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REGISTERED NUMBER: 08730014 (England and Wales)














Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2023

for

Impulse Corporation Ltd

Impulse Corporation Ltd (Registered number: 08730014)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Consolidated Profit and Loss Account 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 17


Impulse Corporation Ltd

Company Information
for the Year Ended 31 December 2023







DIRECTORS: Mr C Stone
Mr C J Wright
Mrs N Duttine
Mrs M S Diaz-Stone





SECRETARY: Mr C Stone





REGISTERED OFFICE: Unit 1
Beata Road
Chesterton
Newcasle-under-Lyme
Staffordshire
ST5 7UT





REGISTERED NUMBER: 08730014 (England and Wales)





AUDITORS: Thompson Wright Limited
Chartered Accountants
and Statutory Auditors
Ebenezer House
Ryecroft
Newcastle under Lyme
Staffordshire
ST5 2BE

Impulse Corporation Ltd (Registered number: 08730014)

Group Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

REVIEW OF BUSINESS
The Directors are pleased to present our strategic report outlining our group's performance, achievements, challenges, and future strategies in alignment with our mission, and core values.

Our mission is to combine industry insight with technology know-how to design, build, and supply outstanding computing, control, and communication solutions for demanding environments.

Over the past year, our group celebrated 30 years in business and remained steadfast in our commitment to innovation, market expansion, customer satisfaction, and operational efficiency. Through strategic supply chain relationships and investment in research and development, we have supported several pioneering customer projects. Simultaneously, our proactive approach to diversifying into new technologies has resulted in tangible gains, evident in increased market share and penetration in the Edge Computing and Edge AI markets. We continued pursing our goal of being a leading player in Embedded and Industrial Computing market and will continue to support our customers through the ongoing convergence of information and operational technology.

Upholding a customer-centric ethos, we have continuously refined our service delivery and tailored solutions to meet evolving customer needs, thereby bolstering customer satisfaction. Furthermore, our relentless pursuit of operational excellence has seen us streamline processes, leverage technology-driven solutions, and foster a culture of continuous improvement, leading to enhanced operational efficiency and agility across the organisation.

FINANCIALS
The group continued to see increased revenue and improved GPM% and NPM% figures in 2023 over those in 2022. Focus and continued revenue growth in higher margin system design and assembly business attributed to the increase in margins as well as enhancing our FX strategy and introducing further cost control measures across the main overheads of the group and mitigating, where possible market driven direct and indirect cost increases.

Liquidity increased in 2023 as increased revenue improved our cash position whilst stock levels were re-adjusted as we came out of the IC shortage which affected the technology industry in 2021 and 2022 and early 2023.

Management use a range of performance measures to monitor and manage the business, including:

2023 2022
Gross profit margin (GPM%) 26.1% 25.3%
Net profit margin (NPM%) 15.9% 17.1%
Debtor days 48 58
Creditor days 23 33
Stock turnover days 67 76


PRINCIPAL RISKS AND UNCERTAINTIES
In the face of market volatility, characterised by an uncertain economic landscape and geopolitical tensions, our business operations and growth prospects face ongoing challenges. We have seen increased operational outlays throughout the current financial year with increases in energy charges, product pricing and shipping costs.

Additionally, amidst the growing complexity of cyber threats, safeguarding our data and digital assets remains paramount. With ongoing investment scheduled for the current financial year to shield against potential breaches and disruptions.

These challenges underscore the importance of robust risk management strategies and a proactive approach to address evolving threats in our operating environment.


Impulse Corporation Ltd (Registered number: 08730014)

Group Strategic Report
for the Year Ended 31 December 2023

FUTURE STRATEGIES
Our future strategies are anchored in driving innovation leadership, expanding market presence, prioritising sustainability initiatives, embracing digital transformation, and fostering talent development.

