The director presents the strategic report for the period ended 29 September 2024.

Pink Floyd Music Ltd is engaged in the ownership, licensing, and management of recorded music rights related to the Pink Floyd catalogue, for recorded music released prior to 1984.

The company derives its revenue from licensing fees, royalties, and synchronisation income across various platforms.

During the financial year, the company experienced a modest decline in turnover, with revenue decreasing by 12.7% to £26.9 million (2023: £30.8 million). The decrease primarily reflects the absence of reissued material in the year, the timing of sync licensing deals and fluctuations in royalty receipts from international markets.

Despite the reduction in turnover, gross profit rose significantly to £15.7 million (2023: £0.6 million). This improvement is primarily attributable to the acquisition of Pink Floyd Music Limited by Sony Music Entertainment (SME), which meant service fees were no longer payable to the band members (or their respective companies). This allowed the company to retain a greater share of licensing income and reflects a transition to a more centralised rights ownership model.

Administrative expenses were tightly controlled throughout the year. As a result, the company recorded a strong operating profit of £14.5 million, compared to a loss of £0.02 million in 2023. The company maintains a strong cash position and continues to operate without external borrowings, reinforcing its financial resilience.

The director recognises the following principal risks:

• Copyright and Regulatory Risk: Changes in copyright law or royalty regimes may impact revenue. The company monitors legislative developments and consults leading legal advisors in IP and media law.

• Digital Disruption and Platform Risk: Heavy reliance on major streaming platforms (e.g., Spotify, Apple Music) poses risk should royalty rates or platform policies change. The company mitigates this risk by diversifying licensing channels, including sync placements and broadcast.

• Reputation and Legacy Management: As a heritage music company, the brand and catalogue must be carefully curated. The director applies rigorous licensing oversight to maintain alignment with the legacy and values of the band.

• Foreign Exchange Risk: A portion of income is received in USD and EUR. The company manages this through natural hedging strategies and regular review of currency exposures.

Looking ahead to 2025, the director expects modest revenue growth, supported by the continued global popularity of the Pink Floyd catalogue and new monetisation opportunities in emerging territories. Growth is expected to come from expanded sync licensing and the release of remastered and immersive audio content.

The company remains committed to preserving and enhancing the long-term value of the Pink Floyd catalogue while pursuing responsible and sustainable licensing activity.

The director monitors several financial KPIs to assess business performance. Turnover decreased to £26.9 million (2023: £30.8 million), due to fluctuations in sync income and international royalty cycles together with the absence of reissued material in the year.

However, gross profit rose sharply to £15.7 million (2023: £0.6 million), following the acquisition of the company by SME and the resulting removal of service fee payments to former band members (and their respective companies).

As a result, operating profit improved significantly, reaching £14.5 million, compared with a small loss of £0.02 million in the prior year. Net assets increased to £10.9 million (2023: £0.0001 million), supporting the company’s ongoing financial strength and operational stability.

In fulfilling their responsibilities under Section 172 of the Companies Act 2006, the director has considered the long-term success of the company and the impact of their decisions on key stakeholders. Considerations included:

• Structuring licensing agreements to ensure long-term sustainability and value

• Maintaining productive relationships with artists, estates, and publishing partners

• Assessing the environmental and reputational implications of marketing partnerships and content use

The company engaged regularly with its distribution partners, royalty collection societies, and professional advisors to ensure transparency and effective rights management.

On behalf of the board

The director presents his annual report and financial statements for the period ended 29 September 2024.

The principal activity of the company is the sale of physical and digital recorded music relating to the masters it owns through its distributors and licensees.

The director who held office during the period and up to the date of signature of the financial statements was as follows:

The auditor, Riches & Company, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The director is responsible for preparing the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Pink Floyd Music Limited (the 'company') for the period ended 29 September 2024 which comprise the profit and loss account, 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 29 September 2024 and of its profit for the period 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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 director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

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 and the director's 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 director's remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the director's report.

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

• We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.

• We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety and employment law.

• We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

• Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The audit approach was tailored to respond to the risks of material misstatement identified during our risk assessment procedures, including the risk of fraud. In forming our overall audit strategy, we considered the company’s operations, control environment, accounting policies, and key areas of management judgment.

