at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis. |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
RELATED PARTY EXEMPTION |
The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
SIGNIFICANT JUDGEMENTS AND ESTIMATES |
The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates. |
The following judgements have had the most significant impact on amounts recognised in the financial statements: |
Investments |
The investments in subsidiary undertakings are recorded at cost and have not been impaired except for TP-Link Research America. The directors consider that no impairment is required for the remaining investments based on their knowledge of the subsidiary companies and the intentions of the owners and directors of the ultimate parent company to support the trading in all subsidiaries as required. Except for TP-Link Research America, the amounts owed from subsidiary company undertakings have not been impaired as the directors consider that these debts will be recovered in full. |
Lease commitments |
The group has entered into a range of lease commitments in respect of property, plant and equipment. The classification of these leases as either financial or operating leases requires the directors to consider whether the terms and conditions of each lease are such that the group has acquired the risks and rewards associated with the ownership of the underlying assets. |
Stock provisioning |
The group designs, manufactures and sells wireless networking products and is subject to changing customer demands (and fashion trends). As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated sales of finished goods and future usage of raw materials. |
Provisions |
The Group has recognised a provision in respect of warranty guarantees on defective products returned after sale. The judgements, estimates and associated assumptions necessary to calculate these provision are based on historical experience and other reasonable factors. |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
TURNOVER |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods recognised when all of the following conditions are satisfied: |
- the Group has transferred the significant risks and rewards of ownership to the buyer; |
- the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of turnover can be measured reliably; |
- it is probably that the Group will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
GOODWILL |
INTANGIBLE ASSETS |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
TANGIBLE FIXED ASSETS |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit loss. |
STOCKS |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. |
At each balance sheet date, stocks are assessed for impairment. If stock is 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. |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
FINANCIAL INSTRUMENTS |
Debtors |
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less and impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management. |
Other financial instruments |
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date. |
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to readies the asset and settle the liability simultaneously. |
Creditors |
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date. |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 CURRENCIES |
Functional and presentation currency |
The Company's functional and presentational currency is Pounds Sterling. |
Transactions and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the date of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. |
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income. |
HIRE PURCHASE AND LEASING COMMITMENTS |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 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 class of business is given below: |
2023 | 2022 |
as restated |
£'000 | £'000 |
Turnover | 688,480 | 592,031 |
Discounts and rebates | (39,285 | ) | (28,859 | ) |
Returned products | (3,946 | ) | (2,380 | ) |
645,249 | 560,792 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
as restated |
£'000 | £'000 |
United Kingdom | 89,467 | 75,840 |
Europe | 14,235 | 14,875 |
Rest of world | 541,547 | 470,077 |
645,249 | 560,792 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
as restated |
£'000 | £'000 |
Wages and salaries | 24,489 | 18,949 |
Social security costs | 2,827 | 2,518 |
Other pension costs | 633 | 460 |
27,949 | 21,927 |
The average number of employees during the year was as follows: |
2023 | 2022 |
as restated |
Employees |
The average number of employees by undertakings that were proportionately consolidated during the year was 352 (2022 - 287 ) . |
2023 | 2022 |
as restated |
£ | £ |
Directors' remuneration | 101,713 | 81,965 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
as restated |
£'000 | £'000 |
Other operating leases | 663 | 470 |
Depreciation - owned assets | 723 | 710 |
Loss on disposal of fixed assets | 43 | - |
Computer software amortisation | 1 | 1 |
Foreign exchange differences | 1,845 | (3,509 | ) |
6. | AUDITORS' REMUNERATION |
2023 | 2022 |
as restated |
£'000 | £'000 |
Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
76 |
72 |
Auditors' remuneration for non audit work | 11 | 11 |
7. | AMOUNTS WRITTEN OFF INVESTMENTS |
2023 | 2022 |
as restated |
£'000 | £'000 |
Amounts w/o invs | 5,459 | 264 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as restated |
£'000 | £'000 |
Interest payable | 576 | 1,039 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
as restated |
£'000 | £'000 |
Current tax: |
Corporation tax | 25,719 | 13,338 |
Foreign tax | 465 | 348 |
