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REGISTERED NUMBER: 08123415 (England and Wales)
























GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

PRS GUITARS INTERNATIONAL LIMITED

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 31 December 2024










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Statement of Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


PRS GUITARS INTERNATIONAL LIMITED

COMPANY INFORMATION
For The Year Ended 31 December 2024







DIRECTORS: P R Smith
J Higginbotham
G R Mortimer
J S Mann
R E Casbon



REGISTERED OFFICE: Ground Floor, Baird House
Seebeck Place, Knowlhill
Milton Keynes
Buckinghamshire
MK5 8FR



REGISTERED NUMBER: 08123415 (England and Wales)



SENIOR STATUTORY AUDITOR: Antonia Aldridge-Brown FCCA



AUDITORS: TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

GROUP STRATEGIC REPORT
For The Year Ended 31 December 2024


The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS
The directors are very pleased with the progress of the business after disruptions resulting from the ever changing business and social environment; including pandemic and the cost-of-living increases brought about by the war in Ukraine. We are pleased to have maintained the customer base during this period. The position that the Group has been able to remain profitable in this year is acknowledged as being due to the strong relationships built with both customers, and the valuable assistance and support of the Group's workforce. The Group has continued to invest in training its management team, the directors consider that they are well placed to build on the Group's performance in 2024.

The Group incorporated an entity in the Netherlands during the prior year to better aid their customer base in the European market which has proven very successful.

PRINCIPAL RISKS AND UNCERTAINTIES
The Board considers that any business risk is largely attached to the economic position of its customer base and the economic and technological environment in which customers exist. The Board considers that the Group's customer base is more diversified than at any stage in its history such that it has sought to mitigate a measure of this risk; additionally, customers are geographically spread throughout Europe and beyond; if one territory is struggling another of the 30+ countries will be doing well to compensate.

Price risk
The Group is less exposed to price risk than many as it is a wholly owned subsidiary. All products are supplied by the Mothership Pricing, therefore, whilst subject to normal inflationary pressures, is also subject to a market discussion too.

Liquidity risk
The Group makes efforts to manage financial risk by the monitoring of cash-flow to meet operational and investment requirements. The Group remained cash positive in 2024.

Credit risk
The Group's principal financial assets are stock, cash and trade debtors. The credit risk associated with cash is limited and stock has remained scarce which means value is maintained; therefore, the principal credit risk arises from its trade debtors.

In order to manage credit risk the directors set limits for customers based on a combination of payment history and credit references, credit is only given to known customers of good standing, sales are instructed not to chase bad business. Credit limits are regularly reviewed by the directors and trading positions relative to these are acted upon, the extremely low bad debt recorded reflects the brand strength and above policies.

Interest rate risk
The Group does hold substantial cash balances at the present time and assets which only earn a very low rate of interest due to the present economic situation. Being cash positive there is little to no exposure on interest rates at the current time.

Economic risk
The directors have considered the ongoing impact of rapidly changing business and social environment and have taken all reasonable steps to overcome the challenges that may impact on the business. The directors have monitored staff levels and continue to manage and look out for any risks to cashflow, revenue, sustainability and continued access to supply.

KEY PERFORMANCE INDICATORS
The directors constantly monitor the business in terms of revenue, expenditure, stock level and gross margin targets. The directors actively monitor sales, backorders and trade receivables recovery metrics.


PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

GROUP STRATEGIC REPORT
For The Year Ended 31 December 2024

SUBSEQUENT EVENTS
There are no significant post balance sheet events.

ON BEHALF OF THE BOARD:





R E Casbon - Director


24 June 2025

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

REPORT OF THE DIRECTORS
For The Year Ended 31 December 2024


The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of a distributor of guitars and accessories, and product development of these goods.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2024 (2023: £nil).

RESEARCH AND DEVELOPMENT
The group will continue to invest in research and development to enhance product and service offerings to new and existing customers.

FUTURE DEVELOPMENTS
The group plans to continue organic development of existing operations through continued targeted expansion of our customer base.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

P R Smith
J Higginbotham
G R Mortimer
J S Mann

Other changes in directors holding office are as follows:

D L Cordell - resigned 1 September 2024
R E Casbon - appointed 1 January 2024

FINANCIAL INSTRUMENTS
The group utilises various financial instruments including a factoring account, cash and items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these is to raise finance for the group's operations. The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail in the Strategic Report.

