Registered number:
FOR THE YEAR ENDED 30 APRIL 2024
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ADLIB AUDIO LIMITED
COMPANY INFORMATION
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ADLIB AUDIO LIMITED
CONTENTS
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ADLIB AUDIO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present their report for the year ended 30 April 2024.
In February 2024 the Board of Directors achieved a significant milestone with the completion of a Management Buyout (MBO). The company’s management team remains unchanged, and trading has been very much business as usual.
There has been continued growth in Turnover for the financial year, with an increase of 18% to £28.4m. The Business has made significant asset purchases totalling £7.2m to meet client demand and help facilitate growth. This investment will secure future revenue and continue the positive outlook for FY2025 where Management anticipate growth across all disciplines. Following the MBO, the Management team can focus more attention on strategic growth plans developing our core services and increasing our presence in key markets. EBITDA increased by £0.3m to £5.9m (FY2023: £5.6m). The EBITDA margin achieved was 21% which was slightly down on the 23% achieved FY2023 but demonstrates consistency in operations and cash generation. Given inflationary pressures, increased wages and rising overheads, the Business has shown resilience to deliver strong results which secured Profit before tax of £1.4m. The Business has made significant developments in IT, HR, resource and asset management solutions with a focus on driving efficiencies and optimising resources. Following the MBO the business plans to consolidate its position as the UK’s leading independent event technology partner by strengthening underlying financial performance, continue to reinvest profits to fund growth whilst carefully monitoring operating profit, net cash and net debt levels.
The business produces weekly short-term cashflows and regularly monitors Orderbook and Pipeline data to ensure Trading Performance is inline with expectations. Financial outturn is reviewed in Management Accounts and Detailed Projections, along with working capital requirements and cash position.
All new customers and suppliers are onboarded following a credit check and further due diligence. Credit agency data is cross matched across our ledgers to help monitor credit risk and changes in credit scores. This along with our credit policies has successfully kept Bad Debt to a minimum (0.1% of turnover). The business secured £4m of CBILS loans in 2020/21. At the end of April 2024, the balance remaining is £1.26m, demonstrating our cash generative activities to drive down COVID-19 government backed debt. The business has experienced interest rate increases on variable rate loans. However the majority of new Asset Finance and existing bank loans are on a fixed rate which has reduced our exposure to interest rate increases.
We consider that our key financial performance indicators are those that show the overall performance and strength of the company; The most appropriate measures being turnover, gross margin and cash flow.
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ADLIB AUDIO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
This report was approved by the board on 16 December 2024 and signed on its behalf.
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ADLIB AUDIO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present their report and the financial statements for the year ended 30 April 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
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 to 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.
The profit for the year, after taxation, amounted to £1,024,736 (2023 - £2,140,347).
Dividends amounting to £60,000 (2023 - £438,499) were paid during the year. The directors do not recommended any further dividends for the year.
The directors who served during the year were:
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ADLIB AUDIO LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The directors plan to continue to develop the existing activities of the company.
There have been no significant events affecting the Company since the year end.
The auditors, Langtons Professional Services Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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ADLIB AUDIO LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADLIB AUDIO LIMITED
We have audited the financial statements of Adlib Audio Limited (the 'Company') for the year ended 30 April 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of 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).
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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ADLIB AUDIO LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADLIB AUDIO LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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.
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ADLIB AUDIO LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADLIB AUDIO LIMITED (CONTINUED)
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 Auditors' 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:
The objectives of our audit, in respect to fraud, are: • to identify and assess the risks of material misstatement of the financial statements due to fraud; • to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and • to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Our approach was as follows: • We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR). • We understood how the Company is complying with those frameworks by making enquiries of management. Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up. • Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: enquiries of management; and journal entry testing, with a focus on manual journals indicating large or unusual transactions based on our understanding of the business. • We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.
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ADLIB AUDIO LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADLIB AUDIO LIMITED (CONTINUED)
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
The Plaza
100 Old Hall Street
L3 9QJ
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ADLIB AUDIO LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
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ADLIB AUDIO LIMITED
REGISTERED NUMBER: 03555097
STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024
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ADLIB AUDIO LIMITED
REGISTERED NUMBER: 03555097
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 14 to 36 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
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