Company registration number 04753329 (England and Wales)
FARRELL MUSIC LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
FARRELL MUSIC LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
FARRELL MUSIC LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
16,674
22,232
Current assets
Debtors
6
3,362,446
2,584,852
Cash at bank and in hand
2,388,204
3,896,517
5,750,650
6,481,369
Creditors: amounts falling due within one year
7
(1,341,957)
(1,470,339)
Net current assets
4,408,693
5,011,030
Total assets less current liabilities
4,425,367
5,033,262
Creditors: amounts falling due after more than one year
8
(2,080,398)
(2,700,000)
Net assets
2,344,969
2,333,262
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
2,344,967
2,333,260
Total equity
2,344,969
2,333,262
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 2022 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.
The member has 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.
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
M Loney
Director
Company Registration No. 04753329
FARRELL MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Farrell Music Limited is a private company limited by shares incorporated in England and Wales. The registered office is 180 Great Portland Street, London, W1W 5QZ.
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 amounts 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 receivable in respect of music recording and publishing services net of Value Added Tax.
1.3
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% wdv
1.4
Cash at bank and in hand
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.
1.5
Financial instruments
The company only has basic financial instruments. 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. Basic financial liabilities including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
FARRELL MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.7
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.
1.8
Fixed asset investments
Fixed asset investments are stated at cost less provision for diminution in value. To note, there is no investment cost associated with subsdiary entity Mullholland Music LLC.
1.9
Bank borrowings
Interest-bearing bank loans are recorded at the proceeds received. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in the profit and loss account using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
3
3
3
Intangible fixed assets
Other
£
Cost
At 1 January 2022 and 31 December 2022
10,000,000
Amortisation and impairment
At 1 January 2022 and 31 December 2022
10,000,000
Carrying amount
At 31 December 2022
At 31 December 2021
FARRELL MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2022 and 31 December 2022
120,154
Depreciation and impairment
At 1 January 2022
97,922
Depreciation charged in the year
5,558
At 31 December 2022
103,480
Carrying amount
At 31 December 2022
16,674
At 31 December 2021
22,232
5
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Mulholland Music LLC
USA
Ordinary
100.00
During the year the subsidiary, Mulholland Music LLC ceased to trade. An amount owed to Farrell Music Ltd of £604,119 ($887,488) was written off as a bad debt.
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
122,949
17,493
Corporation tax recoverable
3,049
Amounts owed by group undertakings
62,348
607,612
Other debtors
3,177,149
1,956,698
3,362,446
2,584,852
FARRELL MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
600,000
300,000
Trade creditors
40,822
69,004
Amounts owed to group undertakings
623,770
Corporation tax
89,526
153,065
Other taxation and social security
7,640
Other creditors
611,609
316,860
1,341,957
1,470,339
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
2,080,398
2,700,000