Registered number: 05721428
FOR THE YEAR ENDED 31 DECEMBER 2025
SENTRIC MUSIC LIMITED
COMPANY INFORMATION
SENTRIC MUSIC LIMITED
CONTENTS
SENTRIC MUSIC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their strategic report for the year ended 31 December 2025.
Turnover decreased by 13% to £56.4m (2024: £65.1m). This was mostly due to timing of major royalty receipts and minor accounting adjustments and has since returned to growth in 2026. Cost of sales fell by a greater proportion, down 18% to £46.2m (2024: £56.1m), reflecting a strategic focus on higher-margin business, and as a result gross profit increased by 12% to £10.2m (2024: £9.1m). The gross profit margin improved to 18.1% (2024: 14.0%), an increase of 4.1 percentage points.
Administrative expenses increased by 6% to £10.0m (2024: £9.4m), reflecting continued investment in people and technology. The average number of employees grew to 120 (2024: 107), with the largest increase in the Technology Development team, which grew to 28 (2024: 23) to support ongoing development of the Company’s RightsApp platform. £1.2m of software development costs were capitalised during the year, taking the net book value of computer software to £4.3m (2024: £3.6m).
As a result of the improved gross margin, the Company recorded an operating profit of £249k, compared to an operating loss of £312k in 2024.
Interest receivable from group companies of £950k (2024: £892k) contributed to a profit before taxation of £1.20m (2024: £0.58m), an increase of 107%. After a tax charge of £279k (2024: £143k), profit for the year was £920k (2024: £437k), an increase of 110%. Net assets grew to £9.5m (2024: £8.6m), reflecting the retention of the full profit for the year as no dividend was paid.
Turnover from the rest of the world represented 86% of the Company’s turnover in the year (2024: 81%), consistent with the wider Group’s strategy of leveraging the international reach of its ultimate parent, Believe SA.
Administrative expenses increased by 6% to £10.0m (2024: £9.4m), reflecting continued investment in people and technology. The average number of employees grew to 120 (2024: 107), with the largest increase in the Technology Development team, which grew to 28 (2024: 23) to support ongoing development of the Company’s RightsApp platform. £1.2m of software development costs were capitalised during the year, taking the net book value of computer software to £4.3m (2024: £3.6m).
As a result of the improved gross margin, the Company recorded an operating profit of £249k, compared to an operating loss of £312k in 2024.
Interest receivable from group companies of £950k (2024: £892k) contributed to a profit before taxation of £1.20m (2024: £0.58m), an increase of 107%. After a tax charge of £279k (2024: £143k), profit for the year was £920k (2024: £437k), an increase of 110%. Net assets grew to £9.5m (2024: £8.6m), reflecting the retention of the full profit for the year as no dividend was paid.
Turnover from the rest of the world represented 86% of the Company’s turnover in the year (2024: 81%), consistent with the wider Group’s strategy of leveraging the international reach of its ultimate parent, Believe SA.
The company will always be at risk from the unfulfillment of contractual obligations. This is mitigated by effective leadership, strong internal processes and the implementation of innovative technological solutions.
The company’s direct and indirect international collection network presents risk from currency fluctuations. This is mitigated by natural hedging and a policy of royalty distribution using spot rates at the time of royalty receipt.
Currency conversion is undertaken at times throughout the year when exchange rates are favourable. Currency hedging via institutions remains an option for managing this further should the risk become more significant.
The music publishing sector continues to show continued global growth, is predicted to continue to grow and is less exposed to macroeconomic risks than many other sectors.
The company’s direct and indirect international collection network presents risk from currency fluctuations. This is mitigated by natural hedging and a policy of royalty distribution using spot rates at the time of royalty receipt.
Currency conversion is undertaken at times throughout the year when exchange rates are favourable. Currency hedging via institutions remains an option for managing this further should the risk become more significant.
The music publishing sector continues to show continued global growth, is predicted to continue to grow and is less exposed to macroeconomic risks than many other sectors.
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SENTRIC MUSIC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors monitor the performance of the Company against a number of key financial indicators derived from the Company’s financial statements, summarised below:
*EBITDA and EBITDA margin are not measures defined under FRS 102. They are calculated here on the same basis as the equivalent Group measure (operating profit before depreciation and amortisation) to aid comparability, but have not been reviewed by the Company’s auditor and should be confirmed by the directors before this report is finalised.
*EBITDA and EBITDA margin are not measures defined under FRS 102. They are calculated here on the same basis as the equivalent Group measure (operating profit before depreciation and amortisation) to aid comparability, but have not been reviewed by the Company’s auditor and should be confirmed by the directors before this report is finalised.
