REGISTERED NUMBER: |
| EMPOWER TRIBE INNOVATIONS UK LTD. |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
REGISTERED NUMBER: |
| EMPOWER TRIBE INNOVATIONS UK LTD. |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
EMPOWER TRIBE INNOVATIONS UK LTD. |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Station House |
North Street |
Havant |
Hampshire |
PO9 1QU |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
The Directors present the Strategic Report for Empower Tribe Innovations UK LTD ("the Company") for the financial year ended 31 December 2024. This report provides an overview of the Company's performance, key strategic initiatives, and significant developments throughout the year. It also highlights the principal risks and uncertainties that could impact the Company’s future operations and performance, offering insight into how these factors are being managed to ensure long-term growth and sustainability. |
REVIEW OF BUSINESS |
The Company operates across various segments of the audio industry, including: |
Retail: | Selling audio equipment and related products to customers through various sales channels. |
Production : | Manufacturing audio equipment and components to support the Group’s product portfolio. |
Distributio n: | Managing logistics and supply chain operations to ensure efficient product delivery. |
Developm ent: | Conducting Research and Development (R&D) to innovate and improve audio technology. |
Marketing: | Promoting products through various campaigns, branding efforts, and market expansion initiatives. |
In the past year, the Company maintained a strong focus on its Research and Development (R&D) initiatives, as well as the supply of spare parts to customers and end users. This focus supports the long-term sustainability of the business by ensuring continuous product innovation and after-sales support. |
During the financial year, the Company expanded its portfolio by acquiring three subsidiaries from other entities within the wider Group: |
1. Music Tribe Brands DK1 A/S (Denmark) |
2. Music Tribe DE1 GmbH (Germany) |
3. Music Tribe Brands SE1 AB (Sweden) |
These acquisitions strengthen the Group’s operational presence in Europe, enhancing its ability to serve key markets more effectively. |
Given the Company's cost-plus pricing methodology, profitability is directly influenced by operating expenses incurred throughout the year. This model ensures that costs are covered while maintaining a stable margin. |
To sustain its competitive position, the Company continues to invest in Research and Development. This ongoing commitment ensures that its product offerings remain innovative and aligned with evolving market demands. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Company acknowledges several macroeconomic challenges that may impact its operations, including: |
Shifts in consumer spending patterns post-COVID: |
Changes in purchasing behavior and economic recovery trends affect demand for audio products. |
Prolonged Ukraine-Russia conflict: |
Ongoing geopolitical instability may disrupt supply chains and increase operational costs. |
High consumer inflation: |
Rising inflation in key markets could impact disposable income and purchasing power, potentially affecting sales. |
Despite these challenges, the Company remains confident in maintaining profitability in 2025, leveraging its operational efficiencies and strategic initiatives to adapt to market conditions. |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
Financial key performance indicators |
Profitability Outlook: |
The Directors anticipate that the Company’s profitability in 2025 will be consistent with that of 2024, driven by controlled costs and sustained revenue streams. |
Operational Efficiency: |
The Company continues to focus on cost management and resource optimization to maintain financial stability. |
Market Positioning: |
Investments in R&D and subsidiary acquisitions are expected to contribute to long-term growth and competitive advantage. |
ON BEHALF OF THE BOARD: |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of The principal activity of the company in the year under review was that of retail, production, distribution, development and marketing of audio and related equipment. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2024. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the 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 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 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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
AUDITORS |
The auditors, MC Audit Limited, 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 |
EMPOWER TRIBE INNOVATIONS UK LTD. |
Opinion |
| We have audited the financial statements of Empower Tribe Innovations Uk Ltd. (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2024 and of its loss for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the 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 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 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 |
