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REGISTERED NUMBER: 07681824 (England and Wales)















Strategic Report, Report of the Director and

Financial Statements for the Year Ended 30 June 2023

for

Pinnacle Electrical Supplies Ltd

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)






Contents of the Financial Statements
for the Year Ended 30 June 2023




Page

Company Information 1

Strategic Report 2

Report of the Director 4

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


Pinnacle Electrical Supplies Ltd

Company Information
for the Year Ended 30 June 2023







DIRECTOR: A S Knight



REGISTERED OFFICE: Unit 4
Turbine Road
Turbine Business Park
Birkenhead
Merseyside
CH41 9BA



REGISTERED NUMBER: 07681824 (England and Wales)



SENIOR STATUTORY
AUDITOR:
Michael Forshaw



AUDITORS: Haines Watts
Statutory Auditor
3rd Floor Pacific Chambers
11-13 Victoria Street
Liverpool
Merseyside
L2 5QQ

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Strategic Report
for the Year Ended 30 June 2023

The director presents his strategic report for the year ended 30 June 2023.

Principal activities
The principal activity of the Company during the year was the distribution of electrical components and supplies.

REVIEW OF BUSINESS
Sales and gross margin for the 12-month period to June 2023 were broadly in line with the previous year. Overheads were higher than the prior year as the company invested in additional staff, in finance and sales particularly, to support its future growth plans. Notwithstanding the increase in overheads, and payment of the dividend cash generation was healthy enabling a £575k reduction in invoice finance indebtedness.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the Company's strategy are subject to a number of risks that are set out below:

Trade receivables
The company insures all trade receivables. Trading in excess of insured limits is approved at board level.

Cost Price Fluctuations
The company is exposed to fluctuation in cost prices from suppliers, often driven by exchange rate fluctuations and supply side bottle necks, as during the Covid pandemic. All participants in the UK electrical distribution sector are exposed to the same risks. Furthermore, prices to customers are set by a discount off the standard trade price. Customers, in general, understand that prices move in line with changes in the trade price of goods.

Supplier failure
As a distributor, the company is exposed to the failure or closure of an OEM supplier. The group has access to alternative suppliers for all its key product lines.

Interest rates
The company is exposed to changes in the UK Base Rate as all our banking facilities are based on a margin over the UK bank base rate. Notwithstanding interest rates at a cyclical high, interest cover for the 12 months to June 2023 was a healthy 5.5 times.

Financial Liquidity
The company may need access to short term funds to satisfy working capital requirements. The company maintains a committed invoice finance facility significantly in excess of planned requirements.

Information Technology Systems
Maintaining accurate product and customer records are critical to be able to process customer orders accurately and efficiently. The company uses third party software in all areas. IT risks, including cyber and ransom attacks are reviewed by the board with the help of an external IT consultant. IT security is continually monitored and upgraded including training for staff to eliminate, as far as possible, elementary security risks.


Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Strategic Report
for the Year Ended 30 June 2023

SECTION 172(1) STATEMENT
The directors consider that they have acted in a manner that is most likely to promote the success of the group for the benefit of all shareholders, and in doing so, have had regard to all the stakeholders and matters set down in section 172 of the Companies Act 2006.
They key stakeholders and method of engagement have been identified as follows:

Shareholders - the company provides regular monthly reports to its shareholders along with the annual budget and year end audited results.

Employees - effective two-way communication with our staff is a priority.

Customers - understanding our customers and fulfilling their needs is a key differentiator for Pinnacle.

Suppliers - our outbound service to our customers can never be better than our inbound supply. Building long-term mutually beneficial relationships with suppliers is a key component of our strategy.

FUTURE DEVELOPMENTS
We intend to develop and grow the business by

- Continuing to focus on organic growth through increased product lines and acquiring new customers

- Maintaining tight control over operating costs so that increases in sales drive an improvement in operating margins.

- Using surplus cash generated to pay down debt.

KEY PERFORMANCE INDICATORS ("KPIS")
The following KPIs are used to monitor performance:

- Sales and sales growth
- % Gross profit : sales
- % Operating profit : sales
- Days working capital employed : 3 month average sales

OUTLOOK
The impact of high interest rates over an extended period, and likely to continue through 2024, suggests that the economy will continue to struggle in the year ahead. The construction sector is already showing signs of weakness with insolvencies on the increase. We have been successful in winning new customers which will be the key driver of organic growth along with our push into renewable energy products.

