Company Registration No. 08775625 (England and Wales)
THE.TEAM: SME MUSIC LIMITED
ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
THE.TEAM: SME MUSIC LIMITED
COMPANY INFORMATION
Directors
Mr David Hallybone
Mr Alex Hardee
Mr Thomas Schroeder
Mr James Whitting
Mr Scott Lindley
Ms Christa D'Alimonte
(Appointed 16 January 2026)
Company number
08775625
Registered office
71-91 7th Floor Aldwych House
Aldwych
London
United Kingdom
WC2B 4HN
Auditor
Prager Metis LLP
5a Bear Lane
Southwark
London
United Kingdom
SE1 0UH
THE.TEAM: SME MUSIC LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 35
THE.TEAM: SME MUSIC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The directors present the ir strategic report for The.Team: SME Music Limited (formerly known as Wasserman Music Limited) group, for the year ended 31 December 2025. This report has been prepared to provide a fair, balanced, and comprehensive review of the group’s business, its development and performance during the year, its position at the year-end, and the principal risks and uncertainties it faces, to enable shareholders to assess how the directors have performed their duty to promote the success of the group.

Principal Activities and Fair Review of the Business

The principal activity of the group remains the provision of agency services to artists within the music industry. In response to evolving market trends, the group has successfully embedded and expanded its broader service offerings, including corporate and private bookings, alongside dedicated brand partnerships encompassing global brand campaigns, endorsements, music supervision, and licensing.

The group’s core strategy continues to focus on developing its people, investing heavily in its existing team of agents, and prioritizing internal promotions to maintain service quality and artist retention.

Development, Performance, and Position

The group has delivered a robust financial performance during the financial year, reflecting the continued global expansion of the live events industry and the successful commercialization of our brand partnership division.

- Revenue Performance: Group revenue for the year ended 31 December 2025 increased to £35,172,403 (2024: £25,147,584), driven by high-profile new artist signings, the progression of developing up-and-coming talent, and the execution of several major worldwide tours.

- Profitability: Operating profit for the year stood at £6,210,900 (2024: £4,448,153), representing an operating margin of 17.66%. This reflects controlled scaling of administrative expenses alongside expanding operations.

- Balance Sheet Position: At 31 December 2025, the group’s net asset position strengthened to £3,439,791 (2024: £2,878,981). The cash balance of £37,159,303 (as detailed in the statement of cash flows) provides a strong liquidity cushion to support ongoing working capital requirements as the volume of global bookings grows.

The directors aim to continue this established strategy and remain confident that the business is well-positioned to maintain its growth trajectory in 2026 and beyond.

Key Performance Indicators (KPIs)

The group monitors its strategic and financial progress using a range of financial and non-financial key performance indicators:

KPI | 2025 | 2024 | Strategic Focus
Turnover / Revenue | £35,172,403 | £25,147,584 | Core metric for volume of artist bookings and brand campaigns.
Operating Profit Margin | 17.66% | 17.69% | Measures the direct profitability and efficiency of commission structures.
Headcount (Agents & Support) | 124 | 103 | Tracks capacity growth to handle increased volume without diluting service quality.

THE.TEAM: SME MUSIC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
Principal Risks and Uncertainties

The management of operational and financial risk is an integral part of the group's business strategy. The principal risks identified by the directors are as follows:

Market & Competitive Risk

The group’s income remains inherently dependent upon the continued popularity of live music shows, festivals, and public events. While the live events industry is well-established, stable, and expanding globally, it faces intense competition from rival agencies.
Mitigation: The group mitigates this by maintaining an innovative, "artist-centric" reputation, ensuring high retention rates. Continuous investment in agent training and expanding into diversified income streams (such as brand licensing and supervision) further protects market share.

Operational Capacity & Staffing Risk

As the business scales globally, the volume of bookings introduces operational strain. There is a risk that recruitment cannot keep pace with growth, potentially impacting service quality.
Mitigation: The group actively monitors headcount and is steadily increasing staffing numbers across both frontline Agents and administrative support staff to match operational volume.

