Ignite (North) Limited - Limited company accounts 25.1

REGISTERED NUMBER: 08814879 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2025

for

Ignite (North) Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

M T Hopton

S J Darkin

REGISTERED OFFICE:

The Mills

Canal Street

Derby

Derbyshire

DE1 2RJ

REGISTERED NUMBER:

08814879 (England and Wales)

AUDITORS:

Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

The directors present their strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

The directors are satisfied with the results and year end financial position and is confident that a consistent level of activity and profitability will be maintained during the current year.

Turnover for the twelve month period has increased by £1,144k (9.0%) whilst cost of sales have decreased by £185k (1.8%) resulting in a gross profit margin of 27.6% (2024 - 19.7%).

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the nature of the company's strategy are subject to risks.

There is a risk of diminishing footfall, though this is closely reviewed by way of monitoring the turnover and profit margins in the quarterly management accounts.

ORGANISATION

The directors continue to monitor the company's organisation and profitability with the intention of constantly improving them wherever possible.

INVESTMENT

The directors continue to invest in opening new stores as the company seeks to maximise profitability.

KEY PERFORMANCE INDICATORS

Performance is largely measured by sales margins, overheads as a proportion of sales, and bank balance. Costs are monitored through the review of quarterly management accounts.

ON BEHALF OF THE BOARD:

M T Hopton - Director

17 December 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the retail of mobile phones and accessories.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

M T Hopton

S J Darkin

FINANCIAL INSTRUMENTS

The company's financial assets and liabilities consist of trade debtors and creditors, cash balances and amounts owed to group undertakings.

The directors manage the company's exposure to financial risk by researching the credit worthiness of end customers and by seeking advice from the company's franchise provider and its other external financial advisers.

The company does not trade in foreign currencies.

The company does not trade speculatively in derivatives or similar instruments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

M T Hopton - Director

17 December 2025

Opinion

We have audited the financial statements of Ignite (North) Limited (the 'company') for the year ended 31 March 2025 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Based on our understanding of the company and industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the retail sale industry and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included:

-

Enquiry of management around actual and potential litigation and claims;

-

Reviewing financial statement disclosures and testing to supporting documentation to assess
compliance with applicable laws and regulations;

-

Performing audit work over the risk of management override of controls, including testing of journal
entries and other adjustments for appropriateness, evaluating the business rationale of significant
transactions outside the normal course of business and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Ian Neal FCA CTA (Senior Statutory Auditor)

for and on behalf of Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

17 December 2025

TURNOVER

3

13,900,920

12,757,262

Cost of sales

10,057,402

10,242,408

GROSS PROFIT

3,843,518

2,514,854

Administrative expenses

1,182,892

2,255,341

2,660,626

259,513

Other operating income

2,618

180,000

OPERATING PROFIT

5

2,663,244

439,513

Interest receivable and similar income

18,221

9,590

2,681,465

449,103

Interest payable and similar expenses

6

462

-

PROFIT BEFORE TAXATION

2,681,003

449,103

Tax on profit

7

671,104

113,916

PROFIT FOR THE FINANCIAL YEAR

2,009,899

335,187

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,009,899

335,187

FIXED ASSETS

Intangible assets

8

129,445

77,393

Tangible assets

9

15,301

16,710

144,746

94,103

CURRENT ASSETS

Stocks

10

214,261

181,373

Debtors

11

3,062,802

6,101,839

Cash at bank and in hand

2,530,156

552,560

5,807,219

6,835,772

CREDITORS

Amounts falling due within one year

12

2,442,702

5,430,961

NET CURRENT ASSETS

3,364,517

1,404,811

TOTAL ASSETS LESS CURRENT
LIABILITIES

3,509,263

1,498,914

PROVISIONS FOR LIABILITIES

15

3,825

3,375

NET ASSETS

3,505,438

1,495,539

CAPITAL AND RESERVES

Called up share capital

16

100

Retained earnings

17

3,505,338

1,495,439

SHAREHOLDERS' FUNDS

3,505,438

1,495,539

The financial statements were approved by the Board of Directors and authorised for issue on 17 December 2025 and were signed on its behalf by:

M T Hopton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

Balance at 1 April 2023

100

1,160,252

1,160,352

Changes in equity

Total comprehensive income

-

335,187

Balance at 31 March 2024

100

1,495,439

1,495,539

Changes in equity

Total comprehensive income

-

2,009,899

Balance at 31 March 2025

100

3,505,338

3,505,438

1.	STATUTORY INFORMATION

Ignite (North) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Turnover

Turnover represents commission and net invoiced sales of goods, excluding value added tax.

Commissions are recognised in the period in which it is earned.

Turnover from the sale of goods is recognised when the company has transferred the significant risks and rewards of ownership to the buyer and it is provable that the company will receive the previously agreed upon payment. These criteria are considered to be met when the goods are delivered to the buyer.

Intangible assets

Intangible fixed assets consists of franchise licence fees and are stated at historical cost less accumulated amortisation and any accumulated impairment losses.

Franchise licence fees are being amortised evenly over their estimated useful life of five years.

The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Fixtures and fittings

- 25% on reducing balance

Computer equipment

- 33% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'administrative expenses' in the profit and loss account.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. cost is based on purchase invoice price on a first in first out basis and includes all associated direct costs.

At each reporting date, stock is assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete to sell. The impairment loss is recognised immediately in the profit and loss account.

Deferred tax

Deferred tax arises from timing differences that are differences between taxable total profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

A deferred tax asset is recognised only when it is more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences and losses can be deducted.

