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Registered number: 02703274










FABER MUSIC LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
FABER MUSIC LIMITED
 
 
COMPANY INFORMATION


Directors
R M King 
T W Faber 
S Wigglesworth (appointed 9 November 2022)
J R Little 
R P Paine 
H J Griffin 
S E Holcroft 
L H Rutherford 




Registered number
02703274



Registered office
12 Roger Street
London

England

WC1N 2JU




Independent auditors
MHA
Chartered Accountants & Statutory Auditors

6th Floor

2 London Wall Place

London

EC2Y 5UA





 
FABER MUSIC LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10 - 11
Statement of changes in equity
12 - 13
Notes to the financial statements
14 - 37


 
FABER MUSIC LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

PRINCIPAL ACTIVITY
 
The principal activity of the company in the year under review was that of the print and digital publication and distribution of music books, together with the use and management of musical copyrights.

BUSINESS REVIEW
 
During the year the company continued its core operations on an uninterrupted basis and in profit, and made steady recovery in the period following the Coronavirus pandemic.
Income streams in print publishing remained slightly below pre-pandemic levels, but growth was seen in rights management income and digital sales.  Continued careful cost control helped produce satisfactory levels of profit.
During the year, preparation for and testing of the production, sales and warehouse functions of our new IT system continued.
Careful consideration has been given by the directors to industry trends and to expansion opportunities, and the company's rolling strategic plan and related investments, including technology, remain aligned accordingly.  Investment in people has continued. The company’s sales into the European Union are assisted by its German subsidiary Faber Music GmbH.  The company’s directors are involved closely in music publishing and rights industry bodies, contributing to policy and maintaining dialogue with relevant parties.
The success of the financial year means the company remains well-placed, operationally and financially, to cope with the post-pandemic period and other economic challenges, including inflation, with the full ongoing support of its shareholder.  The board continues to look forward with optimism, particularly in view of the long-term nature of the company’s core print and rights assets.
In March 2023 the company completed its move to new office premises in Central London, on a long-term lease. The new office offers a modern and flexible working environment and entertaining space, is well-suited to collaborative working, and is energy-efficient.  Our London-based staff have responded very favourably to the move.
Subsequent to the year-end the company acquired an international print publishing business, a print publishing licence, a publishing rights business, and a music management agency.  The aggregate cost of these acquisitions, including stocks of books and other physical assets acquired, and reorganisation and transaction costs, was £6.9m.  This activity was funded through existing cash resources of the parent company Geoffrey Faber Holdings Limited.
Due to the nature of the music publishing and rights industry, the directors are of the opinion that it would be commercially detrimental to the company to disclose the details of the individual transactions at this time.
 

Page 1

 
FABER MUSIC LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

PRINCIPAL RISKS AND UNCERTANTIES
 
The company is managed by its executive directors on a daily basis. The directors meet formally as a Board each quarter, chaired by the Chairman of the Group. The company is well placed to manage its business risks.
Markets
The markets in which the company operates are relatively mature and consequently stable, but with strong competition for rights and services agreements. This gives rise to risks of losing business as well as erosion of margins. The company manages these risks by providing a good quality service to its composers, clients and customers, by the creation of new products and services, and by constant monitoring of operating margins and other financial measures.  The directors continue to seek opportunities in print and distribution markets.
Exchange rates
The company sources some of its product in foreign currency and is also paid by some customers in foreign currency. By operating euro and $US bank accounts, the company reduces its exposure to foreign exchange fluctuations. Treasury staff monitor balances and exchange rates daily.  Exchange hedging opportunities are evaluated on a periodic basis.
Credit risk
The company's principal financial assets are trade receivables, stock and cash balances. Credit risk is primarily attributable to these. The amounts presented in the balance sheet are net of allowances for doubtful debtors and older stock. The company has a satisfactory concentration of credit risk, with exposure spread over a large number of customers and stock lines.
Cash flow and liquidity risk
The company has a large throughput of cash as it acts as agent for its distribution and composer clients. Cash flow is forecast weekly and is monitored daily. Credit control is fully staffed and well controlled.  Creditors are paid to term unless in exceptional circumstances. Bank facilities in place are sufficient to meet expected liquidity requirements. The parent company Geoffrey Faber Holdings Limited provides a flexible facility allowing the company to meet short-term cash requirements. This facility is used on an occasional basis.