This section aims to address the responsibility of the Directors of the Company acting in good faith, to be promoting the success for the benefit of members as its whole. The Directors and Senior management of Sentric Music Limited give careful consideration to the factors set out below in discharging their duties.
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SENTRIC MUSIC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Decision making:
Decision making in the business is always taken with promoting the success of the business in mind, from a Director and Senior Management level to all employees in the business.
Performance of the business is frequently reviewed by the Directors through financial reporting and reviewing non-financial metrics as well as corporate reviews taking place multiple times throughout the year. Budgeting is undertaken every year to ensure the long-term plan and strategic direction for the business is set. Short term forecasting is undertaken to inform management decision-making to ensure targets are met.
Employees:
Employees are central to the long-term success of any business and the same is true of Sentric Music Group. We have a diverse skill base and range of experience across our locations and recognise that retaining our staff and growing our teams is key to the business’s growing and evolving needs.
Suppliers and Customers:
Creating and maintaining relationships with our supplier and customer base is key in our industry. Most of our commercial arrangements with customers cover repeat long-term business and this is reflected in how we manage our supply base – through long term relationships with experienced and skilled Sales and Procurement teams that foster and develop close relationships with our key businesses to ensure that we grow successfully together.
Impact on community and environment:
Impact on the community and environment is an important factor in all business decision making. Through employee forums, we encourage everyone in the business to contribute ideas about how we can maximise our positive impact.
Decision making in the business is always taken with promoting the success of the business in mind, from a Director and Senior Management level to all employees in the business.
Performance of the business is frequently reviewed by the Directors through financial reporting and reviewing non-financial metrics as well as corporate reviews taking place multiple times throughout the year. Budgeting is undertaken every year to ensure the long-term plan and strategic direction for the business is set. Short term forecasting is undertaken to inform management decision-making to ensure targets are met.
Employees:
Employees are central to the long-term success of any business and the same is true of Sentric Music Group. We have a diverse skill base and range of experience across our locations and recognise that retaining our staff and growing our teams is key to the business’s growing and evolving needs.
Suppliers and Customers:
Creating and maintaining relationships with our supplier and customer base is key in our industry. Most of our commercial arrangements with customers cover repeat long-term business and this is reflected in how we manage our supply base – through long term relationships with experienced and skilled Sales and Procurement teams that foster and develop close relationships with our key businesses to ensure that we grow successfully together.
Impact on community and environment:
Impact on the community and environment is an important factor in all business decision making. Through employee forums, we encourage everyone in the business to contribute ideas about how we can maximise our positive impact.
The Company is not required to disclose information in respect of greenhouse gas emissions, energy consumption and energy efficient action as its energy consumption is lower than 40,000KWh for the year.
Since the Sentric Music group of companies was acquired by Believe SA in 2023, the Company has continued to develop and execute its strategy of leveraging Believe’s international network, with rest-of-world turnover now representing 86% of the Company’s turnover (2024: 81%).
The Company continued to invest in its people during the year, growing the average number of employees to 120 (2024: 107), with particular investment in its Technology Development team to support the continued development of its RightsApp platform, on which £1.2m of development costs were capitalised during the year.
The directors expect the Company to continue to benefit from its ongoing investment in core technology, its experienced and well-connected teams, and from increased scale as it continues to grow its publishing services, both in its established markets and through cross-selling into Believe’s wider customer base.
The Company also has £6.2m of UK trading losses available to offset against future UK taxable profits.
The Company continued to invest in its people during the year, growing the average number of employees to 120 (2024: 107), with particular investment in its Technology Development team to support the continued development of its RightsApp platform, on which £1.2m of development costs were capitalised during the year.
The directors expect the Company to continue to benefit from its ongoing investment in core technology, its experienced and well-connected teams, and from increased scale as it continues to grow its publishing services, both in its established markets and through cross-selling into Believe’s wider customer base.
The Company also has £6.2m of UK trading losses available to offset against future UK taxable profits.
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SENTRIC MUSIC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
This report was approved by the board on 9 September 2026 and signed on its behalf.
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SENTRIC MUSIC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £919,843 (2024 - £437,183).
The directors do not recommend a dividend (2024 - £nil).
The directors who served during the year were:
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SENTRIC MUSIC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The business review, principal risks and uncertainties, key performance indicators, engagement with customers, suppliers and employees, the streamlined energy and carbon report and future developments are disclosed in the strategic report.
The auditor, Langtons Professional Services Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 9 September 2026 and signed on its behalf.
