REGISTERED NUMBER: 03048036 (England and Wales)

TEEN SPIRIT LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD

1 FEBRUARY 2024 TO 31 JULY 2025

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

8

Income Statement

9

Other Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

to

15

Notes to the Financial Statements

16

to

28

DIRECTORS:

W Sheeran

Mrs S J Sheeran

C R Cooper

Mrs A Cooper

SECRETARY:

Mrs S J Sheeran

REGISTERED OFFICE:

The Tower Cinema

111 Lumley Road

Skegness

Lincs

PE25 3LZ

REGISTERED NUMBER:

03048036 (England and Wales)

SENIOR STATUTORY AUDITOR:

Tara Bellamy FCA

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

27-29 Lumley Avenue

Skegness

Lincolnshire

PE25 2AT

BANKERS:

HSBC Bank PLC

49 Lumley Road

Skegness

Lincolnshire

PE25 3LW

The directors present their strategic report for the period 1 February 2024 to 31 July 2025.

REVIEW OF BUSINESS

The headline results for the year and the two preceding years are as follows:-

18 Months to

Year to

Year to

31 July 2025

31 January 2024

31 January 2023

£

£

£

Turnover

9,401,803

6,276,237

6,237,069

Gross profit

5,363,452

3,675,153

3,697,491

Gross profit margin

57%

59%

59%

Operating profit/(loss)

1,341,042

1,015,167

1,478,427

Operating profit margin

14%

16%

24%

The Directors are happy with another good trading performance during the year within the leisure trade. Operating profit has decreased due to unavoidable operational costs mainly the large increase again in Minimum Wage and the professional costs involved with the restructure of the company. Gross profit margin has remained consistent and the small dip for the extended period is because the busiest period during the summer school holidays was not captured within this period. The directors have considered the key performance indicators and the current economic conditions in the country and are working to reduce the operational costs where possible in the future. The company restructure completed at the end of July 2025 and these professional costs will not need to be considered again in the foreseeable future.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks. Risks are formally reviewed by the directors and appropriate processes put in place to monitor and mitigate them.

The key risks affecting the company are set out below:

Customers

In order to reduce the potential loss of custom the company values integrity and seeks to conduct its business with professionalism and aspires to provide excellent service in the eyes of our customers. In order to do so the business ensures it is closely aligned to all its customers' objectives.

Employees

The company respects and cares for its staff and invests in their employment potential in return for loyalty, openness, commitment and performance. The company believes in remunerating its staff fairly for doing a good job, which includes taking on responsibility, working as a team and supporting the company's continuous improvement.

Commodity risk

The company is also exposed to the varieties of the climate and consequent impacts upon the price and availability of product. Consequently the company operates a variety of key mitigating tools to reduce exposure to commodity risk.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Interest rate risk

The company finances its operations through a combination of bank borrowings and finance leases. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and variable rate facilities.

The company's revenues and activity levels are affected by a number of factors, the principal ones of which are:

- The economic climate (GFC), and localised factors, all impact on demand.

- Consumer tastes and expenditure, influenced by demographics and trends in the leisure sector.

- Rising input costs, such as food, labour and utility costs all have an impact on the cost base of the company and operating margins.

DEVELOPMENT AND PERFORMANCE

The directors are mindful of costing the company's expansion of operations. Despite continuing economic difficulties the directors look forward to the future of the company and the industry sector it operates in with ever increasing optimism.

ON BEHALF OF THE BOARD:

Mrs A Cooper - Director

31 July 2026

The directors present their report with the financial statements of the company for the period 1 February 2024 to 31 July 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of providing family entertainment such as amusement arcades, aquariums, cinema and golf.

DIVIDENDS

The total distribution of dividends for the period ended 31 July 2025 was £9,277,180

DIRECTORS

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

W Sheeran

Mrs S J Sheeran

Other changes in directors holding office are as follows:

S Sinclair - appointed 14 October 2024

C R Cooper and Mrs A Cooper were appointed as directors after 31 July 2025 but prior to the date of this report.

S Sinclair ceased to be a director after 31 July 2025 but prior to the date of this report.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mrs A Cooper - Director

31 July 2026

Opinion

We have audited the financial statements of Teen Spirit Limited (the 'company') for the period ended 31 July 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 July 2025 and of its profit for the period 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 four, 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.

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Gambling Commission, Food Safety Hygiene and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the health and safety audits and food hygiene certificates and correspondence with the Gambling Commission within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls and gambling commission compliance. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Tara Bellamy FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

27-29 Lumley Avenue

Skegness

Lincolnshire

PE25 2AT

31 July 2026

TURNOVER

3

9,401,803

6,276,237

Cost of sales

4,038,351

2,601,084

GROSS PROFIT

5,363,452

3,675,153

Administrative expenses

4,403,529

2,800,235

959,923

874,918

Other operating income

381,118

140,249

OPERATING PROFIT

5

1,341,041

1,015,167

Profit/loss on sale of tangible fixed assets

6

4,743,801

-

Profit/loss on sale of investment property

6

(15,575

)

-

6,069,267

1,015,167

Interest receivable and similar income

112

(297

)

