Company No: 11978056 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2025		2024
		£		£
				Restated
Fixed assets
Intangible assets	3	573,194		443,456
Tangible assets	4	88,239		114,032
		661,433		557,488
Current assets
Stocks		117,799		21,565
Debtors	5	451,024		340,243
Cash at bank and in hand		152,653		57,386
		721,476		419,194
Creditors: amounts falling due within one year	6	( 650,486)		( 515,431)
Net current assets/(liabilities)		70,990		(96,237)
Total assets less current liabilities		732,423		461,251
Creditors: amounts falling due after more than one year	7	( 338,956)		( 93,938)
Net assets		393,467		367,313
Capital and reserves
Called-up share capital	8	138		106
Share premium account		1,445,975		389,544
Capital redemption reserve		8		7
Other reserves		0		241,528
Profit and loss account		( 1,052,654 )		( 263,872 )
Total shareholders' funds		393,467		367,313

For the financial year ending 31 March 2025 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The director acknowledges 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 Profit and Loss Account has not been delivered.

The financial statements of Karno Sound Limited (registered number: 11978056) were approved and authorised for issue by the Director on 30 December 2025. They were signed on its behalf by:

Mr A Pierce 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

Karno Sound 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 London Innovation Centre, 20 Water Street, London, E14 5GX, 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 financial statements have been prepared on a going concern basis. The director has reviewed the company’s cash flow forecasts and funding requirements for a period of at least 12 months from the date of approval of these financial statements. Based on these forecasts, the director expects the company to generate sufficient cash flows from its operations and available funding sources to meet its obligations as they fall due. Accordingly, the director considers it appropriate to prepare the financial statements on a going concern basis.

Prior year adjustment

During the year, it was identified that £515,343 of costs incurred during the prior year met the criteria for capitalisation as an intangible asset. Accordingly, the £515,343 has been capitalised and amortisation of £103,069 has been charged. As a result, the carried forward balance of retained earnings increased by £412,274.

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.

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.

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 tax 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 tax rates and laws substantively enacted at the balance sheet date. Deferred tax assets and liabilities are not discounted.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Development costs	5 years straight line
Website costs	25 % reducing balance
Other intangible assets	50 years straight line

Research and development

Research expenditure is written off as incurred. Development expenditure is also written off, except where the director is satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is capitalised as an intangible asset and amortised over the period during which the Company is expected to benefit. Provision is made for any impairment.

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, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life, as follows:

Plant and machinery	4 years straight line
Vehicles	4 years straight line
Office equipment	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.

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 Profit and Loss Account 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.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

2. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including the director	13		10

3. Intangible assets

	Development costs		Website costs		Other intangible assets		Total
	£		£		£		£
Cost
At 01 April 2024	515,343		0		32,453		547,796
Additions	259,846		11,602		17,222		288,670
At 31 March 2025	775,189		11,602		49,675		836,466
Accumulated amortisation
At 01 April 2024	103,069		0		1,271		104,340
Charge for the financial year	155,038		2,901		993		158,932
At 31 March 2025	258,107		2,901		2,264		263,272
Net book value
At 31 March 2025	517,082		8,701		47,411		573,194
At 31 March 2024	412,274		0		31,182		443,456

4. Tangible assets

	Plant and machinery		Vehicles		Office equipment		Total
	£		£		£		£
Cost
At 01 April 2024	103,774		68,990		35,556		208,320
Additions	22,013		0		10,064		32,077
At 31 March 2025	125,787		68,990		45,620		240,397
Accumulated depreciation
At 01 April 2024	38,834		34,496		20,958		94,288
Charge for the financial year	31,442		17,248		9,180		57,870
At 31 March 2025	70,276		51,744		30,138		152,158
Net book value
At 31 March 2025	55,511		17,246		15,482		88,239
At 31 March 2024	64,940		34,494		14,598		114,032

5. Debtors

	2025		2024
	£		£
Trade debtors	167,601		145,642
Other debtors	283,423		194,601
	451,024		340,243

6. Creditors: amounts falling due within one year

	2025		2024
	£		£
Bank loans	213,113		66,860
Trade creditors	242,022		383,950
Other taxation and social security	11,892		12,231
Obligations under finance leases and hire purchase contracts	38,265		6,989
Other creditors	145,194		45,401
	650,486		515,431

Hire Purchase loans are secured against the asset acquired on Hire Purchase.

7. Creditors: amounts falling due after more than one year

	2025		2024
	£		£
Bank loans	56,491		55,673
Other loans	282,465		0
Obligations under finance leases and hire purchase contracts	0		38,265
	338,956		93,938

Hire Purchase loans are secured against the asset acquired on Hire Purchase.

8. Called-up share capital

	2025		2024
	£		£
Allotted, called-up and fully-paid
13,839 Ordinary shares of £ 0.01 each (2024: 10,584 shares of £ 0.01 each)	138		106