Company registration number 13258740 (England and Wales)
PURETECH ELECTRICAL PRODUCTS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PURETECH ELECTRICAL PRODUCTS LTD
COMPANY INFORMATION
Directors
Mr D Brown
Mr M Brown
Mrs J E Brown
Company number
13258740
Registered office
53 Kent Road
Southsea
Portsmouth
Hampshire
PO5 3HU
Auditor
Sumer Audit
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
Business address
4 Merlin Park
Airport Service Road
Portsmouth
Hampshire
PO3 5FU
PURETECH ELECTRICAL PRODUCTS LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
PURETECH ELECTRICAL PRODUCTS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

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

Review of the business

The principal activity of the company continued to be that of the supply of electrical, CCTV equipment and related products.

 

Turnover for the company for the financial year amounted to £14,347,957 (2023 - £12,887,849). Profit for the financial year after taxation was £19,981 (2023 - £36,414 loss). In the opinion of the directors, the company has traded satisfactorily in a very volatile and competitive market amidst very stiff competition and global economic pressures. The directors are satisfied with the overall performance of the company and they are confident that the company will retain its share of the market in the coming year, and indeed look to improve further.

Principal risks and uncertainties

Principle risks and uncertainties are:

 

Management risks

 

The management of the company is controlled by its three directors who are supported by a management team. Strategic matters and future development decisions are carried out by the board of directors.

 

Credit risk

 

The company has negligible credit risk as credit control is very tightly managed, with strict rules being laid down for every customer.

 

Financial risks

 

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

 

Operating risk

 

The company manages day to day operating risks by adapting best practice wherever possible. This process includes ensuring staff are properly trained and that industry standards and regulations are adhered to to the highest possible levels.

On behalf of the board

Mrs J E Brown
Director
9 April 2025
PURETECH ELECTRICAL PRODUCTS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of the supply of electrical, CCTV equipment and related products.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr D Brown
Mr M Brown
Mrs J E Brown
Future developments

The directors believe that there are currently no major future developments requiring disclosure.

Auditor

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

Strategic report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mrs J E Brown
Director
9 April 2025
PURETECH ELECTRICAL PRODUCTS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

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 company and of the profit or loss of the company 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 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.

PURETECH ELECTRICAL PRODUCTS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PURETECH ELECTRICAL PRODUCTS LTD
- 4 -
Opinion

We have audited the financial statements of Puretech Electrical Products Ltd (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 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:

PURETECH ELECTRICAL PRODUCTS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PURETECH ELECTRICAL PRODUCTS LTD
- 5 -
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 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 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.

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. 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, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: compliance with the UK Companies Act.

PURETECH ELECTRICAL PRODUCTS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PURETECH ELECTRICAL PRODUCTS LTD
- 6 -

In addition to the above, our procedures to respond to risks identified included the following:

 

 

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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.

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.

Alex Chidwick FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Audit
10 April 2025
Chartered Accountants
Statutory Auditor
Worthing
Sumer Audit is the trading name of Sumer Auditco Limited
PURETECH ELECTRICAL PRODUCTS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
as restated
Notes
£
£
Turnover
3
14,347,957
12,887,849
Cost of sales
(11,094,455)
(9,956,676)
Gross profit
3,253,502
2,931,173
Administrative expenses
(3,244,098)
(3,126,202)
Other operating income
64,262
181,420
Operating profit/(loss)
4
73,666
(13,609)
Interest payable and similar expenses
(11,708)
(55)
Profit/(loss) before taxation
61,958
(13,664)
Tax on profit/(loss)
7
(41,977)
(22,750)
Profit/(loss) for the financial year
19,981
(36,414)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PURETECH ELECTRICAL PRODUCTS LTD
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 8 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
8
76,204
41,606
Current assets
Stocks
9
4,683,388
4,962,660
Debtors
10
2,682,198
2,232,032
Cash at bank and in hand
59,905
79,141
7,425,491
7,273,833
Creditors: amounts falling due within one year
11
(3,496,157)
(5,811,424)
Net current assets
3,929,334
1,462,409
Total assets less current liabilities
4,005,538
1,504,015
Creditors: amounts falling due after more than one year
12
(3,431,771)
(1,529,927)
Provisions for liabilities
Deferred tax liability
14
19,051
10,402
(19,051)
(10,402)
Net assets/(liabilities)
554,716
(36,314)
Capital and reserves
Called up share capital
16
102
100
Capital contribution reserve
17
571,047
-
0
Profit and loss reserves
(16,433)
(36,414)
Total equity
554,716
(36,314)

