Caseware UK (AP4) 2024.0.164 2024.0.164 2023-12-312023-12-31music publishing, digital media sales and the collection of publishing royalties along with retail merchandising sales.2023-01-01false3735falsefalsefalse 06344313 2023-01-01 2023-12-31 06344313 2022-01-01 2022-12-31 06344313 2023-12-31 06344313 2022-12-31 06344313 2022-01-01 06344313 c:Exceptional 2023-01-01 2023-12-31 06344313 c:Exceptional 2022-01-01 2022-12-31 06344313 d:Director1 2023-01-01 2023-12-31 06344313 d:Director2 2023-01-01 2023-12-31 06344313 d:Director3 2023-01-01 2023-12-31 06344313 d:Director4 2023-01-01 2023-12-31 06344313 d:Director4 2023-12-31 06344313 d:Director5 2023-01-01 2023-12-31 06344313 d:RegisteredOffice 2023-01-01 2023-12-31 06344313 c:MotorVehicles 2023-01-01 2023-12-31 06344313 c:MotorVehicles 2023-12-31 06344313 c:MotorVehicles 2022-12-31 06344313 c:MotorVehicles c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06344313 c:FurnitureFittings 2023-01-01 2023-12-31 06344313 c:FurnitureFittings 2023-12-31 06344313 c:FurnitureFittings 2022-12-31 06344313 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06344313 c:ComputerEquipment 2023-01-01 2023-12-31 06344313 c:ComputerEquipment 2023-12-31 06344313 c:ComputerEquipment 2022-12-31 06344313 c:ComputerEquipment c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06344313 c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06344313 c:CurrentFinancialInstruments 2023-12-31 06344313 c:CurrentFinancialInstruments 2022-12-31 06344313 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 06344313 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 06344313 e:UnitedKingdom 2023-01-01 2023-12-31 06344313 e:UnitedKingdom 2022-01-01 2022-12-31 06344313 e:RestWorldOutsideUK 2023-01-01 2023-12-31 06344313 e:RestWorldOutsideUK 2022-01-01 2022-12-31 06344313 c:UKTax 2023-01-01 2023-12-31 06344313 c:UKTax 2022-01-01 2022-12-31 06344313 c:ShareCapital 2023-12-31 06344313 c:ShareCapital 2022-01-01 2022-12-31 06344313 c:ShareCapital 2022-12-31 06344313 c:ShareCapital 2022-01-01 06344313 c:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 06344313 c:RetainedEarningsAccumulatedLosses 2023-12-31 06344313 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 06344313 c:RetainedEarningsAccumulatedLosses 2022-12-31 06344313 c:RetainedEarningsAccumulatedLosses 2022-01-01 06344313 c:AcceleratedTaxDepreciationDeferredTax 2023-12-31 06344313 c:AcceleratedTaxDepreciationDeferredTax 2022-12-31 06344313 d:OrdinaryShareClass1 2023-01-01 2023-12-31 06344313 d:OrdinaryShareClass1 2023-12-31 06344313 d:FRS102 2023-01-01 2023-12-31 06344313 d:Audited 2023-01-01 2023-12-31 06344313 d:FullAccounts 2023-01-01 2023-12-31 06344313 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 06344313 c:Subsidiary1 2023-01-01 2023-12-31 06344313 c:Subsidiary1 1 2023-01-01 2023-12-31 06344313 c:Subsidiary5 2023-01-01 2023-12-31 06344313 c:Subsidiary5 1 2023-01-01 2023-12-31 06344313 2 2023-01-01 2023-12-31 06344313 4 2023-01-01 2023-12-31 06344313 6 2023-01-01 2023-12-31 06344313 f:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure
Registered number: 06344313














AEI MUSIC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 
AEI MUSIC LIMITED
 
 
COMPANY INFORMATION


Directors
S L Cole 
J A J Cotterill 
D Dias 
L B Hood 




Registered number
06344313



Registered office
Bankstock Building 3rd Floor
42-44 De Beauvoir Crescent

London

N1 5SB




Independent auditors
Sopher + Co LLP
Chartered Accountants & Statutory Auditors

5 Elstree Gate

Elstree Way

Borehamwood

Hertfordshire

WD6 1JD





 
AEI MUSIC LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 8
Statement of Comprehensive Income
 
