REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
PITACS LIMITED |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
First Floor Office |
34 Great Queen Street |
London |
WC2B 5AA |
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 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
5,758,309 | 4,678,633 |
1,154,107 | 2,470,468 |
Other operating income |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
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 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
PITACS LIMITED (REGISTERED NUMBER: 02505544) |
BALANCE SHEET |
31 DECEMBER 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
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 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Deferred tax | ( |
) |
Provision for liability |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
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 | ( |
) |
Amount withdrawn by directors | (167,843 | ) | 146,154 |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
23 |
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 |
Europe |
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 |
Social security costs |
Other pension costs |
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 |
31.12.22 | 31.12.21 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
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 |
Depreciation - owned assets |
Patents and licences amortisation |
Website development costs amortisation |
Computer software amortisation |
Auditors' remuneration |
Foreign exchange differences |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.22 | 31.12.21 |
£ | £ |
Trade finance discount charges |
Invoice discount charges |
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 |
Deferred tax | ( |
) |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2021 - |
Effects of: |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
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 |
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 |
Additions |
At 31 December 2022 |
AMORTISATION |
At 1 January 2022 |
Amortisation for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
10. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
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 |
DEPRECIATION |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
11. | STOCKS |
31.12.22 | 31.12.21 |
£ | £ |
Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
£ | £ |
Trade debtors |
Directors' current accounts | 3,231 | - |
Prepayments and accrued income |
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 |
Trade creditors |
Tax |
Deferred tax | 34,775 | 38,370 |
VAT | 1,676,553 | 3,084,788 |
Related party - Ultraheat Ltd |
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 |
Accrued Rebates |
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) |
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 |
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 |
Between one and five years |
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 |
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: | £ | £ |
Ordinary | 1 | 20,000 | 20,000 |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2022 |
Profit for the year |
At 31 December 2022 |
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 |
Depreciation charges |
Finance costs | 588,534 | 281,958 |
1,376,467 | 2,715,256 |
Decrease/(increase) in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
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 | ( |
) | 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. |