We remain committed to fostering a culture of innovation by leveraging our team's expertise, adopting emerging technologies and obtaining customer insights to pioneer next-generation products, solutions, and services. Concurrently, we aim to broaden our footprint in high-growth markets and segments while diversifying our product portfolio to better cater to evolving customer needs and preferences.

Embracing sustainability as a core pillar of our business, we will further integrate environmental, social, and governance (ESG) considerations into our practices, with a specific focus on reducing our carbon footprint. Furthermore, we are poised to embrace ongoing investment in digitalisation across all facets of our operations, from sales and marketing to supply chain management and customer service, to bolster efficiency, agility, and competitiveness in a rapidly evolving landscape.

In conclusion, despite the challenges posed by the external environment, our companies remain resilient and well-positioned for sustainable growth. By staying true to our mission, and core values, and executing our strategic initiatives with discipline and agility, we are confident in our ability to create long-term value for our shareholders, customers, employees, and society at large.

ON BEHALF OF THE BOARD:





Mr C J Wright - Director


23 April 2024

Impulse Corporation Ltd (Registered number: 08730014)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 743,882 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mr C Stone
Mr C J Wright
Mrs N Duttine
Mrs M S Diaz-Stone

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Thompson Wright Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr C J Wright - Director


23 April 2024

Report of the Independent Auditors to the Members of
Impulse Corporation Ltd

Opinion
We have audited the financial statements of Impulse Corporation Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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
Impulse Corporation Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of 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 four, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Impulse Corporation Ltd


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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the technology industry;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, other industry specific accreditations and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Report of the Independent Auditors to the Members of
Impulse Corporation Ltd


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.

Other matters
The prior period figures are unaudited, although, this does not relieve ourselves from the responsibility to obtain sufficient and appropriate audit evidence on the opening balances.

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.




Jeremy Bostock BA (Hons) BFP FCA (Senior Statutory Auditor)
for and on behalf of Thompson Wright Limited
Chartered Accountants
and Statutory Auditors
Ebenezer House
Ryecroft
Newcastle under Lyme
Staffordshire
ST5 2BE

23 April 2024

Impulse Corporation Ltd (Registered number: 08730014)

Consolidated Profit and Loss Account
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 3 13,210,716 12,410,927

Cost of sales 9,765,664 9,266,158
GROSS PROFIT 3,445,052 3,144,769

Administrative expenses 1,384,370 1,123,310
2,060,682 2,021,459

Other operating income 31,079 71,938
OPERATING PROFIT 5 2,091,761 2,093,397

Interest receivable and similar income 16,977 23,373
2,108,738 2,116,770

Interest payable and similar expenses 6 6,145 -
PROFIT BEFORE TAXATION 2,102,593 2,116,770

Tax on profit 7 395,585 251,679
PROFIT FOR THE FINANCIAL YEAR 1,707,008 1,865,091
Profit attributable to:
Owners of the parent 1,538,345 1,712,385
Non-controlling interests 168,663 152,706
1,707,008 1,865,091

Impulse Corporation Ltd (Registered number: 08730014)

Consolidated Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,707,008 1,865,091


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,707,008 1,865,091

Total comprehensive income attributable to:
Owners of the parent 1,538,344 1,712,385
Non-controlling interests 168,664 152,706
1,707,008 1,865,091

Impulse Corporation Ltd (Registered number: 08730014)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 (65,610 ) (131,221 )
Tangible assets 11 331,295 485,307
Investments 12 - -
265,685 354,086

CURRENT ASSETS
Stocks 13 1,798,556 1,935,273
Debtors 14 2,201,682 2,495,051
Cash at bank and in hand 2,795,558 1,967,363
6,795,796 6,397,687
CREDITORS
Amounts falling due within one year 15 1,109,505 1,665,958
NET CURRENT ASSETS 5,686,291 4,731,729
TOTAL ASSETS LESS CURRENT LIABILITIES 5,951,976 5,085,815

