Company No: 13157685 (England and Wales)

Contents

• Company Information
• Accountants' Report
• Balance Sheet
• Notes to the Financial Statements

Directors	G R Hodgson
	D J Jackson
	B R Mostyn

Registered office	C/O Kreston Reeves LLP
	1st Floor
	8a Ship Street
	Brighton
	BN1 1AZ
	United Kingdom

Company number

13157685 (England and Wales)

Accountant	Kreston Reeves LLP
	1st Floor
	8a Ship Street
	Brighton
	BN1 1AZ

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Sofa Boy Records Limited for the financial year ended 31 January 2026 which comprise the Balance Sheet and the related notes 1 to 9 from the Company’s accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/regulation.

This report is made solely to the Board of Directors of Sofa Boy Records Limited, as a body, in accordance with the terms of our engagement letter dated 08 May 2026. Our work has been undertaken solely to prepare for your approval the financial statements of Sofa Boy Records Limited and state those matters that we have agreed to state to the Board of Directors of Sofa Boy Records Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Sofa Boy Records Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Sofa Boy Records Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Sofa Boy Records Limited. You consider that Sofa Boy Records Limited is exempt from the statutory audit requirement for the financial year.

We have not been instructed to carry out an audit or a review of the financial statements of Sofa Boy Records Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Kreston Reeves LLP
Accountant

1st Floor
8a Ship Street
Brighton
BN1 1AZ

30 October 2026

	Note	2026		2025
		£		£
Fixed assets
Intangible assets	3	12,400		24,800
Tangible assets	4	434		2,603
		12,834		27,403
Current assets
Stocks	5	7,000		7,500
Debtors	6	33,825		18,525
Cash at bank and in hand	7	12,714		32,578
		53,539		58,603
Creditors: amounts falling due within one year	8	( 59,242)		( 46,994)
Net current (liabilities)/assets		(5,703)		11,609
Total assets less current liabilities		7,131		39,012
Net assets		7,131		39,012
Capital and reserves
Called-up share capital		100		100
Profit and loss account		7,031		38,912
Total shareholders' funds		7,131		39,012

For the financial year ending 31 January 2026 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Sofa Boy Records Limited (registered number: 13157685) were approved and authorised for issue by the Board of Directors on 30 October 2026. They were signed on its behalf by:

D J Jackson Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Sofa Boy Records Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is C/O Kreston Reeves LLP, 1st Floor, 8a Ship Street, Brighton, BN1 1AZ, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Revenue is recognised in accordance with Section 23 of FRS 102, when the significant risks and rewards of ownership have transferred, the amount can be measured reliably, and it is probable that economic benefits will flow to the entity. Revenue is recognised as follows:

Music Sales & Streaming: Recognised when the track is sold or streamed, based on reports from digital distributors.
Touring Income: Recognised on the date of performance, based on settlement statements from promoters or venues.
Merchandise Sales: Recognised at the point of sale (for in-person sales) or when goods are dispatched (for online orders).

Revenue is stated net of VAT, discounts, and returns.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets is reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 60 months. 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.

Other intangible assets

5 years straight line

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery etc.

3 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Stocks

Stocks 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 stocks to their present location and condition.

Stocks 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 stocks 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

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 creditors: amounts falling due within one year.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

2. Employees

	2026		2025
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	3		3

3. Intangible assets

	Other intangible assets		Total
	£		£
Cost
At 01 February 2025	62,000		62,000
At 31 January 2026	62,000		62,000
Accumulated amortisation
At 01 February 2025	37,200		37,200
Charge for the financial year	12,400		12,400
At 31 January 2026	49,600		49,600
Net book value
At 31 January 2026	12,400		12,400
At 31 January 2025	24,800		24,800

4. Tangible assets

	Plant and machinery etc.		Total
	£		£
Cost
At 01 February 2025	17,395		17,395
At 31 January 2026	17,395		17,395
Accumulated depreciation
At 01 February 2025	14,792		14,792
Charge for the financial year	2,169		2,169
At 31 January 2026	16,961		16,961
Net book value
At 31 January 2026	434		434
At 31 January 2025	2,603		2,603

5. Stocks

	2026		2025
	£		£
Stocks	7,000		7,500

6. Debtors

	2026		2025
	£		£
Trade debtors	30,413		18,525
Other debtors	3,412		0
	33,825		18,525

7. Cash and cash equivalents

	2026		2025
	£		£
Cash at bank and in hand	12,714		32,578

8. Creditors: amounts falling due within one year

	2026		2025
	£		£
Trade creditors	9,666		3,660
Amounts owed to related parties	960		3,098
Taxation and social security	34,832		30,941
Other creditors	13,784		9,295
	59,242		46,994

9. Related party transactions

Other related party transactions

During the year, the company incurred £2,138 of expenses on behalf of Twin Galaxies LLP, an LLP of which the directors are designated members. At the Balance Sheet date, the balance owed to the LLP at the year end was £960 (2025: £3,098).