Company registration number 12970980 (England and Wales)
EXCOTEK HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
EXCOTEK HOLDINGS LTD
COMPANY INFORMATION
Director
Mr K J Tucker
Company number
12970980
Registered office
Suite 203
Group First House
12a Mead Way
Padiham
Burnley
Lancashire
BB12 7NG
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Suite 203
Group First House
12a Mead Way
Padiham
Burnley
Lancashire
BB12 7NG
EXCOTEK HOLDINGS LTD
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 27
EXCOTEK HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The director presents the strategic report for the year ended 31 March 2024.

Fair review of the business

The company has one material wholly owned subsidiary company, Excotek Limited, the fair review of which for the year ended 31 March 2024 is set out below;

 

Excotek Limited (subsidiary company)

 

The Director is pleased to present the Strategic Report for the year ended 31 March 2024.

 

I am proud to announce that this has been a successful year for Excotek, marked by notable increases in both turnover and gross profit.

 

At Excotek, our mission is to empower businesses and organisations to maximise the potential of their IT infrastructure and investments.

 

By transforming the way people work, connect, and communicate, we continue to experience strong demand and growth opportunities for our services.

 

We specialise in designing and delivering tailored solutions that allow our clients to focus on their core business objectives, all while ensuring that their IT systems remain secure and resilient.

 

Every project and client engagement receives our unwavering commitment. From the initial planning stages to client handover, we prioritise open communication throughout the process, fostering long-term relationships with both our clients and vendor partners.

 

Management regularly review Key Performance Indicators (KPI's) to assess our company's performance, focusing on critical metrics such as turnover, gross profit percentage, delivery times, and customer satisfaction.

 

Looking ahead, we are optimistic about the next 12 months and are committed to building upon the success we have achieved in recent years. 

 

 

 

 

On behalf of the board

Mr K J Tucker
Director
9 October 2024
EXCOTEK HOLDINGS LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The director presents his annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company is that of a parent company coordinating the activities of the group, whose trading subsidiary's principal activity is that of worldwide IT equipment distribution, build, logistics, and IT consultancy services.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £390,000. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr K J Tucker
Auditor

The auditor, Pierce C.A. Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

EXCOTEK HOLDINGS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
On behalf of the board
Mr K J Tucker
Director
9 October 2024
EXCOTEK HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EXCOTEK HOLDINGS LTD
- 4 -
Opinion

We have audited the financial statements of Excotek Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

EXCOTEK HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EXCOTEK HOLDINGS LTD
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:

We are also required to perform specific procedures to respond to the risk of management override.

As a result of our audit procedures we did not identify a material risk of fraud or other non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

EXCOTEK HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EXCOTEK HOLDINGS LTD
- 6 -

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 an auditor's report 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.

James King (Senior Statutory Auditor)
For and on behalf of Pierce CA Limited
9 October 2024
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
EXCOTEK HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
24,556,711
6,626,680
Cost of sales
(21,223,538)
(5,299,357)
Gross profit
3,333,173
1,327,323
Administrative expenses
(1,279,241)
(1,141,648)
Other operating income
526
-
Operating profit
4
2,054,458
185,675
Interest payable and similar expenses
7
-
0
(4,644)
Amounts written off investments
8
(52,095)
-
Profit before taxation
2,002,363
181,031
Tax on profit
9
(528,170)
(45,727)
Profit for the financial year
1,474,193
135,304
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
EXCOTEK HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
31,309
48,071
Investment property
13
894,700
-
0
Investments
14
201,250
251,250
1,127,259
299,321
Current assets
Stocks
17
177,740
389,654
Debtors
18
6,448,870
1,673,036
Cash at bank and in hand
704,544
2,198,517
7,331,154
4,261,207
Creditors: amounts falling due within one year
19
(3,695,580)
(878,319)
Net current assets
3,635,574
3,382,888
Total assets less current liabilities
4,762,833
3,682,209
Provisions for liabilities
Deferred tax liability
20
724
4,293
(724)
(4,293)
Net assets
4,762,109
3,677,916
Capital and reserves
Called up share capital
22
39
39
Share premium account
23
-
0
479,562
Profit and loss reserves
4,762,070
3,198,315
Total equity
4,762,109
3,677,916
The financial statements were approved and signed by the director and authorised for issue on 9 October 2024
09 October 2024
Mr K J Tucker
Director
Company registration number 12970980 (England and Wales)
EXCOTEK HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
13
894,700
-
0
Investments
14
201,283
251,283
1,095,983
251,283
Current assets
Debtors
18
-
0
59,868
Cash at bank and in hand
10,559
34
10,559
59,902
Creditors: amounts falling due within one year
19
(858,977)
(311,146)
Net current liabilities
(848,418)
(251,244)
Net assets
247,565
39
Capital and reserves
Called up share capital
22
39
39
Share premium account
23
-
0
479,562
Profit and loss reserves
247,526
(479,562)
Total equity
247,565
39

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £637,525 (2023 - £491,152 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 9 October 2024
09 October 2024
Mr K J Tucker
Director
Company registration number 12970980 (England and Wales)
EXCOTEK HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Year ended 31 March 2023:
Net assets acquired on share for share exchange
-
2,520,590
2,520,590
Profit and total comprehensive income for the year
-
-
135,304
135,304
Issue of share capital
22
6
-
0
-
6
Dividends
10
-
-
(970,714)
(970,714)
Other movements
-
479,562
-
479,562
Balance at 31 March 2023
39
479,562
3,198,315
3,677,916
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
1,474,193
1,474,193
Dividends
10
-
-
(390,000)
(390,000)
Reduction of share premium
23
-
(479,562)
479,562
-
0
Balance at 31 March 2024
39
-
0
4,762,070
4,762,109
EXCOTEK HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
33
-
0
-
0
33
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
491,152
491,152
Issue of share capital
22
6
-
0
-
6
Dividends
10
-
-
(970,714)
(970,714)
Other movements
-
479,562
-
479,562
Balance at 31 March 2023
39
479,562
(479,562)
39
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
637,526
637,526
Dividends
10
-
-
(390,000)
(390,000)
Reduction of share premium
23
-
(479,562)
479,562
-
0
Balance at 31 March 2024
39
-
0
247,526
247,565
EXCOTEK HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(164,396)
(5,738,007)
Interest paid
-
0
(4,644)
Income taxes paid
(44,877)
(327,375)
Net cash outflow from operating activities
(209,273)
(6,070,026)
Investing activities
Purchase of tangible fixed assets
-
(52,403)
Purchase of investment property
(894,700)
-
Purchase of associates
-
(251,250)
Net cash used in investing activities
(894,700)
(303,653)
Financing activities
Proceeds from issue of shares
-
479,568
Dividends paid to equity shareholders
(390,000)
(970,714)
Net cash used in financing activities
(390,000)
(491,146)
Net decrease in cash and cash equivalents
(1,493,973)
(6,864,825)
Cash and cash equivalents at beginning of year
2,198,517
9,063,342
Cash and cash equivalents at end of year
704,544
2,198,517
EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

Excotek Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Suite 203 Group First House, 12a Mead Way, Padiham, Burnley, Lancashire BB12 7NG.

 

The group consists of Excotek Holdings Ltd and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Excotek Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in associates include acquired goodwill.

EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
25%/33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets 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. Bank overdrafts are shown within borrowings in current liabilities.

1.11
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 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
IT equipment distribution and consultancy services
24,556,711
6,626,680
2024
2023
£
£
Turnover analysed by geographical market
UK
23,262,208
6,247,778
Europe
644,875
375,828
Rest of World
649,628
3,074
24,556,711
6,626,680
EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(42,746)
(3,108)
Depreciation of owned tangible fixed assets
16,762
18,041
Operating lease charges
83,563
52,933
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,950
2,850
Audit of the financial statements of the company's subsidiaries
10,500
9,500
13,450
12,350
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
3
3
1
1
Administrative
2
3
-
-
Sales
5
5
-
-
Technical
1
1
-
-
Total
11
12
1
1

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
528,976
536,753
-
0
-
0
Social security costs
56,256
57,987
-
-
Pension costs
139,826
8,656
-
0
-
0
725,058
603,396
-
0
-
0
EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
-
4,644
8
Amounts written off investments
2024
2023
£
£
Impairment of fixed asset investments
(52,095)
-
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
531,739
44,862
Deferred tax
Origination and reversal of timing differences
(3,569)
865
Total tax charge
528,170
45,727

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
2,002,363
181,031
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
500,591
34,396
Tax effect of expenses that are not deductible in determining taxable profit
27,607
14,290
Tax effect of income not taxable in determining taxable profit
(520)
(4,284)
Effect of change in corporation tax rate
-
1,030
Depreciation on assets not qualifying for tax allowances
1,409
896
Other non-reversing timing differences
-
0
(124)
Deferred tax adjustments in respect of prior years
(917)
-
0
Enhanced capital allowances
-
0
(477)
Taxation charge
528,170
45,727
EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
390,000
970,714
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Fixed asset investments
14
52,095
-
Recognised in:
Amounts written off investments
52,095
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account and includes £2,095 in respect of Excotek Ltd's investment in its dormant subsidiary, Excotek Bulgaria.

