The Collab Agency Limited

	Page
Balance Sheet	1
Notes to the Financial Statements	2—4

1. General Information

The Collab Agency Limited is a private company, limited by shares, incorporated in England & Wales, registered number 12178502 . The registered office is 38 Dover Road, Brighton, East Sussex, England, BN1 6LN.

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 the commission receivable, net of value added tax, of the brand sponsorship provided on behalf of a principle and is recognised when the sponsorship activation occurs.

2.3. 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:

Computer Equipment

33% SLM

2.4. Financial Instruments

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

2.5. 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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The Collab Agency Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.6. Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.7. Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.8. Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.9. Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 6 (2023: 6)

4. Tangible Assets

	Computer Equipment
	£
Cost
As at 1 January 2024	4,207
Additions	916

As at 31 December 2024	5,123

Depreciation
As at 1 January 2024	3,662
Provided during the period	567

As at 31 December 2024	4,229

Net Book Value
As at 31 December 2024	894

As at 1 January 2024	545

5. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	133,886	59,585
Other debtors	5,000	5,000
S455 tax recoverable	10	10
Directors' loan accounts	510	510

	139,406	65,105

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The Collab Agency Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

6. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	154,233	78,004
Corporation tax	16,821	16,456
Other taxes and social security	8,327	8,483
VAT	11,021	13,283
Pension payable	2,540	2,731
Credit card	2,728	-
Other creditor	35,965	-
Accruals and deferred income	-	19,908

	231,635	138,865

7. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	10	10

8. Related Party Transactions

Amounts owed to related parties are interest free loans repayable on demand from one of the shareholders and companies in which the shareholder has a material interest.

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		894		545

			894		545
CURRENT ASSETS
Debtors	5	139,406		65,105
Cash at bank and in hand		185,121		174,536

		324,527		239,641
Creditors: Amounts Falling Due Within One Year	6	(231,635 )		(138,865 )

NET CURRENT ASSETS (LIABILITIES)			92,892		100,776

TOTAL ASSETS LESS CURRENT LIABILITIES			93,786		101,321

NET ASSETS			93,786		101,321

CAPITAL AND RESERVES
Called up share capital	7		10		10
Profit and Loss Account			93,776		101,311

SHAREHOLDERS' FUNDS			93,786		101,321