Company registration number 15017729 (England and Wales)
Merits Health Products UK Limited
Financial Statements
For the year ended 31 December 2025
PAGES FOR FILING WITH REGISTRAR
Merits Health Products UK Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 8
Merits Health Products UK Limited
Balance Sheet
As at 31 December 2025
31 December 2025
- 1 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
3
79,096
29,943
Current assets
Stocks
2,159,264
101,102
Debtors
4
217,874
64,985
Cash at bank and in hand
700,371
35,712
3,077,509
201,799
Creditors: amounts falling due within one year
5
(2,335,780)
(67,606)
Net current assets
741,729
134,193
Total assets less current liabilities
820,825
164,136
Creditors: amounts falling due after more than one year
6
(1,661,480)
(399,074)
Net liabilities
(840,655)
(234,938)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(840,755)
(235,038)
Total equity
(840,655)
(234,938)

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 11 May 2026 and are signed on its behalf by:
Andrew Maskery
Director
Company registration number 15017729 (England and Wales)
Merits Health Products UK Limited
Notes to the Financial Statements
For the year ended 31 December 2025
- 2 -
1
Accounting policies
Company information

Merits Health Products UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pendragon House, 65 London Road, St Albans, Hertfordshire, AL1 1LJ.

1.1
Reporting period

The comparative figures relate to the period from 21 July 2023 to 31 December 2024 and are therefore not directly comparable with the current year.

1.2
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The parent company, Merits Health Products Co. Ltd has confirmed that it will continue to support the company for at least twelve months from the date of approval of the financial statements. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue 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.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Merits Health Products UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
1
Accounting policies
(Continued)
- 3 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
33% straight line
Plant and equipment
33% straight line
Computers
20% straight line
Motor vehicles
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 and Section 12 of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present fair value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, which include trade and other payables and bank loans, are initially measured at transaction price and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present fair value of the future receipts discounted at a market rate of interest.

Merits Health Products UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
1
Accounting policies
(Continued)
- 4 -
1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Total
3
1
3
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2025
-
0
-
0
-
0
35,932
35,932
Additions
19,042
35,719
16,477
-
0
71,238
At 31 December 2025
19,042
35,719
16,477
35,932
107,170
Depreciation and impairment
At 1 January 2025
-
0
-
0
-
0
5,989
5,989
Depreciation charged in the year
4,426
8,011
2,462
7,186
22,085
At 31 December 2025
4,426
8,011
2,462
13,175
28,074
Merits Health Products UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
3
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
(Continued)
- 5 -
Carrying amount
At 31 December 2025
14,616
27,708
14,015
22,757
79,096
At 31 December 2024
-
0
-
0
-
0
29,943
29,943
4
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
18,135
19,511
Amounts owed by group undertakings
93,224
12,809
Other debtors
106,515
32,665
217,874
64,985
5
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
48,667
514
Amounts owed to group undertakings
2,223,907
41,100
Taxation and social security
10,808
6,357
Other creditors
52,398
19,635
2,335,780
67,606
6
Creditors: amounts falling due after more than one year
2025
2024
£
£
Other creditors
1,661,480
399,074
Merits Health Products UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
6
Creditors: amounts falling due after more than one year
(Continued)
- 6 -

Other creditors comprise loans from the company’s parent undertaking, Merits Health Products Co., Ltd.

Loan 1

A loan agreement was entered into on 20 November 2023 under which the parent undertaking agreed to provide funding of up to USD 1,000,000 in one or more drawdowns. The loan is unsecured and carries interest at a fixed rate of 4.0% per annum, calculated on a 360-day basis. Interest is payable within 8 days of the relevant payment date.

During the year, additional drawdowns of USD 500,000 were made. Interest accrued during the year amounted to USD 38,986. The outstanding balance at 31 December 2025, including accrued interest, was USD 1,038,986.

Loan 2

A second loan agreement was entered into on 1 December 2025 under which the parent undertaking agreed to provide funding of up to USD 4,000,000 in one or more drawdowns. The loan is unsecured and carries interest at a fixed rate of 5.0% per annum, calculated on a 360-day basis. Interest is payable within 8 days of the relevant payment date.

During the year, drawdowns of USD 1,200,000 were made. Interest accrued during the year amounted to USD 8,756. The outstanding balance at 31 December 2025, including accrued interest, was USD 1,208,756.

Both loans have maturity dates greater than one year from the balance sheet date and are therefore presented as amounts falling due after more than one year. The loans are unsecured and made with full recourse to the company.

The total balance outstanding at 31 December 2025 has been translated into sterling at the year-end exchange rate and is included within other creditors. The sterling equivalent of the total outstanding balance at that date is £1,661,480.

7
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

Opinion

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2025 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.

Senior Statutory Auditor:
Luke Parker ACA
Statutory Auditor:
Gilberts Chartered Accountants
Date of audit report:
11 May 2026
8
Operating lease commitments
As lessee
Merits Health Products UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
8
Operating lease commitments
(Continued)
- 7 -

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2025
2024
£
£
Total commitments
403,183
558
Merits Health Products UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
- 8 -
9
Related party transactions

The company has taken advantage of the exemptions for qualifying subsidiary undertakings not to include details of transactions with other group companies.

10
Parent company

The company's parent undertaking is Merits Health Products Co. Ltd, a company incorporated in Taiwan.

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