REGISTERED NUMBER: 03590257 (England and Wales)

Audited Financial Statements

for the Year Ended 31 December 2024

for

EasiYo Products (UK) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

Mr Z Li

REGISTERED OFFICE:

Unit 1 Parker Centre

Parker Industrial Estate

Mansfield Road

Derby

Derbyshire

DE21 4SZ

REGISTERED NUMBER:

03590257 (England and Wales)

AUDITORS:

Mabe Allen LLP

Chartered Accountants

Statutory Auditors

50 Osmaston Road

Derby

DE1 2HU

FIXED ASSETS

Tangible assets

5

85,457

105,320

CURRENT ASSETS

Stocks

6

1,171,096

1,116,726

Debtors

7

747,234

784,715

Cash at bank

718,376

236,278

2,636,706

2,137,719

CREDITORS

Amounts falling due within one year

8

3,609,939

2,954,883

NET CURRENT LIABILITIES

(973,233

)

(817,164

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(887,776

)

(711,844

)

PROVISIONS FOR LIABILITIES

9

13,130

16,222

NET LIABILITIES

(900,906

)

(728,066

)

CAPITAL AND RESERVES

Called up share capital

10

1

1

Retained earnings

11

(900,907

)

(728,067

)

SHAREHOLDERS' FUNDS

(900,906

)

(728,066

)

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 Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 16 December 2025 and were signed by:

Mr Z Li - Director

1.	STATUTORY INFORMATION

EasiYo Products (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.

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" including the provisions of Section 1A "Small Entities" 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 director considers that the current outlook presents a significant challenge in terms of whether future profits will be achieved. Given a pre tax loss in the current year of £175,932 (2023: £927,137), the results for the year were impacted by the cost of living increases that impacted consumer confidence significantly. An increase in inputs, specifically an increase in milk prices, continues to impact profitability.

The director has concluded that the combination of these circumstances represents a material uncertainty that casts significant doubt upon the company's ability to continue as a going concern and that, therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of business. Nevertheless, after making enquiries and considering the uncertainties described above, the director has a reasonable expectation that opportunities remain to continue to grow the business and return the business to a profitable position. The challenges faced by the company are being looked at with a view to making changes to the level of management fees and the current royalty fee agreement. The group have confirmed that they intend to provide financial support to allow the company to continue its operational activity and meet its financial obligations as and when they fall due for a period of at least twelve months from the date of the signing of these financial statements. For these reasons, the director continues to adopt the going concern basis of accounting in preparing the annual financial statements.

Significant judgements and estimates

The preparation of financial statements requires management to make judgments, estimates and assumption that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an on-going basis. Revisions of accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. The areas of significant estimates and judgments are as follows:

Stocks

The determination of the cost of stock is a significant area of estimation. The key area of estimation is:

-The determination of the net realisable value of stock.

-The level of provision for slow and obsolete stock.

Returns provision

Revenue recognition is based on the concept of recognising revenue for performance obligations only when they are satisfied and the control of goods are transferred. A right of return is not a separate performance obligation and the company is required to recognise revenue net of estimated returns. Significant assumptions have been made in regard to the estimation in respect of anticipated returns and the level of lost margin on those returns. A decision regarding the level of returns and level of lost margin gives rise to estimation uncertainty, especially in the context of changing economic and market forces and needs to be reviewed by management annually.

Depreciation of fixed assets

The company has recognised depreciation of fixed assets in its financial statements which require management to make judgements concerning the useful life of assets and residual values. The judgements are based on a combination of Group policies, historical experience and other reasonable factors.

Subsequent Event

Management has exercised judgement in determining that a contract variation for royalties is a non-adjusting event, as the renegotiation occured after the reporting date and reflects new circumstances rather than conditions existing at the year-end.

Had the variation been effective at the reporting date, the profit would have been £561,748 higher, and amounts owed to group undertakings would have been reduced by the same amount.

Turnover

Revenue from the sales of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated cost and possible return of goods can be estimated reliably, the amount of revenue can be measured reliably and there is no continuing management involvement with the goods.

Transfers of risks and rewards vary depending on the individual terms of the contract of sale.

Buying Group Rebates

Consistent with standard industry practice, the company has agreements with customers whereby volume-related allowances, promotional and marketing allowances and various other fees and discounts are payable in connection with the sale of goods to those customers.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

10% on cost and 5% on cost

Tools & Equipment

-

50% on cost

Office Equipment

-

20% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Intangible fixed assets

Intangible fixed assets under the capitalisation threshold of £111,725 (equivalent 250,000 NZD at 31 December 2024) are expensed to the profit and loss account, as per the group capital assets policy. The threshold is applied at an individual asset level.