Our response to identified risks have included:

• Evaluating the design and implementation of relevant internal controls and, where considered appropriate, testing their operating effectiveness;

• Performing substantive analytical procedures and detailed tests of transactions and balances;

• Assessing the appropriateness of accounting policies adopted and the reasonableness of significant estimates and judgments made by management;

• Testing journal entries and other adjustments made in the preparation of the financial statements to address the risk of management override of controls;

• Reviewing the completeness and accuracy of disclosures in the financial statements, particularly in relation to areas of judgment or complexity;

• Performing procedures to assess the company’s ability to continue as a going concern, including evaluating cash flow forecasts and challenging underlying assumptions;

• Inspecting post-year-end transactions and board minutes for subsequent events and related party transactions;

Considering the risk of fraud in revenue recognition, including performing cut-off testing and testing revenue streams for completeness and accuracy.

Our audit procedures were designed to provide reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

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.

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 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Pink Floyd Music Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Canal Reach, London, United Kingdom, N1C 4DB.

These financial statements cover the 15-month period from 1 July 2023 to 29 September 2024. The comparative figures presented are for the 12-month period ended 30 June 2023. As a result, the current period's figures are not entirely comparable with those of the prior year.

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Pink Floyd Music Limited is a wholly owned subsidiary of SME Two Limited and the results of Pink Floyd Music Limited are included in the consolidated financial statements of SME Two Limited which are available from 2 Canal Reach, London, United Kingdom, N1C 4DB.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover represents the sale of physical and digital recorded music, through the company's distributors and licensees, as well as certain film profits and administration fees.

The company recognises revenue from the following major sources:

• Royalties and licensing income

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Royalty income is recognised on an accruals basis in accordance with the substance of the relevant agreements and to the extent that it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably.

Royalties earned from the licensing of intellectual property rights - including music, film, and related media - are recognised in the period in which the underlying usage or performance occurs. This includes performance royalties, mechanical royalties, digital streaming income, synchronisation fees, and income from broadcasting or public exhibition.

Where statements from licensees or collection agents are subject to reporting delays, royalty income is estimated based on historical data, contractual terms, and reasonable expectations of usage. Adjustments are made in subsequent periods when actual results become known.

Non-refundable advances received from licensees are initially recognised as deferred income and released to profit or loss over the period in which they are earned.

Revenue from film profits, royalties and administration fees is recognised when the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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:

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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

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

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

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

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. Bank overdrafts are shown within borrowings in current liabilities.

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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

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.

The tax expense represents the tax currently payable.

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the director is 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.

An analysis of the company's turnover is as follows:

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

There were no employees in the current or preceding year other than the directors.

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

The following unlisted subsidiary undertakings are incorporated in England and Wales and are included in the financial statements at cost less impairment:

Pink Floyd Records Limited (Company no: 09696592), a company established with the intention to engage in music publishing. The company holds 100% of the issued ordinary share capital.

PFM Exhibitions Limited (Company no: 09510247), a company established with the intention to engage in event and exhibition management. The company holds 100% of the issued ordinary share capital.

The registered office for both subsidiaries is 2 Canal Reach, London, England, N1C 4DB.

Both subsidiaries have been dormant since incorporation. As a result, the directors consider the recoverable amount of these investments to be £nil. The total investment of £101 has therefore been fully impaired.

An impairment loss of £101 has been recognised in the profit and loss account.

The company has one class of share which have full voting rights and equal rights to dividends.

On 30 September 2024, the Company was sold to SME Two Limited under a locked box arrangement effective from 30 June 2023. The transaction was approved post year-end and included termination of historic service arrangements and related IP agreements. As the transaction completed after the reporting date, it is treated as a non-adjusting event under FRS 102 Section 32. No adjustments have been made to these financial statements for the year ended 29 September 2024.

On 23rd June 2025, the directors declared and paid a dividend of £81,548 per ordinary share, totaling £8,154,793. This dividend relates to the year ended 29 September 2024 but was declared after the reporting date and therefore has not been recognised as a liability at the balance sheet date.

The company sells physical and digital recorded music through its distributors and licensees, bears the costs relating to those sales (principally distribution, manufacturing and copyright) and then makes payments for services provided by companies controlled by the directors, as well as certain third party producers.

The companies controlled by the directors were charged an administration fee on an annual basis for these services; the fees due in respect of the period were:

The directors consider that there was no ultimate controlling party during the year ended 29 September 2024, as no individual or entity held a controlling interest in the company.

On 30 September 2024, SME Two Limited, a company incorporated in the United Kingdom, acquired 100% of the company’s issued share capital and became its immediate parent undertaking.

SME Two Limited is wholly owned by SME Two LLC, a company incorporated in the United States, with its registered office at:

251 Little Falls Drive, Wilmington, Delaware, United States, 19808.