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

The financial statements were approved by the board of directors and authorised for issue on 9 April 2025 and are signed on its behalf by:
Mrs J E Brown
Director
Company registration number 13258740 (England and Wales)
PURETECH ELECTRICAL PRODUCTS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
Share capital
Capital contribution reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 30 April 2023:
Balance at 1 May 2022
100
-
-
0
100
Year ended 30 April 2023:
Loss and total comprehensive income
-
-
(36,414)
(36,414)
Balance at 30 April 2023
100
-
(36,414)
(36,314)
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
19,981
19,981
Issue of share capital
16
2
-
-
2
Transfers
17
-
571,047
-
0
571,047
Balance at 30 April 2024
102
571,047
(16,433)
554,716
PURETECH ELECTRICAL PRODUCTS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
20
(88,014)
(6,955,266)
Interest paid
(11,708)
(55)
Net cash outflow from operating activities
(99,722)
(6,955,321)
Investing activities
Purchase of tangible fixed assets
(52,165)
(45,221)
Net cash used in investing activities
(52,165)
(45,221)
Financing activities
Proceeds from issue of shares
2
-
0
Proceeds from borrowings
-
0
6,584,413
Repayment of borrowings
(24,527)
(500,000)
Net cash (used in)/generated from financing activities
(24,525)
6,084,413
Net decrease in cash and cash equivalents
(176,412)
(916,129)
Cash and cash equivalents at beginning of year
(916,029)
100
Cash and cash equivalents at end of year
(1,092,441)
(916,029)
Relating to:
Cash at bank and in hand
59,905
79,141
Bank overdrafts included in creditors payable within one year
(1,152,346)
(995,170)
PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information

Puretech Electrical Products Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 53 Kent Road, Southsea, Portsmouth, Hampshire, PO5 3HU.

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 £1.

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

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.true

 

There is loan payable to a connected company, included within non-current creditors in note 13. Subject to an agreement between the directors, who are common to both companies, repayment is due to start 24 months from the balance sheet date, and also will not be due for repayment until the company is in a position to do so. The directors have assessed the company’s ability to continue as a going concern and are confident that the loan arrangement will not impact the company’s ability to continue operating as a going concern.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

1.4
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:

Plant and equipment
20% - straight line
Computers
20% - 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 credited or charged to profit or loss.

PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of fixed assets

At each reporting period end date, the company 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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities including trade and other accounts receivable and payable, loans from banks and loans from related parties.

 

Debt instruments including loans and other accounts receivable and payable are initially measured at transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

 

The company also enters into other financial instruments in the use of forward foreign currency contracts in order to reduce exposure to foreign exchange rates.

 

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
Taxation

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

PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
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.

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.

1.11
Employee benefits

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

1.12
Retirement benefits

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

1.13
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.

1.14
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 company’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.

PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 14 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provision

The directors have made key assumptions in determining the appropriate impairment provision against stock items held at the end of the reporting period. This provision takes into consideration a number of factors including slow moving items. At the financial reporting date, the provision made against stock was £500,000 (2023 - £500,000).