Financial Instrument Risks (Price, Credit, Liquidity, and Foreign Exchange)

The group is exposed to standard financial risks arising from its trading operations:

- Foreign Exchange Risk: A significant portion of commission revenue is earned from overseas show fees denominated in foreign currencies (primarily USD and EUR). Fluctuations in exchange rates directly impact reporting revenue. Mitigation: The group monitors currency movements closely and utilizes natural hedges where possible by matching foreign currency inflows with local operational expenses.

- Credit and Cash Flow Risk: Risk arises from potential delays or defaults on artist fees by promoters. Mitigation: The group applies stringent credit assessment procedures to international promoters and holds robust cash reserves to maintain normal liquidity. (Further details on financial instruments are provided in Note 21 to the financial statements).

By order of the board

Mr David Hallybone
Director
30 June 2026
THE.TEAM: SME MUSIC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2025.

Principal activities

The principal activity of the company and group continued to be that of a music artist booking agency.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £3,997,327. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr David Hallybone
Mr Alex Hardee
Mr Thomas Schroeder
Mr James Whitting
Mr Scott Lindley
Mr Mike Pickles
(Resigned 16 January 2026)
Ms Christa D'Alimonte
(Appointed 16 January 2026)
Auditor

In accordance with the company's articles, a resolution proposing that Prager Metis LLP be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE.TEAM: SME MUSIC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr David Hallybone
Director
30 June 2026
THE.TEAM: SME MUSIC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE.TEAM: SME MUSIC LIMITED
- 5 -
Opinion

We have audited the financial statements of The.Team: SME Music Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2025 and of the group's profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

THE.TEAM: SME MUSIC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE.TEAM: SME MUSIC LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report and the directors' r eport.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

- the parent company financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant are those that relate to the reporting framework (FRS 102, the Companies Act 2006) and the relevant direct and indirect tax compliance regulation in the United Kingdom and given the materiality of staff costs any relevant employment laws. There were no additional fundamental laws and regulations identified relating to the operating aspects of the group that may have a material effect on the financial statements. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations.

- We understood how the group is complying with those frameworks by making enquiries of management and seeking representations from those charged with governance. We corroborated our understanding by reviewing supporting documentation.

- We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal control and by designating revenue recognition as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business. We tested completeness of income through substantive tests performed, analytical review procedures and cut off tests on the revenue recognised.

THE.TEAM: SME MUSIC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE.TEAM: SME MUSIC LIMITED
- 7 -

- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of management and those charged with governance, review of legal and professional expenses.

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Austin Jacobs (Senior Statutory Auditor)
For and on behalf of Prager Metis LLP, Statutory Auditor
Chartered Accountants
5a Bear Lane
Southwark
London
SE1 0UH
United Kingdom
9 July 2026
THE.TEAM: SME MUSIC LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 8 -
2025
2024
as restated
Notes
£
£
Turnover
3
35,172,403
25,147,584
Cost of sales
(1,253,641)
(435,915)
Gross profit
33,918,762
24,711,669
Administrative expenses
(27,707,862)
(20,263,516)
Operating profit
4
6,210,900
4,448,153
Share of results of joint ventures
-
(20,696)
Interest receivable and similar income
7
521,383
919,846
Interest payable and similar expenses
8
(203,048)
(196,379)
Other gains and losses
9
21,000
20,696
Profit before taxation
6,550,235
5,171,620
Tax on profit
10
(1,992,098)
(1,415,559)
Profit for the financial year
25
4,558,137
3,756,061
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
THE.TEAM: SME MUSIC LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 9 -
2025
2024
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
13
-
0
2,341
Tangible assets
14
4,266,819
5,576,878
Investments
15
21,000
-
0
4,287,819
5,579,219
Current assets
Debtors
18
8,648,856
3,455,570
Cash at bank and in hand
37,159,303
21,003,262
45,808,159
24,458,832
Creditors: amounts falling due within one year
19
(44,041,980)
(23,508,986)
Net current assets
1,766,179
949,846
Total assets less current liabilities
6,053,998
6,529,065
Creditors: amounts falling due after more than one year
20
(2,545,200)
(3,588,746)
Provisions for liabilities
Deferred tax liability
22
69,007
61,338
(69,007)
(61,338)
Net assets
3,439,791
2,878,981
Capital and reserves
Called up share capital
24
202
202
Profit and loss reserves
25
3,439,589
2,878,779
Total equity
3,439,791
2,878,981

