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REGISTERED NUMBER: 02505544 (England and Wales)






















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

PITACS LIMITED

PITACS LIMITED (REGISTERED NUMBER: 02505544)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022




Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 8

Income Statement 11

Other Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Financial Statements 16


PITACS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2022







DIRECTORS: Mr L Aci
Mr S Kalender





SECRETARY: Mr L Aci





REGISTERED OFFICE: Bradbourne Point
Bradbourne Drive
Tilbrook
Milton Keynes
Buckinghamshire
MK7 8AT





REGISTERED NUMBER: 02505544 (England and Wales)





AUDITORS: NYO Limited
First Floor Office
34 Great Queen Street
London
WC2B 5AA

PITACS LIMITED (REGISTERED NUMBER: 02505544)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their strategic report for the year ended 31 December 2022.

The company was established in 1990 in the UK as the national distributor of heating products, mainly steel panel radiators under Ultraheat brand. The company has introduced into UK market a large range of designer radiators and towel rails. In 1994 the company has opened electrical division and began distributing wide range of electrical and data cables into the UK market. In 2003, the Aeon brand has been launched which offers handmade, sculptural, and stylish stainless steel radiators. In 2006, Time LED brand was developed by Pitacs Limited which provides energy saving filament LED bulbs and fittings.

Pitacs Limited is now one of the largest distributors of heating products as well as the electrical cables in the UK and elsewhere, supplying over 10 countries across the world.

The main product lines are:

Ultraheat: Compact Radiators - steel panel convector radiators, designer steel radiators and towel rails

Aeon: Handmade stainless steel sculptural radiators and towel rails

Pitacs: Electrical and data cables

Time LED: Energy saving bulbs and fittings

Company's strategy is to become a leading national heating products' distributor brand based on three main elements:

1. Review the product ranges continually to ensure the products are up to date with technological advances and meet customers' expectations. Company continuously works on development of new products in order to extend the product range and enhance their offer.

2. Controlled distribution through two main channels: wholesale and retail. Management considers each new opportunity to ensure it is right for the brand and will deliver margin led growth.

3. Development of overseas markets. Company continues to manage growth in existing territories while considering new territories to expand.

REVIEW OF BUSINESS
The company's key financial and other performance indicators during the year were as follows:

Year End at 31.12.2022 Year End at 31.12.2021
£ £
Turnover 54,919,265 53,346,061
Total operating profit/loss 1,262,785 2,614,346
Average number of employees 94 95
The company's main revenue derives from the retail and wholesale cable sales and heating products such as radiators and towel radiators.

Turnover at year ended 31.12.2022 has increased by 3% in comparison with the turnover at 31.12.2021, the reason for slight increase is due to the cost of living crisis which UK has been experiencing since late 2021. Company has seen a 72% increase in turnover in 2021 due increased consumer spending in home improvements following Covid-19. Increased annual rate of inflation in 2022 affected the affordability of goods and services for households.

The gross profit margin for the company was 12.5% at Year End 31.12.22 (at Year End 31.12.2021: 13.4%). The reduced gross profit margin is due to the high rate of inflation which has impacted the prices on raw materials and household spending.

Profits before tax has decreased from £2,332,388 at Year End 31.12.2021 to £674,251 at Year End 31.12.2022.


PITACS LIMITED (REGISTERED NUMBER: 02505544)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

PRINCIPAL RISKS AND UNCERTAINTIES
The Board recognizes there are a number of risks and uncertainties facing the company. The Board has established a structured approach to identify, assess and manage these risks:

