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Registration number: 11497275

Picocom Technology Limited

Filleted Financial Statements

for the Year Ended 31 December 2024

Pages for filing with Registrar

 

 

Picocom Technology Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 13

 

Picocom Technology Limited

Company Information

Directors

A P J Claydon

Y Jiang

Registered office

1st Floor
25 King Street
Bristol
BS1 4PB

Registered number

11497275

Auditors

Corrigan Accountants Limited 1st Floor
25 King Street
Bristol
BS1 4PB

 

Picocom Technology Limited

(Registration number: 11497275)
Balance Sheet as at 31 December 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

6

20,409

100,000

Current assets

 

Stocks

2,116,859

1,958,696

Debtors

7

177,465

902,877

Cash at bank and in hand

 

287,401

349,117

 

2,581,725

3,210,690

Creditors: Amounts falling due within one year

8

(1,169,919)

(994,425)

Net current assets

 

1,411,806

2,216,265

Net assets

 

1,432,215

2,316,265

Capital and reserves

 

Called up share capital

9

24,714,394

24,714,394

Share application reserve

12

1,000,000

1,000,000

Profit and loss account

(24,282,179)

(23,398,129)

Total equity

 

1,432,215

2,316,265

 

Picocom Technology Limited

(Registration number: 11497275)
Balance Sheet as at 31 December 2024

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised for issue by the Board on 25 April 2025 and signed on its behalf by:
 

.........................................

A P J Claydon
Director

.........................................

Y Jiang
Director

 

Picocom Technology Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

1

Statutory information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
1st Floor
25 King Street
Bristol
BS1 4PB

2

Accounting policies

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

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

 

Picocom Technology Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Going concern

The financial statements of the company have been prepared on a going concern basis, based on the belief that current and future funding sources will sufficiently meet the company's needs. The directors have assessed the situation over a twelve-month period from the date of the financial statement approval. Currently, the company is operating at a loss and depends on the ongoing support of its parent company to fulfil third-party obligations as they arise. In evaluating the company's funding status, the directors have also considered the overall outlook for the wider group.

The group's forecasts indicate that it will sustain adequate funding through investments from external sources and increased sales. However, there is inherent uncertainty associated with these projections. Until a binding commitment for additional funding is secured, a material uncertainty exists that could significantly impact the company's ability to continue as a going concern.

The directors are confident that the group will successfully obtain additional funding from investors and increase sales. The parent company has provided a supporting letter confirming its commitment to support Picocom UK for at least 12 months from the date of financial statement approval. Given this assurance, the directors believe that the parent company will continue to provide support in the foreseeable future, and thus the financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of withholding tax, value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Revenue from the sale of goods such as semi-conductive devices is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, which is usually on dispatch.

Revenue from the sale of licences is recognised in full when there are no significant remaining obligations to perform after delivery, usually upon licence key activation date.

Revenue earned from the supply of support services is recognised straight line on a monthly basis over the period specified in the underlying agreement, where these services are provided by an indeterminate number of acts.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into sterling at the rates prevailing on the reporting period date. Exchange gains and losses are taken to profit and loss and classified within Administrative expenses.

 

Picocom Technology Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible fixed assets

Tangible fixed assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible fixed assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is charged so as to write off the cost of assets as follows:

Furniture, fittings and equipment

Straight line over 4 years

Other tangible assets

Straight line over 3 years

Intangible fixed assets

Intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets so as to write off the cost, over the period of the licence or economic useful life as follows:

Licences

33% straight line

Computer software

33% straight line

Impairment review

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss.

Research and development costs

Research and development costs are written off to profit or loss in the year incurred.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

 

Picocom Technology Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Trade debtors

Trade debtors are recognised initially at the transaction price. They are subsequently measured less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods comprises direct material costs. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised
cost and using the effective interest method if the balance is due in more than one year.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Any subscription funds received in advance of a share issue are credited to the share application reserve until such time when the shares are issued, when the funds are transferred to share capital and, if applicable, the share premium reserve.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Picocom Technology Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Employee benefits

The costs of short-term employee benefits, including the cost of any unused holiday entitlement, are recognised in the period in which the employees' services are received.

3

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.

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

Going concern assessment (see note 2)

The Board’s going concern assessment is summarised in note 2. The assessment includes judgements regarding the likelihood of the parent company completing a future equity fundraising; the likelihood of sufficient funds being raised for the group; and the likelihood of the parent company advancing the funds which this subsidiary requires. Estimates regarding future sales of the company impact the level of funds which management expects to require from the parent company.

Useful economical lives of intangible and tangible fixed assets and review of assets for impairment (see notes 5 and 6)
The annual amortisation and depreciation charges for intangible and tangible fixed assets respectively are sensitive to any changes in the estimated useful life and residual values of those assets. The useful economic lives and residual value is assessed on an annual basis and are amended only when evidence shows a change in the estimated economic lives or residual life. Factors used to assess an asset’s economic life and residual value might include advances in technology, condition of the asset, future investment (if further funds are needed to complete the development of an asset, for example), and / or changes in customer demand.