POLITICAL DONATIONS AND EXPENDITURE
There were no political donations made during the financial year (2023: £nil). Other donations of £1,188 were made during the financial year (2023: £1,788).

DISCLOSURE IN THE STRATEGIC REPORT
As permitted by Paragraph 1A of schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report instead. These matters relate to Business review, Principal risks and uncertainties and Key performance indicators.


PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

REPORT OF THE DIRECTORS
For The Year Ended 31 December 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

- select suitable accounting policies and then apply them consistently;
- make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R E Casbon - Director


24 June 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PRS GUITARS INTERNATIONAL LIMITED


Opinion
We have audited the financial statements of PRS Guitars International Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's profit 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 statements, 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 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.

Opinions 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PRS GUITARS INTERNATIONAL LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 Statement of Directors' Responsibilities set out on page five, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PRS GUITARS INTERNATIONAL LIMITED


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 a Report of the Auditors 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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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 Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Antonia Aldridge-Brown FCCA (Senior Statutory Auditor)
for and on behalf of TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

24 June 2025

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

CONSOLIDATED
STATEMENT OF COMPREHENSIVE
INCOME
For The Year Ended 31 December 2024

2024 2023
Notes £    £   

TURNOVER 3 15,992,890 17,892,979

Cost of sales 11,033,284 12,653,534
GROSS PROFIT 4,959,606 5,239,445

Administrative expenses 4,563,375 4,826,273
OPERATING PROFIT 5 396,231 413,172

Interest receivable and similar income 1,783 -
398,014 413,172

Interest payable and similar expenses 6 495 119
PROFIT BEFORE TAXATION 397,519 413,053

Tax on profit 7 (72,669 ) 273,266
PROFIT FOR THE FINANCIAL YEAR 470,188 139,787

OTHER COMPREHENSIVE INCOME
Foreign exchange 2,964 -
Income tax relating to other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME FOR THE
YEAR, NET OF INCOME TAX

2,964

-
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

473,152

139,787

Profit attributable to:
Owners of the parent 470,188 139,787

Total comprehensive income attributable to:
Owners of the parent 473,152 139,787

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

CONSOLIDATED BALANCE SHEET
31 December 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 138,995 112,617
Investments 11 - -
138,995 112,617

CURRENT ASSETS
Stocks 12 4,907,298 3,704,992
Debtors 13 2,771,753 3,720,417
Cash at bank and in hand 613,115 1,493,710
8,292,166 8,919,119
CREDITORS
Amounts falling due within one year 14 4,396,171 5,468,663
NET CURRENT ASSETS 3,895,995 3,450,456
TOTAL ASSETS LESS CURRENT LIABILITIES 4,034,990 3,563,073

PROVISIONS FOR LIABILITIES 17 2,602 3,837
NET ASSETS 4,032,388 3,559,236

CAPITAL AND RESERVES
Called up share capital 18 1,118,920 1,118,920
Other reserves 2,964 -
Retained earnings 2,910,504 2,440,316
SHAREHOLDERS' FUNDS 4,032,388 3,559,236

The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2025 and were signed on its behalf by:





R E Casbon - Director


PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

COMPANY BALANCE SHEET
31 December 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 108,424 74,223
Investments 11 1 1
108,425 74,224

CURRENT ASSETS
Stocks 12 4,616,527 3,652,737
Debtors 13 3,008,716 3,751,374
Cash at bank and in hand 613,115 1,493,710
8,238,358 8,897,821
CREDITORS
Amounts falling due within one year 14 4,367,574 5,417,766
NET CURRENT ASSETS 3,870,784 3,480,055
TOTAL ASSETS LESS CURRENT LIABILITIES 3,979,209 3,554,279

PROVISIONS FOR LIABILITIES 17 2,602 3,837
NET ASSETS 3,976,607 3,550,442

CAPITAL AND RESERVES
Called up share capital 18 1,118,920 1,118,920
Retained earnings 2,857,687 2,431,522
SHAREHOLDERS' FUNDS 3,976,607 3,550,442

