For the financial year ended 31 July 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Kurate Music Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, Northumberland House, 303-306 High Holborn, London, WC1V 7JZ.

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

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

Turnover represents the fair value of consideration receivable by the Company for services and rights exploited during the financial period, net of amounts collected on behalf of third parties.

The Company operates as a music publishing and recorded music company and derives income primarily from:

• net distributions received under record distribution agreements; and

• net publishing income received under publishing administration agreements.

Record distribution income

Under record distribution agreements, the Company acts as principal in respect of the sound recordings but the distributor acts as agent in the exploitation and collection of income.

Turnover is recognised on receipt or entitlement to the Company’s share of exploitation income, net of distribution fees, marketing fees and similar charges deducted by the distributor, as these amounts do not represent consideration receivable by the Company.

Amounts deducted by the distributor in respect of recording artist royalties, mechanical royalties and other third‑party royalty obligations, whether paid directly by the distributor or settled through the distribution statements, are not grossed up as turnover, as the Company does not receive, control or have discretion over those amounts.

Publishing administration income

Under publishing administration agreements, the Company appoints the administrator to exploit and collect publishing income on its behalf. The administrator acts as agent in collection and administration.

Turnover is recognised net, being the Company’s contractual share of publishing income after deduction of the administrator’s commission and agreed third‑party costs.

Where the administrator pays songwriters’ royalties directly as an administrative accommodation, those payments represent the settlement of the Company’s underlying obligations to writers and do not constitute income or expenses of the administrator. Accordingly, gross publishing income and songwriter royalties are not grossed up in the Company’s turnover or cost of sales.

Excluded amounts

The following amounts are excluded from turnover:

• distribution fees and publishing administration fees;

• recording artist royalties and songwriter royalties settled directly by third parties;

• amounts collected by distributors, administrators or collection societies on behalf of artists, writers or other rightsholders.

Presentation

Turnover is presented net of VAT and other sales‑based taxes.

Foreign currency income is translated in accordance with the Company’s foreign currency accounting policy.

Cost of Sales

Cost of sales comprises costs directly attributable to the generation of turnover for the period and reflects only amounts incurred by the Company in its capacity as principal.

The Company’s cost of sales includes the following:

Distribution and administration fees

Distribution fees, marketing fees and similar charges deducted by record distributors, and publishing administration commissions deducted by publishing administrators, are not recognised as cost of sales, as the related gross income is not recognised as turnover. Such amounts represent consideration retained by agents and administrators rather than expenses incurred by the Company.

Artist and songwriter royalties

Recording artist royalties and songwriter royalties are excluded from cost of sales where such amounts are:

• deducted at source by distributors or administrators; or

• paid directly to artists, writers or composers by third‑party administrators or collection agents on the Company’s behalf.

These amounts do not represent costs incurred by the Company in the period, as the Company does not receive, control or have discretion over the related gross income and the payments represent settlement of third‑party entitlements from gross receipts collected by agents.

Where royalties are paid directly by the Company to artists or writers, such amounts are recognised as cost of sales only to the extent that the related income is recognised as turnover.

Turnover is presented net where the Company acts through agents or administrators; the underlying principal vs agent assessment is disclosed in the Principal vs Agent judgement note.

Direct exploitation costs

Cost of sales includes direct costs incurred by the Company that are clearly and directly attributable to recognised turnover, including:

• third‑party costs incurred in connection with licensing, exploitation or collection where not deducted at source; and

• directly attributable production or exploitation costs where the Company controls the related income stream.

Excluded amounts

The following are excluded from cost of sales:

• recording artist royalties and songwriter royalties settled directly by distributors, administrators or collection societies;

• amounts deducted by agents prior to remittance of net income to the Company;

• costs relating to income that is not recognised as turnover.

Presentation

Cost of sales is presented consistently with the net turnover policy, such that gross income and corresponding third‑party deductions are not separately presented where the Company acts through agents or administrators a reconciliation paragraph explaining why artist/writer royalties do not appear anywhere in the P&L despite being economically significant (auditors often ask for this once).