GOING CONCERN
 
The Directors have considered the use of the going concern basis in preparation of the financial statements and have concluded that it is appropriate. Further details regarding the adoption of the going concern basis can be found in note 2.2.

 



This report was approved by the board on 12 April 2024 and signed on its behalf.



................................................
R M King
Director

Page 2

 
FABER MUSIC LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £161,118 (2022 - £229,832).

No dividend will be distributed for the year ended 31 March 2023.

Directors

The directors who served during the year were:

R M King 
T W Faber 
S Wigglesworth (appointed 9 November 2022)
J R Little 
R P Paine 
H J Griffin 
S E Holcroft 
L H Rutherford 

Future developments

The Company continues to seek ways to develop its range of products and services.  This includes development in software enabling the Company and its chosen industry partners to reach consumers online more effectively, and investment in young composers and performing artists.

Page 3

 
FABER MUSIC LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Research and development activities

In the year, in addition to ongoing systems and digital development, the company continued to extend its expertise in one-off 'special' publications.
As part of its ongoing commitment to diversity issues, the company has continued its partnership with the charity Sound and Music to fund training for ten young aspiring composers per year.

Qualifying third party indemnity provisions

The Company has purchased and maintains insurance to cover its directors against liabilities in relation to their duties to the Company.

Matters covered in the Strategic Report

In accordance with section 414C(11) of the Companies Act 2006, the Company has chosen to include information relating to principal risks and uncertainties in the Strategic Report.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006MHA will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
R M King
Director

Date: 12 April 2024

Page 4

 
FABER MUSIC LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FABER MUSIC LIMITED
 

Opinion


We have audited the financial statements of Faber Music Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 March 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
FABER MUSIC LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FABER MUSIC LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
FABER MUSIC LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FABER MUSIC LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
Enquiry of management and those charged with governance around actual and potential litigation and claims; 
Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Reviewing minutes of meetings of those charged with governance and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.


Page 7

 
FABER MUSIC LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FABER MUSIC LIMITED (CONTINUED)





John Coverdale Bsc FCA (Senior statutory auditor)
  
for and on behalf of
MHA
 
Chartered Accountants
Statutory Auditors
  
6th Floor
2 London Wall Place
London
EC2Y 5UA

12 April 2024
Page 8

 
FABER MUSIC LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
3,410,070
3,530,835

Cost of sales
  
(898,579)
(1,001,032)

Gross profit
  
2,511,491
2,529,803

Distribution costs
  
(1,429,459)
(1,522,090)

Administrative expenses
  
(3,031,143)
(2,932,723)

Other operating income
 5 
2,130,452
1,871,743

Operating profit/(loss)
 6 
181,341
(53,267)

Interest payable and similar expenses
 9 
(238,454)
(143,794)

Loss before tax
  
(57,113)
(197,061)

Tax on loss
 10 
(104,005)
(32,771)

Loss for the financial year
  
(161,118)
(229,832)

Other comprehensive income for the year
  

Actuarial gains on defined benefit pension scheme
  
271,950
140,850

Movement of deferred tax relating to pension deficit
  
(59,750)
(38,901)

Other comprehensive income for the year
  
212,200
101,949

Total comprehensive income for the year
  
51,082
(127,883)

The notes on pages 14 to 37 form part of these financial statements.