Stocks

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The 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.

Short-term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of Comprehensive Income in administrative expenses.

Interest bearing loans and borrowings

All interest-bearing loans and borrowings which are basic financial instruments are initially recognised at the present value of cash payable to the bank (including interest). After initial recognition they are measured at amortised cost using the effective interest rate method, less impairment. The effective interest rate amortisation is included in finance revenue in the Statement of Comprehensive Income.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Fixed assets under the de-minimus threshold of £179 (equivalent 400 NZD at 31 December 2024) are impaired and recognised in the profit and loss account, as per the group capital assets policy. The threshold is applied at an individual asset level. The director considers the application of the group capital assets policy gives a fairer presentation of the results and of the financial position. The change results in an impairment for the current year of £nil (2023: £104,189).

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2023 - 17 ) .

5.	TANGIBLE FIXED ASSETS

Plant and

Tools &

Office

machinery

Equipment

Equipment

Totals

£

£

£

£

COST

At 1 January 2024

215,662

90,397

35,473

341,532

Disposals

-

(90,397

)

-

(90,397

)

At 31 December 2024

215,662

-

35,473

251,135

DEPRECIATION

At 1 January 2024

120,371

90,397

25,444

236,212

Charge for year

15,613

-

4,250

19,863

Eliminated on disposal

-

(90,397

)

-

(90,397

)

At 31 December 2024

135,984

-

29,694

165,678

NET BOOK VALUE

At 31 December 2024

79,678

-

5,779

85,457

At 31 December 2023

95,291

-

10,029

105,320

6.

STOCKS

2024

2023

£

£

Finished goods

1,171,096

1,116,726

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

468,214

306,536

Amounts owed by group undertakings

185,041

350,145

Other debtors

50,210

53,129

Prepayments and accrued income

43,769

74,905

747,234

784,715

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

567,776

343,060

Amounts owed to group undertakings

2,739,483

2,268,376

Social security and other taxes

16,727

21,756

Other creditors

97

6,970

Accruals and deferred income

285,856

314,721

3,609,939

2,954,883

9.	PROVISIONS FOR LIABILITIES

2024

2023

£

£

Deferred tax

13,130

16,222

Deferred

tax

£

Balance at 1 January 2024

16,222

Utilised during year

(3,092

)

Balance at 31 December 2024

13,130

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

1

Ordinary

£1

1

1

11.

RESERVES

Retained

earnings

£

At 1 January 2024

(728,067

)

Deficit for the year

(172,840

)

At 31 December 2024

(900,907

)

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

The Report of the Auditors was unqualified.

Neil Higgins FCCA (Senior Statutory Auditor)

for and on behalf of Mabe Allen LLP

13.	OTHER FINANCIAL COMMITMENTS

The company has operating lease commitments at the year end amounting to £54,247 (2023: £142,247).

14.	RELATED PARTY DISCLOSURES

As the company is a wholly owned subsidiary of Easiyo Products Limited the company has taken advantage of the exemption contained within FRS102.33.1A and has therefore not disclosed transactions or balances with entities which form part of the group.

15.	POST BALANCE SHEET EVENTS

After the reporting date, but before the financial statements were authorised for issue, the entity agreed a formal variation to an existing royalty contract with EasiYo Products Limited.

Under the revised terms, the royalty mechanism applicable to prior periods was amended such that royalty charges previously recognised in the financial statements were no longer payable.

As a result of this variation, royalty charges totalling £561,748, comprising of £282,200 which had been recognised in the year ended 31 December 2023 and £279,548 which had been recognised in the year ended 31 December 2024, will be reversed in the following financial year.

The variation represents a non-adjusting subsequent event under FRS 102 Section 32, as the revised terms did not exist at the reporting date and do not provide evidence of conditions that existed at that time.

Accordingly, no adjustment has been made to the amounts recognised in these financial statements. The impact of the variation will be reflected in the financial statements for the year ending 31 December 2025.

16.	PARENT AND ULTIMATE PARENT COMPANY

Immediate Parent Company

The company's parent company is Easiyo Products Limited, a company incorporated in New Zealand.

Ultimate Parent Company

The company's ultimate holding company is the Inner Mongolia Yili Industrial Group Company Limited, a company incorporated in China.

Copies of group accounts for the financial year can be obtained from Inner Mongolia Yili Industrial Group Company Limited's registered office at No. 1 Jinshan Avenue, Jinshan Development Zone, HUHEHAOTE 010110, China.