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 |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
Ebenezer House |
Ryecroft |
Newcastle under Lyme |
Staffordshire |
ST5 2BE |
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 |
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 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 708,371 | 686,233 |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
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 |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
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 |
Short leasehold | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 |
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 |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
Amounts owed by group undertakings | - | - |
Other debtors | 467,101 | 510,402 |
Prepayments and accrued income | 9,825 | 14,766 |
2,201,682 | 2,495,051 |
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 |
Tax | 113,168 | 277,938 |
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 |
1,109,505 | 1,665,958 |
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 |
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 |
Credit to Profit and Loss Account during year | ( |
) |
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. |