REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 |
FOR |
ACCESS TO MUSIC LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 |
FOR |
ACCESS TO MUSIC LIMITED |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Statement of Income and Retained Earnings | 10 |
Statement of Financial Position | 11 |
Notes to the Financial Statements | 12 | to | 22 |
ACCESS TO MUSIC LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JULY 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Stone House |
Stone Road Business Park |
Stoke on Trent |
ST4 6SR |
BANKERS: |
38 Mosley Street |
Manchester |
M60 2BE |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2022 |
The directors present their strategic report for the year ended 31 July 2022. |
Review of the business |
The company's principal activities during the year continued to be state funded educational and vocational training provision, mainly in the subject areas of music, digital and sport related industries. |
Learner numbers decreased by 5.0% in the year due to a decrease in subcontractor learner volumes in accordance with the revised ESFA (Education and Skills Funding Agency) maximum subcontractor rules. Other impacting factors were the teach out in the York centre ahead of closing the centre in July 2022 plus the impact from higher GCSE grades as a result of teacher assessed grades that result in a lower number of learners taking vocational qualifications. Also, the business was not able to run as many open days and visit schools as normal which will also have impacted learner recruitment. Learner volumes increased at the Bristol centre, following the opening of the re-modelled centre, with growth also seen for the Sports and T-level provision. The business remains the largest independent training provider (ITP) in England that holds an ESFA contract. |
A new centre in Manchester based in New Century opened in August 2022 which will provide additional further education capacity and also enable the other group companies to offer higher education courses in the city. |
The business will move locations in London to the MET Building in East Aldgate with the new centre planned opening in August 2023. The new building will provide additional learner capacity and an enhanced learner experience. |
The business had a full Ofsted inspection in March 2022 with a rating of Good which was consistent with the previous inspection in May 2016. |
The key financial and other performance indicators during the year were as follows: |
31.07.2022 | 31.07.2021 | Change |
£ | £ | % |
Turnover | 22,024,355 | 21,351,170 | 3.2 |
Operating profit/(loss) | (530,801 | ) | 926,700 | (157.3 | ) |
Profit/(loss) before tax | (219,360 | ) | 1,245,193 | (117.6 | ) |
Equity shareholders' funds | 8,883,949 | 9,083,329 | (2.2 | ) |
Education Funding Agency (ESFA) Learner numbers | 4,084 | 4,299 | (5.0 | ) |
Turnover increased by 3.2% during the year due to the expected unwind of 'lagged' growth from the ESFA allocation statement as reported last year plus an increase in funding per learner which also required an increase in teaching hours. |
Profit before tax decreased by 117.6% as a result of costs increasing by a larger amount compared to turnover. The additional costs related to the Bristol and new Manchester sites which will support higher learner capacity in the future, higher payroll costs including additional temporary staff required due to Covid impact, investment in additional marketing resources to support future growth plus higher travel costs as operating methods changed as Covid restrictions were removed. |
Shareholders' funds decreased by 2.2% due to the losses incurred in the year. |
ESFA learner numbers is a key indicator given the fixed rate income received by the Government for each learner. Growth above the statement value is also capped in the year at £0.5m with a further review based on affordability. Any over-delivery of learners in excess of the amount paid by the ESFA is expected to be funded by the provider in full with the next academic year statement reflecting all growth. The learner number funded on the ESFA statement for FY22/23 will grow by 2%. |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Competitive Risks |
The availability of funding from the ESFA is by specific contract with high barriers to entry. As the largest ITP in England we are well placed to maintain our market share in core music provision courses while also expanding into new curriculum areas of Digital, Games Design and Sports. |
Legislative Risks |
The core ESFA contracts are Government led and therefore open to change between parliamentary terms. The business has regular contact with the Large Provider Unit at the ESFA to ensure the business has a good amount of lead time relating to any proposed changes and the ability to help shape strategy where support and input is requested by the ESFA. The ESFA have confirmed an increase of 2% in the base funding per learner for academic year 2023-24. |
Going Concern Risks |
The group remains a going concern due to the strong cash position, strategic forward planning and ability to raise any necessary bank debt in the future to satisfy the year on year growth in student numbers. As none of the current debt is held with an external bank, none of the interest accruing is payable. |
Exposure to price, credit, liquidity and cash flow risk |
The national funding formula for 16-18 year olds can be reviewed annually with rate changes and cash receipt dates open to review. These are still set annually in advance for the year so impacts can be planned well in advance and risks mitigated. |
ON BEHALF OF THE BOARD: |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2022 |
The directors present their report with the financial statements of the company for the year ended 31 July 2022. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 July 2022 was £82,830. |
RESEARCH AND DEVELOPMENT |
Research and development expenditure is written off in the year in which it is incurred. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2021 to the date of this report. |
Other changes in directors holding office are as follows: |
EMPLOYMENT OF DISABLED PERSONS |
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions, and to provide training and career development and promotion to disabled employees wherever appropriate. |
EMPLOYEE INVOLVEMENT |