CREDITORS
Amounts falling due after more than one year 16 (41,617 ) -

PROVISIONS FOR LIABILITIES 18 (70,850 ) (38,433 )
NET ASSETS 5,839,509 5,047,382

CAPITAL AND RESERVES
Called up share capital 19 212 212
Share premium 20 11,995 11,995
Capital redemption reserve 20 45 45
Retained earnings 20 6,192,977 5,398,514
SHAREHOLDERS' FUNDS 6,205,229 5,410,766

NON-CONTROLLING INTERESTS (365,720 ) (363,384 )
TOTAL EQUITY 5,839,509 5,047,382

The financial statements were approved by the Board of Directors and authorised for issue on 23 April 2024 and were signed on its behalf by:





Mr C J Wright - Director


Impulse Corporation Ltd (Registered number: 08730014)

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 - 41,545
Investments 12 475,325 475,325
475,325 516,870

CURRENT ASSETS
Debtors 14 2,385,960 2,506,103
Cash at bank 150,983 196,033
2,536,943 2,702,136
CREDITORS
Amounts falling due within one year 15 24,800 193,591
NET CURRENT ASSETS 2,512,143 2,508,545
TOTAL ASSETS LESS CURRENT LIABILITIES 2,987,468 3,025,415

PROVISIONS FOR LIABILITIES 18 - 2,436
NET ASSETS 2,987,468 3,022,979

CAPITAL AND RESERVES
Called up share capital 19 100 100
Share premium 11,995 11,995
Capital redemption reserve 45 45
Retained earnings 2,975,328 3,010,839
SHAREHOLDERS' FUNDS 2,987,468 3,022,979

Company's profit for the financial year 708,371 686,233

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 23 April 2024 and were signed on its behalf by:





Mr C J Wright - Director


Impulse Corporation Ltd (Registered number: 08730014)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1 January 2022 1,212 4,148,745 11,995

Changes in equity
Issue of share capital (1,000 ) - -
Dividends - (462,616 ) -
Total comprehensive income - 1,712,385 -
Balance at 31 December 2022 212 5,398,514 11,995

Changes in equity
Dividends - (743,882 ) -
Total comprehensive income - 1,538,345 -
Balance at 31 December 2023 212 6,192,977 11,995
Capital
redemption Non-controlling Total
reserve Total interests equity
£    £    £    £   
Balance at 1 January 2022 45 4,161,997 (268,290 ) 3,893,707

Changes in equity
Issue of share capital - (1,000 ) - (1,000 )
Dividends - (462,616 ) (247,800 ) (710,416 )
Total comprehensive income - 1,712,385 152,706 1,865,091
Balance at 31 December 2022 45 5,410,766 (363,384 ) 5,047,382

Changes in equity
Dividends - (743,882 ) (171,000 ) (914,882 )
Total comprehensive income - 1,538,345 168,664 1,707,009
Balance at 31 December 2023 45 6,205,229 (365,720 ) 5,839,509

Impulse Corporation Ltd (Registered number: 08730014)

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 January 2022 100 2,787,222 11,995 45 2,799,362

Changes in equity
Dividends - (462,616 ) - - (462,616 )
Total comprehensive income - 686,233 - - 686,233
Balance at 31 December 2022 100 3,010,839 11,995 45 3,022,979

Changes in equity
Dividends - (743,882 ) - - (743,882 )
Total comprehensive income - 708,371 - - 708,371
Balance at 31 December 2023 100 2,975,328 11,995 45 2,987,468

Impulse Corporation Ltd (Registered number: 08730014)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,446,590 993,098
Interest element of hire purchase payments paid (6,145 ) -
Government grants received 23,504 23,501
Tax paid (527,938 ) (95,308 )
Net cash from operating activities 1,936,011 921,291

Cash flows from investing activities
Purchase of tangible fixed assets (58,968 ) (69,843 )
Sale of tangible fixed assets 25,181 -
Interest received 16,977 23,373
Net cash from investing activities (16,810 ) (46,470 )