ON BEHALF OF THE BOARD:





A S Knight - Director


12 March 2024

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Report of the Director
for the Year Ended 30 June 2023

The director presents his report with the financial statements of the company for the year ended 30 June 2023.

DIVIDENDS
The director recommends a final dividend of £9,790 per share. No further dividend payments will be made until all bank loans have been repaid.

DIRECTOR
A S Knight held office during the whole of the period from 1 July 2022 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is 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 he 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.

AUDITORS
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A S Knight - Director


12 March 2024

Report of the Independent Auditors to the Members of
Pinnacle Electrical Supplies Ltd

Opinion
We have audited the financial statements of Pinnacle Electrical Supplies Ltd (the 'company') for the year ended 30 June 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 30 June 2023 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Pinnacle Electrical Supplies Ltd


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 Director.

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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect
fraud;
- Understanding how those charged with governance considered and addressed the potential for override of
controls or other inappropriate influence over the financial reporting process;
- Reviewing financial statements disclosures and testing to supporting documentation to assess compliance with
applicable law and regulations;
- Challenging assumptions and judgements made by management in its significant accounting estimates;
- Identifying and testing journal entries, in particular any journal entries posted with unusual account
combinations.

Our audit did not identify any significant matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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
Pinnacle Electrical Supplies Ltd


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.




Michael Forshaw (Senior Statutory Auditor)
for and on behalf of Haines Watts
Statutory Auditor
3rd Floor Pacific Chambers
11-13 Victoria Street
Liverpool
Merseyside
L2 5QQ

12 March 2024

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Statement of Comprehensive Income
for the Year Ended 30 June 2023

30.6.23 30.6.22
Notes £ £

TURNOVER 11,936,000 11,865,850

Cost of sales 9,344,941 9,350,645
GROSS PROFIT 2,591,059 2,515,205

Administrative expenses 1,861,680 1,540,660
729,379 974,545

Other operating income - 111,102
OPERATING PROFIT 4 729,379 1,085,647

Related party write off 6 - 350,000
729,379 735,647


Interest payable and similar expenses 7 132,344 73,141
PROFIT BEFORE TAXATION 597,035 662,506

Tax on profit 8 145,053 207,084
PROFIT FOR THE FINANCIAL YEAR 451,982 455,422

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

451,982

455,422

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Balance Sheet
30 June 2023

30.6.23 30.6.22
Notes £ £ £ £
FIXED ASSETS
Intangible assets 10 2 3,340
Tangible assets 11 222,664 86,283
222,666 89,623

CURRENT ASSETS
Stocks 12 1,515,471 1,664,688
Debtors 13 4,120,523 4,689,316
Cash at bank 252,578 350,175
5,888,572 6,704,179
CREDITORS
Amounts falling due within one year 14 4,554,319 4,826,733
NET CURRENT ASSETS 1,334,253 1,877,446
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,556,919

1,967,069

CREDITORS
Amounts falling due after more than one
year

15

(217,823

)

(106,555

)

PROVISIONS FOR LIABILITIES 19 (19,150 ) (13,550 )
NET ASSETS 1,319,946 1,846,964

CAPITAL AND RESERVES
Called up share capital 20 100 100
Retained earnings 21 1,319,846 1,846,864
SHAREHOLDERS' FUNDS 1,319,946 1,846,964

The financial statements were approved by the director and authorised for issue on 12 March 2024 and were signed by:





A S Knight - Director


Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Statement of Changes in Equity
for the Year Ended 30 June 2023

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 July 2021 100 1,626,089 1,626,189

Changes in equity
Dividends - (234,647 ) (234,647 )
Total comprehensive income - 455,422 455,422
Balance at 30 June 2022 100 1,846,864 1,846,964

Changes in equity
Dividends - (979,000 ) (979,000 )
Total comprehensive income - 451,982 451,982
Balance at 30 June 2023 100 1,319,846 1,319,946

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements
for the Year Ended 30 June 2023

1. STATUTORY INFORMATION

Pinnacle Electrical Supplies Ltd 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.

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 £.