EMPOWER TRIBE INNOVATIONS UK LTD. |
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 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, 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EMPOWER TRIBE INNOVATIONS UK LTD. |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
From discussion with management and those charged with governance information about the entity is documented to assess the activity within the organisation. We discuss management's assessment of risk in respect of irregularities, fraud and going concern. |
Based on these discussions and our own assessments we determined that the key risk areas were income recognition in respect of cut off issues, management override concerning the size of the organisation. |
We set financial statement materiality level based on the level of profit. As a trading company, profit is its primary focus which is why profit was used to determine the level of materiality. Our overall assessment of risk was used to determine performance materiality at an appropriate level. |
Substantive audit tests were designed after assessing and testing systems and controls. The systems and controls which have been designed to act as a preventative measure against fraud and error were operating as documented. Substantive testing tested a sample of the population, representative of the population, to identify errors. The testing did not identify any material misstatements in areas tested. |
Audit substantive tests concluded no material errors over the key risk areas of income recognition and management override. |
The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate to the organisation. |
Management assessed there is no going concern risk. The audit undertook a review of budgets and management accounts and came to the same conclusion as management. |
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 |
Statutory Auditors |
Station House |
North Street |
Havant |
Hampshire |
PO9 1QU |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(80,450,866 | ) | 740,912 |
Other operating income | 5 |
OPERATING (LOSS)/PROFIT | 7 | ( | ) |
Income from shares in group undertakings |
(60,578,366 | ) | 746,297 |
Interest payable and similar expenses | 10 |
(LOSS)/PROFIT BEFORE TAXATION | ( | ) |
Tax on (loss)/profit | 11 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( | ) |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( | ) |
OTHER COMPREHENSIVE INCOME |
Pension surplus not recognised | 163,000 | 675,000 |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX | 163,000 | 675,000 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (61,018,358 | ) | 1,104,918 |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
BALANCE SHEET |
31 DECEMBER 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
CURRENT ASSETS |
Stocks | 16 |
Debtors | 17 |
Cash at bank | 18 |
CREDITORS |
Amounts falling due within one year | 19 |
NET CURRENT (LIABILITIES)/ASSETS | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 22 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Capital contribution | 24 |
Pension asset not recognised | 24 |
Retained earnings | 24 | ( | ) | ( | ) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
Called up | Pension |
share | Retained | Capital | asset not | Total |
capital | earnings | contribution | recognised | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2023 | ( | ) |
Prior year adjustment | - | - | - |
As restated | ( | ) |
Changes in equity |
Total comprehensive income | - | (245,082 | ) | 429,918 |
Balance at 31 December 2023 | ( | ) |
Changes in equity |
Total comprehensive income | - | ( | ) | ( | ) |
No description | - | - | 59,295,000 | - | 59,295,000 |
Prior year adjustment | - | 1,292,563 | - | - | 1,292,563 |
Balance at 31 December 2024 | ( | ) |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( | ) |
Interest paid | ( | ) |
Tax paid | ( | ) | ( | ) |
Net cash from operating activities | ( | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( | ) |
Purchase of tangible fixed assets | ( | ) | ( | ) |
Purchase of fixed asset investments | (97,070,328 | ) | - |
Sale of intangible fixed assets |
Sale of tangible fixed assets |
Liquidation distribution |
Dividends received |
Net cash from investing activities | ( | ) |
Cash flows from financing activities |
Capital injection by parent company | 59,295,000 | - |
Interest paid | ( | ) |
Net cash from financing activities | ( | ) |
Increase/(decrease) in cash and cash equivalents | ( | ) |
Cash and cash equivalents at beginning of year | 2 | 5,986,416 |
Cash and cash equivalents at end of year | 2 | 34,991,645 | 151,514 |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
1. | RECONCILIATION OF (LOSS)/PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
(Loss)/profit for the financial year | ( | ) |
Depreciation charges |
Profit on disposal of fixed assets | ( | ) |
Impairment of fixed assets | 438,963 | 57 |
Amortisation charges | 1,603 | 3,560 |
