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REGISTERED NUMBER: 07681824 (England and Wales)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 June 2024

for

Pinnacle Electrical Supplies Ltd

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)






Contents of the Financial Statements
for the Year Ended 30 June 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Profit or Loss 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Pinnacle Electrical Supplies Ltd

Company Information
for the Year Ended 30 June 2024







DIRECTORS: A S Knight
D M Potts





REGISTERED OFFICE: Unit 4
Turbine Road
Turbine Business Park
Birkenhead
Merseyside
CH41 9BA





REGISTERED NUMBER: 07681824 (England and Wales)





INDEPENDENT AUDITORS: Haines Watts
Statutory Auditor
3rd Floor Pacific Chambers
11-13 Victoria Street
Liverpool
Merseyside
L2 5QQ

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Strategic Report
for the Year Ended 30 June 2024

The directors present their strategic report for the year ended 30 June 2024.

PRINCIPAL ACTIVITIES
The principal activity of the company during the year was the distribution of electrical components and supplies.

REVIEW OF BUSINESS
Sales for the 12-month period to June 2024 were broadly in line with the previous year as the economic headwinds alluded to in last year's report continued to blow. Pleasingly, the gross margin improved over the period. Overheads were higher than the prior year as the company invested in additional staff, particularly in sales, to support its future growth plans. Lower sales than anticipated and higher overheads resulted in lower operating profit at 5% of sales compared with 6% last year.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the company's strategy are subject to a number of risks that are set out below:

Trade Receivables
The company insures all trade receivables. Trading in excess of insured limits is approved at board level.

Cost Price Fluctuations
The company is exposed to fluctuation in cost prices from suppliers, often driven by exchange rate fluctuations and supply side bottle necks, as during the Covid pandemic. All participants in the UK electrical distribution sector are exposed to the same risks. Furthermore, prices to customers are set by a discount off the standard trade price. Customers, in general, understand that prices move in line with changes in the trade price of goods.

Supplier Failure
As a distributor, the company is exposed to the failure or closure of an OEM supplier. The company has access to alternative suppliers for all its key product lines.

Interest Rates
The company is exposed to changes in the UK Base Rate as all our banking facilities are based on a margin over the UK bank base rate. Notwithstanding interest rates remaining at a cyclical high, interest cover for the 12 months to June 2024 was a healthy 3.3 times.

Financial Liquidity
The company may need access to short term funds to satisfy working capital requirements. The company maintains a committed invoice finance facility significantly in excess of planned requirements.

Information Technology Systems
Maintaining accurate product and customer records are critical to be able to process customer orders accurately and efficiently. The company uses third party software in all areas. IT risks, including cyber and ransom attacks are reviewed by the board with the help of an external IT consultant. IT security is continually monitored and upgraded including training for staff to eliminate, as far as possible, elementary security risks.


Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Strategic Report
for the Year Ended 30 June 2024

SECTION 172(1) STATEMENT
The directors consider that they have acted in a manner that is most likely to promote the success of the group for the benefit of all stakeholders, and in doing so, have had regard to all the stakeholders and matters set down in section 172 of the Companies Act 2006.
The key stakeholders and method of engagement have been identified as follows:

Shareholders - the company provides regular monthly reports to its shareholders along with the annual budget and year end audited results.

Employees - effective two-way communication with our staff is a priority.

Customers - understanding our customers and fulfilling their needs is a key differentiator for Pinnacle.

Suppliers - our outbound service to our customers can never be better than our inbound supply. Building long-term mutually beneficial relationships with suppliers is a key component of our strategy.

FUTURE DEVELOPMENTS
We intend to develop and grow the business by:

- Continuing to focus on organic growth through increased product lines and acquiring new customers;
- Maintaining tight control over operating costs so that increases in sales drive an improvement in operating
margins; and
- Using surplus cash generated to pay down debt.

KEY PERFORMANCE INDICATORS ("KPI")
The following KPIs are used to monitor performance:

- Sales and sales growth
- % Gross profit : sales
- % Operating profit : sales
- Days working capital employed : 3 month average sales

Given the nature of the business, the use of non-financial KPIs is deemed to provide limited additional analysis of the performance of the company and as such these are not tracked by management.

OUTLOOK
Whilst sales growth last year was modest due to the economic and sector headwinds, trading in the first four months of the current year has been much more encouraging. The reduction in interest rates, albeit gradual, should have a positive effect in the medium term. In general, the new government's priorities around reducing planning regulations and investing in new infrastructure should provide good support for future growth in our sector. Our drive into new product areas, renewables in particular, is beginning to pay dividends. Adding new customer growth to this, we are anticipating decent sales growth in the year ahead.

