Company registration number 07719956 (England and Wales)
PLUGIN BOUTIQUE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
One Bell Lane
Lewes
East Sussex
BN7 1JU
PLUGIN BOUTIQUE LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
PLUGIN BOUTIQUE LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr R McDaniels
Mr M C Gralen
(Appointed 23 October 2023)
Company number
07719956
Registered office
One Bell Lane
Lewes
East Sussex
BN7 1JU
Auditor
TC Group
One Bell Lane
Lewes
East Sussex
BN7 1JU
Bankers
NatWest
Scotland Corporate Centre Audits Team
1st Floor  Drummond House
1 Redheughs Avenue
Edinburgh
EH12 9JN
PLUGIN BOUTIQUE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The Company demonstrated development and growth in its 2023 performance, with turnover increasing by 17.8% compared to 2022, reaching £27.16M (2022: £23.07M). This was driven by innovative product offerings such as the new subscription platform Beatport Studio, and strategic integrations within the Beatport ecosystem.

 

The gross profit margin also increased by 3% from 25% in 2022 to 28% in 2023, landing at £7.607M (2022: £5.728M). This enhancement is attributed to the ongoing collaboration and improvements with our partners.

Administrative expenses increased by 36.6%, amounting to £3.289M compared to the 2022 figure of £2.408M. This rise is consistent with the increased turnover and is inflated by exchange rate losses.

 

The Company’s profit before tax increased by 29.9%, reaching £4.316M in 2023 (2022: £3.319M), resulting in a net profit margin of 15.9%, an increase of 1.5% from 14.4% in 2022.

 

Overall performance in 2023 demonstrates a positive upward trajectory. With continued growth in turnover and effective cost management, it is well-positioned for the foreseeable future.

Principal risks and uncertainties

Competition and rapid innovation in the industry, poses a risk to the Company's profits as new entrants and strategies can erode market share. Through ongoing competitor analysis and fostering innovation initiatives, we aim to monitor and minimise this risk effectively and adapt to the evolving market landscape.

 

The Company is also exposed to foreign exchange risk, which can impact its financial performance due to fluctuations in currency values. This risk arises from international transactions and operations in different currencies. To mitigate potential adverse effects, the company will begin to actively monitor currency movements and consider hedging strategies. By doing so, it aims to stabilise future cash flows and protect profit margins against the volatility of foreign exchange rates.

Key performance indicators

Key performance indicators for the company include the number of unique transacting customers each month. For the year ending 31 December 2023, the company averaged approximately 48,000 unique transacting customers each month, a 20% increase on prior year partly attributed to the subscription service launch in 2022.

 

The average monthly revenue per customer decreased by 3.2% to £44.8 from £48 in 2022 due to varying factors such as competition and lower customer lifetime value. 

 

Management continues to monitor these KPI on a monthly basis to allow for strategic forward planning.  

 

On behalf of the board

..............................
Mr R McDaniels
Director
Date: .............................................
PLUGIN BOUTIQUE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company is that of the provision of a website where music software companies can sell their VST plugins, instruments and studio tools to producers, musicians and DJs worldwide.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R McDaniels
Mr M C Gralen
(Appointed 23 October 2023)
Future developments

In the coming months the company will begin to invest further in its infrastructure and its revenue subscription-based model to diversify its customer base and experience..

Plugin Boutique is also building its own plugins to increase the gross margin. These will be released throughout the coming years.

Auditor

TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr R McDaniels
Director
1 October 2024
PLUGIN BOUTIQUE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PLUGIN BOUTIQUE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PLUGIN BOUTIQUE LIMITED
- 5 -
Opinion

We have audited the financial statements of Plugin Boutique Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

PLUGIN BOUTIQUE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLUGIN BOUTIQUE LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

PLUGIN BOUTIQUE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLUGIN BOUTIQUE LIMITED
- 7 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

