Company registration number 08242486 (England and Wales)
IP TELECOM (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
IP TELECOM (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr G F Watts
Mr R E Baker
Mrs S A Lough
Secretary
Mrs S A Lough
Company number
08242486
Registered office
Solutions Centre
53-57 Knightsdale Road
Ipswich
IP1 4JQ
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
IP TELECOM (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 27
IP TELECOM (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

Getech continued our journey as an employee-owned trust with another set of very positive results during a challenging and rather subdued economic climate. Various outside factors (both global and domestic) have contributed to the uncertainties within the UK trading environment, but we remain aware of the challenges that are ahead of us.

 

Turnover for 2024 was down 9% on 2023 to £47m but GP was only marginally down by £164k to £5.8m (being a 2.7% decrease on 2023) which was better than expected owing to an increase in consultancy services producing higher margins.

 

Our Primary and Secondary Education sectors continue to go from strength to strength. Both our Lego Education and Google Education product sets demonstrate why they are seen by our customers as ideal solutions to the demands faced in the STEM and Educational sectors. Furthermore, we are seeing the advent and use of Artificial Intelligence providing even further proof that implementing these technologies in the correct way are making a transformational difference to educational learning.

 

Our Google division saw a 6% increase in revenue as we maintained our position as a major Chrome Education and Chrome Enterprise partner. Furthermore, we are confident that recent investments in the sales team to take advantage of the growth opportunities in Chrome Enterprise will build on this success in 2025.

 

Within Higher Education, we had another robust performance despite numerous reports about diminishing HE budgets which were also complemented by some significant wins in the FE sector. With the imminent closure of support for Windows 10 later in 2025, we would expect demand for Windows 11 refreshes to increase throughout 2025.

 

Our BT Partner division (now in its 15th year) has had a successful year with increased revenues, and we fully expect this to continue into 2025.

Principal risks and uncertainties

The principal risks and uncertainties facing the Group are as follows:-

Economic downturn - the Group acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of potential financial difficulties. Sales trends in its major markets are constantly reviewed to enable early action to be taken in the event of sales declining.

 

Competitor pressure - the market in which the Group operates is considered to be relatively competitive, and therefore competitor pressure could result in losing sales to key competitors. The Group manages this risk by providing quality products and maintaining strong relationships with its key customers.

 

Reliance on key suppliers - the Group's purchasing activities could expose it to over reliance on certain suppliers and inflationary pricing pressure. The Group manages this risk by ensuring there is enough breadth in its supplier base and by constantly seeking to find potential alternative suppliers that may be used, if necessary.

 

Loss of key personnel - this would present significant operational difficulties for the Group. Management seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised.

Substainabiliy

Our Environmental Working Group (EWG) was established in 2018 to lead sustainability and environmental issues. By drawing together our Sustainability Champions and empowering them to drive projects within the company, the group has been fundamental in implementing a wide range of initiatives to reduce our waste and energy use and removing single-use plastics whilst increasing our use of renewables and recyclables.

 

In support of this, the EWG is defining our Carbon Reduction Plan (CRP), setting baseline reports, defining targets, Sustainability First strategies and processes and will monitor progress towards these commitments, reporting progress directly to the Getech Executive team every quarter. Our aim is to be Carbon Neutral by 2030 and Net Zero by 2040.

IP TELECOM (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

By order of the board

Mrs S A Lough
Secretary
4 March 2025
IP TELECOM (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company is that of an investment holding company.

 

The primary activity of the group is the supply of desktop, portable appliances and associated IT support, consultancy, installation, repair and warranty services.

 

On the 26th October 2021 the company transitioned into an Employee Ownership Trust (EOT). There have been no changes to the existing executive management team who have all retained a shareholding in the group and will continue to lead strategy to drive the group forward but also now with the addition of greater employee commitment, involvement, and motivation.

Results and dividends

The results for the year are set out on page 9.

No dividends were paid during the year.

Directors

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

Mr G F Watts
Mr R E Baker
Mrs S A Lough
Financial instruments
Treasury operations and financial instruments

The group operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company’s activities.

 

The group’s principal financial instruments include loans and bank overdrafts(the main purpose of which is to raise finance for the group’s operations). In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. The company has no derivative financial instruments.

