Company registration number 10376001 (England and Wales)
PPL PRS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PPL PRS LIMITED
COMPANY INFORMATION
Directors
C Barton
D Gopal
A Kassner
P Leathem
A C Martin
(Appointed 31 July 2024)
J Bell
(Appointed 14 February 2025)
Company number
10376001
Registered office
Mercury Place
St George Street
Leicester
LE1 1QG
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
PPL PRS LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 12
Independent auditor's report
13 - 16
Statement of comprehensive income
17
Balance sheet
18
Statement of changes in equity
19
Statement of cash flows
20
Notes to the financial statements
21 - 34
PPL PRS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Principal activities
The principal activity of PPL PRS Limited (the 'Company') for the year ended 31 December 2024 was the collection of UK income in respect of live performances of musical works and public performance of sound recordings on behalf of songwriters, publishers, composers, record companies and performers for distribution to the Company’s shareholders (Phonographic Performance Limited (PPL) and PRS for Music Limited (PRS)) and subsequent distribution to their members.
The Company is a joint venture that was created by PPL and PRS for the purpose of providing a single point of contact for public performance music licensing, consequently making it easier for customers to obtain music licences. The Company commenced public performance licensing operations on behalf of its shareholders on 26 February 2018.
Review of the business
The Statement of Comprehensive Income shows a profit before taxation in the year of £771,885 (2023 - £666,588). The directors consider the results for the financial year to be a fair and accurate reflection of activity.
Key performance indicators
The Company carries out public performance music licensing and aims to collect the full extent of royalties due to PPL and PRS and their respective members. The royalties collected are subject to deduction of the Company’s operating costs. The Company therefore considers its financial key performance indicators to be invoicing, cash collection and the cost to invoicing ratio.
Total invoicing in the year was £406,601,635 (2023 - £ 370,664,420).
Total cash collected in the year was £ 398,467,192 (2023 - £ 365,514,094).
Total operating costs were £23,503,921 in the year (2023 - £ 22,831,976).
The Company also monitors a variety of non-financial key performance indicators.
PPL PRS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
The directors are aware of their responsibilities for managing risk and regularly evaluate the risks and uncertainties that could impact on future performance. The Company maintains a risk register which captures emerging and established risks and is reviewed at meetings of its Risk and Audit Committee.
Principal risks actively managed by the Company include economic conditions and the trading environment, security and resilience of information technology, business continuity, and talent attraction and retention.
Financial risk management
The Company’s operations expose it to a variety of financial risks that include price risk, liquidity risk and credit risk. The directors have delegated the responsibility of monitoring financial risk management to the Risk and Audit Committee, a sub-committee of the Board. The policies set by the Board of directors via the Committee are implemented by the Company’s Finance Department.
Liquidity risk is mitigated by the active management of cash generation and funding requirements. The Company has no exposure to equity securities price risk as it holds no listed or other equity investments. Credit risk arises from cash and cash equivalents with banks and financial institutions, as well as credit exposure to customers.
PPL PRS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Corporate governance arrangements
The Board contains three directors appointed by PPL and three directors appointed by PRS.
There are six scheduled Board meetings during each year. The Company has a corporate governance framework in place, including matters reserved for shareholder approval and a scheme of delegated authority.
The Board is supported by a sub-committee, the Risk and Audit Committee. There are also various shareholder groups, which include directors and/or senior management from each of the Company’s shareholder organisations.
Section 172(1) statement
The directors are aware of their duty under s172(1) of the Companies Act 2006 to act in the way in which they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:
the likely consequences of any decision in the long term;
the interests of the Company’s employees;
the need to foster the Company’s business relationships with suppliers, customers and others;
the impact of the Company’s operations on the community and the environment;
the desirability of the Company maintaining a reputation for high standards of business conduct; and
the need to act fairly as between members of the Company.
The directors have identified the following issues, factors and stakeholders as relevant in complying with their duties under Section 172(1) of the Companies Act 2006 and set out below how these have been considered and impacted their principal decisions during the year.
Issues and factors
In seeking to promote the success of the Company (including over the longer-term), the directors have particular regard to growing the revenue that it collects on behalf of its shareholders, the timely collection of cash from licensees and prudent management of costs as well as service improvements. In so doing, it is important to maintain a good business reputation and maintain strong relationships with stakeholders. The directors have set a series of strategic objectives for the Company and progress is monitored against key performance indicators.