Issue Potential impact Mitigation
Strategic risks External events External events such as
economic recessions, political
instability, and global cost of
living crisis have the capacity to
disrupt supply chains, influence
customer demand, and directly
affect the company's financial
performance. The COVID-19
pandemic, for instance, had an
unexpected positive impact,
boosting sales due to increased
interest in DIY projects. On the
other hand, Brexit has
introduced uncertainties and
potential disruptions in trade,
affecting the movement of goods
and services between the United
Kingdom, Europe, and global
markets.
All factors affecting the global
stakeholders are monitored
closely on an ongoing basis to
ensure preparedness for
external events. This includes
vigilance in monitoring how
such events may impact supply
chains, customer demand, and
our financial performance. In
response to the dynamic nature
of these events, we emphasize
adaptability, with scenario
planning in place to anticipate
and react swiftly to different
challenges. We have
strengthened trade compliance
procedures, diversified supply
chain sources, and explored
market expansion
opportunities. These measures
collectively impact our ability
to navigate external events
effectively and maintain
long-term resilience.
Brand and reputational
risk
Our brand and reputation are
invaluable assets, vital to our
business success. Any adverse
actions or partnerships have the
potential to impact customer
trust and loyalty, resulting in
decreased sales and market
share. Furthermore, ongoing
litigations involving the
company pose a threat to our
reputation and brand image.
Negative customer reviews can
also impact our brand's integrity.
These factors pose a critical
need to carefully manage and
protect our brand and reputation,
as they are integral to our
long-term sustainability and
growth.
We prioritize meticulous due
diligence in choosing our
suppliers and customers,
stringent quality control
measures to maintain product
and service excellence, and
ongoing assessments to ensure
their alignment with our values.
Furthermore, we proactively
monitor customer feedback and
reviews, promptly addressing
concerns to maintain a positive
and reputable image in the
industry. These measures
present our commitment to
preserving trust, loyalty, and
our brand's integrity.

PITACS LIMITED (REGISTERED NUMBER: 02505544)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Operational
risks
Cost inflation Increased costs in raw materials,
labour, and operational expenses
may put pressure on our pricing
strategies and profitability place
substantial pressure on pricing
strategies, profit margins, and
overall profitability. The
ongoing cost of living crisis has
necessitated price increases for
products, potentially affecting
consumer spending and market
dynamics. This inflationary
pressure introduces uncertainty
into the company's financial
stability, emphasizing the need
for vigilant cost management
and strategic pricing to maintain
competitiveness and preserve
profit margins.
We continuously monitor
operational costs, seeking
opportunities for efficiency
improvements and exploring
alternative sourcing options to
counter inflationary pressures.
The company is committed to
maintaining competitive
pricing while preserving profit
margins, achieved through
careful pricing analysis and a
customer-centric approach. We
also place a strong emphasis on
value delivery to customers to
justify any necessary price
adjustments. These mitigation
measures collectively ensure
the company's ability to
navigate cost-related
challenges and maintain
long-term financial stability
and competitiveness.
People Our performance is linked to the
performance of our people and
particularly, to the leadership of
key individuals or those with
specialized skills. The loss of a
key individual whether at
management level or within a
specialist skill set could disrupt
daily operations,lead to a
deficiency in critical expertise,
and create a succession gap in
leadership. Such disruptions
could impact project timelines,
customer relationships, and
overall business continuity.
Additionally, the loss of
specialized expertise could
compromise our ability to
deliver high-quality products and
services. Managing people is
essential to ensure the stability
and effectiveness of our
operations.
We conduct regular talent
reviews and succession
planning to identify and nurture
internal talent, ensuring a
smooth transition in case of
personnel changes. Knowledge
transfer practices within teams
help preserve critical
institutional knowledge.
Additionally, we offer
competitive compensation
packages, invest in training and
development programs, and
foster an engaging work
culture. Incentives such
employee discounts, and
performance-based rewards
further motivate our
employees, ensuring that we
retain and empower our
workforce to drive the
company's success.