The company recognises the significant contribution to the business of the commitment and quality of our employees. The company's policy is to consult and discuss the employees matters likely to affect their interests. This is generally achieved through briefing local centre managers. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes the likely future developments of the business. |
The strategic report can be found on page 2-3 of these financial statements. |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2022 |
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. |
AUDITORS |
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACCESS TO MUSIC LIMITED |
Opinion |
We have audited the financial statements of Access to Music Limited (the 'company') for the year ended 31 July 2022 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position 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 July 2022 and of its loss 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACCESS TO MUSIC LIMITED |
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 five, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACCESS TO MUSIC LIMITED |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
Based on this approach, we were able to assess the company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information. |
Audit response to risks identified |
As a result of performing the above, we identified the outcome of professional body audits as a key audit matter related to the potential risk of fraud or irregularities. The company is regulated by Ofsted and is also audited by the ESFA. Health and Safety regulations must also be adhered to in all colleges. |
Our procedures to respond to risks identified included the following: |
- reviewing any audits completed by professional bodies in the year and the outcomes of these to ensure the company has met the relevant obligations. |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACCESS TO MUSIC LIMITED |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due 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. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
- | Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. |
- | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
- | Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern. |
- | Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
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. |
for and on behalf of |
Stone House |
Stone Road Business Park |
Stoke on Trent |
ST4 6SR |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
STATEMENT OF INCOME AND RETAINED EARNINGS |
FOR THE YEAR ENDED 31 JULY 2022 |
31.7.22 | 31.7.21 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
(541,801 | ) | 910,356 |
Other operating income |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest receivable and similar income |
(214,681 | ) | 1,250,884 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 8 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
Retained earnings at beginning of year |
Dividends | 9 | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
STATEMENT OF FINANCIAL POSITION |
31 JULY 2022 |
31.7.22 | 31.7.21 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2022 |
1. | STATUTORY INFORMATION |
Access to Music Limited is a |
The principal activity of the company is to provide a range of state funded education and vocational training, mainly in the subject areas of music and related creative industries. |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
The financial statements are prepared in sterling, which is the functional currency of the entity. |
FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS |
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Project Alpha Topco Limited which can be obtained from 6 Warwick Street, London, United Kingdom, W1B 5LX. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: |
(a) No cash flow statement has been presented for the company. |
SIGNIFICANT JUDGEMENTS AND ESTIMATES |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: |
As described in the accounting policies of the financial statements, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account actual asset lives and residual values as evidence by disposals during current and prior accounting periods. |
REVENUE RECOGNITION |
Turnover represents income receivable for services provided in the period, exclusive of Value Added Tax and trade discounts. Turnover is recognised in the academic year to which it relates. |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2022 |
2. | ACCOUNTING POLICIES - continued |
TANGIBLE FIXED ASSETS |
Leasehold property | - |
Instruments | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
Impairment of fixed assets |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. |
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units. |
INVESTMENTS IN SUBSIDIARIES |
Investments in subsidiary undertakings are recognised at cost. |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2022 |
2. | ACCOUNTING POLICIES - continued |
FINANCIAL INSTRUMENTS |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
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 entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2022 |
2. | ACCOUNTING POLICIES - continued |
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 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. |
RESEARCH AND DEVELOPMENT |
Research expenditure is written off in the period in which it is incurred. |
DEFINED CONTRIBUTION PLANS |
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. |
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises. |
EMPLOYEE BENEFITS |
The company provides a range of benefits to employees. |
Short term benefits, including holiday pay, are recognised as an expense in the profit and loss account in the period in which they are incurred. |
FINANCE LEASES AND HIRE PURCHASE CONTRACTS |
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
OPERATING LEASES |
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2022 |
3. | TURNOVER |
The turnover and loss (2021 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.7.22 | 31.7.21 |
£ | £ |
An analysis of turnover by geographical market is given below: |
31.7.22 | 31.7.21 |
£ | £ |
United Kingdom |
4. | EMPLOYEES AND DIRECTORS |
31.7.22 | 31.7.21 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.7.22 | 31.7.21 |
Total number of staff |
The directors' aggregate remuneration in respect of qualifying services was: |
31.7.22 | 31.7.21 |
£ | £ |
