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REGISTERED NUMBER: 13467673 (England and Wales)











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: M R Clarke
K Stevenson
Mrs M Buckman


REGISTERED OFFICE: Units 1-2 Mill Lane
Chilham
Canterbury
Kent
CT4 8EF


REGISTERED NUMBER: 13467673 (England and Wales)


SENIOR STATUTORY
AUDITOR:
Richard Appleyard FCA


AUDITORS: GMP Audit Limited, Statutory Auditor
20 Eversley Road
Bexhill on Sea
East Sussex
TN40 1HE


SOLICITORS: Farrer & Co. LLP
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 (629,090 ) (688,852 )
Tangible assets 5 5,867,651 5,393,295
Investments 6 479,068 479,068
5,717,629 5,183,511

CURRENT ASSETS
Debtors 7 394,831 225,647
Cash at bank 183,909 425,139
578,740 650,786
CREDITORS
Amounts falling due within one year 8 1,029,438 983,951
NET CURRENT LIABILITIES (450,698 ) (333,165 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,266,931

4,850,346

CREDITORS
Amounts falling due after more than
one year

9

(4,127,578

)

(4,260,048

)

PROVISIONS FOR LIABILITIES (307,107 ) (95,528 )
NET ASSETS 832,246 494,770

CAPITAL AND RESERVES
Called up share capital 12 100 100
Retained earnings 832,146 494,670
SHAREHOLDERS' FUNDS 832,246 494,770

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 19th April 2024 and were signed on its behalf by:




M R Clarke - Director



K Stevenson - Director


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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Leasehold improvements - 20% on cost
Plant and machinery - at varying rates on cost
Fixtures and fittings - 20% on cost
Computer equipment - 20% on cost

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 2 (2022 - 4 ) .

4. INTANGIBLE FIXED ASSETS
Other
intangible
Goodwill assets Totals
£    £    £   
COST
At 21st December 2022
and 31st December 2023 (833,452 ) 5 (833,447 )
AMORTISATION
At 21st December 2022 (144,595 ) - (144,595 )
Charge for period (59,762 ) - (59,762 )
At 31st December 2023 (204,357 ) - (204,357 )
NET BOOK VALUE
At 31st December 2023 (629,095 ) 5 (629,090 )
At 20th December 2022 (688,857 ) 5 (688,852 )

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 - 28,343 5,541,304
Additions 503,951 6,292 148,630
Disposals - - (47,327 )
Transfer to ownership - (34,635 ) -
At 31st December 2023 503,951 - 5,642,607
DEPRECIATION
At 21st December 2022 - 5,216 177,312
Charge for period 7,015 2,131 117,560
Eliminated on disposal - (7,347 ) (16,765 )
At 31st December 2023 7,015 - 278,107
NET BOOK VALUE
At 31st December 2023 496,936 - 5,364,500
At 20th December 2022 - 23,127 5,363,992

Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST OR VALUATION
At 21st December 2022 5,815 1,912 5,577,374
Additions - 1,665 660,538
Disposals (40 ) - (47,367 )
Transfer to ownership - - (34,635 )
At 31st December 2023 5,775 3,577 6,155,910
DEPRECIATION
At 21st December 2022 1,195 356 184,079
Charge for period 1,169 428 128,303
Eliminated on disposal (11 ) - (24,123 )
At 31st December 2023 2,353 784 288,259
NET BOOK VALUE
At 31st December 2023 3,422 2,793 5,867,651
At 20th December 2022 4,620 1,556 5,393,295

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 5,371,855
Additions 138,925
Disposals (10,157 )
At 31st December 2023 5,500,623
DEPRECIATION
At 21st December 2022 131,442
Charge for period 115,882
Eliminated on disposal (965 )
At 31st December 2023 246,359
NET BOOK VALUE
At 31st December 2023 5,254,264
At 20th December 2022 5,240,413

6. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST OR VALUATION
At 21st December 2022
and 31st December 2023 479,068
NET BOOK VALUE
At 31st December 2023 479,068
At 20th December 2022 479,068

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 12,071 10,633
Amounts owed by group undertakings 370,243 173,560
Other debtors 12,517 41,454
394,831 225,647

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 8,192 -
Hire purchase contracts (see note 10) 401,465 376,511
Trade creditors 5,203 2,120
VAT 45,646 57,306
Other creditors 1,067 987
Directors' current accounts 199,900 199,900
Deferred income 231,096 264,560
Accrued expenses 136,869 82,567
1,029,438 983,951

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 302,559 -
Hire purchase contracts (see note 10) 3,825,019 4,260,048
4,127,578 4,260,048

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 401,465 376,511
Between one and five years 3,825,019 4,260,048
4,226,484 4,636,559

Non-cancellable operating leases
2023 2022
£    £   
Within one year - 25,000
Between one and five years - 33,333
- 58,333

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 310,751 -
Hire purchase contracts 4,226,484 4,636,559
4,537,235 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: £    £   
100 Ordinary £1 100 100

13. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Richard Appleyard FCA (Senior Statutory Auditor)
for and on behalf of GMP Audit Limited, Statutory Auditor