Engagement with key stakeholders
The Company's key stakeholders have been identified based on the nature and extent of the Company’s operations as a provider of public performance music licensing.
Customers: The Company engages with its customers through a variety of channels and takes their feedback on board wherever possible to improve the quality of its service. It also monitors several key performance indicators in respect of customer service.
Employees: The Company issues employee engagement surveys and conducts periodic staff briefings. It also maintains an employee forum and several diversity and inclusion affinity groups. It monitors several key performance indicators in respect of employee engagement and retention, and has pay progression and incentive schemes for its staff.
Suppliers: The Company holds monthly meetings with each of its key suppliers. The Company is committed to using small, independent local suppliers where possible and makes a concerted effort to pay its suppliers by the contracted due date.
PPL PRS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Community: The Company engages with local businesses through trade groups and supports several local charities.
Environment: The Company takes all reasonable steps to minimise any detrimental impact that its operations may have on the environment. Examples include a season ticket loan scheme to support employees to commute to the office using public transport, and a company car fleet of low emission petrol, hybrid and electric vehicles.
Shareholders: The Company is run for the benefit of its shareholders and, ultimately, the members of PPL and PRS. The Company works closely with its shareholders on a regular basis, ensuring it is operating in alignment with their interests and benefiting from their expertise. For more information, see the Corporate governance arrangements section above.
Impact on principal decisions during the year
The directors approved the annual budget and updated strategic plan for the Company. In making such decisions, the directors considered the issues and factors described above and engaged with the Company’s shareholders at length.
The directors appointed Greg Aiello as the Managing Director of the Company, following his previous role as the Company’s Commercial Director. This appointment was made with the approval of the Company’s shareholders and demonstrated successful succession planning.
The directors reviewed the results of the Company’s annual employee engagement survey, and action plans have been implemented based on employee feedback. Improvements were also made to the Company’s information technology systems. In doing so, suppliers and shareholders were engaged, and the impact to customers was considered.
The Company completed initiatives to align with shareholder priorities, for example to support implementation of public performance tariffs. Preparations also began to voluntarily produce ethnicity gap reporting in the future, in alignment with the diversity goals of shareholders and UK Music, as well as the Company’s commitment to being an employer of choice.
The Company supported the creation of the Leicester Music Board, which champions the music scene in the local community.
The directors consider that they have acted in a way that they consider would be most likely to promote the success of the Company as a whole in the decisions taken during the year ended 31 December 2024, having regard to the matters set out in s172(1)(a-f) of the Act.
PPL PRS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
C Barton
Director
11 July 2025
PPL PRS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 17.
No ordinary dividends were paid (2023 - £Nil). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
C Barton
A Geissmar
(Resigned 14 February 2025)
L Golding
(Resigned 31 July 2024)
D Gopal
A Kassner
P Leathem
H Sachdev
(Resigned 8 July 2024)
A C Martin
(Appointed 31 July 2024)
J Bell
(Appointed 14 February 2025)
Qualifying third party indemnity provisions
The Company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity provision was in force during the year and up to the date of approval of the Directors’ report.
PPL PRS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
Corporate social responsibility
The Company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors’ continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.
Health and safety
The Company is committed to achieving the highest practicable standards in health and safety management and strives to make the office a safe environment for employees and customers alike.
Equal opportunities
The Company is committed to providing equal opportunities to all employees, consultants, contractors, customers, agency workers and members of and applicants to the Company and does not discriminate on grounds of sex, pregnancy, maternity, sexual orientation, gender re-assignment, marital or civil partnership status, race (to include colour, nationality, ethnic or national origins), religion or belief, disability, or age.
The Company aims to ensure that workers are selected, trained, compensated, promoted or transferred solely on the strength of their ability, skills, qualification and merit, and this remains the case if an employee should become disabled during their employment This can only be achieved with the support of all staff, and it is the Company’s responsibility to ensure that the equal opportunities policy is observed and to understand clearly that there is a moral and legal duty not to discriminate against individuals on any of the grounds mentioned above.
Any matters of concern can be discussed on a confidential basis with a member of the management team or the People Services team.
Employees
The Company recognises that its most important resource is its people. The Company ensures that staff are briefed regarding Company developments, has appropriate incentive and career progression arrangements in place, and also ensures that the views of its employees are considered in making decisions which are likely to affect their interests. For further information, see the Section 172(1) statement in the Strategic report.
