PESECO LIMITED
SC190923
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
MHA
12 CARDEN PLACE
ABERDEEN
AB10 1UR
PESECO LIMITED
COMPANY INFORMATION
Directors
Mrs Ilirjana Bradley
Global Renewable Energy Investments B.V.
(Appointed 29 August 2024)
Secretary
Raeburn Christie Clark & Wallace
Company number
SC190923
Registered office
Suite L 1
Badentoy Avenue
Badentoy Park
Portlethen
AB12 4YB
Auditor
MHA
12 Carden Place
Aberdeen
Business address
Suite L 1
Badentoy Avenue
Badentoy Park
Portlethen
AB12 4YB
Bankers
Barclays Bank PLC
Union Plaza
1 Union Wynd
Aberdeen
AB10 1SL
Solicitors
Raeburn Christie Clark & Wallace
12-16 Albyn Place
Aberdeen
AB10 1PS
PESECO LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
PESECO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report and audited financial statements for the year ended 31 December 2024.

 

The group's principal activity is the provision of consultant engineering services and sale of oilfield equipment.

Review of the business

The results of the group show a comprehensive income for the year of $17,679 (2023 - $725,563) and turnover of $13,115,980 (2023 - $20,344,771).

Principal risks and uncertainties

The key risks and uncertainties affecting both the group and the company are considered to relate to the international energy sector in general, where a continuation of a sustained downturn in oil and gas prices, coupled with continued reduction in exploration levels would have a negative impact on future profitability. To meet these challenges,both the group and the company continue to strive to develop and deepen both customer and supplier relationships, and to expand the customer base. In addition to this, the group , the company and the ITECO Group are actively supplying to, and investing in, the geothermal energy market.

Financial Risks

Price Risk:

The group has no significant exposure to price risk which will affect the valuation of its financial assets and liabilities.

 

Credit Risk:

The group’s exposure to credit risk arises from trade and other receivables, margin deposits and cash and cash equivalents placed with the banks. Banking transactions are limited to the branches of international banks operating in the countries of operation. The group has policies and procedures in place to ensure that it is not exposed to undue credit risk and for monitoring and follow up of the debtors. The group's exposure to credit risk on trade receivables is influenced mainly by the individual characteristics of each customer and the demographics of customer's customer base, including the default risk of the industry and country in which customers operate.

 

Liquidity Risk:

Liquidity Risk is managed locally with group support available should the company need it. Cash flow forecasts are maintained and monitored daily in order to effectively manage liquidity.

Key performance indicators

Given the straightforward nature of the business, the group's directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.

Future Outlook

The outlook is positive for the foreseeable future. The directors regularly review the cost base and the operational structure of the group to ensure maximum efficiency. The groups members have complimentary activities and support each company in the group well.

On behalf of the board

Mrs Ilirjana Bradley
Director
17 June 2025
PESECO 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.

 

The company changed name from Petroleum Equipment Supply Engineering Company Limited to PESECO Limited on 3 September 2024.

 

Financial risk management and future outlook are outlined in the strategic report.

Results and dividends

The results for the year are set out on page 8. The financial statements are prepared in US dollars.

No ordinary dividends were paid. The directors do not recommend payment of a further 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 Maarten Bruggink
(Resigned 29 August 2024)
Mrs Ilirjana Bradley
Global Renewable Energy Investments B.V.
(Appointed 29 August 2024)
Post reporting date events

There are no events that have occurred after the reporting date of 31 December 2024 that require to be disclosed by the directors in this report.

Future developments

This has been disclosed in the Strategic Report.

Changes in presentation of the financial statements

FRS 101 - Reduced Disclosure Framework is not applicable as a basis for the preparation of group consolidated accounts and the directors have elected to apply FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland, effective for the financial year ending 31 December 2024. See notes 24 and 27 for further details.

Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

 

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the group is aware of that information.

PESECO LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Going Concern

Both the group and the company meet their day-to-day working capital requirements through its cash reserves and continued trading. Both continue to work closely with Barclays and makes use of a trade loan facility which helps with cashflow management.