Cash flows from financing activities
Capital repayments in year (29,736 ) -
Amount introduced by directors 782,778 289,913
Amount withdrawn by directors (929,166 ) (232,339 )
Equity dividends paid (743,882 ) (462,616 )
Dividends paid to minority interests (171,000 ) (247,800 )
Net cash from financing activities (1,091,006 ) (652,842 )

Increase in cash and cash equivalents 828,195 221,979
Cash and cash equivalents at beginning of year 2 1,967,363 1,745,384

Cash and cash equivalents at end of year 2 2,795,558 1,967,363

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 2,102,593 2,116,770
Depreciation charges 192,090 176,917
Loss on disposal of fixed assets 10,950 12,635
Government grants (23,503 ) (23,501 )
Finance costs 6,145 -
Finance income (16,977 ) (23,373 )
2,271,298 2,259,448
Decrease/(increase) in stocks 136,717 (574,508 )
Decrease/(increase) in trade and other debtors 293,369 (897,837 )
(Decrease)/increase in trade and other creditors (254,794 ) 205,995
Cash generated from operations 2,446,590 993,098

2. 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 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 2,795,558 1,967,363
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,967,363 1,745,384


3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1.1.23 Cash flow changes At 31.12.23
£    £    £    £   
Net cash
Cash at bank
and in hand 1,967,363 828,195 2,795,558
1,967,363 828,195 2,795,558
Debt
Finance leases - 29,736 (80,852 ) (51,116 )
- 29,736 (80,852 ) (51,116 )
Total 1,967,363 857,931 (80,852 ) 2,744,442

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Impulse Corporation 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 General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


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.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being the 12 month period from the date of these accounts being approved, and therefore the financial statements have been prepared on a going concern basis.

Basis of consolidation
The group accounts consolidate the accounts of the group and all its subsidiaries at 31 March. All companies have coterminous year ends. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The company makes estimates and assumption concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgement

The realisable value of stock is calculated using long established and tested methodologies that take into account expected obsolescence and market dynamics.

The work in progress and finished goods included stock internally generated and which the directors apply deductions to in oder to assess its value excluding any profit element and allowing for future expected costs. This is applied consistently year on year and based on management's assessment of costs to complete and anticipated profit margins historically achieved.

In categorizing leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee, or the lessee, where the company is a lessor.

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents net invoiced sales of goods, excluding value added tax. Revenue is recognised as the company becomes entitled to consideration for the goods supplied.

Turnover is recognised when the company has transferred the significant risks and rewards of ownership to the buyer and it is probable that the company will receive the previously agreed upon payment. These criteria are considered to be met when the goods are delivered to the buyer.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 0, is being amortised evenly over its estimated useful life of nil years.

Intangible assets
Goodwill representing the excess of the consideration for an acquired undertaking compared with the fair value of net assets acquired is capitalised and written off evenly over 10 years or the life that the fair value adjustment related to, as in the opinion of the directors this represents the period over which the goodwill is effective. A period of 10 years is deemed reasonable by the directors as they believe the normal useful life of assets acquired is 10 years. Goodwill is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - in accordance with the lease
Improvements to property - 10% on cost
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 20% on cost
Computer equipment - 33% on cost, 20% on reducing balance and 5% on cost

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The Group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument, and are offset only when the Group currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

(i)Trade, group and other debtors

Trade, group and other debtors which are receivable within one year are initially measured at the transaction price. Trade, group and other debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss.

(ii) Financial liabilities and equity

Financial instruments are classified as liabilities and equity instruments according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.

Equity instruments
Financial instruments classified as equity instruments are recorded at the fair value of the cash or other resources received or receivable, net of direct costs of issuing the equity instruments.

Trade and other creditors
Trade and other creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Where the arrangement with a trade creditor constitutes a financing transaction, the creditor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar instrument.