Page 9

 
FABER MUSIC LIMITED
REGISTERED NUMBER: 02703274

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
2,802,179
3,153,648

Tangible assets
 12 
1,011,264
626,917

Investments
 13 
12,469
12,469

  
3,825,912
3,793,034

Current assets
  

Stocks
 14 
898,672
745,769

Debtors: amounts falling due after more than one year
 15 
344,115
498,399

Debtors: amounts falling due within one year
 15 
3,501,016
3,186,289

Cash at bank and in hand
  
492,449
401,617

  
5,236,252
4,832,074

Creditors: amounts falling due within one year
 16 
(8,638,360)
(8,077,141)

Net current liabilities
  
 
 
(3,402,108)
 
 
(3,245,067)

Total assets less current liabilities
  
423,804
547,967

Creditors: amounts falling due after more than one year
 17 
(1,200,000)
(1,200,000)

Provisions for liabilities
  

Deferred tax
 18 
(240,599)
(76,844)

  
 
 
(240,599)
 
 
(76,844)

Pension liability/asset
  
111,450
(227,550)

Net liabilities
  
(905,345)
(956,427)


Capital and reserves
  

Called up share capital 
 19 
100
100

Profit and loss account
  
(905,445)
(956,527)

  
(905,345)
(956,427)


Page 10

 
FABER MUSIC LIMITED
REGISTERED NUMBER: 02703274
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 April 2024.




................................................
R M King
Director

The notes on pages 14 to 37 form part of these financial statements.

Page 11

 
FABER MUSIC LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 April 2022
100
(956,527)
(956,427)


Comprehensive income for the year

Loss for the year
-
(161,118)
(161,118)

Gain on defined benefit pension scheme
-
212,200
212,200
Total comprehensive income for the year
-
51,082
51,082


At 31 March 2023
100
(905,445)
(905,345)


The notes on pages 14 to 37 form part of these financial statements.

Page 12

 
FABER MUSIC LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 April 2021
100
(828,644)
(828,544)


Comprehensive income for the year

Loss for the year
-
(229,832)
(229,832)

Gain on defined benefit pension scheme
-
101,949
101,949
Total comprehensive income for the year
-
(127,883)
(127,883)


At 31 March 2022
100
(956,527)
(956,427)


The notes on pages 14 to 37 form part of these financial statements.

Page 13

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Faber Music Limited is a private company, limited by shares, incorporated in England and Wales.
The registered office of Faber Music Limited is 12 Roger Street London WC1N 2JU.
The principal place of business of Faber Music Limited is 16 Burnt Mill, Elizabeth Way, Harlow, CM20 2HX.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The financial statements are presented in sterling rounded to the nearest £1.

The following principal accounting policies have been applied:

 
2.2

Going concern

The company made a loss in the year of £161,118 and had net current liabilities of £3,402,108 as at 31 March 2023.
The company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic report and the Directors' report. 
The company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the support provided by the parent company, Geoffrey Faber Holdings Limited.
After making enquiries, the directors have a reasonable expectation that the company and the parent company have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Page 14

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

  
2.3

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.
 
This information is included in the consolidated financial statements of Geoffrey Faber Holdings Limited as at year ended 31 March 2023 and these financial statements may be obtained from 12 Roger Street, London, WC1N 2JU.

 
2.4

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Revenue relates to music publishing services and music distribution services. Revenue is recognised when the service has been completed. 
Royalties and rights income
Royalties and rights income is recognised in the period to which it relates, or if it cannot be reliably estimated, on a receipts basis.

Page 15

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.6

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
Over the term of the lease
Furniture, fittings , fixtures and equipment
-
Straight line over 5 years
Asset under construction
-
Not depreciated until brought into use

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 16

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of financial position 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Page 17

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.11
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

 

Page 18

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.11
Financial instruments (continued)

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 19

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.14

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.15

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.16

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 20

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.17

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Defined benefit pension plan

The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Statement of financial position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

 
2.18

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 21

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.20

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 22

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The key judgements relate to:
(a) the identification of royalty and rights income based upon the substance of underlying contracts and agreements. Royalty and rights income is only recognised when it is capable of being reliably measured.
(b) actuarial assumptions for valuation of the defined benefit pension scheme liability. The actuary has updated its assessment of prevailing financial conditions. The principal actuarial assumptions are set out in note 20. In the absence of significant movements in the membership (the scheme is closed to new members) the membership data is considered suitable for the purpose of the actuarial valuation.
The key source of estimation uncertainty relates to the period over which intangibles are amortised. As set out in Note 11, goodwill is assumed to have a useful economic life of 20 years, based on several factors and in the absence of contradictory evidence. Other intangibles are appraised based on their particular characteristics, in a range from 3 to 20 years' amortisation; even where life of copyright extends far beyond 20 years.  