PITACS LIMITED (REGISTERED NUMBER: 02505544)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Financial risks Currency, interest and
credit risks
The company is exposed to
significant financial risks related
to currency exchange rate
fluctuations, interest rate
changes, and credit risk. Adverse
developments in these areas
could lead to substantial
financial implications, affecting
the company's profitability, cash
flow, and overall financial
stability. Currency exchange rate
fluctuations may result in
volatility in financial results,
while changes in interest rates
can impact borrowing costs and
investment returns. Additionally,
credit risk poses the potential for
losses related to counterparties
and suppliers, affecting the
company's financial health.
We maintain a robust financial
management strategy, which
includes the use of currency
hedging, interest rate risk
assessments, and diligent credit
risk evaluations. The
company places a strong
emphasis on continuous
monitoring of its financial
exposures, enabling it to
proactively adjust its financial
strategies and risk mitigation
measures in response to
changing circumstances.
Moreover, company currently
has invoice discounting
advance and trade payable
finance facilities with bank to
maintain a healthy cashflow
and liquidity of the business.

The company will concentrate on popular heating products to improve its profit margins throughout the following financial year.

ON BEHALF OF THE BOARD:





Mr S Kalender - Director


29 September 2023

PITACS LIMITED (REGISTERED NUMBER: 02505544)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of distributors of heating and electrical products.

DIVIDENDS
The company paid £Nil dividends (Year End 31.12.2021: £200,000) during the financial year.

FUTURE DEVELOPMENTS
The directors aim to maintain the management policies which have resulted in the substantial growth over last year. They consider that next year will show a further significant growth in sales and profits from continuing operations.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

Mr L Aci
Mr S Kalender

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations, the directors are also responsible for preparing a Strategic Report and Directors' Report that complies with that law and those regulations.

PITACS LIMITED (REGISTERED NUMBER: 02505544)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2022


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:



Mr S Kalender - Director


29 September 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PITACS LIMITED

Opinion
We have audited the financial statements of Pitacs Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PITACS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

We obtained an understanding of legal and regulatory framework that are applicable to the company including how the company is complying with these regulations by making enquiries of management and key personnel. We identified areas of laws and regulations specific to the client that could reasonably be expected to have a material effect on the financial statements which are Anti-Money Laundering Regulations, General Data Protection Regulations, Employment Rights Act 1996, The Electrical Equipment (Safety) Regulations 2016 and Provision and Use of Work Equipment Regulations 1998. We inspected the company's regulatory and legal correspondence file and discussed the policies and procedures regarding compliance with laws and regulations with the directors and other key personnel. We communicated the identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit. Engagement team collectively have the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. Through the audit procedures, we did not become aware of any actual or suspected non-compliance. Owing to the inherent limitations of an audit, there is unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PITACS LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Mr Niyazi Oztoprak (Senior Statutory Auditor)
for and on behalf of NYO Limited
First Floor Office
34 Great Queen Street
London
WC2B 5AA

29 September 2023


NYO Limited (Statutory Auditors)

PITACS LIMITED (REGISTERED NUMBER: 02505544)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022

31.12.22 31.12.21
Notes £    £    £    £   

TURNOVER 3 54,919,265 53,346,061

Cost of sales 48,006,849 46,196,960
GROSS PROFIT 6,912,416 7,149,101

Distribution costs 1,831,411 1,343,588
Administrative expenses 3,926,898 3,335,045
5,758,309 4,678,633
1,154,107 2,470,468

Other operating income 108,679 143,878
OPERATING PROFIT 5 1,262,786 2,614,346


Interest payable and similar expenses 6 588,534 281,958
PROFIT BEFORE TAXATION 674,252 2,332,388

Tax on profit 7 129,534 446,524
PROFIT FOR THE FINANCIAL YEAR 544,718 1,885,864

PITACS LIMITED (REGISTERED NUMBER: 02505544)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

31.12.22 31.12.21
Notes £    £   

PROFIT FOR THE YEAR 544,718 1,885,864


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

544,718

1,885,864

PITACS LIMITED (REGISTERED NUMBER: 02505544)

BALANCE SHEET
31 DECEMBER 2022

31.12.22 31.12.21
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 53,551 77,120
Tangible assets 10 273,458 296,546
327,009 373,666

CURRENT ASSETS
Stocks 11 18,649,429 24,281,634
Debtors 12 11,103,532 9,524,668
Cash at bank and in hand 197,684 387,354
29,950,645 34,193,656
CREDITORS
Amounts falling due within one year 13 21,012,222 25,902,998
NET CURRENT ASSETS 8,938,423 8,290,658
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,265,432