 

The group's and the company's forecasts and projections, taking account of potential changes in trading performance, show that they both will be able to operate within the level of its current cash reserves. After making enquiries, the directors have a reasonable expectation that both the group and the comapny have adequate resources to continue in operational existence for the foreseeable future. The group and the company can also rely on financial support from its parent company, if required. Both therefore continue to adopt the going concern basis in preparing financial statements.

 

 

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
Mrs Ilirjana Bradley
Director
17 June 2025
PESECO LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period.

 

In preparing these financial statements, the directors are required to:

 

 

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

PESECO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PESECO LIMITED
- 5 -
Opinion

We have audited the financial statements of PESECO Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

PESECO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PESECO LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

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

 

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

 

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

PESECO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PESECO LIMITED
- 7 -

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below: 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

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.

Stuart MacPherson ACCA (Senior Statutory Auditor)
For and on behalf of MHA, Statutory Auditor
Aberdeen
United Kingdom
18 June 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
PESECO LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
$
$
Turnover
3
13,115,980
20,344,771
Cost of sales
(11,164,890)
(17,520,687)
Gross profit
1,951,090
2,824,084
Administrative expenses
(1,858,041)
(2,053,948)
Operating profit
4
93,049
770,136
Interest receivable and similar income
6
1,996
1,009
Interest payable and similar expenses
7
(35,106)
(45,582)
Profit before taxation
59,939
725,563
Tax on profit
8
10,872
(232,490)
Profit for the financial year
70,811
493,073
Other comprehensive income
Currency translation loss arising in the year
(53,132)
-
0
Total comprehensive income for the year
17,679
493,073
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
PESECO LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
$
$
$
$
Fixed assets
Intangible assets
10
241,391
-
0
Tangible assets
11
1,707
1,264
243,098
1,264
Current assets
Stocks
14
2,363,841
46,652
Debtors
15
2,669,752
5,606,247
Cash at bank and in hand
103,632
660,067
5,137,225
6,312,966
Creditors: amounts falling due within one year
16
(3,530,697)
(4,482,283)
Net current assets
1,606,528
1,830,683
Net assets
1,849,626
1,831,947
Capital and reserves
Called up share capital
20
140
140
Other reserves
(53,132)
-
0
Profit and loss reserves
1,902,618
1,831,807
Total equity
1,849,626
1,831,947

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

The financial statements were approved by the board of directors and authorised for issue on 17 June 2025 and are signed on its behalf by:
17 June 2025
Mrs Ilirjana Bradley
Director
Company registration no. SC190923
PESECO LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
$
$
$
$
Fixed assets
Tangible assets
11
1,707
1,264
Investments
12
1
-
0
1,708
1,264
Current assets
Stocks
14
34,443
46,652
Debtors
15
4,902,421
5,606,247
Cash at bank and in hand
103,581
660,067
5,040,445
6,312,966
Creditors: amounts falling due within one year
16
(3,251,090)
(4,482,283)
Net current assets
1,789,355
1,830,683
Net assets
1,791,063
1,831,947
Capital and reserves
Called up share capital
20
140
140
Profit and loss reserves
1,790,923
1,831,807
Total equity
1,791,063
1,831,947

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was $40,884 (2023 - $493,073 profit).