Future developments
The directors are aware that its customers will require the Company to continue to improve the efficiency of the services that it delivers. The Company continues to pursue a series of initiatives to deliver greater efficiency, including longer term strategic objectives.
Auditor appointment
The Company anticipates re-appointment of incumbent auditors pursuant to section 487(2) Companies Act 2006.
PPL PRS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
Energy and carbon report
The Company remains committed to reducing the energy consumption and the carbon impact of its operations. This requires investment in the new technologies and behaviour change.
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Electricity purchased
264,649
254,830
- Fuel consumed for transport
251,995
392,104
516,644
646,934
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
24.78
27.96
24.78
27.96
Scope 2 - indirect emissions
- Electricity purchased
54.80
52.77
Total gross emissions
79.58
80.73
Intensity ratio
SECR Tonnes CO2e per employee
0.32
0.32
Tonnes CO2e per 1000 music licences
0.33
0.34
PPL PRS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Quantification and reporting methodology
The emissions for reporting are calculated and compiled in accordance with the UK Government’s Reporting Guidelines for Company Report. Data has been reviewed and verified by a third-party (Adler and Allan). GHG calculations have been performed using the Greenhouse Gas Protocol Corporate Reporting Standards (GHG Protocol) and ISO14064-1:2018 Greenhouse Gases – Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. All emissions calculations use up to date GHG Conversion Factors for Company Report (BEIS) and are reported as carbon dioxide equivalent (CO2e), accounting for all major greenhouse gases.
PPL PRS is committed to playing its part in reducing environmental impact and tackling climate change. Based on the previous financial year, our total energy consumption and overall location-based emissions have reduced by 20.14% and 1.4%, respectively, however our market-based emissions have reduced by 69.3% following the transition to a 100% renewable electricity tariff at our head office in December 2023. Both total emissions per licence and employee have decreased by 14% in the last 12 months, highlighting that we are now less carbon intensive in both absolute and relative terms when compared to the previous financial year.
The energy use from electricity is reported for the period from 25th December 2023 to 24th December 2024, obtained from the itemised bills produced by the electricity provider. This is similar for the financial year from 25th December 2022 to 24th December 2023. The carbon and energy factors have been identified for various activities based on the UK government ‘GHG Conversion Factors 2024’ tables published by the ‘Department for Energy Security & Net Zero’ and ‘Department for Environment Food & Rural Affairs’. Transport emissions and associated energy use related to company owned vehicles, are calculated using conversion factors corresponding to an ‘executive car’ based on fuel such as petrol, diesel, electric and hybrid-electric fuel based on the information of vehicles. For emissions related to rental cars or employee-owned vehicles, the overall amount reimbursed is provided by the client, and travel distance calculations have been anticipated based on market standards for mileage and as per HMRC mileage claim rates, and using conversion factors corresponding to an ‘average’ sized car using ‘unknown’ fuel, due to the lack of specific information about the vehicles in use. Gas is not used by the company for any purpose. The refrigerant used in the heating/cooling system is R410A, no fugitive emissions are identified for the reporting year.
The emission from travel by company owned vehicles is considerably reduced for the year 2024 compared to the baseline year 2020. No diesel vehicles were included in the company owned fleet during 2024 and electric and electric hybrid vehicles continue to be promoted since 2022.
The usage of gas is eliminated in the building since the base year, as the company is following sustainable practices however, the purchased electricity for the office consumption has increased year on year between 2020 and 2024, there was no emission reduction reflected in this building due to the decarbonisation of the UK electricity supply.
Intensity measurement
The intensity ratios used, specific to the office and the business, are respectively; the amount of Carbon equivalent emission per employee and per 1000 music licenses.
PPL PRS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Measures taken to improve energy efficiency
PPL PRS Limited is committed to sustainability and has taken measures wherever possible, to reduce their carbon footprint and the consequent impact on climate change. The following incentives were already in place before the reporting year:
Cycle to work scheme.
Travel loans.
Travel discounts.
Car-sharing incentive.
Hybrid working, including working from home, flexible working and reduction in ‘on-the-road’ staff.
Removal of diesel cars from fleet.
Replacing older cars with new modern cars.
Travel loans and Travel discount policy.
Replacing diesel vehicles from the company fleet with petrol, electric and electric-hybrid vehicles at the end of 2022, helped in considerable emission reduction for the year 2023, and continues to provide for lower emissions in 2024. In addition to the new strategies introduced during 2023, all electricity consumed in the offices is now from 100% renewable sources (since December 2023).