Financial Reporting Standard 102 - reduced disclosure exemptions
This company is a qualifying entity for the purposes of FRS 102, being a member of group where the parent of that group prepares publically available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- the requirements of Section 7 Statement of Cash Flows;
- the requirements of paragraph 33.7, in relation to disclosure of remuneration of key management
personnel

The financial statements of the company are consolidated in the financial statements of Gipfel Electrical Holdings Limited. These consolidated financial statements are available from the registered office, Unit 4 Turbine Road, Wirral, Merseyside, England, CH41 9BA.

Significant judgements and estimates
There are no significant judgements that have had a significant effect on amounts recognised in the financial statements.

Turnover
Turnover represents net invoiced sales from the supply of electrical equipment and parts and is measured at the fair value of consideration received or receivable, value added tax and other sales taxes. Turnover is recognised as the goods are provided.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets
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.

Plant and machinery- 25% on cost
Fixtures and fittings- 25% on cost
Motor vehicles- 20% to 25% on cost
Computer equipment - 25% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value.

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
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 trade, group and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at market rate of interest.

Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date.

Basic financial liabilities
Basic financial liabilities, including trade, group and other creditors and other borrowings are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when he company's contractual obligations expire or are discharge or cancelled.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

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.

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

2. ACCOUNTING POLICIES - continued

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.

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.

3. EMPLOYEES AND DIRECTORS
30.6.23 30.6.22
£ £
Wages and salaries 946,793 761,833
Social security costs 96,593 75,128
Other pension costs 136,155 87,828
1,179,541 924,789

The average number of employees during the year was as follows:
30.6.23 30.6.22

Office and warehouse 28 25

30.6.23 30.6.22
£ £
Director's remuneration 30,420 22,198
Director's pension contributions to money purchase schemes 42,102 73,959

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.06.2330.06.22
££
Depreciation - owned assets27,78523,054
Depreciation - assets on hire purchase contracts13,09310,893
Computer software amortisation3,3383,340
Government grants-(22,102)

5. AUDITORS' REMUNERATION
30.6.23 30.6.22
£ £
Fees payable to the company's auditors for the audit of the company's
financial statements

8,000

8,000

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

6. EXCEPTIONAL ITEMS

30.6.2330.6.22

££
Related party write off-350,000

Exceptional costs of £nil (2022: £350,000) relates to a loan write off with Pinnacle Commercial Property Limited.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
30.6.23 30.6.22
£ £
Bank loan interest 3,639 2,266
Invoice finance interest 122,678 61,192
Hire purchase 6,027 9,683
132,344 73,141

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30.6.23 30.6.22
£ £
Current tax:
UK corporation tax 139,453 198,860

Deferred tax 5,600 8,224
Tax on profit 145,053 207,084

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:

30.6.23 30.6.22
£ £
Profit before tax 597,035 662,506
Profit multiplied by the standard rate of corporation tax in the UK of
20.500% (2022 - 19%)

122,392

125,876

Effects of:
Expenses not deductible for tax purposes 22,550 80,249
Capital allowances in excess of depreciation (5,489 ) (7,265 )
restatement
Deferred tax 5,600 8,224

Total tax charge 145,053 207,084

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

9. DIVIDENDS
30.6.23 30.6.22
£ £
Ordinary shares of 1 each
Final 979,000 234,647

10. INTANGIBLE FIXED ASSETS
Computer
software
£
COST
At 1 July 2022
and 30 June 2023 16,700
AMORTISATION
At 1 July 2022 13,360
Amortisation for year 3,338
At 30 June 2023 16,698
NET BOOK VALUE
At 30 June 2023 2
At 30 June 2022 3,340

11. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£ £ £ £ £
COST
At 1 July 2022 43,896 206,898 177,615 10,740 439,149
Additions 427 3,410 173,239 183 177,259
At 30 June 2023 44,323 210,308 350,854 10,923 616,408
DEPRECIATION
At 1 July 2022 42,844 167,814 131,565 10,643 352,866
Charge for year 745 13,968 26,032 133 40,878
At 30 June 2023 43,589 181,782 157,597 10,776 393,744
NET BOOK VALUE
At 30 June 2023 734 28,526 193,257 147 222,664
At 30 June 2022 1,052 39,084 46,050 97 86,283