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SENTRIC MUSIC LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SENTRIC MUSIC LIMITED
We have audited the financial statements of Sentric Music Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
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SENTRIC MUSIC LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SENTRIC MUSIC LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial 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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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SENTRIC MUSIC LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SENTRIC MUSIC LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The objectives of our audit, in respect to fraud, are:
• to identify and assess the risks of material misstatement of the financial statements due to fraud;
• to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and
• to respond appropriately to fraud or suspected fraud identified during the audit.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR).
We understood how the Company is complying with those frameworks by making enquiries of management. Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up.
Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved:
enquiries of management; and
journal entry testing, with a focus on journals indicating large or unusual transactions based on our understanding of the business.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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SENTRIC MUSIC LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SENTRIC MUSIC LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditors
The Plaza
100 Old Hall Street
L3 9QJ
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SENTRIC MUSIC LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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SENTRIC MUSIC LIMITED
REGISTERED NUMBER: 05721428
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 September 2026 .
The notes on pages 14 to 34 form part of these financial statements.
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SENTRIC MUSIC LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The entity is a private limited liability company, limited by shares registered in England and Wales within the United Kingdom. The registered office is 4th Floor, Walker House, Exchange Flags, Liverpool, L2 3YL and the company number is 05721428.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
The company generates sufficient funds from ongoing business activities to fund its day to day working capital requirements. Current forecasts indicate that the company expects to be able to operate using funds generated from ongoing business activities for the foreseeable future. Accordingly, the directors believe it is appropriate to prepare the financial statements on the going concern basis.
Functional and presentation currency
Transactions and balances
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Artist liabilities represent only the amounts owing to account holders from monies already received by the company at the balance sheet date.
Accrued income represents the company's gross publisher share of royalty receipts that are due to the company in the future, calculated on the basis of activity undertaken in respect of the period for
which the accounts have been prepared. The accrued income included is seven months of revenue
which has been calculated on a prudent basis.
Update to accounting calculation related to value of accrued revenue and cost of goods sold:
We aim to continuously to improve the accuracy in our financial reporting through analysis of our data, particularly pertaining to accrued revenue and cost of goods sold. We continue to update our framework for estimating the value of post-year-end receipts related to in-year revenue to be more precise and comprehensive and to more accurately reflect the underlying business as it changes. The fundamental principles guiding our accounting practices remain unchanged. During 2024, we updated our accounting calculation related to the post-period end receipt of revenue generated in the period as a proactive measure to ensure that our financial reporting reflects the most accurate depiction of our business performance and financial position. It is not possible to accurately calculate the impact of these updates to the accounting calculation as the models we use are continually iterated and the models used in the past do not reflect the nature of the business today; our assessment is that the changes have reduced the value of revenue and profit recognised in the year ended 31 December 2024 compared to if we had continued to use the non-updated calculation method.
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Goodwill
Other intangible assets
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The useful economic life of intangible assets derived from capitalised software development costs is determined to be 10 years from the date of completion of the development process. The UEL of the asset was determined to be 10 years at 31 December 2023 and remains at 10 years at 31 December 2024. The software undergoes continuous enhancements and updates to incorporate new features, functionalities, and improvements. These enhancements extend the utility and economic benefits of the software. By continually updating and enhancing the software, Sentric Music Limited mitigates the risk of technological obsolescence. This ensures that the software remains relevant and competitive in the market, thereby preserving its economic value over an extended period. Market analysis and customer feedback indicate sustained revenues from the use of the software over the foreseeable future.
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
For those balances still outstanding after 5 years, an appropriate provision is made to cover these amounts.
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of financial position 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
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Analysis of turnover by country of destination:
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
10.Taxation (continued)
Trading losses of £6,202k are available to carry forward against future trading profits.
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 30
SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 31
SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Share premium account
Profit and loss account
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company pays into personal pension plans. The assets of the plans are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £314,389 (2024 - £237,699). Contributions totalling £4,425 (2024 - £51,794) were payable to the fund at the reporting date and are included in creditors.
24.Other financial commitments
The company is contracted to pay advances to artists in the normal course of business. At the year end, there are £333,142 (2024 - £337,000) of future committed advances. There are further contractually committed advances but the payment of these is dependent on the fulfillment of certain contractual requirements. Accordingly it is not possible to quantify the future commitments that may crystallise.
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SENTRIC MUSIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The immediate parent entity and also the highest parent company that produces UK consolidated accounts is Sentric Music Group Limited, a company registered in England and Wales. Consolidated financial statements of Sentric Music Group Limited are available from Companies House.
The ultimate parent company is Believe SA, a company incorporated in France. Believe SA produce consolidated financial statements publically available from their website at https://www.believe.com /investors/financials
The ultimate parent company is Believe SA, a company incorporated in France. Believe SA produce consolidated financial statements publically available from their website at https://www.believe.com /investors/financials
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