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

The financial statements were approved by the board of directors and authorised for issue on 30 June 2026 and are signed on its behalf by:
30 June 2026
Mr David Hallybone
Director
Company registration number 08775625 (England and Wales)
THE.TEAM: SME MUSIC LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
13
-
0
2,341
Tangible assets
14
366,819
376,878
Investments
15
21,002
2
387,821
379,221
Current assets
Debtors
18
9,623,164
5,711,934
Cash at bank and in hand
37,100,560
20,935,010
46,723,724
26,646,944
Creditors: amounts falling due within one year
19
(43,676,325)
(23,435,152)
Net current assets
3,047,399
3,211,792
Total assets less current liabilities
3,435,220
3,591,013
Creditors: amounts falling due after more than one year
20
-
0
(801,146)
Provisions for liabilities
Deferred tax liability
22
69,007
61,338
(69,007)
(61,338)
Net assets
3,366,213
2,728,529
Capital and reserves
Called up share capital
24
202
202
Profit and loss reserves
25
3,366,011
2,728,327
Total equity
3,366,213
2,728,529

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £4,635,011 (2024 - £2,728,327 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 30 June 2026 and are signed on its behalf by:
30 June 2026
Mr David Hallybone
Director
Company registration number 08775625 (England and Wales)
THE.TEAM: SME MUSIC LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 December 2024:
Balance at 1 January 2024
202
4,408,695
4,408,897
Year ended 31 December 2024:
Profit and total comprehensive income
-
3,756,061
3,756,061
Dividends
11
-
(5,285,977)
(5,285,977)
Balance at 31 December 2024
202
2,878,779
2,878,981
Year ended 31 December 2025:
Profit and total comprehensive income
-
4,558,137
4,558,137
Dividends
11
-
(3,997,327)
(3,997,327)
Balance at 31 December 2025
202
3,439,589
3,439,791
THE.TEAM: SME MUSIC LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 December 2024:
Balance at 1 January 2024
202
5,285,977
5,286,179
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
2,728,327
2,728,327
Dividends
11
-
(5,285,977)
(5,285,977)
Balance at 31 December 2024
202
2,728,327
2,728,529
Year ended 31 December 2025:
Profit and total comprehensive income
-
4,635,011
4,635,011
Dividends
11
-
(3,997,327)
(3,997,327)
Balance at 31 December 2025
202
3,366,011
3,366,213
THE.TEAM: SME MUSIC LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
2025
2024
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
22,148,925
7,885,482
Interest paid
(184,286)
(196,379)
Income taxes paid
(1,242,812)
(1,397,881)
Net cash inflow from operating activities
20,721,827
6,291,222
Investing activities
Purchase of tangible fixed assets
(61,503)
(369,833)
Proceeds from disposal of tangible fixed assets
25,452
988
Interest received
511,138
936,962
Net cash generated from investing activities
475,087
568,117
Financing activities
Proceeds from borrowings
-
801,146
Repayment of borrowings
(801,146)
-
Repayment of bank loans
(242,400)
(242,400)
Dividends paid to equity shareholders
(3,997,327)
(5,285,977)
Net cash used in financing activities
(5,040,873)
(4,727,231)
Net increase in cash and cash equivalents
16,156,041
2,132,108
Cash and cash equivalents at beginning of year
21,003,262
18,884,134
Effect of foreign exchange rates
-
0
(12,980)
Cash and cash equivalents at end of year
37,159,303
21,003,262
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 14 -
1
Accounting policies
Company information

The.Team: SME Music Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 71-91 7th Floor Aldwych House, Aldwych, London, England, WC2B 4HN.

The group consists of The.Team: SME Music Limited and its wholly owned subsidiaries Coda (Wenlock) Limited and Coda Agency Limited.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

1.2
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company The.Team: SME Music Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate cash reserves and support from the major shareholder to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Revenue

Turnover is recognised at the fair value of agency commissions receivable in respect of live music performances, 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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
1.6
Intangible fixed assets - goodwill

Goodwill arising on the acquisition of trade and assets of Coda Music Agency LLP in 2014 represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

In 2023 the directors' determined that goodwill should be fully impaired, following the impact that the majority takeover by The.Team SME, LLC. had on the company.

1.7
Intangible fixed assets other than goodwill

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:

Software
20% straight line basis

Costs associated with maintaining computer software are recognised as an expense as incurred.

The costs associated with the development of new software are recognised as an intangible asset when the Group is able to demonstrate all of the following are met:

a) The technical feasibility of completing the development so the intangible asset will be available for use or sale;

b) Its intention to complete the development and to use or sell the intangible asset;

c) Its ability to use or sell the intangible asset;

d) How the intangible asset will generate probable future economic benefits;

e) The availability of adequate technical, financial and other resources to complete the developments and to use or sell the intangible asset; and

f) Its ability to measure reliably the expenditure attributable to the intangible asset during its development.

All development expenditure that does not meet the above conditions are expensed as incurred.

1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 17 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
revaluation model used
Fixtures and fittings
straight line over 4 years
Computers
33%, 25% or 20% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

1.9
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the g roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent c ompany financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 18 -
1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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 m ethod 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.

THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 19 -
Other financial assets

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.

Impairment of financial assets

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 recogn ised in profit or loss.

Classification of financial liabilities

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 group after deducting all of its liabilities.

Basic financial 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 paymen ts 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.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 20 -
1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same t ax authority.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Foreign exchange

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.

THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Leases

In these accounts the directors have been required to assess whether leases entered into by the company either as a lessor or a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Impairment

In these accounts the directors have been required to assess whether there are any indicators of impairment of the company's assets such as goodwill and investments. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of these assets, their viability and the expected future performance of those assets.

Investments held at cost less impairment

In these accounts the directors have been required to assess whether there are any indicators of impairment of the company's investments such as investments in associates and joint ventures. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of these assets, their viability and the expected future performance of those assets.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets

Tangible fixed assets are depreciated over the useful lives taking into account residual values, where appropriate.

Valuation of freehold property

Freehold property is held at the revalued cost, whilst this is based on the valuation of an independent third party, an element of uncertainty exists.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Agency fees and commissions
35,172,403
25,147,584
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
3
Turnover and other revenue
(Continued)
- 22 -
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
9,298,049
8,199,842
Europe
19,350,655
12,263,367
Rest of World
6,523,699
4,684,375
35,172,403
25,147,584
2025
2024
£
£
Other revenue
Interest income
521,383
919,846
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(1,017,940)
(578,018)
Fees payable to the group's auditor for the audit of the group's financial statements
29,892
30,969
Depreciation of tangible fixed assets
71,561
93,410
Profit on disposal of tangible fixed assets
(25,451)
(988)
Amortisation of intangible assets
2,341
10,802
5
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
126
105
126
105
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
5
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
21,394,770
15,858,502
21,394,770
15,858,502
Social security costs
3,201,658
2,185,629
3,201,658
2,185,629
Pension costs
162,234
101,949
162,234
101,949
24,758,662
18,146,080
24,758,662
18,146,080
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
5,191,901
3,654,683
Company pension contributions to defined contribution schemes
6,604
5,980
5,198,505
3,660,663

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024 - 4).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
1,876,844
1,844,693
Company pension contributions to defined contribution schemes
1,651
1,625
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
511,150
903,374
Other interest income
10,233
16,472
Total income
521,383
919,846
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
8
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
139,786
152,601
Interest payable to group undertakings
63,077
3,713
Other interest
185
40,065
Total finance costs
203,048
196,379
9
Other gains and losses
2025
2024
£
£
Amounts written back to investments held at fair value
21,000
-
Other gains and losses
-
20,696
21,000
20,696
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
1,984,429
1,341,561
Deferred tax
Origination and reversal of timing differences
7,669
73,998
Total tax charge
1,992,098
1,415,559

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
6,550,235
5,171,620
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2024: 25%)
1,637,559
1,292,905
Effects of:
Expenses that are not deductible in determining taxable profit
41,110
31,533
Permanent capital allowances in excess of depreciation
(12,503)
(78,527)
Devaluation of freehold property
325,000
93,750
Deferred tax movement
7,669
73,998
Pension contributions unpaid
(6,737)
1,900
Taxation charge in the financial statements
1,992,098
1,415,559
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -
11
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Interim paid
3,997,327
5,285,977
12
Impairments

