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Registered number: 03735541










S & T AUDIO LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

 
S & T AUDIO LIMITED
 
 
COMPANY INFORMATION


Directors
D. A. Black 
M. A. Roberts (resigned 30 September 2024)
I. K. S. Clark (appointed 28 October 2024)




Company secretary
St. Pauls Secretaries Limited



Registered number
03735541



Registered office
Venture Point West
70-72 Evans Road

Liverpool

L24 9PB




Independent auditors
Langtons Professional Services Limited
Chartered Accountants & Statutory Auditors

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ





 
S & T AUDIO LIMITED
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditors' report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11 - 12
Statement of changes in equity
13
Notes to the financial statements
14 - 33


 
S & T AUDIO LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

Introduction
 
The directors present the strategic report for the year ended 30 April 2024.

Business review
 
The company had a satisfactory year of trading, achieving revenue of £43m (2023: £47.1m) and reporting an EBITDA of £182,489 (2023: £(574,133)).
This performance occurred amid an overall reduction in sector revenue, as macroeconomic factors continued to affect consumers' disposable income, leading to decreased discretionary spending across many retail sectors.
Following the strategic decision to close two low-contribution stores in the second half of the year. On a like-for-like basis, revenue decreased by 6.4% compared to the previous year.
The company is committed to maintaining its physical retail locations and continues to invest in optimising its presence where suitable opportunities arise. Management believes that experiential multichannel retail will continue to resonate strongly with consumers in the sector. Consequently, the company will further utilise its retail estate as experience centres that integrate services and experiences with core retail offerings and high-quality eCommerce. As of April 30, 2024, the business operates 12 physical stores alongside its eCommerce platform www.pmtonline.co.uk, providing a comprehensive multichannel experience for its customers.
To mitigate various market-driven pressures, management improved controls over pricing and gross margin. To further protect margins, the group adopted a strategy emphasising a higher proportion of own-brand ranges and pre-owned products, while also rebalancing the mix of branded products to enhance the depth of offerings in categories with higher margin potential.
As a result of these measures, the company's gross profit margin increased to 24.64%, compared to 23.01% in the prior period.
Despite sustained upward pressure on wages and energy costs, administration costs were reduced by £1m (8.6%) year-on-year due to a comprehensive efficiency review that addressed online marketing expenses, delivery and retail finance costs, and headcount.
Cash balances at year-end amounted to £1.5m, with the business exercising strong controls over working capital and investments in inventory to maximise sales from available resources.
Due to the company's change of auditors and the introduction of a new CFO in 2024, a prior-year adjustment has been identified. This adjustment is not related to current year trading. The Directors believe it originates from a historical issue involving inaccuracies in the completion accounts that were prepared during the management buyout in 2019.
Throughout the year, the company benefited from long-standing and trusted partnerships with its key suppliers, who recognise the strength and quality of the multichannel platform the company provides to showcase their products.
Despite the challenges facing the sector and the wider UK economy, the directors remain optimistic about the future. This confidence is bolstered by its strong relationships with suppliers, the loyalty of its customer base, and the dedication and quality of its workforce.

Page 1

 
S & T AUDIO LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Principal risks and uncertainties
 
Business and operational risk
The ongoing profitability and growth of the company's business is dependent on sourcing products demanded by its customers and attracting customers through an engaging retail proposition, both in-store and online.
The company is dependent on continued supply of products, a large proportion of which are manufactured overseas. The company seeks to mitigate the risk of interruptions to supply by maintaining relationships with a wide range of manufacturers. In the year ended 30 April 2024, the company acquired inventory from over 100 suppliers.
As a substantial bricks & mortar retailer, the company is vulnerable to some or all of its stores having to close to the public, in events such as a global pandemic. While no store closures were in place during the financial year, the company seeks to mitigate this risk by increasing the volume of business conducted via its online channel and reallocating resources within the company to support higher online transaction volumes.
As with any business who has a reliance on technical infrastructure, the company is at risk of business interruption to its online operations, such as by way of a cyber attack. The company seeks to mitigate this risk by continually investing in its web site, supporting systems and infrastructure to provide a degree of failover protection. The company is dependent on its staff to provide high levels of customer satisfaction.
The company invests in training for its staff, appropriate incentivisation structures and continually monitors customer satisfaction.
Cash flow and liquidity risk
The company aims to mitigate liquidity risk through proactive management of working capital and financial forecasting. The company also manages liquidity risk through seeking to maintain adequate cash balances. At the end of the financial year, the company had cash balances of £1.5 million.
Going concern
The directors have prepared forecasts which show that the company is able to continue as a going concern for at least 12 months from the date of signing these accounts.