(iii) Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, 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.


Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


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.

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

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 11,319,799 10,986,579
Europe 1,604,099 1,305,117
United States of America 221,049 85,720
Canada 65,769 33,511
13,210,716 12,410,927

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,346,619 1,012,873
Social security costs 136,838 107,946
Other pension costs 269,989 214,829
1,753,446 1,335,648

The average number of employees during the year was as follows:
2023 2022

Sales and administration 16 15
Production and engineering 14 13
Advertising and marketing 2 -
Directors 6 4
38 32

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees by undertakings that were proportionately consolidated during the year was 34 (2022 - 32 ) .

2023 2022
£    £   
Directors' remuneration 61,485 44,564
Directors' pension contributions to money purchase schemes 250,185 200,147

The highest paid director received emoluments totalling £12,405 and pension contributions of £125,000 (2022 - £11,141 & £40,000).

5. OPERATING PROFIT

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

2023 2022
£    £   
Depreciation - owned assets 257,701 242,528
Loss on disposal of fixed assets 10,950 12,635
Goodwill amortisation (65,611 ) (65,611 )
Foreign exchange differences 53,024 (27,872 )
Auditors remuneration 17,575 -
Capital grant release (23,504 ) (23,501 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Hire purchase 6,145 -

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 363,168 278,013

Deferred tax 32,417 (26,334 )
Tax on profit 395,585 251,679

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

7. TAXATION - continued

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

2023 2022
£    £   
Profit before tax 2,102,593 2,116,770
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 -
19 %)

399,493

402,186

Effects of:
Expenses not deductible for tax purposes 104 -
Income not taxable for tax purposes (4,453 ) (4,464 )
Capital allowances in excess of depreciation - (10,861 )
Depreciation in excess of capital allowances 46,063 -
Other tax difference (Change in tax rate) 75,786 -
Capital allowances (Change in tax rate) (5,999 ) -
Research and development expenditure (115,409 ) (135,182 )
Total tax charge 395,585 251,679

8. INDIVIDUAL PROFIT AND LOSS ACCOUNT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


9. DIVIDENDS
2023 2022
£    £   
A Ordinary shares of £1 each
Interim 353,000 182,503
B Ordinary shares of £1 each
Interim 177,882 93,000
C Ordinary shares of £1 each
Interim 128,000 112,113
D Ordinary shares of £1 each
Interim 85,000 75,000
743,882 462,616

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

10. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 (656,107 )
AMORTISATION
At 1 January 2023 (524,886 )
Amortisation for year (65,611 )
At 31 December 2023 (590,497 )
NET BOOK VALUE
At 31 December 2023 (65,610 )
At 31 December 2022 (131,221 )

11. TANGIBLE FIXED ASSETS

Group
Improvements
Short to Plant and
leasehold property machinery
£    £    £   
COST
At 1 January 2023 850,991 25,261 63,461
Additions - - -
Disposals - (25,261 ) (5,835 )
At 31 December 2023 850,991 - 57,626
DEPRECIATION
At 1 January 2023 578,031 20,216 28,984
Charge for year 192,677 2,527 6,620
Eliminated on disposal - (22,743 ) (4,607 )
At 31 December 2023 770,708 - 30,997
NET BOOK VALUE
At 31 December 2023 80,283 - 26,629
At 31 December 2022 272,960 5,045 34,477

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

11. TANGIBLE FIXED ASSETS - continued

Group

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 169,805 19,386 134,297 1,263,201
Additions 24,913 80,852 34,056 139,821
Disposals (60,540 ) - (47,845 ) (139,481 )
At 31 December 2023 134,178 100,238 120,508 1,263,541
DEPRECIATION
At 1 January 2023 91,624 7,756 51,283 777,894
Charge for year 20,364 20,048 15,465 257,701
Eliminated on disposal (52,055 ) - (23,944 ) (103,349 )
At 31 December 2023 59,933 27,804 42,804 932,246
NET BOOK VALUE
At 31 December 2023 74,245 72,434 77,704 331,295
At 31 December 2022 78,181 11,630 83,014 485,307

Motor vehicles, included in the above, have been purchased under a hire purchase agreement. The motor vehicle has been secured against the asset itself.

