Company registration number 02175879 (England and Wales)
MONARCH ACOUSTICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
MONARCH ACOUSTICS LIMITED
COMPANY INFORMATION
Directors
Mr Stuart Hopkin
Mr Gary Frost
Secretary
Mrs S Hopkin
Company number
02175879
Registered office
Newstead House
Pelham Road
Nottingham
NG5 1AP
Auditor
Rogers Spencer
Newstead House
Pelham Road
Nottingham
NG5 1AP
Business address
Unit 2
Nottingham Airport
Tollerton Lane
Tollerton
Notts
NG12 4GA
MONARCH ACOUSTICS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
MONARCH ACOUSTICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

The company has made a profit during this trading period with turnover of £9.6m (2023: £10.5m) and a profit of £0.1m (2023: loss £0.3m).

 

2024 saw further contraction in the education furniture sector, all schools faced additional costs with increased salaries, energy costs. These had to be funded from existing budgets. In turn this meant many schools did not have the budget to replace their furniture or device charging facilities.

We managed to secure further savings on purchases, energy costs through the solar panel purchase and administrative expenses.

 

Considering a further £0.9 m reduction in turnover, the profit of £0.1m shows huge resilience and is a great success

Principal risks and uncertainties

The Board has identified the following factors as principal potential risks to the successful operation of the business. This list is not exhaustive as there may be potential risks that are not yet known to the Board.

 

Economic and market risks:

 

Exchange rates continue to cause margin fluctuations with the large value of USD purchases.

 

Education budgets have continued to suffer with many reports from the likes of BESA showing that up to 50% of schools have had to vastly reduce their ICT budgets to balance their books.

 

Employees:

 

The employees of the company are key to the success of the business. Good relations with employees and investing in their training and development are essential to the efficiency and sustainability of the Company's operations. The Company's employment policies and remuneration packages are designed to be competitive with other companies.

 

IT systems:

 

A failure in IT systems could have a significant impact on our business. The Company has controls in place to maintain the integrity and efficiency of its systems which are regularly updated and tested.

Key performance indicators

The directors use the standard key performance indicators to monitor the performance of the company. These include gross profit percentage, net profit percentage and gearing ratio.

On behalf of the board

Mr Stuart Hopkin
Director
12 August 2025
MONARCH ACOUSTICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of the manufacture and sale of educational furniture and the import, export and sale of the company's LapCabby range (laptop & tablet storage trolleys and devices).

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Stuart Hopkin
Mr Gary Frost
Research and development

Research and development will continue as in previous years. The LapCabby side of the business is always evolving to ensure that our range meets the needs of our customers and the end users.

Future developments

2025 continues to be challenging. Following a change in government in October 2024 there was an expectation that additional funds would be channeled to the education market. To date this is clearly not the case and we continue to explore opportunities in other markets to try and maintain turnover.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr Stuart Hopkin
Director
12 August 2025
MONARCH ACOUSTICS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- 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 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.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

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 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.

MONARCH ACOUSTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MONARCH ACOUSTICS LIMITED
- 4 -
Opinion

We have audited the financial statements of Monarch Acoustics Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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).

In our opinion the financial statements:

Basis for opinion

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's 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 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.

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 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

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

MONARCH ACOUSTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MONARCH ACOUSTICS LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

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.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 auditor's 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.

MONARCH ACOUSTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MONARCH ACOUSTICS LIMITED (CONTINUED)
- 6 -

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

MONARCH ACOUSTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MONARCH ACOUSTICS LIMITED (CONTINUED)
- 7 -

Use of our report

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 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alistair Allcock (Senior Statutory Auditor)
For and on behalf of Rogers Spencer, Statutory Auditor
Chartered Accountants
Newstead House
Pelham Road
Nottingham
NG5 1AP
13 August 2025
MONARCH ACOUSTICS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
9,550,742
10,520,380
Cost of sales
(5,675,203)
(7,111,855)
Gross profit
3,875,539
3,408,525
Administrative expenses
(3,253,101)
(3,346,865)
Operating profit
4
622,438
61,660
Interest receivable and similar income
8
2
1
Interest payable and similar expenses
9
(506,035)
(418,401)
Fair value gains and losses on foreign exchange contracts
13,270
(18,516)
Profit/(loss) before taxation
129,675
(375,256)
Tax on profit/(loss)
10
(44,588)
59,443
Profit/(loss) for the financial year
85,087
(315,813)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MONARCH ACOUSTICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
£
£
Profit/(loss) for the year
85,087
(315,813)
Other comprehensive income
-
-
Total comprehensive income for the year
85,087
(315,813)
MONARCH ACOUSTICS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
46,314
66,294
Tangible assets
12
1,164,860
1,131,171
1,211,174
1,197,465
Current assets
Stocks
13
2,289,381
2,520,762
Debtors
14
2,239,004
2,179,273
Cash at bank and in hand
20,845
281,531
4,549,230
4,981,566
Creditors: amounts falling due within one year
15
(2,810,110)
(3,651,588)
Net current assets
1,739,120
1,329,978
Total assets less current liabilities
2,950,294
2,527,443
Creditors: amounts falling due after more than one year
18
(650,838)
(352,140)
Provisions for liabilities
Deferred tax liability
19
162,793
123,727
(162,793)
(123,727)
Net assets
2,136,663
2,051,576
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
2,136,563
2,051,476
Total equity
2,136,663
2,051,576