Financial key performance indicators
 
It is considered that the key financial performance indicators are those that communicate the financial performance, as shown below

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Page 2

 
S & T AUDIO LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024


This report was approved by the board on 27 February 2025 and signed on its behalf.





D. A. Black
Director

Page 3

 
S & T 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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:


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;

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 2006They 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.

Principal activity

S&T Audio Limited, which trades as Play Music Today (PMT), is a retailer of musical instruments and professional audio equipment. The business operates nationwide, serving its customers from an online platform and via 14 stores, which are located in major cities across the UK. The company's customers range from hobbyists to professional musicians but also encompass enterprises and government and educational enterprises.

Results and dividends

The loss for the year, after taxation, amounted to £220,742 (2023 - loss £905,265).

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

Directors

The directors who served during the year were:

D. A. Black 
M. A. Roberts (resigned 30 September 2024)

Page 4

 
S & T AUDIO LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Future developments

The directors continue to monitor and the macroeconomic situation via regular detailed sensitivity analysis and scenario modelling. Notwithstanding these challenges, the directors intend to continue to develop the business to ensure that it is well placed to benefit from a return to more normal trading conditions.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsLangtons Professional Services Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 27 February 2025 and signed on its behalf.
 





D. A. Black
Director

Page 5

 
S & T AUDIO LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF S & T AUDIO LIMITED
 

Opinion

We have audited the financial statements of S & T 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 policiesThe 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:

give a true and fair view of the state of the Company's affairs as at 30 April 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

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 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.

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 Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.

Page 6

 
S & T AUDIO LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF S & T AUDIO LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006

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.

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:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 4, 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.

Page 7

 
S & T AUDIO LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF S & T AUDIO LIMITED (CONTINUED)


Auditors' 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 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.
 
Page 8

 
S & T AUDIO LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF S & T 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.

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 2006Our 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.




Andrew McCall (Senior statutory auditor)
  
for and on behalf of
Langtons Professional Services Limited
 
Chartered Accountants
Statutory Auditors
  
The Plaza
100 Old Hall Street
Liverpool
L3 9QJ

27 February 2025
Page 9

 
S & T AUDIO LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

As restated
2024
2023
Note
£
£

  

Turnover
 4 
43,016,074
47,141,099

Cost of sales
  
(32,414,825)
(36,296,264)

Gross profit
  
10,601,249
10,844,835

Administrative expenses
  
(10,587,938)
(11,681,090)

Exceptional administrative expenses
  
(213,190)
(118,215)

Other operating income
 5 
63,932
102,948

Operating loss
 6 
(135,947)
(851,522)

Interest receivable and similar income
 10 
10,494
4,348

Interest payable and similar expenses
 11 
(154,740)
(116,359)

Loss before tax
  
(280,193)
(963,533)

Tax on loss
 12 
59,451
58,268

Loss for the financial year
  
(220,742)
(905,265)

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 33 form part of these financial statements.

Page 10

 
S & T AUDIO LIMITED
REGISTERED NUMBER: 03735541

STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
359,785
377,349

Tangible assets
 15 
422,328
531,659

  
782,113
909,008

Current assets
  

Stocks
 16 
7,819,009
8,380,492

Debtors: amounts falling due within one year
 17 
2,849,926
3,778,340

Cash at bank and in hand
 18 
1,489,897
2,259,341

  
12,158,832
14,418,173

Creditors: amounts falling due within one year
 19 
(7,356,914)
(9,339,113)

Net current assets
  
 
 
4,801,918
 
 
5,079,060

Total assets less current liabilities
  
5,584,031
5,988,068

Creditors: amounts falling due after more than one year
 20 
(1,268,852)
(1,357,377)

Provisions for liabilities
  

Deferred tax
 23 
-
(59,451)

Other provisions
 24 
(174,955)
(210,274)

  
 
 
(174,955)
 
 
(269,725)

Net assets
  
4,140,224
4,360,966


Capital and reserves
  

Called up share capital 
 25 
100
100

Profit and loss account
 26 
4,140,124
4,360,866

  
4,140,224
4,360,966


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 February 2025.




