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REGISTERED NUMBER: 05396726 (England and Wales)















Financial Statements for the Year Ended 31 December 2023

for

Naxos Audio Books (UK) Limited

Naxos Audio Books (UK) Limited (Registered number: 05396726)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Naxos Audio Books (UK) Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: K Heymann
A Anderson





SECRETARY: J McClure





REGISTERED OFFICE: 3rd Floor
Forum House
41-51 Brighton Road
Redhill
Surrey
RH1 6YS





REGISTERED NUMBER: 05396726 (England and Wales)





AUDITORS: Deeks Evans Audit Services Limited
Statutory Auditor
First Floor, West Barn
North Frith Farm, Ashes Lane, Hadlow
Tonbridge
Kent
TN11 9QU

Naxos Audio Books (UK) Limited (Registered number: 05396726)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 400,430 443,485
Tangible assets 5 1,172 3,255
401,602 446,740

CURRENT ASSETS
Debtors 6 2,563,498 2,081,288
Cash at bank 166,708 179,507
2,730,206 2,260,795
CREDITORS
Amounts falling due within one year 7 247,269 596,388
NET CURRENT ASSETS 2,482,937 1,664,407
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,884,539

2,111,147

CAPITAL & RESERVES
Called up share capital 1 1
Retained earnings 2,884,538 2,111,146
SHAREHOLDERS' FUNDS 2,884,539 2,111,147

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 August 2024 and were signed on its behalf by:





A Anderson - Director


Naxos Audio Books (UK) Limited (Registered number: 05396726)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Naxos Audio Books (UK) 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.

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.

The financial statements have been prepared in conformity with the principles applicable to a going concern basis. The applicability of these principles is dependent upon continued availability of adequate finance in the future in view of the group's net current liabilities. There is a material uncertainty related to this condition that may cast significant doubt on the Group's ability to continue as a going concern and, therefore, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. The group directors, Mr. Klaus Heymann and Mr.Yu He, have confirmed their intention to provide financial support to the Group and not to call upon the Group to repay any of the loans due to them until it is in a position to do so without compromising the rights of the Group's creditors. Note 8 to the financial statements indicates group debtor balances of £1,943,458 which are treated as recoverable.

Critical accounting estimates and judgements
Estimates and assumptions concerning the future and judgements are made by the management in the preparation of the financial statements. They affect the application of the Company's accounting policies, reported amounts of assets, liabilities, income and expenses and disclosures made. They are assessed on an on-going basis and are based on experience and relevant factors, including expectations of future events that are believed to be reasonable in the period of revision and future periods, in case the revision also effects future periods.

Revenue recognition
Revenue is recognised when it is possible that the economic benefits will flow to the company and when the revenue and costs, if applicable, can be measured reliably and on the following basis:

Nature of goods or services
The nature of the goods or services provided by the company is as follows:
- Downloading and streaming services: provision of subscriptions services via downloading or streaming
- Licensing services: licensing of sound recordings and other intellectual property
- Royalty services: administers and remits payment of mechanical royalties from underlying compositions
contained on products licensed, owned, and/or controlled by its customers

Identification of performance obligations
At contract inception, the company assesses the goods or services promised in a contract with a customer and identifies as a performance obligation each promise to transfer to the customer either:
(a) a good or service (or a bundle of goods or services) that is distinct; or
(b) a series of distinct goods or services that are substantially the same and that have the same pattern of
transfer to the customer.

A good or service that is promised to a customer is distinct if both of the following criteria are met:

(a) the customer can benefit from the good or service either on its own or together with other resources
that are readily available to the customer (i.e. the good or service is capable of being distinct); and
(b) the companies' promise to transfer the good or service to the customer is separately identifiable from
other promises in the contract (i.e. the promise to transfer the good or service is distinct within the
context of the contract).

Naxos Audio Books (UK) Limited (Registered number: 05396726)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Timing of revenue recognition
Revenue is recognised when (or as) the company satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset.

The company transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:

(a) the customer simultaneously receives and consumes the benefits provided by the company's
performance as the company performs;
(b) the company's performance creates or enhances an asset (for example, work in progress) that the
customer controls as the asset is created or enhanced; or
(c) the company's performance does not create an asset with an alternative use to the company and the
company has an enforceable right to payment for performance completed to date

If a performance obligation is not satisfied over time, the Company satisfies the performance obligation at a point in time when the customer obtains control of the promised asset. In determining when the transfer of control occurs, the Company considers the concept of control and such indicators as legal title, physical possession, right to payment, significant risks and rewards of ownership of the asset, and customer acceptance.

Digital income, public performance income and management fee income are recognised at a point in time when services are rendered.

Subscriptions income is recognised over time when services are provided under the terms of the online subscription agreements. Payments received in advance of providing services are recorded as deferred revenue and amortised to revenue over the term of agreement.