Principal vs Agent Judgement

In determining the appropriate presentation of turnover and cost of sales, the directors have assessed whether the Company acts as principal or agent in its principal revenue streams, in accordance with FRS 102 Section 23 (Revenue).

The assessment considers, in substance, whether the Company controls the underlying goods or services prior to transfer to customers and bears the primary risks and rewards of exploitation, including pricing discretion, credit risk and exposure to variability in returns.

Record distribution arrangements

Under the Company’s record distribution agreements, the Company controls the sound recordings and the related exploitation rights and bears the principal risks associated with ownership, including artist royalty obligations and exposure to sales performance.

However, distributors act as agents for the purposes of exploitation, billing and collection, retaining an agreed distribution fee and, in certain cases, settling third‑party royalties directly.

Accordingly:

• the Company is principal in respect of the recordings, but

• acts through an agent for collection and administration.

Turnover is therefore recognised net, being the Company’s contractual entitlement after deduction of distribution fees and amounts settled directly by the distributor on behalf of artists or other rightsholders. Gross receipts collected by the distributor do not represent consideration receivable by the Company and are not recognised as turnover or cost of sales.

Publishing administration arrangements

Under publishing administration agreements, the Company retains ownership and control of the underlying musical works but appoints the administrator to license, collect and administer publishing income on its behalf.

The administrator acts as agent, retaining a commission for administration services and, in certain cases, paying songwriters directly as an administrative accommodation.

The Company does not control the gross receipts collected by the administrator and does not have discretion over the amounts payable to writers from those receipts.

Accordingly, the Company acts as principal in respect of the publishing rights, but agent‑collected income is recognised net, representing the Company’s contractual share after administration commissions and third‑party deductions.

Amounts paid directly to songwriters by administrators represent settlement of the Company’s underlying obligations and are not grossed up through the statement of profit or loss.

Conclusion

Based on the above assessment, the directors consider that a net presentation of turnover and cost of sales faithfully represents the substance of the Company’s arrangements and avoids the overstatement of revenue and expenses where the Company does not control gross receipts.

This judgement is applied consistently across all revenue streams and accounting periods.

Turnover is presented net where the Company acts through agents or administrators; the underlying principal vs agent assessment is disclosed in the Principal vs Agent judgement note.

Rental income is recognised in the profit and loss account on an accruals basis in the period to which it relates. Income earned but not invoiced or received at the reporting date is recognised as accrued income. Amounts received in advance are recognised as deferred income and released to revenue in the period to which they relate.

Revenue is measured at the amount receivable under contractual arrangements with tenants

Music catalogue

The music catalogue represents acquired copyright interests in musical compositions and/or sound recordings. The catalogue was acquired through an arm’s‑length purchase and is recognised as an intangible fixed asset as it arises from contractual and legal rights and is expected to generate future economic benefits for the company, in accordance with FRS 102 Section 18.

The catalogue is measured at cost less accumulated amortisation and impairment losses. Amortisation is charged on a straight‑line basis over the directors’ estimate of the catalogue’s useful economic life. The carrying value of the catalogue is reviewed for impairment where indicators exist, in accordance with FRS 102 Section 27.

The directors have assessed the useful economic life of the catalogue to be 10 years, reflecting the expected pattern of future economic benefits.

Intangible fixed assets are amortised on a straight‑line basis over their estimated useful economic lives, being the period over which the directors expect the assets to generate future economic benefits, in accordance with FRS 102 Section 18.23–18.27.

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

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:

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

Investment property is held to earn rental income and/or for capital appreciation and is measured at fair value at each reporting date in accordance with FRS 102 Section 16.

The directors have assessed the fair value of the investment properties as at 31 July 2025 by reference to available market evidence, including comparable property market data and online valuation information where available. The directors consider that the carrying values of the properties at 31 July 2025 approximate to their fair values and accordingly no fair value adjustment has been recognised in the year.

No independent professional valuation was obtained during the year

The fair value of the investment properties has been determined by the directors having regard to market evidence and recent comparable transactions.

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

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

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

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

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

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

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

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

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

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

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

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

The fair value of the investment properties has been determined by the directors having regard to market evidence and recent comparable transactions.