ON BEHALF OF THE BOARD:





D M Potts - Director


20 December 2024

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Report of the Directors
for the Year Ended 30 June 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.

DIVIDENDS
No further dividend payments will be made until all bank loans have been repaid.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
A S Knight has held office during the whole of the period from 1 July 2023 to the date of this report.

Other changes in directors holding office are as follows:

D M Potts - appointed 26 September 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the company financial statements in accordance with United Kingdom generally accepted accounting practice (United Kingdom Accounting Standards, comprising FRS 102 ‘The financial reporting standard applicable in the UK and Republic of Ireland’, and applicable law).

Under company law, directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to:

-Select suitable accounting policies and then apply them consistently;
-State whether applicable United Kingdom Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements;
-Make judgements and accounting estimates that are reasonable and prudent; and.
-Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Report of the Directors
for the Year Ended 30 June 2024


AUDITORS
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



D M Potts - Director


20 December 2024

Report of the Independent Auditors to the Members of
Pinnacle Electrical Supplies Ltd

Opinion
We have audited the financial statements of Pinnacle Electrical Supplies Ltd (the 'company') for the year ended 30 June 2024 which comprise the Statement of Profit or Loss, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Pinnacle Electrical Supplies Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

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.The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principle risks were related to inflated income and surplus.

Report of the Independent Auditors to the Members of
Pinnacle Electrical Supplies Ltd

Audit procedures performed included:

- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
- Reviewing financial statements disclosures and testing to supporting documentation to assess compliance with applicable law and regulations;
- Challenging assumptions and judgements made by management in its significant accounting estimates;
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

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.




Michael Forshaw (Senior Statutory Auditor)
for and on behalf of Haines Watts
Statutory Auditor
3rd Floor Pacific Chambers
11-13 Victoria Street
Liverpool
Merseyside
L2 5QQ

20 December 2024

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Statement of Profit or Loss
for the Year Ended 30 June 2024

30.6.24 30.6.23
Notes £ £

TURNOVER 3 12,062,960 11,936,000

Cost of sales 9,280,412 9,344,941
GROSS PROFIT 2,782,548 2,591,059

Administrative expenses 2,184,658 1,861,680
OPERATING PROFIT 5 597,890 729,379


Interest payable and similar expenses 6 180,731 132,344
PROFIT BEFORE TAXATION 417,159 597,035

Tax on profit 7 130,582 145,053
PROFIT FOR THE FINANCIAL YEAR 286,577 451,982

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

286,577

451,982

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Statement of Financial Position
30 June 2024

30.6.24 30.6.23
Notes £ £ £ £
FIXED ASSETS
Intangible assets 9 - 2
Tangible assets 10 311,252 222,664
311,252 222,666

CURRENT ASSETS
Stocks 11 1,449,514 1,515,471
Debtors 12 5,040,619 4,120,523
Cash at bank 357,320 252,578
6,847,453 5,888,572
CREDITORS
Amounts falling due within one year 13 5,282,455 4,554,319
NET CURRENT ASSETS 1,564,998 1,334,253
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,876,250

1,556,919

CREDITORS
Amounts falling due after more than one
year

14

(215,232

)

(217,823

)

PROVISIONS FOR LIABILITIES 18 (54,495 ) (19,150 )
NET ASSETS 1,606,523 1,319,946

CAPITAL AND RESERVES
Called up share capital 19 100 100
Retained earnings 20 1,606,423 1,319,846
SHAREHOLDERS' FUNDS 1,606,523 1,319,946

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2024 and were signed on its behalf by:





D M Potts - Director


Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Statement of Changes in Equity
for the Year Ended 30 June 2024

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 July 2022 100 1,846,864 1,846,964

Changes in equity
Dividends - (979,000 ) (979,000 )
Total comprehensive income - 451,982 451,982
Balance at 30 June 2023 100 1,319,846 1,319,946

Changes in equity
Total comprehensive income - 286,577 286,577
Balance at 30 June 2024 100 1,606,423 1,606,523

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements
for the Year Ended 30 June 2024

1. STATUTORY INFORMATION

Pinnacle Electrical Supplies Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 £.

