REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 December 2023 |
for |
Naxos Rights (Europe) Ltd |
REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 December 2023 |
for |
Naxos Rights (Europe) Ltd |
Naxos Rights (Europe) Ltd (Registered number: 10250890) |
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 Rights (Europe) Ltd |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
First Floor, West Barn |
North Frith Farm, Ashes Lane, Hadlow |
Tonbridge |
Kent |
TN11 9QU |
Naxos Rights (Europe) Ltd (Registered number: 10250890) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
Investments | 6 |
CURRENT ASSETS |
Stocks |
Debtors | 7 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
CAPITAL & RESERVES |
Called up share capital |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
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 |
Naxos Rights (Europe) Ltd (Registered number: 10250890) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Naxos Rights (Europe) Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 at group level in relation to going concern and 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 10 to the financial statements indicate group debtor balances of £809,005 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 from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. |
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: |
- | Sale of products: digital sale of musical works on retail website and sale of compact discs and DVDs |
- | Downloading and streaming services: provision of music 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. |
Naxos Rights (Europe) Ltd (Registered number: 10250890) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
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: |
Sale of goods is recognised on the transfer of risks and rewards of ownership, which generally coincides with the time when goods are delivered to customers and title has passed. |
Royalty income is recognised on receipt of statements from licensees. |
Download, streaming income and service income are recognised when services are rendered. |
Subscription income is recognised 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. |
Licencing income and royalty income are recognised as revenue based on the contract terms. |
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 |
Computer equipment | - |
Stocks |
Stocks of finished goods have been valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items. |
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. |
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. |
Naxos Rights (Europe) Ltd (Registered number: 10250890) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
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, |
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. |
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 and loss account. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was NIL (2022 - NIL). |
4. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Naxos Rights (Europe) Ltd (Registered number: 10250890) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | TANGIBLE FIXED ASSETS |
Computer |
equipment |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
6. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Unit C3, Moor Hall, Sandhawes Hill, East Grinstead, West Sussex, England, RH19 3NR |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other group companies | 809,005 | 1,418,426 |
Other debtors |
Prepayments & accrued income |
Naxos Rights (Europe) Ltd (Registered number: 10250890) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Parent company |
Other group companies | 3,529,765 | 3,043,368 |
Social security & other taxes |
Accrued expenses |
9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
10. | RELATED PARTY DISCLOSURES |
The value of group purchases and expenses purchased by the company during the year was £2,843,893 (2022 : £3,007,478), this includes fixed asset additions of £288,787 (2022: £263,947). Sales to companies within the group amounted to £2,586,467 (2022: £2,406,256). |
Balances outstanding at the year end were as follows: | 2023 | 2022 |
£ | £ |
Amounts owed by other group companies |
Naxos of America Inc | 265,963 | 349,924 |
Naxos Global Logistics GmbH | 217,470 | 254,579 |
Naxos Japan | 6,389 | 25,869 |
Naxos Audio books (UK) Ltd | - | 265,790 |
ARC Music Production International Limited | 59,602 | 231,025 |
Naxos Digital Services US Inc | 225,282 | 286,877 |
Naxos Sweden AB | 56 | - |
Naxos Finland OY | 538 | - |
Orfeo International GmbH | - | - |
Naxos Denmark | 448 | 1,488 |
Naxos (Beijing) Culture & communication | 33,257 | 2,874 |
Amount owed to parent company |
Naxos Rights International Limited (Hong Kong) | 14,528,739 | 13,725,065 |
Amounts owed to other group companies |
HNH International Ltd | 1,659,461 | 1,027,088 |
Naxos Rights US Inc | 40 | 159,772 |
Naxos Music UK Limited | 916,440 | 677,005 |
Naxos Deutschland | 148,251 | 325,735 |
Naxos Global Distribution | 355,531 | 396,365 |
Naxos Digital Services | 388,274 | 408,828 |
K & A Productions Ltd | 3,988 | 47118 |
Naxos Audio books (UK) Ltd | 57,780 | - |
Oehms Classics Musikproducktion GmbH | - | 409 |
Ondine OY | - | 564 |
Orfeo International GmbH | - | 484 |
Mr Heymann is common director of the Company's holding company and related companies |
Naxos Rights (Europe) Ltd (Registered number: 10250890) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | ULTIMATE CONTROLLING PARTY |
The company is a wholly owned subsidiary of Naxos Rights International Limited, a company registered in Hong Kong. The ultimate controlling party is Desun Holding Limited , 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. |