The financial statements were approved by the board of directors and authorised for issue on 17 June 2025 and are signed on its behalf by:
17 June 2025
Mrs Ilirjana Bradley
Director
Company registration no. SC190923
PESECO LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Currency translation reserve
Profit and loss reserves
Total
Notes
$
$
$
$
Balance at 1 January 2023
140
-
0
3,338,734
3,338,874
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
493,073
493,073
Dividends
9
-
-
(2,000,000)
(2,000,000)
Balance at 31 December 2023
140
-
0
1,831,807
1,831,947
Year ended 31 December 2024:
Profit for the year
-
-
70,811
70,811
Other comprehensive income:
Currency translation differences
-
(53,132)
-
0
(53,132)
Total comprehensive income
-
(53,132)
70,811
17,679
Balance at 31 December 2024
140
(53,132)
1,902,618
1,849,626
PESECO LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
$
$
$
Balance at 1 January 2023
140
3,338,734
3,338,874
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
493,073
493,073
Dividends
9
-
(2,000,000)
(2,000,000)
Balance at 31 December 2023
140
1,831,807
1,831,947
Year ended 31 December 2024:
Profit and total comprehensive income
-
(40,884)
(40,884)
Balance at 31 December 2024
140
1,790,923
1,791,063
PESECO LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
Notes
$
$
$
$
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(420,088)
1,947,518
Interest paid
(35,106)
(45,582)
Income taxes paid
(108,585)
(54,531)
Net cash (outflow)/inflow from operating activities
(563,779)
1,847,405
Investing activities
Purchase of tangible fixed assets
(1,151)
(1,297)
Purchase of subsidiaries, net of cash acquired
74,928
-
Interest received
1,996
1,009
Net cash generated from/(used in) investing activities
75,773
(288)
Financing activities
Repayment of bank loans
(15,297)
(24,275)
Dividends paid to equity shareholders
-
0
(2,000,000)
Net cash used in financing activities
(15,297)
(2,024,275)
Net decrease in cash and cash equivalents
(503,303)
(177,158)
Cash and cash equivalents at beginning of year
660,067
837,225
Effect of foreign exchange rates
(53,132)
-
0
Cash and cash equivalents at end of year
103,632
660,067
PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
1
Accounting policies
Company information

PESECO Limited (the company) is a private limited liability company in the United Kingdom, incorporated and domiciled in Scotland. The company changed name from Petroleum Equipment Supply Engineering Company Limited to PESECO Limited on 3 September 2024. The company’s principal activities are the provision of consultant engineering services and sale of oilfield equipment.

 

The company's principal place of business is Badentoy Park, Portlethen, United Kingdom, same as the company's registered office.

 

The parent company is Iteco General Trading DMCC, incorporated and domiciled in the UAE.

 

The group consists of PESECO Limited and its subsidiary PESECO B.V.

 

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, unless otherwise stated.

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 US dollars, 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.

These financial statements for the year ended 31 December 2024 are the first financial statements of PESECo Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2023. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in notes 24 and 27.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company PESECO Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The principal activities, risks and uncertainties and future outlook are set out in the Strategic and Directors’ Report on pages 1 to 3. Both the group and the company meet its day-to-day working capital requirements through its cash reserves and continued trading. Both the group and the company continue to work closely with Barclays and makes use of a trade loan facility which helps with cash flow management. The group's and the company's forecasts and projections, taking account of potential changes in trading performance, show that the company will be able to operate within the level of its current cash reserves. The group can also rely on financial support from its parent company, if required. After making enquiries, the directors have a reasonable expectation that both the group and the company have adequate resources to continue in operational existence for the foreseeable future. Both the group and the company therefore continue to adopt the going concern basis in preparing financial statements.

1.5
Turnover

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

 

The group recognises revenue when the amount of revenue can be measured reliably, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of the arrangement.

 

Sale of goods is recognised when the group has delivered products to the customer, the customer has accepted the products and collectability of the related receivables is reasonably assured. Revenue from services is recognised in the periods services are provided and accrued if delivered but not invoiced at the year end. Where the products have not been delivered or the services have not been performed, but settlements have been received in advance, revenue recognition is deferred until completion of delivery of the products or performance of the services.

PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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 machinery
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

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

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

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.

1.10
Stocks

Stocks are stated at the lower of cost and estimated net realisable value, after making due allowance for obsolete and slow moving items. Cost is determined using the first-in, first-out (FIFO) method. Costs are specifically identified against each item of inventory. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.11
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.

1.12
Financial instruments

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

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, 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.

 

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.

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised directly in equity. In this case, the tax is also recognised in equity.

PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.15
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.

1.16
Retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.18
Foreign exchange

Foreign Currency Translation

(a) Functional and Presentation Currency:

Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). This is also the presentation currency of the company. The financial statements are presented in United States Dollars (USD), which is the company's functional currency.

 

(b) Transactions and Balances:

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account. Foreign exchange gains and losses are presented in the profit and loss account within "Administrative Expenses".