 
9
Statement of Financial Position
 
 
10
Statement of Changes in Equity
 
 
11
Notes to the Financial Statements
 
 
12 - 24


 
AEI MUSIC LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Business review
 
AEI Music is a highly diverse company with operations and revenues spanning streaming income from its wholly owned record labels, streaming income from distributed record labels, YouTube income from channels it owns and manages, merchandise sales, video content production and synchronisation licenses for use of licensed music by third parties.
The results and position of the company for the year ended 31 December 2023 are set out in the statement of comprehensive income, the statement of financial position, and the statement of changes in equity on pages 9, 10, and 11 respectively. 

Principal risks and uncertainties
 
Foreign currency risk
AEI Music operates with three principal currencies: GBP, EUR, and USD, where the revenue and cost bases are mainly matched in USD. AEI Music has minimal exposure to fluctuations in foreign exchange rates.
Liquidity risk
Cash balances have remained strong throughout the year with closing balances of £974k in 2023 and £1.1m in 2022. This strong position has been maintained despite intercompany funding to support other areas of the business.  
Credit risk
As the vast majority of the company’s revenue is self-billed and automatically paid within 60 days, there is virtually no credit risk.  New contracts undergo rigorous due diligence to further minimise any risk.
Team
With an average of 37 employees, AEI Music is committed to supporting the growth and development of all team members.  The company offers a best-in-class benefits scheme that includes unlimited holiday and 4-day working week.
Diversity, equity, inclusion, and the environment
AEI Music is committed to a comprehensive program of diversity, equity, and inclusion with the goal of achieving specific diversity targets over the next one, three, and ten years. Employee representation groups have been established to create a supportive and inclusive environment. AEI Music became B-Corp certified in 2021 and is striving to improve its initial score during re-certification in 2025. This underlines AEI’s commitment to its team and the planet.
 

Page 1

 
AEI MUSIC LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators

2023
2022
Variance
Variance
        £
        £
        £
        %
Turnover

9,353,571

10,543,208

(1,189,637)
 
-11.28
 
Gross profit

2,930,235

3,000,435

(70,200)
 
-2.34
 
Profit/(loss) before tax

(822,201)

605,631

(1,427,832)
 
-235.67
 
Profit/(loss) after tax

(665,651)

503,941

(1,169,592)
 
-232.09
 
Adjusted profit/(loss) after tax

76,099

760,972

(684,873)
 
-90
 
Net assets

151,565

1,062,236

(910,671)
 
-85.73
 
Cash at bank

974,242

1,079,762

(105,520)
 
-9.77
 
Average number of employees

37

35

2
 
5.71
 

Turnover has decreased from 2022, but gross profit has remained largely static.  The increase in salaries and consultancy fees, along with the exceptional intercompany impairmentof £741,749.69, has contributed to reduced retained earnings and, consequently, lower net assets. 
Adjusting for the impairment, the 2023 loss after tax would improve from a loss of £665,651 to a profit of £76,099. Similarly, for 2022, excluding the impairment of £257,031 would increase profit after tax from £503,941 to £760,972. These adjustments highlight the significant impact the impairment costs have had on the reported results in both years.

Future developments
 
AEI Music is committed to growing the business and culturally enriching the scenes and communities we operate in through music. Having completed a deal in 2023 for a new joint venture record label, AEI Music is expanding and diversifying to build the biggest community of lifelong fans in electronic music.
Investing heavily in developing its own royalties and distribution platform (launched in 2024), AEI Music is putting the artist experience at the core of future plans.
AEI has continued to support its subsidiaries growing its co-working space to near capacity and driving its sponsorship agency subsidiary to profitability in 2023.


This report was approved by the board on 28 January 2025 and signed on its behalf.



D Dias
Director

Page 2

 
AEI MUSIC LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

S L Cole 
J A J Cotterill 
D Dias 
J W Evans (resigned 22 July 2024)
L B Hood 

Results and dividends

The loss for the year, after taxation, amounted to £665,651 (2022 - profit £503,941).

The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £245,020 (2022: £869,992). 

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;

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 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.

Page 3

 
AEI MUSIC LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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 directors are aware, there is no relevant audit information of which the Company's auditors are unaware, and

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

Auditors

Under section 487 (2) of the Companies Act 2006, Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. 

