Company Registration No. 05560564 (England and Wales)
Spirit Music Publishing Limited
Annual report and financial statements
For the year ended 31 December 2021
Pages for filing with registrar
SPIRIT MUSIC PUBLISHING LIMITED
Spirit Music Publishing Limited
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
SPIRIT MUSIC PUBLISHING LIMITED
Spirit Music Publishing Limited
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Current assets
Debtors
3
1,072,154
5,968,841
Cash at bank and in hand
69,958
93,953
1,142,112
6,062,794
Creditors: amounts falling due within one year
4
(644,116)
(7,703,354)
Net current assets/(liabilities)
497,996
(1,640,560)
Capital and reserves
Called up share capital
5
1,000
1,000
Equity reserve
2,306,717
Profit and loss reserves
(1,809,721)
(1,641,560)
Total equity
497,996
(1,640,560)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime
and in accordance with the provisions of FRS102 Section 1A - Small Entities.
The financial statements were approved by the board of directors and authorised for issue on 21 December 2022 and are signed on its behalf by:
L Padron
Director
Company Registration No. 05560564
SPIRIT MUSIC PUBLISHING LIMITED
Spirit Music Publishing Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
Spirit Music Publishing Limited is a
private
company
limited by shares and is
registered in England and Wales.
The address of its registered office is 55 Loudoun Road, St. John's Wood, London, NW8 0DL and the address of its principal place of business
during the year was 46A Great Marlborough Street, London, W1F 7JW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
As the directors' intention is to distribute profits to the shareholder and then liquidate the company they have prepared the financial statements on a basis other than going concern.
true
This has not had any impact on the carrying value of the company’s assets or liabilities.
The company will retain sufficient cash to meet its ongoing administrative and liquidation costs.
1.3
Turnover
Turnover represents royalty income and is included on a receivable basis.
1.4
Cash at bank and in hand
Cash and cash equivalents
represent
cash
held at bank.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors,
cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
SPIRIT MUSIC PUBLISHING LIMITED
Spirit Music Publishing Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
and
loans from
fellow group companies
,
are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
SPIRIT MUSIC PUBLISHING LIMITED
Spirit Music Publishing Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
1.9
Advances to artists, presented within debtors on the balance sheet, represent advances made direct to artists and other costs incurred on behalf of artists under contract. These advances, which are only recoverable against future royalties, are charged to the profit and loss account as they are recouped or where the probability of future recoupment in respect thereof is unlikely.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 2
(2020: 2).
3
Debtors
2021
2020
Amounts falling due within one year:
£
£
Amounts due from parent and fellow group undertakings
914,107
5,654,295
Other debtors
158,047
314,546
1,072,154
5,968,841
Amounts due from
parent and fellow
group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand
.
4
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
7,109
7,123
Amounts due to parent and fellow group undertakings
350,672
7,524,843
Other taxation and social security
154,975
Other creditors
286,335
16,413
644,116
7,703,354
Amounts due to
parent and fellow
group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
The reduction in the year of '
A
mounts due to parent and fellow group undertakings' was the result of a capital contribution made by the parent which was subsequently used to part repay these balances.
SPIRIT MUSIC PUBLISHING LIMITED
Spirit Music Publishing Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
5
Called up share capital
2021
2020
£
£
Ordinary share capital
Issued and not fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
1,000
1,000
There is a single class of ordinary share. There are no restrictions on the distribution of dividends and the repayment of capital.
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The audit report provided to the members of Spirit Music Publishing Limited on the financial statements for the year ended 31 December 2021 was not qualified.
The audit report was signed by Richard Gilbert (Senior Statutory Auditor) on behalf of SRLV Audit Limited, Chartered Accountants and Statutory Auditor.
7
Contingent liabilities
The company has a deposit agreement under which there is a charge for all monies due under a lease agreement entitled by LCH Properties Limited for £8,970 (2020: £8,970).
8
Related party transactions
The company has taken advantage of the exemption available in accordance with FRS102 Section 1A paragraph
1AC.35 not to disclose transactions entered into between two or more members of a group, as the company and the
other subsidiaries are wholly owned subsidiary undertakings of the group to which they are party to the
transactions.
The parent of the smallest group for which group accounts are drawn up, of which the company is a member, is
Spirit Music Group, Inc
., whose registered office is
9 East Loockerman Street, Dover, Delaware, 19901, USA
.