4.


Turnover

The whole of the turnover is attributable to the company's printed music sales and distribution buisness.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
2,163,140
2,183,148

Rest of the world
1,246,930
1,347,687

3,410,070
3,530,835



5.


Other operating income

2023
2022
£
£

Other operating income
2,079,957
1,813,867

Government grants receivable
-
14,414

Sundry income
50,495
43,462

2,130,452
1,871,743


The government grants related to grants for furlough under the Coronavirus Job Rentention Scheme.
There were no unfulfilled conditions relating to this grant claim.

Page 23

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
85,116
83,222

Amortisation of intangible assets
351,469
351,469

Auditors' remuneration
19,816
16,983

Auditors' remuneration - taxation
4,950
(4,000)

Exchange differences
9,583
(6,431)

Other operating lease rentals
313,394
308,155


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,327,691
2,301,408

Social security costs
213,414
192,785

Cost of defined contribution scheme
141,166
139,311

2,682,271
2,633,504


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production and editorial
11
9



Sales marketing and promotion
12
12



Administration
28
30



Distribution
11
13

62
64

Page 24

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
696,113
603,117

Company contributions to defined contribution pension schemes
32,624
26,603

728,737
629,720


During the year retirement benefits were accruing to 7 directors (2022 - 6) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £175,392  (2022 - £170,742).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL  (2022 - £NIL).


9.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
5,250
9,000

Loans from group undertakings
233,204
134,794

238,454
143,794

Page 25

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
102,101

Adjustments in respect of previous periods
-
(118,676)


-
(16,575)


Total current tax
-
(16,575)

Deferred tax


Origination and reversal of timing differences
104,005
49,346

Total deferred tax
104,005
49,346


Tax on loss
104,005
32,771
Page 26

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(57,113)
(197,061)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(10,851)
(37,442)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,444
10,860

Capital allowances for year in excess of depreciation
(42,393)
(26,280)

Trading losses carried back
-
52,862

Adjustments to tax charge in respect of prior periods
-
(118,676)

Deferred tax on timing differenes
104,005
49,346

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
(12,740)
-

Withholding taxes paid
-
102,101

Other timing differences leading to an increase (decrease) in taxation
(3,254)
-

Book profit on chargeable assets
(4,220)
-

Changes in provisions leading to an increase (decrease) in the tax charge
(258)
-

Unrelieved tax losses carried forward
3,652
-

Other tax charge (relief) on exceptional items
(159)
-

Other differences leading to an increase (decrease) in the tax charge
66,779
-

Total tax charge for the year
104,005
32,771

Page 27

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Intangible assets




Patents
Trademarks
Goodwill
Total

£
£
£
£



Cost


At 1 April 2022
209,774
40,000
6,686,963
6,936,737



At 31 March 2023

209,774
40,000
6,686,963
6,936,737



Amortisation


At 1 April 2022
65,300
40,000
3,677,789
3,783,089


Charge for the year on owned assets
17,125
-
334,344
351,469



At 31 March 2023

82,425
40,000
4,012,133
4,134,558



Net book value



At 31 March 2023
127,349
-
2,674,830
2,802,179



At 31 March 2022
144,474
-
3,009,174
3,153,648

On 31 March 2011 the trade, assets and liabilities of EPartners Limited (fomerly Sing Up Limited) were
transferred at fair value to Faber Music Limited for consideration of £1. The value of the transaction was a negative value of £6,686,963 giving rise to goodwill as stated above.
The goodwill is amortised to nil on a straight line basis over its useful economic life of 20 years. The useful economic life is driven by several factors: The Faber Music name is established in the music publishing and rights industry and is intrinsic to the ongoing stability of the company; the majority of copyrights are held for the life of the copyright, which are variable in length but typically not less than 20 years; and the classical music business transferred is dependent on the extensive backlist catalogue that drives long term value and, in most cases, will benefit from copyright protection for a minimum of 20 years.
During the year management conducted an impairment review of goodwill. The review indicated that the
goodwill recoverable amount exceeded its carrying amount and consequently no impairment has been
recognised.



