Registered number: 12566815
FOR THE PERIOD ENDED 31 DECEMBER 2025
SENTRIC MUSIC GROUP LIMITED
COMPANY INFORMATION
SENTRIC MUSIC GROUP LIMITED
CONTENTS
SENTRIC MUSIC GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2025
The directors present their strategic report for the year ended 31 December 2025.
Group turnover decreased by 14% to £57.2m (2024: £66.4m). This was mostly due to timing of major royalty receipts and minor accounting adjustments, and has since returned to growth in 2026. A strategic focus on higher margin business led to a reduction in cost of sales, falling 18% to £46.8m (2024: £56.8m), and as a result gross profit increased by 8% to £10.4m (2024: £9.6m). The gross profit margin improved to 18.2% (2024: 14.5%), an increase of 3.7 percentage points.
Administrative expenses increased by 5% to £10.3m (2024: £9.8m), reflecting continued investment in people and technology. Average headcount grew to 120 (2024: 116), with the largest increase in the Technology Development team, which grew to 28 (2024: 23) to support ongoing development of the Group's RightsApp platform. £1.2m of software development costs were capitalised during the period, taking the net book value of computer software to £4.3m (2024: £3.6m).
As a result of the improved gross margin, the group saw an operating profit of £104k, compared to an operating loss of £132k in 2024.
Interest receivable from group companies of £966k (2024: £912k) contributed to profit before taxation of £1.06m (2024: £0.77m), an increase of 37%. After a tax charge of £330k (2024: £276k), profit for the period attributable to the owners of the Parent Company was £731k (2024: £497k), an increase of 47%. Net assets grew to £10.3m (2024: £9.5m), reflecting the retention of the full profit for the period as no dividend was paid.
Turnover from the rest of the world represented 87% of Group turnover in the period (2024: 81%). This continues the Group's trend towards a more internationally-weighted revenue base, consistent with the Group's strategy of leveraging the international reach of its ultimate parent, Believe SA.
Administrative expenses increased by 5% to £10.3m (2024: £9.8m), reflecting continued investment in people and technology. Average headcount grew to 120 (2024: 116), with the largest increase in the Technology Development team, which grew to 28 (2024: 23) to support ongoing development of the Group's RightsApp platform. £1.2m of software development costs were capitalised during the period, taking the net book value of computer software to £4.3m (2024: £3.6m).
As a result of the improved gross margin, the group saw an operating profit of £104k, compared to an operating loss of £132k in 2024.
Interest receivable from group companies of £966k (2024: £912k) contributed to profit before taxation of £1.06m (2024: £0.77m), an increase of 37%. After a tax charge of £330k (2024: £276k), profit for the period attributable to the owners of the Parent Company was £731k (2024: £497k), an increase of 47%. Net assets grew to £10.3m (2024: £9.5m), reflecting the retention of the full profit for the period as no dividend was paid.
Turnover from the rest of the world represented 87% of Group turnover in the period (2024: 81%). This continues the Group's trend towards a more internationally-weighted revenue base, consistent with the Group's strategy of leveraging the international reach of its ultimate parent, Believe SA.
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SENTRIC MUSIC GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
The group 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 group seeks to mitigate risk by ensuring the roster of artists is as diverse and wide-ranging as possible to prevent over-reliance on one genre. Sales efforts are increasingly global, leveraging cross-sell opportunities of the wider group. Changes in consumer habits poses a risk to demand of the roster, however the group monitors latest developments in the industry on a constant basis to adapt quickly.
The Group also monitors the risks arising from the increasing use of artificial intelligence within the music publishing industry, including the risk of unauthorised or unlicensed use of copyrighted works and the potential for AI-generated content to affect royalty flows and the value of the Group's clients' catalogues. This is mitigated by ongoing engagement with industry bodies and collection societies on the development of licensing frameworks for AI use, active monitoring of legal and regulatory developments in the Group's key territories, and continued investment in the Group's technology and rights-matching capability to identify and protect its clients' works.
The company's direct and indirect international collection network presents risk from currency fluctuations, a risk that has increased as the proportion of Group turnover generated overseas has grown to 87% (2024: 81%). This is mitigated by natural hedging and conversion of royalty distributions using spot rates at the time of royalty receipt. Currency conversion is undertaken at times throughout the period when exchange rates are favourable. Currency hedging via institutions remains an option for managing this further should the risk become more significant.
