Registered number:
07205003
TP-Link UK Limited
Annual report and financial statements
For the year ended
31 December 2019
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Company Information
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Statutory Auditors
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Chartered Accountants
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Contents
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Director's responsibilities statement
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Independent auditors' report
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Consolidated statement of comprehensive income
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Consolidated balance sheet
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Consolidated statement of changes in equity
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Company statement of changes in equity
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Consolidated Statement of cash flows
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Notes to the financial statements
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Group strategic report
For the year ended 31 December 2019
The director presents his strategic report for the year ended 31 December 2019.
The results of the group for the year are shown on page 14. The financial position of the group at 31 December 2019 is shown on page 15.
As part of our group restructure plan, to strengthen regional level management, enhance the UK company as a regional control and management centre and coordinating relevant regional resources, during the financial year ended 31 December 2019, we established:
• TP-LINK Entreprises France SARL with a registered share capital of £856,612. This company will
focus on the market in Italy.
• TP-LINK ESC S.R.L with a registered share capital of £157,607. This company is based in Romania and
will provide customer support services to end users in western European countries.
• TP-LINK Portugal , Unipessoal Lda for a consideration of £ 48,340. This company will focus on the
market in Portugal.
• Additional share capital in TP-LINK USA CORPORATION, TP-LINK CANADA INC and TP-LINK Japan,
which were issued in the year.
As a result of Brexit, in order to strengthen regional level management, the company has transferred its shareholding in below entities to a sister company after the year end:
• TP-Link Deutschland GmbH
• TP-Link Italia S.R.L
• TP-Link Espana, S.L.U
• TP-Link Polska SP. Z O.O.
• TP-Link Portugal, Unipessoal Lda
• TP-Link Czech s.r.o
• TP-Link Enterprises France SARL
• TP-Link Romania S.R.L.
• TP-Link ESC S.R.L.
• TP-Link Networks Hungary Kft.
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.
At 31 December 2019 the group had loans from related company under common control with total amount of GBP 10.25m. And the company had loans to its subsidiaries with total amount of USD 37.4m and EUR 5.2m.
The director of the company has received a letter of support from the lending company formally confirming that the repayment of any of the loans with the related company under common control will not be requested to be made at any time within the 12 months following the date of the approval of these financial statements unless the company and group has sufficient funds to make such repayments without adversely affecting its ability to continue to pay its external creditors as they fall due for repayment and to continue trading. Trading balances due to the related company under common control and other group companies in respect of product supplied to the company (the related company under common control is the major source of products supplied by the
company) are expected to be paid in accordance with the normal credit terms of business but such repayment terms can be flexed by the related company under common control if necessary.
The loans made to the subsidiaries have fixed term of repayment but the company has confirmed to extend the term of the loan if request by the subsidiaries. The director does not expect that repayment will be made within the short term unless such repayment is funded by the parent company.
Page 1
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Group strategic report (continued)
For the year ended 31 December 2019
Principal risks and uncertainties
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The principal risks and uncertainties faced by the group are as below:
- The technologic updating of products — The competitors in market are investing more on R&D and some
new revolutionary products are going to be released into market, which may have a negative effect on our
product sale.
- COVID risks — Given the uncertainty surrounding Covid-19, the group is continually monitoring
developments. Under current circumstances, we would believe the situation will last for at least another
one or two years. A steady supply chain will be a challenge due to the negative impact on factory
producing abilities and shipping line. The group is working closely with our suppliers and forwarders to
ensure the fulfilment of orders.
- Brexit risks — The impact of the departure of the United Kingdom from the European Union is assessed
on an ongoing basis by the director of the company.
- Currency risks — The group is exposed to foreign exchange risk for transactions made from outside of
the group including product purchases. Foreign exchange risk arising from such transactions is monitored
and managed through the group holding company by using curtain hedging policy.
Financial key performance indicators
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Key performance indicators of the group are considered to be turnover and operating profit. The group turnover amounted to £450M for the 12 months ended 31 December 2019, compared £402M for 12 months to 31 December 2018. And the group operating profit amounted to £40M for the 12 months ended 31 December 2019, a significant improvement compared £17M for 12 months to 31 December 2018.
Our key goal for the next financial year is to keep global market share in wireless networking products and smart home products. We will also have more funds invested into the markets we think there is a potential opportunity.
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.
