Direct 2 Limited

	Page
Accountant's Report	1
Statement of Financial Position	2
Notes to the Financial Statements	3—4

In order to assist you to fulfil your duties under the Companies Act 2006, I have prepared for your approval the accounts of Direct 2 Limited for the year ended 31 December 2024 which comprise the profit and loss account and balance sheet from the company's accounting records and from information and explanations you have given me.

As a practising member of the Institute of Chartered Accountants of Scotland, I am subject to its ethical and other professional requirements which are detailed at https://www.icas.com/regulation-technical-resources/documents/framework-for-the-preparation-of-accounts-revised-june-2020.

This report is made solely to the Board of Directors of Direct 2 Limited, as a body, in accordance with the terms of my engagement letter dated 11 July 2024. My work has been undertaken in accordance with the requirements of the Institute of Chartered Accountants of Scotland as detailed at https://www.icas.com/regulation-technical-resources/documents/framework-for-the-preparation-of-accounts-revised-june-2020. To the fullest extent permitted by law, I do not accept responsibility to anyone other than Direct 2 Limited and its Board of Directors as a body for my work or for this report.

I have not been instructed to carry out an audit or a review of the accounts of Direct 2 Limited. For this reason, I have not verified the accuracy or completeness of the accounting records or information and explanations you have given to me and I do not, therefore, express any opinion on the financial statements.

05/09/2025

Lothian Accounting Limited (SC556470)

3 Priory Gate

North Berwick

EH39 4SA

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Direct 2 Limited

Statement of Financial Position

As At 31 December 2024

Statement of Financial Position

Registered number: 09498202

		2024		2023
	Notes	£	£	£	£
CURRENT ASSETS
Cash at bank and in hand		12,357		3,170

		12,357		3,170
Creditors: Amounts Falling Due Within One Year	4	(1,303,111 )		(870,318 )

NET CURRENT ASSETS (LIABILITIES)			(1,290,754 )		(867,148 )

TOTAL ASSETS LESS CURRENT LIABILITIES			(1,290,754 )		(867,148 )

NET LIABILITIES			(1,290,754 )		(867,148 )

CAPITAL AND RESERVES
Called up share capital	5		100		100
Income Statement			(1,290,854 )		(867,248 )

SHAREHOLDERS' FUNDS			(1,290,754)		(867,148)

For the year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Income Statement.

On behalf of the board

Mr Stephen Whitby

Director

05/09/2025

The notes on pages 3 to 4 form part of these financial statements.

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Direct 2 Limited

Notes to the Financial Statements

For The Year Ended 31 December 2024

Notes to the Financial Statements

1. General Information

Direct 2 Limited is a private company, limited by shares, incorporated in England & Wales, registered number 09498202 . The registered office is c/o Microbuild Ltd, 49 Peter Street, Manchester, M2 3NQ.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company.Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

2.2. Going Concern Disclosure

The directors consider the company to be a going concern and in making this assessment have considered a period of 12 months from the date the accounts were approved. With all creditors at the year end due to related parties the directors and other group companies are committed to providing financial support for the company to continue trading.

2.3. Turnover

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

2.4. 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 statement of financial position 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.

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.

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Direct 2 Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.5. 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 income statement 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 income statement, 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.

3. Average Number of Employees

The Directors are office holders and do not have a service or employment contract with the Company.

Average number of employees, including directors, during the year was:

NIL (2023: NIL)

4. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	6,612	1,799
Amounts owed to group undertakings	1,296,499	868,519

	1,303,111	870,318

5. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	100	100

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