This report was approved by the board on 28 January 2025 and signed on its behalf.
 





D Dias
Director

Page 4

 
AEI MUSIC LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEI MUSIC LIMITED
 

Opinion


We have audited the financial statements of AEI Music Limited (the 'Company') for the year ended 31 December 2023, 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 31 December 2023 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.


Page 5

 
AEI MUSIC LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEI MUSIC LIMITED (CONTINUED)

Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. 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.


In connection with our audit of the financial statementsour 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.


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 3, 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 6

 
AEI MUSIC LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEI MUSIC 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:

Based on our understanding of the company and industry, we have identified the principal risks of noncompliance with laws and regulations, and we have considered the extent to which non-compliance might have a material effect on the financial statements such as the Companies Act 2006. 
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the media sector; 
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection, employment, environmental and health and safety;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 
understanding the design of the Company’s remuneration policies. 

To address the risk of fraud through management bias and override of controls, we: 
 
performed analytical procedures to identify any unusual or unexpected relationships; 
tested journal entries to identify unusual transactions; 
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 
investigated the rationale behind significant or unusual transactions. 

 

 
Page 7

 
AEI MUSIC LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEI MUSIC LIMITED (CONTINUED)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
 
agreeing financial statement disclosures to underlying supporting documentation; 
reading the minutes of meetings of those charged with governance; 
enquiring of management as to actual and potential litigation and claims; and 
reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors. 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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.





Stephen Iseman FCA (Senior Statutory Auditor)
  
for and on behalf of
Sopher + Co LLP
 
Chartered Accountants
Statutory Auditors
  
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD

28 January 2025
Page 8

 
AEI MUSIC LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
9,353,571
10,543,208

Cost of sales
  
(6,423,336)
(7,542,773)

Gross profit
  
2,930,235
3,000,435

Administrative expenses
  
(3,047,789)
(2,142,295)

Exceptional administrative expenses
 5 
(741,750)
(257,031)

Operating (loss)/profit
 6 
(859,304)
601,109

Income from fixed assets investments
  
35,665
-

Interest receivable and similar income
  
5,665
4,577

Interest payable and similar expenses
  
(4,227)
(55)

(Loss)/profit before tax
  
(822,201)
605,631

Tax on (loss)/profit
 7 
156,550
(101,690)

(Loss)/profit for the financial year
  
(665,651)
503,941

There was no other comprehensive income for 2023 or 2022.

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 
AEI MUSIC LIMITED
REGISTERED NUMBER:06344313

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
67,448
58,507

Investments
 13 
305
305

  
67,753
58,812

Current assets
  

Stocks
  
24,710
39,006

Debtors: amounts falling due within one year
 14 
6,284,810
5,762,308

Cash at bank and in hand
  
974,242
1,079,762

  
7,283,762
6,881,076

Current liabilities
  

Creditors: amounts falling due within one year
 15 
(7,183,088)
(5,863,025)

Net current assets
  
 
 
100,674
 
 
1,018,051

Total assets less current liabilities
  
168,427
1,076,863

Provisions for liabilities
  

Deferred tax
 16 
(16,862)
(14,627)

Net assets
  
151,565
1,062,236


Capital and reserves
  

Called up share capital 
 17 
900
900

Profit and loss account
 18 
150,665
1,061,336

  
151,565
1,062,236


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 January 2025.




D Dias
Director

The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
AEI MUSIC LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
800
1,427,387
1,428,187



Profit for the year
-
503,941
503,941

Dividends: Equity capital
-
(869,992)
(869,992)

Shares issued during the year
100
-
100



At 1 January 2023
900
1,061,336
1,062,236



Loss for the year
-
(665,651)
(665,651)

Dividends: Equity capital
-
(245,020)
(245,020)


At 31 December 2023
900
150,665
151,565


The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

AEI Music Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, Bankstock Building, 42-44 De Beauvoir Crescent, London, N1 5SB. 
The principal activity of the company continued to be that of music publishing, digital media sales and the collection of publishing royalties along with retail merchandising sales. 

