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REGISTERED NUMBER: 06659777 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SWANN COMMUNICATIONS (EUROPE) LIMITED

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


SWANN COMMUNICATIONS (EUROPE) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: J Z Liu
A Talevski
J R Speet





SECRETARY: M G Allan





REGISTERED OFFICE: First Floor
2 Canon Harnett Court
Wolverton Mill
Milton Keynes
Buckinghamshire
MK12 5NF





REGISTERED NUMBER: 06659777 (England and Wales)





AUDITORS: Ad Valorem Audit Services Limited
Chartered Certified Accountants
& Statutory Auditors
2 Manor Farm Court
Old Wolverton Road
Old Wolverton
Milton Keynes
Buckinghamshire
MK12 5NN

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024


The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS
Business model

The company imports and distributes the Swann range of DIY home security, CCTV and smart home products in the UK and has plans to sell into Europe.

Strategy

Distribution is through national on-line and in-store retailers, our own on-line store in the UK and a distributor, with the main end-user customer sectors being small businesses and home users. The company is committed to evolving its value for money portfolio of products as refinements in technology make more solutions practical and affordable for the DIY market.

Financial review

2024 was a challenging year. As Coronavirus leaves us, the impact of the cost-of-living crisis driven by the Ukraine-Russia conflict and increasing energy costs continues. Consumer confidence continued to fall as the crisis deepened. Meanwhile, cheaper products direct from the far east are now flooding the market.

Despite these pressures, the company continues to focus on great value, high quality products all linked to a user-friendly experience through the Swann Security app. Our multi-channel route to market through blue-chip retailers, e-tailers and our own store means that we are well positioned to take full advantage of the recovery. The company also has ambitious plans to introduce its products into the pan-European market both in retail and online. 2024 saw the introduction of new innovative products including long range, wireless cameras and a 4k video doorbell with built-in, programmable Artificial Intelligence.

Performance Indicators

2024 2023

Revenue £4,928,961 £7,123,349
Gross profit £1,741,597 £2,061,163
Gross margin 35.3% 28.9%


SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The directors consider that the following are the principal risk factors that could materially and adversely affect the company's future operating profits or financial position. The company has controls embedded within its systems to limit each of these potential risk exposures and regularly reviews, reassesses and proactively limits the associated risks.

Exchange rate fluctuations

Products are sourced in US dollars and the company operates a dollar denominated intercompany account with other group companies. There is therefore an inherent risk that material exchange rate movements in the US dollar to Sterling exchange rate would result in significant gains or losses on dollar balances owed. Any such material movements will also have an impact on the Sterling cost of product and therefore the gross and net profitability of the business in the short term. The company expects to be able to cope with and respond to these movements when they arise without threat to the on-going viability of the business. the company enters into forward currency commitments from time to time in order to manage currency risk.

Supply chain issues

The company uses a number of suppliers to manufacture product and in the event of a critical failure or a significant proposed change in terms, production could be switched to an alternative supplier.

Recent months have seen extended shipping times and costs from the Far East, but these have been factored into our planning processes to ensure that product reaches the market in time.

Liquidity

Our customer base in predominantly large UK retailers who pay promptly to terms. Their financial and payment performance is kept under continual review and we carry debt insurance to assist with managing the risk of non-payment to the business. Sources of funds include customers, other group companies and an invoice discounting facility with our bankers. Cash flow is forecast and managed so as to avoid any liquidity issues.

Credit risk

The principle credit risk arises from the company's trade debtors. In order to manage this risk, management review and approve the credit terms of all new customers and regularly review the credit position of existing customers.

ON BEHALF OF THE BOARD:





J R Speet - Director


16 April 2025

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024


The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY
The principal activity of the company is the import and distribution of the Swann range of DIY home security, CCTV and smart home products in Europe and that is expected to continue.

FINANCIAL RISKS
The main financial risks arising from the company's activities are credit risk and liquidity risk. these are monitored by the board of directors and were not considered to be significant at the balance sheet date.

The company's policy in respect of credit risk is to require appropriate credit checks on potential customers and to carry debt insurance where appropriate. The company also regularly reviews the credit position and payment pattern of existing customers.

The company's policy in respect of liquidity risk is to maintain readily accessible bank deposit funds to ensure the company has sufficient funds for operations and to ensure sufficiently accurate and timely forecasts for sales and cashflow.

GOING CONCERN
The directors have prepared a budget forecast covering a period extending beyond 12 months from the date of approval of these financial statements. The forecast contains assumptions about the performance of the business which include the director's best estimates of future developments of the business, including consideration of working capital assumptions and cash reserves. Whilst the company is forecast to be cash neutral, additional reliance is placed upon the support of the ultimate company. Shenzhen Infinova Limited has committed in writing to the directors that it will provide financial support as required and it will not recall monies in relation to amounts owed to them if payments would impact the liquidity of the company.