Directors' remuneration | 361,543 | 453,161 |
Company contributions to defined contribution pension plans | 8,184 | 17,163 |
369,727 | 470,324 |
The number of directors who accrued benefits under company pension plans was as follows: |
31.7.22 | 31.7.21 |
Defined contribution plans | 2 | 5 |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2022 |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2021 - operating profit) is stated after charging/(crediting): |
31.7.22 | 31.7.21 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
6. | AUDITORS' REMUNERATION |
31.7.22 | 31.7.21 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
25,914 |
28,898 |
Auditors' remuneration for non audit work |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.7.22 | 31.7.21 |
£ | £ |
Other interest payable and |
similar charges |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
31.7.22 | 31.7.21 |
£ | £ |
Current tax: |
UK corporation tax |
Overprovision of corporation |
tax in prior periods | (58,092 | ) | (30,676 | ) |
Total current tax | ( |
) |
Deferred tax | ( |
) |
Tax on (loss)/profit | ( |
) |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2022 |
8. | TAXATION - continued |
RECONCILIATION OF TOTAL TAX (CREDIT)/CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.7.22 | 31.7.21 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Over/ under provision in the prior year | (58,092 | ) | (30,676 | ) |
Group relief | - | (88,761 | ) |
Unrelieved tax losses carried forward | 208,901 | - |
Adjustments relating to future changes in tax rates | (44,718 | ) | - |
Total tax (credit)/charge | (102,810 | ) | 282,541 |
9. | DIVIDENDS |
31.7.22 | 31.7.21 |
£ | £ |
Ordinary shares of £1 each |
Equity dividends paid |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Leasehold | and | Motor |
property | Instruments | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 August 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 July 2022 |
DEPRECIATION |
At 1 August 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 July 2022 |
NET BOOK VALUE |
At 31 July 2022 |
At 31 July 2021 |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2022 |
10. | TANGIBLE FIXED ASSETS - continued |
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements: |
31.7.22 | 31.7.21 |
£ | £ |
Motor vehicles | 39,463 | 69,647 |
39,463 | 69,647 |
11. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 August 2021 |
and 31 July 2022 |
NET BOOK VALUE |
At 31 July 2022 |
At 31 July 2021 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: 26 Hulme Street, Manchester, M1 5BW |
Nature of business: |
% |
Class of shares: | holding |
12. | DEBTORS |
31.7.22 | 31.7.21 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
S455 tax recoverable | 25,763 | 429,715 |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Aggregate amounts |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2022 |
12. | DEBTORS - continued |
Amounts owed by group undertakings within one year are unsecured, interest free and are repayable on demand. |
The company charges 6% interest per annum on the amounts due from group undertakings after more than one year. The loan is unsecured. |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.7.22 | 31.7.21 |
£ | £ |
Hire purchase contracts (see note 15) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 34,399 | 31,012 |
Other creditors |
Accruals and deferred income |
Amounts owed to group undertakings are unsecured, interest free and are repayable on demand. |
There is a charge in favour of Santander UK PLC as Security Trustee dated 28 June 2022 giving a fixed and floating charge over all the assets of the company. |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.7.22 | 31.7.21 |
£ | £ |
Accruals and deferred income |
Deferred income relates to a government grant that is being recognised over 30 years. |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.7.22 | 31.7.21 |
£ | £ |
Gross obligations repayable: |
Within one year |
Finance charges repayable: |
Within one year |
Net obligations repayable: |
Within one year |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2022 |
15. | LEASING AGREEMENTS - continued |
Non-cancellable | operating leases |
31.7.22 | 31.7.21 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
16. | PROVISIONS FOR LIABILITIES |
31.7.22 | 31.7.21 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Tax losses carried forward | ( |
) |
394,458 | 439,176 |
Deferred |
tax |
£ |
Balance at 1 August 2021 |
Provided during year | ( |
) |
Balance at 31 July 2022 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.7.22 | 31.7.21 |
value: | £ | £ |
Ordinary | £1 | 2 | 2 |
18. | RESERVES |
Retained earnings - This reserve records retained earnings and accumulated losses. |
ACCESS TO MUSIC LIMITED (REGISTERED NUMBER: 02749258) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2022 |
19. | RELATED PARTY DISCLOSURES |
Details of the transactions between fellow group companies have not been disclosed in line with paragraph 33.1A of FRS102. |
During the year, transactions took place with the following related parties: |
i) DSR Investments Pension Scheme, a connected party |
The two parties are connected because A Armstrong who acted as, a company director during the year is a trustee of the pension scheme. |
During the year, the company was charged rent of £73,125 by the pension scheme on an arms length basis. There was no balance due to the connected party at the start or end of the year. |
ii) Armstrong Learning SSAS, a connected company |
The two parties are connected because A Armstrong who acted as, a company director during the year, is a trustee of the pension scheme. |
During the year the company was charged rent of £18,500 by the pension scheme on an arms length basis, and paid £18,500. There was no balance due to the connected party at the end of the year. |
20. | EVENTS AFTER THE END OF THE REPORTING PERIOD |
There were no material events up to the date of approval of the financial statements by the Board. |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate parent company is Project Alpha Topco Limited, a company incorporated in England and Wales. Project Alpha Topco Limited is the only group company that prepares consolidated financial statements, including the accounts of the company, which are available from Stone House, 55 Stone Road Business Park, Stoke-On-Trent, Staffordshire, United Kingdom, ST4 6SR. |
The ultimate controlling party is Mr M Salter. |