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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2025
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PENN ELCOM LIMITED
COMPANY INFORMATION
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PENN ELCOM LIMITED
CONTENTS
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PENN ELCOM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present the strategic report of the Company for the year ended 31 December 2025.
Penn Elcom Limited (the "Company") manufactures and distributes over 3000 catalogue products and is a leading manufacturer of quality flight case hardware, speaker hardware, 19 inch racking and accessories.
The Company made a loss before tax of £725,324 (2024: profit before tax of £736,121).
The directors are driven to continue with long term-term value for the organisation with process to develop and implement growth, including new products and markets. Given the difficult economic and market conditions at present, the directors remain satisfied with the performance of the Company during the year and are confident of improved performance in the future. Penn Elcom Limited showed a decrease in turnover of 4.6%. This downturn was due to GDP in the UK being flat in the second half of 2025 and the high cost of inflation was found to be challenging in the year. Economic uncertainty and geopolitical uncertainty also had an impact. The Company performed relatively well as the showbiz industry activity remained strong during the year, where Penn Elcom derives the majority of its income. In doing so we managed to make the best use of our resources by creating new products.
The directors believe the principal risks and uncertainties facing the business are general business and market risks as experienced by most businesses of our nature.
Changes to the political and economic climate and their impact on rates of exchange and freedom of trade are also of primary concern, however we believe that the Company is well positioned to mitigate these risks and take advantage of opportunities as they arrive. The directors are fully aware of all the emerging risks facing the Company and threatening our business model. The Company’s exposure to the price of raw materials is important therefore purchase strategies are monitored regularly as well as selling prices.
The continuous threats and implementation of increased tariffs mainly linked to USA, Europe and Asia lead to uncertainly, irregular and erratic sales and purchases. This impacts resources, costs and labour.
Global tensions within the Middle East and the continuing war between Russia and Ukraine continue to impact our industry such as delays in shipping routes, fluctuating currency markets and increased energy costs.
Technological transformation, talent shortages, government taxing and National Insurance increases will always be a concern in our industry.
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PENN ELCOM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Foreign currency risk
The Company’s currency risk is controlled by natural hedge wherever possible and where there is an excess, the Company may take out foreign currency contracts accordingly.
The Company’s policy is to limit its cost of borrowing by paying cash using a mix of debt types.
The Company’s policy is to insure its trade debtors and exercise strong credit control procedures.
The Company’s products are subject to changing market prices at both selling and purchasing levels. It manages the risk by striving to be a low-cost producer.
The Company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets. Investment is carefully controlled, with authorisation limits operating at board level and cash payback periods applied as part of the investment appraisal process.
For the year ended 31 December 2025 the Company posted a loss before tax of £725,324 (2024: £736,121 profit). Despite this, the directors are confident of improved performance in the future.
The Company’s Balance Sheet remains strong with a net asset position of £17,804,780 as at 31 December 2025, decreasing slightly from £17,937,049 at the previous year end. This puts us in a strong position to weather any future economic turmoil out with our control.
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PENN ELCOM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors monitor closely the performance of the business using key performance indicators (KPI’s) for both financial and non-financial.
These KPI's include: Financial key performance indicators
∙Net assets: reviewed on a monthly basis by the directors throughout the year. Net assets as at 31 December 2025 are £17,804,780 (2024: £17,937,049).
∙Gross profit margin: reviewed by directors throughout the year. Raw material levels are regularly reviewed, together with the level of sales throughout the year. The gross profit margin was 17.6% for the year ended 31 December 2025 (2024: 25.8%).
∙Operating margin: reviewed by directors throughout the year. Administrative expense levels are regularly reviewed, together with one-off exceptional items throughout the year. The operating margin was -3.5% for the year ended 31 December 2025 (2024: 2.2%).
∙Inventory turnover ratio for the year ended 31 December 2025 was 3.5 (2024: 2.9).
∙Inventory days for the year ended 31 December 2025 were 95.7 (2024: 128.2).
∙EBITDA is reviewed regularly to ascertain the progression of the Company on a monthly basis. For the year ended 31 December 2025 EBITDA was £393,757 (2024: £2,113,641).
Non-financial key performance indicators
∙Customer service: the level of quality and performance are continually reviewed by directors to maximise the satisfaction of customers.
∙Staff retention and wellbeing: monitored by directors to ensure employee welfare is at the forefront of the Company and staff retention is maintained.
∙Cashflow targets: forecast short term cashflows are reviewed weekly and monthly to ensure the Company has sufficient funds available to continue to trade.