Financial Reporting Standard 102 - reduced disclosure exemptions
This company is a qualifying entity for the purposes of FRS 102, being a member of group where the parent of that group prepares publically 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:

- the requirements of Section 7 Statement of Cash Flows;
- the requirements of paragraph 33.7, in relation to disclosure of remuneration of key management
personnel

The financial statements of the company are consolidated in the financial statements of Gipfel Electrical Holdings Limited. These consolidated financial statements are available from the registered office, Unit 4 Turbine Road, Wirral, Merseyside, England, CH41 9BA.

Significant judgements and estimates
Management have assessed that there are no significant judgements or estimates that have had a material effect on amounts recognised in the financial statements.

Turnover
Turnover represents net invoiced sales from the supply of electrical equipment and parts and is measured at the fair value of consideration received or receivable, value added tax and other sales taxes. Turnover is net of all customer rebates and discounts. Turnover is recognised as the goods are provided.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

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.

Gains and losses arising on the disposal of an asset are determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss in the the gain or loss arises.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the term of the lease, whichever is the shorter.


Plant and machinery- 25% on cost
Fixtures and fittings- 25% on cost
Motor vehicles- 20% to 25% on cost
Computer equipment - 25% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value.

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's Statement of Financial Position when the company becomes party to the contractual provision 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 trade, group and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at market rate of interest.

Financial assets classified as receivable within one year are not amortised.

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

Basic financial liabilities
Basic financial liabilities, including trade, group and other creditors and other borrowings are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Financial liabilities are derecognised when the company's contractual obligations expire or are discharge or cancelled.


Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Profit or Loss, 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

3. TURNOVER

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

All turnover has been generated within the United Kingdom.

4. EMPLOYEES AND DIRECTORS
30.6.24 30.6.23
£ £
Wages and salaries 1,163,528 946,793
Social security costs 146,085 96,593
Other pension costs 95,769 136,155
1,405,382 1,179,541

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
30.6.24 30.6.23

Office and warehouse 29 28

30.6.24 30.6.23
£ £
Directors' remuneration 132,343 30,420
Directors' pension contributions to money purchase schemes 48,591 42,102

5. OPERATING PROFIT

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

30.6.24 30.6.23
£ £
Depreciation - owned assets 20,189 27,785
Depreciation - assets on hire purchase contracts 66,982 13,093
Profit on disposal of fixed assets (1,050 ) -
Computer software amortisation 2 3,338
Auditors' remuneration 8,000 8,000

6. INTEREST PAYABLE AND SIMILAR EXPENSES
30.6.24 30.6.23
£ £
Bank loan interest 3,828 3,639
Invoice finance interest 160,391 122,678
Hire purchase 16,512 6,027
180,731 132,344

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30.6.24 30.6.23
£ £
Current tax:
UK corporation tax 95,237 139,453

Deferred tax 35,345 5,600
Tax on profit 130,582 145,053

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

7. TAXATION - continued

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

30.6.24 30.6.23
£ £
Profit before tax 417,159 597,035
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 20.500%)

104,290

122,392

Effects of:
Expenses not deductible for tax purposes 27,209 22,550
Capital allowances in excess of depreciation (27,313 ) (5,489 )
Adjustments to tax charge in respect of previous periods 17,870 -

Deferred tax 35,345 5,600
Group losses (26,819 ) -
Total tax charge 130,582 145,053

8. DIVIDENDS
30.6.24 30.6.23
£ £
Ordinary shares of 1 each
Final - 979,000

9. INTANGIBLE FIXED ASSETS
Computer
software
£
COST
At 1 July 2023
and 30 June 2024 16,700
AMORTISATION
At 1 July 2023 16,698
Amortisation for year 2
At 30 June 2024 16,700
NET BOOK VALUE
At 30 June 2024 -
At 30 June 2023 2

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£ £ £ £ £
COST
At 1 July 2023 44,323 210,308 350,854 10,923 616,408
Additions 176 3,340 149,157 23,086 175,759
Disposals - - (38,199 ) - (38,199 )
At 30 June 2024 44,499 213,648 461,812 34,009 753,968
DEPRECIATION
At 1 July 2023 43,589 181,782 157,597 10,776 393,744
Charge for year 537 13,636 67,895 5,103 87,171
Eliminated on disposal - - (38,199 ) - (38,199 )
At 30 June 2024 44,126 195,418 187,293 15,879 442,716
NET BOOK VALUE
At 30 June 2024 373 18,230 274,519 18,130 311,252
At 30 June 2023 734 28,526 193,257 147 222,664

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£
COST
At 1 July 2023 245,737
Additions 75,675
At 30 June 2024 321,412
DEPRECIATION
At 1 July 2023 39,542
Charge for year 66,982
At 30 June 2024 106,524
NET BOOK VALUE
At 30 June 2024 214,888
At 30 June 2023 206,195