8,664,324

CREDITORS
Amounts falling due after more than one
year

14

(16,850

)

(35,460

)

PROVISIONS FOR LIABILITIES 18 (75,000 ) -
NET ASSETS 9,173,582 8,628,864

CAPITAL AND RESERVES
Called up share capital 19 20,000 20,000
Retained earnings 20 9,153,582 8,608,864
SHAREHOLDERS' FUNDS 9,173,582 8,628,864

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by:




Mr S Kalender - Director



Mr L Aci - Director


PITACS LIMITED (REGISTERED NUMBER: 02505544)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2021 20,000 6,923,000 6,943,000

Changes in equity
Dividends - (200,000 ) (200,000 )
Total comprehensive income - 1,885,864 1,885,864
Balance at 31 December 2021 20,000 8,608,864 8,628,864

Changes in equity
Total comprehensive income - 544,718 544,718
Balance at 31 December 2022 20,000 9,153,582 9,173,582

PITACS LIMITED (REGISTERED NUMBER: 02505544)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022

31.12.22 31.12.21
Notes £    £   
Cash flows from operating activities
Cash generated from operations 22 744,022 2,123,903
Interest paid (588,534 ) (281,958 )
Tax paid (452,929 ) 13,744
Deferred tax 3,587 (13,745 )
Provision for liability 75,000 -
Net cash from operating activities (218,854 ) 1,841,944

Cash flows from investing activities
Purchase of intangible fixed assets (4,081 ) (57,707 )
Purchase of tangible fixed assets (62,944 ) (128,682 )
Net cash from investing activities (67,025 ) (186,389 )

Cash flows from financing activities
Invoice discounting advances 239,355 1,500,936
Trade payable finance 37,832 (3,034,302 )
Capital repayments in year (13,135 ) 42,110
Amount withdrawn by directors (167,843 ) 146,154
Equity dividends paid - (200,000 )
Net cash from financing activities 96,209 (1,545,102 )

(Decrease)/increase in cash and cash equivalents (189,670 ) 110,453
Cash and cash equivalents at beginning of
year

23

387,354

276,901

Cash and cash equivalents at end of year 23 197,684 387,354

PITACS LIMITED (REGISTERED NUMBER: 02505544)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1. STATUTORY INFORMATION

Pitacs Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, and they have also been prepared on a going concern basis.

Turnover
Turnover represents net invoiced sales of goods, excluding value added tax. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT. The following criteria must be met before revenue is recognised.

Sale of goods
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on dispatch of goods.

Intangible fixed assets
The company capitalises expenditure incurred on registering patents, trade marks and designs, computer software and website development. Patents and trade marks expenditure is amortised over five years, computer software expenditure is amortised over four years and website development is amortised over five years being the directors estimate of the products' marketable life.
The carrying value of intangible assets is reviewed for impairment at the end of each year if events or changes in circumstances indicate the carrying value may not be recoverable.

Tangible fixed assets
Tangible assets are carried at its initial cost (also referred to as historical cost) less any accumulated depreciation and impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful
life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 20% on reducing balance
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Computer Equipment - 25% on straight line basis

Stocks
Stocks comprise goods purchased for resale and valued at the lower of cost and net realizable value, after making due allowance for obsolete and slow moving items. The cost model for accounting for stock is based on first in, first out (FIFO), it assumes the oldest stocks are sold first, so the cost value is the cost of the most recent stock.

Financial instruments
Financial instruments are classified and accounted for as either debt instruments or financial liabilities, according to the contractual arrangements entered into.

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

Current or deferred taxation assets and liabilities are not discounted.

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

PITACS LIMITED (REGISTERED NUMBER: 02505544)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

2. ACCOUNTING POLICIES - continued

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

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

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

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

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debt factoring
Company has retained significant benefits and risks of factored debts. Factored debts are represented as part of trade receivables and corresponding liability in respect of the proceeds received from the factoring company are shown within current liabilities.