Based on the above, the directors are satisfied that Swann Communications (Europe) Limited is able to meet its liabilities as they fall due and consequently, these financial statements have been prepared on a going concern basis.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2024.

RESEARCH AND DEVELOPMENT
The company does not undertake any significant research and development activities.

FUTURE DEVELOPMENTS
The company will continue to bring new technological products to the market and intend to expand its operation into Europe, notably in The Netherlands.

DIRECTORS
J Z Liu has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

A Talevski - appointed 3 April 2024
J R Speet - appointed 27 October 2024


SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company's auditors are unaware, and each director 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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





J R Speet - Director


16 April 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SWANN COMMUNICATIONS (EUROPE) LIMITED


Opinion
We have audited the financial statements of Swann Communications (Europe) Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2024 and of its loss 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 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 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 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SWANN COMMUNICATIONS (EUROPE) LIMITED


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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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 five, 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 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 company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SWANN COMMUNICATIONS (EUROPE) 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:

In our process of identifying fraud risks we assessed events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud ("fraud risk factors") to determine how fraud risks are relevant to our audit. Based on the auditing standards we addressed two fraud risks that were relevant to our audit, in relation to revenue recognition and management override of controls. Based upon our analysis of fraud risk factors, we have not identified any additional fraud risks.

Our audit procedures included an evaluation of the design, implementation as well as the operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures, including detailed testing of high risk journal entries and procedures to satisfy ourselves that revenue has been properly recognised in the financial statements in accordance with financial reporting standards and the Company's accounting policies. Through these procedures, we did not identify any material actual or suspected incidences of fraud.

We have evaluated facts and circumstances in order to assess laws and regulations relevant to the Company. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience, through discussion with the Directors and other management (as required by auditing standards) and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including taxation and financial reporting (including related company legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect:
- Employment legislation, reflecting the Company's workforce
- Health and safety regulation, reflecting the Company's distribution and operating processes
- Data privacy, reflecting the Company's management of personal and corporate data

Auditing standards limit the required audit procedures to identify non-compliance with these regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not identify any material actual or suspected non-compliance in any of the above areas.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SWANN COMMUNICATIONS (EUROPE) LIMITED

We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Directors and other management are responsible for such internal control as the Directors and other management of the Company determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.




Darren Kerins FCCA (Senior Statutory Auditor)
for and on behalf of Ad Valorem Audit Services Limited
Chartered Certified Accountants
& Statutory Auditors
2 Manor Farm Court
Old Wolverton Road
Old Wolverton
Milton Keynes
Buckinghamshire
MK12 5NN

16 April 2025

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £ £ £

TURNOVER 5 4,928,961 7,123,349

Cost of sales 3,187,364 5,062,186
GROSS PROFIT 1,741,597 2,061,163

Distribution costs 1,465,528 1,967,536
Administrative expenses 816,151 1,072,474
2,281,679 3,040,010
OPERATING LOSS 7 (540,082 ) (978,847 )

Interest receivable and similar income 1,388 3,772
(538,694 ) (975,075 )

Interest payable and similar expenses 8 - 2,475
LOSS BEFORE TAXATION (538,694 ) (977,550 )

Tax on loss 9 - -
LOSS FOR THE FINANCIAL YEAR (538,694 ) (977,550 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(538,694

)

(977,550

)

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
Notes £ £ £
FIXED ASSETS
Tangible assets 10 485 1,590

CURRENT ASSETS
Stocks 11 2,554,368 2,192,084
Debtors 12 2,692,202 3,489,232
Cash in hand 355,314 272,563
5,601,884 5,953,879
CREDITORS
Amounts falling due within one year 13 6,674,474 6,488,880
NET CURRENT LIABILITIES (1,072,590 ) (535,001 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(1,072,105

)

(533,411

)

CAPITAL AND RESERVES
Called up share capital 16 1 1
Retained earnings 17 (1,072,106 ) (533,412 )
SHAREHOLDERS' FUNDS (1,072,105 ) (533,411 )

The financial statements were approved by the Board of Directors and authorised for issue on 16 April 2025 and were signed on its behalf by:





J R Speet - Director


SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 January 2023 1 444,138 444,139

Changes in equity
Total comprehensive income - (977,550 ) (977,550 )
Balance at 31 December 2023 1 (533,412 ) (533,411 )

Changes in equity
Total comprehensive income - (538,694 ) (538,694 )
Balance at 31 December 2024 1 (1,072,106 ) (1,072,105 )