Company's profit for the financial year 426,165 130,993

The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2025 and were signed on its behalf by:





R E Casbon - Director


PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 December 2024

Called up
share Retained Other Total
capital earnings reserves equity
£    £    £    £   
Balance at 1 January 2023 1,118,920 2,300,529 - 3,419,449

Changes in equity
Total comprehensive income - 139,787 - 139,787
Balance at 31 December 2023 1,118,920 2,440,316 - 3,559,236

Changes in equity
Total comprehensive income - 470,188 2,964 473,152
Balance at 31 December 2024 1,118,920 2,910,504 2,964 4,032,388

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

COMPANY STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 December 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2023 1,118,920 2,300,529 3,419,449

Changes in equity
Total comprehensive income - 130,993 130,993
Balance at 31 December 2023 1,118,920 2,431,522 3,550,442

Changes in equity
Total comprehensive income - 426,165 426,165
Balance at 31 December 2024 1,118,920 2,857,687 3,976,607

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

CONSOLIDATED CASH FLOW STATEMENT
For The Year Ended 31 December 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (704,797 ) 719,792
Interest paid (495 ) (119 )
Tax paid (105,492 ) (31,191 )
Net cash from operating activities (810,784 ) 688,482

Cash flows from investing activities
Purchase of tangible fixed assets (71,736 ) (55,449 )
Sale of tangible fixed assets 142 -
Interest received 1,783 -
Net cash from investing activities (69,811 ) (55,449 )

(Decrease)/increase in cash and cash equivalents (880,595 ) 633,033
Cash and cash equivalents at beginning
of year

2

1,493,710

860,677

Cash and cash equivalents at end of
year

2

613,115

1,493,710

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
For The Year Ended 31 December 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 397,519 413,053
Depreciation charges 43,630 37,298
Foreign exchange movement 4,550 -
Finance costs 495 119
Finance income (1,783 ) -
444,411 450,470
Increase in stocks (1,202,306 ) (304,665 )
Decrease in trade and other debtors 948,664 271,911
(Decrease)/increase in trade and other creditors (895,566 ) 302,076
Cash generated from operations (704,797 ) 719,792

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024
31.12.24 1.1.24
£    £   
Cash and cash equivalents 613,115 1,493,710
Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,493,710 860,677


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24 Cash flow At 31.12.24
£    £    £   
Net cash
Cash at bank and in hand 1,493,710 (880,595 ) 613,115
1,493,710 (880,595 ) 613,115
Total 1,493,710 (880,595 ) 613,115

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 31 December 2024


1. STATUTORY INFORMATION

PRS Guitars International Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.
The business address is as follows:

D1 Button End Industrial Estate
Button End
Harston
Cambridge
CB22 7GX

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and have also been consistently applied within the same accounts.

Functional and presentational currency
The Group's functional and presentational currency is GBP.

Basis of consolidation
The financial statements consolidate the accounts of PRS Guitars International Limited and its subsidiary undertakings from the date of acquisition. A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Significant judgements and estimates
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The directors do not consider that there are any estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover
Turnover represents net invoiced sales of goods, excluding value added tax and is recognised upon delivery to customers.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2013, this was amortised evenly over its estimated useful life of five years. This has now been fully amortised.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 20% on cost
Plant and machinery - 20% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

Tangible fixed assets are initially recorded at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

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. At each balance sheet date, the group reviews the carrying amounts of its tangible fixed assets to determine whether there is an indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is determined on average cost. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


2. ACCOUNTING POLICIES - continued

Financial instruments
Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

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 derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other payables, and loans from fellow group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Financial assets and liabilities are offset and 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


2. ACCOUNTING POLICIES - continued

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
In preparing the financial statements of the group, transactions in currencies other than the functional currency of the group (foreign currencies) are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences are recognised in profit or loss in the period in which they arise.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost less impairment.

