Company registration number 06354494 (England and Wales)
PIXEL INSPIRATION HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PIXEL INSPIRATION HOLDINGS LIMITED
COMPANY INFORMATION
Directors
T Mortier
W Chapman
G Rowlinson
N Smith
D Thomason
Company number
06354494
Registered office
C/O Michael Davies And Associates Limited
Walker Park
Blackamoor Road
Blackburn
United Kingdom
BB1 2LG
Auditor
BK Plus Audit Limited
Sterling House
501 Middleton Road
Chadderton
Oldham
Lancashire
OL9 9LY
PIXEL INSPIRATION HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 21
PIXEL INSPIRATION HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Principal activities
The principal activity of the company is the design, installation, and ongoing maintenance of out-of-home digital media solutions.
Review of the business
As forecast, this year has seen the business achieve very similar revenue performance to FY23 but with a significant increase in our EBITDA ratio. Strong demand for our services across the retail and hospitality sectors continued, despite the wider macro-economic challenges, with significant interest in ‘Retail Media’ driving awareness, adoption and scale of the technologies we support.
Sales for the year at £17,455k were inline with 2023, despite a lack of significant new client wins, demonstrating the resilience of our underlying business and continued growth in average project size. Some notable single site projects in the UK and France were in excess of £250,000. Our work for Tesco is of particular note, forming a significant, but sustainable part of our revenue stream during the period. The Gross profit at £6,911k was £860k above last year due to more effective purchasing, and efficiencies across the various operational teams.
The labour market remains stretched, and we continued to see difficultly recruiting suitable staff, which resulted in significantly higher spend on third-party labour than anticipated. Despite this, administration costs at £5,830k compare to last year at £5,077. The resulting net profit of £983k compares very favourably to last year at £974k, despite an exceptional payment of £177k within 2024.
We have made progress with VAT registration in additional European territories but expect further work to be needed over the next year. Supply chain shortages have not been a significant factor, but the continuing instability and cost variances of logistics due to political factors have caused some delivery pressure.
We maintained our focus on quality and process development, retaining our ISO27001, 9001 and 14001 certifications and adding ISO 45001. We also hired a dedicated compliance manager to ensure continued focus in this area.
Principal risks and uncertainties
The main risks for the coming year are associated with the increased costs/risks of employment, due principally to the changes enacted by the new government. A continued inflationary environment is also a possibility, although we believe significantly reduced by the distinct prospect of a wider recession, which in itself is a major risk.
Future Developments
Our forecast budget for 2025 anticipates increased revenue and EBITDA performance, and we plan to hire additional FTE resources to reduce third-party labour costs and maintain our traditional high levels of service. A major new client contract, signed towards the end of FY24, had no in-year financial impact but will deliver a significant boost to revenue and EBITDA in FY25.
We continue to invest in ERP and our wider IT systems as they form the foundation of our operations.
N Smith
Director
29 April 2025
PIXEL INSPIRATION HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
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:
T Mortier
W Chapman
G Rowlinson
N Smith
D Thomason
Auditor
The auditor, BK Plus Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
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 company will continue in business.
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.
Future Developments
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 future developments.
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.
PIXEL INSPIRATION HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
N Smith
Director
29 April 2025
PIXEL INSPIRATION HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PIXEL INSPIRATION HOLDINGS LIMITED
- 4 -
Opinion
We have audited the financial statements of Pixel Inspiration Holdings Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the balance sheet 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:
give a true and fair view of the state of the company's affairs as at 31 December 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.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PIXEL INSPIRATION HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PIXEL INSPIRATION HOLDINGS LIMITED (CONTINUED)
- 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:
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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company, we identified that the principal risks of non-compliance related to those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and FRS 102. 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 principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates. Appropriate audit procedures were therefore performed to address those risks including testing journal entries and challenging assumptions and judgements made by management in their significant accounting estimates. There are inherent limitations in the audit procedures described above and the further removed noncompliance 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.
