Absolute Music Solutions Ltd - Period Ending 2018-09-30

Absolute Music Solutions Ltd

Annual Report and Unaudited Financial Statements
Year Ended 30 September 2018

Registration number: 04827522

Absolute Music Solutions Ltd

Contents

Balance Sheet	1 to 2
Notes to the Financial Statements	3 to 11

Absolute Music Solutions Ltd

Balance Sheet

30 September 2018

	Note	2018 £	2017 £
Fixed assets
Intangible assets	4	47,785	30,833
Tangible assets	5	313,446	327,652
Investments	6	100	100
		361,331	358,585
Current assets
Stocks	7	1,390,869	1,420,626
Debtors	8	484,688	291,756
Cash at bank and in hand		1,075	1,243
		1,876,632	1,713,625
Creditors: Amounts falling due within one year	9	(1,638,004)	(1,710,502)
Net current assets		238,628	3,123
Total assets less current liabilities		599,959	361,708
Creditors: Amounts falling due after more than one year	9	(262,467)	(41,905)
Net assets		337,492	319,803
Capital and reserves
Called up share capital		100	100
Profit and loss account		337,392	319,703
Total equity		337,492	319,803

The notes on pages 3 to 11 form an integral part of these financial statements.

Page 1

Absolute Music Solutions Ltd

Balance Sheet

30 September 2018

For the financial year ending 30 September 2018 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 accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 15 April 2019 and signed on its behalf by:
 

......................................... A D Barclay Director

Company Registration Number: 04827522

The notes on pages 3 to 11 form an integral part of these financial statements.

Page 2

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2018

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Units 3-5
Knighton Heath Industrial Estate
855 Ringwood Road
Bournemouth
Dorset
BH11 8NE

These financial statements were authorised for issue by the Board on 15 April 2019.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Group accounts not prepared

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts..

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Page 3

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2018

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Equipment	20% straight line
Leasehold costs and alterations	Straight line over lease term
Computer equipment	33.33% straight line
Motor vehicles	25% reducing balance

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Website	Over 3 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Page 4

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2018

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 5

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2018

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 51 (2017 - 50).

Page 6

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2018

4	Intangible assets

	Website  £	Total £
Cost or valuation
At 1 October 2017	171,353	171,353
Additions acquired separately	32,480	32,480
At 30 September 2018	203,833	203,833
Amortisation
At 1 October 2017	140,520	140,520
Amortisation charge	15,528	15,528
At 30 September 2018	156,048	156,048
Carrying amount
At 30 September 2018	47,785	47,785
At 30 September 2017	30,833	30,833

Page 7

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2018

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £
Cost or valuation
At 1 October 2017	554,349	83,574	32,954	81,641
Additions	-	7,273	50,225	1,738
At 30 September 2018	554,349	90,847	83,179	83,379
Depreciation
At 1 October 2017	260,089	69,305	16,165	79,307
Charge for the year	53,400	7,984	8,383	3,675
At 30 September 2018	313,489	77,289	24,548	82,982
Carrying amount
At 30 September 2018	240,860	13,558	58,631	397
At 30 September 2017	294,260	14,269	16,789	2,334

	Total £
Cost or valuation
At 1 October 2017	752,518
Additions	59,236
At 30 September 2018	811,754
Depreciation
At 1 October 2017	424,866
Charge for the year	73,442
At 30 September 2018	498,308
Carrying amount
At 30 September 2018	313,446
At 30 September 2017	327,652

Included within the net book value of land and buildings above is £240,860 (2017 - £294,260) in respect of short leasehold land and buildings.
 

Page 8

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2018

6	Investments

	2018 £	2017 £
Investments in subsidiaries	100	100

Subsidiaries	£
Cost or valuation
At 1 October 2017	100
Provision
Carrying amount
At 30 September 2018	100
At 30 September 2017	100

7

Stocks

	2018 £	2017 £
Other inventories	1,390,869	1,420,626

8

Debtors

	Note	2018  £	2017  £
Trade debtors		356,101	191,838
Amounts due from group undertakings		24,900	32,500
Other debtors		42,547	10,908
Prepayments		61,140	56,510
		484,688	291,756

Page 9

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2018

9

Creditors

Creditors: amounts falling due within one year

	Note	2018  £	2017  £
Due within one year
Loans and borrowings	10	281,341	250,873
Trade creditors		955,243	1,076,819
Corporation tax		-	4,108
Social security and other taxes		105,769	86,952
Outstanding defined contribution pension costs		1,650	1,650
Other creditors		204,853	215,998
Accrued expenses		-	12,440
Other creditors		89,148	61,662
		1,638,004	1,710,502

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	10	262,467	41,905

10	Loans and borrowings

	2018 £	2017 £
Loans and borrowings due after one year
Bank borrowings	220,000	41,905
Finance lease liabilities	42,467	-
	262,467	41,905

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	101,905	68,572
Bank overdrafts	171,109	180,848
Finance lease liabilities	8,327	1,453
	281,341	250,873

Page 10

Absolute Music Solutions Ltd

Notes to the Financial Statements

Year Ended 30 September 2018

11	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £663,377 (2017 - £775,125).

The total amount of guarantees not included in the balance sheet is £50,000 (2017 - £50,000). A limited guarantee exists given by the director A D Barclay in favour of HSBC Plc to secure all liabilities.

Page 11