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REGISTERED NUMBER: 03144857 (England and Wales)







Financial Statements for the Year Ended 31st December 2024

for

Wellell UK Limited

Wellell UK Limited (Registered number: 03144857)






Contents of the Financial Statements
for the Year Ended 31st December 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Wellell UK Limited

Company Information
for the Year Ended 31st December 2024







DIRECTORS: Y Hsu
D Lee





REGISTERED OFFICE: Unit 33 Great Western Business Park
Mckenzie Way
Worcester
Worcestershire
WR4 9GN





REGISTERED NUMBER: 03144857 (England and Wales)





AUDITORS: Richards Sandy Audit Services Limited
(Statutory Auditor)
Thorneloe House
25 Barbourne Road
Worcester
WR1 1RU

Wellell UK Limited (Registered number: 03144857)

Balance Sheet
31st December 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 - -
Tangible assets 5 103,215 137,688
Investments 6 1 1
103,216 137,689

CURRENT ASSETS
Stocks 505,338 584,263
Debtors 7 188,768 400,772
Cash at bank and in hand 405,299 745,750
1,099,405 1,730,785
CREDITORS
Amounts falling due within one year 8 975,497 1,199,553
NET CURRENT ASSETS 123,908 531,232
TOTAL ASSETS LESS CURRENT
LIABILITIES

227,124

668,921

CAPITAL AND RESERVES
Called up share capital 524,714 524,714
Share premium 175,286 175,286
Retained earnings (472,876 ) (31,079 )
227,124 668,921

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25th February 2025 and were signed on its behalf by:





Y Hsu - Director


Wellell UK Limited (Registered number: 03144857)

Notes to the Financial Statements
for the Year Ended 31st December 2024

1. STATUTORY INFORMATION

Wellell UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
The financial statements contain information about Wellell UK Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

GOING CONCERN
The directors have prepared detailed financial projections which indicate that the company can continue to operate as a going concern for a period of at least 12 months. Management have considered financial sensitivities as well as the wider macro economic factors in forming these projections. The company has received a letter of support from its parent entity, Wellell Inc, which confirm that financial assistance will be provided, if required for a period of at least 12 months from the date of signing. The directors are satisfied that the company is in a position to meet its liabilities as they fall due over the next 12 months from the date of signing of these financial statements and on this basis, the financial statements have been prepared on a going concern basis.

CHANGES IN ACCOUNTING POLICIES
The company has changed the accounting policy for measuring financial instruments from applying the provisions of Section 11' Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments to applying the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted in the UK) and IAS 39 (as amended following the publication of IFRS 9).

In regard to the impairment provisions for trade receivables recognised based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses, the company has also changed its accounting estimates applied at the current year end compared to the accounting estimates applied at the comparative year end following the of the recalculation of the comparative position in line with the change in accounting policy for measuring financial instruments.

The comparatives have not been restated as a result of the change in accounting policy, on the basis that when applying similar accounting estimates as was used in preparing the previous year's financial statements prepared under the previous accounting policy, the change in accounting policy has not substantially changed the valuation of financial instruments at the end of the previous year.

The change in accounting estimate, when applying the current accounting policy for the measurement of financial instruments to both the current and previous year end positions but with different estimates applied under that accounting policy in each year, has for the current financial year resulted in decreased net assets and increased net losses by an estimated £20,000.

TURNOVER
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

GOODWILL
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Goodwill is considered to have a finite useful life and, prior to the full impairment of goodwill in 2023, was amortised on a systematic basis over its previous useful economic expected life of 10 years.

Wellell UK Limited (Registered number: 03144857)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

2. ACCOUNTING POLICIES - continued

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.

Trademarks were, prior to their full impairment in 2023, being amortised on a systematic basis over its previous expected useful economic life of 10 years.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - over the term of the lease
Plant and machinery - 25% on cost
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on cost

INVESTMENTS IN SUBSIDIARIES
Investments in subsidiary undertakings are recognised at cost.

STOCKS
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

FINANCIAL INSTRUMENTS
The company's financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position.

Trade and other receivables are initially recognised at fair value, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. Impairment provisions for trade receivables are recognised based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognised in profit or loss. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

Trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method.

TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Wellell UK Limited (Registered number: 03144857)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

2. ACCOUNTING POLICIES - continued

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.

HIRE PURCHASE AND LEASING COMMITMENTS
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

PENSION COSTS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2023 - 14 ) .

4. INTANGIBLE FIXED ASSETS
Other
intangible
Goodwill assets Totals
£    £    £   
COST
At 1st January 2024
and 31st December 2024 140,615 275,760 416,375
AMORTISATION
At 1st January 2024
and 31st December 2024 140,615 275,760 416,375
NET BOOK VALUE
At 31st December 2024 - - -
At 31st December 2023 - - -

5. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1st January 2024
and 31st December 2024 249,219 24,117 369,265 81,480 724,081
DEPRECIATION
At 1st January 2024 124,853 24,117 368,111 69,312 586,393
Charge for year 26,142 - 1,068 7,263 34,473
At 31st December 2024 150,995 24,117 369,179 76,575 620,866
NET BOOK VALUE
At 31st December 2024 98,224 - 86 4,905 103,215
At 31st December 2023 124,366 - 1,154 12,168 137,688

Wellell UK Limited (Registered number: 03144857)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

6. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1st January 2024
and 31st December 2024 1
NET BOOK VALUE
At 31st December 2024 1
At 31st December 2023 1

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 130,221 327,049
Prepayments 58,547 73,723
188,768 400,772

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 9) - 1,858
Customer payments on accounts 1,544 1,046
Trade creditors 18,219 46,265
Amounts owed to other group companies 847,970 1,042,796
Social security and other taxes 67,005 49,979
Other creditors 5,152 3,965
Accrued expenses 35,607 53,644
975,497 1,199,553

9. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year - 1,858

Non-cancellable operating leases
2024 2023
£    £   
Within one year 88,930 88,498
Between one and five years 245,997 328,086
334,927 416,584

Wellell UK Limited (Registered number: 03144857)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

10. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Hire purchase contracts - 1,858

The company's obligation under finance leases are secured by the lessor's charge over the leased assets.

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

The Report of the Auditors was unqualified.

Mr Robert Iestyn Richards FCCA (Senior Statutory Auditor)
for and on behalf of Richards Sandy Audit Services Limited

12. ULTIMATE PARENT COMPANY

The ultimate parent company, who is also the parent company of the smallest group for which consolidated financial statements are drawn up in which Wellell UK Limited is included, is Wellell Inc. The registered office of Wellell Inc is No.9, Minsheng St., Tucheng Dist., New Taipei City, Taiwan.