Introduction
TET Limited is an established independent IT value added reseller in the United Kingdom capable of delivering goods and services world-wide. Our aim is to deliver a good service and maximise the value customers obtain from their investment in IT.
Our ability to do this is based on five key attributes:
Experience
Our teams are experienced and qualified IT professionals with many years’ experience in providing ICT solutions.
Track record
We have successfully delivered IT projects, solutions and effective support for a wide range of customers in many different locations.
Vendor accreditations
We are accredited by main vendors including Microsoft Gold Partner, HPE Partner, HP Inc. Partner, NetApp Gold Partner, Vmware by Broadcom Solutions Partner, Cisco Premier Partner and Citrix.
Quality
TET management systems are accredited for ISO 9001, ISO 14001 and ISO 27001.
Account management
Every customer is assigned a dedicated account manager, responsible for the overall relationship with the customer.
Our focus is on listening to customers and providing tailored solutions that match requirements, better enabling strategic, financial and quality benefits to be realised. Backed by vendor accreditations TET’s trained and experienced staff aim to provide the very highest level of service to their customers.
The company had a successful year in 2025.
Turnover increased to £74.0m (2024: £69.9m) and increase in gross profit to £9.4m (2024: £8.5m).
The turnover and gross profit improvements were driven with the increase in existing clients and the onboarding of new business during the year across both public and private sector. All business increases are result of organic growth and hardwork by the dedicated staff at TET.
During the year we have continued to develop solution offerings and we have strengthened relationships with key stakeholders.
Management considers the key performance indicators of the company to be gross profit and operating profit.
The group profit and loss account for the year is set out on page 12 and shows an operating profit for the year of £1.4m (2024: £1.4m).
The company balance sheet remains strong and is shown on page 15 in the financial statements.
The group's total assets have increased to £24.5m (2024: £17.2m) and the shareholder's funds have increased to £9.3m (2024: £8.0m).
The management team at TET has identified the following factors as major potential risks normally associated with technology companies in dynamic and changing markets. Some, such as innovation, quality of service, staffing, are specific risks that require specific, identified actions to mitigate their effects. Others, such as the impact of competition, are areas addressed through strategic planning and operational management processes.
The extent to which worldwide politics and the situation in the Middle East will affect our future operations is not known with any certainty but we have taken action to protect our staff and to implement business continuity plans to limit the disruption to our business in the supply chain.
TET has embraced the new world of hybrid working. Our staff are able to work from home comfortably and productively.
We continue to monitor our cash collections and credit limits of our customers to manage the risk of default. The company has continued to operate effectively and the directors will continue to monitor and manage the risk. The management agenda has been well balanced between maintaining our operational resilience, monitoring our staff mental wellbeing and planning for the future.
Cost inflation and legislative change
TET’s operational costs are affected by underlying cost inflation, legislative and fiscal policy changes in relation to, for example wages, rates and rent.
Competition in technology sector
The IT product and services market continues to be competitive. The company seeks to manage the risk of losing key customers to competitors by the provision of added value services, improving response times in the supply of products and the handling of customer queries and by maintaining strong relationships whilst promoting the strong values in the Code of Conduct of employees and key stakeholders.
The IT industry is witnessing a significant change in how businesses access and process information. There is an accelerating trend towards accessing data via the cloud and customers are seeing IT more as an operating expense rather than a capital expense. In moving our own infrastructure and experiencing at first hand the company has given our technical team the first hand experiences to enable them in delivering suitable solutions.
Economic uncertainty
The business can be adversely affected by political or economic changes. The impact can be on both the availability in the supply chain and the market prices of IT products. The continued uncertainty surrounding the relationship with the EU and the impact of the war in the Middle East will have a direct impact on customer confidence to invest and the ability to manufactures to supply. The directors believe the group is well placed to manage the business through this difficult scenario.
The sales performance of the business continued to be strong throughout the first half of 2026.
Attracting and retaining key employees
The failure to hire, retain and motivate executives and other key employees could have a significant impact on its operations. The company continues to support our staff in the development of their skills and experience. We have undertaken part in an apprenticeship training programme both in sales and technical skills to train the staff for the future.
Failure or unavailability of operational infrastructure
Cyber risk is a serious consideration in the business affecting all stakeholders in the business including suppliers, customers and staff. Any risk of financial loss, disruption or damage to the reputation of the company from a failure of our infrastructure or that of a customer is assisted by our technical support team. No organisation can provide complete guarantees of nullifying the exposure to this risk. The business technical team enforces processes of monitoring, detecting and resolving any threats to our business or customers that we support. Failure to supply products and provide services to meet customer requirements for innovation and quality could have adverse effect on its results. TET is working closely with our IT channel partners to identify, forecast and seek alternative solutions wherever possible to assist our customers.
Key financial performance indicator includes monitoring and management of profitability and monetary working capital.