PIXEL INSPIRATION HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PIXEL INSPIRATION HOLDINGS LIMITED (CONTINUED)
- 6 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
Dominic Huxley ACA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor
Chartered Certified Accountants
Sterling House
501 Middleton Road
Chadderton
Oldham
Lancashire
OL9 9LY
29 April 2025
PIXEL INSPIRATION HOLDINGS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
17,454,996
17,454,073
Cost of sales
(10,543,755)
(11,402,613)
Gross profit
6,911,241
6,051,460
Administrative expenses
(5,830,180)
(5,077,486)
Operating profit
4
1,081,061
973,974
Interest payable and similar expenses
7
(98,512)
Profit before taxation
982,549
973,974
Tax on profit
8
(275,612)
(235,357)
Profit for the financial year
706,937
738,617
Retained earnings brought forward
2,520,120
1,781,503
Retained earnings carried forward
3,227,057
2,520,120
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PIXEL INSPIRATION HOLDINGS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
542,649
372,104
Investments
11
4,304
4,304
546,953
376,408
Current assets
Stocks
13
1,428,510
1,548,758
Debtors
14
6,198,720
6,516,623
Cash at bank and in hand
1,854,367
1,329,260
9,481,597
9,394,641
Creditors: amounts falling due within one year
15
(6,345,686)
(7,049,840)
Net current assets
3,135,911
2,344,801
Total assets less current liabilities
3,682,864
2,721,209
Creditors: amounts falling due after more than one year
17
(445,679)
(190,961)
Net assets
3,237,185
2,530,248
Capital and reserves
Called up share capital
20
306
306
Share premium account
21
7,122
7,122
Capital redemption reserve
22
2,700
2,700
Profit and loss reserves
3,227,057
2,520,120
Total equity
3,237,185
2,530,248
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 29 April 2025 and are signed on its behalf by:
N Smith
Director
Company registration number 06354494 (England and Wales)
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
1
Accounting policies
Company information
Pixel Inspiration Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O Michael Davies And Associates Limited, Walker Park, Blackamoor Road, Blackburn, United Kingdom, BB1 2LG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Bpost NV-SA. These consolidated financial statements are available Boulevard Anspach 1, box 1 – 1000 Brussels, Belgium.
The entity has taken advantage of the exemption from preparing consolidated financial statements contained in Section 400 of the Companies Act 2006 on the basis that it is a subsidiary undertaking and its immediate parent undertaking is established under the law of an EEA State.
1.2
Going concern
Atruet 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover· is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 10 -
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.
When the outcome cannot be reliably estimated, turnover is recognised only to the extent that it is probable the expenses recognised will be recovered.
1.4
Intangible fixed assets - goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Written off over the term of the lease
Fixtures and fittings
25% straight line
Computers
20% straight line
Motor vehicles
25% straight line
Equipment
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to
complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and
finished goods include labour and attributable overheads.
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.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
As lessee
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Foreign exchange
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non- monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of comprehensive income within 'other operating income'.
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
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.
No significant judgements in applying accounting policies have had to be made by management in preparing these financial statements. Management have had to make estimates relating to stock, dilapidation and debtor provisioning based on information available to them.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Rendering of services
17,454,996
17,454,073
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
15,755,985
15,619,073
Overseas
1,699,011
1,835,000
17,454,996
17,454,073
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
49,650
70,740
Fees payable to the company's auditor for the audit of the company's financial statements
11,135
11,315
Depreciation of owned tangible fixed assets
179,944
222,625
Profit on disposal of tangible fixed assets
(5,874)
-
Operating lease charges
104,385
84,677
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production staff
91
82
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,950,196
3,310,462
Social security costs
386,331
325,694
Pension costs
136,359
118,067
4,472,886
3,754,223
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
268,743
225,432
Company pension contributions to defined contribution schemes
51,600
27,352
320,343
252,784
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
135,979
113,297
Company pension contributions to defined contribution schemes
29,071
17,593
7
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
98,512
-
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
275,612
235,357
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
982,549
973,974
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
245,637
228,884
Permanent capital allowances in excess of depreciation
29,975
6,473
Taxation charge for the year
275,612
235,357
9
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
490,111
Amortisation and impairment
At 1 January 2024 and 31 December 2024
490,111
Carrying amount
At 31 December 2024
At 31 December 2023
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
10
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 January 2024
110,686
60,557
238,076
441,112
353,563
1,203,994
Additions
42,106
1,173
20,394
154,048
132,768
350,489
Disposals
(29,994)
(29,994)
At 31 December 2024
152,792
61,730
258,470
565,166
486,331
1,524,489
Depreciation and impairment
At 1 January 2024
93,476
41,209
207,500
242,716
246,989
831,890
Depreciation charged in the year
3,507
5,598
15,134
105,794
49,911
179,944
Eliminated in respect of disposals
(29,994)
(29,994)
At 31 December 2024
96,983
46,807
222,634
318,516
296,900
981,840
Carrying amount
At 31 December 2024
55,809
14,923
35,836
246,650
189,431
542,649
At 31 December 2023
17,210
19,348
30,576
198,396
106,574
372,104
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
4,304
4,304
12
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Pixel Inspiration France SAS
5-7 Avenue des Gros Chevaux Zac du Vert Galant 95310 Saint-Ouenl'Aumône, France
Stock
100.00
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,428,510
1,548,758
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,958,162
5,671,340
Corporation tax recoverable
33,861
Amounts owed by group undertakings
4,230
4,230
Other debtors
1,187,715
826,301
6,183,968
6,501,871
Deferred tax asset (note 18)
14,752
14,752
6,198,720
6,516,623
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases and hire purchase contracts
16
310,871
83,020
Trade creditors
1,672,597
2,613,114
Corporation tax
13,458
Other taxation and social security
401,312
392,894
Other creditors
250,000
Accruals and deferred income
3,960,906
3,697,354
6,345,686
7,049,840
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
310,871
83,020
In two to five years
445,679
190,961
756,550
273,981
Finance lease payments represent obligations under hire purchase contracts.
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases and hire purchase contracts
16
445,679
190,961
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(5,815)
(5,815)
Deferred tax- other timing differences
20,567
20,567
14,752
14,752
There were no deferred tax movements in the year.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
136,359
118,067
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.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of 10p each
306
306
306
306
21
Share premium account
This reserve represents the amounts received in excess of the nominal value of the ordinary shares in issue.
22
Capital redemption reserve
This is a non distributable reserve that represents the nominal value of paid up share capital repurchased by the company.
PIXEL INSPIRATION HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
23
Operating lease commitments
As lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within 1 year
75,000
75,000
Years 2-5
175,000
250,000
250,000
325,000
24
Ultimate controlling party
The company's ultimate parent company, and the largest group in which the results of the company are consolidated is Bpost NV-SA, a company registered in Belgium, copies of their financial statements can be obtained from Boulevard Anspach 1, box 1 – 1000 Brussels, Belgium.
2024-12-312024-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100T MortierW ChapmanG RowlinsonN SmithD Thomason063544942024-01-012024-12-3106354494bus:Director12024-01-012024-12-3106354494bus:Director22024-01-012024-12-3106354494bus:Director32024-01-012024-12-3106354494bus:Director42024-01-012024-12-3106354494bus:Director52024-01-012024-12-3106354494bus:RegisteredOffice2024-01-012024-12-31063544942024-12-31063544942023-01-012023-12-3106354494core:RetainedEarningsAccumulatedLosses2023-12-3106354494core:RetainedEarningsAccumulatedLosses2022-12-3106354494core:ShareCapital2024-12-3106354494core:ShareCapital2023-12-3106354494core:SharePremium2024-12-3106354494core:SharePremium2023-12-3106354494core:CapitalRedemptionReserve2024-12-3106354494core:CapitalRedemptionReserve2023-12-3106354494core:RetainedEarningsAccumulatedLosses2024-12-3106354494core:RetainedEarningsAccumulatedLosses2023-12-31063544942023-12-3106354494core:ShareCapitalOrdinaryShareClass12024-12-3106354494core:ShareCapitalOrdinaryShareClass12023-12-3106354494core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-12-3106354494core:FurnitureFittings2024-12-3106354494core:ComputerEquipment2024-12-3106354494core:MotorVehicles2024-12-3106354494core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-12-3106354494core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3106354494core:FurnitureFittings2023-12-3106354494core:ComputerEquipment2023-12-3106354494core:MotorVehicles2023-12-3106354494core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-12-3106354494core:Goodwill2024-01-012024-12-3106354494core:LandBuildingscore:LongLeaseholdAssets2024-01-012024-12-3106354494core:FurnitureFittings2024-01-012024-12-3106354494core:ComputerEquipment2024-01-012024-12-3106354494core:MotorVehicles2024-01-012024-12-3106354494core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-01-012024-12-3106354494core:UKTax2024-01-012024-12-3106354494core:UKTax2023-01-012023-12-3106354494core:Goodwill2023-12-3106354494core:Goodwill2024-12-3106354494core:Goodwill2023-12-3106354494core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3106354494core:FurnitureFittings2023-12-3106354494core:ComputerEquipment2023-12-3106354494core:MotorVehicles2023-12-3106354494core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-12-31063544942023-12-3106354494core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-01-012024-12-3106354494core:Non-currentFinancialInstruments2024-12-3106354494core:Non-currentFinancialInstruments2023-12-3106354494core:Subsidiary12024-01-012024-12-3106354494core:Subsidiary112024-01-012024-12-3106354494core:CurrentFinancialInstruments2024-12-3106354494core:CurrentFinancialInstruments2023-12-3106354494core:WithinOneYear2024-12-3106354494core:WithinOneYear2023-12-3106354494core:BetweenTwoFiveYears2024-12-3106354494core:BetweenTwoFiveYears2023-12-3106354494bus:OrdinaryShareClass12024-01-012024-12-3106354494bus:OrdinaryShareClass12024-12-3106354494bus:OrdinaryShareClass12023-12-3106354494bus:PrivateLimitedCompanyLtd2024-01-012024-12-3106354494bus:FRS1022024-01-012024-12-3106354494bus:Audited2024-01-012024-12-3106354494bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP