REGISTERED NUMBER: 02505544 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

PITACS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

9

Report of the Independent Auditors

11

Income Statement

14

Other Comprehensive Income

15

Balance Sheet

16

Statement of Changes in Equity

17

Cash Flow Statement

18

Notes to the Financial Statements

19

DIRECTORS:

Mr L Aci

Mr S Kalender

SECRETARIES:

Mr L Aci

Mr L Aci

REGISTERED OFFICE:

Bradbourne Point

Bradbourne Drive

Tilbrook

Milton Keynes

Buckinghamshire

MK7 8AT

REGISTERED NUMBER:

02505544 (England and Wales)

AUDITORS:

NYO Ltd

First Floor Office

34 Great Queen Street

London

WC2B 5AA

The directors present their strategic report for the year ended 31 December 2024.

The company was established in 1990 in the UK as the national distributor of heating products, mainly steel panel radiators under Ultraheat brand. The company has introduced into UK market a large range of designer radiators and towel rails. In 1994 the company has opened electrical division and began distributing wide range of electrical and data cables into the UK market. In 2003, the Aeon brand has been launched which offers handmade, sculptural, and stylish stainless steel radiators. In 2006, Time LED brand was developed by Pitacs Limited which provides energy saving filament LED bulbs and fittings.

Pitacs Limited is now one of the largest distributors of heating products as well as the electrical cables in the UK and elsewhere, supplying over 10 countries across the world.

The main product lines are:

Ultraheat: Compact Radiators - steel panel convector radiators, designer steel radiators and towel rails

Aeon: Handmade stainless steel sculptural radiators and towel rails

Pitacs: Electrical and data cables

Time LED: Energy saving bulbs and fittings

Company's strategy is to become a leading national heating products' distributor brand based on three main elements:

1. Review the product ranges continually to ensure the products are up to date with technological advances and meet customers' expectations. Company continuously works on development of new products in order to extend the product range and enhance their offer.

2. Controlled distribution through two main channels: wholesale and retail. Management considers each new opportunity to ensure it is right for the brand and will deliver margin led growth.

3. Development of overseas markets. Company continues to manage growth in existing territories while considering new territories to expand.

REVIEW OF BUSINESS

The company's key financial and other performance indicators during the year were as follows:

Year End at 31.12.2024

Year End at 31.12.2023

£

£

Turnover

54,374,532

59,317,340

Total operating profit/loss

541,263

405,528

Average number of employees

97

101

The company’s principal activity continues to be the retail and wholesale of cable and heating products, including radiators and towel radiators.

Turnover for the year ended 31 December 2024 decreased by £4.9m (8%) compared with the prior year, reflecting weaker consumer confidence, higher borrowing costs and the ongoing cost-of-living pressures in the UK, which reduced household affordability.

The gross profit margin remained stable at 11% (2023: 11%). Operating profit increased to £541,263 (2023: £405,528), primarily due to tighter cost control within administrative expenses and a modest reduction in finance costs.

Finance costs reduced to £739,527 (2023: £800,373), although borrowing costs remain at elevated levels due to sustained Bank of England interest rate rises.

After finance costs, the company reported a loss before taxation of £198,264 (2023: £394,845).

The persistence of elevated interest rates has maintained pressure on finance costs, driven by mortgage payments paid by SNL Investments Limited, the company’s landlord.

Net assets decreased to £7,998,036 (2023: £8,851,300), reflecting the retained loss for the financial year.

PRINCIPAL RISKS AND UNCERTAINTIES

The Board recognizes there are a number of risks and uncertainties facing the company. The Board has established a structured approach to identify, assess and manage these risks:

Issue

Potential impact

Mitigation

Strategic risks

External events

External events such as economic recessions, political instability, and global cost of living crisis have the capacity to disrupt supply chains, influence customer demand, and directly affect the company's financial performance. The COVID-19 pandemic, for instance, had an unexpected positive impact, boosting sales due to increased interest in DIY projects. On the other hand, Brexit has introduced uncertainties and potential disruptions in trade, affecting the movement of goods and services between the United Kingdom, Europe, and global markets.