Provision is made at current rates for taxation deferred in respect of all material timing differences.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investment with original maturities of three months or less.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of

new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Pension costs and other post-retirement benefits

The company operates a defined contribution plan for its employees and a separate scheme for the directors. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Leasing commitments

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Related parties

The company is a wholly owned subsidiary undertaking of Hopton Trading Holdings Limited. The company has taken advantage of the exemption contained within Financial Reporting Standard 102 and has therefore not disclosed transactions with entities which form part of the group, other than as normally disclosed in the notes to the financial statements.

Judgements in applying accounting policies and key sources of estimation

In the application of the company's accounting policies the directors are required to make judgement estimates and assumptions about the carrying amounts of the company's assets and liabilities. These are based on historical experience and other factors that are considered relevant and are reviewed on a regular basis and recognised in the period in which the estimate is revised. Actual results may differ from these estimates.

The following are the critical judgements and where relevant the key sources of estimation uncertainty:

Tangible fixed assets are depreciated over their useful economic lives taking into account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider things such as future market conditions, the remaining life of the asset and projected disposal values.

The recoverability of debtors is assessed on the likelihood and circumstances of the particular cost.

The value of stock is assessed for impairment. In reassessing the stock value, factors such as slow movement and obsolescence are taken into account.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

Commissions made up £13,670,090 (2024 - £12,315,998) of the turnover figure. The balance relates to the sale of goods.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

Wages and salaries

1,549,408

1,541,931

Social security costs

148,944

138,695

Other pension costs

32,362

31,938

1,730,714

1,712,564

The average number of employees during the year was as follows:

2025

2024

Sales

47

55

Administration

2

Directors

2

51

59

2025

2024

£

Directors' remuneration

-

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

Depreciation - owned assets

4,499

4,352

Franchise licence fees amortisation

40,512

18,394

Auditors' remuneration

18,000

Auditors' remuneration for non-audit work

47,168

44,913

Operating lease payments

359,579

386,759

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

Interest on taxation

462

-

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

Current tax:

UK corporation tax

670,000

114,000

Prior year tax adjustment

654

-

Total current tax

670,654

114,000

Deferred tax

450

(84

)

Tax on profit

671,104

113,916

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

Profit before tax

2,681,003

449,103

Profit multiplied by the standard rate of corporation tax in the UK of
25% (2024 - 25%)

670,251

112,276

Effects of:

Expenses not deductible for tax purposes

199

1,602

Adjustments to tax charge in respect of previous periods

654

38

Total tax charge

671,104

113,916

8.	INTANGIBLE FIXED ASSETS

Franchise

licence

fees

£

COST

At 1 April 2024

125,422

Additions

92,564

At 31 March 2025

217,986

AMORTISATION

At 1 April 2024

48,029

Amortisation for year

40,512

At 31 March 2025

88,541

NET BOOK VALUE

At 31 March 2025

129,445

At 31 March 2024

77,393

9.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

COST

At 1 April 2024

65,134

23,349

88,483

Additions

3,090

-

3,090

At 31 March 2025

68,224

23,349

91,573

DEPRECIATION

At 1 April 2024

48,424

23,349

71,773

Charge for year

4,499

-

4,499

At 31 March 2025

52,923

23,349

76,272

NET BOOK VALUE

At 31 March 2025

15,301

-

15,301

At 31 March 2024

16,710

-

16,710

10.

STOCKS

2025

2024

£

Goods for resale

214,261

181,373

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

Trade debtors

487,463

395,950

Amounts owed by group undertakings

2,358,770

5,580,919

Other debtors

-

9,723

Prepayments and accrued income

216,569

115,247

3,062,802

6,101,839

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

Trade creditors

832,368

483,656

Amounts owed to group undertakings

1,028,231

980,000

Tax

330,969

113,988

Social security and other taxes

197,208

290,960

Other creditors

49

48,151

Owed to related parties

-

3,317,077

Accrued expenses

53,877

197,129

2,442,702

5,430,961

13.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

£

Within one year

219,953

280,995

Between one and five years

321,578

541,532

541,531

822,527

14.	SECURED DEBTS

There are fixed and floating charges over assets of the company by way of Guarantor for a related undertaking.

15.	PROVISIONS FOR LIABILITIES

2025

2024

£

Deferred tax

Accelerated capital allowances

3,825

3,375

Deferred

tax

£

Balance at 1 April 2024

3,375

Provided during year

450

Balance at 31 March 2025

3,825

16.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

100

Ordinary

£1

100

17.

RESERVES

Retained

earnings

£

At 1 April 2024

1,495,439

Profit for the year

2,009,899

At 31 March 2025

3,505,338

18.	ULTIMATE PARENT COMPANY

The company's ultimate parent company is Hopton Trading Holdings Limited. The registered office of Hopton Trading Holdings Limited is The Mills, Canal Street, Derby, DE1 2RJ. Copies of the consolidated financial statements of Hopton Trading Holdings Limited are available from the Registrar of Companies, Companies House, Crown Walk, Cardiff, CF14 3UZ.

19.	RELATED PARTY DISCLOSURES

During the year, the company was charged for management services amounting to £350,000 (2024: £1,400,000) from a company, via a current account, which is controlled by the directors. At the balance sheet date, the amount owing from this company is shown in the creditors note. The balance is interest free and repayable on demand.

20.	EMPLOYEE BENEFITS

Included in the notes to the financial statements are payments to the defined contribution pension scheme.