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 81,363 423,029
Interest paid - (2,475 )
Net cash from operating activities 81,363 420,554

Cash flows from investing activities
Interest received 1,388 3,772
Net cash from investing activities 1,388 3,772

Cash flows from financing activities
Invoice financing facility - (224,156 )
Net cash from financing activities - (224,156 )

Increase in cash and cash equivalents 82,751 200,170
Cash and cash equivalents at
beginning of year

2

272,563

72,393

Cash and cash equivalents at end of
year

2

355,314

272,563

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024


1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£ £
Loss before taxation (538,694 ) (977,550 )
Depreciation charges 1,105 3,664
Finance costs - 2,475
Finance income (1,388 ) (3,772 )
(538,977 ) (975,183 )
(Increase)/decrease in stocks (362,284 ) 2,141,165
Decrease/(increase) in trade and other debtors 797,030 (1,518,200 )
Increase in trade and other creditors 185,594 775,247
Cash generated from operations 81,363 423,029

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 31 December 2024
31/12/24 1/1/24
£ £
Cash and cash equivalents 355,314 272,563
Year ended 31 December 2023
31/12/23 1/1/23
£ £
Cash and cash equivalents 272,563 72,393


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24 Cash flow At 31/12/24
£ £ £
Net cash
Cash at bank and in hand 272,563 82,751 355,314
272,563 82,751 355,314
Total 272,563 82,751 355,314

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024


1. STATUTORY INFORMATION

Swann Communications (Europe) 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.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

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" and the Companies Act 2006.

3. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
The financial statements have been prepared under the historical cost convention.

GOING CONCERN
The directors have prepared a budget forecast covering a period extending beyond 12 months from the date of approval of these financial statements. The forecast contains assumptions about the performance of the business which include the directors' best estimates of future developments of the business, including consideration of working capital assumptions and cash reserves. Whilst the company is forecast to be cash neutral, additional reliance is placed upon the support of the ultimate company. Shenzhen Infinova Limited has committed in writing to the directors that it will provide financial support as required and that it will not recall monies in relation to amounts owed to them if payments would impact the ability of the company to continue as a going concern.

Based on the above, the directors are satisfied that Swann Communications (Europe) Limited is able to meet its liabilities as they fall due and consequently, these financial statements have been prepared on a going concern basis.

TURNOVER
Turnover represents sales to external customers at invoiced amounts less value added tax or local taxes on sales. Turnover is recognised when the risks and rewards of owning the goods has passed to the customer which is generally on delivery.

CUSTOMER REBATES
Provisions for rebates are recognised at the balance sheet date based on the best estimate of discounts which have accrued and are expected to be refunded to customers in future periods. Rebates are recognised as deductions from turnover through the income statement.

TANGIBLE FIXED ASSETS
Tangible fixed assets are stated at cost less depreciation.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Plant and machinery 3 - 4 years straight line
Fixtures and fittings3 - 5 years straight line

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


3. ACCOUNTING POLICIES - continued

STOCKS
Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on an average cost basis. Net realisable value is based on estimated selling price less additional costs to completion and sale.

FINANCIAL ASSETS
Financial assets are initially measured at transaction price (including transaction costs) and subsequently recognised at amortised cost, less any impairment.

Financial liabilities
Financial liabilities are classified according to the substance of the financial instrument's contractual obligations. Financial liabilities are initially measured at transaction price and subsequently recognised at amortised cost.

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

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

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

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

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

FOREIGN 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.

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Customer rebates
Some rebates are determined based on the expected level of sales achieved by retail customers. This assessment includes the impact of any proposed promotional activity and our experience of previous sales volumes. These provisions usually crystallise within three months and the effect of any significant under or over provision is adjusted for accordingly.

Stocks
Judgements on the level of stock provisions required incorporate an assessment of expected sales volumes both here in the UK and potentially in other territories and take into account promotional opportunities and the risk of technical obsolescence.

5. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£ £
Sale of goods 4,928,961 7,123,349
4,928,961 7,123,349

An analysis of turnover by geographical market is given below:

2024 2023
£ £
United Kingdom 4,867,772 6,701,299
Rest of Europe 61,189 -
Rest of World - 422,050
4,928,961 7,123,349

6. EMPLOYEES AND DIRECTORS
2024 2023
£ £
Wages and salaries 543,063 715,221
Social security costs 62,406 80,592
605,469 795,813

The average number of employees during the year was as follows:
2024 2023

10 13

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


6. EMPLOYEES AND DIRECTORS - continued

2024 2023
£ £
Directors' remuneration - 130,773

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes - 1

7. OPERATING LOSS

The operating loss is stated after charging/(crediting):

2024 2023
£ £
Depreciation - owned assets 1,105 3,664
Auditors' remuneration 36,000 33,000
Other non- audit services 6,000 5,000
Management charges 273,968 553,933
Foreign exchange loss/(gain) (32,889 ) (88,643 )
Operating leases 32,177 32,896

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£ £
Bank interest - 2,334
Bank loan interest - 141
- 2,475

9. TAXATION

The company has tax losses carried forward available for set-off against future taxable profits of approximately £4.2 million. In view of the current trading position and future uncertainty, a deferred tax asset of approximately £1.05 million has not been recognised.