Connected company loans

The directors have made an assumption that loans owed by connected companies, amounting to £844,217 (2023 - £69,508) are fully recoverable and, accordingly, no provision for impairment is considered necessary. This assumption is based on the expectation that the connected companies will have the financial capacity to repay the loans in full or can transfer inventory, considering factors such as the financial position, ongoing operations, and future prospects of these companies.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
14,347,957
12,887,849
2024
2023
£
£
Turnover analysed by geographical market
Europe
693,335
622,779
United Kingdom
13,632,395
12,245,105
Rest of the world
22,227
19,965
14,347,957
12,887,849
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange gains
(116,149)
(98,934)
Fees payable to the company's auditor for the audit of the company's financial statements
7,500
6,500
Depreciation of owned tangible fixed assets
17,567
3,615
Operating lease charges
324,949
324,873
PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
5
Employees

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

2024
2023
Number
Number
Administration
9
8
Director
1
1
Operations
14
13
Production
6
6
Sales
11
10
Total
41
38

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,740,675
1,801,495
Social security costs
145,588
140,805
Pension costs
32,027
28,147
1,918,290
1,970,447
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
12,570
78,161
Company pension contributions to defined contribution schemes
2,829
2,829
15,399
80,990

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
38,898
12,348
Adjustments in respect of prior periods
(5,571)
-
0
Total current tax
33,327
12,348
PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
7
Taxation
2024
2023
£
£
(Continued)
- 16 -
Deferred tax
Origination and reversal of timing differences
8,650
10,402
Total tax charge
41,977
22,750

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

2024
2023
£
£
Profit/(loss) before taxation
61,958
(13,664)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
15,490
(2,664)
Tax effect of expenses that are not deductible in determining taxable profit
33,362
24,905
Adjustments in respect of prior years
(5,571)
-
0
Other timing differences
(1,304)
509
Taxation charge for the year
41,977
22,750
8
Tangible fixed assets
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 May 2023
30,555
14,666
45,221
Additions
30,624
21,541
52,165
At 30 April 2024
61,179
36,207
97,386
Depreciation and impairment
At 1 May 2023
2,374
1,241
3,615
Depreciation charged in the year
11,491
6,076
17,567
At 30 April 2024
13,865
7,317
21,182
Carrying amount
At 30 April 2024
47,314
28,890
76,204
At 30 April 2023
28,181
13,425
41,606
PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
9
Stocks
2024
2023
as restated
£
£
Finished goods and goods for resale
4,683,388
4,962,660
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,690,816
2,109,247
Other debtors
844,217
69,803
Prepayments and accrued income
147,165
52,982
2,682,198
2,232,032

The directors have confirmed, with regards to the amounts owed by connected companies, an amount totalling £844,217 (2023 - £69,508) included within other debtors, that although this balance is repayable on demand and hence receivable within one year, no repayment of the balance will be sought until the creditor company is in a position to make such payment. It is anticipated that this will not be for at least two years from the statement of financial position date.

11
Creditors: amounts falling due within one year
2024
2023
as restated
Notes
£
£
Bank loans and overdrafts
13
1,152,346
995,170
Other borrowings
13
2,057,068
4,554,486
Trade creditors
151,618
136,349
Corporation tax
45,675
12,348
Other taxation and social security
57,811
97,556
Other creditors
-
0
871
Accruals and deferred income
31,639
14,644
3,496,157
5,811,424

The short term bank borrowings are secured by a fixed and floating charge over the assets of the company.

12
Creditors: amounts falling due after more than one year
2024
2023
as restated
Notes
£
£
Other borrowings
13
3,431,771
1,529,927
PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
13
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
1,152,346
995,170
Loans from related parties
2,057,068
4,554,486
Other loans
3,431,771
1,529,927
6,641,185
7,079,583
Payable within one year
3,209,414
5,549,656
Payable after one year
3,431,771
1,529,927

The bank loans and overdrafts are secured by fixed and floating charges over the assets of the company.

 

The other loans have been discounted as per note 17.

14
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
19,051
10,402
2024
Movements in the year:
£
Liability at 1 May 2023
10,402
Charge to profit or loss
8,649
Liability at 30 April 2024
19,051

The directors have considered the deferred tax liabilities note above and concluded that it is not possible to state the estimated liabilities which will reverse within the next 12 months. This is due to the level of reversal being dependent on events which are not yet known.

15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,027
28,147

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
102
100
102
100

Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. Two ordinary shares were issued during the year.

