The directors present the strategic report for the period ended 31 December 2025.

The group changed its accounting reference date to 31 December for commercial reasons. The current period therefore covers the eighteen months from 1 July 2024 to 31 December 2025, and the comparative figures cover the twelve months ended 30 June 2024, so the two periods are not comparable.

With effect from 1 July 2024 the company changed its functional currency from sterling to US dollars. The majority of the group's revenue, catalogue acquisitions and external borrowings are denominated in US dollars, and the directors consider that the US dollar best reflects the primary economic environment in which the company now operates. The financial statements are presented in US dollars.

The principal activity of the company is that of a holding company and the provision of management, music supervision and advisory services to its subsidiaries and to the funds it manages.

The principal activities of the group are the acquisition, management and exploitation of music rights and copyrights for film, television, advertising and digital platforms, together with record label activities, music supervision and related services, and asset management.

The results for the period are set out on page 9 of the financial statements.

Cutting Edge Group Limited is the parent of a group of businesses operating across the film and TV music rights sector. The company provides strategic guidance, financial oversight and resource allocation to its subsidiaries, the largest of which is the Music Holdings Limited sub-group, in which the company holds 91%. The Music Holdings Limited sub-group holds the majority of the group's music catalogues and all of its external bank facilities.

The group's objectives are centred on maximising the value of its music rights and portfolio companies by:

• Providing funding through its external lenders and fund structures in order to finance acquisitions.

• Providing analysis, due diligence and legal work in relation to acquisitions.

• Optimising operational efficiencies across its subsidiaries.

Group revenue for the eighteen-month period was $71.4 million (year ended 30 June 2024: $34.6 million), equivalent to approximately $47.6 million on an annualised basis. Publishing and copyright administration remained the largest revenue stream at $44.8 million, followed by record label income of $19.6 million. The group also recognised $3.8 million of asset management income, arising from the management of the group's funds.

Gross margin improved to 75.1% (2024: 64.2%), reflecting the growth of catalogues held by the group and the higher proportion of publishing and asset management income. Operating profit before amortisation and impairment was $31.0 million (2024: $12.0 million).

The group continued to expand its collection of catalogues, adding $41.7 million of copyrights during the period, funded by further drawdowns under the Music Holdings Limited facilities with Fifth Third Bank and Northleaf Capital Partners. Total borrowings at 31 December 2025 were $265.3 million (30 June 2024: $222.1 million).

The loss before taxation of $41.6 million (2024: $4.8 million) is stated after non-cash amortisation of intangible assets of $37.8 million and finance costs of $36.3 million, both of which increased as a result of the larger catalogue, the higher level of borrowings and the longer reporting period.

During the period the group disposed of its interests in MFCE Entertainment (Holdings) Limited, MFCE Productions Limited, LOTD 25 Limited and LOTD Christmas Limited.

At 31 December 2025 the group had net liabilities of $43.3 million (30 June 2024: $10.3 million). The directors consider that the fair value of the group's intangible assets, which is supported by an independent valuation, significantly exceeds their carrying amount in the statement of financial position.

At 31 December 2025 the group had net current liabilities of $25.7 million (30 June 2024: net current assets of $0.7 million). This principally reflects an advance of $25.3 million, included within other payables, which is repayable from future income earned by the group and has no fixed repayment date. Excluding this advance, the group's net current liabilities would be $0.4 million. The directors expect the group to meet its remaining current liabilities as they fall due from the cash generated by its music catalogues, which delivered operating profit before amortisation and impairment of $31.0 million in the period, together with cash and cash equivalents of $12.7 million at the period end.

Future developments

The group continues to acquire, manage and licence music rights across various platforms, including film, television, advertising and digital streaming services. By holding a robust catalogue, maintaining strong relationships with partners and investing in talent, the group is committed to maximising the value of its music rights portfolio and delivering long-term growth.

The group is exposed to a number of business and financial risks from its operating activities. The board of directors is responsible for ensuring that these risks are actively managed. The group does not trade financial instruments, nor does it currently use financial derivatives. The key risks are identified below.

Currency risk - Due to the global nature of the business, with sales and operations in multiple countries, the group is exposed to fluctuations in sterling and the euro against the US dollar, the functional currency of the company and of most of the group's operations. Currency exposure is managed by matching, as far as possible, income and expenditure in these currencies.

