Company registration number 02847280 (England and Wales)
THE SOUND COMPANY LIMITED
Unaudited Financial Statements
for the Year Ended 31 August 2024
THE SOUND COMPANY LIMITED
Contents
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
THE SOUND COMPANY LIMITED
Company Information
- 1 -
Directors
Mr G J Oliver
Mrs C H Oliver
Miss A C Oliver
Secretary
Mr G J Oliver
Company number
02847280
Registered office
Wellfield House
Temple Street
Llandrindod Wells
Powys
LD1 5HG
Accountants
RCH Accountants Limited
Wellfield House
Temple Street
Llandrindod Wells
Powys
LD1 5HG
THE SOUND COMPANY LIMITED
Balance Sheet
As at 31 August 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
3,736,040
3,788,034
Current assets
Debtors
5
193,771
226,670
Cash at bank and in hand
1,362
4,216
195,133
230,886
Creditors: amounts falling due within one year
6
(764,686)
(577,322)
Net current liabilities
(569,553)
(346,436)
Total assets less current liabilities
3,166,487
3,441,598
Creditors: amounts falling due after more than one year
7
(438,722)
(546,212)
Provisions for liabilities
-
0
(7,644)
Net assets
2,727,765
2,887,742
Capital and reserves
Called up share capital
50,000
50,000
Revaluation reserve
2,406,069
2,438,200
Profit and loss reserves
271,696
399,542
Total equity
2,727,765
2,887,742

The notes on pages 4 to 8 form part of these financial statements.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 August 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

THE SOUND COMPANY LIMITED
Balance Sheet
As at 31 August 2024
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 8 May 2025 and are signed on its behalf by:
Mr G J Oliver
Director
Company registration number 02847280 (England and Wales)
THE SOUND COMPANY LIMITED
Notes to the Financial Statements
For the Year Ended 31 August 2024
- 4 -
1
Accounting policies
Company information

The Sound Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Wellfield House, Temple Street, Llandrindod Wells, Powys, LD1 5HG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2
Going concern

At the balance sheet date the company had net current liabilities of £true569,553 (2023 - £346,436). The directors are aware of the turnover and margins that the company needs to achieve in order to keep the company in profit and they believe these targets can be met. The directors review realistic objectives at regular intervals, based on this periodic review and the company's plans, the directors consider it appropriate to prepare the financial statements on the going concern basis.

 

1.3
Turnover

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

 

The company recognises Turnover when:

The amount of Turnover can be reliably measured;

it is probable that future economic benefits will flow to the entity;

and specific criteria have been met for each of the company's activities.

1.4
Tangible fixed assets

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

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

Freehold property
2% on cost
Plant and machinery
25% on reducing balance
Fixtures and fittings
25% on reducing balance and over 5 years

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

THE SOUND COMPANY LIMITED
Notes to the Financial Statements
For the Year Ended 31 August 2024
1
Accounting policies
- 5 -
1.5
Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are recognised at transaction price.

 

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

1.8
Taxation

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

THE SOUND COMPANY LIMITED
Notes to the Financial Statements
For the Year Ended 31 August 2024
1
Accounting policies
- 6 -
Current tax

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

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
Retirement benefits

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

2
Judgements 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.

3
Employees

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

2024
2023
Number
Number
Total
10
12
THE SOUND COMPANY LIMITED
Notes to the Financial Statements
For the Year Ended 31 August 2024
- 7 -
4
Tangible fixed assets
Freehold property
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 September 2023 and 31 August 2024
4,519,262
887,631
226,577
5,633,470
Depreciation and impairment
At 1 September 2023
766,926
862,846
215,663
1,845,435
Depreciation charged in the year
45,385
3,882
2,728
51,995
At 31 August 2024
812,311
866,728
218,391
1,897,430
Carrying amount
At 31 August 2024
3,706,951
20,903
8,186
3,736,040
At 31 August 2023
3,752,336
24,785
10,913
3,788,034

The fair value of the company's Freehold property was revalued on 24 July 2007 by a firm of Independent Chartered Surveyors who are external to the company. The basis of this valuation was on an open market basis. Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,306,190 (2023 - £1,306,190).

5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
68,643
90,853
Corporation tax recoverable
15,880
15,880
Other debtors
30,517
44,622
Prepayments and accrued income
78,731
75,315
193,771
226,670
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
8
169,161
120,970
Other borrowings
8
270,855
261,904
Trade creditors
93,175
82,659
Corporation tax
-
0
5,763
Other taxation and social security
158,738
43,244
Accruals and deferred income
72,757
62,782
764,686
577,322
THE SOUND COMPANY LIMITED
Notes to the Financial Statements
For the Year Ended 31 August 2024
- 8 -
7
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
8
438,722
546,212
Amounts included above which fall due after five years are as follows:
Payable by instalments
85,615
126,726
8
Loans and overdrafts
2024
2023
£
£
Bank loans
570,332
630,418
Bank overdrafts
37,551
36,764
Other loans
270,855
261,904
878,738
929,086
Payable within one year
440,016
382,874
Payable after one year
438,722
546,212

The long-term loans are secured by fixed charges over the property owned by the company.

Bank borrowings is denominated in pounds sterling . The carrying amount at the year end is £548,665 (2023598,752).

Bank Loan is denominated in pounds sterling . The carrying amount at the year end is £21,667 (2023 - £31,667).

The bank loan and overdraft is secured by a limited guarantee given by the directors.

 

In November 2024 the bank loan with carrying amount at the year end of £548,665 was repaid and a new loan taken out of £1,020,000 with a repayment date of 28 November 2026.

9
Directors' transactions
Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Mr G J Oliver -
2.50
44,622
927
(15,032)
30,517
44,622
927
(15,032)
30,517
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