Liquidity risk

The group manages it's cash and borrowing requirements to maximise interest income and minimise interest expense, whilst ensuring adequate liquid resources are available to meet the operating needs of the business.

Foreign currency risk

The group’s volume and value of non-GBP transactions have reduced significantly over the last few years and therefore the group’s level of exchange risk has similarly reduced down to a level where forward buying of currencies to mitigate this risk is not required. The Directors continue to monitor the level of risk and will take mitigating action if the level of risk increases again.

Credit risk

The principal credit risk is with debtors, the company minimises these risks through credit checks and credit insurance agencies.

Auditor

The auditor, Ensors Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

IP TELECOM (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

By order of the board
Mrs S A Lough
Secretary
4 March 2025
IP TELECOM (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

IP TELECOM (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IP TELECOM (HOLDINGS) LIMITED
- 6 -
Opinion

We have audited the financial statements of IP Telecom (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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 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 FRS 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 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:

IP TELECOM (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IP TELECOM (HOLDINGS) LIMITED
- 7 -
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 directors' 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 directors

As explained more fully in the directors' responsibilities statement, 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 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 directors are 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 directors either intend to liquidate the parent company or to cease operations, or have 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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.

IP TELECOM (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IP TELECOM (HOLDINGS) LIMITED
- 8 -

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.

Malcolm McGready (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP, Statutory Auditor
Chartered Accountants
Connexions
159 Princes Street
Ipswich
IP1 1QJ
11 March 2025
IP TELECOM (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£000
£000
Turnover
3
47,070
51,893
Cost of sales
(41,241)
(45,899)
Gross profit
5,829
5,994
Distribution costs
(2,883)
(3,099)
Administrative expenses
(1,511)
(1,101)
Other operating income
37
68
Operating profit
4
1,472
1,862
Interest receivable and similar income
8
27
14
Interest payable and similar expenses
7
(2)
-
0
Profit before taxation
1,497
1,876
Tax on profit
9
(377)
(445)
Profit for the financial year
20
1,120
1,431
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.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

IP TELECOM (HOLDINGS) LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
10
112
99
Current assets
Stocks
13
1,135
2,567
Debtors
14
3,619
2,739
Cash at bank and in hand
2,360
875
7,114
6,181
Creditors: amounts falling due within one year
15
(5,111)
(3,536)
Net current assets
2,003
2,645
Total assets less current liabilities
2,115
2,744
Creditors: amounts falling due after more than one year
16
(257)
(550)
Provisions for liabilities
Deferred tax liability
17
19
14
(19)
(14)
Net assets
1,839
2,180
Capital and reserves
Called up share capital
19
542
542
Share premium account
20
10
10
Capital redemption reserve
20
203
203
Profit and loss reserves
20
1,084
1,425
Total equity
1,839
2,180

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

The financial statements were approved by the board of directors and authorised for issue on 4 March 2025 and are signed on its behalf by:
04 March 2025
Mr G F Watts
Mr R E Baker
Director
Director
Company registration number 08242486 (England and Wales)
IP TELECOM (HOLDINGS) LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Investments
11
1,984
1,984
Current assets
-
-
Creditors: amounts falling due within one year
15
(1,172)
(1,172)
Net current liabilities
(1,172)
(1,172)
Net assets
812
812
Capital and reserves
Called up share capital
19
542
542
Share premium account
20
10
10
Capital redemption reserve
20
203
203
Profit and loss reserves
20
57
57
Total equity
812
812
The financial statements were approved by the board of directors and authorised for issue on 4 March 2025 and are signed on its behalf by:
04 March 2025
Mr G F Watts
Mr R E Baker
Director
Director
Company registration number 08242486 (England and Wales)
IP TELECOM (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
£000
Balance at 1 January 2023
542
10
203
1,905
2,660
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
1,431
1,431
Contributions to the Employee Ownership Trust as a gift
-
-
-
(1,911)
(1,911)
Balance at 31 December 2023
542
10
203
1,425
2,180
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
-
1,120
1,120
Contributions to the Employee Ownership Trust as a gift
-
-
-
(1,461)
(1,461)
Balance at 31 December 2024
542
10
203
1,084
1,839
IP TELECOM (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
£000
Balance at 1 January 2023
542
10
203
57
812
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
1,911
1,911
Contributions to the Employee Ownership Trust as a gift
-
-
-
(1,911)
(1,911)
Balance at 31 December 2023
542
10
203
57
812
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
-
1,461
1,461
Contributions to the Employee Ownership Trust as a gift
-
-
-
(1,461)
(1,461)
Balance at 31 December 2024
542
10
203
57
812
IP TELECOM (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from operations
24
3,449
1,425
Interest paid
(2)
-
0
Income taxes paid
(448)
(378)
Net cash inflow from operating activities
2,999
1,047
Investing activities
Purchase of tangible fixed assets
(80)
(11)
Interest received
27
14
Net cash (used in)/generated from investing activities
(53)
3
Financing activities
Contributions to the Employee Ownership Trust as a gift
(1,461)
(1,911)
Net cash used in financing activities
(1,461)
(1,911)
Net increase/(decrease) in cash and cash equivalents
1,485
(861)
Cash and cash equivalents at beginning of year
875
1,736
Cash and cash equivalents at end of year
2,360
875
IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information