Page 2
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Group strategic report (continued)
For the year ended 31 December 2019
Director's statement of compliance with duty to promote the success of the group
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The company and group'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 and group.
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 and group’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 and group’s employees. The company and group 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 during his visits to UK. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.
The Director has 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 during his visit to UK and regular engagements in the discussions on businesses with customer and suppliers.
The company and group recognises the importance of its environmental responsibilities and aims to comply with all relevant environmental legislation.
The Director continues to monitor the impact of the company and group’s operations on the community, and has regard to the desirability of the company and group to maintain a reputation for high standards of business conduct, which is recognised as a key factor of long term success of business for the company and group.
This report was approved by the board on 12 March 2021
and signed on its behalf.
Page 3
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Director's report
The director presents his report and the financial statements for the year ended 31 December 2019.
The principal activity of the group continues to be a wholesaler of network communication equipment.
The profit for the year, after taxation, amounted to £
37,513
(2018 -
£
8,326
).
Dividends distributed during the year ended 31 December 2019 total £1,162 thousand (31 December 2018: £Nil).
The director who served during the year was:
Our key goal for the next financial year is to keep the market share in wireless networking products and improve the exposure of smart home products. We will also implement proper cost control on business to realize a better performance. 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.
Financial instruments
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 Director.
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. As noted in the section on funding and going concern on page 1 the group is funded by its operations and funding provided by a related party company under common control.
Page 4
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Director's report (continued)
Financial instruments (continued)
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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.
Employee Involvement
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.
Disclosure of information to auditors
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The
director at the time when this Director's report is approved has confirmed that:
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so far as he is aware, there is no relevant audit information of which the company and the group's auditors are unaware, and
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he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditors are aware of that information.
Post balance sheet events
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i) Subsequent to the year end, the company reduced the share capital by £31,000,000, on 21 October 2020, to £50,950,386.
ii) A group reorganisation took place on 1 October 2020, whereby the following subsidiaries were transferred out of the group to a company under common control:
TP-LINK Deutschland GmbH
TP-Link Espana S.L.U
TP-Link Italia S.R.L
TP-Link Enterprises France SARL
TP-Link Portugal Unipessoal Lda
TP-Link Polska SP. Z O.O.
TP-LINK Czech s.r.o.
TP-Link Romania S.R.L
TP-LINK Networks Hungary Kft.
iii) At the time of the approval of the financial statements the director continues to closely monitor the potential effects of the COVID-19 virus outbreaks on the group. The full impact of the pandemic in the world economies is yet to be seen, but the group will continue to mitigate the risk by following the UK Government guidelines and adapting and developing its own internal strategies.
Page 5
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Director's report (continued)
Under section 487(2) of the Companies Act 2006, Kreston Reeves LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
12 March 2021
and signed on its behalf.
Page 6
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Director's responsibilities statement
For the year ended 31 December 2019
The director is responsible for preparing the Group strategic report, the Director's report and the
consolidated
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:
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select suitable accounting policies for the group's financial statements and then apply them consistently;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.
The director is 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 the group and to 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.
The director is responsible for the maintenance and integrity of the corporate and financial information included on the group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements
and other information included in Director's reports may differ from legislation in other jurisdictions.
Page 7
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Independent auditors' report to the members of TP-Link UK Limited
For the year ended 31 December 2019
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 2019, which comprise the group Statement of comprehensive income, the group and company Balance sheets, the group Statement of cash flows, the group and company Statement of changes in equity
and the related notes, 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 matters described below, in the basis for qualified opinion paragraph, the financial statements:
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give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2019 and of the group's profit for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Page 8
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Independent auditors' report to the members of TP-Link UK Limited (continued)
Basis for qualified opinion on financial statements
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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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
1.The parent company and the directors of a related company under common ownership have provided
assurances to the group to confirm the continued financial and other support it provides to the company
and its group. Should further financial support be required by the company and its group it has been
confirmed by the parent company and the directors of the related company under common control that
this will be forthcoming for a period of not less than 12 months from the date of the approval of these
financial statements.
The financial and other information made available to us for the parent company, did not provide evidence
to support the ability of the parent company to continue to provide the level of support that the company
and its group may require. We have not been provided with the financial information of the related
company under common control. Whilst the parent company and the related company under common
ownership have provided significant funding and other support to the group during the period, as stated,
we are unable to assess the ability of the parent company and the related company under common
ownership to continue to provide the funding and other support required by the group.
Furthermore, we have not been able to ascertain the level of support the group will require in the next 12
months, due to the lack of evidence and financial information provided in relation to the future cashflows
of the group.
The financial statements do not include any adjustments that might be required to asset values in the
event the group was not able to continue as a going concern.
We have not been able to confirm the relationship between the group and the related company under
common control.
As a consequence there is a material uncertainty that may cast significant doubt on the group and
company's ability to continue which has not been disclosed in the financial statements.
2. As set out in note 16 in the financial statements the director does not consider that an impairment
provision is required against the carrying value of investments in subsidiary undertakings of the company
with a recorded value of £66,833,000 (cost of investments) and £32,823,000 (long term loan funding).
The director has not prepared detailed impairment assessments to support his view that impairment
provisions are not required for these investments. Therefore, we do not have access to the information
required to audit whether provisions are required in respect of the carrying value of the investments in
subsidiary undertakings or the amounts due from subsidiary undertakings, and the scope of our audit has
been limited in this respect.
3. As disclosed in note 25 the company has recognised a provision for warranty costs of £1,313,000 as at 31
December 2018 and £2,077,000 as at 31 December 2019. The provision is based on the return rate of
products in recent years, expectations for future returns and expectations of the total cost of warranties
net of any products that are able to be returned to stocks. We have not been provided with detailed
support for these calculations by the company.
In addition, were any adjustments to the matters referred to above in paragraphs 1 to 3 above to be required, the Group strategic report and Director’s report would also need to be amended.
Page 9
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Independent auditors' report to the members of TP-Link UK Limited (continued)
The director is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 on other matters prescribed by the Companies Act 2006 section of our report we have concluded that a material misstatement of the other information exists. As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning:
• the group's ability to continue as a going concern
• the quantum of the company provision for warranty costs of £1,313,000 as at 31 December 2018, and
£2,077,000 as at 31 December 2019
We have concluded that where the other information refers to going concern, results, the profit for the year and the financial position of the group it may be materially misstated for the same reasons.
Basis for qualified opinion on other matters prescribed by the Companies Act 2006
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Except for the matter described in the basis for qualified opinion on other matters prescribed by the Companies Act 2006 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 Director's report for the financial year for which
the financial statements are prepared is consistent with the financial statements;and
• the Group strategic report and the Director's report have been prepared in accordance with applicable
legal requirements.
Page 10
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Independent auditors' report to the members of TP-Link UK Limited (continued)
Matters on which we are required to report by exception
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Except for the material misstatement described in the basis for qualified opinion on other matters prescribed by the Companies Act 2006 section of our report, in the light of the knowledge and understanding of the group and the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report and the Director's report.
In respect solely of the limitation on the scope of our work described in the basis for qualified opinion paragraph above:
• we have not obtained all the information and explanations that we considered necessary for the purposes
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 directors
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As explained more fully in the Director's responsibilities statement on page 7, 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 is 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 have no realistic alternative but to do so.
Page 11
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Independent auditors' report to the members of TP-Link UK Limited (continued)
Auditors' responsibilities for the audit of the financial statements
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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 an Auditors' report 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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the company's internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director.
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Conclude on the appropriateness of the director
's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Page 12
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Independent auditors' report to the members of TP-Link UK Limited (continued)
This report is made solely to the company's members
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 an Auditors' report 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 for our audit work, for this report, or for the opinions we have formed.
Peter Manser FCA DChA
(Senior statutory auditor)
for and on behalf of
Kreston Reeves LLP
Statutory Auditors
Chartered Accountants
London
15 March 2021
Page 13
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Consolidated statement of comprehensive income
For the year ended 31 December 2019
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Interest receivable and similar income
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Interest payable and expenses
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Profit for the financial year
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Currency translation differences
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Other comprehensive income
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Other comprehensive income for the year
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Total comprehensive income for the year
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Profit for the year attributable to:
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Owners of the parent company
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Total comprehensive income for the year attributable to:
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Owners of the parent company
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There were no recognised gains and losses for 2019 or 2018 other than those included in the consolidated statement of comprehensive income.
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The notes on pages 21 to 44 form part of these financial statements.
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Page 14
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TP-Link UK Limited
Registered number:
07205003
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Consolidated balance sheet
As at
31 December 2019
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 March 2021
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The notes on pages 21 to 44 form part of these financial statements.