D. A. Black
Director

The notes on pages 14 to 33 form part of these financial statements.
Page 11

 
S & T AUDIO LIMITED
REGISTERED NUMBER: 03735541
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 APRIL 2024


Page 12

 
S & T AUDIO LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 May 2022 (as previously stated)
100
6,487,656
6,487,756

Prior year adjustment - correction of error
-
(1,221,525)
(1,221,525)


At 1 May 2022 (as restated)
100
5,266,131
5,266,231


Comprehensive income for the year

Loss for the year
-
(905,265)
(905,265)
Total comprehensive income for the year
-
(905,265)
(905,265)


Total transactions with owners
-
-
-



At 1 May 2023 (as previously stated)
100
5,971,432
5,971,532

Prior year adjustment - correction of error
-
(1,610,566)
(1,610,566)


At 1 May 2023 (as restated)
100
4,360,866
4,360,966


Comprehensive income for the year

Loss for the year
-
(220,742)
(220,742)
Total comprehensive income for the year
-
(220,742)
(220,742)


Total transactions with owners
-
-
-


At 30 April 2024
100
4,140,124
4,140,224


The notes on pages 14 to 33 form part of these financial statements.

Page 13

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1.


General information

S & T Audio Limited is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is Venture Point West, 70-72 Evans Road, Liverpool, England, L24 9PB.
The company's principal activities and nature of its operations are disclosed in the Directors' Report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on the going concern basis which assumes that the company will be able to continue to trade for a period of at least 12 months from the date of signing these financial statements.
The trading environment in which the company operates has been challenging as a result of the impact of Brexit on the supply chain, the war in Ukraine and rising UK inflation levels. The rising cost of living and reduction in consumer confidence has led to increased competitive pressures in the sector. The directors have prepared forecasts covering a variety of trading scenarios, all of which show that the company will be able to continue as a going concern.
As set out in the Strategic Report, the company’s trading and financial performance has improved year on year, driven by improved margin percentages and control of variable and fixed overheads. This positive trend was as a result of strategic initiatives, such as growing higher-margin own brand and pre-owned sales, and more tactical efficiency responses to the challenging economic climate in the period.
As a consequence of the factors outlined above, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the 12 month period from the date of signing these financial statements and therefore have adopted the going concern basis of accounting in preparing the financial statements.

Page 14

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Other income
Other income relates to social media online income, insurance claim proceeds and government grants. It is recognised when due, and accrued for as appropriate.

Page 15

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 16

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


 
2.12

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.13

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Website costs
-
5 years straight line
Brand
-
5 years straight line

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 17

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)


2.14
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
20% straight line
Motor vehicles
-
25% reducing balance
Office equipment
-
25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 18

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.20

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 the deduction of all its liabilities.
Page 19

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)


Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 20

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
In the opinion of the directors there are no material judgements which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
Key sources of estimation uncertainty
In the opinion of the directors the estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Dilapidations provisions
The company has a present obligation to make good leased properties it occupies at the end of each respective lease period. Therefore, a dilapidations provision is required based upon the expected discounted cost to make good the properties. The directors have utilised industry dilapidations information and applied an appropriate amount per square foot for each leased property, adjusted for the location and condition of each property (see note 23).
Other provisions
Estimation is required in assessing the level of provisions required against assets, including slow-moving and potentially obsolete inventory and for liabilities including warranties on its own-brand products as there is a present obligation to make good, by repair or replacement. The directors use information available at the balance sheet date to determine the level of provisions required and consider whether further information received after the balance sheet date impacts these provisions (see note 23).
Useful economic life of intangible assets
The Company reviews the carrying value of its intangible assets for indicators of impairment at each period end, in accordance with FRS 102. If any indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its recoverable amount. The directors consider there to be no indicators of impairment in relation to the carrying value of the intangible assets of the company at the year end.
Stock
A decrease has been made against the stock provision resulting in a credit in the statement of comprehensive income of £73,829 (2023 – gain of £417,147) during the year. The provision is computed on a line by line basis to reduce the value of stock held, where the volumes and ageing of the stockline dictate that a reduction in holding value is appropriate


4.


Turnover

The whole of the turnover is attributable to the principal activity of the company.