11. STOCKS
30.6.24 30.6.23
£ £
Stocks 1,449,514 1,515,471

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£ £
Trade debtors 3,075,428 2,602,301
Amounts owed by group undertakings 1,626,709 948,112
Accrued income 174,559 258,549
Prepayments 163,923 311,561
5,040,619 4,120,523

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£ £
Bank loans and overdrafts (see note 15) 20,007 19,998
Hire purchase contracts (see note 16) 51,063 50,319
Trade creditors 1,687,609 1,859,415
Amounts owed to group undertakings 673,779 728,406
Tax 28,283 121,583
Social security and other taxes 174,328 41,407
Other creditors 163,836 71,741
Invoice Financing 2,175,125 1,316,345
Accruals and deferred income 308,425 345,105
5,282,455 4,554,319

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.6.24 30.6.23
£ £
Bank loans (see note 15) 20,007 39,997
Hire purchase contracts (see note 16) 195,225 177,826
215,232 217,823

15. LOANS

An analysis of the maturity of loans is given below:

30.6.24 30.6.23
£ £
Amounts falling due within one year or on demand:
Bank loans 20,007 19,998

Amounts falling due between one and two years:
Bank loans - 1-2 years 20,007 39,997

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
30.6.24 30.6.23
£ £
Net obligations repayable:
Within one year 51,063 50,319
Between one and five years 195,225 177,826
246,288 228,145

Non-cancellable
operating leases
30.6.24 30.6.23
£ £
Within one year 72,982 96,386
Between one and five years 63,705 180,393
136,687 276,779

17. SECURED DEBTS

The following secured debts are included within creditors:

30.6.24 30.6.23
£ £
Hire purchase contracts 246,288 228,145
Invoice financing 1,988,856 1,316,345
2,235,144 1,544,490

Hire purchase liabilities are secured against the assets to which they relate. Arbuthnot Commercial Asset Based Lending Limited holds a Fixed Charge over the intellectual property and book debts against the name of the company; and Floating Charge over all property or undertaking of the company dated 6 April 2022. This covers all existing and future liabilities across the Pinnacle Group.

18. PROVISIONS FOR LIABILITIES
30.6.24 30.6.23
£ £
Deferred tax 54,495 19,150

Deferred tax
£
Balance at 1 July 2023 19,150
Charge to Statement of Profit or Loss during year 35,345
Balance at 30 June 2024 54,495

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.24 30.6.23
value: £ £
100 Ordinary 1 100 100

The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.

20. RESERVES
Retained
earnings
£

At 1 July 2023 1,319,846
Profit for the year 286,577
At 30 June 2024 1,606,423

Retained earnings are the cumulative profit and loss, net of distribution to owners.

21. PENSION COMMITMENTS

A defined contribution pension scheme is operated by the company. The assets of the scheme are held separately from those of the company in an independently administered fund. At 30 June 2024 pension contributions of £4,715 (2023: £3,666) were payable and included within other creditors.

22. OTHER FINANCIAL COMMITMENTS

The company is a chargor in relation to the secured debts held by Arbuthnot individually with Gipfel Electrical Holdings Limited, Pinnacle Electrical Supplies (Bolton) Limited and Pinnacle Plumbing and Heating Limited.

23. RELATED PARTY DISCLOSURES

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.

Included in creditors at the year end is an amount of £502,258 (2023: £475,523) owing to Pinnacle Electrical Supplies (Bolton) Limited. The balance relates to an unsecured, interest free loan which is repayable on demand.

24. POST BALANCE SHEET EVENTS

The company has been made a chargor to the secured debt held by Arbuthnot with Pinnacle Electrical Supplies (Oldham) Limited, a company connected through the common ownership of Pinnacle UK Group Limited.

Pinnacle Electrical Supplies Ltd (Registered number: 07681824)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

25. ULTIMATE CONTROLLING PARTY

The company is a subsidiary undertaking of Pinnacle UK Group Limited, a company registered in England and Wales.

Pinnacle UK Group Limited is the immediate parent company of Pinnacle Electrical Supplies Ltd

For the year ended 30 June 2024, the parent of the smallest group for which consolidated accounts are drawn up of which the small entity is a member is Gipfel Electrical Holdings Limited. Copies of the group accounts are available from Unit 4 Turbine Road, Wirral, Merseyside, England, CH41 9BA.

The ultimate controlling party is Gipfel Electrical Holdings Limited.