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

31.12.22 31.12.21
£    £   
United Kingdom 54,693,548 53,141,108
Europe 225,717 204,953
54,919,265 53,346,061

PITACS LIMITED (REGISTERED NUMBER: 02505544)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

4. EMPLOYEES AND DIRECTORS
31.12.22 31.12.21
£    £   
Wages and salaries 3,100,021 2,620,663
Social security costs 275,434 221,143
Other pension costs 76,326 59,264
3,451,781 2,901,070

The average number of employees during the year was as follows:
31.12.22 31.12.21

Directors 2 2
Administration 17 21
Sales 22 24
Warehouse 53 48
94 95

31.12.22 31.12.21
£    £   
Directors' remuneration 103,206 101,536

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

Money purchase schemes 2 2

Key management personnel is comprised of above-mentioned directors, who controls and are involved in the day to day operations of the company. Pitacs Limited paid employer pension contributions to directors of £14,437.

5. OPERATING PROFIT

The operating profit is stated after charging:

31.12.22 31.12.21
£    £   
Hire of plant and machinery 64,200 30,143
Depreciation - owned assets 86,032 79,141
Patents and licences amortisation 205 204
Website development costs amortisation 2,545 2,273
Computer software amortisation 24,900 19,290
Auditors' remuneration 12,061 18,009
Foreign exchange differences 45,763 58,150

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.22 31.12.21
£    £   
Trade finance discount charges 525,239 221,282
Invoice discount charges 63,295 60,676
588,534 281,958

PITACS LIMITED (REGISTERED NUMBER: 02505544)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.22 31.12.21
£    £   
Current tax:
UK corporation tax 133,129 432,779

Deferred tax (3,595 ) 13,745
Tax on profit 129,534 446,524

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.22 31.12.21
£    £   
Profit before tax 674,252 2,332,388
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2021 - 19%)

128,108

443,154

Effects of:
Capital allowances in excess of depreciation - (10,375 )
Depreciation in excess of capital allowances 5,021 -

Deferred tax (3,595 ) 13,745

Total tax charge 129,534 446,524

8. DIVIDENDS
31.12.22 31.12.21
£    £   
Ordinary shares of 1 each
Final - 200,000

PITACS LIMITED (REGISTERED NUMBER: 02505544)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

9. INTANGIBLE FIXED ASSETS
Patents Website
and development Computer
licences costs software Totals
£    £    £    £   
COST
At 1 January 2022 21,916 12,725 154,876 189,517
Additions - - 4,081 4,081
At 31 December 2022 21,916 12,725 158,957 193,598
AMORTISATION
At 1 January 2022 21,404 4,012 86,981 112,397
Amortisation for year 205 2,545 24,900 27,650
At 31 December 2022 21,609 6,557 111,881 140,047
NET BOOK VALUE
At 31 December 2022 307 6,168 47,076 53,551
At 31 December 2021 512 8,713 67,895 77,120

10. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Computer
property machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 January 2022 437,327 318,018 352,769 115,192 1,223,306
Additions 20,300 37,598 1,902 3,144 62,944
At 31 December 2022 457,627 355,616 354,671 118,336 1,286,250
DEPRECIATION
At 1 January 2022 365,878 195,905 313,335 51,642 926,760
Charge for year 16,659 34,110 10,175 25,088 86,032
At 31 December 2022 382,537 230,015 323,510 76,730 1,012,792
NET BOOK VALUE
At 31 December 2022 75,090 125,601 31,161 41,606 273,458
At 31 December 2021 71,449 122,113 39,434 63,550 296,546

PITACS LIMITED (REGISTERED NUMBER: 02505544)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

10. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1 January 2022
and 31 December 2022 28,392
DEPRECIATION
At 1 January 2022
and 31 December 2022 4,140
NET BOOK VALUE
At 31 December 2022 24,252
At 31 December 2021 24,252

11. STOCKS
31.12.22 31.12.21
£    £   
Stocks 18,649,429 24,281,634

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£    £   
Trade debtors 9,749,221 8,367,670
Directors' current accounts 3,231 -
Prepayments and accrued income 1,351,080 1,156,998
11,103,532 9,524,668