Financial Data |
| 2025 | 2024 | Measure |
Revenues | Up 5.9% | £74.0m | £69.9m |
|
Gross Profit | Up 10.6% | £9.4m | £8.5m |
|
Return on Capital |
| 13.80% | 14.30% | Profit after Tax / Net Assets |
Current Ratio |
| 1.6 | 1.87 | Current Assets / Current Liabilities |
Sales / Employee £000 |
| £1.19m | £1.23m | Turnover / Av. No. of Employees |
The company's performance remains solid with improvements in turnover and gross profit. The sales / employee have fallen but the decrease was expected as a result of continued recruitment of new staff on apprenticeship training programmes in both sales and technical in last 12 months.
The directors have taken steps to encourage continuity and a level of sustainability with the entrustment of the management team to focus on the day to day management of the business and the improvement of processes, systems and procedures. Our people and their relationships in the supply chain are considered to be very important to the overall success of the business.
The directors of the group, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:
A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:
-The likely consequences of any decisions in the long term;
-The interests of the company's employees;
-The need to foster the company's business relationships with suppliers, customers and others;
-The impact of the company's operations on the community and environment;
-The desirability of the company maintaining a reputation for high standards of business conduct; and
-The need to act fairly as between shareholders of the company.
As part of their induction, a director is briefed on their duties so that they can fulfil their duties. As the board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct.
As Directors we fulfil our duties as follows:
Risk management
We effectively identify, evaluate, manage and mitigate the risk we face.
The management team has identified some factors as major potential risks normally associated with trading in a dynamic and changing world market. Some, such as innovation, quality service, staffing, are specific risks that require specific, identified actions to mitigate their effects. Others, such as the impact of competition, are areas addressed through strategic planning and operational management processes.
Our people
The company is committed to being a responsible business. Our behaviour is aligned with the expectations of our people. People are at the heart of our services. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in the way we do business.
Our business relationships with customers, suppliers and others
For our growth, we develop and maintain strong client relationships. We value all of our suppliers and have year on year contracts with our key suppliers. Managing these relationships is critical in ensuring the company delivers on its strategy. Where these relationships are tested, steps are taken to ensure that they are addressed promptly and successfully.
Community and environment
Our plans take into account the impact of the company's operations on the community and environment and our wider social responsibilities. The company's approach is to use its position of strength to create positive change for the people and communities with which it interacts.
Our shareholders
The board seeks to ensure that communications are clear and its actions are in accordance with the company's strategic aims to promote the long term success of the company. The board is continually seeking ways in which to engage with shareholders and investors.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The company’s financial instruments are its working capital instruments including trade debtors and trade creditors.
Credit risk
All customers are credit assessed at the outset of the commencement any business and regularly credit checked thereafter. The business exposure to customers debt is monitored continually whilst assessing the risk of any significant bad debts. A review of suppliers is also carried out regularly to ensure that we have a robust supply chain to be able to deliver to our customers.
Liquidity risk
The group has no external funding. The cashflow streams are generated from our business activities and management monitor the working capital closely to ensure that the company maintains a high liquidity ratio. Debtor days are monitored regularly and are considered to be at a satisfactory level.
Employees involvement
The company operates an open office environment where all employees have access to management. The company encourages the involvement of its employees in its management through regular meetings and open discussion, which have the responsibility for the dissemination of information of particular concern to employees and for receiving their views on important matters of policy.
The directors recognise that the company achievements are entirely due to the interaction and team work of all of our employees. We have a relatively small team of 62 employees (2024: 57) all of whom approach their responsibilities with enthusiasm and are capable of resolving any issues presented to them with an innovative spirit.
Management pay particular attention to the training and career development of our staff with a view to encourage their active role in the growth of the company. We continue to support the apprenticeship training programme in both the sales and technical environment.
Equal opportunity
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event that a member of staff becomes disabled every effort is made to ensure that their employment with the company continues and that appropriate training is arranged. It is the company policy that training, career development and promotion of all staff is in line with employment law.
Code of conduct
TET employees are exceptional people who work together working within our code of conduct; teamwork and request, integrity, accountability, innovation, learning and social responsibility. The values within this code provides us with the framework to guide our decisions and behaviour. They maintain our business standards of ethical, honest and legal practices. We expect all staff to adhere to the code and we require that our business partners and stakeholders abide by the code of conduct.
TET supplier code of conduct
TET supplier code of conduct takes into account the established principles of sustainability, human rights and corporate compliance. TET expects all of its suppliers and sub-contractors to share its principles which are expressed in the supplier code of conduct. We expect our suppliers to replicate these standards in the supply chain.
Sustainability policy
Whilst TET Group does not manufacture any goods, the management are conscious of the impact that our actions have on the planet. The company tries wherever possible to reduce wastage and recycle waste products whenever possible. The use of alternative energy sources and energy saving devices is encouraged.
Human rights policy
TET upholds the international recognised principles of human rights and working conditions.
Corporate compliance policy
The corporate compliance policy outlines key legal areas where the ethically and legally compliant behaviour of TET employees is of utmost importance to the company’s well-being.
