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REGISTERED NUMBER: 05694539 (England and Wales)















FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

LINGUAPHONE GROUP LIMITED

LINGUAPHONE GROUP LIMITED (REGISTERED NUMBER: 05694539)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024




Page

Company information 1

Balance sheet 2

Notes to the financial statements 3


LINGUAPHONE GROUP LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: A A S Aldryaan
P N B Munro
D S Price



SECRETARY: P N B Munro



REGISTERED OFFICE: Sutton Point 6 Sutton Plaza
Sutton Court Road
Sutton
SM1 4FS



REGISTERED NUMBER: 05694539 (England and Wales)



SENIOR STATUTORY AUDITOR: Edmund Cartwright FCCA FMAAT



AUDITORS: Johnsons Chartered Accountants
Statutory Auditor
1-2 Craven Road
Ealing
London
W5 2UA

LINGUAPHONE GROUP LIMITED (REGISTERED NUMBER: 05694539)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
as restated
Notes £    £   
ASSETS

FIXED ASSETS
Intangible assets 4 907,354 1,001,376
Tangible assets 5 4,737 8,018
912,091 1,009,394

CURRENT ASSETS
Stocks 47,661 38,822
Debtors 6 660,916 533,360
Cash at bank and in hand 128,753 70,017
837,330 642,199
1,749,421 1,651,593

CAPITAL, RESERVES AND LIABILITIES

CAPITAL AND RESERVES
Called up share capital 615,684 615,684
Share premium 990,956 990,956
Retained earnings (3,891,928 ) (4,039,059 )
(2,285,288 ) (2,432,419 )

CREDITORS
Amounts falling due within one year 7 990,768 1,087,927
Amounts falling due after more than one
year

8

3,043,941

2,996,085
1,749,421 1,651,593

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 5 June 2025 and were signed on its behalf by:





D S Price - Director


LINGUAPHONE GROUP LIMITED (REGISTERED NUMBER: 05694539)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1. STATUTORY INFORMATION

Linguaphone Group 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.

The presentation currency of the financial statements is the Pound Sterling (£).


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" including the provisions of the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

LINGUAPHONE GROUP LIMITED (REGISTERED NUMBER: 05694539)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES - continued

TURNOVER
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from product sales is recognised when goods are dispatched and the Company's contractual obligations have been met.

Master license fee revenues are recognised once the fee represents an unconditional legal debt due to the Company, and after the Company has met its initial obligations under the terms of the master license agreement enabling the master licensee to start trading.

Revenue from royalties is recognised on an accruals basis.

Where online subscription revenue received from customers is in respect of a future period, the income is deferred and then recognised as revenue during that subscription period.

Online teaching revenues are measured in terms of the number of classes that have taken place in that particular month, invoiced in arrears. Income in respect of classes taught that have not yet been invoiced is accrued.

INTANGIBLE ASSETS
Registered trademarks
Expenditure incurred to register trademarks is capitalised and held as an intangible asset where future income is expected to be received from the country of registration. All costs associated with maintaining and defending registered trademarks are written off as they are incurred.

Capitalised trademark expenditure is amortised over a period of 3 to 20 years in line with the life of the
corresponding trademark registration. No amortisation is charged to the profit and loss account where the trademark registration process is not yet complete at the year-end. If the application to register a trademark is rejected at any stage in the registration process then any capitalised costs are immediately written-off.

Investment in product for future sales and amortisation
All expenditure in respect of the maintenance of existing courses and the research of future course concepts is written off in the period in which it is incurred. Product investment expenditure incurred on the publication of new language courses and the creation of product manufacturing masters is capitalised where future profitable sales revenue can be foreseen with reasonable assurance. This investment in product mainly comprises the cost of work performed by third party contractors, but also includes the identifiable salary costs of those staff employed on product development projects.

Investment in product is amortised over a period of 3 to 15 years in line with the expected profit contribution from each of the related language courses. In addition, each year a review of the anticipated profit contribution from each product is performed by the directors; if required the capitalised cost of the product is written down to the estimated future profitability of that product over its remaining life.

LINGUAPHONE GROUP LIMITED (REGISTERED NUMBER: 05694539)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES - continued

TANGIBLE FIXED ASSETS
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. 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.

The estimated useful lives range as follows:
Fixtures and fittings - 2 to 5 years
Computer equipment - 2 to 5 years

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 profit or loss.