All turnover arose within the United Kingdom.

Page 21

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

5.


Other operating income

2024
2023
£
£

Other operating income
63,932
70,694

Insurance claims receivable
-
32,254

63,932
102,948



6.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Exchange differences
(7,646)
(13,242)

Other operating lease rentals
1,107,319
1,195,673


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
32,000
48,200


Fees payable for the audit of the group's financial statements are paid by S & T Audio Limited.




Page 22

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

8.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
4,882,425
5,173,587

Social security costs
448,559
559,437

Cost of defined contribution scheme
99,676
117,067

5,430,660
5,850,091


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administration
65
74



Shop staff
114
128

179
202


9.


Directors' remuneration



The directors' remuneration is borne by the ultimate parent company.


10.


Interest receivable

2024
2023
£
£


Other interest receivable
10,494
4,348

10,494
4,348

Page 23

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
153,464
116,359

Other interest payable
1,276
-

154,740
116,359


12.


Taxation


2024
2023
£
£

Corporation tax


Adjustments in respect of previous periods
-
(78,419)


-
(78,419)


Total current tax
-
(78,419)

Deferred tax


Origination and reversal of timing differences
(59,451)
11,561

Adjustments in respect of previous periods
-
8,590

Total deferred tax
(59,451)
20,151


Tax on loss
(59,451)
(58,268)
Page 24

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19.49%). The differences are explained below:

As restated
2024
2023
£
£


Loss on ordinary activities before tax
(280,195)
(963,533)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19.49%)
(70,049)
(187,793)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
602

Fixed asset differences
2,295
(5,551)

Utilisation of tax losses
-
125,950

Adjustments to tax charge in respect of prior periods
-
(69,829)

Prior period adjustment
(402,642)
(238,075)

Movement in deferred tax not recognised
407,867
313,899

Other differences leading to an increase (decrease) in the tax charge
3,078
(18)

Remeasurement of deferred tax for changes in tax rates
-
2,547

Total tax charge for the year
(59,451)
(58,268)


Factors that may affect future tax charges

Tax losses of £1,779,771 are carried forward and are available to reduce the tax arising from future trading profits.  A deferred tax asset has not been recognised on these losses.


13.


Exceptional items

2024
2023
£
£


Severance costs
72,305
118,215

Additional dilapidation costs
96,000
-

Store closure costs
44,885
-

213,190
118,215

Page 25

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

14.


Intangible assets




Website costs
Brand
Total

£
£
£



Cost


At 1 May 2023
507,701
59,890
567,591


Additions
97,351
12,653
110,004



At 30 April 2024

605,052
72,543
677,595



Amortisation


At 1 May 2023
172,380
17,862
190,242


Charge for the year on owned assets
114,975
12,593
127,568



At 30 April 2024

287,355
30,455
317,810



Net book value



At 30 April 2024
317,697
42,088
359,785



At 30 April 2023
335,321
42,028
377,349



Page 26

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

15.


Tangible fixed assets





Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 May 2023
1,335,898
45,660
235,763
1,617,321


Additions
48,363
-
33,174
81,537



At 30 April 2024

1,384,261
45,660
268,937
1,698,858



Depreciation


At 1 May 2023
945,553
45,660
94,449
1,085,662


Charge for the year on owned assets
140,326
-
50,542
190,868



At 30 April 2024

1,085,879
45,660
144,991
1,276,530



Net book value



At 30 April 2024
298,382
-
123,946
422,328



At 30 April 2023
390,345
-
141,314
531,659


16.


Stocks

As restated
2024
2023
£
£

Finished goods and goods for resale
7,819,009
8,380,492

7,819,009
8,380,492


During the year, there was a reversal of an impairment loss relating to prior periods on finished goods of £73,829 which was recognised in cost of sales (2023 - £417,417).

Page 27

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

17.


Debtors

2024
2023
£
£


Trade debtors
98,853
104,491

Amounts owed by group undertakings
1,397,305
1,855,880

Other debtors
451,362
761,242

Prepayments and accrued income
902,406
1,056,727

2,849,926
3,778,340



18.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,489,897
2,259,341

1,489,897
2,259,341



19.