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 12 August 2025 and are signed on its behalf by:
Mr Stuart Hopkin
Director
Company registration number 02175879 (England and Wales)
MONARCH ACOUSTICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
100
2,367,289
2,367,389
Year ended 31 December 2023:
Loss and total comprehensive income
-
(315,813)
(315,813)
Balance at 31 December 2023
100
2,051,476
2,051,576
Year ended 31 December 2024:
Profit and total comprehensive income
-
85,087
85,087
Balance at 31 December 2024
100
2,136,563
2,136,663
MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Monarch Acoustics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Newstead House, Pelham Road, Nottingham, NG5 1AP.

1.1
Accounting convention

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.

This 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:

 

 

The company is a wholly owned subsidiary of Monarch Acoustics (SPV) Limited, registered in the United Kingdom. Monarch Acoustics (SPV) Limited is a wholly owned subsidiary of Monarch Acoustics Holdings Limited, registered in the United Kingdom. Monarch Acoustics Holdings Limited is the parent undertaking which consolidates the financial information of the group. The ultimate controlling party is considered to be Monarch Acoustics Holdings Limited. Therefore, the company has taken advantage of the exemption available under Section 400 of the Companies Act 2006 not to prepare consolidated financial statements itself.

 

Copies of the group's financial statements may be obtained from Monarch Acoustics Holdings Limited, at their principal place of business which is Unit 2, Nottingham Airport, Tollerton Lane, Tollerton, Nottingham, NG12 4GA.

1.2
Going concern

The financial statements have been prepared on a going basis, having taken into account both the current trading of the business and the future outlook of the business.true

 

The Company has prepared financial forecasts for the 2025 and 2026 financial year ends, which is in excess of 12 months from the date of signing the financial statements. The forecasts have taken into account trading to July 2025 and expected trading for the remaining months of the financial year and then the following 12 months. The company has seen turnover reduce, but continues to closely monitor its costs, reducing these wherever possible, and expects to increase profitability in the coming year.

1.3
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

 

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

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.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development Costs
33.3% straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
10% straight line
Plant and machinery
20% straight line
Fixtures, fittings & equipment
20% straight line
Computer equipment
33.3% straight line
Motor vehicles
25% straight line

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 credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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

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.

MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company 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 company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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 when the company has 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.

MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.13
Employee benefits

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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases
As lessee

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.16
Foreign exchange

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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Core business
9,550,742
10,520,380
MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Turnover analysed by geographical market
UK & ROI
8,278,185
8,335,394
EU
600,874
1,725,028
Non-EU
671,683
459,958
9,550,742
10,520,380
2024
2023
£
£
Other revenue
Interest income
2
1
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
129,811
147,142
Fees payable to the company's auditor for the audit of the company's financial statements
11,750
11,350
Depreciation of owned tangible fixed assets
365,839
233,973
Depreciation of tangible fixed assets held under finance leases
-
88,716
Profit on disposal of tangible fixed assets
(53,730)
(13,000)
Amortisation of intangible assets
41,524
44,603
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,750
11,350
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Office
29
30
Drivers
6
6
Production
44
48
Total
79
84
MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,476,964
2,604,074
Social security costs
226,928
229,881
Pension costs
97,265
147,609
2,801,157
2,981,564
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
40,427
88,358

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2
1
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2
1
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
308,577
236,846
Interest on invoice finance arrangements
161,343
127,346
469,920
364,192
Other finance costs:
Interest on finance leases and hire purchase contracts
36,115
24,247
Other interest
-
0
29,962
506,035
418,401
MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(10,647)
(37,069)
Adjustments in respect of prior periods
16,169
-
0
Total current tax
5,522
(37,069)
Deferred tax
Origination and reversal of timing differences
39,066
38,759
Tax losses carried forward
-
0
(61,133)
Total deferred tax
39,066
(22,374)
Total tax charge/(credit)
44,588
(59,443)