STOCKS
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

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 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 statement of financial position date.

DEFERRED TAX
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business
combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

LINGUAPHONE GROUP LIMITED (REGISTERED NUMBER: 05694539)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES - continued

RESEARCH AND DEVELOPMENT
In the research phase of an internal project, it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

FOREIGN CURRENCIES
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and nonmonetary items measured at fair value are measured using the exchange rate when fair value was determined.

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.

GOING CONCERN
The Company made a profit before tax of £147,131 (2023: loss of £163,473). The Company’s net current liability position as of 31 December 2024 is £153,438 (2023: £445,728).

The Directors have prepared forecasts for a period of 2 years from the balance sheet date of these financial statements which indicate that the Company with appropriate additional shareholder support has sufficient funding to meet its highest forecast cash requirement over the next 2 years.

The Company’s only shareholder and parent company, Al-Khaleej Training and Education, has confirmed that it will continue to provide financial support to the Company to enable it to meet its liabilities as they fall due for a period of twelve months from the date of singing of the financial statements. The shareholder also confirmed that it will not recall any amounts owed to it until the Company has sufficient liquid resources to ensure that any repayment will not impair the Company’s ability to meet the payment of its third-party liabilities as they fall due.

The directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of financial statements, and therefore have prepared the financial statements on a going concern basis.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2023 - 9 ) .

LINGUAPHONE GROUP LIMITED (REGISTERED NUMBER: 05694539)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

4. INTANGIBLE FIXED ASSETS
Investment
Registered in
trademarks products Totals
£    £    £   
COST
At 1 January 2024 248,831 2,694,574 2,943,405
Additions 3,025 20,950 23,975
At 31 December 2024 251,856 2,715,524 2,967,380
AMORTISATION
At 1 January 2024 192,243 1,749,786 1,942,029
Amortisation for year 12,033 105,964 117,997
At 31 December 2024 204,276 1,855,750 2,060,026
NET BOOK VALUE
At 31 December 2024 47,580 859,774 907,354
At 31 December 2023 56,588 944,788 1,001,376

5. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 January 2024 90,769 284,127 374,896
Additions - 6,074 6,074
At 31 December 2024 90,769 290,201 380,970
DEPRECIATION
At 1 January 2024 83,237 283,641 366,878
Charge for year 7,532 1,823 9,355
At 31 December 2024 90,769 285,464 376,233
NET BOOK VALUE
At 31 December 2024 - 4,737 4,737
At 31 December 2023 7,532 486 8,018

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
as restated
£    £   
Trade debtors 603,957 412,469
Other debtors 56,959 120,891
660,916 533,360

Trade debtors includes amount due from group undertaking amounting to £183,493 (2023:£nil).

LINGUAPHONE GROUP LIMITED (REGISTERED NUMBER: 05694539)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
as restated
£    £   
Bank loans and overdrafts 10,392 10,648
Trade creditors 237,250 118,103
Amounts owed to group undertakings 386,336 369,388
Social security and other taxes 26,240 24,245
Other creditors 7,646 2,599
Accruals and deferred income 322,904 562,944
990,768 1,087,927

The bank overdraft included under creditors falling due within one year is secured on the assets of the company and by a parent company guarantee.

Included in accruals and deferred income are deferred pension accruals payable to employees amounting to £46,071 (2023:£134,851)

The company has unused credit facility of £13,900 under small loan arrangement scheme from NatWest which is expiring in June 2026.

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
as restated
£    £   
Bank loans - 2-5 years 4,608 14,352
Amounts owed to shareholder 2,981,733 2,981,733
Accruals and deferred income 57,600 -
3,043,941 2,996,085

Accruals and deferred income is related to deferred pension accruals payable to employees amounting to £57,600 (2023:£nil).

9. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the auditors was unqualified.

Edmund Cartwright FCCA FMAAT (Senior Statutory Auditor)
for and on behalf of Johnsons Chartered Accountants

10. CAPITAL COMMITMENTS

Total financial commitments, guarantees and contingencies which are not included in the statement of financial position amount to £1,579,590 (2023:£1,046,140).

11. PARENT COMPANY CONTROLLING PARTY

The parent company of the smallest group in which the company is a member, and for which group accounts are made up, is Al Khaleej Training and Education Co. The consolidated financial statements are publicly available and can be obtained from P.O.Box 295300, Riyadh 11351, Kingdom of Saudi Arabia.