Tax on profit | 26,184 | 13,686 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
9. | TAXATION - continued |
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: |
2023 | 2022 |
as restated |
£'000 | £'000 |
Profit before tax | 93,556 | 56,764 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.500 % (2022 - 19 %) |
21,986 |
10,785 |
Effects of: |
Foreign tax effects | 3,733 | 2,407 |
Withholding taxes | 465 | 348 |
Other adjustments | - | 145 |
Total tax charge | 26,184 | 13,685 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£'000 | £'000 | £'000 |
Foreign exchange movement | (4,522 | ) | - | (4,522 | ) |
2022 |
Gross | Tax | Net |
£'000 | £'000 | £'000 |
Foreign exchange movement | 10,781 | - | 10,781 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
11. | PRIOR YEAR ADJUSTMENT |
In the prior year, the rates paid to local authorities of £311,000 was presented as part of the tax expenses, this has been restated to show this as administrative expenses. |
In the prior year, the cost of returned goods, RMA returns, of £2,380,000 was stated as a cost of sale, this has been adjusted to show as a reduction in turnover. |
Neither of the above items affect the retained profits for the year or the net assets in the accounts. |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£'000 | £'000 | £'000 |
COST |
At 1 January 2023 | - | 14 | 14 |
Additions | 7 | 1 | 8 |
At 31 December 2023 | 7 | 15 | 22 |
AMORTISATION |
At 1 January 2023 | - | 12 | 12 |
Amortisation for year | - | 1 | 1 |
At 31 December 2023 | - | 13 | 13 |
NET BOOK VALUE |
At 31 December 2023 | 7 | 2 | 9 |
At 31 December 2022 | - | 2 | 2 |
13. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£'000 | £'000 | £'000 |
COST |
At 1 January 2023 | 18,578 | - | 610 |
Additions | 193 | 17,101 | 270 |
Disposals | (3 | ) | - | - |
At 31 December 2023 | 18,768 | 17,101 | 880 |
DEPRECIATION |
At 1 January 2023 | 1,593 | - | 473 |
Charge for year | 344 | 23 | 70 |
Eliminated on disposal | (3 | ) | - | - |
At 31 December 2023 | 1,934 | 23 | 543 |
NET BOOK VALUE |
At 31 December 2023 | 16,834 | 17,078 | 337 |
At 31 December 2022 | 16,985 | - | 137 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£'000 | £'000 | £'000 |
COST |
At 1 January 2023 | 1,938 | - | 21,126 |
Additions | 730 | 27 | 18,321 |
Disposals | (309 | ) | (1 | ) | (313 | ) |
At 31 December 2023 | 2,359 | 26 | 39,134 |
DEPRECIATION |
At 1 January 2023 | 1,482 | - | 3,548 |
Charge for year | 284 | 2 | 723 |
Eliminated on disposal | (276 | ) | - | (279 | ) |
At 31 December 2023 | 1,490 | 2 | 3,992 |
NET BOOK VALUE |
At 31 December 2023 | 869 | 24 | 35,142 |
At 31 December 2022 | 456 | - | 17,578 |
Company |
Fixtures |
Long | and |
leasehold | fittings | Totals |
£'000 | £'000 | £'000 |
COST |
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 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
14. | FIXED ASSET INVESTMENTS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£'000 | £'000 | £'000 | £'000 |
Shares in group undertakings | - | - |
Loans to group undertakings | - | - |
Other investments not loans | 24,193 | 8,115 |
24,193 | 8,115 |
Additional information is as follows: |
Group |
Unlisted |
investments |
£'000 |
COST |
At 1 January 2023 | 8,115 |
Additions | 21,588 |
Impairments | (5,510 | ) |
At 31 December 2023 | 24,193 |
NET BOOK VALUE |
At 31 December 2023 | 24,193 |
At 31 December 2022 | 8,115 |
Company |
Shares in |
group |
undertakings |
£'000 |
COST |
At 1 January 2023 |
Additions |
Impairments | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
SUBSIDIARIES |
Registered office: 145 South State College Blvd. Suite 400, Brea, CA 92821, USA |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: 88 Fulton Way, Richmond Hill, ON, Canada, L4B 1J5 |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: Unit 4, 9-11 South Street, Rydalmere, NSW 2116, Australia |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: 155 5th Street, Sandton, JHB, 2196, South Africa |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: 2-9-1 Nishi Simbashi Minato-ku, Tokyo PMO, Nishi Shinbashi 8th Floor, Japan |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: 12th Floor, Yulchon Building, 24-1 Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: 13F., No. 156, Section 1. Zhongsham Rd, Banciao District, New Talpei Country 220, Taiwan (ROC) |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: Ukraine, 03057, Kiev, ul. Motallistov, 20, Office Centre VEDA, 2nd Floor |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: Forumvagem 14, 131 53 Nacka, Sweden |
Nature of business: |
% |
Class of shares: | holding |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: 245 Charocot Ave, San Jose CA, 95131, USA |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) |
Registered office: 36 TECHNOLOGY DR, STE 200,IRVINE CA 92618 |
Nature of business: |
% |
Class of shares: | holding |
2023 |
£'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: 36 TECHNOLOGY DR, STE 200,IRVINE CA 92618 |
Nature of business: |
% |
Class of shares: | holding |
2023 |
£'000 |
Aggregate capital and reserves |
Loss for the year | ( |
) |
Company |
Loans to |
group |
undertakings |
£'000 |
At 1 January 2023 |
Repayment in year | ( |
) |
Other movement | ( |
) |
At 31 December 2023 |
15. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£'000 | £'000 | £'000 | £'000 |
Finished goods | 116,835 | 91,772 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
16. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£'000 | £'000 | £'000 | £'000 |
Amounts falling due within one year: |
Trade debtors | 96,893 | 81,043 |
Amounts owed by group undertakings | - | 233 |
Other debtors | 12,773 | 10,405 |