PLUGIN BOUTIQUE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLUGIN BOUTIQUE LIMITED
- 8 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Rawson FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
2 October 2024
Office: Lewes
PLUGIN BOUTIQUE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
2
27,164,845
23,067,423
Cost of sales
(19,557,268)
(17,339,602)
Gross profit
7,607,577
5,727,821
Administrative expenses
(3,289,694)
(2,408,387)
Operating profit
3
4,317,883
3,319,434
Interest receivable and similar income
6
269
1,955
Interest payable and similar expenses
7
(2,130)
-
0
Profit before taxation
4,316,022
3,321,389
Tax on profit
8
(1,002,934)
(670,553)
Profit for the financial year
3,313,088
2,650,836
PLUGIN BOUTIQUE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
9
1,030,253
831,380
Tangible assets
10
48,321
46,093
1,078,574
877,473
Current assets
Stocks
11
17,506
17,127
Debtors
12
14,416,052
10,707,311
Cash at bank and in hand
3,710,604
4,893,294
18,144,162
15,617,732
Creditors: amounts falling due within one year
13
(5,992,529)
(6,633,607)
Net current assets
12,151,633
8,984,125
Total assets less current liabilities
13,230,207
9,861,598
Provisions for liabilities
Deferred tax liability
14
158,977
103,456
(158,977)
(103,456)
Net assets
13,071,230
9,758,142
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
13,071,130
9,758,042
Total equity
13,071,230
9,758,142

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 1 October 2024 and are signed on its behalf by:
Mr R McDaniels
Director
Company registration number 07719956 (England and Wales)
PLUGIN BOUTIQUE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
100
7,107,206
7,107,306
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,650,836
2,650,836
Balance at 31 December 2022
100
9,758,042
9,758,142
Year ended 31 December 2023:
Profit and total comprehensive income
-
3,313,088
3,313,088
Balance at 31 December 2023
100
13,071,130
13,071,230
PLUGIN BOUTIQUE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
233,447
1,098,685
Interest paid
(2,130)
-
0
Income taxes paid
(992,302)
(531,434)
Net cash (outflow)/inflow from operating activities
(760,985)
567,251
Investing activities
Purchase of intangible assets
(408,489)
(466,963)
Purchase of tangible fixed assets
(13,485)
(349,374)
Interest received
269
1,955
Net cash used in investing activities
(421,705)
(814,382)
Net decrease in cash and cash equivalents
(1,182,690)
(247,131)
Cash and cash equivalents at beginning of year
4,893,294
5,140,425
Cash and cash equivalents at end of year
3,710,604
4,893,294
PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Plugin Boutique Limited is a private company limited by shares incorporated in England and Wales. The registered office is One Bell Lane, Lewes, East Sussex, BN7 1JU. The business address is Unit C, Level 7, New England House, New England Street, Brighton, East Sussex, BN1 4GH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for the provision of a website service for the sale of music plugins net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
Straight line over 7 years
Product buyouts
Straight line over 3 years
Development costs
Straight line over 3 years
Website development costs
Straight line over 3 years
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings - Leasehold
Straight line over the terms of the lease
Computer equipment
25% reducing balance basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

No depreciation is provided on leasehold property as it is the company's policy to maintain these assets in a continual state of sound repair. The useful economic lives of these assets are thus so long and residual values so high that any depreciation would not be material. Residual values are based on prices prevailing at the date of acquisition or subsequent valuation. Provision is made in the profit and loss account for any permanent diminution in value.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

 

PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
2
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Internet sales
26,709,518
22,846,949
Marketing income
197,083
112,146
Other income
258,244
108,328
27,164,845
23,067,423
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
2,825,138
2,585,485
Europe
7,103,032
5,118,494
Rest of the World
17,236,675
15,363,444
27,164,845
23,067,423
2023
2022
£
£
Other revenue
Interest income
269
1,955
3
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
489,484
35,325
Fees payable to the company's auditor for the audit of the company's financial statements
10,800
11,065
Depreciation of owned tangible fixed assets
11,257
15,157
Amortisation of intangible assets
209,616
123,253
Operating lease charges
28,474
27,902
PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
20
18

