Company Registration No. 07452621 (England and Wales)
DOWNTOWN MUSIC UK LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
PAGES FOR FILING WITH REGISTRAR
DOWNTOWN MUSIC UK LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
DOWNTOWN MUSIC UK LTD
BALANCE SHEET
AS AT
31 DECEMBER 2017
31 December 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Intangible assets
194,381
213,923
Tangible assets
4
6,189
7,596
200,570
221,519
Current assets
Debtors
5
1,744,039
1,113,144
Cash at bank and in hand
1,690,811
713,268
3,434,850
1,826,412
Creditors: amounts falling due within one year
6
(4,791,453)
(2,192,210)
Net current liabilities
(1,356,603)
(365,798)
Total assets less current liabilities
(1,156,033)
(144,279)
Capital and reserves
Called up share capital
7
514
514
Share premium account
894,148
894,148
Profit and loss reserves
(2,050,695)
(1,038,941)
Total equity
(1,156,033)
(144,279)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
DOWNTOWN MUSIC UK LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2017
31 December 2017
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 26 September 2018 and are signed on its behalf by:
Mr R Neri
Director
Company Registration No. 07452621
DOWNTOWN MUSIC UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
- 3 -
1
Accounting policies
Company information
Downtown Music UK Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
5 King Street, Covent Garden, London, UK, WC2E 8HN.
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
Turnover
Turnover represents amounts
derived from mechanicals, synchronisations and performances,
net of VAT.
1.3
Intangible fixed assets other than goodwill
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 cost or value of the asset can be measured reliably.
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:
Copyrights
Over 15 years - straight line
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation 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:
Fixtures, fittings & equipment
25% straight line
Computer equipment
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Cash
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
DOWNTOWN MUSIC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 4 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments’ 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 and 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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
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. A
m
ounts 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.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
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 are included in the profit and loss account for the period.
DOWNTOWN MUSIC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 5 -
1.11
The acquisition costs of audio and visual copyrights and catalogues which are owned in perpetuity are capitalised as intangible fixed assets and amortised by equal instalments over their estimated useful economic life, not exceeding 15 years.
When, in the view of the directors, the revenue profile profile of an acquisition is not spread evenly over the asset's life the amortisation may be increased accordingly in the first few years to match the revenue recognised.
Revenue forecasts are prepared and reviewed annually in order to assess the carrying value of intangible fixed assets. Provisions are made where the review indicates that the carrying value may not be recoverable from future revenues.
1.12
Publishing advances are recoupable from royalties arising in accordance with the terms specified in individual contracts and licence agreements. Un-recouped publishing advances will be reviewed on a regular basis to assess their recoverability. Where the directors anticipate that royalties from future revenue will be insufficient to fully recoup a publishing advance, provision will be made to write down the carrying value of the advance to its estimated net recoupable amount.
1.13
The financial statements have been prepared on a going concern basis, Downtown Music Publishing LLC have confirmed its intention to continue to provide financial and other support to the extent necessary to enable the company to continue to pay its liabilities as and when they become due for a period not less than one year from the date of approval of these financial statements. Having regard to this intention, the directors believe it is appropriate to prepare these financial statements on a going concern basis.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 9 (2016 - 6).
3
Intangible fixed assets
Other
£
Cost
At 1 January 2017 and 31 December 2017
294,639
Amortisation and impairment
At 1 January 2017
80,715
Amortisation charged for the year
19,543
At 31 December 2017
100,258
Carrying amount
At 31 December 2017
194,381
At 31 December 2016
213,923
DOWNTOWN MUSIC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2017
70,232
Additions
6,700
At 31 December 2017
76,932
Depreciation and impairment
At 1 January 2017
62,635
Depreciation charged in the year
8,108
At 31 December 2017
70,743
Carrying amount
At 31 December 2017
6,189
At 31 December 2016
7,596
5
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
83,558
9,250
Other debtors
1,660,481
1,103,894
1,744,039
1,113,144
6
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
90
91
Trade creditors
29,112
25,165
Other taxation and social security
206,133
39,269
Other creditors
4,556,118
2,127,685
4,791,453
2,192,210
DOWNTOWN MUSIC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 7 -
7
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
462,878 ordinary shares of 0.1p each
463
463
51,431 ordinary B shares of 0.1p each
51
51
514
514
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2017
2016
£
£
169,875
234,889