Sugar Creative Studio Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—8

1. General Information

Sugar Creative Studio Limited is a private company, limited by shares and incorporated in England & Wales. The registered company number is 06840456 and the registered office address is Lambourne House, Lambourne Crescent, Llanishen, Cardiff, Wales, CF14 5GL.

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. Going Concern Disclosure

The directors believe the company to be a going concern and will continue to give their support to the company over the next 12 months.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of value added taxes. Turnover is measured by reviewing the actual services performed against the total services to be provided and is only recognised if it can be estimated reliably.

2.4. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to the profit and loss account over its estimated economic life of 5 years.

2.5. Research and Development

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs - 13% straight line

2.6. 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:

Fixtures and fittings	33% reducing balance
Computer equipment	20% reducing balance

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Sugar Creative Studio Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2026

2.7. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.8. Financial Instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade debtors and creditors are classified as basic financial instruments and are recognised at transaction price less any impairment. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Other debtors and creditors are measured at amortised cost using the effective interest rate method.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with 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. Equity instruments issued by the company are recorded at the proceeds received.

2.9. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.10. Taxation

The taxation expense represents the sum of the tax currently payable and deferred tax. Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the profit and loss account 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.

...CONTINUED

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Sugar Creative Studio Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2026

2.10. Taxation - continued

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, except as otherwise required by Section 29 of FRS 102. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements. They 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date and that are expected to apply to the reversal of the timing differences. Deferred tax assets and liabilities are not discounted.

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.

At the balance sheet date the company has unused trading losses available to carry forward. No deferred tax asset has been recognised in respect of these losses, net of the deferred tax liabilities arising on capitalised development costs and accelerated capital allowances, because there is insufficient certainty about the timing of future taxable profits against which they could be utilised.

2.11. Pensions

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

2.12. Government Grant

Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.

Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.

All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.

3. Average Number of Employees

	31 July 2026	31 July 2025
Average number of employees, including directors, during the period	10	10

	10	10

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Sugar Creative Studio Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2026

4. Intangible Assets

	Goodwill	Development costs	Total
	£	£	£
Cost
As at 1 August 2025	20,000	237,427	257,427

As at 31 July 2026	20,000	237,427	257,427

Amortisation
As at 1 August 2025	20,000	133,077	153,077
Provided during the period	-	23,936	23,936

As at 31 July 2026	20,000	157,013	177,013

Net Book Value
As at 31 July 2026	-	80,414	80,414

As at 1 August 2025	-	104,350	104,350

5. Tangible Assets

	Fixtures and fittings	Computer equipment	Total
	£	£	£
Cost
As at 1 August 2025	41,865	15,157	57,022
Additions	-	749	749

As at 31 July 2026	41,865	15,906	57,771

Depreciation
As at 1 August 2025	41,346	9,027	50,373
Provided during the period	171	1,264	1,435

As at 31 July 2026	41,517	10,291	51,808

Net Book Value
As at 31 July 2026	348	5,615	5,963

As at 1 August 2025	519	6,130	6,649

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Sugar Creative Studio Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2026

6. Debtors

	31 July 2026	31 July 2025
	£	£
Due within one year
Trade debtors	16,722	21,114
Other debtors	90,656	85,730

	107,378	106,844

7. Creditors: Amounts Falling Due Within One Year

	31 July 2026	31 July 2025
	£	£
Trade creditors	26,105	11,187
Bank loans and overdrafts	68,833	151,178
Other creditors	26,538	8,140
Taxation and social security	127,276	28,147

	248,752	198,652

8. Creditors: Amounts Falling Due After More Than One Year

	31 July 2026	31 July 2025
	£	£
Bank loans	83,823	18,772

9. Secured Creditors

A fixed and floating charge over the undertaking and all property and assets, present and future, was created in favour of Triple Dragon Funding Sierra S.A.R.L. to secure all monies due or becoming due from the company.

	31 July 2026		31 July 2025
	£		£
Bank loans and overdrafts	94,350		95,000

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Sugar Creative Studio Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 July 2026

10. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases is as follows:

	31 July 2026	31 July 2025
	£	£
Not later than one year	2,450	4,200
Later than one year and not later than five years	-	2,450

	2,450	6,650

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		31 July 2026		31 July 2025
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		80,414		104,350
Tangible Assets	5		5,963		6,649

			86,377		110,999
CURRENT ASSETS
Debtors	6	107,378		106,844
Cash at bank and in hand		26,065		12,260

		133,443		119,104
Creditors: Amounts Falling Due Within One Year	7	(248,752 )		(198,652 )

NET CURRENT ASSETS (LIABILITIES)			(115,309 )		(79,548 )

TOTAL ASSETS LESS CURRENT LIABILITIES			(28,932 )		31,451

Creditors: Amounts Falling Due After More Than One Year	8		(83,823 )		(18,772 )

NET (LIABILITIES)/ASSETS			(112,755 )		12,679

CAPITAL AND RESERVES
Called up share capital			134		85
Capital redemption reserve			50		50
Profit and Loss Account			(112,939 )		12,544

SHAREHOLDERS' FUNDS			(112,755)		12,679