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

11. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£
COST
At 1 July 2022 72,498
Additions 173,239
At 30 June 2023 245,737
DEPRECIATION
At 1 July 2022 26,449
Charge for year 13,093
At 30 June 2023 39,542
NET BOOK VALUE
At 30 June 2023 206,195
At 30 June 2022 46,049

12. STOCKS
30.6.23 30.6.22
£ £
Stocks 1,515,471 1,664,688

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.23 30.6.22
£ £
Trade debtors 2,602,301 2,954,512
Amounts owed by group undertakings 948,112 1,459,488
Accrued income 258,549 207,746
Prepayments 311,561 67,570
4,120,523 4,689,316

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.23 30.6.22
£ £
Bank loans and overdrafts (see note 16) 19,998 20,004
Hire purchase contracts (see note 17) 50,319 19,531
Trade creditors 1,859,415 2,127,682
Amounts owed to group undertakings 728,406 263,213
Tax 121,583 174,220
Social security and other taxes 41,407 104,215
Other creditors 71,741 46,959
Invoice Financing 1,316,345 1,891,812
Accruals and deferred income 345,105 179,097
4,554,319 4,826,733

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.6.23 30.6.22
£ £
Bank loans (see note 16) 39,997 59,992
Hire purchase contracts (see note 17) 177,826 46,563
217,823 106,555

16. LOANS

An analysis of the maturity of loans is given below:

30.6.23 30.6.22
£ £
Amounts falling due within one year or on demand:
Bank loans 19,998 20,004

Amounts falling due between one and two years:
Bank loans - 1-2 years 39,997 59,992

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
30.6.23 30.6.22
£ £
Net obligations repayable:
Within one year 50,319 19,531
Between one and five years 177,826 46,563
228,145 66,094

Non-cancellable
operating leases
30.6.23 30.6.22
£ £
Within one year - 50,000
Between one and five years - 200,000
- 250,000

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

18. SECURED DEBTS

The following secured debts are included within creditors:

30.6.23 30.6.22
£ £
Hire purchase contracts 228,145 66,094
Invoice financing 1,316,345 1,891,812
1,544,490 1,957,906

Hire purchase liabilities are secured against the assets to which they relate. Arbuthnot Commercial Asset Based Lending Limited holds a Fixed Charge over the intellectual property and book debts against the name of the company; and Floating Charge over all property or undertaking of the company dated 6 April 2022. This covers all existing and future liabilities across the Pinnacle Group.

19. PROVISIONS FOR LIABILITIES
30.6.23 30.6.22
£ £
Deferred tax 19,150 13,550

Deferred tax
£
Balance at 1 July 2022 13,550
Provided during year 5,600
Balance at 30 June 2023 19,150

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.23 30.6.22
value: £ £
100 Ordinary 1 100 100

The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.

21. RESERVES
Retained
earnings
£

At 1 July 2022 1,846,864
Profit for the year 451,982
Dividends (979,000 )
At 30 June 2023 1,319,846

Retained earnings are the cumulative profit and loss, net of distribution to owners.

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

22. PENSION COMMITMENTS

A defined contribution pension scheme is operated by the company. The assets of the scheme are held separately from those of the company in an independently administered fund. At 30 June 2023 pension contributions of £3,666 (2022: £2,538) were payable and included within other creditors.

23. RELATED PARTY DISCLOSURES

Included in debtors at the year end is an amount of £399,615 (2022: £394,827) owed from Pinnacle Plumbing & Heating Supplies Limited. Also included in debtors at the year end is an amount of £526,999 (2022: £1,064,661) owed from Gipfel Electrical Holdings Ltd.

Included in creditors at the year end is an amount of £475,523 (2022: £263,213) owing to Pinnacle Electrical Supplies (Bolton) Limited.

As the loans are repayable on demand no interest has been charged.

24. ULTIMATE CONTROLLING PARTY

The company is a subsidiary undertaking of Pinnacle UK Group Limited, a company registered in England and Wales.

Pinnacle UK Group Limited is the immediate parent company of Pinnacle Electrical Supplies Ltd

For the year ended 30 June 2023, the parent of the smallest group for which consolidated accounts are drawn up of which the small entity is a member is Gipfel Electrical Holdings Limited. Copies of the group accounts are available from Unit 4 Turbine Road, Wirral, Merseyside, England, CH41 9BA.

The ultimate controlling party is Gipfel Electrical Holdings Limited.