 

(c) Translation of subsidiary balances

Changes in the fair value of derivative financial instruments that are designed and effective as hedges Foreign exchange gains and losses that arise as a result of translating subsidiary transactions where that subsidiary uses a different functional currency are reported in other comprehensive income and recorded direct to equity as a currency translation reserve.

PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of both the group's and 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.

 

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

The company makes estimates and assumptions concerning the future. The resulting accounting estimates may, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

 

(a) Impairment of trade and other receivables

 

The impairment charge reflects estimates of losses arising from the failure or inability of the parties concerned to make the required payments. The charge is based on aging of the customers' accounts, the customers' creditworthiness and the historic write-off experience. Changes to the estimated impairment charge may be required if the financial condition of the customers was to improve or deteriorate.

 

(b) Income tax

 

The company is subject to income taxes in the UK. Significant judgement is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain. The company recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made.

 

(c) Provision for inventory write-down

 

The company carries out a review of all items held in inventory each year, focussing on the carrying value of each item. Professional judgement is used to determine whether a provision should be made and, if so, the value of the write-down. When arriving at a decision, consideration is made as to the current market conditions, the age and condition of the material, the storage location and the demand and availability of the product.

 

(d) Functional currency

 

The company considers the functional currency that should be applied to the financial statements. The parent company is judged to have US dollars as its functional currency by virtue of the level of revenue and cost of sales transactions conducted in that currency. For the same reason, the subsidiary is considered to have its functional currency as Euros and the subsidiary results are translated to US dollars for the purposes of the consolidation.

PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
3
Turnover
2024
2023
$
$
Turnover analysed by class of business
Equipment sales and rentals
12,655,452
18,473,105
Engineering services
460,528
1,871,666
13,115,980
20,344,771
2024
2023
$
$
Turnover analysed by geographical market
United Kingdom
-
362,627
Rest of World
13,115,980
19,982,144
13,115,980
20,344,771
4
Operating profit
2024
2023
$
$
Operating profit for the year is stated after charging:
Exchange losses
18,628
59,200
Fees payable to the group's auditor for the audit of the group's financial statements
27,181
16,664
Depreciation of owned tangible fixed assets
709
755
Amortisation of intangible assets
26,821
-
Operating lease charges
149,457
171,996
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
2
-
-
-
Management
1
1
1
1
Sales Support/Administration
8
7
7
7
Total
11
8
8
8
PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
$
$
$
$
Wages and salaries
534,404
494,871
496,585
494,871
Social security costs
34,359
36,246
34,359
36,246
Pension costs
32,827
34,932
32,827
34,932
601,590
566,049
563,771
566,049
6
Interest receivable and similar income
2024
2023
$
$
Interest income
Interest on bank deposits
1,996
1,005
Other interest income
-
4
Total income
1,996
1,009
2024
2023
Investment income includes the following:
$
$
Interest on financial assets not measured at fair value through profit or loss
1,996
1,005
7
Interest payable and similar expenses
2024
2023
$
$
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
35,106
45,582
8
Taxation
2024
2023
$
$
Current tax
UK corporation tax on profits for the current period
(12,939)
172,219
Adjustments in respect of prior periods
2,067
(18,194)
Total UK current tax
(10,872)
154,025
Foreign current tax on profits for the current period
-
0
78,465
Total current tax
(10,872)
232,490
PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 24 -

The actual (credit)/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
59,939
725,563
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
14,985
170,507
Tax effect of expenses that are not deductible in determining taxable profit
(11,234)
15,118
Tax effect of income not taxable in determining taxable profit
-
0
(236)
Tax effect of utilisation of tax losses not previously recognised
(16,690)
-
0
Unutilised tax losses carried forward
-
0
(12,628)
Permanent capital allowances in excess of depreciation
-
0
(542)
Foreign tax applied on overseas income
-
0
78,465
Adjustments to tax charge in respect of piror periods
2,067
(18,194)
Taxation (credit)/charge
(10,872)
232,490
9
Dividends
2024
2023
Recognised as distributions to equity holders:
$
$
Final paid
-
2,000,000
10
Intangible fixed assets
Group
Goodwill
$
Cost
At 1 January 2024
-
0
Additions
268,212
At 31 December 2024
268,212
Amortisation and impairment
At 1 January 2024
-
0
Amortisation charged for the year
26,821
At 31 December 2024
26,821
Carrying amount
At 31 December 2024
241,391
At 31 December 2023
-
0
PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Intangible fixed assets
(Continued)
- 25 -
The company's intangible fixed assets represent goodwill at 31 December 2024 which has been assessed and considered to be free from impairment.

