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Registered number:
FOR THE PERIOD ENDED 22 FEBRUARY 2025
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SOLOTECH UK GROUP LTD
COMPANY INFORMATION
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SOLOTECH UK GROUP LTD
CONTENTS
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SOLOTECH UK GROUP LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 22 FEBRUARY 2025
The directors present their strategic report for the period 25 February 2024 to 22 February 2025.
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties that we face. The company's business objective is to provide bespoke audio, lighting and video solutions to a wide range of end users, for both hire and installations, utilising new technology, equipment and applications backed up by extensive internal knowledge and a comprehensive service and maintenance facility. Our commentary on the performance of the business is contained in the overall review and financial key performance indicators sections of this report. The company is part of Groupe Solotech Inc., a world leader in audiovisual and entertainment technology with 18 strategic locations in Canada, the United States and the United Kingdom.
This year, the company continues its growth across Live Productions and Sales & System Integration Divisions. Live events, including local festival markets and touring, remain strong, whilst growth and opportunities across pro audio sales, and video, lighting and audio offerings in the integration market provide a strong pipeline of future revenue. By continuing to widen the scope of our service offering to include video and lighting, this further cemented year on year growth, and creates development opportunities for the future.
Total revenues in the year of £57.5m, saw a £5.3m or 10% increase on the previous year, and thus achieving a record level of income for the company. Improved revenue performance was seen across all revenue channels. The directors are confident that this continued growth is sustainable into the future with a long pipeline of projects and bookings, further supported by investments in new technical equipment.
The risks faced by the company are reviewed by the board on a regular basis and appropriate processes are put into place to monitor and mitigate them. In common with many businesses of this size the business environment continues to be challenging, with high competitiveness in the market and as a result there is always a pressure on prices. The nature of the company's products and services means that it is indirectly subject to consumer spending and the overall level of disposable income within the geographical markets in which it operates. The sales and installation side of the business is dependent upon general business levels of capital investment, which in turn is linked to non-essential consumer expenditure levels. To mitigate this risk the company has continued to invest in the products and services it provides to ensure these are at the top end of the market.
However, the directors recognise that the company, as any other business, is subject to risks and uncertainties that are beyond its control.
The company's operations expose it to a variety of financial risks that include the effect of credit risk and liquidity risk. The company has in place policies that seek to limit the adverse effects on the financial performance of the company by monitoring levels of liquidity and the related finance costs. The policies set by the board of directors are implemented by the company's finance department.
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SOLOTECH UK GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 22 FEBRUARY 2025
The company has implemented policies that require appropriate credit assessments on potential customers before sales are made so that relevant credit limits are set. The company also issues tailored terms and conditions to customers commensurate with the work being undertaken to ensure the risk exposure is minimised and accords with the limits set by the procedure. The amount of exposure to any individual counterparty is subject to constant review by the company's finance department.
The company actively maintains a mixture of cash balances and loan finance that is designed to ensure the company has sufficient available funds for operations and planned expansion. This is augmented by comprehensive stock control processes that identifies items for sale in order to ensure the stock remains up to date and relevant and the overall level of stock held, both for sale and hire, is appropriate to the expected level of business activity. The company is also at risk from interest rate fluctuations, however this is managed by ensuring either borrowings are on fixed terms and rates, or where rates are not fixed the levels of borrowing are taken over relatively short term periods so that exposure is limited. The overall objective of the board is to keep borrowings to an appropriate level commensurate with activities, but to ensure all borrowings are structured and relevant to the business need. Keeping a tight control on debtor and stock exposure addresses this risk.
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SOLOTECH UK GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 22 FEBRUARY 2025
We consider that our key financial performance indicators that communicate the financial performance and strength of the company as a whole are:
Turnover: Production services Equipment sales and installations Sales of ex capital equipment Operating lease rental receipts Gross Margins: On production services On sales of equipment On installation projects On sales of ex capital equipment Company Net Assets EBITDA Net Profit Generation The company has seen a continued increase in revenues with sales increasing to £57.5m (prior year £52.2m), and 10% above the company’s previously highest recorded turnover. With many of the costs charged into the gross profit calculation being either semi fixed (eg direct wages) or fixed (depreciation charges on the audio stock inventory), this has resulted in a gross profit of £18m (prior year £18.1m). Underlying margins slightly decreased due to unfavourable change in revenue mix from our live events market and lower installation project margins in our sales and integration market. The EBITDA for the present period is £3.3m (as compared to £5.5m in 2024) largely explained by unfavourable revenue mix and higher administrative expenses mostly related to investments made in new and more modern premises. The net assets of the company have decreased to £16.6m (prior year £17.1m) following the net after tax reported loss of £406k. The Board remain confident about the future of the business and believe that their strategic plan will deliver a pathway to continued growth and improved profitability.
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SOLOTECH UK GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 22 FEBRUARY 2025
Employee Engagement
The Board recognises that our employees are fundamental to the success of our business and remains committed to fostering a culture of openness, inclusion, and engagement across all levels of the organisation. We understand that meaningful engagement with our workforce is essential not only to support day-to-day operations, but also to deliver long-term, sustainable performance.
During the year, we have taken a proactive approach to employee engagement through a combination of structured communication channels and informal feedback mechanisms. Key initiatives included:
∙Employee Voice: Regular employee surveys such as, engagement survey, suggestion box and open discussions were conducted to capture views on workplace culture, wellbeing, benefits and organisational effectiveness. The results have informed action plans at both departmental and senior levels.
∙Leadership Accessibility: An open-door approach remains part of our day-to-day management process. Town hall meetings, team meetings, Q&A sessions, and virtual briefings have regularly been held to ensure transparent communication from senior leadership, particularly around business strategy, performance, and change initiatives. We continue to build on this and other initiatives to continue to improve our leadership accessibility.
∙Consultation: We continue to maintain active dialogue with employees, ensuring that their perspectives are considered in key business decisions and that timely consultations are performed as needed.
∙Learning and Development: We continue to identify key development needs throughout our workforce, and we continue to input training and educational sessions via face to face training session, key messages and our unique Solotech Academy platform to support this. Through the Solotech Academy, we continue to invest in employee development through the tailored training programmes, leadership development, and career progression initiatives, supporting our objective to remain an employer of choice.
∙Wellbeing: Mental health, wellbeing, healthy work life balance, and diversity and inclusion initiatives remained high priorities, with enhanced programmes introduced to promote a supportive and respectful workplace for all. Most of our premises have been improved in the past months, supporting an enhanced work ambiance and wellbeing sentiment.
The Board receives regular updates on employee sentiment and engagement, and these insights are taken into account when making decisions that impact our people. We are proud of the dedication, passion and adaptability our workforce demonstrates daily, and we remain committed to creating an environment where every employee feels heard, valued, and empowered to contribute.
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SOLOTECH UK GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 22 FEBRUARY 2025
This statement is provided in accordance with Section 172 of the Companies Act 2006, detailing how the directors of Solotech UK Group have fulfilled their duties to promote the success of the company for the benefit of its members as a whole.
At Solotech UK Group, our mission is to deliver exceptional live events that create memorable experiences for audiences, and outstanding audio visual (AV) installation solutions, while driving long-term growth and profitability. In our decision-making processes, the directors consider the following key areas to promote the company’s success: 1. Long-term Impact on the Company: We are dedicated to shaping a sustainable future for Solotech UK Group by investing in innovative technologies and expanding our portfolio of events and commercial installation projects. We focus on building long-term partnerships and developing new market opportunities to ensure the company’s enduring success and resilience, aligning it with our strategic plan and desire to create and achieve the best outcomes for the clients we support. 2. Interests of Employees: Our employees are crucial to our success in delivering high-quality live events and state-of-the-art AV solutions. We are committed to their development through continuous training and professional growth opportunities. At Solotech UK Group, we believe we can have a positive social impact by taking good care of our employees and their well-being and by being involved in the communities where we operate. We also prioritise creating a positive work environment that fosters creativity, teamwork, and well-being. 3. Business Relationships with Suppliers and Customers: Maintaining strong, collaborative relationships with suppliers, production teams, and venue partners is essential to our business. We strive to ensure that our dealings are fair and transparent, aiming to create mutually beneficial outcomes. Our customer-focused approach seeks to enhance the experience for attendees and ensures seamless technology integrations solutions tailored to the clients’ unique needs, ensuring their satisfaction and loyalty. 4. Community and Environmental Impact: We recognise the importance of our role within the community and our environmental responsibilities. Solotech recognises the importance of aligning practices with evolving expectations of our clients and employees, striving to create more inclusive and greener operations. With a commitment to keeping up with sustainability, Solotech UK Group actively revisits its activities to ensure we are continuously improving our practices. We are committed to promoting sustainability and social responsibility in all our operations. 5. Stakeholder Interests: The interests of our stakeholders, including shareholders, creditors, clients, and the wider community, are integral to our decision-making process. Our quality of service is re-enforced with many years’ experience in the live events industry, and as a market leading provider of AV commercial installations. We aim to balance these interests while pursuing our strategic goals, ensuring that our actions contribute positively to all involved. The directors of Solotech UK Group are dedicated to promoting the long-term success of the company by upholding these principles. Our decisions are guided by a commitment to innovation, stakeholder engagement, and responsible business practices, all aimed at enhancing the company’s growth and creating lasting value.
This report was approved by the board on 28 November 2025 and signed on its behalf.
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SOLOTECH UK GROUP LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 22 FEBRUARY 2025
The directors present their report and the financial statements for the period ended 22 February 2025.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 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 to 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.
The loss for the period, after taxation, amounted to £406,253 (2024 - profit £193,082).
No dividends will be distributed for the period ended 22 February 2025 (2024 - £Nil).
The directors who served during the period were:
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SOLOTECH UK GROUP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 22 FEBRUARY 2025
To this end and in support of our disabled employees, Solotech UK Group works tirelessly to ensure we work above and beyond in providing reasonable adjustments to ensure our disabled employees can carry out their work in a safe and comfortable environment.
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SOLOTECH UK GROUP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 22 FEBRUARY 2025
SECR disclosures are mandatory for listed and large unlisted UK companies with reporting cycles beginning on or after 1st April 2019. The following tables show the consumption and associated emissions for financial year ending February 2025 for all operations. The information used to calculate the consumption and emissions is based on electricity and gas meter readings, whilst transportation is captured as part of our operational processes. Solotech also include comparative figures for the prior year of operations.
Scope 1 consumption and emissions include direct combustion of natural gas, and fuels utilised for transportation operations, for example, company vehicle fleets. Scope 3 consumption and emissions cover emissions resulting from sources not directly owned by Solotech ie, grey fleet business travel undertaken in employee-owned vehicles only. Scope 2 consumption and emissions cover indirect emissions related to the consumption of purchased electricity in day-to-day business operations. Scope 3 consumption and emissions cover emissions resulting from sources not directly owned by Solotech ie, grey fleet business travel undertaken in employee-owned vehicles only.
Data quality across utilities has been improved year-on-year, with primary invoice data available for FY25 reporting, contributing to increases in consumption and resulting emissions. Relocation of office properties within the reporting year has also resulted in short periods where Solotech were responsible for energy consumed in a larger number of properties, which has artificially increased emissions when comparing year-on-year data. As portfolio churn for the business settles, these fluctuations are expected to reduce. Increased granularity of transportation data additionally has increased the accuracy of emissions factors used for calculations, also likely contributing to a proportion of emissions increases seen year-on-year.
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SOLOTECH UK GROUP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 22 FEBRUARY 2025
The intensity ratio compares emissions data with an appropriate metric or financial indicator. Solotech’s operations have an intensity metric of 7.48 tCO2e per £m sales revenue for this reporting year (Prior year 5.54). The business has elected to include a second intensity metric, equating to 1.50 tCO2e per Full Time Equivalent (FTE) employee (Prior year 1.12).
Solotech operates in the live events technology services industry, and the wider audio video sales and installation industry and therefore only has direct influence on its own operations which include office and warehouse facilities, fabrications, travel, transportation and its logistics operations. Solotech recognises the importance of aligning practices with evolving expectations of our clients and employees, striving to create more inclusive and greener operations. With a commitment to keeping up with sustainability, Solotech is actively looking to put in place measures, processes and policies to ensure we are continuously improving and monitoring our sustainability progress. Measures ongoing and undertaken in FY25 include continued efforts to improve the energy efficiency of the built portfolio of operations. A number of office and warehouse spaces have been consolidated through the reporting year, improving the utilisation of operational spaces across the business. This has also enabled Solotech to have an enhanced view of energy usage within the property portfolio, enabling the business to understand on a more granular level energy use of operations, and where further savings can be made.
There have been no significant events affecting the Company since the year end.
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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SOLOTECH UK GROUP LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SOLOTECH UK GROUP LTD
We have audited the financial statements of SOLOTECH UK GROUP LTD (the 'Company') for the period ended 22 February 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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SOLOTECH UK GROUP LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SOLOTECH UK GROUP LTD (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial period 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.
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.
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SOLOTECH UK GROUP LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SOLOTECH UK GROUP LTD (CONTINUED)
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:
∙Enquiry of management around actual and potential litigation and claims;
∙Enquiry of management to identify any instances of non-compliance with laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness;
∙Reviewing accounting estimates for evidence of management bias; and
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 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.
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SOLOTECH UK GROUP LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SOLOTECH UK GROUP LTD (CONTINUED)
for and on behalf of
Birmingham, United Kingdom
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
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SOLOTECH UK GROUP LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 22 FEBRUARY 2025
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SOLOTECH UK GROUP LTD
REGISTERED NUMBER: 01542797
STATEMENT OF FINANCIAL POSITION
AS AT 22 FEBRUARY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 17 to 31 form part of these financial statements.
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SOLOTECH UK GROUP LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 22 FEBRUARY 2025
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
Solotech UK Group Ltd is a private company, limited by shares, registered in England. The company's registered number is 01542797 and the registered office is situated at Unit 1, Connexion Li, Blythe Gate, Solihull, West Midlands B90 8DX.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
In assessing the going concern assumption at the end of FY2025 (February 2025), available information about the future operations and financial condition of Solotech UK Group (i.e. FY2026 budget and future projections) were taken into consideration.
F2025 results clearly positions Solotech UK Group as a key leader in both Live Productions and Systems Integrations segments. Based on the strong current financial condition of the wider Solotech group, the investments completed in FY2025, operational improvement initiatives currently in progress, as well as the financial projections prepared by management, Management believes that its debt capacity and financing plans will provide sufficient liquidity and financial flexibility to maintain a strong financial position of the group. Our current projections for revenue and profitability for the coming year and beyond, and in consideration of our understanding of our markets, give us confidence for the Company’s going concern assumption. The UK group is forecasting profitable growth that is reliant on the parent entity for financial support. A letter of support has been provided which confirms continuing support for a period of at least 12 months from the point of signing the financial statements. On the basis of the above analysis, the Directors have concluded there is no material uncertainty that exists that may cast significant doubt on Solotech’s ability to continue as a going concern for a period of at least twelve months from the date when the financial statements were approved.
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
2.Accounting policies (continued)
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Solotech UK Corporation Ltd as at 22 February 2025 and these financial statements may be obtained from One Eleven, Edmund Street, Birmingham, England, B3 2HJ.
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
Functional and presentation currency
Transactions and balances
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
2.Accounting policies (continued)
Turnover from the rendering of services is recognised to the stage of completion of the project. The stage of completion is measured by reference to the time lapse of the individual jobs where the provision of services is consistent over the length of the project. Turnover from the sales of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Patents and licences Patents are written off evenly over their estimated useful life.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
2.Accounting policies (continued)
Cost is defined in relation to the various categories of stock as being that expenditure which has been incurred in the normal course of business in bringing the product to its present location and condition. The expenditure includes, in addition to the cost of purchase, such costs of conversion as are appropriate to that location and condition on a first in, first out basis. 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.
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Depreciation and residual values The Directors have reviewed the asset lives and associated residual values of all fixed asset and have concluded that these are appropriate. Revenue recognition for production services For larger live production projects consisting of multiple phases the contracts are split into separate supporting agreements for each phase of the production. The directors review each agreement individually and recognise revenue based on the work performed and stage of completion of each phase. Revenue for additional services outside the scope of the supporting agreements is recognised in the period the services are performed. The directors are required to identify any amounts invoiced in advance to ensure these are appropriately treated as deferred income.
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
Analysis of turnover by country of destination:
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
In the spring budget 2021 the UK Government announced that the UK corporation tax rate would increase to 25% with effect from 1 April 2023. This new law was substantively enacted on 24 May 2021. Corporation tax in the Statement of comprehensive income is measured at 25% (2024: 24.4% blended average) and deferred tax in the balance sheet is measured at 25%.
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
Page 28
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
Page 29
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
Profit and loss account
The Company operates a defined contributions pension 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 £430,009 (2024: £329,173). Contributions totalling £86,369 (2024: £76,030) were payable to the fund at the reporting date and are included in creditors.
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SOLOTECH UK GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 22 FEBRUARY 2025
The company is a wholly owned subsidiary of SSE Audio Group Holdings Limited, which itself is a wholly owned subsidiary of Solotech UK Corporation Ltd. The parent undertaking of the smallest group that the company is part of for which consolidated accounts are prepared is
On 8 February 2019 the company entered into a group commitment with Federation Des Caisses Desjardins Du Quebec for a fixed and floating charge. The floating charge covers all property and undertakings of the company.
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