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,044,135
971,156
Social security costs
97,667
86,497
Pension costs
42,799
35,452
1,184,601
1,093,105
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
35,491
51,638
Company pension contributions to defined contribution schemes
1,775
2,582
37,266
54,220
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
269
116
Other interest income
-
0
1,839
Total income
269
1,955
PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Interest receivable and similar income
(Continued)
- 20 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
269
116
7
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
2,130
-
0
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
962,674
533,543
Adjustments in respect of prior periods
(15,261)
80,939
Total current tax
947,413
614,482
Deferred tax
Origination and reversal of timing differences
55,521
56,071
Total tax charge
1,002,934
670,553
PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 21 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
4,316,022
3,321,389
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,015,128
631,064
Tax effect of expenses that are not deductible in determining taxable profit
2,790
6,770
Adjustments in respect of prior years
(15,261)
80,939
Group relief
-
0
(44,114)
Permanent capital allowances in excess of depreciation
(90,162)
(85,567)
Depreciation on assets not qualifying for tax allowances
34,918
25,390
Deferred taxation
55,521
56,071
Taxation charge for the year
1,002,934
670,553
PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
9
Intangible fixed assets
Software
Product buyouts
Development costs
Website development costs
Total
£
£
£
£
£
Cost
At 1 January 2023
400,000
94,946
3,372
921,408
1,419,726
Additions - internally developed
-
0
-
0
-
0
371,961
371,961
Additions - separately acquired
-
0
36,528
-
0
-
0
36,528
Disposals
-
0
-
0
(3,372)
-
0
(3,372)
At 31 December 2023
400,000
131,474
-
0
1,293,369
1,824,843
Amortisation and impairment
At 1 January 2023
9,524
22,755
3,372
552,695
588,346
Amortisation charged for the year
57,144
15,268
-
0
137,204
209,616
Disposals
-
0
-
0
(3,372)
-
0
(3,372)
At 31 December 2023
66,668
38,023
-
0
689,899
794,590
Carrying amount
At 31 December 2023
333,332
93,451
-
0
603,470
1,030,253
At 31 December 2022
390,476
72,191
-
0
368,713
831,380
PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
10
Tangible fixed assets
Land and buildings - Leasehold
Computer equipment
Total
£
£
£
Cost
At 1 January 2023
21,519
68,576
90,095
Additions
3,086
10,399
13,485
At 31 December 2023
24,605
78,975
103,580
Depreciation and impairment
At 1 January 2023
6,409
37,593
44,002
Depreciation charged in the year
2,313
8,944
11,257
At 31 December 2023
8,722
46,537
55,259
Carrying amount
At 31 December 2023
15,883
32,438
48,321
At 31 December 2022
15,110
30,983
46,093
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
17,506
17,127
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
327,220
163,724
Amounts owed by group undertakings
10,522,887
7,184,684
Other debtors
3,027,064
3,184,383
Prepayments and accrued income
538,881
174,520
14,416,052
10,707,311
PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,124,443
373,670
Corporation tax
182,058
226,947
Other taxation and social security
650,269
825,249
Other creditors
184,898
184,166
Accruals and deferred income
3,850,861
5,023,575
5,992,529
6,633,607
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
158,977
103,456
2023
Movements in the year:
£
Liability at 1 January 2023
103,456
Charge to profit or loss
55,521
Liability at 31 December 2023
158,977
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,799
35,452

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
17
Related party transactions

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
10,522,887
7,184,684
Other related parties
3,020,644
3,177,693

The company has continued to advance an interest-free loan to Loopmasters Limited, a connected company.

18
Ultimate controlling party

The immediate parent company is Beatport LLC, a company registered in the United States of America, whose results are consolidated into Lifestyle Holdings, Inc.

 

Lifestyle Holidngs Inc prepares group accounts and copies can be obtained from 9171 Wilshire Blvd, Suite 500, Beverly Hills, CA 90210, USA.

 

The ultimate parent is Axar Capital by virtue of its 51% shareholding in Lifestyle Holdings Inc.

PLUGIN BOUTIQUE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
19
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
3,313,088
2,650,836
Adjustments for:
Taxation charged
1,002,934
670,553
Finance costs
2,130
-
0
Investment income
(269)
(1,955)
Amortisation and impairment of intangible assets
209,616
123,253
Depreciation and impairment of tangible fixed assets
11,257
15,157
Movements in working capital:
(Increase)/decrease in stocks
(379)
3,273
Increase in debtors
(3,708,741)
(2,712,907)
(Decrease)/increase in creditors
(596,189)
350,475
Cash generated from operations
233,447
1,098,685
20
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
4,893,294
(1,182,690)
3,710,604
21
Prior period adjustment
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Notes to reconciliation
Website development costs

The prior year adjustment relates to the capitalised website development costs being reclassified as an intangible asset due to a review of their nature. This amounted to £368,962 moving from tangible assets to intangible website development costs.

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