12
Tangible fixed assets
Group
Fixtures and fittings
£
Cost
At 1 April 2023 and 31 March 2024
80,000
Depreciation and impairment
At 1 April 2023
31,929
Depreciation charged in the year
16,762
At 31 March 2024
48,691
Carrying amount
At 31 March 2024
31,309
At 31 March 2023
48,071
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 April 2023
-
-
Additions through external acquisition
894,700
894,700
At 31 March 2024
894,700
894,700

Investment property comprises the residential property, Austin House, Slaidburn Road, Waddington, Clitheroe BB7 3JQ. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the director based upon an estate agent listing. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
33
33
Investments in associates
16
201,250
251,250
201,250
251,250
201,250
251,250
201,283
251,283
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 April 2023 and 31 March 2024
251,250
Impairment
At 1 April 2023
-
Impairment losses
50,000
At 31 March 2024
50,000
Carrying amount
At 31 March 2024
201,250
At 31 March 2023
251,250
EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 April 2023 and 31 March 2024
251,283
Impairment
At 1 April 2023
-
Impairment losses
50,000
At 31 March 2024
50,000
Carrying amount
At 31 March 2024
201,283
At 31 March 2023
251,283
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Excotek Ltd
IT equipment distribution and consultancy services
Ordinary
100.00
-
Excotek Bulgaria
Dormant
Ordinary
-
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Suite 203, Group First House, 12a Mead Way, Padiham, Burnley, Lancashire BB12 7NG
2
Sofia 1000, Sofia Municipality, Oborshte, 21B Moskovska, str. Floor 3, Bulgaria
16
Associates

Details of associates at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Shop At Home Retail Group Limited
Unit C1-C4 Blackburn Road, Clayton-Le-Moors, Accrington BB5 5JW
Online retailer of homeware and technology products
Ordinary
35
EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
177,740
389,654
-
0
-
0
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,416,704
1,618,266
-
0
-
0
Amounts owed by group undertakings
-
-
-
59,868
Other debtors
22,100
32,615
-
0
-
0
Prepayments and accrued income
10,066
22,155
-
0
-
0
6,448,870
1,673,036
-
59,868
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
2,067,630
348,999
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
853,576
-
0
Corporation tax payable
531,741
44,879
-
0
-
0
Other taxation and social security
513,808
49,101
-
-
Other creditors
228,693
350,302
5,401
311,146
Accruals and deferred income
353,708
85,038
-
0
-
0
3,695,580
878,319
858,977
311,146

Other creditors include an interest-free loan of £5,401 (2023 - £311,146) advanced by a former director of the company's subsidiary, Excotek Ltd.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
724
4,293
The company has no deferred tax assets or liabilities.
EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
20
Deferred taxation
(Continued)
- 25 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
4,293
-
Credit to profit or loss
(3,569)
-
Liability at 31 March 2024
724
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
139,826
8,656

Defined contribution pension schemes are operated for all qualifying employees. The assets of these schemes are held separately from those of the group in independently administered funds.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
3,882
3,882
39
39
23
Share premium account

On 1 November 2023 the company entered into a capital reduction of its share premium account of £479,562 realising additional profit and loss account reserves.

EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
58,957
49,182
-
-
Between two and five years
31,382
-
-
-
90,339
49,182
-
-
25
Directors' transactions

Dividends totalling £165,000 (2023 - £180,000) were paid in the year in respect of shares held by the company's director.

Included within other creditors is an interest-free loan advanced to the group by the director. At the financial year-end the amount owed by the group to its director was £195,787 (2023 - £24,147).

26
Controlling party
The company is ultimately controlled by the director, Mr K J Tucker, together with his wife, by virtue of their shareholding in the company.
27
Cash absorbed by group operations
2024
2023
£
£
Profit for the year after tax
1,474,193
135,304
Adjustments for:
Taxation charged
528,170
45,727
Finance costs
-
0
4,644
Depreciation and impairment of tangible fixed assets
16,762
18,041
Other gains and losses
52,095
-
Movements in working capital:
Decrease/(increase) in stocks
211,914
(92,007)
Increase in debtors
(4,777,929)
(473,889)
Increase/(decrease) in creditors
2,330,399
(5,375,827)
Cash absorbed by operations
(164,396)
(5,738,007)
EXCOTEK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
28
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
2,198,517
(1,493,973)
704,544
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