Credit risk - The board manages its credit risk by ensuring that it only engages with counterparties that have high credit ratings. The group sets and actively monitors credit limits for its counterparties based on reference checks and payment history.

Liquidity (cash flow) risk - The group manages its cash flow to ensure it can meet its obligations and requirements, including the servicing of its loan facilities and compliance with the associated financial covenants.

Interest rate risk - One of the key financial risks facing the group is exposure to fluctuations in interest rates on its loan facilities. A significant portion of the group's debt is financed through variable-rate loans linked to SOFR. Increases in interest rates could lead to higher borrowing costs, which may negatively impact cash flow, profitability and the ability to invest in growth opportunities.

To mitigate this risk, the group closely monitors movements in interest rates and engages in proactive financial management. In light of current economic conditions and ongoing central bank policies aimed at managing inflation, the group continues to evaluate the structure of its loan portfolio to ensure it remains aligned with its long-term financial strategy while maintaining sufficient liquidity to meet its obligations.

Catalogue performance and valuation risk - The value of the group's music rights depends on the continued exploitation of its catalogues and on wider trends in streaming, licensing and media consumption. The group manages this risk by holding a diversified catalogue, carrying out detailed due diligence before acquisition and obtaining independent valuations of its intangible assets.

As Cutting Edge Group Limited is primarily a holding company, it measures performance through the following group KPIs:

• Consolidated income and operating profit before amortisation and impairment

• Debt levels and liquidity position

Finance costs increased to $36.3 million (2024: $7.3 million), reflecting a full eighteen months of interest on the Music Holdings Limited facilities put in place in April 2024, further drawdowns during the period to fund catalogue acquisitions, and the variable SOFR-linked rates on those facilities. The above KPIs are reflective of the Cutting Edge Group Limited group. The current period covers eighteen months and the comparative period twelve months. The results of subsidiaries have been reflected for the period that they were part of the group.

On behalf of the board

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

The results for the period are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

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

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

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable 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 and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The group has net liabilities of $43,290,988 (2024 - $10,256,491). The directors have considered the fair value of the group's intangible assets, which significantly exceeds their carrying amount in the Statement of Financial Position. This fair value assessment has been supported by an independent valuation.

Furthermore, the group has access to loan facilities in order to enable the group to continue its expansion through the acquisition of music catalogues. These facilities provide the available resources to continue in operational existence for the foreseeable future Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The strategic report contains details of the principal activities of the group and includes a business review which provides information on the development of the group's business during the year, together with details of the risks and uncertainties that affect the group's business.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Cutting Edge Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2025 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• The information given in the strategic report and the directors' report for the financial period 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 group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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

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

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.

Capability of the audit in detecting irregularities, including fraud:

Based on our understanding of the company and the industry, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with tax regulations and anti-bribery and anti-corruption laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries. Audit procedures performed by the auditors included:

-    Discussions with key management personnel, including consideration of known or suspected instances     of non-compliance with laws and regulations;

-    Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and     regulations;

-    Identifying and testing manual journal entries, in particular any journal entries posted with unclear     rationale.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The notes on pages 18 to 44 form part of these financial statements.

The notes on pages 18 to 44 form part of these financial statements.

The notes on pages 18 to 44 form part of these financial statements.

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

The notes on pages 18 to 44 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s loss for the year was $10,999,710 (2024 - $87,333,420 profit).

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

The notes on pages 18 to 44 form part of these financial statements.

The notes on pages 18 to 44 form part of these financial statements.

Cutting Edge Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 9, First Floor, Westworks, 195 Wood Lane, London, W12 7FQ.

The group consists of Cutting Edge Group Limited and all of its subsidiaries.

The current period figures are presented for the eighteen-month period from 1 July 2024 to 31 December 2025. The prior year figures are presented for the twelve-month period ended 30 June 2024 and therefore are not comparable.

The decision to change the company's reporting date was for commercial reasons.

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

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

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

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

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

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

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

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

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

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

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

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

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

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

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

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

The group has net liabilities of $43,290,988 (2024 - $10,256,491). The directors have considered the fair value of the group's intangible assets, which significantly exceeds their carrying amount in the Statement of Financial Position. This fair value assessment has been supported by an independent valuation.