6,069,379

1,014,870

Gain/loss on revaluation of investment property

-

68,243

6,069,379

1,083,113

Interest payable and similar expenses

7

484,053

344,081

PROFIT BEFORE TAXATION

5,585,326

739,032

Tax on profit

8

122,864

200,777

PROFIT FOR THE FINANCIAL PERIOD

5,462,462

538,255

PROFIT FOR THE PERIOD

5,462,462

538,255

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

5,462,462

538,255

FIXED ASSETS

Tangible assets

10

5,326,351

8,982,592

Investments

11

-

100

Investment property

12

-

1,005,575

5,326,351

9,988,267

CURRENT ASSETS

Stocks

13

107,649

197,262

Debtors

14

1,107,874

1,991,538

Cash at bank and in hand

303,468

404,005

1,518,991

2,592,805

CREDITORS

Amounts falling due within one year

15

2,009,881

1,742,664

NET CURRENT (LIABILITIES)/ASSETS

(490,890

)

850,141

TOTAL ASSETS LESS CURRENT LIABILITIES

4,835,461

10,838,408

CREDITORS

Amounts falling due after more than one year

16

(2,554,066

)

(4,582,517

)

PROVISIONS FOR LIABILITIES

20

(235,664

)

(395,442

)

NET ASSETS

2,045,731

5,860,449

CAPITAL AND RESERVES

Called up share capital

21

50,000

50,000

Fair value reserve

22

-

55,191

Capital redemption reserve

22

1,000

1,000

Retained earnings

22

1,994,731

5,754,258

SHAREHOLDERS' FUNDS

2,045,731

5,860,449

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2026 and were signed on its behalf by:

Mrs A Cooper - Director

Called up

Fair

Capital

share

Retained

value

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 February 2023

50,000

5,365,849

5,345

1,000

5,422,194

Changes in equity

Dividends

-

(100,000

)

-

-

(100,000

)

Total comprehensive income

-

488,409

49,846

-

538,255

Balance at 31 January 2024

50,000

5,754,258

55,191

1,000

5,860,449

Changes in equity

Dividends

-

(9,277,180

)

-

-

(9,277,180

)

Total comprehensive income

-

5,517,653

(55,191

)

-

5,462,462

Balance at 31 July 2025

50,000

1,994,731

-

1,000

2,045,731

Cash flows from operating activities

Cash generated from operations

1

2,063,561

1,936,284

Interest paid

(484,053

)

(344,081

)

Tax paid

(89,708

)

(203,540

)

Net cash from operating activities

1,489,800

1,388,663

Cash flows from investing activities

Purchase of tangible fixed assets

(549,869

)

(1,517,578

)

Purchase of investment property

-

(218,775

)

Sale of tangible fixed assets

203,445

4,000

Interest received

112

(297

)

Net cash from investing activities

(346,312

)

(1,732,650

)

Cash flows from financing activities

New loans in year

-

143,500

Loan repayments in year

(868,725

)

(394,241

)

Capital repayments in year

(134,313

)

112,132

Amount introduced by directors

30,557

43,401

Amount withdrawn by directors

(271,544

)

(230,652

)

Net cash from financing activities

(1,244,025

)

(325,860

)

Decrease in cash and cash equivalents

(100,537

)

(669,847

)

Cash and cash equivalents at beginning of period

2

404,005

1,073,852

Cash and cash equivalents at end of period

2

303,468

404,005

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.2.24

to

Year Ended

31.7.25

31.1.24

£

£

Profit before taxation

5,585,326

739,032

Depreciation charges

1,060,086

680,339

Profit on disposal of fixed assets

(4,832,203

)

(2,200

)

Gain on revaluation of fixed assets

-

(68,243

)

Government grants

(36,598

)

-

Finance costs

484,053

344,081

Finance income

(112

)

297

2,260,552

1,693,306

(Increase)/decrease in stocks

(81,279

)

44,800

Increase in trade and other debtors

(421,409

)

(33,384

)

Increase in trade and other creditors

305,697

231,562

Cash generated from operations

2,063,561

1,936,284

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Period ended 31 July 2025

31.7.25

1.2.24

£

£

Cash and cash equivalents

303,468

404,005

Year ended 31 January 2024

31.1.24

1.2.23

£

£

Cash and cash equivalents

404,005

1,073,852

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.2.24

Cash flow

At 31.7.25

£

£

£

Net cash

Cash at bank and in hand

404,005

(100,537

)

303,468

404,005

(100,537

)

303,468

Debt

Finance leases

(211,394

)

134,313

(77,081

)

Debts falling due within 1 year

(721,322

)

165,936

(555,386

)

Debts falling due after 1 year

(4,101,108

)

1,902,834

(2,198,274

)

(5,033,824

)

2,203,083

(2,830,741

)

Total

(4,629,819

)

2,102,546

(2,527,273

)

1.	STATUTORY INFORMATION

Teen Spirit 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Preparation of consolidated financial statements

The financial statements contain information about Teen Spirit Limited as an individual company and do not contain consolidated financial information as the parent of a group.The company is exempt under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements requires management to make estimates and assumptions. The areas involving significant estimation uncertainty are:

useful economic lives of tangible fixed assets;

recoverability of debtor balances;

measurement of deferred taxation balances.

Actual outcomes may differ from these estimates.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied and services rendered, net of returns and discounts allowed by the company and value added taxes.

Tangible fixed assets

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

Freehold property

-

20% on cost and 2% on cost

Short leasehold

-

3 - 13 years straight line

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on reducing balance and 3 - 13 years straight line

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment property is shown at the most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the income statement.

During the period the company transferred the investment property with a carrying value of £1,005,575 as part of a group restructuring. The transaction was undertaken at book value. No gain or loss arose on disposal.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments

The company has chosen to adopt the FRS102 1A in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the period 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 or deferred taxation assets and liabilities are not discounted.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 period 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.