Foreign exchange losses | 2,835,098 | - |
Impairment on investments | 82,228,453 | - |
Corporation tax received | - | 27,974 |
Finance costs | 15,583 | 102,810 |
Finance income | (19,872,500 | ) | - |
Taxation |
5,239,840 | 1,051,682 |
Decrease/(increase) in stocks | ( | ) |
Decrease in trade and other debtors |
Increase/(decrease) in trade and other creditors | ( | ) |
Cash generated from operations | ( | ) |
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 | 34,991,645 | 151,514 |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 151,514 | 5,986,416 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.24 | Cash flow | At 31.12.24 |
£ | £ | £ |
Net cash |
Cash at bank | 151,514 | 34,840,131 | 34,991,645 |
151,514 | 34,991,645 |
Total | 151,514 | 34,840,131 | 34,991,645 |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
1. | GENERAL INFORMATION |
Empower Tribe Innovations Uk Ltd. is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
The Company specializes in producing high-quality products for the professional audio, music production, and entertainment industries. Its expertise lies in the design and manufacturing of advanced audio equipment, including mixing consoles, amplifiers, loudspeakers, microphones, audio interfaces, synthesizers, and digital effects processors. |
As part of its strategic evolution, the Company is gradually transitioning its operations from traditional production and manufacturing to focusing on research and experimental development in the fields of engineering. This shift is aimed at driving innovation and enhancing the Company’s competitive edge in the evolving technology landscape. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
The financial statements have been prepared on a going concern basis. The directors have assessed the company’s ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. |
In making this assessment, the directors have considered the company’s current financial position, including its cash flow forecasts and available financing facilities. They have taken into account the potential impacts of known and reasonably foreseeable changes in trading performance, market conditions, and other relevant risk factors. |
Based on this review, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. |
Exemption from preparing consolidated financial statements |
| The Company has taken advantage of the exemption under Section 401 of the Companies Act 2006, which allows subsidiaries to be exempt from preparing consolidated financial statements. The Company is a wholly owned subsidiary of Music Tribe HQ FZE, a company incorporated in the United Arab Emirates, which prepares and files consolidated financial statements that include the results of the Company. |
| The consolidated financial statements of Music Tribe HQ FZE are publicly available from: |
| LB181504WS13 |
| Jebel Ali Freezone |
| Dubai |
| United Arab Emirates |
| As a result, these financial statements present only the individual financial position and performance of the Company, in accordance with the exemption provided by the Act. |
Related party exemption |
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. |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- | the Company has transferred the significant risks and rewards of ownership to the buyer; |
- | the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- | the amount of revenue can be measured reliably; |
- | it is probable that the Company will receive the consideration due under the transaction; and |
- | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- | the amount of revenue can be measured reliably; |
- | it is probable that the Company will receive the consideration due under the contract; |
- | the stage of completion of the contract at the end of the reporting period can be measured reliably; |
- | the costs incurred and the costs to complete the contract can be measured reliably. |
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. |
Tangible fixed assets |
| Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
| Depreciation is charged so as to allocate the cost of assets over their estimated useful lives, using the straight-line method. |
| Depreciation is provided on the following basis: |
| Long-term leasehold property | - 5-10% on cost |
| Plant and machinery | - 10-33% on cost |
| Fixtures and fittings | - 10% on cost |
| Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
| The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
| Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. |
| Investments in non-derivative instruments that are equity to the issuer are measured: |
| - | at fair value with changes recognised in the Statement of Comprehensive Income if the shares a publicly traded or their fair value can otherwise be measured reliably; |
| - | at cost less impairment for all other investments. |
| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
| For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
| For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. |
| Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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. |
| Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives. |
Taxation |
| Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
| The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income. |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Research and development |
| In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years. |
| If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. |
Provisions for liabilities |
| Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
| Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
| When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position. |
Pensions |
| Defined contribution pension plan |
| The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. |
| The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds. |
| Defined benefit pension plan |
| The Company also operates a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the Company. |
| Pension scheme assets are measured using market values. For quoted securities the mid-market price is taken as market value. Pension scheme liabilities are measured using a projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. |
| The pension scheme surplus (to the extent that it is recoverable) or deficit is recognised in full. |
Interest income |
Interest income is recognised in profit or loss using the effective interest method. |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Valuation of investments |
Investments in subsidiaries are measured at cost less accumulated impairment. |
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment. |
Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period. |
Impairment in Investments in subsidiaries are measured by comparing the carrying cost at consolidation with the net asset value of each subsidiary as of the reporting date. If the net asset value of a subsidiary as at year end is lower than the cost of investment recorded at consolidation, the shortfall is recognized as an impairment loss in the income statement. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management. |
3. | JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION |
| Significant Judgement |
| Management exercised judgement in determining that the decision to place two subsidiaries into liquidation constituted an indicator of impairment at the reporting date. This judgement was based on formal plans approved by the board and the cessation of trading activities in those subsidiaries. |
| Key Sources of Estimation Uncertainty |
| The recoverable amounts of the investments in Music Tribe Brands Sweden AB and Music Tribe DK1 A/S were estimated based on the expected net realisable value of their net assets upon liquidation. These estimates involve inherent uncertainty due to potential fluctuations in asset realisation values and the settlement of liabilities during the liquidation process. Given the materiality of the impairment charge of £82,228,453, this area represents a key source of estimation uncertainty that could significantly affect the carrying value of investments. |
4. | TURNOVER |
The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
Europe |
Asia |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
5. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Sundry receipts | - | 5,385 |
6. | EMPLOYEES AND DIRECTORS |
Staff costs were as follows: |
2024 | 2023 |
£ | £ |
Wages and salaries | 5,667,227 | 5,259,165 |
Social security costs | 641,233 | 619,636 |
Cost of defined contribution scheme | 262,816 | 261,997 |
6,571,276 | 6,140,798 |
The average monthly number of employees, including the directors, during the year was as follows: |
2024 | 2023 |
No. | No. |
Average employees | 89 | 96 |
7. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( | ) |
Computer software amortisation |
8. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements | 12,600 | 12,000 |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
9. | EXCEPTIONAL ITEMS |
| At the reporting date, the company carried out an impairment review of its investments in subsidiaries. |
| As part of this review, the carrying amount of each investment was compared to the net asset position of the respective subsidiary as at the year end. |
| n impairment loss of £82,228,453 has been recognised in the profit and loss account in respect of the investments in Music Tribe Brands Sweden AB and Music Tribe DK1 A/S. |
| This impairment arose following the decision to place both subsidiaries into liquidation. The recoverable amounts of these investments, based on the estimated net realisable value of their net assets, were lower than their carrying amounts. Accordingly, the investments were written down to their recoverable amounts at the reporting date. |
| No indicators of impairment were identified in relation to the company’s remaining investment, which continues to operate as a going concern. |