Licensing income and royalty income are recognised as revenue over time or at a point in time based on the contract terms.

For revenue recognised over time, provided the outcome of the performance obligation can be reasonably measured, the Company applies the output method (i.e. based on the direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract) to measure the progress towards complete satisfaction of the performance obligation because the method provides a faithful depiction of the Company's performance and reliable information is available to the Company to apply the method. Otherwise, revenue is recognised only to the extent of the costs incurred until such time that it can reasonably measure the outcome of the performance obligation.

Intangible assets
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The costs comprise recording costs incurred in producing master recordings for physical and digital distribution. Intangible assets are amortised on a straight line basis over a period of five years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures & fittings - 5 years
Computer equipment - 3 years

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit or loss, 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.


Naxos Audio Books (UK) Limited (Registered number: 05396726)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
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 year 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.

Foreign currencies
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign exchange gains and losses resulting from the retranslating of non-monetary items carried at fair value are recognised in profit or loss except for those arising on the retranslating of non-monetary items in respect of which gains and losses are recognised directly in equity, in which cases, the gains or losses are also recognised directly in equity.

The results and financial position of all the Group entities that have a functional currency different from the presentation currency ("foreign operations") are translated into the presentation currency as follows:

- Assets and liabilities for each statement of financial position presented are translated at the closing rate
at the end of the reporting period;
- Income and expenses for each statement of comprehensive income are translated at average
exchange rate;
- All resulting exchange differences arising from the above translation and exchange differences arising
from a monetary item that forms part of the company's net investment in a foreign operation are
recognised as a separate component of equity;

Leasing commitments
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.

Financial instruments
Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the profit or loss account.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2022 - 5 ) .

Naxos Audio Books (UK) Limited (Registered number: 05396726)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. INTANGIBLE FIXED ASSETS
Recording
costs
£   
COST
At 1 January 2023 2,728,850
Additions 117,823
At 31 December 2023 2,846,673
AMORTISATION
At 1 January 2023 2,285,365
Amortisation for year 160,878
At 31 December 2023 2,446,243
NET BOOK VALUE
At 31 December 2023 400,430
At 31 December 2022 443,485

5. TANGIBLE FIXED ASSETS
Fixtures Computer
& fittings equipment Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 1,348 15,767 17,115
DEPRECIATION
At 1 January 2023 1,348 12,512 13,860
Charge for year - 2,083 2,083
At 31 December 2023 1,348 14,595 15,943
NET BOOK VALUE
At 31 December 2023 - 1,172 1,172
At 31 December 2022 - 3,255 3,255

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 481,397 390,439
Other group companies 1,943,458 1,568,592
Other debtors 110,227 96,386
Prepayments & accrued income 28,416 25,871
2,563,498 2,081,288

Naxos Audio Books (UK) Limited (Registered number: 05396726)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Other group companies balances outstanding at 31 December 2023 were as follows: -

20232022
£ £
Naxos of America Inc.1,786,1871.517,211
Naxos Digital US99,38951,381
Naxos Rights (Europe) Limited57,780-
Naxos Deutschland Musik & Vertriebs GmbH102-
1,943,4581,568,592


7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 70,259 57,221
Other group companies 71,339 271,288
Other creditors 94 -
Accruals & deferred income 105,577 267,879
247,269 596,388

Details of balances for parent and group companies balances outstanding at 31 December 2023 were as follows: -

20232022
£   £   

Naxos Music UK Limited12,3454,336
Naxos Global Distribution2862
Naxos Rights (Europe) Limited-265,790
K & A Productions Limited -510
Naxos Rights US688590
HnH International Ltd58,278-
71,339271,288


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

The Report of the Auditors was unqualified.

Richard Young (Senior Statutory Auditor)
for and on behalf of Deeks Evans Audit Services Limited

9. RELATED PARTY DISCLOSURES

The value of group purchases and expenses purchased by the company during the year was £480,706 (2022 : £337,575). Sales to companies within the group amounted to £1,800,443 (2022: £1,927,719). Service charge income has been to charged to other group companies £54,971 (2022: £62,936). Interest has been charged on amounts owing by parent and other group companies totalling £nil (2022: £38,011).

The related company balances are shown in more detail in note 8, debtors and note 9, creditors.

Naxos Audio Books (UK) Limited (Registered number: 05396726)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

10. ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of Naxos Audiobooks Limited, a company registered in Hong Kong. The ultimate controlling party is Desun Holding Ltd , a BVI company controlled by Mr He Yu.

The results for the year of the company are included in the group financial statements of Angelina Assets Limited (a BVI company) for the year ended 31 December 2023. The Company's registered office is located at Vistra Corporate Services Centre, Wickham's Cay II,Road Town, Tortola, VG1110, British Virgin Islands.

The group financial statements are not publicly available.