PESECo Limited acquired the entire share capital of PESECo B.V. on 1 July 2024 for €‎1. The Dutch company is now a 100% subsidiary of the UK company.

 

Goodwill represents the amount paid for the subsidiary in excess of the net liabilities of the subsidiary on date of acquisition. Goodwill is being amortised over a period of five years.

 

At 1 July 2024, the following assets and liabilities were recognised:

 

Current assets     $2,891,671

Current liabilities     $3,159,881

 

The subsidiary generated turnover of $3,622,245 and a profit of $66,757 for the period since the acquisition date.

 

11
Tangible fixed assets
Group
Plant and machinery
$
Cost
At 1 January 2024
102,187
Additions
1,152
At 31 December 2024
103,339
Depreciation and impairment
At 1 January 2024
100,923
Depreciation charged in the year
709
At 31 December 2024
101,632
Carrying amount
At 31 December 2024
1,707
At 31 December 2023
1,264
PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Tangible fixed assets
(Continued)
- 26 -
Company
Plant and machinery
$
Cost
At 1 January 2024
102,187
Business combinations
1,152
At 31 December 2024
103,339
Depreciation and impairment
At 1 January 2024
100,923
Depreciation charged in the year
709
At 31 December 2024
101,632
Carrying amount
At 31 December 2024
1,707
At 31 December 2023
1,264
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
$
$
$
$
Investments in subsidiary
-
0
-
0
1
-
0
Movements in fixed asset investments
Company
Shares in subsidiaries
$
Cost or valuation
At 1 January 2024
-
Valuation changes
1
At 31 December 2024
1
Carrying amount
At 31 December 2024
1
At 31 December 2023
-
PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
13
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
PESECo B.V.
Netherlands
Ordinary
100.00
14
Stocks
Group
Company
2024
2023
2024
2023
$
$
$
$
Finished goods and goods for resale
2,363,841
46,652
34,443
46,652
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
$
$
$
$
Trade debtors
1,082,350
1,278,776
664,590
1,278,776
Corporation tax recoverable
564
16,881
-
0
16,881
Amounts owed by group undertakings
1,113,850
3,049,851
4,122,659
3,049,851
Other debtors
43,631
18,949
43,631
18,949
Prepayments and accrued income
384,861
1,241,790
71,541
1,241,790
2,625,256
5,606,247
4,902,421
5,606,247
Deferred tax asset (note 18)
44,496
-
0
-
0
-
0
2,669,752
5,606,247
4,902,421
5,606,247
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
$
$
$
$
Bank loans
17
532,000
547,297
532,000
547,297
Payments received on account
60,558
-
0
60,558
-
0
Trade creditors
2,510,982
1,318,081
2,233,986
1,318,081
Amounts owed to group undertakings
-
0
927,769
-
0
927,769
Corporation tax payable
80,941
172,219
80,941
172,219
Other taxation and social security
8,915
13,262
8,915
13,262
Other creditors
2,611
4,976
-
0
4,976
Accruals and deferred income
334,690
1,498,679
334,690
1,498,679
3,530,697
4,482,283
3,251,090
4,482,283
PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
$
$
$
$
Bank loans
532,000
547,297
532,000
547,297
Payable within one year
532,000
547,297
532,000
547,297

Bank loans represent the balance due at 31 December 2024 on a trade loan facility with Barclays Bank PLC. The bank holds a floating charge over the assets of the company.

