Company registration number 13652715 (England and Wales)
ADLINK EDGE COMPUTING LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
ADLINK EDGE COMPUTING LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
ADLINK EDGE COMPUTING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
Notes
£
£
Fixed assets
Tangible assets
4
3,040
Current assets
Debtors
5
335,308
Cash at bank and in hand
65,210
400,518
Creditors: amounts falling due within one year
6
(61,776)
Net current assets
338,742
Net assets
341,782
Capital and reserves
Called up share capital
7
500,000
Profit and loss reserves
(158,218)
Total equity
341,782
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 28 July 2023 and are signed on its behalf by:
E Waters
Director
Company Registration No. 13652715
ADLINK EDGE COMPUTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Adlink Edge Computing Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor The Honeycomb, The Watermark, Gateshead, Tyne & Wear, England, NE11 9SZ.
1.1
Reporting period
The financial statements cover the period from incorporation to 31 December 2022 which is in excess of one year. The company's accounting reference date was changed to align with that of its parent company.
1.2
Accounting convention
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 amounts 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
Thtrueese financial statements have been prepared on the going concern basis which relies on the continuing support of the company's parent company and other group companies. The company is ultimately a wholly owned subsidiary of ADLINK Technology Inc. (ADLINK) a company quoted on the Taiwan Stock Exchange.
The company has prepared a business plan to 2028 which shows stable trading and considerable headroom in our funding.
Without giving any guarantees ADLINK has indicated to the directors that it will provide further financial support should it be required. Consequently the directors have continued to prepare the financial statements on the going concern basis.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the hourly rates of the employees and the time charged to each assignment, subject to any contractual caps.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
IT equipment
25% 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.
ADLINK EDGE COMPUTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.6
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs 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 value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ADLINK EDGE COMPUTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Auditor's liability limitation agreement
The company has entered into a liability limitation agreement with Royce Peeling Green Limited, the statutory auditor for the period ended 31 December 2022. The proportionate liability agreement follows the standard terms in Appendix B to the FRC's June 2008 Guidance on Auditor Liability Agreements, and has been approved by the shareholders.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both periods.
3
Employees
The average monthly number of persons employed by the company during the period was:
2022
Number
Employees
9
Directors
3
Total
12
ADLINK EDGE COMPUTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 5 -
4
Tangible fixed assets
IT equipment etc
£
Cost
At 30 September 2021
Additions
3,649
At 31 December 2022
3,649
Depreciation and impairment
At 30 September 2021
Depreciation charged in the period
609
At 31 December 2022
609
Carrying amount
At 31 December 2022
3,040
5
Debtors
2022
Amounts falling due within one year:
£
Amounts owed by group undertakings
332,692
Other debtors
2,616
335,308
6
Creditors: amounts falling due within one year
2022
£
Amounts owed to group undertakings
24,615
Taxation and social security
12,301
Other creditors
24,860
61,776
7
Called up share capital
2022
2022
Ordinary share capital
Number
£
Issued and fully paid
Ordinary of £1 each
500,000
500,000
ADLINK EDGE COMPUTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
7
Called up share capital
(Continued)
- 6 -
The company was incorporated on 30 September 2021 with share capital of £1.
On 18 May 2022 share capital increased to £500,000 following the issue of 499,999 ordinary shares of £1 each for cash.
8
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 was unqualified.
Senior Statutory Auditor:
Martin Chatten
Statutory Auditor:
Royce Peeling Green Limited
9
Related party transactions
Transactions with related parties
During the period the company entered into the following transactions with related parties:
Services received
2022
£
Group companies not wholly owned by the ultimate parent company
203,403
2022
Amounts due to related parties
£
Group companies not wholly owned by the ultimate parent company
24,615
Other information
The company has taken advantage of the exemption in FRS 102 from the requirement to disclose transactions with the parent company and fellow wholly owned group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.
Services received mainly comprise management charges and recharges from Zettascale Technlogy Limited, a fellow subsidiary of ADLINK Technology Inc. but which is not wholly owned.
10
Parent company
The parent and ultimate parent company is ADLINK Technology Inc., a company incorporated and registered in Taiwan, whose registered office is 9F, No 166 Jian Yi Road, 235 Chungho City, Taipei, Taiwan. ADLINK Technology Inc. prepares consolidated financial statements and copies of these are available to the public on the company’s website as follows: http:// www.adlinktech.com/investor_relations/financial.