| This impairment charge is considered to be a material item of expense due to its nature and magnitude and has been presented separately in the profit and loss account to aid understanding of the company’s financial performance for the year. |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Interest payable |
11. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on (loss)/profit |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Pension surplus not recognised | 163,000 | - | 163,000 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Pension surplus not recognised | 675,000 | - | 675,000 |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
12. | PRIOR YEAR ADJUSTMENT |
| In accordance with FRS 102, the company has identified prior period errors relating to periods before 31 December 2024, specifically in the recognition of related party balances and the reclassification of certain balance sheet accounts. |
| These errors have been corrected by adjusting the opening balance of retained earnings as at 1 January 2024. The correction has been applied retrospectively to the extent that it is practicable. However, the comparative figures for the year ended 31 December 2023 have not been restated, as permitted under FRS 102 Section 10, Paragraph 10.6. |
| The effect of the error has been recognized in the current period’s opening retained earnings, with a prior year adjustment of £1,292,563 to correct these errors. This adjustment reflects the impact of transactions from prior periods that were not accurately reflected in the financial statements of those periods. |
13. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 January 2024 |
and 31 December 2024 |
AMORTISATION |
At 1 January 2024 |
Amortisation for year |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
14. | TANGIBLE FIXED ASSETS |
Long | Plant and |
leasehold | machinery | Totals |
£ | £ | £ |
COST |
At 1 January 2024 |
Additions |
Impairments | (603,254 | ) | - | (603,254 | ) |
At 31 December 2024 |
DEPRECIATION |
At 1 January 2024 |
Charge for year |
Impairments | ( | ) | ( | ) |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
15. | FIXED ASSET INVESTMENTS |
Investments (neither listed nor unlisted) were as follows: |
2024 | 2023 |
£ | £ |
Investment Cost/valuation | 97,070,328 | - |
Investment Impairment | (82,228,453 | ) | - |
14,841,875 | - |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Otto-Brenner-Straße 4a, 47877 Willich, Germany |
Nature of business: |
% |
Class of shares: | holding |
| On 14 August 2024, the Company acquired all 2 shares (100%) of Music Tribe GmbH at a purchase price of €345,000(EUR). The acquisition was completed using cash, as part of a restructuring initiative within the Group aimed at optimizing operations and enhancing synergies. |
Registered office: Vasagatan 38; 11120 Stockholm; Sweden |
Nature of business: |
% |
Class of shares: | holding |
| On 11 June 2024, the Company acquired all 2,000 shares (100%) of Music Tribe Brands Sweden AB at a purchase price of $34,184,109.00 USD. The acquisition was completed using cash, as part of a restructuring initiative within the Group aimed at optimizing operations and enhancing synergies. |
Registered office: H.C. Andersens Boulevard 38, 2. Th 1553 Kobenhaven V., Denmark |
Nature of business: |
% |
Class of shares: | holding |
| On 13 June 2024, the Company acquired all 700,000 shares (100%) of Music Tribe Innovation DK A/S at a purchase price of $86,786,281.59 USD. The acquisition was completed using cash, as part of a restructuring initiative within the Group aimed at optimizing operations and enhancing synergies. |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
15. | FIXED ASSET INVESTMENTS - continued |
During the year, the company acquired investments in three subsidiary undertakings. These investments are measured at cost less any provision for impairment. |
At the reporting date, an impairment review of the investments was carried out. As part of this review, the carrying amount of each investment was compared to the respective subsidiary’s net asset position as at the year end. |
An impairment loss of £82,228,453 has been recognised in the profit and loss account in respect of Music Tribe Brands Sweden AB and Music Tribe DK1 A/S. This impairment arose due to the decision to place both entities into liquidation. As a result, the recoverable amount of these investments, based on the estimated net realisable value of their net assets, is lower than their original cost at acquisition. |
The remaining subsidiary continues to operate, and no indicators of impairment were identified in respect of this investment as at the reporting date. |
16. | STOCKS |
2024 | 2023 |
£ | £ |
Raw materials |
Finished goods |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Owed by group undertakings | 10,980,049 | 9,182,465 |
Prepayments |
18. | CASH AT BANK |
2024 | 2023 |
£ | £ |
Bank | 34,991,645 | 151,514 |
19. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Other creditors |
Accruals and deferred income |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
20. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
21. | FINANCIAL INSTRUMENTS |
2024 | 2023 |
Financial assets |
Financial assets measured at fair value through profit or loss | 34,991,645 | 151,514 |
22. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 17,840 | - |
Deferred |
tax |
£ |
Provided during year |
Balance at 31 December 2024 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary shares | 1 | 18,000,001 | 18,000,001 |
24. | RESERVES |
Pension |
Retained | Capital | asset not |
earnings | contribution | recognised | Totals |
£ | £ | £ | £ |
At 1 January 2024 | ( | ) | (9,020,264 | ) |
Deficit for the year | ( | ) | ( | ) |
Pension asset not recognised | (163,000 | ) | - | 163,000 | - |
No description | - | 59,295,000 | - | 59,295,000 |
Prior year adjustment | 1,292,563 | - | - | 1,292,563 |
At 31 December 2024 | ( | ) | (9,614,059 | ) |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
25. | EMPLOYEE BENEFIT OBLIGATIONS |
| The Company operates a defined contribution scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund.The pension cost charge represents contributions payable by the Company to the fund and amounted to £262,816 (2023: £261,997). Contributions totalling £nil (2023: £nil) were payable to the fund at the reporting date and are included in creditors. |
| The Company operates a Defined Benefit Pension Scheme. |
| The Company also participates in an industry-wide defined benefit scheme that provides pensions linked to final salaries and is funded on a pay-as-you-go basis. It is not practicable to determine the present value of the Company's obligation or the related current service cost as the scheme computes its obligations on a basis that differs materially from the basis used in Empower Tribe Innovations UK Ltd's financial statements. On that basis, the scheme's financial statements to 31 December 2024 show an unfunded liability of £nil (2023: £nil). The scheme has approximately 150 members, of whom approximately NIL are current or former employees of Empower Tribe Innovations UK Ltd or their dependants. The expense recognised in the profit and loss account, which is equal to contributions due for the year, and is not included in the above amounts, was £nil (2023: £nil). The Company's future contributions may be increased substantially if other entities withdraw from the scheme. |
| Reconciliation of present value of scheme liabilities: |
| 2024 | 2023 |
| £ | £ |
| At the beginning of the year | 17,576,000 | 17,693,000 |
| Expenses | 7,000 | 12,000 |
| Interest cost | 743,000 | 796,000 |
| Actuarial gains/losses | (1,676,000 | ) | (118,000 | ) |
| Benefits paid | (1,019,000 | ) | (807,000 | ) |
| At the end of the year | 15,631,000 | 17,576,000 |
| Reconciliation of fair value of scheme assets: |
| 2024 | 2023 |
| £ | £ |
| At the beginning of the year | 17,576,000 | 17,693,000 |
| Interest income | 781,000 | 813,000 |
| Return on scheme assets less interest income | (1,945,000 | ) | 76,000 |
| Employer contributions | 401,000 | 201,000 |
| Benefits paid | (1,019,000 | ) | (807,000 | ) |
| Derecognition of surplus | (163,000 | ) | (675,000 | ) |
| At the end of the year | 15,631,000 | 17,576,000 |
| 2024 | 2023 |
| £ | £ |
| Fair value of scheme assets | 17,576,000 | 17,576,000 |
| Present value of scheme liabilities | (17,576,000 | ) | (17,576,000 | ) |
| Net pension scheme liability | - | - |
EMPOWER TRIBE INNOVATIONS UK LTD. (REGISTERED NUMBER: 07070987) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The amounts recognised in the statement of profit and loss are as follows: |
| 2024 | 2023 |
| £ | £ |
| Expenses | 7,000 | 12,000 |
| Interest income | 781,000 | 813,000 |
| Total | 788,000 | 825,000 |
| The Company expects to contribute £NIL to its Defined Benefit Pension Scheme in 2025. |
| Principle actuarial assumptions at the reporting date (expressed as weighted averages): |
| 2024 | 2023 |
| % | % |
| Discount rate | 5.35 | 4.35 |
| Inflation assumption | 2.00 | 1.95 |
| Mortality rates: |
| - for a male aged 65 now | 20.1 | 20.3 |
| - at 65 for a male aged 45 now | 21.0 | 21.2 |
| - for a female aged 65 now | 22.6 | 22.8 |
| - at 65 for a female member aged 45 now | 23.7 | 23.9 |
26. | CONTROLLING PARTY |
Uli Behringer Foundation (incorporated in United Arab Emirates ) is regarded by the directors as being the company's ultimate parent company. |
The company's immediate parent company is Music Tribe HQ FZE, a company incorporated in United Arab Emirates. |
LB181504WS13 |
Jebel Ali Freezone |
Dubai |
United Arab Emirates |
The directors consider UB Behringer to be the ultimate controlling party. |
27. | POST BALANCE SHEET EVENTS |
| On 17 January 2025, the company received a capital injection of $27.3 million (approximately £22.42 million) from its ultimate controlling party, the Uli Behringer Foundation. This transaction occurred after the reporting period and does not relate to conditions existing at the balance sheet date; therefore, it is classified as a non-adjusting event. |