Page 15
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TP-Link UK Limited
Registered number:
07205003
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Company balance sheet
As at
31 December 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Profit and loss account brought forward
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Profit and loss account carried forward
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on
12 March 2021
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Page 16
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Consolidated statement of changes in equity
For the year ended
31 December 2019
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|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences
|
|
|
|
|
|
|
|
Other comprehensive income for the year
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
|
|
|
Dividends: Equity capital
|
|
|
|
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|
|
Capitalisation/bonus issue
|
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|
|
|
|
|
|
|
|
|
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|
|
|
Total transactions with owners
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
The notes on pages 21 to 44 form part of these financial statements.
|
Page 17
|
Consolidated statement of changes in equity
For the year ended
31 December 2018
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Comprehensive income for the year
|
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|
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|
|
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Currency translation differences
|
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|
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|
Other comprehensive income for the year
|
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|
|
Total comprehensive income for the year
|
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Shares issued during the year
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Total transactions with owners
|
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|
The notes on pages 21 to 44 form part of these financial statements.
|
Page 18
|
Company statement of changes in equity
For the year ended
31 December 2019
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|
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Comprehensive income for the year
|
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|
|
|
Contributions by and distributions to owners
|
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Total transactions with owners
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|
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|
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|
|
Comprehensive income for the year
|
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|
|
|
|
|
|
Contributions by and distributions to owners
|
|
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|
Dividends: Equity capital
|
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|
Total transactions with owners
|
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|
The notes on pages 21 to 44 form part of these financial statements.
|
Page 19
|
Consolidated statement of cash flows
For the year ended 31 December 2019
Cash flows from operating activities
|
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|
Profit for the financial year
|
|
|
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|
Amortisation of intangible assets
|
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|
Depreciation of tangible assets
|
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|
Loss on disposal of tangible assets
|
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|
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Decrease/(increase) in stocks
|
|
|
(Increase)/decrease in debtors
|
|
|
Decrease/(increase) in amounts owed by groups
|
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|
(Decrease)/increase in creditors
|
|
|
(Decrease) in amounts owed to groups
|
|
|
Increase/(decrease) in provisions
|
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|
|
|
Net cash generated from operating activities
|
|
|
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|
Cash flows from investing activities
|
|
|
Purchase of intangible fixed assets
|
|
|
Purchase of tangible fixed assets
|
|
|
Sale of tangible fixed assets
|
|
|
|
|
|
Net cash from investing activities
|
|
|
Cash flows from financing activities
|
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Net cash used in financing activities
|
|
|
Net (decrease)/increase in cash and cash equivalents
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
Foreign exchange gains and losses
|
|
|
Cash and cash equivalents at the end of year
|
|
|
|
|
|
Cash and cash equivalents at the end of year comprise:
|
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Page 20
|
Notes to the financial statements
For the year ended 31 December 2019
TP-Link UK Limited (“the Company”) is a private company limited by shares and is incorporated in England with the registration number 07205003. The address of the registered office is Unit 2 & 3 Riverview, Cardiff Road, Reading, Berkshire RE1 8EW.
The company and its subsidiaries (together “the Group”) operate as wholesalers of network communication equipment. Further information on the activities of the group is included as part of the strategic report on pages 1 to 2.
2.
Accounting policies
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
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 (see note 3).
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.
For accounting periods on or after 1 January 2019 the amendments to FRS 102, as set out in the
triennial review published in December 2017, are mandatory to adopt. The adoption of these
amendments has no material impact on the financial statements of the group.
The presentation currency of the financial statements is Pounds Sterling.
The financial statements are rounded to the nearest thousand pound.
The following principal accounting policies have been applied:
Page 21
|
Notes to the financial statements
For the year ended 31 December 2019
2.
Accounting policies (continued)
The consolidated financial statements 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 the ultimate equity holders of the acquired subsidiary. The director has taken advantage of the option in FRS102 to account for these group reconstructions using the merger accounting method.
Under merger accounting the results and cash flows of all combining 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 occurred before the date of transition to FRS 102, being 01 April 2014.
The business activities, together with the factors likely to affects its future development, performance, and position are set out in the strategic report, in addition to a description of the group’s policies and procedures to manage their principal risks and uncertainties.
