Pinnacle Systems Ltd Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 14123622

Pinnacle Systems Ltd

Filleted Unaudited Financial Statements

31 May 2025

Pinnacle Systems Ltd

Balance Sheet

31 May 2025

	2025	2024
Note	£	£

Fixed assets

Intangible assets	5	1,694,341	1,388,700
Tangible assets	6	54,000	65,146
		------------	------------
		1,748,341	1,453,846

Current assets

Debtors	7	303,885	106,700
Cash at bank and in hand		1,548	2,490
		---------	---------
		305,433	109,190

Creditors: amounts falling due within one year	8	2,568,859	529,556
		------------	---------
Net current liabilities		2,263,426	420,366
		------------	------------
Total assets less current liabilities		( 515,085)	1,033,480

Creditors: amounts falling due after more than one year	9	776,345	1,402,354
		------------	------------
Net liabilities		( 1,291,430)	( 368,874)
		------------	------------

Capital and reserves

Called up share capital	10,752	10,752
Share premium account	348,496	348,496
Profit and loss account	( 1,650,678)	( 728,122)
	------------	---------
Shareholders deficit	( 1,291,430)	( 368,874)
	------------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income (including profit and loss account) has not been delivered.

For the year ending 31 May 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Pinnacle Systems Ltd

Balance Sheet (continued)

31 May 2025

These financial statements were approved by the board of directors and authorised for issue on 5 December 2025 , and are signed on behalf of the board by:

Mr R Martin

Director

Company registration number: 14123622

Pinnacle Systems Ltd

Notes to the Financial Statements

Year ended 31 May 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 1LG1, Glasshouse, Alderley Park, Macclesfield, Cheshire, SK10 4TG.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The business continues to receive the support of the Principal Shareholder via the loan from Sensory International Ltd and as a result, it is considered appropriate to prepare the financial statements on the going concern basis.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances .

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

	Development costs	-	25% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Equipment	-	25% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 12 (2024: 10 ).

5. Intangible assets

	Development costs
	£
Cost
At 1 June 2024	1,879,429
Additions	1,033,997
	------------
At 31 May 2025	2,913,426
	------------
Amortisation
At 1 June 2024	490,729
Charge for the year	728,356
	------------
At 31 May 2025	1,219,085
	------------
Carrying amount
At 31 May 2025	1,694,341
	------------
At 31 May 2024	1,388,700
	------------

6. Tangible assets

	Equipment
	£
Cost
At 1 June 2024	70,551
Additions	7,542
	--------
At 31 May 2025	78,093
	--------
Depreciation
At 1 June 2024	5,405
Charge for the year	18,688
	--------
At 31 May 2025	24,093
	--------
Carrying amount
At 31 May 2025	54,000
	--------
At 31 May 2024	65,146
	--------

7. Debtors

	2025	2024
	£	£
Trade debtors	1,680	–
Other debtors	302,205	106,700
	---------	---------
	303,885	106,700
	---------	---------

Included within other debtors is £177,899 deferred tax asset in respect of losses. The directors expect to utilise these losses against future profits, with utilisation commencing in year ended 31 May 2027 therefore the deferred tax asset will not be recoverable before 31 May 2026.

8. Creditors: amounts falling due within one year

	2025	2024
	£	£
Trade creditors	165,984	129,388
Amounts owed to group undertakings and undertakings in which the company has a participating interest	2,086,467	200,752
Social security and other taxes	130,871	62,483
Other creditors	185,537	136,933
	------------	---------
	2,568,859	529,556
	------------	---------

During the year the short term loan from Lusso Travel Ltd, a company under common control, was replaced by a new loan dated 20 January 2025. The loan agreement specifies a rolling 12 month facility with annual review by the lender and 7.5% interest rate. As at 31 May 2025, £1,367,752 is outstanding in respect of this loan. The loan is secured by a fixed and floating charge, dated 15 July 2025. Also during the year a loan was advanced by Worldwide Escapes Ltd, a company under common control. The loan agreement dated 30 October 2024 specifies a rolling 12 month facility with annual review by the lender and 7.5% interest rate. As at 31 May 2025, £330,000 is outstanding in respect of this loan. The loan is secured by a fixed and floating charge, dated 15 July 2025. Also during the year, the shareholder Mr Weaver advanced a loan to the company, with no formal loan agreement. As at 31 May 2025, £388,715 is outstanding in respect of the loan.

9. Creditors: amounts falling due after more than one year

	2025	2024
	£	£
Amounts owed to group undertakings and undertakings in which the company has a participating interest	776,345	1,402,354
	---------	------------

During the year amounts were repaid to Sensory International Limited, a company under common control, in respect of the agreed loan facility. The loan agreement dated 1 June 2023 specifies a rolling 12 month facility, with annual review by the lender and 7.5% interest rate. The loan was reviewed at 1 June 2025 and extended to 31 May 2026. The directors do not expect to repay the loan before 31 May 2026. As at 31 May 2025, the amount outstanding in respect of this loan was £776,344 (2024 £1,402,354)

10. Related party transactions

During the year payments were made in behalf of the company by Lusso Travel Ltd, a company under common control. As at 31 May 2025, £93,695 (2024 £61,832) was still owed and included within trade creditors.