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and
machinery fittings Totals
£ £ £
COST
At 1 January 2024
and 31 December 2024 107,109 20,989 128,098
DEPRECIATION
At 1 January 2024 106,434 20,074 126,508
Charge for year 675 430 1,105
At 31 December 2024 107,109 20,504 127,613
NET BOOK VALUE
At 31 December 2024 - 485 485
At 31 December 2023 675 915 1,590

11. STOCKS
2024 2023
£ £
Stocks 2,554,368 2,192,084

There is no material difference between the replacement cost of stocks and the amounts stated above.

Finished goods and goods for resale stocks are stated net of a provision for obsolescence of £102,000 (2023 - £115,000).

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade debtors 818,439 1,336,019
Amounts owed by group undertakings 1,722,563 1,585,851
Other debtors 151,200 567,362
2,692,202 3,489,232

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade creditors 1,843,408 1,093,140
Amounts owed to group undertakings 3,670,329 3,529,399
Social security and other taxes 26,836 24,536
VAT 95,654 187,538
Other creditors 685,108 1,319,377
Accruals and deferred income 353,139 334,890
6,674,474 6,488,880

The company parent, Swann Communications Pty Limited has agreed in writing to provide extended payment terms in relation to amounts owed to the parent and its subsidiaries.

14. LEASING AGREEMENTS
As at 31 December 2024, the company had total commitments under non-cancellable operating leases of £34,386 (2023 - £66,563).

15. FINANCIAL INSTRUMENTS

The company's financial instruments are analysed as follows:

2024 2023
£    £   
Financial assets
Financial assets measured at amortised cost
Cash and cash equivalents 355,314 272,563
Debtors 2,692,202 3,489,232
3,047,516 3,761,795

Financial liabilities
Financial liabilities measured at amortised cost 6,674,474 6,488,880

Information regarding the company's exposure to and management of credit risk, liquidity risk, exchange rate risk and supply chain issues is included in the strategic report.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
1 Ordinary £1 1 1

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


17. RESERVES
Retained
earnings
£

At 1 January 2024 (533,412 )
Deficit for the year (538,694 )
At 31 December 2024 (1,072,106 )

18. ULTIMATE PARENT COMPANY

The company is a wholly owned subsidiary of Swann Communications Pty Limited, a company registered in Australia and the ultimate parent company is Shenzhen Infinova Ltd (registered in China and listed on the Shenzhen Stock Exchange). Accounts are available from Swann Communications Pty Ltd, Unit 5B 706 Lorimer Street, Port Melbourne, Victoria 3207 Australia.

The only group in which the results of Swann Communications (Europe) Limited are consolidated is that headed by Infinova Ltd, whose principal place of business is in the USA.

SWANN COMMUNICATIONS (EUROPE) LIMITED (REGISTERED NUMBER: 06659777)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


19. RELATED PARTY DISCLOSURES

At the balance sheet date, the company had the following intercompany amounts due from/(to) other group companies:

2024 2023
£    £   

Swann Communications Ltd (Hong Kong) (97,044 ) (287,696 )
Infinova Corporation 1,722,563 1,477,510
Swann Communications Pty Ltd (Australia) (3,506,234 ) (3,241,703 )
Swann Communications USA Inc (67,051 ) 108,341


All loans are interest free and repayable on demand.

During the year, the company entered into the following transactions with other group companies:

2024 2023
£    £   

Funds transferred to Swann Communications USA Inc. - 5,269
Funds transferred to Swann Communications Ltd 3,397,245 2,834,090
Purchases from Swann Communications USA Inc 175,393 38,456
Sales to Swann Communications Pty Ltd - 169,788
Sales to Swann Communications USA Inc - 174,562
Management charges from Swann Communications Pty Ltd 273,968 553,933
Charges from Swann Communications Ltd - 162,283
Costs paid on the company's behalf by Swann Communications Ltd 3,206,594 2,133,169
Costs incurred by the company on behalf of Infinova Corporation 245,053 219,116