Registration number:
for the Year Ended
Purdicom Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Purdicom Limited
Company Information
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Directors |
H C G Garrod A D R Black M J Smith H McNulty |
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Company secretary |
M J Smith |
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Registered office |
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Auditors |
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Purdicom Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the company is that of the wholesale distribution of electronic parts and equipment.
Objectives and strategies to achieve
At Purdicom, our mission is to deliver cutting-edge wireless, cloud, and security solutions that align seamlessly with our customers’ goals. We pride ourselves on simplifying complex challenges, embracing unique business needs, and fostering an environment where ease of doing business is a core principle.
Driven by a team of highly trained communications technology experts, we are committed to creating value for our customers, colleagues, and shareholders alike. As we continue to grow-both organically and through strategic acquisitions-we remain focused on innovation, agility, and long-term success.
As part of our ongoing strategic vision, Purdicom is committed to achieving a turnover of £50 million. This ambition is underpinned by our continued expansion of product offerings and our unwavering focus on meeting the evolving needs of our customers.
While we faced economic headwinds in 2024 that impacted our trajectory, we remain confident in our ability to reach this milestone within the next couple of years. Our resilience and adaptability have enabled us to strengthen our presence across Central Europe and Iberia, where we have deployed both warehousing infrastructure and dedicated team members within the EU. These investments are already enhancing our operational efficiency and customer service capabilities across the region.
With a clear growth strategy, a broadened portfolio, and a customer-centric approach, Purdicom is well-positioned to deliver sustainable success and long-term value.
Business model
Purdicom operates four specialised sales teams focused on the indoor wireless, outdoor wireless, security, and cloud markets. These teams have continued to perform strongly, securing significant projects and expanding our customer base across key sectors including Telecommunications Operators, ISPs, Value Added Resellers, Integrators, and Managed Service Providers (MSPs).
Our Indoor Wireless team has shown particular momentum, consistently winning new business and successfully re-engaging former customers by showcasing our value-added services and technical expertise.
In parallel, our Professional Services division has experienced robust growth. We now offer a comprehensive suite of services-from site surveys and system design -enabling us to support our partners and customers throughout the entire project lifecycle.This expansion reflects our commitment to delivering end-to-end solutions that drive customer success and long-term partnerships.
Purdicom Limited
Strategic Report for the Year Ended 31 December 2024
Trends
The global technology landscape continues to evolve at pace, with Artificial Intelligence (AI), automation, and cloud-based infrastructure driving transformation across industries. AI is rapidly becoming embedded in everyday business operations-from smart buildings and predictive analytics to enhanced cybersecurity and customer experience platforms.
Purdicom is strategically positioned to support and capitalise on these trends. Our advanced Wi-Fi solutions are enabling smarter, more connected environments, while our cloud and security offerings are helping customers build resilient, scalable, and secure digital infrastructures. These capabilities are increasingly critical as organisations seek to harness AI and data-driven technologies.
Our continued investment in product innovation and professional services has directly contributed to growth in sales, particularly in sectors embracing digital transformation. By aligning our portfolio with emerging technologies and customer needs, we are not only supporting the adoption of AI and cloud solutions but also reinforcing our role as a trusted partner in the evolving communications technology ecosystem.
Principal risks and uncertainties
Macroeconomic Risk: Inflation, Interest Rates & Recession
After peaking at 11.1% in 2022, UK inflation fell to 1.7% in late 2024 but has since rebounded to 3.6% as of June 2025.
Interest rates remain elevated, with the Bank of England’s base rate currently at 4%, though cuts are anticipated later this year.
While the IT and communications sectors continue to show resilience, the risk of a mild recession remains, particularly if consumer demand weakens or wage growth slows further.
Purdicom continues to mitigate these risks by diversifying its product portfolio, entering new markets, and investing in high-growth areas such as AI-enabled infrastructure and cloud services.
Political Risk
The UK’s political landscape shifted significantly with the Labour Party’s election victory in July 2024. The new government has pledged to prioritise economic growth and industrial strategy, but uncertainty remains around tax policy and public spending.
Across the EU, elections and policy shifts may also impact trade and regulatory environments. Purdicom remains agile, monitoring developments closely and adjusting its strategies accordingly.
Geopolitical Conflict
Ongoing conflicts in Ukraine and the Middle East continue to disrupt global supply chains and create volatility in pricing and logistics. These disruptions have affected the availability and cost of certain components from key partners. Purdicom is actively working with suppliers to build resilience into its supply chain and maintain continuity of service.
Purdicom Limited
Strategic Report for the Year Ended 31 December 2024
Exchange Rate Risk
As a business with international operations, Purdicom remains exposed to fluctuations in foreign exchange rates. The company continues to employ hedging strategies to manage this risk and protect margins.
Credit Risk
The tightening of the credit insurance market and delays in customer order fulfilment have presented challenges. Purdicom maintains strong relationships with its customers and leverages credit insurance and third-party credit agencies to set and monitor appropriate credit limits.
Technology Adoption & AI Integration
The rapid rise of Artificial Intelligence is reshaping the technology landscape. Purdicom recognises the strategic importance of AI and is actively integrating AI-driven tools into its operations to improve our efficiency & customer offering. Our Wi-Fi, cloud, and security solutions are increasingly aligned with AI-enabled environments, supporting smart infrastructure and digital transformation initiatives across our customer base.
By embracing AI and automation, Purdicom is not only enhancing its service offerings but also positioning itself to lead in a market where intelligent connectivity is becoming the norm.
Development and performance
Sales Performance Overview
The first half of 2024 presented continued challenges for Purdicom, following a slowdown in sales momentum that began in 2023. Economic headwinds - including high interest rates, inflationary pressures and cautious customer spending - contributed to a sluggish start to the year. Despite a recovery in sales by mid-2024, the rebound was not sufficient to fully offset the earlier decline. As a result, total sales for the year fell from £43.9 million in 2023 to £38.3 million in 2024.
However, 2025 has marked a clear turning point. Sales have shown strong growth across all core business areas, driven by renewed customer demand, strategic expansion into European markets, and the successful rollout of new product lines. We are currently on track to exceed our 2023 sales figures, reflecting both the resilience of our business model and the effectiveness of our growth strategy.
Operational Efficiency & Cost Management
In response to the economic headwinds experienced throughout 2023 and into early 2024, Purdicom undertook a comprehensive review of its cost base. This strategic initiative focused on improving operational efficiency while safeguarding the company’s capacity for future growth.
Through targeted cost control measures - including supplier renegotiations, process optimisation and natural attrition in headcount - Purdicom successfully reduced overheads from £5.7 million to £5.4 million. These reductions were achieved without compromising service quality or strategic capabilities, and crucially, while retaining key personnel and maintaining critical customer contracts.
This leaner cost structure has positioned Purdicom to capitalise on the growth opportunities emerging in 2025. With sales now trending above 2023 levels, the company is well-placed to scale sustainably and invest in innovation.
Our commitment to operational discipline, combined with a forward-looking investment strategy, ensures that Purdicom remains agile, competitive and prepared to meet the demands of a rapidly evolving technology landscape.
Purdicom Limited
Strategic Report for the Year Ended 31 December 2024
Balance Sheet
A key operational focus in 2024 was the strategic reduction of stock levels, which had grown significantly in response to the global chipset shortages experienced in 2023. At the start of the year, Purdicom held £13.7 million in inventory - an intentional buffer to ensure continuity of supply and support customer project delivery during a period of constrained availability.
As global supply chains stabilised and supplier lead times improved, we were able to transition to a more agile inventory model. By year end, stock levels were successfully reduced to £6.4 million, representing a 53% reduction. This was achieved without compromising our ability to fulfil customer orders, thanks to improved forecasting, tighter procurement controls, and enhanced supplier responsiveness.
This leaner approach to inventory has freed up working capital, reduced holding costs, and increased operational flexibility. It also reflects our broader commitment to efficiency and responsiveness, ensuring we can continue to meet customer needs reliably while adapting quickly to market conditions.
Purdicom’s balance sheet remains robust, underpinned by strong shareholder equity and disciplined financial management. As of year end 2024, shareholders’ funds stood at £13.7 million, reflecting the company’s solid capital base and long-term financial resilience.
Liquidity remains excellent, supported by healthy cash flow, prudent cost control, and efficient working capital management. Our strategic reduction in inventory levels and overheads has further strengthened our financial position, enabling us to reinvest in growth areas and maintain operational agility.
We continue to maintain strong relationships with key suppliers, ensuring reliable access to products and services across our portfolio. Our debtors ledger remains robust, with proactive credit management and close monitoring of customer accounts helping to mitigate credit risk.
In addition, Purdicom enjoys stable and supportive relationships with its finance providers, giving us the flexibility to pursue strategic investments and respond swiftly to market opportunities. This financial strength positions us well to support our growth ambitions, including our target of reaching £50 million in turnover within the next two years.
