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REGISTERED NUMBER: 04132269 (England and Wales)















TONIC STUDIOS LIMITED

Financial Statements

for the Year Ended 31 December 2023






TONIC STUDIOS LIMITED (REGISTERED NUMBER: 04132269)

Contents of the Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


TONIC STUDIOS LIMITED

Company Information
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: A Piperno
S D Bathard
G W H Davies





SECRETARY: G W H Davies





REGISTERED OFFICE: Unit 36 Heol Treth
Village Farm Industrial Estate
Pyle
Bridgend
CF33 6BQ





REGISTERED NUMBER: 04132269 (England and Wales)





AUDITORS: MHA
Statutory Auditor
Elfed House
Oak Tree Court
Cardiff Gate Business Park
CARDIFF
County of Cardiff
CF23 8RS

TONIC STUDIOS LIMITED (REGISTERED NUMBER: 04132269)

Balance Sheet
31 DECEMBER 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 4 110,901 127,772
Tangible assets 5 166,118 162,969
Investments 6 - 675
277,019 291,416

CURRENT ASSETS
Stocks 1,237,873 2,024,038
Debtors 7 763,109 902,544
Cash at bank 369,164 147,738
2,370,146 3,074,320
CREDITORS
Amounts falling due within one year 8 (3,463,608 ) (1,683,303 )
NET CURRENT (LIABILITIES)/ASSETS (1,093,462 ) 1,391,017
TOTAL ASSETS LESS CURRENT
LIABILITIES

(816,443

)

1,682,433

CREDITORS
Amounts falling due after more than one year 9 - (1,553,409 )
NET (LIABILITIES)/ASSETS (816,443 ) 129,024

CAPITAL AND RESERVES
Called up share capital 100 100
Retained earnings (816,543 ) 128,924
(816,443 ) 129,024

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 Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 3 June 2025 and were signed on its behalf by:





A Piperno - Director


TONIC STUDIOS LIMITED (REGISTERED NUMBER: 04132269)

Notes to the Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

GOING CONCERN
As part of its regular assessment of the prospects for the company, the directors have reviewed future trading, projections and cash flow. These show the company to be improving, however due to tough trading conditions the company is forecasting losses. As a result of this the company has been and continues to be offered support from its parent company for a period of at least 12 months from the date of signing these accounts.

The directors have assessed the ability of the ultimate holding company to provide the necessary financial
support as the need arises, and have concluded that, although not legally binding, a letter of support can be
relied upon for a period of at least 12 months from the signing of the financial statements. Accordingly, the
company continues to adopt the going concern basis in preparing its financial statements.

TURNOVER
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

INTANGIBLE ASSETS
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Computer software is being amortised evenly over its estimated useful life of ten years.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 10% on cost
Plant and machinery - 15% on reducing balance
Fixtures and Fittings - 15% on reducing balance
Computer equipment - 15% on reducing balance

INVESTMENTS IN SUBSIDIARIES
Investments in subsidiary undertakings are recognised at cost.

STOCKS
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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

Current or deferred taxation assets and liabilities are not discounted.

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


TONIC STUDIOS LIMITED (REGISTERED NUMBER: 04132269)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued
DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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

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

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

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 28 (2022 - 38 ) .

4. INTANGIBLE FIXED ASSETS
Other
intangible
assets
£   
COST
At 1 January 2023
and 31 December 2023 168,526
AMORTISATION
At 1 January 2023 40,754
Charge for year 16,871
At 31 December 2023 57,625
NET BOOK VALUE
At 31 December 2023 110,901
At 31 December 2022 127,772

TONIC STUDIOS LIMITED (REGISTERED NUMBER: 04132269)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


5. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Computer
property machinery Fittings equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 115,339 147,421 37,247 53,401 353,408
Additions - 30,437 - - 30,437
At 31 December 2023 115,339 177,858 37,247 53,401 383,845
DEPRECIATION
At 1 January 2023 71,401 74,592 16,239 28,207 190,439
Charge for year 8,695 11,371 3,439 3,783 27,288
At 31 December 2023 80,096 85,963 19,678 31,990 217,727
NET BOOK VALUE
At 31 December 2023 35,243 91,895 17,569 21,411 166,118
At 31 December 2022 43,938 72,829 21,008 25,194 162,969

6. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023 675
Disposals (675 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 675

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 525,938 203,222
Amounts owed by group undertakings - 620,522
Other debtors 3,321 78,800
Prepayments and accrued income 233,850 -
763,109 902,544

TONIC STUDIOS LIMITED (REGISTERED NUMBER: 04132269)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts - 34,167
Other loans 1,370,692 68,024
Hire purchase contracts (see note 10) - 1,347
Trade creditors 729,351 1,235,578
Amounts owed to group undertakings 670,488 -
Social security and other taxes 97,196 137,443
Other creditors 76,533 160,027
Directors' current accounts - 38,717
Accruals and deferred income 519,348 8,000
3,463,608 1,683,303

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans - 1-2 years - 182,717
Other Loans > 1 Yr - 1,370,692
- 1,553,409

10. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year - 1,347

Non-cancellable operating leases
2023 2022
£    £   
Within one year 4,542 36,333

TONIC STUDIOS LIMITED (REGISTERED NUMBER: 04132269)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


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

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion
The company required an audit for the first time this year, following its acquisition by Nicole Craft Brands Holding LLC subsequent to 31 December 2023 and thus we did not observe the counting of physical inventories at the start of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2022, which were included in the Balance Sheet at £2,024,038, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2023.

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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

James Dobson BSc (Hons) FCA (Senior Statutory Auditor)
for and on behalf of MHA


MHA is the trading name of MHA Audit Services LLP, a limited liability
partnership in England and Wales (registered number OSC455542)

12. PENSION COMMITMENTS

During the year the company contributed to a defined contribution pension scheme for its employees and the directors of the company. The charge to the profit and loss account for the year was £52,290 (2022: £55,090). There was £4,265 outstanding (2022: £4,367) at the balance sheet date.

13. ULTIMATE CONTROLLING PARTY

The immediate and ultimate parent company is Nicole Craft Brands Holding LLC, a company incorporated in the United States of America. The registered office is 70 Tanner Street, Haddonfield, New Jersey.

The ultimate controlling party is Anthony Piperno.