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
129,675
(375,256)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
32,419
(93,814)
Tax effect of utilisation of tax losses not previously recognised
-
0
8,563
Permanent capital allowances in excess of depreciation
13,294
9,736
Depreciation on assets not qualifying for tax allowances
10,381
11,151
Research and development tax credit
(12,924)
(51,450)
Deferred tax adjustments in respect of prior years
(1,816)
-
0
Disposal of subsidiary
-
0
19,302
Change in tax rates re loss carry back
-
0
37,069
s455 no longer claimable
3,234
-
0
Taxation charge/(credit) for the year
44,588
(59,443)
MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
11
Intangible fixed assets
Development Costs
£
Cost
At 1 January 2024
978,109
Additions - internally developed
21,544
At 31 December 2024
999,653
Amortisation and impairment
At 1 January 2024
911,815
Amortisation charged for the year
41,524
At 31 December 2024
953,339
Carrying amount
At 31 December 2024
46,314
At 31 December 2023
66,294

More information on impairment movements in the year is given in note .

12
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
1,156,765
1,819,949
102,257
248,251
106,928
3,434,150
Additions
343,534
59,786
1,032
10,945
-
0
415,297
Disposals
-
0
(179,999)
-
0
-
0
(106,928)
(286,927)
At 31 December 2024
1,500,299
1,699,736
103,289
259,196
-
0
3,562,520
Depreciation and impairment
At 1 January 2024
711,769
1,177,473
96,272
212,437
105,028
2,302,979
Depreciation charged in the year
139,403
208,358
3,578
14,203
297
365,839
Eliminated in respect of disposals
-
0
(165,833)
-
0
-
0
(105,325)
(271,158)
At 31 December 2024
851,172
1,219,998
99,850
226,640
-
0
2,397,660
Carrying amount
At 31 December 2024
649,127
479,738
3,439
32,556
-
0
1,164,860
At 31 December 2023
444,996
642,476
5,985
35,814
1,900
1,131,171
MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Tangible fixed assets
(Continued)
- 22 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and machinery
666,355
338,323
13
Stocks
2024
2023
£
£
Raw materials and consumables
1,302,614
1,325,875
Work in progress
96,829
94,393
Finished goods and goods for resale
889,938
1,100,494
2,289,381
2,520,762
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,030,646
1,192,348
Corporation tax recoverable
10,647
74,630
Amounts owed by group undertakings
1,101,715
816,640
Other debtors
15,415
3,234
Prepayments and accrued income
80,581
92,421
2,239,004
2,179,273
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
432,740
1,087,377
Obligations under finance leases
17
198,373
124,873
Other borrowings
16
739,212
743,017
Trade creditors
549,860
797,865
Taxation and social security
789,400
659,649
Other creditors
-
0
124,351
Accruals and deferred income
100,525
114,456
2,810,110
3,651,588

Bank loans and overdrafts are secured by way of fixed and floating charges over the assets of the company.

MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
647,026
1,136,309
Other loans
739,212
743,017
1,386,238
1,879,326
Payable within one year
1,171,952
1,830,394
Payable after one year
214,286
48,932
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
198,373
124,873
In two to five years
436,552
303,208
634,925
428,081

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. No restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other loans
16
214,286
48,932
Obligations under finance leases
17
436,552
303,208
650,838
352,140
19
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
241,650
202,583
Tax losses
(78,857)
(78,856)
162,793
123,727
MONARCH ACOUSTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Deferred taxation
(Continued)
- 24 -
2024
Movements in the year:
£
Liability at 1 January 2024
123,727
Charge to profit or loss
39,066
Liability at 31 December 2024
162,793

 

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
97,265
147,609

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
22
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within 1 year
393,045
337,764
Years 2-5
562,172
730,519
955,217
1,068,283

Lease payments recognised as an expense for the period under review totalled £325,528 (2023: £337,764).

23
Related party transactions

The company's share capital is owned solely by Monarch Acoustics (SPV) Limited. At the year end, a balance of £370,977 (2023: £242,317) was owed from Monarch Acoustics (SPV) Limited.

 

Monarch Acoustics (SPV) Limited's share capital is owned solely by Monarch Acoustics Holdings Limited. At the year end, a balance of £730,738 (2023: £574,323) was owed from Monarch Acoustics Holdings Limited.

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