Page 28

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

12.


Tangible fixed assets





Leasehold
improve-
ments
Furniture,
fittings,
fixtures and equipment
Asset under
construction
Total

£
£
£
£



Cost or valuation


At 1 April 2022
593,273
1,354,552
281,394
2,229,219


Additions
280,927
-
479,894
760,821


Disposals
-
(31,737)
-
(31,737)


Transfers between classes
6,332
136,975
(434,665)
(291,358)



At 31 March 2023

880,532
1,459,790
326,623
2,666,945



Depreciation


At 1 April 2022
512,121
1,090,181
-
1,602,302


Charge for the year on owned assets
32,059
53,057
-
85,116


Disposals
-
(31,737)
-
(31,737)



At 31 March 2023

544,180
1,111,501
-
1,655,681



Net book value



At 31 March 2023
336,352
348,289
326,623
1,011,264



At 31 March 2022
81,152
264,371
281,394
626,917

Page 29

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Fixed asset investments





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 April 2022
12,411
58
12,469



At 31 March 2023
12,411
58
12,469






Net book value



At 31 March 2023
12,411
58
12,469



At 31 March 2022
12,411
58
12,469

The fair value of the unlisted investment is determined by the expected distribution at the year end available to the company on a winding up of the investment.


Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Faber Music GmbH
Germany
Ordinary
100%

Page 30

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

14.


Stocks

2023
2022
£
£

Raw materials and consumables
8,100
8,100

Work in progress (goods to be sold)
45,090
15,192

Finished goods and goods for resale
845,482
722,477

898,672
745,769



15.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
344,115
498,399

344,115
498,399


2023
2022
£
£

Due within one year

Trade debtors
1,883,713
1,775,518

Amounts owed by group undertakings
1,072,909
1,026,383

Other debtors
231,973
198,749

Prepayments and accrued income
284,544
185,639

Other taxation and social security
27,877
-

3,501,016
3,186,289


Page 31

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
3,373,859
2,889,714

Trade creditors
2,309,200
2,281,349

Amounts owed to group undertakings
931,439
891,725

Other taxation and social security
-
(19,826)

Other creditors
241,812
269,607

Accruals and deferred income
1,782,050
1,764,572

8,638,360
8,077,141


The following liabilities were secured:

2023
2022
£
£



Bank overdraft
3,373,859
2,889,714

3,373,859
2,889,714

Details of security provided:

There is a fixed and floating charge over the company's assets as security against the bank overdraft.


17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Amounts owed to group undertakings
1,200,000
1,200,000

1,200,000
1,200,000


Page 32

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

18.


Deferred taxation




2023
2022


£

£






At beginning of year
(76,844)
11,403


Charged to profit or loss
(104,005)
(49,346)


(Charge)/credit to other comprehensive income
(59,750)
(38,901)



At end of year
(240,599)
(76,844)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(237,736)
(133,732)

Deferred tax on defined benefit pension scheme liability/asset
(2,863)
56,888

(240,599)
(76,844)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100


Page 33

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

20.


Pension commitments

The Company operates a Defined benefit pension scheme.

