The director of the company has elected not to include a copy of the income statement within the financial statements.true

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

Proper Records Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1-5 Applegarth Drive, Questor, Dartford, Kent, DA1 1JD.

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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 405 of the Companies Act 2006 not to prepare consolidated accounts on the grounds of immateriality as its subsidiary was dormant in the current and previous year, and therefore its inclusion is not material for the purposes of giving a true and fair view. The financial statements present information about the company as an individual entity and not about its group.

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The company continues to rely on financial support from its ultimate parent company. The director has been assured that any additional funding needs of the company will be provided by its ultimate parent company should it be required to ensure the business remains a going concern for a period of at least 12 months from the date of approval of the financial statements. Based on these assessments and having regard to the resources available to the company, the director has concluded it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Sale of goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Record royalties
Royalty income is included on a receivable and / or due basis calculated on sales of records arising during each accounting period as reported by licensees.

Advances received in respect of the license royalties are carried forward and recognised as income as sales are earned over the life of the licence.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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

Property, plant and equipment 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.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include deposits held at call with banks.

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 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, which include amounts owed to group 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.

Basic financial liabilities, including trade and other payables and loans from fellow group companies, 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.

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.

All called up share capital is allotted and fully paid.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Royalties payable / recoupable expenditure

Royalties payable are expensed on an accruals basis. Royalty advances payable and recoupable payments are expensed on a paid basis except that they are carried forward and recognised as an asset where such expenditure relates to current unreleased products and where it is estimated that sufficient future royalties / earnings will be recouped against these products.

In the application of the company’s accounting policies, the director is 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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Inventories are valued at the lower of cost and estimated selling price less costs to complete and sell. Lower of cost and estimated selling price less costs to complete and sell includes, where necessary, provisions for slow moving and obsolete stock. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, and economic environment.

The average monthly number of persons (excluding directors) employed by the company during the year was 0 (2024 - 0).

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Material Uncertainty Related to Going Concern

We draw attention to note 1.2 which explains that the company relies on, and will continue to rely on, financial support from the group to continue to operate. The director has been assured that any additional future funding needs of the company will be provided should it be required. Our audit opinion is not modified in respect of this matter.

The company's banker holds a fixed and floating charge over the company's present and future assets and property.

During the financial year, the immediate parent company of Proper Records Limited changed from Proper Music Group Limited to Artone Holdings II Ltd by virtue of 100% shareholding in the company. The registered office and principal place of business is 1-5 Applegarth Drive, Questor, Dartford, Kent, United Kingdom, DA1 1JD.

During the financial year, the ultimate parent company changed from Utopia Music AG (Switzerland) Holding to Artone Holding B.V. by virtue of their 100% shareholding in Artone Holdings II Ltd. The registered office address is 59 Akeleibaan, Capelle Aan Den Ijssel, Netherlands, 2908 KA.

The financial statements of Proper Records Limited are consolidated in the financial statements of Artone Holdings II Ltd. Copies of the consolidated financial statements are available from Companies House.