IRIS Accounts Production v24.1.0.578 02871505 Board of Directors 1.1.23 31.12.23 31.12.23 manufacture of specialised electronic solutions. true false true true false false true true true false Ordinary 1.00000 A Ordinary 1.00000 B Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure028715052022-12-31028715052023-12-31028715052023-01-012023-12-31028715052021-12-31028715052022-01-012022-12-31028715052022-12-3102871505ns16:EnglandWales2023-01-012023-12-3102871505ns15:PoundSterling2023-01-012023-12-3102871505ns11:Director12023-01-012023-12-3102871505ns11:PrivateLimitedCompanyLtd2023-01-012023-12-3102871505ns11:FRS1022023-01-012023-12-3102871505ns11:Audited2023-01-012023-12-3102871505ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3102871505ns11:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3102871505ns11:FullAccounts2023-01-012023-12-3102871505ns11:OrdinaryShareClass12023-01-012023-12-3102871505ns11:OrdinaryShareClass22023-01-012023-12-3102871505ns11:OrdinaryShareClass32023-01-012023-12-3102871505ns11:Director22023-01-012023-12-3102871505ns11:Director32023-01-012023-12-3102871505ns11:Director42023-01-012023-12-3102871505ns11:CompanySecretary12023-01-012023-12-3102871505ns11:RegisteredOffice2023-01-012023-12-3102871505ns6:CurrentFinancialInstruments2023-12-3102871505ns6:CurrentFinancialInstruments2022-12-3102871505ns6:Non-currentFinancialInstruments2023-12-3102871505ns6:Non-currentFinancialInstruments2022-12-3102871505ns6:ShareCapital2023-12-3102871505ns6:ShareCapital2022-12-3102871505ns6:SharePremium2023-12-3102871505ns6:SharePremium2022-12-3102871505ns6:RetainedEarningsAccumulatedLosses2023-12-3102871505ns6:RetainedEarningsAccumulatedLosses2022-12-3102871505ns6:ShareCapital2021-12-3102871505ns6:RetainedEarningsAccumulatedLosses2021-12-3102871505ns6:SharePremium2021-12-3102871505ns6:RetainedEarningsAccumulatedLosses2022-01-012022-12-3102871505ns6:RetainedEarningsAccumulatedLosses2023-01-012023-12-310287150512023-01-012023-12-3102871505ns6:ShortLeaseholdAssetsns6:LandBuildings2023-01-012023-12-3102871505ns6:PlantMachinery2023-01-012023-12-3102871505ns6:FurnitureFittings2023-01-012023-12-3102871505ns6:MotorVehicles2023-01-012023-12-3102871505ns6:ComputerEquipment2023-01-012023-12-3102871505ns16:UnitedKingdom2023-01-012023-12-3102871505ns16:UnitedKingdom2022-01-012022-12-3102871505ns16:Europe2023-01-012023-12-3102871505ns16:Europe2022-01-012022-12-3102871505ns16:UnitedStates2023-01-012023-12-3102871505ns16:UnitedStates2022-01-012022-12-3102871505ns6:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2023-01-012023-12-3102871505ns6:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-01-012022-12-3102871505ns6:OwnedAssets2023-01-012023-12-3102871505ns6:OwnedAssets2022-01-012022-12-3102871505112023-01-012023-12-3102871505112022-01-012022-12-3102871505122023-01-012023-12-3102871505122022-01-012022-12-3102871505ns6:HirePurchaseContracts2023-01-012023-12-3102871505ns6:HirePurchaseContracts2022-01-012022-12-3102871505ns11:OrdinaryShareClass12022-01-012022-12-3102871505ns11:OrdinaryShareClass22022-01-012022-12-3102871505ns11:OrdinaryShareClass32022-01-012022-12-3102871505ns6:ShortLeaseholdAssetsns6:LandBuildings2022-12-3102871505ns6:PlantMachinery2022-12-3102871505ns6:FurnitureFittings2022-12-3102871505ns6:ShortLeaseholdAssetsns6:LandBuildings2023-12-3102871505ns6:PlantMachinery2023-12-3102871505ns6:FurnitureFittings2023-12-3102871505ns6:ShortLeaseholdAssetsns6:LandBuildings2022-12-3102871505ns6:PlantMachinery2022-12-3102871505ns6:FurnitureFittings2022-12-3102871505ns6:MotorVehicles2022-12-3102871505ns6:ComputerEquipment2022-12-3102871505ns6:MotorVehicles2023-12-3102871505ns6:ComputerEquipment2023-12-3102871505ns6:MotorVehicles2022-12-3102871505ns6:ComputerEquipment2022-12-3102871505ns6:WithinOneYearns6:CurrentFinancialInstruments2023-12-3102871505ns6:WithinOneYearns6:CurrentFinancialInstruments2022-12-3102871505ns6:CurrentFinancialInstruments2023-01-012023-12-3102871505ns6:WithinOneYearns6:CurrentFinancialInstrumentsns6:HirePurchaseContracts2023-12-3102871505ns6:WithinOneYearns6:CurrentFinancialInstrumentsns6:HirePurchaseContracts2022-12-3102871505ns6:BetweenOneFiveYearsns6:HirePurchaseContracts2023-12-3102871505ns6:BetweenOneFiveYearsns6:HirePurchaseContracts2022-12-3102871505ns6:HirePurchaseContracts2023-12-3102871505ns6:HirePurchaseContracts2022-12-3102871505ns6:AcceleratedTaxDepreciationDeferredTax2023-12-3102871505ns6:AcceleratedTaxDepreciationDeferredTax2022-12-3102871505ns6:DeferredTaxation2022-12-3102871505ns6:DeferredTaxation2023-01-012023-12-3102871505ns6:DeferredTaxation2023-12-3102871505ns11:OrdinaryShareClass12023-12-3102871505ns11:OrdinaryShareClass22023-12-3102871505ns11:OrdinaryShareClass32023-12-3102871505ns6:RetainedEarningsAccumulatedLosses2022-12-3102871505ns6:SharePremium2022-12-31
REGISTERED NUMBER: 02871505 (England and Wales)














Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023

for

Impulse Embedded Limited

Impulse Embedded Limited (Registered number: 02871505)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Profit and Loss Account 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


Impulse Embedded Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: Mr C Stone
Mr C J Wright
Mr R Plant
Mr J P Goetzee





SECRETARY: Mr C Stone





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





REGISTERED NUMBER: 02871505 (England and Wales)





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

Impulse Embedded Limited (Registered number: 02871505)

Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
The Directors are pleased to present our strategic report outlining our company'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 company 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 company 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 company 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%) 15.7% 13.7%
Debtor days 48 49
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 Embedded Limited (Registered number: 02871505)

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 company remains 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 Embedded Limited (Registered number: 02871505)

Report of the Directors
for the Year Ended 31 December 2023

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

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 912,882 .

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
Mr R Plant
Mr J P Goetzee

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;
-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.

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.

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 Embedded Limited

Opinion
We have audited the financial statements of Impulse Embedded Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, Other 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 31 December 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 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.

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.

Report of the Independent Auditors to the Members of
Impulse Embedded Limited


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 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.

Report of the Independent Auditors to the Members of
Impulse Embedded Limited


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:

The extent to which the audit was considered capable of detecting irregularities including fraud

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.


Report of the Independent Auditors to the Members of
Impulse Embedded Limited

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.

