| 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 |
| 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: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: | Antonia Aldridge-Brown FCCA |
| AUDITORS: |
| 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: |
| 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. |
| Other changes in directors holding office are as follows: |
| 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: |
| 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. |
| for and on behalf of |
| 1 Rushmills |
| Bedford Road |
| Northampton |
| Northamptonshire |
| NN4 7YB |
| 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 |
| 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 |
| Investments | 11 |
| CURRENT ASSETS |
| Stocks | 12 |
| Debtors | 13 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 14 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 17 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 18 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| 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 |
| 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 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2024 |
| 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 |
| 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 |
| Improvements to property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| 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 |
| 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 |
| AMORTISATION |
| At 1 January 2024 |
| and 31 December 2024 |
| 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 |
| Additions |
| Disposals | ( |
) |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 31 December 2024 |
| 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 |
| 11. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: Keizersgracht 62, 1015CS Amsterdam |
| Nature of business: |
| % |
| Class of shares: | holding |
| 12. | STOCKS |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Stocks | 4,907,298 | 3,704,992 |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Trade debtors | 2,201,035 | 2,389,142 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 498,702 | 272,055 |
| VAT | - | 746,692 |
| Prepayments | 72,016 | 312,528 |
| 2,771,753 | 3,720,417 |
| 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 |
| Amounts owed to group undertakings | 3,243,360 | 3,920,768 |
| Corporation tax | 97,568 | 274,494 |
| Social security and other taxes | 18,583 | 47,755 |
| VAT | 145,963 | - | 142,327 | - |
| Other creditors | 80,655 | 38,718 | 80,652 | 32,261 |
| Accrued expenses | 202,627 | 442,719 |
| 4,396,171 | 5,468,663 |
| 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 |
| Between one and five years |
| In more than five years |
| 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 |
| Credit to Statement of Comprehensive Income during year | ( |
) |
| Balance at 31 December 2024 |
| 18. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| 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. |