Creditors: Amounts falling due within one year

As restated
2024
2023
£
£

Bank loans
317,213
450,000

Trade creditors
5,491,892
7,536,839

Amounts owed to group undertakings
131,228
-

Other taxation and social security
761,009
628,628

Other creditors
328,390
124,335

Accruals and deferred income
327,182
599,311

7,356,914
9,339,113


Page 28

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

20.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
1,268,852
1,357,377

1,268,852
1,357,377


Secured debts
Debenture
The company's banking facilities are covered by a debenture issued on 24 May 2008.
Bonds, guarantees, indemnities
The company's bank has provided, on behalf of the company, a guarantee of £140,000 (2023 - £140,000) in favour of a supplier to the company.


21.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
317,213
450,000


317,213
450,000

Amounts falling due 1-2 years

Bank loans
634,426
1,357,377


634,426
1,357,377

Amounts falling due 2-5 years

Bank loans
634,426
-


634,426
-


1,586,065
1,807,377


Page 29

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

22.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,489,897
2,259,341




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


23.


Deferred taxation




2024


£






At beginning of year
(59,451)


Charged to profit or loss
59,451



At end of year
-

The deferred taxation balance is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(38,247)
(65,596)

Tax losses carried forward
35,338
-

Short term timing differences
2,909
6,145

-
(59,451)

Page 30

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

24.


Provisions




Dilapidat-
ions provision
Sales return provision
Warranty provision
Total

£
£
£
£





At 1 May 2023
175,336
18,844
16,094
210,274


Charged to profit or loss
18,000
-
7,406
25,406


Utilised in year
(10,186)
(2,324)
-
(12,510)


Released in year
(36,465)
-
(11,750)
(48,215)



At 30 April 2024
146,685
16,520
11,750
174,955

Dilapidations provision
The company has a present obligation to make good leased properties it occupies at the end of each respective property lease. Therefore, a dilapidations provision is required based upon the expected discounted cost to make good the properties.
Sales return provision
Customers have a period in which they can return goods to the store for a refund. Therefore a provision has been created at the year end for the cost of expected returns.
Warranty provision
The company provides a 2-year warranty on its own brand products. It is appropriate to recognise a warranty provision at the year-end as there is a present obligation to make good, by repair or replacement, any issues with these products within 2 years from the date of sale.

Page 31

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

25.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100

The company has one class of ordinary shares which carry no right to fixed income, each carry the right to one vote at general meetings of the company.



26.


Reserves

Profit and loss account

Cumulative profit and loss net of distributions to owners.


27.


Prior year adjustment

During the period, the company recognised a fundamental error had arisen in relation to stock and trade creditor balances. The Directors believe it originates from a historical issue involving inaccuracies in the completion accounts that were prepared during the management buyout in 2019 impacting the valuation of various stock lines and unrecorded supplier liabilities. Given the age of the error, management have only been able to provide sufficient information to support an FY23 opening profit and loss reserves overstatement of £1,221,525 with the unsupported remainder of the error being taken to cost of sales increasing them by £389,041. 
By correcting the issues outlined above, stock has reduced by £334,018, trade creditors have increased by £1,276,548, opening profit and loss reserves have reduced by £1,221,525 and cost of sales have increased by £389,041. 
Adjustments have been made to restate the prior year figures as outlined above. The effect of this is to change last years loss for the financial year from £516,224 to £905,265.


28.


Contingent liabilities

Guarantees totalling £140,000 have been given to a main supplier.


29.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund. Contributions totalling £25,213 (2023 - £24,933) were payable to the fund at the reporting date and are included in creditors.

Page 32

 
S & T AUDIO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

30.


Commitments under operating leases

At 30 April 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
1,029,152
947,369

Later than 1 year and not later than 5 years
2,160,085
1,683,371

Later than 5 years
82,953
121,239

3,272,190
2,751,979


31.


Related party transactions

The company has taken advantage of the exemption under paragraph 33.1A of FRS 102 and has not disclosed transactions with other wholly owned group companies.


32.


Controlling party

The immediate parent undertaking of this company is Professional Music Technology Ltd, a company incorporated in England and Wales.
The ultimate parent undertaking of this company is Jamm Co 2019 Ltd, a company incorporated in England and Wales.
The smallest and largest group in which the results of this company are consolidated are that headed by Jamm Co 2019 Ltd and those accounts can be obtained from its registered office, Venture Point West, 70-72 Evans Road, Liverpool, England, L24 9PB.
There is no ultimate controlling party.

 
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