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Financial Statements for the Year Ended 31 December 2018 |
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Defected Records Limited |
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REGISTERED NUMBER:
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Financial Statements for the Year Ended 31 December 2018 |
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for |
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Defected Records Limited |
Defected Records Limited (Registered number: 03643252) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2018 |
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Page |
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Company Information | 1 |
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Chairman's Report | 2 |
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Balance Sheet | 4 |
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Notes to the Financial Statements | 6 |
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Defected Records Limited |
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Company Information |
for the Year Ended 31 December 2018 |
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DIRECTOR: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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55 Kentish Town Road |
Camden Town |
London |
NW1 8NX |
Defected Records Limited (Registered number: 03643252) |
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Chairman's Report |
for the Year Ended 31 December 2018 |
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2018 saw significant growth of 300%+ of EBIT while growing the top line sales by over 60% to £8.3m. The board are |
confident on continued growth in 2019 due to the strong year underpinned by 20 years of owning our own catalogue and |
putting on acclaimed parties worldwide. |
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Our long-term strategy was extended and redefined in 2017 with continued focus on growing our hyper-engaged community |
across the next 3-5 years (through to 2020 / 2022). We have since doubled the size of our Community from 1.5 million to 3 |
million (since September 2017); 100% growth, with a clear focus on expansion across 6 key areas of the business as outlined |
below: |
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- Music |
- Channels & Partnerships |
- Content |
- Radio |
- Tech Road Map |
- Events |
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Since September 2017, these strategic areas have been integrated into the day-to-day running of the Company, with many |
areas now becoming Business As Usual. |
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We now have: |
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- Easy access to over 10,000+ recordings and 3,500+ published fully controlled titles across a range of record |
labels |
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- 3,200,000 followers across all platforms & growing |
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- 20,000,000+ fans engage with our content online every week |
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- Global presence with 120+ events across 20+ markets with over 400,000 yearly annual attendees, hosting |
events in London, Ibiza, Croatia, Australia, USA, Dubai & beyond |
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- Defected Radio receives 1,000,000+ downloads per show reaching 20m fans Worldwide, weekly. |
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- Access to the biggest hard to reach influencer audiences (18-45) |
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- On target for over 1 billion music streams across owned-catalogue in 2019. |
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Looking forward: |
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- We have renewed deals with ADA (WMG - distribution), BMG (publishing) and with Hi, Ibiza (for Glitterbox). |
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- Publishing is our focus on signing and owning cataloguing and exploiting it via all of what we do as a business. |
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- 2019 will see us break 4.5 million community by the year end |
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- Continued focus on supporting MIND as our charity of the year this year. Team involved in many fund raising |
events. |
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- Defected Croatia 2019 will again bring in Yoga and Meditation to our festival |
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Now in its twentieth year, Defected has shown it is possible to evolve with a changing market and succeed. We have adapted |
and flourished during transitional periods, overcoming challenges with innovative and diverse strategies. |
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Defected Records Limited (Registered number: 03643252) |
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Chairman's Report |
for the Year Ended 31 December 2018 |
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I’m proud of all the team for all the efforts in. We are in great shape. We have three strong brands Defected, Glitterbox and |
Classic under the Defected Group of Companies providing a broad range of music to our rapidly growing and engaging |
community. |
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Finally I’d like to say a personal mention and thank you to Wez Saunders who’s stepped up as Managing Director in 2017 |
and led the team with great desire, passion and ambition. |
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I look forward to updating you in 2020 with our continued progress. |
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Simon Dunmore |
Chairman |
Defected Records Limited (Registered number: 03643252) |
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Balance Sheet |
31 December 2018 |
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31.12.18 | 31.12.17 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Stocks |
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Debtors | 5 |
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Investments | 6 |
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Prepayments and accrued income |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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The director acknowledges his responsibilities for: |
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ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act
2006 and |
(b) |
preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of
each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
Defected Records Limited (Registered number: 03643252) |
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Balance Sheet - continued |
31 December 2018 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the director on
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Defected Records Limited (Registered number: 03643252) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2018 |
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1. | STATUTORY INFORMATION |
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Defected Records Limited is a
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registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, |
value added tax and other sales taxes. |
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Tangible fixed assets |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow |
moving items. |
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Taxation |