Company
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 January 2023 25,261 60,530 47,845 133,636
Disposals (25,261 ) (60,530 ) (47,845 ) (133,636 )
At 31 December 2023 - - - -
DEPRECIATION
At 1 January 2023 20,216 49,931 21,944 92,091
Charge for year 2,527 2,122 2,000 6,649
Eliminated on disposal (22,743 ) (52,053 ) (23,944 ) (98,740 )
At 31 December 2023 - - - -
NET BOOK VALUE
At 31 December 2023 - - - -
At 31 December 2022 5,045 10,599 25,901 41,545

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 475,325
NET BOOK VALUE
At 31 December 2023 475,325
At 31 December 2022 475,325

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Impulse Embedded Limited
Registered office: Unit 1 Beata Road, Chesterton, Newcastle-under-Lyme, England, ST5 7UT
Nature of business: Computer and peripheral equipment
%
Class of shares: holding
Ordinary 100.00


13. STOCKS

Group
2023 2022
£    £   
Work-in-progress 916,835 958,855
Finished goods 881,721 976,418
1,798,556 1,935,273

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 1,724,756 1,969,883 - 291,720
Amounts owed by group undertakings - - 1,918,859 1,710,151
Other debtors 467,101 510,402 467,101 504,232
Prepayments and accrued income 9,825 14,766 - -
2,201,682 2,495,051 2,385,960 2,506,103

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Hire purchase contracts (see note 17) 9,499 - - -
Trade creditors 619,722 841,338 4,878 -
Tax 113,168 277,938 - 66,615
Social security and other taxes 35,733 34,726 - -
VAT 260,604 319,609 12,107 48,620
Other creditors 51,437 33,296 - -
Directors' current accounts - 87,660 - 12,113
Directors' loan accounts 5,766 64,494 5,766 64,494
Accrued expenses 13,576 6,897 2,049 1,749
1,109,505 1,665,958 24,800 193,591

Hire purchase creditors are secured over the assets to which they relate.

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2023 2022
£    £   
Hire purchase contracts (see note 17) 41,617 -

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 9,499 -
Between one and five years 41,617 -
51,116 -

18. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax
Accelerated capital allowances 70,850 38,433 - 2,436

Group
Deferred
tax
£   
Balance at 1 January 2023 38,433
Provided during year 32,417
Balance at 31 December 2023 70,850

Impulse Corporation Ltd (Registered number: 08730014)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

18. PROVISIONS FOR LIABILITIES - continued

Company
Deferred
tax
£   
Balance at 1 January 2023 2,436
Credit to Profit and Loss Account during year (2,436 )
Balance at 31 December 2023 -

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal value: 202023 20202
£ £
80 Ordinary A £1 80 80
20 Ordinary B £1 20 20

100 100

20. RESERVES

Group
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 January 2023 5,398,514 11,995 45 5,410,554
Profit for the year 1,538,345 1,538,345
Dividends (743,882 ) (743,882 )
At 31 December 2023 6,192,977 11,995 45 6,205,017


21. OTHER FINANCIAL COMMITMENTS

2023 2022

Within 1
year
Between
2-5 years
Over 5
years
Within 1
year
Between
2-5 years

Over 5 years

Operating leases 176,135 63,448 - 217,150 216,296 -
176,135 63,448 - 217,150 216,296 -

A member of the group company operates complex forward contracts and options to hedge against foreign currency movements. As at 31st August 2023, the company had forward exchange contracts in place to purchase USD $610,000 (2022 $200,000) and sell £500,000 (2022 £153,846).

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are the directors.