REGISTERED NUMBER: 05137395 (England and Wales)

SPARKSTONE TECHNOLOGY LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Accountants' Report

2

Abridged Balance Sheet

3

Notes to the Financial Statements

5

DIRECTOR:

Ms J Stibbard Kinsey

REGISTERED OFFICE:

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

REGISTERED NUMBER:

05137395 (England and Wales)

ACCOUNTANTS:

Rothmans CF Limited

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

The following reproduces the text of the report prepared for the director in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Abridged Income Statement and certain other primary statements and the Report of the Director are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Sparkstone Technology Limited for the year ended 31 December 2024 which comprise the Abridged Income Statement, Abridged Balance Sheet and the related notes 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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

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

It is your duty to ensure that Sparkstone Technology 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 profit of Sparkstone Technology Limited. You consider that Sparkstone Technology Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Sparkstone Technology 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.

Rothmans CF Limited

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

26 September 2025

FIXED ASSETS

Intangible assets

4

169,078

207,392

Tangible assets

5

11,013

15,595

180,091

222,987

CURRENT ASSETS

Debtors

193,709

146,040

Cash at bank

236,820

259,671

430,529

405,711

CREDITORS

Amounts falling due within one year

352,725

316,167

NET CURRENT ASSETS

77,804

89,544

TOTAL ASSETS LESS CURRENT LIABILITIES

257,895

312,531

CREDITORS

Amounts falling due after more than one year

129,638

192,376

NET ASSETS

128,257

120,155

CAPITAL AND RESERVES

Called up share capital

90

90

Share premium

19,990

19,990

Capital redemption reserve

10

10

Retained earnings

108,167

100,065

128,257

120,155

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges her responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

All the members have consented to the preparation of an abridged Income Statement and an abridged Balance Sheet for the year ended 31 December 2024 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 26 September 2025 and were signed by:

Ms J Stibbard Kinsey - Director

1.	STATUTORY INFORMATION

Sparkstone Technology Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 05137395 and the registered office address is Fryern House, 125 Winchester Road, Chandlers Ford, Hampshire, SO53 2DR.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The presentation currency is the Pound Sterling (£).

Going concern

The financial statements have been prepared on the going concern basis based on the director's review of the next 12 months from signing.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The director does not consider there to be any significant judgements.

Other key sources of estimation uncertainty:

1) Tangible fixed assets

Management estimate the useful life and residual value of tangible assets based on market information and their knowledge of the business, the remaining life of the asset and projected disposal value.

2) Intangible fixed assets

Management estimate the useful life of intangible assets based on market information and their knowledge of the business.

Turnover

Turnover represents net sales during the year in respect of software development and IT consultancy services (excluding value added tax).

The company recognises turnover after IT consultancy and development services have been provided. Annual licences are recognised in the period to which the service relates to and is adjusted for accrued and deferred income where applicable.

Intangible fixed assets

Development salary costs incurred in the development phase of the intangible asset are capitalised when there is expected to be a benefit to future periods and the following conditions are met:

- It is technically feasible to complete the development so that the intangible asset will be available for use or sale.

- It is intended that the intangible asset being developed will be used or sold.

- The company is able to use or sell the intangible asset.

- It can be demonstrated that the intangible asset will generate probable future economic benefit.

- Adequate technical, financial and other resources exist so that the intangible asset development can be completed and subsequently used or sold.

- Expenditure attributable to the development work can be reliably measured.

These costs are amortised over 3 years using the straight-line method, which is the expected useful life of the development made to the intangible asset.

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Amortisation costs for the year and last year are included in overhead expenses.

All other expenditure that does not meet the requirements for being capitalised is recognised as an expense in the period in which it is incurred.

Goodwill, being the amount paid in connection with the acquisition of a business, was being amortised over an estimated useful economic life of five years and is now fully amortised.

Tangible fixed assets

All fixed assets are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

The cost of fixed assets initially recognised includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Plant and machinery etc

20% - 25% on cost

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the income statement.

Financial instruments

The company only has financial assets and liabilities of the kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and debt instruments are subsequently measured at amortised cost.

Finance costs

Finance costs are charged to the Income Statement over the term of the debt using the effective interest rate method so that 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

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company offers a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period in which they relate.

Leases

Where assets are financed by leasing agreements that give rights approximating to ownership, the assets are treated as if they have been purchased outright. The amount capitalised is their fair value of the asset concerned. The corresponding liability to the leasing company is included as an obligation under finance leases. Depreciation on leased assets is charged to the profit and loss account over the shorter of the lease term and their useful life. Leasing payments are treated as consisting of capital and interest elements, and interest is charged to the profit and loss account on a straight line basis which is considered to be a reasonable approximation to a constant rate of charge on the outstanding balance.

All other leases are treated as 'operating leases' and the relevant annual rentals are charged to the profit and loss account on a straight line basis over the lease term.

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.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2023 - 10 ) .

4.	INTANGIBLE FIXED ASSETS

Totals

£

COST

At 1 January 2024

1,537,586

Additions

161,953

At 31 December 2024

1,699,539

AMORTISATION

At 1 January 2024

1,330,194

Amortisation for year

200,267

At 31 December 2024

1,530,461

NET BOOK VALUE

At 31 December 2024

169,078

At 31 December 2023

207,392

5.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1 January 2024

116,759

Additions

4,195

At 31 December 2024

120,954

DEPRECIATION

At 1 January 2024

101,164

Charge for year

8,777

At 31 December 2024

109,941

NET BOOK VALUE

At 31 December 2024

11,013

At 31 December 2023

15,595

6.	OTHER FINANCIAL COMMITMENTS

At 31 December 2024, the company had total commitments under non-cancellable operating leases over the remaining life of the licence of £7,592 (2023: £5,832).

7.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

Included in debtors is the following loan to the director:

2024

2023

£

£

Balance outstanding at start of year

53,303

27,477

Balance outstanding at end of year

79,443

53,303

During the year the director withdrew further funds totalling £24,306.

Interest is charged on the loan based on HMRC's official rate.

The loan is repayable on demand.

8.	RELATED PARTY DISCLOSURES

During the year the an employee, who is also a shareholder with a participating interest, received a loan from the company of £40,000. £3,900 was repaid to the company during the year. Interest is charged on the loan based on HMRC's official rate. At the year end the balance due to the company was £36,364. The loan is repayable on demand.