18
Deferred taxation

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

Assets
Assets
2024
2023
Group
$
$
Accelerated capital allowances
44,496
-
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
$
$
Asset at 1 January 2024
-
-
Credit to profit or loss
(1,892)
-
Deferred tax asset introduced on acquisition of subsidiary
(42,604)
-
Asset at 31 December 2024
(44,496)
-

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
$
$
Charge to profit or loss in respect of defined contribution schemes
32,827
34,932

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

PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
$
$
Authorised
A Ordinary shares of $1.40 each
100
100
140
140
Issued and fully paid
A Ordinary shares of $1.40 each
100
100
140
140

All shares rank pari passu in all respects.

21
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
$
$
$
$
Within one year
52,139
31,273
52,139
31,273
Between two and five years
27,704
49,055
27,704
49,055
79,843
80,328
79,843
80,328
22
Related party transactions

As a wholly owned subsidiary of Iteco General Trading DMCC, the company has taken advantage of the exemption in section 33.1 of FRS 102 not to disclose transactions with wholly owned group companies.

23
Events after the reporting date

There are no events that have occurred after the reporting date of 31 December 2024 that require to be disclosed in these financial statements.

24
Controlling party
Until the 30 June 2024, the immediate parent undertaking was IPS Group Holding B.V., a company incorporated in the Netherlands. Following a restructure on 1 July 2024 the new immediate parent undertaking is Iteco General Trading DMCC, a company incorporated in the UAE. The address is Jumeirah Lakes Towers, JBC 1, 25th Floor, Office 2504, Dubai, United Arab Emirates. Their accounts can be obtained from their office.
These results up to 30 June 2024 will be incorporated into those of IPS Group Holding B.V.  These group financial statements can be obtained from Concertgebouwplein 25, 4711 LM, Amsterdam, The Netherlands.
The ultimate controlling party throughout the whole year is Bart Duijndam.
PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
24
Controlling party
(Continued)
- 30 -
25
Accounting convention

As of financial years up to and including 31 December 2023, the financial statements have been prepared in accordance with United Kingdom Accounting Standards, in particular, Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and the Companies Act 2006 (the Act) as applicable to companies using FRS 101.

 

FRS 101 - Reduced Disclosure Framework is not applicable as a basis for the preparation of group consolidated accounts and the directors have elected to apply FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland, effective for the financial year ending 31 December 2024.

 

This change enables the company to prepare consolidated financial statements in accordance with UK GAAP, offering a more complete and transparent view of the financial position and performance of the group as a whole. It also supports improved comparability and consistency in financial reporting across group entities.

 

These financial statements for the year ended 31 December 2024 are the first financial statements of PESECo Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

26
Cash (absorbed by)/generated from group operations
2024
2023
$
$
Profit after taxation
70,811
493,073
Adjustments for:
Taxation (credited)/charged
(10,872)
232,490
Finance costs
35,106
45,582
Investment income
(1,996)
(1,009)
Amortisation and impairment of intangible assets
26,821
-
Depreciation and impairment of tangible fixed assets
709
755
Movements in working capital:
Decrease in stocks
12,209
162,201
Decrease in debtors
3,452,016
5,312,026
Decrease in creditors
(4,004,892)
(4,297,600)
Cash (absorbed by)/generated from operations
(420,088)
1,947,518
27
Analysis of changes in net funds/(debt) - group
1 January 2024
Cash flows
Exchange rate movements
31 December 2024
$
$
$
$
Cash at bank and in hand
660,067
(503,303)
(53,132)
103,632
Borrowings excluding overdrafts
(547,297)
15,297
-
(532,000)
112,770
(488,006)
(53,132)
(428,368)
PESECO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
28
Reconciliations on adoption of FRS 102
Reconciliation of equity - group
1 January
31 December
2023
2023
$
$
Equity as reported under previous UK GAAP and under FRS 102
3,338,874
1,831,947
Reconciliation of group profit for the financial period
2023
$
Profit as reported under previous UK GAAP and under FRS 102
493,073
Notes to reconciliations on adoption of FRS 102 - group
There are no transitional adjustments required in respect of the figures due to the transition to FRS 102.
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