The group overall is in a strong net asset position and turnover £450M. This reflects continued demand for the product offering. The group has made a profit for the year due to an increased gross profit margin.
Assurances have been received from the parent undertaking and TP-Link International regarding the continuity of any further support that the group may require for the period of at least 12 months from the date of these financial statements. However, as with any company or group placing reliance on other group or related entities for financial support, the director acknowledges that there can be no certainty that this support will continue although, at the date of approval of these financial statements, he has no reason to believe that it will not do so.
Consequently, the director is confident that there will be sufficient funds to continue to meet liabilities as they fall due for 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.
While the impact of the Covid-19 virus has been assessed by the director, so far as reasonably possible, due to its unprecedented impact on the wider economy, it is difficult to evaluate with any certainty the potential outcomes on the group’s trade, its customers and suppliers. However, taking into consideration the UK Government’s response and the group’s planning, the director has a reasonable expectation that the group will continue in operational existence for the foreseeable future.
Page 22
|
Notes to the financial statements
For the year ended 31 December 2019
2.
Accounting policies (continued)
Revenue 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 is 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 revenue can be measured reliably;
∙
it is probable 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.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Fixtures, fittings and equipment
|
|
|
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 or loss.
Page 23
|
Notes to the financial statements
For the year ended 31 December 2019
2.
Accounting policies (continued)
Investments in subsidiaries comprise investments in share capital and funding provided to subsidiary companies that is not expected to be repaid in the short term and are accounted for at cost less any provision for impairment in value.
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 first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
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.
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 any 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.
Page 24
|
Notes to the financial statements
For the year ended 31 December 2019
2.
Accounting policies (continued)
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 the 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 a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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 profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's 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 realise the asset and settle the liability simultaneously.
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.
Page 25
|
Notes to the financial statements
For the year ended 31 December 2019
2.
Accounting policies (continued)
|
|
Foreign currency translation
|
Functional and presentation currency
The group'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 dates 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 profit and loss account 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.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
|
|
Operating leases: the group as lessee
|
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Defined contribution pension plan
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the group in independently administered funds.
Page 26
|
Notes to the financial statements
For the year ended 31 December 2019
2.
Accounting policies (continued)
Interest income is recognised in profit or loss using the effective interest method.
|
|
Provisions for liabilities
|
Provisions are made where an event has taken place that gives the group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the group becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.
|
|
Current and deferred taxation
|
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Page 27
|
Notes to the financial statements
For the year ended 31 December 2019
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
The preparation of the financial statements requires the director 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. The director considers that no impairment is required based on their knowledge of the subsidiary companies and the intentions of the owners and directors of the ultimate parent company to support trading in all subsidiaries as required. The amounts owed from subsidiary company undertakings have not been impaired as the director considers 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 director 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 consumer 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. See note 17 for the net carrying value of stocks and associated provision.
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 provisions is based on historical experience and other reasonable factors. See note 25.
Taxation
The deferred tax provision is based upon estimates of the availability of future taxable profits, the timing of the reversal of timing differences upon which the provision is based and the tax rates that will be in force at that time together with an assessment of the impact of future tax planning strategies. No deferred tax asset is recognised where it is uncertain that there is future taxable profits.
Page 28
|
Notes to the financial statements
For the year ended 31 December 2019
|
|
|
An analysis of turnover by class of business is as follows:
|
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Revenue discounts and rebates
|
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Revenue returns and allowances
|
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|
Analysis of turnover by country of destination:
|
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|
The operating profit is stated after charging:
|
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Depreciation of tangible fixed assets
|
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Amortisation of intangible assets
|
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Other operating lease rentals
|
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|
Fees payable to the group's auditor and its associates for the audit of the group's annual financial statements
|
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Page 29
|
Notes to the financial statements
For the year ended 31 December 2019
|
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|
Staff costs were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the director, during the year was as follows:
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Administration, distribution and sales staff
|
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The director, also deemed to be the key management personnel, is a full time executive of other wider group companies and did not receive remuneration for services provided to this group. It is not practicable to allocate the emoluments for other services.
|
|
Other interest receivable
|
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Interest payable and similar expenses
|
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Other loan interest payable
|
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Page 30
|
Notes to the financial statements
For the year ended 31 December 2019
|
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|
|
Current tax on profits for the year
|
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|
|
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Taxation on profit on ordinary activities
|
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|
Factors affecting tax charge for the year
|
|
The tax assessed for the year is lower than
(2018 - higher than)
the standard rate of corporation tax in the UK of 19%
(2018 -
19
%)
. The differences are explained below:
|
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Profit on ordinary activities before tax
|
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2018 - 19%)
|
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Permanent differences leading to an increase in taxation
|
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Total tax charge for the year
|
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|
Factors that may affect future tax charges
|
A considerable proportion of the group's activities are carried out in the United States of America. The US corporate tax rate was reduced from 35% to 21% with effect from 1 January 2018. As such, current and deferred tax impacts have been recognised at a rate of 21%.
The Chancellor announced in March 2021 that the an increase to the rate of corporation tax will apply for financial year 2023 onwards to 25%. This change has not been substantively enacted as yet.
|
Parent company profit for the year
|
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements. The profit after tax of the parent company for the year was £
8,851
(2018 -
£
18,098
).
Page 31
|
Notes to the financial statements
For the year ended 31 December 2019
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Foreign exchange movement
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Charge for the year on owned assets
|
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Foreign exchange movement
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Page 32
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Notes to the financial statements
For the year ended 31 December 2019
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Charge for the year on owned assets
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Adjustment to depreciation
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Page 33
|
Notes to the financial statements
For the year ended 31 December 2019
15.
Tangible fixed assets (continued)
|
|
Fixtures, fittings and equipment
|
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Charge for the year on owned assets
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Page 34
|
Notes to the financial statements
For the year ended 31 December 2019
|
|
Investments in subsidiary companies
|
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Foreign currency movement
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In the opinion of the director the value of these investments as at 31 December 2019 is not less than the aggregate amount in the balance sheet at that date as such they do not consider any impairment provision is required. Further information on this risk and the assessment of the director is included in note 3.
The director is satisfied the appropriate value will be received for amounts owed by related undertakings in due course and therefore no impairment is required to be made against carrying values. Further information on this risk and the assessment of the director is included in note 3.
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Page 35
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Notes to the financial statements
For the year ended 31 December 2019
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The following were subsidiary undertakings of the company:
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145 South State College Blvd. Suite 400, Brea, CA 92821
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Robert-Bosch-Straße 9,65719 Hofheim am Taunus
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Kutvirtova 339/5, Praha 5, 150 00
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88 Fulton Way, Richmond Hill, ON, Canada, L4B 1J5
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TP-Link Australia Pty Ltd
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Unit 4, 9-11 South Street, Rydalmere, NSW 2116, Australia
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TP-Link Polska SP. Z O.O.
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ul. Ozrowska 40/42, Duchnice 05-850, Poland
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TP-LINK Technologies South Africa (Pty) Ltd
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155 5th Street, Sandton, JHB, 2196
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2-9-1 Nishi Shimbashi Minato-ku, Tokyo PMO Nishi Shinbashi 8th Floor
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12th Floor, Yulchon Building, 24-1 Yeouido-dong, Yeongdeungpo-gu, Seoul
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13F., No.156, Section1, Zhongshan,Rd., Banciao District, New Taipei Country 220, Taiwan(ROC)
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Ukraine, 03057, Kiev, ul. Metallistov, 20, Office center VEDA, 2nd floor
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TP-LINK Networks Hellas Ltd
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33, Nireos Street, 19009 Rana, Greece
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TP-Link Portugal Unipessoal Lda*
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Avenida da Liverdade, n° 249-1°,1250-143 Lisboa, Portugal
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TP-Link Miami (otherwise known as Latin America)
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8200 NW, 41st Street, Suite 200, Doral, FL
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Forumvagen 14, 131 53 Nacka
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Str. Olari, nr 7A, et.5, sector 2, Bucharest, Romania
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245 Charcot Ave, San Jose CA, 95131
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TP-LINK Networks Hungary Kft.
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Budapest, Közraktár u. 30, 1093 Hungary
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TP-Link Research America Corp
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245 Charcot Ave. San Jose, CA 95131
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Page 36
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Notes to the financial statements
For the year ended 31 December 2019
Subsidiary undertakings (continued)
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C/ Quintanavides 17, Tercero E., 28050, Madrid
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B Via della Giustizia 10, Milano 20125
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C/ Quintanavides 17, Tercero E. CP 28050, Madrid
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Str. Olari, nr 7A, et.5, sector 2, Bucharest, Romania
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TP-Link Enterprises France SARL
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Bâtiment Grenat, 16-18 avenue Morane Saulnier 78140 Vélizy-Villacoublay
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*The results of TP-Link Portugal Unipessoal Lda have not been included in the consolidated group due to their immateriality to the group in 2018 and 2019.
