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Registration number: 08916724

Mighty Tight Records Ltd

Unaudited Filleted Financial Statements

for the Year Ended 29 February 2024

 

Mighty Tight Records Ltd

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 9

 

Mighty Tight Records Ltd

Company Information

Director

Mr SE Brain

Registered office

Hagley Road Business Hub
8 Hagley Road
Stourbridge
West Midlands
DY8 1PS

Accountants

CLG Accountants & Business Advisors
Hagley Road Business Hub
8 Hagley Road
Riverside North
Stourbridge
West Midlands
DY8 1PS

 

Mighty Tight Records Ltd

(Registration number: 08916724)
Balance Sheet as at 29 February 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

-

3,101

Tangible assets

5

3,887

4,573

 

3,887

7,674

Current assets

 

Stocks

6

1,518

1,556

Cash at bank and in hand

 

961

7,058

 

2,479

8,614

Creditors: Amounts falling due within one year

7

(8,276)

(14,734)

Net current liabilities

 

(5,797)

(6,120)

Total assets less current liabilities

 

(1,910)

1,554

Creditors: Amounts falling due after more than one year

7

(2,000)

(3,600)

Provisions for liabilities

-

224

Net liabilities

 

(3,910)

(1,822)

Capital and reserves

 

Called up share capital

8

2

2

Retained earnings

(3,912)

(1,824)

Shareholders' deficit

 

(3,910)

(1,822)

For the financial year ending 29 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 2 September 2024
 

 

Mighty Tight Records Ltd

(Registration number: 08916724)
Balance Sheet as at 29 February 2024

.........................................
Mr SE Brain
Director

 

Mighty Tight Records Ltd

Notes to the Unaudited Financial Statements for the Year Ended 29 February 2024

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Hagley Road Business Hub
8 Hagley Road
Stourbridge
West Midlands
DY8 1PS

The principal place of business is:
77a Church Street
Brierley Hill
West Midlands
DY5 3QP

These financial statements were authorised for issue by the director on 2 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 including Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis with the Director having given due consideration to the impact of Brexit and Covid-19. He is of the opinion that neither the Company's ability to trade nor the value of its assets will be significantly impaired. In addition, he has committed his personal financial support for the foreseeable future.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Mighty Tight Records Ltd

Notes to the Unaudited Financial Statements for the Year Ended 29 February 2024

Government grants

Government revenue grants are recognised as other operating income in the period in which they are received, Any directly attributable expenses are recognised in the same period as the said income but are not offset but shown separately within the financial statements.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant & Equipment

15% on reducing balance

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Other intangible assets

costs written off over 3 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

 

Mighty Tight Records Ltd

Notes to the Unaudited Financial Statements for the Year Ended 29 February 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 0 (2023 - 0).

 

Mighty Tight Records Ltd

Notes to the Unaudited Financial Statements for the Year Ended 29 February 2024

4

Intangible assets

Other intangible assets
 £

Total
£

Cost or valuation

At 1 March 2023

23,476

23,476

At 29 February 2024

23,476

23,476

Amortisation

At 1 March 2023

20,375

20,375

Amortisation charge

3,101

3,101

At 29 February 2024

23,476

23,476

Carrying amount

At 29 February 2024

-

-

At 28 February 2023

3,101

3,101

Costs incurred in producing music albums. These are amortised over their economic life which the Director deems to be currently three years with the balance being amortised equally in 2024 and 2025.

Impairment

Music production costs
The impairment loss is included in Amortisation of development costs.

 

Mighty Tight Records Ltd

Notes to the Unaudited Financial Statements for the Year Ended 29 February 2024

5

Tangible assets

Other tangible assets
£

Total
£

Cost or valuation

At 1 March 2023

8,610

8,610

At 29 February 2024

8,610

8,610

Depreciation

At 1 March 2023

4,037

4,037

Charge for the year

686

686

At 29 February 2024

4,723

4,723

Carrying amount

At 29 February 2024

3,887

3,887

At 28 February 2023

4,573

4,573

6

Stocks

2024
£

2023
£

Merchandise

1,518

1,556

7

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

10

2,567

1,600

Accruals and deferred income

 

443

433

Other creditors

 

5,266

12,701

 

8,276

14,734

Other creditors refer to monies owed to the Director. These monies have been loaned on an unsecured, interest free basis, being repayable upon demand.

 

Mighty Tight Records Ltd

Notes to the Unaudited Financial Statements for the Year Ended 29 February 2024

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

10

2,000

3,600

8

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary of £1 each

2

2

2

2

       

9

Dividends

10

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

2,000

3,600

Current loans and borrowings

2024
£

2023
£

Bank borrowings

1,600

1,600

Bank overdrafts

967

-

2,567

1,600

Bank borrowings

Business Bank Loan is denominated in sterling with a nominal interest rate of 2.5%, and the final instalment is due on 28 May 2026. The carrying amount at year end is £3,600 (2023 - £5,200).

The bank loan is guaranteed 100% by the Government under the Business Bounceback Loan Scheme