All factors affecting the global stakeholders are monitored closely on an ongoing basis to ensure preparedness for external events. This includes vigilance in monitoring how such events may impact supply chains, customer demand, and our financial performance. In response to the dynamic nature of these events, we emphasize adaptability, with scenario planning in place to anticipate and react swiftly to different challenges. We have strengthened trade compliance procedures, diversified supply chain sources, and explored market expansion opportunities. These measures collectively impact our ability to navigate external events effectively and maintain long-term resilience.

Brand and reputational risk

Our brand and reputation are invaluable assets, vital to our business success. Any adverse actions or partnerships have the potential to impact customer trust and loyalty, resulting in decreased sales and market share. Furthermore, ongoing litigations involving the company pose a threat to our reputation and brand image. Negative customer reviews can also impact our brand's integrity. These factors pose a critical need to carefully manage and protect our brand and reputation, as they are integral to our long-term sustainability and growth.

We prioritize meticulous due diligence in choosing our suppliers and customers, stringent quality control measures to maintain product and service excellence, and ongoing assessments to ensure their alignment with our values. Furthermore, we proactively monitor customer feedback and reviews, promptly addressing concerns to maintain a positive and reputable image in the industry. These measures present our commitment to preserving trust, loyalty, and our brand's integrity.

Cybersecurity Threat

As digital transactions and supply chain management become more integrated, the risk of cyberattacks can impact our operations and customer trust. Cyberattacks can disrupt daily operations, leading to delays in order processing, inventory management, and customer service. Unauthorized access to sensitive customer or business data can lead to significant financial losses and reputational damage. Also, loss of proprietary information or product designs can hinder competitive advantage resulting in intellectual property theft.

We conduct periodic assessments of IT systems to identify vulnerabilities and strengthen defenses and regularly back up critical data and systems to ensure quick restoration in the event of a cyber incident. We also use encryption for sensitive data both at rest and in transit to protect against unauthorized access. We implement ongoing cybersecurity awareness training for employees to recognize phishing attempts and other threats ensuring all software, including security applications, is up to date to protect against known vulnerabilities. We are looking into obtaining cyber insurance to help cover potential financial losses from cyber incidents.

Changing Consumer Preferences

A shift towards renewable energy sources and smart home technologies could affect demand for traditional heating products resulting in decline in sales of conventional heating products and cables

We conduct regular market analysis to understand emerging trends and consumer preferences, enabling proactive adjustments to product offerings. Our product diversification team works on expanding the product range to include innovative and sustainable options that align with current consumer interests, such as energy-efficient or smart home products. Directors regularly attend exhibitions to keep an eye on competitors to understand their strategies and adapt accordingly, ensuring that our offerings remain competitive.

Operational risks

Cost inflation

Increased costs in raw materials, labour, and operational expenses may put pressure on our pricing strategies and profitability place substantial pressure on pricing strategies, profit margins, and overall profitability. The ongoing cost of living crisis has necessitated price increases for products, potentially affecting consumer spending and market dynamics. This inflationary pressure introduces uncertainty into the company's financial stability, emphasizing the need for vigilant cost management and strategic pricing to maintain competitiveness and preserve profit margins.

We continuously monitor operational costs, seeking opportunities for efficiency improvements and exploring alternative sourcing options to counter inflationary pressures. The company is committed to maintaining competitive pricing while preserving profit margins, achieved through careful pricing analysis and a customer-centric approach. We also place a strong emphasis on value delivery to customers to justify any necessary price adjustments. These mitigation measures collectively ensure the company's ability to navigate cost-related challenges and maintain long-term financial stability and competitiveness.

People

Our performance is linked to the performance of our people and particularly, to the leadership of key individuals or those with specialized skills. The loss of a key individual whether at management level or within a specialist skill set could disrupt daily operations,lead to a deficiency in critical expertise, and create a succession gap in leadership. Such disruptions could impact project timelines, customer relationships, and overall business continuity. Additionally, the loss of specialized expertise could compromise our ability to deliver high-quality products and services. Managing people is essential to ensure the stability and effectiveness of our operations.