The principal activity of all subsidiary undertakings is that of the design, manufacture and selling of wireless networking products.
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Raw materials and consumables
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Finished goods and goods for resale
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The difference between purchase price or production cost of stocks and their replacement cost is not material.
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Page 37
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Notes to the financial statements
For the year ended 31 December 2019
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Due after more than one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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The above amounts owed to group undertakings relate to the group's parent undertakings which do not form part of the consolidated group.
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Cash and cash equivalents
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During the prior year the company acquired investments in subsidiary undertakings totalling £24,230k.
Page 38
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Notes to the financial statements
For the year ended 31 December 2019
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Creditors: Amounts falling due within one year
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Amounts due to companies under common control
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Amounts owed to group undertakings
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Accruals and deferred income
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The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
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Details of security provided:
The terms of the loan funding from the company under common control are explained in the accounting policy for 'going concern' (note 2.3). The loans from the company under common control incur interest at 5%.
The amounts owed to the company under common control are in respect of normal trading activities. The amounts owed to group undertakings as shown in the group figures relate to companies outside the consolidated group.
Page 39
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Notes to the financial statements
For the year ended 31 December 2019
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 Director.
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. As noted in the section on funding and going concern on page 1 the group and company is funded by its operations and funding provided by a related party company owned by the owner of the parent company.
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.
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Charged to profit or loss
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Page 40
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Notes to the financial statements
For the year ended 31 December 2019
24.
Deferred taxation (continued)
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Accelerated capital allowances
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Charged to profit or loss
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Page 41
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Notes to the financial statements
For the year ended 31 December 2019
25.
Provisions (continued)
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Charged to profit or loss
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The warranty provision represents the guarantee of 3-5 years warranty for the defective products returned after their sale.
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Allotted, called up and fully paid
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81,950,886
(2018 -
81,950,886
)
Ordinary
shares of £
1.00
each
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Foreign exchange reserve
This reserve comprises translation differences arising from the translation of financial statements of the group's foreign entities into Pounds Sterling.
Notional share capital reserve
Under the principles of merger accounting, a notional share capital reserve has been recognised in prior accounting periods equivalent to the value of shares issued by the company as consideration for the acquisition of subsidiary undertakings.
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.
Profit and loss account
This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company’s shareholders.
Page 42
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Notes to the financial statements
For the year ended 31 December 2019
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Commitments under operating leases
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At 31 December 2019 the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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Sales with companies under common control - TP-Link International
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Purchases with companies under common control - TP-Link International
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Balance owing from companies under common control - TP-Link International
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Amounts owed to companies under common ownership - TP-Link International
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Interest due on loans with companies under common control - TP-Link International
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Transactions with fellow subsidiaries
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TP-Link International is deemed to be a related party due to having the same owner as Ivy Grove Limited, the ultimate parent company.
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Big Field International Limited is the group's immediate parent company.
The group's director considers that the group's ultimate parent company is Ivy Grove Limited, a company incorporated in the British Virgin Islands.
Page 43
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Notes to the financial statements
For the year ended 31 December 2019
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Post balance sheet events
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i) Subsequent to the year end, the company reduced the share capital by £31,000,000, on 21 October 2020, to £50,950,386.
ii) A group reorganisation took place on 1 October 2020, whereby the following subsidiaries were transferred out of the group to a company under common control:
TP-LINK Deutschland GmbH
TP-Link Espana S.L.U
TP-Link Italia S.R.L
TP-Link Enterprises France SARL
TP-Link Portugal Unipessoal Lda
TP-Link Polska SP. Z O.O.
TP-LINK Czech s.r.o.
TP-Link Romania
TP-Link ESC S.R.L.
TP-LINK Networks Hungary Kft.
iii) At the time of the approval of the financial statements the director continues to closely monitor the potential effects of the COVID-19 virus outbreaks on the group. The full impact of the pandemic in the world economies is yet to be seen, but the group will continue to mitigate the risk by following the UK Government guidelines and adapting and developing its own internal strategies.
Page 44
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