Reaction to Climate Change as a Business Strategy
The goal of the company remains to reach net-zero carbon emissions and various strategies are employed:
Sustainable procurement and recycling: Wherever possible, local and sustainability-oriented suppliers are chosen. Local purchases were encouraged to be within less than 30 miles. All packaging material, ink cartridges and other recyclable items are recycled. A single supplier of food and milk has been in use since 2023, helping reduce the transportation and packaging related emissions.
Reduce Paper: A fewer number of bins are provided and the collections since 2022 have resulted in less paper usage and thereby the use of fresh paper associated with reducing carbon footprint.
Decarbonising company vehicle fleet: Changing of diesel vehicles to petrol, electric and electric hybrid helped in reducing the direct emissions.
Awareness and responsible attitude: The employees are educated as to the need for awareness and responsibility. Use of shared and public forms of transport and low-emission vehicles is encouraged. Work hours and location are flexible. Employees are allowed a (work) day per year to volunteer for charities and other local causes.
Building energy use reduction: The consumption of building level energy and associated Scope 2 emissions have gradually increased year on year since the base reporting year. Since December 2023 all electricity consumed in the head office building is from 100% renewable sources. For completeness however, we continue to report the kWh consumption.
PPL PRS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Reaction to Climate Change as a Business Strategy
The goal of the company remains to reach net-zero carbon emissions and various strategies are employed:
Sustainable procurement and recycling: Wherever possible, local and sustainability-oriented suppliers are chosen. Local purchases were encouraged to be within less than 30 miles. All packaging material, ink cartridges and other recyclable items are recycled. A single supplier of food and milk has been identified and these supplies reduces the transportation and packaging related emissions.
Reduce Paper: A fewer number of bins are provided and the collections resulted in less paper usage and thereby the use of fresh paper associated with reducing carbon footprint.
Decarbonising company vehicle fleet: Changing of diesel vehicles to petrol, electric and electric hybrid helped in reducing the direct emissions. Further steps shall be taken to eliminate the use of fossil fuels gradually to reduce the Scope 1 emissions.
Awareness and responsible attitude: The employees are educated as to the need for awareness and responsibility. Use of shared and public forms of transport and low-emission vehicles is encouraged. Work hours and location are flexible. Employees are allowed a (work) day per year to volunteer for charities and other local causes.
Building energy use reduction: The consumption of building level energy and associated Scope 2 emissions are gradually increasing year by year since the reporting year. Hence a detailed energy survey is proposed to identify the efficient strategies to implement in the organisation.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
PPL PRS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Going Concern
The Statement of financial position reflects net assets of £858,854 (2023 - net assets of £285,277) and net current assets of £4,334,710 (2023 - (£4,943,655)). Included within net liabilities are total loans with parent undertakings of £5,635,333 (2023 - (£7,090,110)). Both shareholders have signed a letter of support confirming their intention to support the Company for a period of no less than 12 months from the signing of these financial statements.
Based on the above, the Directors believe that the Company has sufficient funds to meet its liabilities as they fall due for a period of at least 12 months and, therefore, these financial statements have been prepared and signed on a going concern basis.
On behalf of the Board
C Barton
Director
11 July 2025
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PPL PRS LIMITED
- 13 -
Opinion
We have audited the financial statements of PPL PRS Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 company's affairs as at 31 December 2024 and of its 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.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PPL PRS LIMITED (CONTINUED)
- 14 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PPL PRS LIMITED (CONTINUED)
- 15 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company and the industry in which it operates, we identified that the
principal risks of non-compliance with laws and regulations related to the acts by the company, which were
contrary to applicable laws and regulations including fraud and the Collective Management of Copyright (EU Directive) Regulations 2016 and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflating the cost base due to how revenue is recognised.