17
Capital contribution reserve
2024
2023
£
£
At the beginning of the year
-
-
Additions
571,047
-
At the end of the year
571,047
-

This capital contribution relates to a discounting charge, on the non-current connected company loan included within other loans in note 13, as no interest is charged on this balance. This balance is non-distributable and the directors do not believe that any discounting on the prior year balance would be material.

18
Financial commitments, guarantees and contingent liabilities

There is an unlmited cross company guarantee between the company, QVIS Lighting & Security Limited, A-Data Limited and QVIS Monitoring Limited.

19
Related party transactions

During the year the company entered into the following transactions with related parties:

 

Adata Limited is a company controlled by Joanna Brown, one of the directors. During the year, the company purchased goods amounting to £2,354,238 (2023 - £2,690,155) from Adata Limited and sold goods amounting to £4,784 (2023 - £1,743,639) to the same company. The company paid rent charges amounting to £100,000 (2023 - £125,000) to Adata Limited. At 30 April 2024 the company owed £3,431,771 (2023 - £1,529,927) to Adata Limited.

 

Qvis Lighting & Security Limited is a company under common control. During the year the company purchased good amounting to £7,887,349 (2023 - £12,861,154) from Qvis Lighting and Security Limited and sold goods amounting to £2,747,199 (2023 - £Nil) to the same company. The company also received management charges amounting to £75,915 (2023 - £Nil) from the same company. At 30 April 2024 the company owed £2,045,879 (2023 - £4,554,487) to Qvis Lighting & Security Limited.

 

Qvis Lighting and Security Ireland Limited is a company under common control. During the year the company purchased good amounting to £19,657 (2023 - £Nil) from Qvis Lighting and Security Ireland Limited sold goods amounting to £546,804 (2023 - £614,451) to the same company. At 30 April 2024 the company was owed £706,973 (2023 - £614,451) by the related undertaking.

 

Global Prestige Solutions Limited is a company under common control. During the year the company sold goods amounting to £22,231 (2023 - £Nil). At 30 April 2024 the company was owed £79,785 (2023 - £Nil) by the related undertaking.

PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
19
Related party transactions
(Continued)
- 20 -

QVIS Monitoring Limited is a company under common control. At 30 April 2024 the company was owed £57,647 (2023 - £Nil) by the related undertaking.

20
Cash absorbed by operations
2024
2023
£
£
Profit/(loss) for the year after tax
19,981
(36,414)
Adjustments for:
Taxation charged
41,977
22,750
Finance costs
11,708
55
Depreciation and impairment of tangible fixed assets
17,567
3,615
Movements in working capital:
Decrease/(increase) in stocks
279,272
(4,962,660)
Increase in debtors
(450,166)
(2,232,032)
(Decrease)/increase in creditors
(8,353)
249,420
Cash absorbed by operations
(88,014)
(6,955,266)
21
Analysis of changes in net debt
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
79,141
(19,236)
59,905
Bank overdrafts
(995,170)
(157,176)
(1,152,346)
(916,029)
(176,412)
(1,092,441)
Borrowings excluding overdrafts
(6,084,413)
24,527
(5,488,839)
(7,000,442)
(151,885)
(6,581,280)
22
Prior period adjustment

The comparative period financial statements have been restated to incorporate the impact of a correction to the accounting estimate in relation to a stock provision. This restatement has increased the provision in the prior year by £500,000 and reduced the brought forward retained earnings by the same amount.

 

The comparative period financial statements have also been restated to incorporate the impact of a write-off of an element of a connected company loan, included in long-term other borrowings, in relation to a purchase of stock from this connected company in a prior year. This restatement has reduced the long-term creditor in the prior year by £500,000 and increased the brought forward retained earnings by the same amount.

 

The comparative period financial statements have also been restated to incorporate a correction of moving a connected company loan from short to long-term creditors, as per the total balance in other borrowings as shown in note 12.

PURETECH ELECTRICAL PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
22
Prior period adjustment
(Continued)
- 21 -
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in loss for the previous financial period
2023
£
Total adjustments
-
Loss as previously reported
(36,414)
Loss as adjusted
(36,414)
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