Monster Phonics Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Monster Phonics Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 09429852 . The registered office is Unit 7/8 Power House, Higham Mead, Chesham, Buckinghamshire, HP5 2AH.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

2.3. Intangible Fixed Assets and Amortisation - Other Intangible

Other intangible assets are website. It is amortised to profit and loss account over its estimated economic life of 5 years.

2.4. Intangible Fixed Assets and Amortisation - Intellectual Property

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.

Trademarks are being amortised evenly over their estimated useful life of twenty years.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery

Straight line 3 years

2.6. Leasing and Hire Purchase Contracts

Rentals payable under operating leases are charged to the profit and loss account on a straight-line basis over the term of the lease, unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2.7. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

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Monster Phonics Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.8. 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 a 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 instruments

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 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 at amortised cost using the effective interest method.

2.9. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.10. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

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Monster Phonics Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.11. Pensions

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 11 (2023: 12)

4. Intangible Assets

	Other
	£
Cost
As at 1 January 2024	55,768

As at 31 December 2024	55,768

Amortisation
As at 1 January 2024	44,153
Provided during the period	4,774

As at 31 December 2024	48,927

Net Book Value
As at 31 December 2024	6,841

As at 1 January 2024	11,615

5. Tangible Assets

	Plant & Machinery
	£
Cost
As at 1 January 2024	22,736
Additions	2,166

As at 31 December 2024	24,902

Depreciation
As at 1 January 2024	12,279
Provided during the period	7,214

As at 31 December 2024	19,493

Net Book Value
As at 31 December 2024	5,409

As at 1 January 2024	10,457

6. Stocks

	2024	2023
	£	£
Stock	168,482	149,459

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Monster Phonics Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

7. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	53,418	73,792
Other debtors	31,186	20,662

	84,604	94,454

8. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	19,042	30,468
Other creditors	249,673	222,197
Taxation and social security	41,476	50,905

	310,191	303,570

9. Provisions for Liabilities


	Other Provisions	Total
	£	£
As at 1 January 2024	2,628	2,628
Additions	1,433	1,433

Balance at 31 December 2024	4,061	4,061

10. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	110	199

During the year, the company repurchased 889 ordinary shares of £0.10 each for £171,000, reducing share capital by £88.90. The share premium account of £299,759.96 was transferred to retained earnings to facilitate the buyback. After deducting £170,911.10 from retained earnings for the excess consideration over nominal value, retained earnings increased by £128,847.

11. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2024	2023
	£	£
Not later than one year	25,000	25,000
Later than one year and not later than five years	100,000	100,000
Later than five years	56,250	81,250

	181,250	206,250

12. Ultimate Controlling Party

The ultimate controlling party is Mrs I M Connors.

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		6,841		11,615
Tangible Assets	5		5,409		10,457

			12,250		22,072
CURRENT ASSETS
Stocks	6	168,482		149,459
Debtors	7	84,604		94,454
Cash at bank and in hand		261,741		405,512

		514,827		649,425
Creditors: Amounts Falling Due Within One Year	8	(310,191 )		(303,570 )

NET CURRENT ASSETS (LIABILITIES)			204,636		345,855

TOTAL ASSETS LESS CURRENT LIABILITIES			216,886		367,927

PROVISIONS FOR LIABILITIES
Provisions For Charges	9		(4,061 )		(2,628 )

NET ASSETS			212,825		365,299

CAPITAL AND RESERVES
Called up share capital	10		110		199
Share premium account			-		299,760
Profit and Loss Account			212,715		65,340

SHAREHOLDERS' FUNDS			212,825		365,299