We conduct regular talent reviews and succession planning to identify and nurture internal talent, ensuring a smooth transition in case of personnel changes. Knowledge transfer practices within teams help preserve critical institutional knowledge. Additionally, we offer competitive compensation packages, invest in training and development programs, and foster an engaging work culture. Incentives such as employee discounts, and performance-based rewards further motivate our employees, ensuring that we retain and empower our workforce to drive the company's success.

Health and Safety Risks

Ensuring a safe working environment is crucial; any accidents or safety violations can lead to legal repercussions and affect employee morale. Higher incidents of workplace injuries can result in increased insurance premiums and costs associated with workers’ compensation claims. Accidents may also lead to temporary shutdowns or disruptions in operations, affecting overall efficiency and service delivery.

We regularly evaluate our workspace to minimize ergonomic risks, ensuring that workstations and warehouse are designed to reduce strain and injury. Staff and visitors are provided with appropriate PPE and we ensure its proper use in relevant work environments. We conduct routine safety inspections and audits to identify potential hazards and ensure compliance with regulations. Warehouse staff are given proper training and need to be licenced before driving the forklift trucks.

Financial risks

Economic downturn

During economic downturns, consumers tend to cut back on non-essential purchases, leading to decreased demand for heating products. Lower demand directly impacts sales revenue, making it difficult to cover fixed costs and maintain profitability. Economic instability can also increase the likelihood of customer defaults on payments, resulting in higher bad debt levels. Reduced sales can lead to cash flow challenges, affecting the ability to meet operational expenses, pay suppliers, or invest in growth. Companies may be forced to reduce staff or implement pay cuts, impacting employee morale and productivity. Uncertainty about future economic conditions can lead to delays in capital investments or new product development.

Management is constantly working on expanding the product range to include essential items or energy-efficient solutions that may still attract consumer interest during downturns, for example in return to energy price increase the company has developed a new compact product that can fit seamlessly into any room - Energy Efficient Heating with the A-Line Electric Panel Heater with Wi-Fi Enabled Smart Control. The wall-mounted or floor-standing panel radiator has connectivity with the Tuya app, providing ideal heating control with a mobile phone. There are five sizes to heat a space in a choice of White RAL 9016 or Anthracite RAL 7016 finish. It has got a 750-2400 Watt Heat output models and fully certified and ERP LOT20 compliant, IP24 rated and come with a reassuring warranty of two years. They are affordable with a price range from £128-£158 excluding VAT.

Currency, interest and credit risks

The company is exposed to some financial risks related to currency exchange rate fluctuations, interest rate changes, and credit risk. Adverse developments in these areas could lead to substantial financial implications, affecting the company's profitability, cash flow, and overall financial stability. Currency exchange rate fluctuations may result in volatility in financial results, while changes in interest rates can impact borrowing costs and investment returns. Additionally, credit risk poses the potential for losses related to counterparties and suppliers, affecting the company's financial health.

We maintain a robust financial management strategy, which includes the use of currency hedging, interest rate risk assessments, and diligent credit risk evaluations. The company places a strong emphasis on continuous monitoring of its financial exposures, enabling it to proactively adjust its financial strategies and risk mitigation measures in response to changing circumstances. Moreover, company currently has invoice discounting advance and trade payable finance facilities with bank to maintain a healthy cashflow and liquidity of the business.

Increased Competition

Heightened competition can lead to aggressive pricing strategies, reducing profit margins and overall profitability. To maintain visibility and attract customers, distributors may need to invest more in marketing, leading to higher operational costs.

Managementr regularly analyzes competitor strategies, market trends, and consumer preferences to stay ahead of the competition and adapt quickly. We invest in employee training to enhance service quality and product knowledge, ensuring that staff can effectively address customer needs. Forming strategic partnerships with our manufacturers in Turkey and China and other distributors helps to enhance our product offerings and distribution capabilities.

The company will concentrate on popular heating products to improve its profit margins throughout the following financial year.

ON BEHALF OF THE BOARD:

Mr S Kalender - Director

25 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of distributors of heating and electrical products.