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£    £   
Other loans (see note 15) 10,285,087 10,007,909
Hire purchase contracts (see note 16) 28,135 22,660
Trade creditors 4,601,947 8,262,812
Tax 209,698 525,903
Deferred tax 34,775 38,370
VAT 1,676,553 3,084,788
Related party - Ultraheat Ltd 240,671 240,671
Pension liability and DWP 15,377 12,887
Other creditors 2,501,348 2,485,810
Social security & other taxes 64,053 57,303
Directors' current accounts 3,450 168,062
Accrued expenses 45,960 78,440
Accrued Rebates 1,305,168 917,383
21,012,222 25,902,998

PITACS LIMITED (REGISTERED NUMBER: 02505544)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.22 31.12.21
£    £   
Hire purchase contracts (see note 16) 16,850 35,460

15. LOANS

An analysis of the maturity of loans is given below:

31.12.22 31.12.21
£    £   
Amounts falling due within one year or on demand:
Trade payable finance 1,993,155 1,955,323
Invoice discounting advances 8,291,932 8,052,586
10,285,087 10,007,909

16. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

31.12.22 31.12.21
£    £   
Net obligations repayable:
Within one year 28,135 22,660
Between one and five years 16,850 35,460
44,985 58,120

17. SECURED DEBTS

The following secured debts are included within creditors:

31.12.22 31.12.21
£    £   
Hire purchase contracts 44,985 58,120
Trade payable finance 1,993,155 1,955,323
Invoice discounting advances 8,291,932 8,052,586
10,330,072 10,066,029

18. PROVISIONS FOR LIABILITIES

Deferred Tax

The deferred tax at start of this year is £38,370, the deferred tax reduction during the year is £3,595, the closing balance of deferred tax is £34,775 at 31/12/2022.

PITACS LIMITED (REGISTERED NUMBER: 02505544)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.22 31.12.21
value: £    £   
20,000 Ordinary 1 20,000 20,000

20. RESERVES
Retained
earnings
£   

At 1 January 2022 8,608,864
Profit for the year 544,718
At 31 December 2022 9,153,582

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The interests on director's advances and credits are 0% per annum.

22. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.22 31.12.21
£    £   
Profit before taxation 674,252 2,332,388
Depreciation charges 113,681 100,910
Finance costs 588,534 281,958
1,376,467 2,715,256
Decrease/(increase) in stocks 5,632,205 (13,198,045 )
(Increase)/decrease in trade and other debtors (1,575,633 ) 1,514,216
(Decrease)/increase in trade and other creditors (4,689,017 ) 11,092,476
Cash generated from operations 744,022 2,123,903

23. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 197,684 387,354
Year ended 31 December 2021
31.12.21 1.1.21
£    £   
Cash and cash equivalents 387,354 276,901


PITACS LIMITED (REGISTERED NUMBER: 02505544)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2022

24. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.22 Cash flow At 31.12.22
£    £    £   
Net cash
Cash at bank and in hand 387,354 (189,670 ) 197,684
387,354 (189,670 ) 197,684
Debt
Finance leases (58,120 ) 13,135 (44,985 )
Debts falling due within 1 year (10,007,909 ) (277,178 ) (10,285,087 )
(10,066,029 ) (264,043 ) (10,330,072 )
Total (9,678,675 ) (453,713 ) (10,132,388 )

25. DETAILS OF SECURITY HELD WITH BANK

General letter of Pledge dated 16 December 2011.
Change over Contract Monies dated 12 March 2013.
Unlimited Multilateral Guarantee dated 9 August 2011 given by Pitacs Limited & SNL Investments Limited.
Debenture including Fixed Charge over all present freehold and leasehold property; first Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; the First Floating Charge over all assets and undertaking both present and future dated 10 August 2011.

26. DEBENTURE AND CROSS GUARANTEE

Debenture and cross guarantee held with Barclays Bank PLC dated 30th June 2021.