Company No: 06315305 (England and Wales)

Contents

• Company Information
• Accountants' Report
• Balance Sheet
• Notes to the Financial Statements

Directors	N Roberts
	D R Roberts

Registered office	Unit 11 Chartwell Business Centre
	42 Chartwell Road
	Lancing
	West Sussex
	BN15 8FB
	United Kingdom

Company number

06315305 (England and Wales)

Chartered accountants	Kreston Reeves LLP
	Nile House
	Nile Street
	East Sussex
	Brighton
	BN1 1HW
	United Kingdom

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Flare Audio Limited for the financial year ended 31 December 2024 which comprise the Balance Sheet and the related notes 1 to 10 from the Company’s accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/regulation.

It is your duty to ensure that Flare Audio Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Flare Audio Limited. You consider that Flare Audio Limited is exempt from the statutory audit requirement for the financial year.

We have not been instructed to carry out an audit or a review of the financial statements of Flare Audio Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

This report is made solely to the Board of Directors of Flare Audio Limited, as a body, in accordance with the terms of our engagement letter dated 26 February 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Flare Audio Limited and state those matters that we have agreed to state to the Board of Directors of Flare Audio Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Flare Audio Limited and its Board of Directors as a body for our work or for this report.

Kreston Reeves LLP
Chartered Accountants

Nile House
Nile Street
East Sussex
Brighton
BN1 1HW
United Kingdom

29 September 2025

	Note	2024		2023
		£		£
Fixed assets
Tangible assets	3	158,426		181,258
		158,426		181,258
Current assets
Stocks	4	611,504		621,246
Debtors	5	206,863		419,825
Cash at bank and in hand		519,682		1,121,571
		1,338,049		2,162,642
Creditors: amounts falling due within one year	6	( 1,000,472)		( 1,453,874)
Net current assets		337,577		708,768
Total assets less current liabilities		496,003		890,026
Provision for liabilities	7	0		( 31,933)
Net assets		496,003		858,093
Capital and reserves
Called-up share capital		100		100
Profit and loss account		495,903		857,993
Total shareholder's funds		496,003		858,093

For the financial 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.

Directors' responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Flare Audio Limited (registered number: 06315305) were approved and authorised for issue by the Board of Directors on 29 September 2025. They were signed on its behalf by:

D R Roberts Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Flare Audio Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Unit 11 Chartwell Business Centre, 42 Chartwell Road, Lancing, West Sussex, BN15 8FB, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Leasehold improvements	3 years straight line
Plant and machinery	3 - 4 years straight line
Vehicles	4 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

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.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

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.

2. Employees

	2024		2023
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	26		22

3. Tangible assets

	Leasehold improve- ments		Plant and machinery		Vehicles		Total
	£		£		£		£
Cost
At 01 January 2024	23,044		332,307		141,723		497,074
Additions	0		13,689		43,766		57,455
At 31 December 2024	23,044		345,996		185,489		554,529
Accumulated depreciation
At 01 January 2024	19,956		275,780		20,080		315,816
Charge for the financial year	774		33,910		45,603		80,287
At 31 December 2024	20,730		309,690		65,683		396,103
Net book value
At 31 December 2024	2,314		36,306		119,806		158,426
At 31 December 2023	3,088		56,527		121,643		181,258

4. Stocks

	2024		2023
	£		£
Finished goods	611,504		621,246

5. Debtors

	2024		2023
	£		£
Trade debtors	70,800		342,287
Prepayments	56,167		56,487
Deferred tax asset	30,384		0
Other debtors	49,512		21,051
	206,863		419,825

6. Creditors: amounts falling due within one year

	2024		2023
	£		£
Trade creditors	129,833		214,126
Amounts owed to Parent undertakings	552,762		602,842
Other loans	1,000		1,000
Accruals	132,561		401,769
Corporation tax	0		41,105
Other taxation and social security	172,644		170,081
Other creditors	11,672		22,951
	1,000,472		1,453,874

7. Deferred tax

	2024		2023
	£		£
At the beginning of financial year	( 31,933)		49,656
Credited/(charged) to the Statement of Income and Retained Earnings	62,317		( 81,589)
At the end of financial year	30,384		( 31,933)

The deferred taxation balance is made up as follows:

	2024		2023
	£		£
Accelerated capital allowances	( 36,575)		( 32,744)
Tax losses carry forward	66,110		0
Other timing differences	850		811
	30,384		( 31,933)

8. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2024		2023
	£		£
within one year	93,500		69,000
between one and five years	101,292		194,792
	194,792		263,792

Pensions

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £15,875 (2023 - £14,165). Contributions totalling £3,399 (2023 - £3,243) were payable to the fund at the balance sheet date and are included in creditors.

9. Related party transactions

The company is taking advantage of the group exemption under FRS102 S1a not to disclose group transactions.

10. Ultimate controlling party

The company's immediate parent is Flare Audio Technologies Limited, incorporated in England and Wales.

The ultimate controlling party is D R Roberts, by virtue of his majority shareholding in Flare Audio Technologies Limited.