Going concern
As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. The directors acknowledge that given the rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 5,662,748 6,464,430
Europe 9,932,501 11,086,569
Rest of world 397,641 341,980
15,992,890 17,892,979

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,566,612 1,768,312
Social security costs 173,160 164,389
Other pension costs 53,976 33,733
1,793,748 1,966,434

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2024 2023

Admin 5 4
Sales 7 6
Production 10 10
22 20

2024 2023
£    £   
Directors' remuneration 397,476 322,730
Directors' pension contributions to money purchase schemes 9,936 7,735

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 1

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 297,277 322,730
Pension contributions to money purchase schemes 7,735 7,735

5. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Other operating leases 106,584 54,442
Depreciation - owned assets 43,630 37,298
Auditors' remuneration 12,000 10,950
Auditors' remuneration for non audit work 19,608 20,345

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 495 119

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 97,567 105,499
Tax adjustments in relation to
prior years (169,001 ) 169,000
Total current tax (71,434 ) 274,499

Deferred tax (1,235 ) (1,233 )
Tax on profit (72,669 ) 273,266

UK corporation tax has been charged at 25 % .

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 397,519 413,053
Profit multiplied by the standard rate of corporation tax in the UK of
25 % (2023 - 23.500 %)

99,380

97,067

Effects of:
Expenses not deductible for tax purposes 703 297
Income not taxable for tax purposes (1,082 ) -
Depreciation in excess of capital allowances 1,560 5,693
Deferred tax movement (1,235 ) (1,233 )
Overseas tax (2,994 ) 2,442
Tax in relation to prior periods (169,001 ) 169,000
Total tax (credit)/charge (72,669 ) 273,266

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£    £    £   
Foreign exchange 2,964 - 2,964

From 1st April 2023 the corporation tax main rate increased from 19% to 25% for companies with profits over £250,000. The small company rate remains at 19% for taxable profits under £50,000. For profits falling between £50,000 and £250,000 marginal relief is applied. Deferred tax has therefore been calculated a 25%.

The reconciliation of total tax charge in the prior year has been calculated on an average basis of the two aforementioned rates applicable in the year, resulting in average rate of 23.5%.

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


9. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2024
and 31 December 2024 166,683
AMORTISATION
At 1 January 2024
and 31 December 2024 166,683
NET BOOK VALUE
At 31 December 2024 -
At 31 December 2023 -

Company
Goodwill
£   
COST
At 1 January 2024
and 31 December 2024 166,683
AMORTISATION
At 1 January 2024
and 31 December 2024 166,683
NET BOOK VALUE
At 31 December 2024 -
At 31 December 2023 -

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


10. TANGIBLE FIXED ASSETS

Group
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 January 2024 108,994 25,062 43,878
Additions 51,874 274 1,175
Disposals - - (182 )
Exchange differences - (147 ) -
Reclassification/transfer - (580 ) -
At 31 December 2024 160,868 24,609 44,871
DEPRECIATION
At 1 January 2024 47,959 18,562 43,451
Charge for year 23,554 1,685 315
Eliminated on disposal - - (182 )
Exchange differences - (16 ) -
Reclassification/transfer - (30 ) -
At 31 December 2024 71,513 20,201 43,584
NET BOOK VALUE
At 31 December 2024 89,355 4,408 1,287
At 31 December 2023 61,035 6,500 427

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2024 70,353 48,960 297,247
Additions 12,500 5,913 71,736
Disposals - (142 ) (324 )
Exchange differences (1,726 ) - (1,873 )
Reclassification/transfer - 580 -
At 31 December 2024 81,127 55,311 366,786
DEPRECIATION
At 1 January 2024 35,006 39,652 184,630
Charge for year 10,801 7,275 43,630
Eliminated on disposal - - (182 )
Exchange differences (267 ) (4 ) (287 )
Reclassification/transfer - 30 -
At 31 December 2024 45,540 46,953 227,791
NET BOOK VALUE
At 31 December 2024 35,587 8,358 138,995
At 31 December 2023 35,347 9,308 112,617