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

Reversals of previous impairment losses have been recognised in profit or loss as follows:

2025
2024
Notes
£
£
In respect of:
Fixed asset investments
15
-
20,696
Recognised in:
Amounts written off investments
-
20,696

The reversals of previous impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

13
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2025 and 31 December 2025
9,375,000
1,193,454
10,568,454
Amortisation and impairment
At 1 January 2025
9,375,000
1,191,113
10,566,113
Amortisation charged for the year
-
0
2,341
2,341
At 31 December 2025
9,375,000
1,193,454
10,568,454
Carrying amount
At 31 December 2025
-
0
-
0
-
0
At 31 December 2024
-
0
2,341
2,341
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
13
Intangible fixed assets
(Continued)
- 26 -
Company
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2025 and 31 December 2025
9,375,000
1,193,454
10,568,454
Amortisation and impairment
At 1 January 2025
9,375,000
1,191,113
10,566,113
Amortisation charged for the year
-
0
2,341
2,341
At 31 December 2025
9,375,000
1,193,454
10,568,454
Carrying amount
At 31 December 2025
-
0
-
0
-
0
At 31 December 2024
-
0
2,341
2,341
14
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2025
5,200,000
617,785
337,750
126,043
6,281,578
Additions
-
0
1,680
59,823
-
0
61,503
Disposals
-
0
-
0
-
0
(126,043)
(126,043)
Revaluation
(1,300,000)
-
0
-
0
-
0
(1,300,000)
At 31 December 2025
3,900,000
619,465
397,573
-
0
4,917,038
Depreciation and impairment
At 1 January 2025
-
0
304,671
274,751
125,278
704,700
Depreciation charged in the year
-
0
39,424
31,373
764
71,561
Eliminated in respect of disposals
-
0
-
0
-
0
(126,042)
(126,042)
At 31 December 2025
-
0
344,095
306,124
-
0
650,219
Carrying amount
At 31 December 2025
3,900,000
275,370
91,449
-
0
4,266,819
At 31 December 2024
5,200,000
313,114
62,999
765
5,576,878
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
14
Tangible fixed assets
(Continued)
- 27 -
Company
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 January 2025
617,784
337,751
126,043
1,081,578
Additions
1,680
59,823
-
0
61,503
Disposals
-
0
-
0
(126,043)
(126,043)
At 31 December 2025
619,464
397,574
-
0
1,017,038
Depreciation and impairment
At 1 January 2025
304,671
274,751
125,278
704,700
Depreciation charged in the year
39,424
31,373
764
71,561
Eliminated in respect of disposals
-
0
-
0
(126,042)
(126,042)
At 31 December 2025
344,095
306,124
-
0
650,219
Carrying amount
At 31 December 2025
275,369
91,450
-
0
366,819
At 31 December 2024
313,113
63,000
765
376,878

Freehold land and buildings with a carrying amount of £3,900,000 (2024 - £5,200,000) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Land and buildings with a carrying amount of £3,900,000 were revalued at 31 December 2025 by Colliers International Property Consultants Limited, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

No revaluation surplus exists due to the devaluation of land and buildings held.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts for the group would have been approximately £6,053,370 (2024 - £6,197,498), being cost £7,206,393 (2024 - £7,206,393) and depreciation £1,153,023 (2024 - £1,008,895).

