Angel Of Music Limited
Financial Statements
For the year ended 30 June 2023
Pages for Filing with Registrar
Company Registration No. 11494252 (England and Wales)
Angel of Music Limited
Angel Of Music Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 7
Angel Of Music Limited
Balance Sheet
As at 30 June 2023
Page 1
2023
2022
Notes
$
$
$
$
Fixed assets
Intangible assets
4
828,892
904,246
Current assets
Debtors
5
37,974
65,503
Cash at bank and in hand
5,579,673
4,873,423
5,617,647
4,938,926
Creditors: amounts falling due within one year
6
(7,986,479)
(3,667,102)
Net current (liabilities)/assets
(2,368,832)
1,271,824
Total assets less current liabilities
(1,539,940)
2,176,070
Creditors: amounts falling due after more than one year
7
(4,933,685)
Net liabilities
(1,539,940)
(2,757,615)
Capital and reserves
Called up share capital
8
3
3
Profit and loss reserves
(1,539,943)
(2,757,618)
Total equity
(1,539,940)
(2,757,615)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 February 2024 and are signed on its behalf by:
L I Chapman
Director
Company Registration No. 11494252
Angel Of Music Limited
Notes to the Financial Statements
For the year ended 30 June 2023
Page 2
1
Accounting policies
Company information
Angel of Music Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6 Catherine Street, London, United Kingdom, WC2B 5JY.
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 financial statements are prepared in US Dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest dollar.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of not less than twelve months from the date of approval of these financial statements.true
The company’s cash flow is supported by loans of $4,933,689 (2022: $4,933,689). These loans are repayable only out of net profits of theatrical productions and until such time as relevant profits are available no repayments fall due. The structure of the loans is therefore such that repayments can never prevent the company from meeting its other debts as they fall due and repayments cannot fall due if the company has insufficient funds to make such repayment.
Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from theatrical productions is recognised by reference to the performance date.
1.4
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 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.
Angel Of Music Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 3
The company capitalises pre-production development costs incurred subsequent to the green-lighting of a new production to the extent that the directors have a reasonable belief that the production will recoup. Costs capitalised exclude marketing and promotional expenditure incurred in relation to the production. All relevant development expenditure is capitalised within intangible assets as pre-production costs and the company does not distinguish between the cost of physical assets, such as the set, and the development of broader aspects of the show, as the distinction is not useful and the expenditure is considered as a whole.
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:
Capitalised Pre-Production Costs
Over the life of the production *
* The amortisation period commences from the date of opening of the production. The estimated life of the production is under continual re-assessment, with the impact of any changes to the estimated life of the amortisation period being accounted for prospectively.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents 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.
1.7
Financial instruments
The company has only basic financial instruments measured at amortised cost, with no financial instruments classified as other, or basic financial instruments measured at fair value.
Angel Of Music Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 4
1.8
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.
1.9
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.
1.10
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 in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Capitalised pre-production costs
Pre-production costs have been capitalised as an intangible fixed asset and amortised over the estimated life of the production. In assessing whether those pre-production costs will provide future economic benefit, the directors assess the likely profitability of the company through the preparation and review of forecasts.
Angel Of Music Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 5
3
Employees
The average monthly number of persons employed by the company during the year was:
2023
2022
Number
Number
Total
8
4
Intangible fixed assets
Capitalised Pre-Production Costs
$
Cost
At 1 July 2022 and 30 June 2023
6,387,569
Amortisation and impairment
At 1 July 2022
5,483,323
Amortisation charged for the year
75,354
At 30 June 2023
5,558,677
Carrying amount
At 30 June 2023
828,892
At 30 June 2022
904,246
5
Debtors
2023
2022
Amounts falling due within one year:
$
$
Other debtors
33,144
314
Prepayments and accrued income
4,830
65,189
37,974
65,503
Angel Of Music Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 6
6
Creditors: amounts falling due within one year
2023
2022
$
$
Trade creditors
258,980
279,500
Amounts owed to group undertakings
123,591
Other creditors
4,933,685
-
Accruals and deferred income
2,670,223
3,387,602
7,986,479
3,667,102
The amounts disclosed within other creditors are investment loans repayable only out of net profits of theatrical productions and at the reasonable discretion of the company taking into account its working capital requirements.
7
Creditors: amounts falling due after more than one year
2023
2022
$
$
Other creditors
-
4,933,685
8
Called up share capital
2023
2022
$
$
Ordinary share capital
Issued and fully paid
2 Ordinary Shares of £1 each
3
3
On incorporation the company issued 2 Ordinary Shares of £1 each. This translates as $3 in the company's reporting currency.
9
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 auditor's report was unqualified.
Senior Statutory Auditor:
Mark Twum-Ampofo
Statutory Auditor:
Moore Kingston Smith LLP
Angel Of Music Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 7
10
Parent company
The immediate parent company is The Really Useful Group Limited, a company incorporated in England and Wales.
The ultimate parent company and the parent company of the smallest and largest group for which group accounts are prepared and of which the company is a member is Really Useful Group Investments Limited, a company incorporated in England and Wales. Its registered address is 6 Catherine Street, London, WC2B 5JY. A copy of the group accounts of Really Useful Group Investments Limited may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
The ultimate controlling party is Lord Lloyd Webber, who is the owner of the ultimate parent company.