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


10. TANGIBLE FIXED ASSETS - continued

Company
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 January 2024 108,994 21,855 43,878
Additions 49,888 274 258
Disposals - - (182 )
At 31 December 2024 158,882 22,129 43,954
DEPRECIATION
At 1 January 2024 47,959 18,402 43,451
Charge for year 23,157 1,179 132
Eliminated on disposal - - (182 )
At 31 December 2024 71,116 19,581 43,401
NET BOOK VALUE
At 31 December 2024 87,766 2,548 553
At 31 December 2023 61,035 3,453 427

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2024 32,750 48,960 256,437
Additions 12,500 5,913 68,833
Disposals - (142 ) (324 )
At 31 December 2024 45,250 54,731 324,946
DEPRECIATION
At 1 January 2024 32,750 39,652 182,214
Charge for year 2,865 7,157 34,490
Eliminated on disposal - - (182 )
At 31 December 2024 35,615 46,809 216,522
NET BOOK VALUE
At 31 December 2024 9,635 7,922 108,424
At 31 December 2023 - 9,308 74,223

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2024
and 31 December 2024 1
NET BOOK VALUE
At 31 December 2024 1
At 31 December 2023 1

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

PRS Guitars Europe B.V.
Registered office: Keizersgracht 62, 1015CS Amsterdam
Nature of business: Distributor of guitars and accessories
%
Class of shares: holding
Ordinary 100.00


12. STOCKS

Group Company
2024 2023 2024 2023
£    £    £    £   
Stocks 4,907,298 3,704,992 4,616,527 3,652,737

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade debtors 2,201,035 2,389,142 1,739,186 1,907,545
Amounts owed by group undertakings - - 741,614 513,500
Other debtors 498,702 272,055 471,962 272,055
VAT - 746,692 - 750,852
Prepayments 72,016 312,528 55,954 307,422
2,771,753 3,720,417 3,008,716 3,751,374

Included in other debtors is £428,901 (2023: £223,850) in respect of invoice discounting account.

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade creditors 607,415 744,209 606,083 713,595
Amounts owed to group undertakings 3,243,360 3,920,768 3,243,360 3,920,768
Corporation tax 97,568 274,494 86,885 268,606
Social security and other taxes 18,583 47,755 16,030 44,597
VAT 145,963 - 142,327 -
Other creditors 80,655 38,718 80,652 32,261
Accrued expenses 202,627 442,719 192,237 437,939
4,396,171 5,468,663 4,367,574 5,417,766

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2024 2023
£    £   
Within one year 122,275 105,363
Between one and five years 238,281 310,018
In more than five years 4,027 -
364,583 415,381

Company
Non-cancellable operating leases
2024 2023
£    £   
Within one year 91,786 74,075
Between one and five years 146,813 184,868
In more than five years 4,027 -
242,626 258,943

16. SECURED DEBTS

Bank borrowings are secured by fixed and floating charges over the property or undertaking of the company.

17. PROVISIONS FOR LIABILITIES

Group Company
2024 2023 2024 2023
£    £    £    £   
Deferred tax 2,602 3,837 2,602 3,837

PRS GUITARS INTERNATIONAL LIMITED (REGISTERED NUMBER: 08123415)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2024


17. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 January 2024 3,837
Credit to Statement of Comprehensive Income during year (1,235 )
Balance at 31 December 2024 2,602

Company
Deferred
tax
£   
Balance at 1 January 2024 3,837
Credit to Statement of Comprehensive Income during year (1,235 )
Balance at 31 December 2024 2,602

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,118,920 Ordinary £1 1,118,920 1,118,920

Ordinary shares hold full rights in respect of voting, dividends, and capital distribution in the event of winding up.

19. PENSION COMMITMENTS

The group operates a defined contribution pension scheme. The pension charge for the year represents contributions payable by the company to the scheme and amounted to £53,976 (2023: £33,733).

Contributions totalling £6,612 (2023: £4,923) were payable to the scheme at the end of the period and are included in other creditors.

20. RELATED PARTY DISCLOSURES

The company has taken advantage of 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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

During the year, a total of key management personnel compensation of £ 706,453 (2023 - £ 838,189 ) was paid.

21. ULTIMATE CONTROLLING PARTY

The controlling party is Paul Reed Smith Guitars Limited Partnership.

There is no ultimate controlling party due to all shareholdings being a minority.