On 2 April 2026, the company repurchased and cancelled 2,500 Ordinary Shares of £1 each for total consideration of £3.7m.
Subsequently, the company declared a dividend for £2.5m.
Also, after the year-end, the company acquired the entire issued share capital of TET iP Limited for £489k.
The company's environmental performance information is presented in accordance with the Streamlined Energy and Carbon Reporting (“SECR”) Policy. The table below represents the company's energy use and greenhouse gas (GHG) emissions from electricity and fuel for the annual reporting period from 1 January 2025 to 31 December 2025. The scope of the reporting includes all UK operations.
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2025 UK Government’s Conversion Factors for Company Reporting.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee.
The company has taken a number of steps during the year to improve energy efficiency and reduce energy consumption across its operations. These include:
Recycling pallets and packaging materials used in operations
Promoting cycle‑to‑work salary sacrifice schemes
Promoting electric vehicle salary sacrifice schemes
Reducing business travel and increasing the use of virtual meetings (e.g. Microsoft Teams)
Reducing paper usage and increasing the use of electronic document execution (e.g. DocuSign)
In addition, the company has undertaken broader environmental initiatives, including investment in tree planting projects to help offset carbon emissions, and support for programmes focused on water conservation.
We have audited the financial statements of TET Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations.
The objectives of our audit with regards to fraud are to identify and assess the risks of material misstatement of the financial statements due to fraud; design and perform procedures that respond appropriately to identified or suspected fraud; and obtain audit evidence regarding the risks of material misstatement of the financial statements due to fraud.
However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
obtain an understanding of the nature of the industry, the performance of the business, and of the design of the entity's policies for the remuneration of the management;
consider the internal control environment to mitigate the risk of fraud or non-compliance with laws and regulations;
identify laws and regulations applicable to the group and the parent company through discussions with management and from our commercial knowledge and sector experience, and assess the extent of compliance with laws and regulations from making enquiries of management;
obtain an understanding of the legal and regulatory framework within which the group and the parent company operate focusing on the most significant laws and regulations that have a direct impact on the financial statements and the operations of the entity including FRS 102, the Companies Act 2006 and tax compliance regulations;
communication of identified laws and regulations to our audit team and remain alert to any indications of non-compliance throughout the audit; and
ensure that the audit engagement team have the capability, competence and skill to identify non-compliance with laws and regulations.
To address the risk of non-compliance with laws and regulations, including fraud we performed the following audit procedures:
analytical procedures to identify unusual patterns or inconsistencies, and potential indicators of fraud or non-compliance;
testing of journal entries to identify unusual transactions and investigating the rationale behind unusual transactions;
assessing whether judgements and assumptions made in determining accounting estimates are indicative of bias;
reviewing the disclosures in the financial statements and agreeing to supporting documentation; and
enquiries with management and reviewing the minutes of meetings with management and those charged with governance.
Taking into consideration the inherent limitations of an audit, there is an 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. The more removed that laws and regulations are from transactions reflected in the financial statements, the less likely we would become aware of non-compliance. Also, auditing standards limit the procedures required to identify non-compliance with laws and regulations to the inspection of regulatory and legal correspondence, if any, and enquiry of management. This risk is higher in respect of irregularities arising from fraud, as such practices may involve deliberate concealment, collusion, forgery, or intentional misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,197,284 (2024 - £974,191 profit).
TET Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 6, Brent Trade Park, 390 North Circular Road, Wembley, London, NW10 0JF.
The group consists of TET Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below:
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company TET Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue form the sale of software licences is recognised when the significant risks and rewards of ownership of the software licence have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts to provide services is recognised in the period in which the services are provided when all of the following conditions are satisfied:
- The amount of revenue can be measured reliably;
- It is probable that the Company will receive consideration due under the contract;
- The stage of completion of the contract at the end of the reporting period can be measured reliably; and
- The costs incurred and the cost to complete the contract can be measured reliably.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The company makes an estimate of the recoverable value of trade receivables and other debtors. When assessing impairment of trade receivables and other receivables, management considers factors including the ageing profile of receivables and historical experience.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The annual depreciation charge for tangible fixed assets is affected by changes in the estimated useful economic lives and residual values of assets. The economic lives and residual values are assessed periodically. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilization and the physical condition of the assets.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2025 are as follows:
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
On 2 April 2026, the company repurchased and cancelled 2,500 Ordinary Shares of £1 each for total consideration of £3.7m.
Subsequently, the company declared a dividend for £2.5m.
Also, after the year-end, the company acquired the entire issued share capital of TET iP Limited for £489k.
During the year, total remuneration of key management personnel, including close family members, amounted to £2,569,119 (2024:£2,287,261).
During the year, no dividends were paid to the directors (2024: £300,000).
During the year, the company purchased telephony services from a connected company for £63,195 (2024: £57,000).
Also during the year, TET Limited provided management and support services to the connected company for £70,387 (2024: £65,000).
The director shareholders of the company are also director shareholders of the connected company.