REGISTERED NUMBER: |
MUSIQ GROUP LIMITED |
AUDITED FINANCIAL STATEMENTS |
FOR THE PERIOD |
21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
REGISTERED NUMBER: |
MUSIQ GROUP LIMITED |
AUDITED FINANCIAL STATEMENTS |
FOR THE PERIOD |
21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
MUSIQ GROUP LIMITED (REGISTERED NUMBER: 13467673) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 | to | 9 |
MUSIQ GROUP LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
20 Eversley Road |
Bexhill on Sea |
East Sussex |
TN40 1HE |
SOLICITORS: |
66 Lincoln's Inn Fields |
London |
WC2A 3LH |
MUSIQ GROUP LIMITED (REGISTERED NUMBER: 13467673) |
BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 | ( |
) | ( |
) |
Tangible assets | 5 |
Investments | 6 |
CURRENT ASSETS |
Debtors | 7 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
9 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
MUSIQ GROUP LIMITED (REGISTERED NUMBER: 13467673) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Musiq Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The company's accounting period has been extended to 31st December to align with that of the wholly owned US subsidiary company. These accounts cover a twelve month and ten day period and are therefore not entirely comparable with the comparative figures from the previous accounts which cover an eighteen month period from incorporation to 21st December 2022. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Preparation of consolidated financial statements |
The financial statements contain information about Musiq Group Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Turnover |
Revenue from finance leases is recognised on systematic basis based on a constant periodic rate of return on the net investment. |
Rental income from operating leases is recognised on a straight line basis over the period of the |
lease. |
All revenues are stated net of value added tax. |
Negative goodwill |
In October 2021 the company purchased the shares of and debt owed by Duet Piano Leasing Inc. As a result of that transaction negative goodwill of £363,445 was recognised. Duet Piano Leasing Inc has two lease agreements which form the company's revenue, these have a 10 year term that commenced in December 2019. The negative goodwill will be amortised over the remaining lease term. |
In October 2021 the company purchased consumer instrument hire agreement equipment from the administrators of Duet Capital (Holdings) Limited. As a result of that transaction negative goodwill of £135,050 was recognised. This balance will be amortised in line with the useful life of the assets. |
In October 2021 the company purchased various equipment from the administrators of Duet Capital (Holdings) Limited. This equipment was then immediately sold to Close Brothers Limited as part of a larger hire purchase agreement. As a result of that transaction negative goodwill of £334,958 was recognised. This balance will be amortised in line with the useful life of the assets. |
The above treatment falls in line with the business combination rules, covered by section 19 of FRS102, regarding the application of the purchase method where an identifiable business is acquired. The fair value of the identifiable assets has been assessed, and compared against the fair value of consideration. In the above circumstance negative goodwill has arisen, which has been capitalised and impaired over the beneficial period. |
MUSIQ GROUP LIMITED (REGISTERED NUMBER: 13467673) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Additional intangible assets, other than goodwill, shown as at the year-end are as follows: |
Intellectual Property Rights - £1.00 |
Advances - £1.00 |
Close Contracts - £1.00 |
Contracts - £1.00 |
Seller's Records - £1.00 |
Due to the minimal value of the intangible assets amortisation has not been accounted for. The intangible assets are subject to an annual impairment review. |
Tangible fixed assets |
Freehold property | - |
Leasehold improvements | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost and adjusted for negative goodwill. The investments are also subject to an annual impairment review. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
MUSIQ GROUP LIMITED (REGISTERED NUMBER: 13467673) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Cost of funds |
The costs associated with the funding acquired by the company has been recognised in the financial statements at an apportioned rate across the term of the funding agreement. This apportionment agrees to the balances provided by the funding company. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the period was |
4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
Goodwill | assets | Totals |
£ | £ | £ |
COST |
At 21st December 2022 |
and 31st December 2023 | ( |
) | ( |
) |
AMORTISATION |
At 21st December 2022 | ( |
) | ( |
) |
Charge for period | ( |
) | ( |
) |
At 31st December 2023 | ( |
) | ( |
) |
NET BOOK VALUE |
At 31st December 2023 | ( |
) | ( |
) |
At 20th December 2022 | ( |
) | ( |
) |
MUSIQ GROUP LIMITED (REGISTERED NUMBER: 13467673) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
5. | TANGIBLE FIXED ASSETS |
Freehold | Leasehold | Plant and |
property | improvements | machinery |
£ | £ | £ |
COST OR VALUATION |
At 21st December 2022 |
Additions |
Disposals | ( |
) |
Transfer to ownership | - | (34,635 | ) | - |
At 31st December 2023 |
DEPRECIATION |
At 21st December 2022 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 20th December 2022 |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 21st December 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Transfer to ownership | - | - | (34,635 | ) |
At 31st December 2023 |
DEPRECIATION |
At 21st December 2022 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 20th December 2022 |
Cost or valuation at 31st December 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
Cost | 503,951 | 5,642,607 | 5,775 | 3,577 | 6,155,910 |
MUSIQ GROUP LIMITED (REGISTERED NUMBER: 13467673) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
5. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST OR VALUATION |
At 21st December 2022 |
Additions |
Disposals | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 21st December 2022 |
Charge for period |
Eliminated on disposal | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 20th December 2022 |
6. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST OR VALUATION |
At 21st December 2022 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 20th December 2022 |
Cost or valuation at 31st December 2023 is represented by: |
Shares in |
group |
undertakings |
£ |
Cost | 479,068 |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
MUSIQ GROUP LIMITED (REGISTERED NUMBER: 13467673) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts (see note 10) |
Trade creditors |
VAT | 45,646 | 57,306 |
Other creditors |
Directors' current accounts | 199,900 | 199,900 |
Deferred income |
Accrued expenses |
Debt has been recognised in line with the terms of the funding agreements. |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans - 2-5 years |
Hire purchase contracts (see note 10) |
Debt has been recognised in line with the terms of the funding agreements. |
10. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
MUSIQ GROUP LIMITED (REGISTERED NUMBER: 13467673) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 21ST DECEMBER 2022 TO 31ST DECEMBER 2023 |
11. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts | 4,226,484 | 4,636,559 |
The bank loan is secured against the freehold property as well as personal gurantees by the directors to the sum of £308,756. |
The company recognises that it has provided rights over assets held by the company under hire purchase agreements to Close Brothers Limited. Close Brothers Limited holds fixed and floating charges over said assets. The company has secured additional funding which totals £1million to continue it's leasing and associated operations in the forthcoming years. |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
13. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |