Registered number
13542729
Music Holdings Limited
Financial Statements
Information for Filing with the Registrar
31 December 2022
Music Holdings Limited
Company Information
Directors
T R Hegarty
T Lorenco
Secretary
A J Smith
Auditors
Grant Thornton UK LLP
30 Finsbury Square
London
EC2A 1AG
Registered office
Unit 9 Westworks Building
White City Place
195 Wood Lane
London
W12 7FQ
Registered number
13542729
Music Holdings Limited
Report and accounts
Contents
Page
Statement of financial position 1
Notes to the financial statements 2-8
Music Holdings Limited
Registered number: 13542729
Balance Sheet
as at 31 December 2022
Unaudited
Notes 31 December 2022 30 June 2022
$ $
Non-current assets
Investments 4 55,480,705 132
Current assets
Trade and other receivables 5 299,324 17,764,140
Cash and cash equivalents 463 696
299,787 17,764,836
Current liabilities 6 (6,942,953) (403,361)
Net current (liabilities)/assets (6,643,166) 17,361,475
Total assets less current liabilities 48,837,539 17,361,607
Creditors: amounts falling due after more than one year 7 (45,162,568) (12,667,811)
Net assets 3,674,971 4,693,796
Equity
Called up share capital 77,209 77,209
Share premium 6,339,176 6,339,176
Retained earnings (2,741,414) (1,722,589)
Shareholders' funds 3,674,971 4,693,796
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the statement of comprehensive income in accordance with provisions
applicable to companies subject to the small companies' regime.
Timothy Hegarty
Director
Approved by the board on 7 March 2024
Music Holdings Limited
Notes to the Accounts
for the period from 1 July 2022 to 31 December 2022
1 General Information
Music Holdings Limited is a private company limited by shares and incorporated in England and Wales. Registered number 13542729. Its registered head office is located at Unit 9 Westworks Building, White City Place, 195 Wood Lane, London, W12 7FQ.
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 Section 1A of Financial ReportingStandard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The company's financial statements are presented in US Dollars and all values are rounded to the nearest dollar ($) except when otherwise stated.

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.

The following principal accounting policies have been applied:
2.2 Foreign currency translation
Functional and presentation currency

The company's functional and presentational currency is USD.

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. Nonmonetary 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 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'.

2.3 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.
2.4 Borrowing costs
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
2.5 Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
2.6 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.
2.7 Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty
on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no
more than three months from the date of acquisition and that are readily convertible to known
amounts of cash with insignificant risk of change in value.
2.8 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.
2.9 Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and
Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's 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 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.

Impairment of financial assets

Financial assets, other than those held at fair value through the statement of income, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more
events that occurred after the initial recognition of the financial asset, the estimated future cash flows
have been affected. If an asset is impaired, the impairment loss is the difference between the
carrying amount and the present value of the estimated cash flows discounted at the assets original
effective interest rate. The impairment loss is recognised in the statement of income.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does
not exceed what the carrying amount would have been, had the impairment not previously been
recognised. The impairment reversal is recognised in the statement of income.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank overdrafts and other long term loans, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are
discharged or cancelled.
2.10 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.
2.11 Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.

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.
6 month peiod ended Unaudited
3 Employees 31 December 2022 2 August 2021 to 30 June 2022
No. No.
The average monthly number of persons (including directors) employed by the company during the 2 3
period was:
Shares in subsidiaries
4 Fixed asset investments $
Cost of valuation
At 1 July 2022 132
Additions 55,480,573
At 31 December 2022 55,480,705
Amortisation
At 31 December 2022 -
Net book value
At 31 December 2022 55,480,705
At 30 June 2022 132
Subsidiary undertakings
The following were subsidiary undertakings of the company
The following were subsidiary undertakings of the company
Name Registered office Class of shares Holding
Music Midco Limited Unit 9 Westworks Building, Whtie City Place, 195 Wood Lane, London, W12 7FQ Ordinay 100%
CEG Media Music Limited* Unit 9 Westworks Building, Whtie City Place, 195 Wood Lane, London, W12 7FQ Ordinay 100%
On 27 October 2022 Music Midco Limited was incorporated and is a wholly owned subsidiary of Music Holdings Limited. Subsequently, Music Holdings Limited transferred it's shares in CEG Media Music
Limited to Music Midco Limited by way of a share for share exchange.
* indirectly held
Unaudited
5 Trade and other receivables 31 December 2022 30 June 2022
$ $
Amounts owed by group undertakings and undertakings 17,643,982
Other receivables 208,388 21,906
Prepayments and accrued income 90,936 98,252
299,324 17,764,140
6 Current liabilities 31 December 2022 30 June 2022
$ $
Bank loans and overdrafts - 82
Amounts owed to group undertakings and undertakings 3,274,143 -
Accruals and deferred income 30,780 403,279
Senior facility 3,638,030 -
6,942,953 403,361
Amounts owed to group undertakings are interest free and payable on demand.

The Senior loan repayment date is 19 December 2027, holds an interest rate of 12% and is secured against the assets of Music Holdings Limited. Repayments are made quarterly based on excess cash flow above $100,000 with the remaining amount due on the repayment date. The total loan facility is $98.4m.
Unaudited
7 Non-current liabilties 31 December 2022 30 June 2022
$ $
Junior loan 13,511,455 12,667,811
Senior facility 31,651,113 -
45,162,568 12,667,811
8 Audit information
The auditor's report on the financial statements for the period ended 31 December 2022 was unqualified.
Senior statutory auditor: Aimee Griffiths
Firm: Grant Thornton UK LLP
Date of audit report: 7 March 2024
9 Other information
Music Holdings Limited is a private company limited by shares and incorporated in England. Its registered office is:
Unit 9 Westworks Building
White City Place
195 Wood Lane
London
W12 7FQ
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