The Group's exposure to interest rate risk remains low, with net interest payable to group undertakings of £5k in the period (2024: £7k).
The group seeks to mitigate risk by ensuring the roster of artists is as diverse and wide-ranging as possible to prevent over-reliance on one genre. Sales efforts are increasingly global, leveraging cross-sell opportunities of the wider group. Changes in consumer habits poses a risk to demand of the roster, however the group monitors latest developments in the industry on a constant basis to adapt quickly.
The Group also monitors the risks arising from the increasing use of artificial intelligence within the music publishing industry, including the risk of unauthorised or unlicensed use of copyrighted works and the potential for AI-generated content to affect royalty flows and the value of the Group's clients' catalogues. This is mitigated by ongoing engagement with industry bodies and collection societies on the development of licensing frameworks for AI use, active monitoring of legal and regulatory developments in the Group's key territories, and continued investment in the Group's technology and rights-matching capability to identify and protect its clients' works.
The company's direct and indirect international collection network presents risk from currency fluctuations, a risk that has increased as the proportion of Group turnover generated overseas has grown to 87% (2024: 81%). This is mitigated by natural hedging and conversion of royalty distributions using spot rates at the time of royalty receipt. Currency conversion is undertaken at times throughout the period when exchange rates are favourable. Currency hedging via institutions remains an option for managing this further should the risk become more significant.
The Group's exposure to interest rate risk remains low, with net interest payable to group undertakings of £5k in the period (2024: £7k).
The directors monitor the performance of the Group against a number of key financial indicators derived from the Group's financial statements, summarised below:
*Underlying EBITDA and underlying EBITDA margin are not measures defined under FRS 102. They are presented because they are used by management to monitor the Group's underlying trading performance.
*Underlying EBITDA and underlying EBITDA margin are not measures defined under FRS 102. They are presented because they are used by management to monitor the Group's underlying trading performance.
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SENTRIC MUSIC GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
Since Sentric was acquired by Believe SA in 2023, the Group has continued to develop and execute its strategy of leveraging Believe's international network, with rest-of-world turnover now representing 87% of Group turnover (2024: 81%). The Group continued to invest in its people during the period, growing average headcount to 120 (2024: 116), 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 period.
The directors expect the Group 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 Group also has £6.2m of UK trading losses available to offset against future UK taxable profits.
The directors expect the Group 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 Group also has £6.2m of UK trading losses available to offset against future UK taxable profits.
This section aims to address the responsibility of the Directors of the Group acting in good faith, to be promoting the success for the benefit of its members as its whole. The Directors and Senior management of Sentric Music Group Limited give careful consideration to the factors set out below in discharging their duties.
Decision making:
Promoting the success of the business is central to every decision taken within the Group, from the Board and Senior Management team through to all employees.
The Directors review the performance of the business on a regular basis, drawing on both financial reporting and non-financial metrics, supported by corporate reviews held at multiple points throughout the period. An annual budgeting process is used to set the Group's long-term plan and strategic direction, while short-term forecasting informs management decision-making on an ongoing basis to help ensure targets are met.
Employees:
The long-term success of the Group depends on its people. Sentric Music draws on a diverse and experienced team across its locations, and places a strong emphasis on retaining staff and developing our teams to meet the evolving needs of a growing business, supported by continued investment in training and development.
Suppliers and Customers:
Strong supplier and customer relationships are fundamental to our industry. The Group's commercial arrangements are typically built on long-term, repeat business, and this is supported by experienced Sales and Procurement teams who work to build and maintain close relationships with our key partners, enabling us to grow together.
Impact on community and environment:
The Group's impact on the community and environment is considered in all business decisions. Employee forums are used to encourage staff across the business to contribute ideas on how the Group can maximise its positive impact.
Promoting the success of the business is central to every decision taken within the Group, from the Board and Senior Management team through to all employees.
The Directors review the performance of the business on a regular basis, drawing on both financial reporting and non-financial metrics, supported by corporate reviews held at multiple points throughout the period. An annual budgeting process is used to set the Group's long-term plan and strategic direction, while short-term forecasting informs management decision-making on an ongoing basis to help ensure targets are met.