15
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
2
2
Investments in joint ventures
17
21,000
-
0
21,000
-
0
21,000
-
0
21,002
2
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
15
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Group
Shares in joint ventures
£
Cost or valuation
At 1 January 2025 and 31 December 2025
485,000
Impairment
At 1 January 2025
485,000
Impairment loss reversals
(21,000)
At 31 December 2025
464,000
Carrying amount
At 31 December 2025
21,000
At 31 December 2024
-
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 January 2025 and 31 December 2025
485,002
Impairment
At 1 January 2025
485,000
Impairment loss reversals
(21,000)
At 31 December 2025
464,000
Carrying amount
At 31 December 2025
21,002
At 31 December 2024
2
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Coda (Wenlock) Limited
71-91, 7th Floor, Aldwych House, Aldwych, London, WC2B 4HN
Ordinary
100.00
Coda Agency Limited
71-91, 7th Floor, Aldwych House, Aldwych, London, WC2B 4HN
Ordinary
100.00
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 29 -
17
Joint ventures

Details of joint ventures at 31 December 2025 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
Happy Hunting Ground Ltd
4-6 Canfield Place, London, NW6 3BT
Ordinary
50.00
18
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,171,672
478,342
1,171,672
478,343
Unpaid share capital
2
2
2
2
Amounts owed by group undertakings
2,542,439
-
0
3,531,248
2,169,815
Other debtors
143,700
582,349
143,700
582,349
Prepayments and accrued income
4,791,043
2,394,877
4,776,542
2,481,425
8,648,856
3,455,570
9,623,164
5,711,934
19
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
21
242,400
242,400
-
0
-
0
Trade creditors
173,954
226,447
173,354
226,447
Amounts owed to group undertakings
74,236
-
0
74,236
258,659
Corporation tax payable
924,558
182,941
856,307
170,503
Other taxation and social security
1,634,840
776,282
1,613,290
732,982
Other creditors
35,293,970
18,724,615
35,267,191
18,697,836
Accruals and deferred income
5,698,022
3,356,301
5,691,947
3,348,725
44,041,980
23,508,986
43,676,325
23,435,152
20
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
21
2,545,200
2,787,600
-
0
-
0
Other borrowings
21
-
0
801,146
-
0
801,146
2,545,200
3,588,746
-
801,146
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
20
Creditors: amounts falling due after more than one year
(Continued)
- 30 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
1,818,000
-
-
21
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
2,787,600
3,030,000
-
0
-
0
Other loans
-
0
801,146
-
0
801,146
2,787,600
3,831,146
-
801,146
Payable within one year
242,400
242,400
-
0
-
0
Payable after one year
2,545,200
3,588,746
-
0
801,146

The bank loans are secured by fixed charges over the Group's land and buildings.

The other loan related to a revolving credit agreement with The.Team: SME, LLC, the ultimate controlling entity. The loan shall bear interest on any outstanding principal amount thereof at a rate per annum equal to 8.5%.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
69,007
61,338
Liabilities
Liabilities
2025
2024
Company
£
£
Accelerated capital allowances
69,007
61,338
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
22
Deferred taxation
(Continued)
- 31 -
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 January 2025
61,338
61,338
Charge to profit or loss
7,669
7,669
Liability at 31 December 2025
69,007
69,007

T he deferred tax liability set out above is expected to reverse within 48 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
162,234
101,949

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary A Shares of 1p each
10,000
10,000
100
100
Ordinary B Shares of 1p each
10,000
10,000
100
100
Ordinary W Shares of 1p each
200
200
2
2
20,200
20,200
202
202

The company has three classes of ordinary shares; A, B and W. A shares and B shares carry full voting, dividend and capital distribution rights.

W shares do not carry any voting rights except at meetings of the holders of W shares as a class. These meetings shall only be to determine matters concerning Coda (Wenlock) Limited, a subsidiary of The.Team: SME Music Limited, or the rights attaching to the W shares. No other class of share in the company shall have a right to vote on such matters. W shares only carry rights to dividends and distributions received by the company from Coda (Wenlock) Limited. No other class of share will be entitled to such distributions, unless agreed in writing by the holders of the W shares.

All Ordinary A and Ordinary B shares issued are fully paid. The Ordinary W shares issued are not fully paid and the £2 called up share capital not paid is in relation to these shares.

THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 32 -
25
Profit and loss reserves
Group
Company
2025
2024
2025
2024
as restated
as restated
£
£
£
£
At the beginning of the year
2,878,779
4,408,695
2,728,327
5,285,977
Profit for the year
4,558,137
3,756,061
4,635,011
2,728,327
Dividends
(3,997,327)
(5,285,977)
(3,997,327)
(5,285,977)
At the end of the year
3,439,589
2,878,779
3,366,011
2,728,327
26
Operating lease commitments
As lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within 1 year
-
-
154,812
433,000
Years 2-5
-
-
-
154,812
-
-
154,812
587,812
27
Events after the reporting date

As of the date of the audit report, Land and Buildings valued at £3,900,000 by the company has been marketed for £3,500,000.