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

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e),
11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
• the requirements of Section 33 Related Party Disclosures paragraph 33.7.
AEI Music Limited is a subsidiary of AEI Ventures Limited and the results of AEI Music Limited are included in the consolidated financial statements of AEI Ventures Limited which are available from its registered office, 3rd Floor, Bankstock Building, 42-44 De Beauvoir Crescent, London, N1 5SB.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 12

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is £ Sterling.

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.

 
2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, commissions, value added tax and other sales taxes.
Royalties receivable are accounted on an accruals basis and are recognised in the period to which they relate.
Synchronisation fees are recognised once there is unconditional right to receive the associated consideration.  

 
2.6

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.

 
2.7

Interest income

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

Page 13

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company contributes to 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.

 
2.9

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.


 
2.10

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.

 
2.11

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 14

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.11
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.

Depreciation is provided on the following basis:

Motor vehicles
-
20%
Fixtures and fittings
-
25%
Computer equipment
-
33%

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.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Valuation of associates

Associates are held at cost less impairment.

  
2.14

Affiliated undertakings

In the financial statements, companies are described as affiliated to AEI Music Limited if:
(i) they have the same shareholders or ultimate shareholders as AEI Music Limited; or
(ii) the company is owned by one or more of the shareholders of AEI Music Limited.

 
2.15

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.
Stocks are measured on a first-in-first-out basis. 

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

Page 15

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
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 are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
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

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. 


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. 
The directors consider the business to be straightforward, but certain judgments and estimates have been made in applying the company’s accounting policies that could have a material impact on the financial statements, particularly regarding the impairment of intercompany balances.



 
Page 16

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.Judgments in applying accounting policies (continued)

Recoverability of debtor balances
Management evaluates debtor balances from group and affiliated entities for impairment whenever circumstances suggest that the carrying value may not be recoverable. This assessment involves subjective judgments regarding the future trading prospects and cash flows of the group and affiliated entities. The directors have assessed the ability of these entities to recover the outstanding amounts. Should actual results differ from the assumptions made during the impairment review, this may result in the recognition of additional impairments or reversals of impairments in future periods.


4.


Turnover

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

Geographical analysis of turnover:

2023
2022
£
£

United Kingdom
1,271,807
2,424,938

Rest of the world
8,081,764
8,118,270

9,353,571
10,543,208



5.


Exceptional items

2023
2022
£
£


Impairment of amount due from group undertaking
741,750
257,031

An exceptional item has been recorded due to an impairment test conducted on a receivable from a group company. The receivable balance was determined to be unrecoverable and has been written down accordingly. 


6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Exchange differences
42,408
(62,507)

Other operating lease rentals
131,193
126,688

Depreciation of owned tangible fixed assets
32,881
28,762

Page 17

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(24,058)
117,634

Adjustments in respect of previous periods
(134,727)
(18,227)


Total current tax
(158,785)
99,407

Deferred tax


Origination and reversal of timing differences
2,235
2,283


Tax on (loss)/profit
(156,550)
101,690

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the composite/standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(822,201)
605,631


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
(193,217)
115,070

Effects of:


Expenses not deductible for tax purposes
(354)
(18,646)

Capital allowances for year in excess of depreciation
(2,115)
(97)

Deferred tax on accelerated capital allowances
2,235
2,283

Intercompany impairment
174,311
48,836

Adjustments to tax rate in respect of prior periods
5,698
-

Non-taxable dividend
(8,381)
-

Group relief
-
(27,529)

Adjustments in respect of previous periods
(134,727)
(18,227)

Total tax charge for the year
(156,550)
101,690


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
25,000
20,000


9.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,228,697
911,957

Social security costs
127,467
102,567

Cost of defined contribution scheme
241,955
163,424

1,598,119
1,177,948


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


        2023
        2022
            No.
            No.







Directors
5
5



Finance
5
5



Product
2
2



Admin
25
23

37
35


10.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
45,500
52,668

Company contributions to defined contribution pension schemes
192,204
120,000

237,704
172,668


During the year retirement benefits were accruing to 5 directors (2022 - 5) in respect of defined contribution pension schemes.

Page 19

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Dividends

2023
2022
£
£


Dividends paid on ordinary shares
245,020
869,992


12.