Approved and authorised by the
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Purdicom Limited
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors of the company
The directors who held office during the year were as follows:
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
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Purdicom Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Purdicom Limited
Independent Auditor's Report to the Members of Purdicom Limited
Opinion
We have audited the financial statements of Purdicom Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 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. |
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 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 director's 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
Purdicom Limited
Independent Auditor's Report to the Members of Purdicom Limited
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], 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 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Detecting irregularities, including fraud
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. As such, we have considered:
Purdicom Limited
Independent Auditor's Report to the Members of Purdicom Limited
• the nature of the industry and sector, control environment and business performance including the company's remuneration policy, bonus levels, and performance targets;
• the company's own assessment, including assessments made by key management, of the risks that irregularities may occur either as a result of fraud or error;
• any matters we identified having reviewed the company's policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
• the matters discussed amongst the audit engagement team.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as the disclosure of adjusting items. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context were the Companies Act, tax legislation and regulations concerning importing and exporting to and from the UK.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
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For and on behalf of
2 Old Bath Road
Berkshire
RG14 1QL
Purdicom Limited
Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Operating profit |
1,689,367 |
2,962,281 |
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
|
( |
|
|
19,437 |
1,570 |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Purdicom Limited
(Registration number: 05361794)
Balance Sheet as at 31 December 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Intangible assets |
- |
- |
|
|
Tangible assets |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
83 |
83 |
|
|
Share premium reserve |
490 |
490 |
|
|
Capital redemption reserve |
19 |
19 |
|
|
Retained earnings |
13,670,647 |
12,913,567 |
|
|
Shareholders' funds |
13,671,239 |
12,914,159 |
Approved and authorised by the
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Purdicom Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
|
|
At 1 January 2023 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
At 31 December 2023 |
83 |
490 |
19 |
12,913,567 |
12,914,159 |
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
|
|
At 1 January 2024 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
Purdicom Limited
Statement of Cash Flows for the Year Ended 31 December 2024
|
Note |
2024 |
2023 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Profit on disposal of tangible assets |
- |
( |
|
|
Finance income |
( |
( |
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease in stocks |
|
|
|
|
(Increase)/decrease in trade debtors |
( |
|
|
|
Decrease in trade creditors |
( |
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
( |
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
- |
|
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Payments to finance lease creditors |
- |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
4,591,900 |
472,299 |
|
Purdicom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
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.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The financial statements have been prepared on a going concern basis.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax payable and deferred tax.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Purdicom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Leasehold improvements |
Over the life of the lease |
|
Plant and machinery |
33% straight line |
|
Furniture, fittings and equipment |
33% straight line |
|
Motor vehicles |
25% - 33% straight line |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Intangible assets other than goodwill |
Over 36 months |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Purdicom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
|
Revenue |
The analysis of the company's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Research and development cost |
|
( |
|
Profit on disposal of property, plant and equipment |
- |
( |
Purdicom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Other short-term employee benefits |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Management |
|
|
|
Admin |
|
|
|
Technical support |
|
|
|
Sales |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
467,189 |
468,161 |
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
Purdicom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax decrease from other tax effects |
( |
( |
|
Total tax charge |
|
|
Purdicom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Deferred tax
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Accelerated tax depreciation |
- |
|
|
- |
|
|
2023 |
Asset |
Liability |
|
Accelerated tax depreciation |
- |
|
|
- |
|
|
Intangible assets |
|
Other intangible assets |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
- |
- |
The aggregate amount of research and development expenditure recognised as an expense during the period is £
Purdicom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
|
Long leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Additions |
- |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2024 |
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
Included within the net book value of land and buildings above is £906 (2023 - £6,538) in respect of long leasehold land and buildings.
Purdicom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Stocks |
|
2024 |
2023 |
|
|
Other inventories |
|
|
|
Debtors |
|
Current |
2024 |
2023 |
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accruals |
|
|
|
|
Income tax liability |
172,367 |
196,174 |
|
|
|
|
Purdicom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Provisions for liabilities |
|
Deferred tax |
Other provisions |
Total |
|
|
At 1 January 2024 |
|
|
|
|
Increase (decrease) in existing provisions |
( |
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
|||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
83 |
|
83 |
|
Loans and borrowings |
The company has a debt discounting facility which is secured against trade debtors. The facility available to the company at the reporting date was £5,000,000 (2023: £5,000,000) of which 85% can be borrowed against of which £nil (2023: £nil) was in use. The debt is repaid on successful recovery of qualifying sales invoices. The interest charges incurred can be seen on the income statement under interest payable. Hire purchase liabilities are secured against the assets to which they relate.
Purdicom Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
|
Related party transactions |
|
Other transactions with directors |
At the reporting date the director M Smith was owed £40 (2023: nil) from reimbursed expenses.
At the reporting date the director H C G Garrod was owed £170 (2023: £147) from reimbursed expenses.
Dividends totalling £317,077 (2023: £352,270) were paid in the year in respect of shares held by the company's directors.
The ultimate controlling party is H C G Garrod by virtue of a majority share holding and his position as managing director.