As the sale price is not known at this time, an estimate of the financial effect of this reduction cannot be reasonably made.

THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 33 -
28
Related party transactions
Transactions with related parties

During the year The.Team: SME Management EMEA Limited (TSME) recharged costs of £355,208 (2024 - £368,162). TSME are a part of the same worldwide group as The.Team SME: Music Limited (TSML). As at the reporting date £74,236 (2024 - £30,601) was due to TSME. £30,158 was due from TSME (2024 - Nil).

During the year TSML recharged costs £825,158 (2024 - £97,475), accrued for income of £208,000 (2024 - £355,712) and accrued expenses of £708,000 (2024 - £211,397) relating to The.Team: SME, LLC. The.Team SME, LLC are a part of the same worldwide group as TSML. As at the reporting date £2,411 (2024 - £29,974) was due to TSML.

During the year, TSML received a further loan of $1,500,000 from The.Team: SME, LLC. Both this and the brought forward loan of $1,000,000 were repaid during the year. The loans accumulated interest at a rate per annum equal to 8.5%.

During the year, TSML loaned £2,500,000 to The.Team: SME, LLC. The loan accumulated interest at a rate per annum equal to 8.5%. As at the reporting date £2,509,897 was outstanding.

The.Team: SME, LLC received a dividend during the year of £3,037,969 (2024 - £4,017,343).

Directors received dividends during the year of £959,359 (2024 - £1,268,634).

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 between group companies where the subsidiary is wholly owned within the group.

29
Controlling party

The.Team: SME Music, LLC (formerly Wasserman Music, LLC) a company registered in the United States of Amercia, is the parent company.

The company's ultimate parent undertaking and controlling party is The.Team: SME, LLC (formerly Wasserman Media Group, LLC), a company incorporated in the United States of America.

The largest of undertakings for which group accounts have been drawn up is headed by The.Team: SME, LLC.

As at the date of signature, the directors do not consider the company to have an ultimate controlling individual due to the previous ultimate controlling individual being in the process of selling his shareholding in the company.

THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 34 -
30
Cash generated from group operations
2025
2024
as restated
£
£
Profit after taxation
4,558,137
3,756,061
Adjustments for:
Share of results of associates and joint ventures
-
20,696
Taxation charged
1,992,098
1,415,559
Finance costs
203,048
196,379
Investment income
(521,383)
(919,846)
Gain on disposal of tangible fixed assets
(25,451)
(988)
Amortisation and impairment of intangible assets
2,341
10,802
Depreciation and impairment of tangible fixed assets
71,561
93,410
Foreign exchange gains on cash equivalents
-
12,980
Other gains and losses
(21,000)
(20,696)
Movements in working capital:
Increase in debtors
(5,183,041)
(975,921)
Increase in creditors
19,772,615
3,922,046
Cash generated from operations
20,848,925
7,510,482
31
Analysis of changes in net funds - group
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank and in hand
21,003,262
16,156,041
37,159,303
Borrowings excluding overdrafts
(3,831,146)
1,043,546
(2,787,600)
17,172,116
17,199,587
34,371,703
32
Prior period adjustment
Reconciliation of changes in equity - group
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2024
Notes
£
Adjustments to prior year
Reclassification of devaluation of freehold property
1
(375,000)
Profit as previously reported
4,151,757
Profit as adjusted
3,776,757
THE.TEAM: SME MUSIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
32
Prior period adjustment
(Continued)
- 35 -
Notes to reconciliation
Reclassification of devaluation of freehold property

In the prior year the devaluation of the freehold property was recognised in other comprehensive income (via the revaluation reverse). In the current year this has changed to the extent that where the devaluation is in excess of any credit balance that existed in the revaluation reserve, the excess loss is to be reported in the profit and loss.

There is no tax effect to the above change as it had been decided by those charged with governance that no deferred tax asset should be provided for in relation to the devaluation.

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