Tax | 1,616 | 1,416 |
Prepayments and accrued income | 10,361 | 7,125 |
121,643 | 100,222 |
Amounts falling due after more than one | year: |
Other debtors | 669 | 112 |
Aggregate amounts | 122,312 | 100,334 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£'000 | £'000 | £'000 | £'000 |
Trade creditors | 46,651 | 34,382 |
Amounts owed to group undertakings | 36,758 | 5,767 |
Tax | 2,557 | 661 |
Social security and other taxes | 97 | 262 |
VAT | 3,155 | 2,947 | 2,337 | 2,807 |
Other creditors | 17,058 | 11,072 |
Accruals and deferred income | 8,753 | 8,541 |
115,029 | 63,632 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
as restated |
£'000 | £'000 |
Within one year | 2,483 | 1,677 |
Between one and five years | 3,401 | 3,439 |
In more than five years | - | 570 |
5,884 | 5,686 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
18. | LEASING AGREEMENTS - continued |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
as restated |
£'000 | £'000 |
Within one year |
Between one and five years |
In more than five years |
19. | RISK MANAGEMENT |
The group's operation is exposed to a variety of financial risks that includes the effects of changes in credit risks, liquidity risks, price risks and interest rates risk. |
The group has in place a risk management programme that seeks to limit the possible side effects on financial performance by monitoring levels of cash. The monitoring of financial risk management is the responsibility of the Directors. |
Credit risk |
Credit risk is minimised by operating as far as possible on a cash basis. The group has in place a system of monthly budgeting and management accounts, and these internal controls will pinpoint any problem areas very quickly and enable remedial action to be taken. |
Liquidity cash flow risk |
The group maintains balances on its bank accounts within limits agreed with its bankers to ensure that there are sufficient funds for operations. |
Price risk |
Expenditure incurred by the group is authorised by management in order to ensure that goods and services are not obtained at a higher price than necessary. |
Interest rate risk |
The group is exposed to interest rate risk on the available funding facilities. |
Foreign exchange transactional currency exposure |
The group is exposed to currency risk due to a significant proportion of its payments being denominated in non-sterling currencies. The net exposure of each currency is monitored and managed by the use of forward foreign exchange contracts as considered appropriate by management. |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£'000 | £'000 | £'000 | £'000 |
Other provisions | 12,788 | 6,430 | 1,565 | 969 |
Aggregate amounts | 12,788 | 6,430 | 1,565 | 969 |
Company |
Warrantyprovision |
£'000 |
Balance at 1 January 2023 |
Provided during year |
Balance at 31 December 2023 |
The warranty provision represents the guarantee of 3-5 years warranty for defective products returned after their sale. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£'000 | £'000 |
Ordinary | £1 | 21,950 | 21,950 |
22. | RESERVES |
Group |
Capital | Foreign |
Retained | redemption | exchange |
earnings | reserve | reserve |
£'000 | £'000 | £'000 |
At 1 January 2023 | 149,188 | 60,001 | 3,611 |
Profit for the year | 67,372 |
Foreign exchange reserve | - | - | (4,522 | ) |
At 31 December 2023 | 216,560 | 60,001 | (911 | ) |
Group |
Other | Merger |
reserves | reserve | Totals |
£'000 | £'000 | £'000 |
At 1 January 2023 | 508 | (302 | ) | 213,006 |
Profit for the year | 67,372 |
Foreign exchange reserve | - | - | (4,522 | ) |
At 31 December 2023 | 508 | (302 | ) | 275,856 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
22. | RESERVES - continued |
Company |
Capital |
Retained | redemption | Other |
earnings | reserve | reserves | Totals |
£'000 | £'000 | £'000 | £'000 |
At 1 January 2023 | 34,368 | 60,001 | 39 | 94,408 |
Profit for the year | 21,488 | 21,488 |
At 31 December 2023 | 55,856 | 60,001 | 39 | 115,896 |
Capital redemption reserve |
This reserve records the nominal value of shares repurchased by the Group. |
Foreign exchange reserve |
This reserve comprises translation differences arising from the translation of financial statements of the group's foreign entities into Pounds Sterling. |
Other reserves |
This reserve represents capital contributions received from the group's parent undertaking. |
Merger reserve |
The merger reserve reflects the difference between the nominal value of shares issued by the company as consideration when acquiring subsidiary undertakings and the value of the shares acquired. |
Retained earnings |
This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company's shareholders. |
23. | ULTIMATE PARENT COMPANY |
Diamond Creek Global Limited (incorporated in British Virgin Islands ) is regarded by the director as being the company's ultimate parent company. |
24. | RELATED PARTY DISCLOSURES |
Related party transactions with companies under common control |
2023 | 2022 |
as restated |
£'000 | £'000 |
Sales | - | 594 |
Purchases | - | 385,094 |
Amount due to related party | - | 18,954 |
TP-LINK UK LIMITED (REGISTERED NUMBER: 07205003) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
25. | POST BALANCE SHEET EVENTS |
After the year end but before the date of signing this report the group undertook a reorganization and TP-Link UK Limited is no longer the head of the group. |
In August 2024, a group member entered into a settlement agreement with a competitor which cancelled all outstanding litigation between the entities and resulted in a cash outflow of $135m and a cross-licencing agreement allowing each party to utilize each other's patents. |