Tangible fixed assets





Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost


At 1 January 2023
51,626
99,155
103,344
254,125


Additions
-
2,400
39,422
41,822


Disposals
-
-
(35,435)
(35,435)



At 31 December 2023

51,626
101,555
107,331
260,512



Depreciation


At 1 January 2023
22,096
93,979
79,543
195,618


Charge for the year on owned assets
10,325
2,703
19,853
32,881


Disposals
-
-
(35,435)
(35,435)



At 31 December 2023

32,421
96,682
63,961
193,064



Net book value



At 31 December 2023
19,205
4,873
43,370
67,448



At 31 December 2022
29,530
5,176
23,801
58,507

Page 20

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Fixed asset investments





Investments in subsidiary companies
Investments in associates
Other fixed asset investments
Total

£
£
£
£



Cost


At 1 January 2023
180
115
10
305



At 31 December 2023
180
115
10
305





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

The Halley Space Limited
Ordinary
100%
AEI Live Limited
Ordinary
80%

All of the above companies have their registered office at 3rd Floor, Bankstock Building, 42-44 De Beauvoir Crescent, London, N1 5SB.


14.


Debtors

2023
2022
£
£


Trade debtors
58,667
30,113

Amounts owed by group undertakings
720,851
673,304

Amounts owed by affiliated undertakings
2,960,415
2,753,561

Amounts owed by associated undertakings
-
43,683

Other debtors
471,688
355,877

Prepayments and accrued income
2,073,189
1,905,770

6,284,810
5,762,308


Amounts owed by affiliated and associated undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. 

Page 21

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
2,476,153
1,444,409

Amounts owed to group undertakings
1,402,282
1,100,933

Amounts owed to affiliated undertakings
129,482
111,446

Corporation tax
139,258
268,469

Other taxation and social security
84,596
159,829

Other creditors
11,768
13,969

Accruals and deferred income
2,939,549
2,763,970

7,183,088
5,863,025


Amounts owed to affiliated undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.


16.


Deferred taxation




2023


£






At beginning of year
14,627


Charged to profit or loss
2,235



At end of year
16,862

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
16,862
14,627


17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



900 Ordinary shares of £1.00 each
900
900


Page 22

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Reserves

Profit and loss account

The profit and loss reserve contains the cumulative balance of retained profit and losses since the company started trading, all of which are distributable. 


19.


Pension commitments

The Company contributes to 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 and amounted to £241,955 (2022 - £163,424). Contributions totaling £4,644 (2022 - £7,289) were payable to the fund at the reporting date and are included in creditors.


20.


Commitments under operating leases

The Company had no commitments under non-cancellable operating leases at the reporting date.


21.


Transactions with directors

At the start of the financial year, the total outstanding advances to directors amounted to £242,790. During the financial year, an additional advance of £75,408 was made to one of the directors. As a result, the total advances to directors at the end of the financial year amounted to £318,198. Advances made to directors are unsecured. 
Interest on directors' advances are charged at the official HMRC beneficial loan interest rate.


22.


Contingent liabilities

A fixed and floating charge, dated 12 May 2009, has been secured over the assets of the company as security for a guarantee provided by the company in relation to a bank loan granted to an affiliated undertaking.
As of 31 December 2023, the potential liability cannot be reliably estimated. However, based on the financial position of the affiliated undertaking, the directors consider it unlikely that the guarantee will be called upon. As such, no provision has been recognised in respect of this contingent liability.

Page 23

 
AEI MUSIC LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Related party transactions

The company has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland'', not to disclose related party transactions with wholly owned subsidiaries within the group.
During the year, the Company incurred costs of £4,371,294 (2022 - £5,635,303) from a company in which the directors have a material interest. At the year end, £2,346,002 (2022 - £1,440,417) of these costs remained outstanding and are included within trade creditors.
During the year, the Company incurred purchases of £34,496 (2022 - £42,146) from a company in which the directors have a material interest.  
During the year, the Company incurred consultancy costs of £90,266 (2022 - £66,706) in connection with services provided by Diluk Dias. 
 
During the year, the Company recharged staff costs for employees on AEI Music Limited's payroll, who work for a company in which directors have a material interest and control. The payroll recharged in the year amounted to £33,475 (2022 - £28,304).


24.


Controlling party

The ultimate parent and controlling company is AEI Ventures Limited, a company registered in England and Wales. Their registered address is Bankstock Building 3rd Floor, 42-44 De Beauvoir Crescent, London, N1 5SB.

 
Page 24