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 BRP 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 Embedded Limited (Registered number: 02871505)

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 1,397,055 1,515,566
2,047,997 1,629,203

Other operating income 31,079 71,938
OPERATING PROFIT 5 2,079,076 1,701,141


Interest payable and similar expenses 6 6,145 -
PROFIT BEFORE TAXATION 2,072,931 1,701,141

Tax on profit 7 398,021 184,695
PROFIT FOR THE FINANCIAL YEAR 1,674,910 1,516,446

Impulse Embedded Limited (Registered number: 02871505)

Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,674,910 1,516,446


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,674,910 1,516,446

Impulse Embedded Limited (Registered number: 02871505)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 331,295 443,761

CURRENT ASSETS
Stocks 10 1,798,556 1,935,273
Debtors 11 1,734,581 1,699,099
Cash at bank and in hand 2,644,575 1,771,330
6,177,712 5,405,702
CREDITORS
Amounts falling due within one year 12 3,003,563 3,182,517
NET CURRENT ASSETS 3,174,149 2,223,185
TOTAL ASSETS LESS CURRENT LIABILITIES 3,505,444 2,666,946

CREDITORS
Amounts falling due after more than one year 13 (41,617 ) -

PROVISIONS FOR LIABILITIES 15 (70,850 ) (35,997 )
NET ASSETS 3,392,977 2,630,949

CAPITAL AND RESERVES
Called up share capital 16 1,112 1,112
Share premium 17 139,888 139,888
Retained earnings 17 3,251,977 2,489,949
SHAREHOLDERS' FUNDS 3,392,977 2,630,949

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 Embedded Limited (Registered number: 02871505)

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

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 January 2022 1,112 1,624,503 139,888 1,765,503

Changes in equity
Dividends - (651,000 ) - (651,000 )
Total comprehensive income - 1,516,446 - 1,516,446
Balance at 31 December 2022 1,112 2,489,949 139,888 2,630,949

Changes in equity
Dividends - (912,882 ) - (912,882 )
Total comprehensive income - 1,674,910 - 1,674,910
Balance at 31 December 2023 1,112 3,251,977 139,888 3,392,977

Impulse Embedded Limited (Registered number: 02871505)

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

1. STATUTORY INFORMATION

Impulse Embedded 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.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirement of paragraph 33.7.

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 the parent company of the group.

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.

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.

Impulse Embedded Limited (Registered number: 02871505)

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

2. ACCOUNTING POLICIES - continued

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

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.

At each reporting date stocks are assessed for their impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the profit and loss account.

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

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

(i) Basic financial assets
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost being the transaction price less any amounts settled and any impairment losses.

(ii) Impairment of financial assets
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.

(iii) Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, 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.

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

(v) Basic financial liabilities
Basic financial liabilities, including trade and other creditors, that are classified as debt, are initially
recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

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

(vi) Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s contractual obligations are discharged, cancelled, or they expire.

Impulse Embedded Limited (Registered number: 02871505)

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

2. ACCOUNTING POLICIES - continued

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

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
(i) Functional and presentation currency

The company's functional and presentation currency is the pound sterling.

(ii) Transactions and balances

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

At inception the company assesses agreements that transfer the right to use assets. Leases that do not transfer all the risks and rewards of ownership are classified as operating leases.

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.

Cash and cash equivalents
Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

Capital grants release
The company obtained government match funding grant in 2020 to assist with the development of the premises. This is being written off in line with the terms of the lease.

Impulse Embedded Limited (Registered number: 02871505)

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

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:

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 1,309,943 990,591
Social security costs 134,840 107,912
Other pension costs 19,989 134,829
1,464,772 1,233,332

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 2 2
34 30

2023 2022
£    £   
Directors' remuneration 24,809 22,282
Directors' pension contributions to money purchase schemes 185 120,147

5. OPERATING PROFIT

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

2023 2022
£    £   
Other operating leases 8,400 8,400
Depreciation - owned assets 251,052 236,351
Loss on disposal of fixed assets 1,235 12,635
Foreign exchange differences 53,024 (27,872 )
Audit fees 13,575 -
Government Grant release (23,504 ) (23,501 )

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

Impulse Embedded Limited (Registered number: 02871505)

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

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 363,168 211,324

Deferred tax 34,853 (26,629 )
Tax on profit 398,021 184,695

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:

2023 2022
£    £   
Profit before tax 2,072,931 1,701,141
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 -
19%)

393,857

323,217

Effects of:
Expenses not deductible for tax purposes 104 -
Income not taxable for tax purposes (4,454 ) (4,465 )
Depreciation in excess of capital allowances 57,571 1,125
Group relief (3,436 ) -
Research & development enhanced expenditure (142,868 ) (135,182 )
Other tax difference (Change in tax rate) 103,246 -
Capital allowances (Change in tax rate) (5,999 ) -
Total tax charge 398,021 184,695

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 741,882 403,200
A Ordinary shares of £1 each
Interim 85,500 114,300
B Ordinary shares of £1 each
Interim 85,500 133,500
912,882 651,000

Impulse Embedded Limited (Registered number: 02871505)

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

9. TANGIBLE FIXED ASSETS
Fixtures
Leasehold Plant and and
improvements machinery fittings
£    £    £   
COST
At 1 January 2023 850,991 63,461 109,274
Additions - - 24,914
Disposals - (5,835 ) (10 )
At 31 December 2023 850,991 57,626 134,178
DEPRECIATION
At 1 January 2023 578,031 28,984 41,693
Charge for year 192,677 6,620 18,242
Eliminated on disposal - (4,607 ) (2 )
At 31 December 2023 770,708 30,997 59,933
NET BOOK VALUE
At 31 December 2023 80,283 26,629 74,245
At 31 December 2022 272,960 34,477 67,581

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 19,386 86,452 1,129,564
Additions 80,852 34,056 139,822
Disposals - - (5,845 )
At 31 December 2023 100,238 120,508 1,263,541
DEPRECIATION
At 1 January 2023 7,756 29,339 685,803
Charge for year 20,048 13,465 251,052
Eliminated on disposal - - (4,609 )
At 31 December 2023 27,804 42,804 932,246
NET BOOK VALUE
At 31 December 2023 72,434 77,704 331,295
At 31 December 2022 11,630 57,113 443,761

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

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

Impulse Embedded Limited (Registered number: 02871505)

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

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,724,756 1,678,163
Other debtors - 6,170
Prepayments and accrued income 9,825 14,766
1,734,581 1,699,099

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) 9,499 -
Trade creditors 614,842 841,340
Amounts owed to group undertakings 1,918,860 1,710,151
Tax 113,168 211,324
Social security and other taxes 35,733 34,726
VAT 248,497 270,989
Other creditors 51,437 33,296
Directors' current accounts - 75,547
Accrued expenses 11,527 5,144
3,003,563 3,182,517

Amounts owed to group companies are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

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

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) 41,617 -

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

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

15. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 70,850 35,997

Impulse Embedded Limited (Registered number: 02871505)

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

15. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2023 35,997
Provided during year 34,853
Balance at 31 December 2023 70,850

The deferred tax provision relates to accelerated capital allowance timing differences.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,000 Ordinary £1 1,000 1,000
56 A Ordinary £1 56 56
56 B Ordinary £1 56 56
1,112 1,112

17. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 2,489,949 139,888 2,629,837
Profit for the year 1,674,910 1,674,910
Dividends (912,882 ) (912,882 )
At 31 December 2023 3,251,977 139,888 3,391,865

18. FINANCIAL COMMITMENTS

20232022

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

Over 5 years

Operating leases176,13563,448-217,150216,296-
176,13563,448-217,150216,296-

The 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).

19. ULTIMATE CONTROLLING PARTY

The controlling party is Impulse Corporation Limited.

The company's immediate and ultimate parent undertaking and controlling party is Impulse Corporation Limited, a company incorporated in England & Wales. Copies of the consolidated financial statements of the group, in which the company is uncluded, are available from its registered office: Unit 1, Beata Road, Chesterton, Newcastle-under-Lyme, Staffordshire, ST5 7UT.