Employees:
The long-term success of the Group depends on its people. Sentric Music draws on a diverse and experienced team across its locations, and places a strong emphasis on retaining staff and developing our teams to meet the evolving needs of a growing business, supported by continued investment in training and development.
Suppliers and Customers:
Strong supplier and customer relationships are fundamental to our industry. The Group's commercial arrangements are typically built on long-term, repeat business, and this is supported by experienced Sales and Procurement teams who work to build and maintain close relationships with our key partners, enabling us to grow together.
Impact on community and environment:
The Group's impact on the community and environment is considered in all business decisions. Employee forums are used to encourage staff across the business to contribute ideas on how the Group can maximise its 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.
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SENTRIC MUSIC GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD 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 GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the period ended 31 December 2025.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation, amounted to £731 k (2024 - £497k).
The directors do not recommend a dividend.
The directors who served during the period were:
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.
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SENTRIC MUSIC GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
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 GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SENTRIC MUSIC GROUP LIMITED
We have audited the financial statements of Sentric Music Group Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the period ended 31 December 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company 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 Group's or the 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.
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SENTRIC MUSIC GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SENTRIC MUSIC GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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SENTRIC MUSIC GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SENTRIC MUSIC GROUP LIMITED (CONTINUED)
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SENTRIC MUSIC GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SENTRIC MUSIC GROUP 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 Group 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 manual consolidation journals and 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 GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SENTRIC MUSIC GROUP 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 Auditor
11th Floor, The Plaza
100 Old Hall Street
L3 9QJ
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SENTRIC MUSIC GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
REGISTERED NUMBER: 12566815
CONSOLIDATED 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 17 to 38 form part of these financial statements.
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SENTRIC MUSIC GROUP LIMITED
REGISTERED NUMBER: 12566815
COMPANY 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 17 to 38 form part of these financial statements.
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SENTRIC MUSIC GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 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 12566815.
The financial statements present consolidated group information as well as individual company information.
the United Kingdom. The registered office is 4th Floor, Walker House, Exchange Flags, Liverpool, L2 3YL and the company number is 12566815.
The financial statements present consolidated group information as well as individual company information.
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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The Group has taken advantage of the exemption available under section 1.12 of FRS 102 concerning the requirements of Section 7 Statement of Cash Flows and paragraph 3.17(d), as the ultimate parent company, Believe SA, prepares publicly available consolidated financial statements available at https://www.believe.com /investors/financials which include the Group.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 21 April 2020.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 21 April 2020.
As this set of consolidated financial statements is prepared at an intermediate level in the consolidated group structure, intercompany balances may remain as assets and liabilities to other entities further up the corporate tree.
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Group generates sufficient funds from ongoing business activities to fund its day to day working capital requirements. Current forecasts indicate that the group 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 GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 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.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Goodwill
Other intangible assets
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 estimated useful lives range as follows:
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 2025. 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, the group 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 GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 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.
The Group 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 Group's Statement of financial position when the Group
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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 Group'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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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 Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.
The whole of the turnover is attributable to the principal activity of the business.
Analysis of turnover by country of destination:
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
11.Taxation (continued)
UK trading losses totalling £6,202k are available to offset against future profits.
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
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Page 35
SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
Share premium account
Capital redemption reserve
Profit and loss account
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £314k (2024 - £228k). Contributions totalling £4k (2024 - £52k) were payable to the fund at the reporting date and are included in other creditors.
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
25.Other financial commitments
The Group is contracted to pay advances to artists in the normal course of business. At the year end, there are £333k (2024 - £337k) 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.
The parent company is Believe SA, a company incorporated in France. Believe SA produce consolidated financial statements publicly available from their website at https://www.believe.com /investors/financials
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SENTRIC MUSIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
The directors consider that the Group is entitled to exemption from the requirement to have an audit of its subsidiary undertakings under the provisions of section 479A of the Companies Act 2006 ("the Act") and members have not required some subsidiaries to obtain an audit for the year in question in accordance with section 476 of the Act.
IQ Music Limited (01863098), Masstrax Music Limited (07403474), Sentric Music Publishing Limited (07763473) and Black Rock Publishing Limited (08499946) have taken advantage of this exemption.
IQ Music Limited (01863098), Masstrax Music Limited (07403474), Sentric Music Publishing Limited (07763473) and Black Rock Publishing Limited (08499946) have taken advantage of this exemption.
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