Audit procedures performed included:
Enquiry of management regarding any instances of actual or potential fraud during the year;
Assessment of fraud prevention and detection procedures within the company;
Reviewing minutes of meetings of those charged with governance;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
Enquiry of management regarding actual and potential litigation and claims, or any potential breaches of laws and regulations;
Review of intangible asset capitalisation policy to ensure it meets the development cost capitalisation policy;
Reviewed the reconciliations of intercompany balances and financial statement disclosures;
Auditing of the bank reconciliations, and
Reviewing financial statement disclosures prepared by management and testing to supporting documentation to assess compliance with applicable laws and regulations.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PPL PRS LIMITED (CONTINUED)
- 16 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
David Allum
Senior Statutory Auditor
For and on behalf of UHY Hacker Young
11 July 2025
Chartered Accountants
Statutory Auditor
PPL PRS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2024
2023
Notes
£
£
Turnover
3
24,658,398
23,916,710
Administrative expenses
(23,503,921)
(22,831,976)
Operating profit
4
1,154,477
1,084,734
Interest receivable and similar income
131,635
96,390
Interest payable and similar expenses
8
(514,227)
(514,536)
Profit before taxation
771,885
666,588
Tax on profit
9
(198,308)
(246,865)
Profit for the financial year
573,577
419,723
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PPL PRS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 18 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
553,630
562,156
Tangible assets
11
645,122
833,173
1,198,752
1,395,329
Current assets
Debtors
13
103,035,205
94,399,361
Cash at bank and in hand
3,951,402
3,388,952
106,986,607
97,788,313
Creditors: amounts falling due within one year
14
(102,651,897)
(92,844,658)
Net current assets
4,334,710
4,943,655
Total assets less current liabilities
5,533,462
6,338,984
Creditors: amounts falling due after more than one year
15
(4,226,500)
(5,635,333)
Provisions for liabilities
Provisions
16
422,016
362,785
Deferred tax liability
17
26,092
55,589
(448,108)
(418,374)
Net assets
858,854
285,277
Capital and reserves
Called up share capital
19
100,000
100,000
Profit and loss reserves
20
758,854
185,277
Total equity
858,854
285,277
The financial statements were approved by the Board of directors and authorised for issue on 11 July 2025 and are signed on its behalf by:
C Barton
Director
Company registration number 10376001 (England and Wales)
PPL PRS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
100,000
(234,446)
(134,446)
Year ended 31 December 2023:
Profit and total comprehensive income
-
419,723
419,723
Balance at 31 December 2023
100,000
185,277
285,277
Year ended 31 December 2024:
Profit and total comprehensive income
-
573,577
573,577
Balance at 31 December 2024
100,000
758,854
858,854
PPL PRS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
2,860,685
2,694,727
Income taxes paid
(198,452)
(164,574)
Net cash inflow from operating activities
2,662,233
2,530,153
Investing activities
Purchase of intangible assets
(202,369)
(200,910)
Purchase of tangible fixed assets
(60,045)
(50,718)
Interest received
131,635
96,390
Net cash used in investing activities
(130,779)
(155,238)
Financing activities
Repayment of borrowings
(1,454,777)
(2,593,693)
Interest paid
(514,227)
(514,536)
Net cash used in financing activities
(1,969,004)
(3,108,229)
Net increase/(decrease) in cash and cash equivalents
562,450
(733,314)
Cash and cash equivalents at beginning of year
3,388,952
4,122,266
Cash and cash equivalents at end of year
3,951,402
3,388,952
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
1
Accounting policies
Company information
PPL PRS Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mercury Place, St George Street, Leicester, LE1 1QG.
The company is a joint venture that was created by PPL and PRS for the purpose of providing a single point of contact for public performance music licensing, consequently making it easier for customers to obtain music licenses. The Company commenced public performance licensing operations on behalf of its shareholders on 26 February 2018.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The Company issues licences on behalf of the parent companies, acting as their agent. Licence fees invoiced to customers are therefore recorded as revenue in the parent companies. The Company’s revenue stated in the financial statements is the recharge to the parent companies of the expenditure, plus a margin, incurred in respect of operating the joint venture. All operating expenditure is recharged back to the parents.
1.4
Intangible fixed assets other than goodwill
Website development and licensing system software costs are stated at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
5 years on a straight line basis
Website development costs
5 years on a straight line basis
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold Improvements
10% straight-line basis
Fixtures and fittings
10% straight-line basis
Computer Equipment
33% straight-line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 23 -
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Dilapidation provision
A provision is made for dilapidations where the lease requires the reinstatement of the premises to its original state. The level of provision is based upon a damages report and is reviewed annually.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 24 -
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Trade Debtors
Trade receivables arise as a result of the company raising invoices for joint licences on behalf of PRS for Music Limited, Video Performance Limited and Phonographic Performance Limited. The associated royalty revenue is recognised by those entities, and not by the company. There is a significant debtor balance of debt due from license fees issued but not yet received which is ultimately owed to the above parties. Some of this is the subject of legal action as it is over the usual credit terms allowed.