DIVIDENDS

The company paid £Nil dividends (Year End 31.12.2023: £Nil) during the financial year.

FUTURE DEVELOPMENTS

The directors aim to maintain the management policies which have resulted in the growth over the last year. They consider that next year will show a further growth in sales and profits from continuing operations and cost savings.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr L Aci

Mr S Kalender

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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.

Under applicable law and regulations, the directors are also responsible for preparing a Strategic Report and Directors' Report that complies with that law and those regulations.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr S Kalender - Director

25 September 2025

Opinion

We have audited the financial statements of Pitacs Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement 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 loss 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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 nine, 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 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.

Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of legal and regulatory framework that are applicable to the company including how the company is complying with these regulations by making enquiries of management and key personnel. We identified areas of laws and regulations specific to the client that could reasonably be expected to have a material effect on the financial statements which are Anti-Money Laundering Regulations, General Data Protection Regulations, Employment Rights Act 1996, The Electrical Equipment (Safety) Regulations 2016 and Provision and Use of Work Equipment Regulations 1998. We inspected the company's regulatory and legal correspondence file and discussed the policies and procedures regarding compliance with laws and regulations with the directors and other key personnel. We communicated the identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit. Engagement team collectively have the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. Through the audit procedures, we did not become aware of any actual or suspected non-compliance. Due to management's involvement in day to day running of the business, we have identified areas such as income recognition, threat of management override and completeness of related party transactions susceptible to fraud. We have carried out our work with high scepticism and performed extensive tests in relevant sections. Owing to the inherent limitations of an audit, there is unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Mr Niyazi Oztoprak (Senior Statutory Auditor)

for and on behalf of NYO Ltd

First Floor Office

34 Great Queen Street

London

WC2B 5AA

25 September 2025

NYO Ltd (Statutory Auditors)

TURNOVER

3

54,374,532

59,317,340

Cost of sales

48,283,309

52,654,784

GROSS PROFIT

6,091,223

6,662,556

Distribution costs

1,807,845

1,848,622

Administrative expenses

3,895,101

4,536,331

5,702,946

6,384,953

388,277

277,603

Other operating income

152,986

127,925

OPERATING PROFIT

5

541,263

405,528

Interest payable and similar expenses

6

739,527

800,373

LOSS BEFORE TAXATION

(198,264

)

(394,845

)

Tax on loss

7

(69,762

)

(72,563

)

LOSS FOR THE FINANCIAL YEAR

(128,502

)

(322,282

)

LOSS FOR THE YEAR

(128,502

)

(322,282

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(128,502

)

(322,282

)

FIXED ASSETS

Intangible assets

9

57,924

28,256

Tangible assets

10

523,605

271,861

581,529

300,117

CURRENT ASSETS

Stocks

11

17,068,628

18,765,416

Debtors

12

13,982,838

11,815,789

Cash at bank and in hand

90,709

142,947

31,142,175

30,724,152

CREDITORS

Amounts falling due within one year

13

22,962,421

22,095,743

NET CURRENT ASSETS

8,179,754

8,628,409

TOTAL ASSETS LESS CURRENT LIABILITIES

8,761,283

8,928,526

CREDITORS

Amounts falling due after more than one year

14

(38,485

)

(2,226

)

PROVISIONS FOR LIABILITIES

18

-

(75,000

)

NET ASSETS

8,722,798

8,851,300

CAPITAL AND RESERVES

Called up share capital

19

20,000

20,000

Retained earnings

20

8,702,798

8,831,300

SHAREHOLDERS' FUNDS

8,722,798

8,851,300

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

Mr S Kalender - Director

Mr L Aci - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

20,000

9,153,582

9,173,582

Changes in equity

Total comprehensive income

-

(322,282

)

(322,282

)

Balance at 31 December 2023

20,000

8,831,300

8,851,300

Changes in equity

Total comprehensive income

-

(128,502

)

(128,502

)

Balance at 31 December 2024

20,000

8,702,798

8,722,798

Cash flows from operating activities

Cash generated from operations

22

1,136,975

2,204,273

Interest paid

(739,527

)