Taxation for the year 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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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 balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance |
sheet date. |
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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. |
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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. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension |
scheme are charged to profit or loss in the period to which they relate. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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Defected Records Limited (Registered number: 03643252) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
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COST |
At 1 January 2018 |
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Additions |
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At 31 December 2018 |
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DEPRECIATION |
At 1 January 2018 |
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Charge for year |
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At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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At 31 December 2017 |
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5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.18 | 31.12.17 |
£ | £ |
Trade debtors |
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Other debtors |
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6. | CURRENT ASSET INVESTMENTS |
31.12.18 | 31.12.17 |
£ | £ |
Unlisted investments | - | 10,000 |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.18 | 31.12.17 |
£ | £ |
Trade creditors |
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Taxation and social security |
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Other creditors |
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Defected Records Limited (Registered number: 03643252) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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8. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
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The following advances and credits to a director subsisted during the years ended 31 December 2018 and |
31 December 2017: |
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31.12.18 | 31.12.17 |
£ | £ |
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Balance outstanding at start of year |
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Amounts advanced |
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Amounts repaid |
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Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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The funds borrowed in the year were repaid within 9 months of the year end. |
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During the year Mr Dunmore, the director of the company was paid, in addition to his salary from the company. fees |
on a self employed basis in respect of services as a record producer to the company in the amount of £59,000 (2017 : |
£73,200). Mr Dunmore also recharged costs in respect of providing accommodation for staff and artistes in the |
amount of £0 (2017 : £43,333) |
Defected Records Limited (Registered number: 03643252) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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9. | RELATED PARTY DISCLOSURES |
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At the end of the year S Dunmore, a director of Defected Records Limited owned 100% (2016 : 100%) of the issued |
ordinary share capital of the company. He has the following interests: |
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Defected Music Limited |
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S Dunmore is also a director of Defected Music Limited and owned 100% (2017 : 100%) of the issued ordinary |
share capital of the company at 31 December 2018. |
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During the year Defected Records Limited recharged Defected Music Limited £80,970 in respect of central overhead |
(2017 : £1,547) and £0 (2017 : £0) in respect of brand usage. |
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As at 31 December 2017 the amount due from Defected Records Limited to Limited Defected Music Limited was |
£1,818 (2017 : debtor of £122,990). |
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ITH Limited |
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S Dunmore is also a director of ITH Ltd and owned 100% of the issued ordinary share capital of the company at 31 |
December 2018 (2017 : 100%) |
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During the year Defected Records Limited recharged a share of salaries and overheads in the amount of £462,646 |
(2017 : £443,142) to ITH Limited. |
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As at 31 December 2018 the amount due from ITH Ltd to Defected Records Limited was £1,185,512 (2017 :£ |
746,042). |
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Colluded Management Limited |
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S Dunmore is also a director of Colluded Management Limited and owned 80% of the issued ordinary share capital |
of the company at 31 December 2018 (2017 : 40%). |
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During the year Defected Records recharged Colluded Management Limited the amount of £30,588 (2017 : £15,519) |
in respect of overheads and £18,675 (2017 :£ 0 ) in respect of profit share. |
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As at 31 December 2018 the amount due from Colluded Management Limited to Defected Records Limited was |
£4,744 ( 2017 : £36,952). |
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Colluded Management Limited ceased trading on 31 December 2018. |
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ITH Festivals Limited |
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S Dunmore is also a director of ITH Festivals Limited and owned 100% of the issued ordinary share capital of the |
company at 31 December 2018 (2017 : 100%). |
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During the year Defected Records recharged ITH Festivals Limited the amount of £95,352 (2017 : £48,230) in |
respect of overhead. |
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As at 31 December 2018 the amount due from Defected Records Limited to ITH Festivals Limited was £76,623 |
(2016 : debtor of £73,113) |
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Defected Records Limited (Registered number: 03643252) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
Defected London FSTVL 2019 Ltd (previously ITH Events Limited) |
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S Dunmore is also a director of Defected London FSTVL 2019 Ltd and owned 100% of the issued ordinary share |
capital of the company at 31 December 2018 (2017 : 100%). |
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During the year Defected Records recharged Defected London FSTVL 2019 Ltd the amount of £0 (2017 : £0) in |
respect of overheads. |
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As at 31 December 2017 the amount due from Defected London FSTVL 2019 Ltd to Defected Records Limited was |
£1,492 ( 2017 : £336) |
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Mrs Y Dunmore |
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During the year Mrs Y Dunmore, the director's wife received consultancy fees for merchandise services from the |
company in the amount of £42,000 (2017 : £42,000.) |