Due to the legal position of the licence fees, there is a zero tolerance approach taken to licences and all debts are pursued through the courts and in the case of infringements, damages are sought in addition to the licence fee.
The debtor balances are discussed regularly with the management team of the aforementioned entities and written back if and when deemed necessary. Any bad debt provision is recognised by these entities and does not directly impact the profit of PPL PRS Limited.
Management are therefore confident that the debts of the company are fully recoverable and that no write off provisions are required at the period end. Given the agency nature of the company, in the event that any trade debts were subsequently found to be irrecoverable, there would be a corresponding reduction in liabilities to the parent companies.
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
3
Turnover and other revenue
The company’s turnover is derived from the operating of invoicing and collection of cash from licensing on behalf of its parent companies in a non-principal way. All turnover is generated in the UK.
2024
2023
£
£
Other revenue
Interest income
131,635
96,390
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(163)
Depreciation of owned tangible fixed assets
248,096
276,555
Amortisation of intangible assets
210,895
861,204
Operating lease charges
387,811
315,669
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
44,500
42,000
For other services
Taxation compliance services
6,600
6,000
6
Employees
The average monthly number of persons employed by the company during the year was:
2024
2023
Number
Number
252
252
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 26 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
9,958,587
8,848,356
Social security costs
1,004,883
868,238
Pension costs
552,097
413,913
11,515,567
10,130,507
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
45,778
44,264
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
514,227
514,536
Interest payable arises on the loans from the parent companies. The loans are repayable over a 6-year term, with agreed annual interest charges 2% above the applicable interest rate (Bank of England base rate).
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
227,805
198,451
Adjustments in respect of prior periods
(7,175)
Total current tax
227,805
191,276
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
2024
2023
£
£
(Continued)
- 27 -
Deferred tax
Origination and reversal of timing differences
(29,497)
(25,713)
Adjustment in respect of prior periods
81,302
Total deferred tax
(29,497)
55,589
Total tax charge
198,308
246,865
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
771,885
666,588
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
192,971
156,781
Tax effect of expenses that are not deductible in determining taxable profit
5,337
6,125
Adjustments in respect of prior years
(7,175)
Effect of change in corporation tax rate
(1,453)
Fixed asset differences
10,950
Other permanent differences
335
Deferred tax adjustments in respect of prior years
81,302
Taxation charge for the year
198,308
246,865
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
10
Intangible fixed assets
Software
Website development costs
Total
£
£
£
Cost
At 1 January 2024
20,905,443
113,407
21,018,850
Additions
202,369
202,369
At 31 December 2024
21,107,812
113,407
21,221,219
Amortisation and impairment
At 1 January 2024
20,343,287
113,407
20,456,694
Amortisation charged for the year
210,895
210,895
At 31 December 2024
20,554,182
113,407
20,667,589
Carrying amount
At 31 December 2024
553,630
553,630
At 31 December 2023
562,156
562,156
11
Tangible fixed assets
Leasehold Improvements
Fixtures and fittings
Computer Equipment
Total
£
£
£
£
Cost
At 1 January 2024
1,572,031
311,576
407,324
2,290,931
Additions
60,045
60,045
At 31 December 2024
1,572,031
311,576
467,369
2,350,976
Depreciation and impairment
At 1 January 2024
965,104
187,358
305,296
1,457,758
Depreciation charged in the year
161,049
31,813
55,234
248,096
At 31 December 2024
1,126,153
219,171
360,530
1,705,854
Carrying amount
At 31 December 2024
445,878
92,405
106,839
645,122
At 31 December 2023
606,927
124,218
102,028
833,173
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
12
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
99,367,252
90,349,476
Carrying amount of financial liabilities
Measured at amortised cost
104,942,288
96,550,883
Financial asset debt instruments measured at amortised cost represents trade debtors and other debtors.
Financial liabilities measured at amortised cost represents trade creditors, amounts due to parent undertakings, other creditors and accruals.
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
98,664,810
90,042,682
Amounts owed by group undertakings
394,915
Other debtors
2,125,982
2,689,050
Prepayments and accrued income
1,849,498
1,667,629
103,035,205
94,399,361
Trade receivables arise as a result of the company raising invoices for joint licences on behalf of PRS for Music Limited, Video Performance Limited and Phonographic Performance Limited. The associated royalty revenue is recognised by PRS for Music Limited, Video Performance Limited and Phonographic Performance Limited, and not by the company.