(800,373

)

Tax paid

81,562

(137,135

)

Deferred tax

9,596

3,696

Net cash from operating activities

488,606

1,270,461

Cash flows from investing activities

Purchase of intangible fixed assets

(54,050

)

-

Purchase of tangible fixed assets

(339,594

)

(80,053

)

Net cash from investing activities

(393,644

)

(80,053

)

Cash flows from financing activities

Invoice discounting advances

(177,292

)

(1,254,312

)

Trade payable finance

4,551

49,638

Capital repayments in year

46,551

(28,136

)

Amount introduced by directors

12,116

5,846

Amount withdrawn by directors

(33,126

)

(18,181

)

Net cash from financing activities

(147,200

)

(1,245,145

)

Decrease in cash and cash equivalents

(52,238

)

(54,737

)

Cash and cash equivalents at beginning of year

23

142,947

197,684

Cash and cash equivalents at end of year

23

90,709

142,947

1.	STATUTORY INFORMATION

Pitacs Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with Financial Reporting Standard 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, and they have also been prepared on a going concern basis.

TURNOVER

Turnover represents net invoiced sales of goods, excluding value added tax. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT. The following criteria must be met before revenue is recognised.

Sale of goods

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on dispatch of goods.

INTANGIBLE FIXED ASSETS

The company capitalises expenditure incurred on registering patents, trade marks and designs, computer software and website development. Patents and trade marks expenditure is amortised over five years, computer software expenditure is amortised over four years and website development is amortised over five years being the directors estimate of the products' marketable life.

The carrying value of intangible assets is reviewed for impairment at the end of each year if events or changes in circumstances indicate the carrying value may not be recoverable.

TANGIBLE FIXED ASSETS

Tangible assets are carried at its initial cost (also referred to as historical cost) less any accumulated depreciation and impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property - 20% on reducing balance

Plant and machinery - 25% on reducing balance

Fixtures and fittings - 25% on reducing balance

Motor vehicles - 25% on reducing balance

Computer Equipment - 25% on straight line basis

STOCKS

Stocks comprise goods purchased for resale and valued at the lower of cost and net realizable value, after making due allowance for obsolete and slow moving items. The cost model for accounting for stock is based on first in, first out (FIFO), it assumes the oldest stocks are sold first, so the cost value is the cost of the most recent stock.

FINANCIAL INSTRUMENTS

Financial instruments are classified and accounted for as either debt instruments or financial liabilities, according to the contractual arrangements entered into.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

HIRE PURCHASE AND LEASING COMMITMENTS

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

DEBT FACTORING

Company has retained significant benefits and risks of factored debts. Factored debts are represented as part of trade receivables and corresponding liability in respect of the proceeds received from the factoring company are shown within current liabilities.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£

£

United Kingdom

54,286,908

59,180,753

Europe

87,624

136,587

54,374,532

59,317,340

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

3,152,464

3,338,290

Social security costs

304,179

294,768

Other pension costs

88,387

87,006

3,545,030

3,720,064

The average number of employees during the year was as follows:

31.12.24

31.12.23

Directors

2

2

Administration

18

18

Sales

23

25

Warehouse

54

56

97

101

31.12.24

31.12.23

£

£

Directors' remuneration

116,498

110,950

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Key management personnel is comprised of above-mentioned directors, who controls and are involved in the day to day operations of the company. Pitacs Limited paid employer pension contributions to directors of £15,920.

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Hire of plant and machinery

40,899

47,338

Depreciation - owned assets

67,100

64,725

Depreciation - assets on hire purchase contracts

20,750

16,924

Patents and licences amortisation

102

205

Website development costs amortisation

2,471

2,498

Computer software amortisation

21,809

22,592

Auditors' remuneration

16,283

13,788

Foreign exchange differences

(17,602

)

(19,886

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Trade finance discount charges

681,010

732,543

Invoice discount charges

58,517

67,830

739,527

800,373

7.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

(79,358

)

(68,867

)

Deferred tax

9,596

(3,696

)

Tax on loss

(69,762

)

(72,563

)

UK corporation tax has been charged at 19% .