IP Telecom (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Solutions Centre, 53-57 Knightsdale Road, Ipswich, IP1 4JQ.

 

The group consists of IP Telecom (Holdings) Limited 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 £000.

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

The 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 presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company IP Telecom (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 December 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.

1.4
Going concern

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

IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.5
Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

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.

Revenue from services is recognised as it is earned as the corresponding services are delivered.

Dividend income from investments is recognised when the shareholder's right to receive payment has been established.

1.6
Tangible fixed assets

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

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

Leasehold buildings
2 to 10 years
Fixtures & fittings
2 to 6 years

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 profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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.

1.8
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its fixed 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).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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 statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

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

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.

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.

Derecognition of financial assets

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

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.

IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies 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 receipts discounted at a market rate of interest.

 

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

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

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 income statement 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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

1.15
Retirement benefits

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

IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.16
Share-based payments

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is not recognised within the financial statements as the amount is insignificant.

1.17
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.

1.18
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 are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are 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 and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£000
£000
Turnover analysed by class of business
Equipment and consumables
46,857
51,668
Repairs, spares and maintenance
213
225
47,070
51,893
2024
2023
£000
£000
Turnover analysed by geographical market
United Kingdom
42,495
48,803
Europe
2,174
2,684
Rest of world
2,401
406
47,070
51,893
IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£000
£000
Other revenue
Interest income
27
14
Other operating income
37
68
4
Operating profit
2024
2023
£000
£000
Operating profit for the year is stated after charging:
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
10
4
Fees payable for the audit of the financial statements of the group, company and the company's subsidiaries
33
30
Depreciation of owned tangible fixed assets
67
63
(Profit)/loss on disposal of tangible fixed assets
-
9
Operating lease charges
249
248
5
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
Sales
28
31
-
-
Service and Support
23
25
-
-
Administration
30
29
3
3
Total
81
85
3
3

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Wages and salaries
3,537
3,477
-
0
-
0
Social security costs
378
359
-
-
Pension costs
118
107
-
0
-
0
4,033
3,943
-
0
-
0
IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
6
Directors' remuneration
2024
2023
£000
£000
Remuneration for qualifying services
428
527
Company pension contributions to defined contribution schemes
24
24
452
551

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£000
£000
Remuneration for qualifying services
207
268
Company pension contributions to defined contribution schemes
8
8
7
Interest payable and similar expenses
2024
2023
£000
£000
Other interest
2
-

 

8
Interest receivable and similar income
2024
2023
£000
£000
Interest income
Interest on bank deposits
27
14
9
Taxation
2024
2023
£000
£000
Current tax
UK corporation tax on profits for the current period
373
457
Adjustments in respect of prior periods
(1)
1
Total current tax
372
458
Deferred tax
Origination and reversal of timing differences
5
(13)
Total tax charge
377
445
IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 22 -

The increase in tax rate is due to the changes implemented in the Finance Act. The rate of 25% was applied from 1 April 2023, as such an effective rate of 23.52% has been applied in the 2023 year end, with the full rate of 25% being applied in the 2024 year end.