Due to the legal position of the licence fees, there is a zero tolerance approach taken to licences and all debts are pursued through the courts and in the case of infringements, damages are sought in addition to the licence fee.
Management are therefore confident that the debts of the Company are fully recoverable and that no provisions are required at the year end. Given the agency nature of the Company, in the event that any trade debts were subsequently found to be irrecoverable, there would be a corresponding reduction in liabilities to the parent companies.
Amounts owed by parent undertakings are unsecured, interest free and are repayable on demand.
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Loans with parent undertakings payable
1,408,833
1,454,777
Trade creditors
227,278
261,903
Amounts owed to group undertakings
99,007,105
89,131,435
Corporation tax
227,805
198,452
Other taxation and social security
231,710
195,611
Other creditors
72,572
67,435
Accruals and deferred income
1,476,594
1,535,045
102,651,897
92,844,658
Loans with parent undertakings are now repayable over a 6 year term ending in 2028, with agreed interest charges of 2% (2023 - 2%) above the applicable interest rate (Bank of England base rate).
We draw your attention to note 2 and 13 in the accounts which explains the relationship between amounts owed to group undertakings and trade debtors.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Loans with parent undertakings falling due between one and five years
4,226,500
5,635,333
Loans with parent undertakings are now repayable over a 6 year term ending in 2028, with agreed interest charges of 2% (2023 - 2%) above the applicable interest rate (Bank of England base rate).
We draw your attention to note 2 and 13 in the accounts which explains the relationship between amounts owed to group undertakings and trade debtors.
16
Provisions for liabilities
2024
2023
£
£
Other provision
25,000
25,000
Dilapidation provision
397,016
337,785
422,016
362,785
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
16
Provisions for liabilities
(Continued)
- 31 -
Movements on provisions:
Other provision
Dilapidation provision
Total
£
£
£
At 1 January 2024
25,000
337,786
362,786
Additional provisions in the year
-
59,230
59,230
At 31 December 2024
25,000
397,016
422,016
Other provisions includes liabilities relating to pensions.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
44,588
65,985
Short term timing differences
(18,496)
(10,396)
26,092
55,589
2024
Movements in the year:
£
Liability at 1 January 2024
55,589
Charge to profit and loss in respect of previous year
(29,497)
Liability at 31 December 2024
26,092
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
552,097
413,913
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
20
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
185,277
(234,446)
Profit for the year
573,577
419,723
At the end of the year
758,854
185,277
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
305,808
325,660
Between two and five years
342,254
645,280
648,062
970,940
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
22
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Phonographic Performance Limited
9,425,270
9,224,881
(182,664)
(195,516)
PRS for Music Limited
15,233,127
14,691,829
(311,990)
(268,910)
Amounts due to / from related parties
Creditors
Debtors
2024
2023
2024
2023
£
£
£
£
Phonographic Performance Limited
(29,697,932)
(29,119,878)
164,044
-
PRS for Music Limited
(69,309,173)
(60,011,557)
230,870
-
2024
2023
Laons due to related parties
£
£
Phonographic Performance Limited
2,817,667
3,568,027
PRS for Music Limited
2,817,667
3,522,083
23
Ultimate controlling party
Phonographic Performance Limited and PRS for Music Limited each hold 50,000 (2023 - 50,000) ordinary shares equal to a 50% (2023 - 50%) equity investment in PPL PRS Limited. Therefore, there is no ultimate controlling party.
PPL PRS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
573,577
419,723
Adjustments for:
Taxation charged
198,308
246,865
Finance costs
514,227
514,536
Investment income
(131,635)
(96,390)
Amortisation and impairment of intangible assets
210,895
861,204
Depreciation and impairment of tangible fixed assets
248,096
276,555
Increase/(decrease) in provisions
59,231
(170,686)
Movements in working capital:
Increase in debtors
(8,635,844)
(10,628,420)
Increase in creditors
9,823,830
11,271,340
Cash generated from operations
2,860,685
2,694,727
25
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
3,388,952
562,450
3,951,402
Borrowings excluding overdrafts
(7,090,110)
1,454,777
(5,635,333)
(3,701,158)
2,017,227
(1,683,931)
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