In addition to the above, note 2 explains that fixed assets are reviewed annually for impairment. An impairment review may include an assessment of the expected sales and profits of those products which are related to the relevant fixed assets and the business unit of which they are a part. This forecast of future business performance is therefore inherently uncertain. As explained in note 6 the impairment review as at 31 December 2023 resulted in the recognition of an impairment loss. No further impairment was identified during the review as at 31 December 2024.

Assessment of stocks for impairment
 

 

Picocom Technology Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Note 2 explains that stocks are assessed for impairment at each reporting date. 31 December 2024 stocks of £2,116,859 (2023: £1,958,696) exceed the value of stocks sold in 2024 to date, and therefore there is estimation involved in this assessment. In making their assessment, management estimate the likelihood, timing, size and profitability of future sales. Should the 31 December 2024 stock balance not be recovered via future profitable sales then an impairment expense will be charged against results for 2025 or later, depending on the period in which the estimate of future sales is revised.

4

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 14 (2023 - 31).

5

Intangible fixed assets

Software
 £

Licences
£

Total
£

Cost

At 1 January 2024

560,353

2,907,849

3,468,202

At 31 December 2024

560,353

2,907,849

3,468,202

Amortisation

At 1 January 2024

560,353

2,907,849

3,468,202

At 31 December 2024

560,353

2,907,849

3,468,202

Carrying amount

At 31 December 2024

-

-

-

At 31 December 2023

-

-

-

As explained in note 3, an impairment review includes judgements and estimation regarding, amongst other factors, the timing and size of future sales. The impairment review as at 31 December 2023 did conclude that the above assets were impaired by £162,004, which was recognised as an impairment loss in the year ended 31 December 2023.

 

Picocom Technology Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

6

Tangible fixed assets

Furniture, fittings and equipment
 £

Other tangible assets
£

Total
£

Cost

At 1 January 2024

186,840

829,502

1,016,342

Additions

-

7,504

7,504

At 31 December 2024

186,840

837,006

1,023,846

Depreciation

At 1 January 2024

186,840

729,502

916,342

Charge for the year

-

87,095

87,095

At 31 December 2024

186,840

816,597

1,003,437

Carrying amount

At 31 December 2024

-

20,409

20,409

At 31 December 2023

-

100,000

100,000

Management's impairment review as at 31 December 2023 concluded that the above assets were impaired by £371,080, and the impairment loss was recognised in the year ended 31 December 2023. Management's impairment review as at 31 December 2024 concluded that no further impairment was necessary.

 

Picocom Technology Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

7

Debtors: amounts falling due within one year

2024
£

2023
£

Trade debtors

88,302

151,282

Amounts owed by group undertakings

-

314,189

Other debtors

48,346

52,362

Prepayments and accrued income

40,817

85,044

Corporation tax

-

300,000

177,465

902,877

8

Creditors

2024
£

2023
£

Trade creditors

139,109

395,190

Social security and other taxes

59,015

132,275

Accruals and deferred income

971,795

466,960

1,169,919

994,425

9

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £1 each

24,714,394

24,714,394

24,714,394

24,714,394

         

 

Picocom Technology Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

10

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

37,752

102,452

11

Parent undertaking and ultimate controlling party

The company's immediate parent company and ultimate controlling party is Picocom (Hangzhou) Co Limited, incorporated in China. Picocom (Hangzhou) Co Limited heads the smallest and largest group into which the results and financial position of the company are consolidated.

Parent companies registered address:

Picocom (Hangzhou) Limited
Room 232,
Huannuo building,
1568 South Ring Road,
Changhe Street,
Binjiang District,
Hangzhou

12

Post balance sheet events

On 1 March 2025, following a restructuring of the group’s operations, the company’s employees were transferred to a third party company, Ransemi Limited, which a director of Picocom Technology Limited has significant influence over as a result of his ownership of shares in the company. Picocom Technology Limited continues to manage and administer the manufacture of the group’s semiconductor chips but staffing is provided by that same third party, which also has a licence to sell the group’s chips.

On 25 March 2025, 1,000,000 ordinary shares with an aggregate nominal value of £1,000,000 were allotted at par to an existing shareholder.

 

Picocom Technology Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

13

Audit report

The Independent Auditor's Report was unqualified and modified to include the following statement:

Material uncertainty related to going concern
We draw attention to note 2 in the financial statements, which discloses that the company is reliant on the willingness and ability of the parent company to continue to provide the financial support which this company requires. As stated in note 2, these events or conditions, along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

The name of the Senior Statutory Auditor who signed the audit report 28 April 2025 was Edward Corrigan BA BFP FCA, who signed for and on behalf of Corrigan Accountants Limited.