In the year the company participated in the Faber & Faber Pension and Assurance Scheme along with another employer in the Geoffrey Faber Holdings Limited group. The scheme is a multi employer scheme with assets held in a separately administered fund from those of the company. The scheme was closed to new employees from 5th April 2006 and with effect from 1st April 2010 was closed to benefit accrual for future service.
The funding policy of the scheme is to contribute such variable amounts as, on the advice of an independent actuary, to ensure the Fund has sufficient and appropriate assets to cover the value of the fund's accrued liabilities in accordance with the Statutory Funding Requirement. The last full actuarial valuation was performed at 1 April 2023, and showed a surplus of scheme assets over liabilities. As a result the previous recommended plan to eliminate the then shortfall by additional payments has been put on hold.
The surplus on the Faber & Faber Limited Pension and Assurance Scheme at 31 March 2023 was £743,000. The Faber Music Limited agreed share of the plan assets, liabilities and shortfall payments is as follows: 



Reconciliation of present value of plan liabilities:


2023
2022
£
£

Reconciliation of present value of plan liabilities


At the beginning of the year
3,728,100
3,943,050

Interest cost
99,300
81,300

Actuarial (gains)/losses
(966,450)
(157,350)

Benefits paid
(105,150)
(138,900)

At the end of the year
2,755,800
3,728,100


Page 34

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
20.Pension commitments (continued)


Reconciliation of present value of plan assets:


2023
2022
£
£


At the beginning of the year
3,500,550
3,438,900

Current service cost
94,050
72,300

Benefits paid
(105,150)
(138,900)

Past service cost
72,300
144,750

Reduction in value of investments in the year
(694,500)
(16,500)

At the end of the year
2,867,250
3,500,550


Composition of plan assets:


2023
2022
£
£


Equities, property and alternatives
2,074,650
2,356,950

Bonds
559,800
684,000

LDI
206,250
352,800

Cash/other
26,550
106,800

Total plan assets
2,867,250
3,500,550

2023
2022
£
£


Fair value of plan assets
2,867,250
3,500,550

Present value of plan liabilities
(2,755,800)
(3,728,100)

Net pension scheme asset/(liability)
111,450
(227,550)


The amounts recognised in the Statement of Comprehensive Income are as follows:

2023
2022
£
£


Net interest on defined benefit liability
(5,250)
(9,000)

Total
(5,250)
(9,000)





Page 35

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
20.Pension commitments (continued)


Principal actuarial assumptions at the reporting date (expressed as weighted averages):

2023
2022
Discount rate


4.6%

2.7%
 
Future salary increases


2.75%

3.25%
 
Future pension increases



 
- 6 April 1997 to 5 April 2006 (RPI/5%)


3.5%

3.9%
 
- Post 5 April 2006 (RPI/2.5%)



2.5%
 
RPI inflation rate


3.5%

4.0%
 
CPI inflation rate


2.5%

3.0%
 
Mortality rates



 
- for a male aged 65 now


86.9 years

86.9 years
 
- at 65 for a male aged 45 now


88.2 years

88.2 years
 
- for a female aged 65 now


89.3 years

89.3 years
 
- at 65 for a female member aged 45 now


90.7 years

90.7 years
 






21.


Commitments under operating leases

At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
308,133
326,280

Later than 1 year and not later than 5 years
620,061
236,234

Later than 5 years
1,692,167
-

2,620,361
562,514

Page 36

 
FABER MUSIC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Related party transactions

Related party transactions relate to balances with Faber and Faber Limited a 50% owned associate of Geoffrey Faber Holdings Limited. During the year purchases of £26,304 (2022: £28,000) were incurred from Faber & Faber Limited and at the year end the company was owed £10,351 (2022: £8,548) by Faber & Faber Limited. 


23.


Post balance sheet events

Subsequent to the year-end the company acquired an international print publishing business, a print publishing licence, a publishing rights business, and a music management agency.  The aggregate cost of these acquisitions, including stocks of books and other physical assets acquired, and reorganisation and transaction costs, was £6.9m.  This activity was funded through existing cash resources of the parent company Geoffrey Faber Holdings Limited.
Due to the nature of the music publishing and rights industry, the directors are of the opinion that it would be commercially detrimental to the company to disclose the details of the individual transactions at this time.


24.


Controlling party

The parent company and ultimate controlling party is Geoffrey Faber Holdings Limited, which prepares consolidated financial statements for the group of which the company is a member. The consolidated financial statements are available at the parent company's registered office, 12 Roger Street London WC1N 2JU.

 
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