The directors consider the above ratios to be at an acceptable level for the year ended 31 December 2025 and can be calculated using the figures shown within the primary statements which follow this report.
During the year, dividends of £Nil were paid (2024: £Nil).
This report was approved by the board on 5 October 2026 and signed on its behalf.
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PENN ELCOM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the audited financial statements for the year ended 31 December 2025.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent; and
∙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 to 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.
The principal activity of the Company is that of the manufacture and sale of light engineering products and audio equipment.
The loss for the year, after taxation, amounted to £132,269 (2024 - profit £612,348).
No dividends were paid in 2025 or 2024.
The directors who served during the year were:
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PENN ELCOM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The auditors, Wilder Coe Ltd, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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PENN ELCOM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENN ELCOM LIMITED
We have audited the financial statements of Penn Elcom Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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PENN ELCOM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENN ELCOM LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the 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.
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 Directors' Report.
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PENN ELCOM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENN ELCOM LIMITED (CONTINUED)
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 Auditors' 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity:
∙Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, company law, tax and pension legislation and distributable profits legislation; and
∙Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include operating licence, environmental regulations and health and safety legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprise of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation of claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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 Auditors' Report.
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PENN ELCOM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENN ELCOM LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Wilder Coe Ltd
Chartered Accountants & Statutory Auditors
1st Floor Sackville House
143-149 Fenchurch Street
London
EC3M 6BL
Date:
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PENN ELCOM LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PENN ELCOM LIMITED
REGISTERED NUMBER: 04768848
BALANCE SHEET
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 29 form part of these financial statements.
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PENN ELCOM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PENN ELCOM LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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PENN ELCOM LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2025
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Penn Elcom Limited (company number: 04768848), having its registered office at 1st Floor Sackville House, 143-149 Fenchurch Street, London, EC3M 6BN, is a private limited company incorporated in England and Wales.
The principal place of business is 9-10 Parsons Road, Parsons Industrial Estate, Washington, NE37 1HB.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over 20 years to the Statement of Income and Retained Earnings over its useful economic life.
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.
Assets that are subject to depreciation or amortisation are assessed at each Balance Sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each Balance Sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. Investments in non-derivative instruments that are equity to the issuer are measured:
∙at fair value with changes recognised in the Statement of Income and Retained Earnings if the
shares are publicly traded or their fair value can otherwise be measured reliably;
∙at cost less impairment for all other investments.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the Balance Sheet date. Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Management has considered the areas requiring estimation and judgment in the application of the entity's accounting policies and has concluded that a key source of estimation uncertainty that could have a significant effect on the amounts recognised in the financial statements under FRS 102 is stock valuation. Stock valuation: At each year end, stock is reviewed on a line-by-line basis to assess whether any impairment is required. The assessment is based on management's review of the year-end stock listing and inspection of physical inventory and includes consideration of slow-moving, damaged or obsolete items. Any resulting impairment is recognised where the carrying value of stock is not expected to be recovered through sale or use.
The whole of the turnover is attributable to principal activity of the Company, being that of the manufacture and sale of light engineering products and audio equipment.
The geographical split of turnover has not been disclosed on the grounds that it is prejudicial to the Company's interests.
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
There were no factors that may affect future tax charges.
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Included within other debtors is a loan to a director of the Company, amounting to £641,195 (2024: £860,545). Amounts repaid during the year totalled £236,465. Interest is charged on the loan at 2.25% and the balance is repayable on demand.
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
During the year, a matter previously disclosed in the prior year as a contingent liability has been resolved. This was in relation to a potential financial penalty from the Health and Safety Executive (HSE). The final liability amounted to £86,537, which is to be paid by the Company on or before 18 November 2027. This outcome is lower than the original estimate of £220,000 to £1,200,000. The difference reflects updated information which became available during the year. The case has since concluded and no further liability is expected.
The directors have assessed that the amount of the liability is not significant in the context of the financial statements. Accordingly, no amount has been recorded within these financial statements in relation to this matter.
The Company makes payments to a defined contribution pensions scheme. The pension cost charge represents the contributions payable by the group to the fund and amounted to £179,769 (2024: £161,435). The outstanding pension liability at the year end was £39,974 (2024: £40,341).
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PENN ELCOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The ultimate parent undertaking and immediate parent company as at 31 December 2025 and 31 December 2024 is Penn Elcom Corporation, a company incorporated in the British Virgin Islands. The ultimate controlling party is R. Willems by virtue of his shareholding in Penn Elcom Corporation.
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