Furthermore, the group has access to loan facilities in order to enable the group to continue its expansion through the acquisition of music catalogues. These facilities provide the available resources to continue in operational existence for the foreseeable future Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue is recognised at the fair value of the consideration received or receivable for sales of records, consultancy, royalties, licencing fees charged, asset management, and live event income, 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.

Royalties receivable and the sale of rights to future income during the year are recognised on an accruals basis in accordance with the amounts receivable as a result of intangible asset use during the year.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is between 3-20 years.

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

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

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

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 recognised in the income statement.

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

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

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

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

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

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

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

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

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

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

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.

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

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

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

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

Basic financial assets, which include trade and other receivables 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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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

Basic financial liabilities, including trade and other payables, bank loans, 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.

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

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

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

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

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

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

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

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

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

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

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

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

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 leased asset are consumed.

Transactions in currencies other than US Dollars 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.

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

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

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

Intangible assets (copyrights) are amortised over their useful lives of 10 or 20 years.

When assessing provisions against trade and other receivables, management consider a number of factors, including the ageing profile of the receivables and historical information.

When estimating royalties payable, management consider a number of factors, including historical information and management's experience of such costs.

When assessing provisions against investments, management consider a number of factors, including the net assets or liabilities of the investment and analysis of future profitability.

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

Their aggregate remuneration comprised:

The actual (credit)/charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

More information on impairment movements in the period is given in note 12.

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

The UK subsidiaries have the same registered office as the parent company.

The registered office of the US subsidiaries is 9100 Wilshire Boulevard, 455E, Beverley Hills, California, USA, 90212.

The following entities took advantage of the exemption from audit under section 479A of the Companies Act 2006:

• Cutting Edge Music Services Limited

• CEG Analytics Limited

• Mynd Group Limited

• Myndstream Limited

• Caast Limited

• Cutting Edge Media Music Limited

• White Stork Music Ltd

• Cutting Edge Conduct Holdings Limited

• Cutting Edge Conduct Limited

During the period, the group disposed of the following subsidiaries:

• MFCE Entertainment (Holdings) Limited

• MFCE Productions Limited

• LOTD 25 Limited

• LOTD Christmas Limited

Details of associates at 31 December 2025 are as follows:

The bank loan balances above relate to those held by Music Holdings Limited, one with Fifth Third Bank and one with Northleaf Capital Partners (Canada) Ltd, both of which had further drawdowns during the period.

The Fifth Third Bank loan of $184,337,683 is repayable on 2 April 2029 and carries an interest rate of SOFR + 2.85%.

The Northleaf Capital Partners (Canada) Ltd loan of $81,912,000 is repayable over the period until 31 July 2029 and carries an interest rate of SOFR + 8.10%

There is a cross party guarantee in respect of the bank loans held by Music Holdings Limited which has been provided by the subsidiaries of Music Holdings Limited.

The other loans balance includes a loan of $3,750,000 to Cutting Edge Group Limited. This loan was issued on 13 May 2024, is repayable in 2029, and bears interest at between 7.5%-14.5% over the loan term. During the year, $446,969 of interest was charged on the loan.

The residual $609,676 sitting within other loans relates to loans given by the directors of CEG Analytics Limited. The loans are interest free and repayable on demand.

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

A total of $1,721,723 of the deferred tax liability set out above is expected to reverse within 12 months and relates to the fair value of intangible assets on acquisition.

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

All shares have attached to them full voting rights, dividend and capital distribution (including on winding up) rights; they do not confer any rights on redemption.

The share premium reserve contains the premium arising on the issue of equity shares, net of issue expenses.

The capital redemption reserve is a non-distributable reserve representing the nominal value of shares which have been repurchased.

The retained earnings reserve represents the company's and the subsidiaries' relevant proportion of cumulative profits and losses, net of the parent company's dividends paid and other adjustments.

The retained earnings reserve represents cumulative profits and losses, net of dividends paid and other adjustments.

The currency translation reserve represents cumulative exchange differences arising on the translation of the financial statements of foreign operations into the presentational currency of the group.

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

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

The remuneration of key management personnel is as follows.

During the period the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

Should Mynd Group Limited be unable to repay the amount owed to Myndstream Limited of $2,700,118, Cutting Edge Group Limited will provide the necessary financial support to ensure repayment of the debt.