The charge for the year can be reconciled to the profit per the statement of total comprehensive income as follows:

2024
2023
£000
£000
Profit before taxation
1,497
1,876
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
374
441
Tax effect of expenses that are not deductible in determining taxable profit
2
2
Adjustments in respect of prior years
(1)
1
Fixed asset differences
2
2
Remeasurement for changes in tax rates
-
0
(1)
Taxation charge
377
445
10
Tangible fixed assets
Group
Leasehold buildings
Fixtures & fittings
Total
£000
£000
£000
Cost
At 1 January 2024
665
302
967
Additions
21
59
80
Disposals
-
0
(2)
(2)
At 31 December 2024
686
359
1,045
Depreciation and impairment
At 1 January 2024
591
277
868
Depreciation charged in the year
41
26
67
Eliminated in respect of disposals
-
0
(2)
(2)
At 31 December 2024
632
301
933
Carrying amount
At 31 December 2024
54
58
112
At 31 December 2023
74
25
99
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Investments in subsidiaries
12
-
0
-
0
1,984
1,984

In the opinion of the directors, the aggregate value of the company's investment in subsidiary undertakings is not less than the amount included within the balance sheet.

Movements in fixed asset investments
Company
Shares in subsidiaries
£000
Cost or valuation
At 1 January 2024 and 31 December 2024
1,984
Carrying amount
At 31 December 2024
1,984
At 31 December 2023
1,984
12
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Getech Ltd
Solutions Centre, Knightsdale Road, Ipswich, Suffolk, IP1 4JQ
Ordinary
0
100.00
IP Telecom Ltd
As above
Ordinary
100.00
-
13
Stocks
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Finished goods and goods for resale
1,135
2,567
-
0
-
0

The cost of stocks recognised as an expense in group accounts was £40,186,000 (2023: £44,754,000).

IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£000
£000
£000
£000
Trade debtors
3,452
2,658
-
0
-
0
Prepayments and accrued income
167
81
-
0
-
0
3,619
2,739
-
-
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Corporation tax payable
213
289
-
0
-
0
Other taxation and social security
162
184
-
0
-
0
Trade creditors
3,717
2,552
-
0
-
0
Amounts due to subsidiary undertakings
-
0
-
0
1,172
1,172
Accruals
1,019
511
-
0
-
0
5,111
3,536
1,172
1,172
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Deferred income
257
550
-
0
-
0
17
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Group
£000
£000
Accelerated capital allowances
24
20
General Provisions
(5)
(6)
19
14
The company has no deferred tax assets or liabilities.
IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Deferred taxation
(Continued)
- 25 -
Group
Company
2024
2024
Movements in the year:
£000
£000
Liability at 1 January 2024
14
-
Charge to profit or loss
5
-
Liability at 31 December 2024
19
-
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit and loss in respect of defined contribution schemes
118
107

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

19
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of 10p each
5,421,139
5,421,139
542
542

Called-up share capital represents the nominal value of shares that have been issued.

20
Reserves
Share premium

The share premium reserve is the difference between the nominal value of shares issued and the fair value of the consideration received.

Capital redemption reserve

There is a capital redemption reserve is in respect of shares repurchased by the company.

Profit and loss reserves

The profit and loss reserve includes all current and prior period retained profits and losses.

IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
21
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
£000
£000
£000
£000
Within one year
238
241
-
-
Between two and five years
25
219
-
-
263
460
-
-
22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£000
£000
Aggregate compensation
842
852
23
Controlling party

The group is controlled by Getech Employee Ownership Trust.

24
Cash generated from group operations
2024
2023
£000
£000
Profit after taxation
1,120
1,431
Adjustments for:
Taxation charged
377
445
Finance costs
2
-
0
Investment income
(27)
(14)
(Gain)/loss on disposal of tangible fixed assets
-
9
Depreciation and impairment of tangible fixed assets
67
63
Movements in working capital:
Decrease in stocks
1,432
163
(Increase)/decrease in debtors
(880)
1,220
Increase/(decrease) in creditors
1,619
(1,943)
(Decrease)/increase in deferred income
(261)
51
Cash generated from operations
3,449
1,425
IP TELECOM (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
25
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£000
£000
£000
Cash at bank and in hand
875
1,485
2,360
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