Absolute Music Solutions Ltd - Period Ending 2020-09-30

Absolute Music Solutions Ltd

Contents

Balance Sheet	1 to 2
Notes to the Unaudited Financial Statements	3 to 10

Absolute Music Solutions Ltd

Balance Sheet

30 September 2020

	Note	2020 £	2019 £
Fixed assets
Intangible assets	4	108,200	102,640
Tangible assets	5	296,705	316,551
Investments	6	100	100
		405,005	419,291
Current assets
Stocks	7	1,499,796	1,399,569
Debtors	8	286,247	286,133
Cash at bank and in hand		1,452	1,412
		1,787,495	1,687,114
Creditors: Amounts falling due within one year	9	(1,317,464)	(1,447,778)
Net current assets		470,031	239,336
Total assets less current liabilities		875,036	658,627
Creditors: Amounts falling due after more than one year	9	(392,353)	(303,636)
Net assets		482,683	354,991
Capital and reserves
Called up share capital		100	100
Profit and loss account		482,583	354,891
Total equity		482,683	354,991

Absolute Music Solutions Ltd

Balance Sheet

30 September 2020

For the financial year ending 30 September 2020 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 9 December 2020 and signed on its behalf by:
 

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

Company Registration Number: 04827522

Absolute Music Solutions Ltd

Notes to the Unaudited Financial Statements

Year Ended 30 September 2020

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 9 December 2020.

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 rate on the date when the fair value is re-measured.

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.

Absolute Music Solutions Ltd

Notes to the Unaudited Financial Statements

Year Ended 30 September 2020

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.

Absolute Music Solutions Ltd

Notes to the Unaudited Financial Statements

Year Ended 30 September 2020

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.

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.


 

Absolute Music Solutions Ltd

Notes to the Unaudited Financial Statements

Year Ended 30 September 2020

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 38 (2019 - 43).

4	Intangible assets

	Website  £	Total £
Cost or valuation
At 1 October 2019	281,313	281,313
Additions acquired separately	66,070	66,070
At 30 September 2020	347,383	347,383
Amortisation
At 1 October 2019	178,673	178,673
Amortisation charge	60,510	60,510
At 30 September 2020	239,183	239,183
Carrying amount
At 30 September 2020	108,200	108,200
At 30 September 2019	102,640	102,640

Absolute Music Solutions Ltd

Notes to the Unaudited Financial Statements

Year Ended 30 September 2020

6	Investments

	2020 £	2019 £
Investments in subsidiaries	100	100

Subsidiaries	£
Cost or valuation
At 1 October 2019	100
Provision
Carrying amount
At 30 September 2020	100
At 30 September 2019	100

7

Stocks

	2020 £	2019 £
Other inventories	1,499,796	1,399,569

8

Debtors

	Note	2020 £	2019 £
Trade debtors		116,965	173,755
Amounts due from group undertakings		5,935	20,935
Other debtors		30,908	30,908
Prepayments		132,439	60,535
		286,247	286,133

Absolute Music Solutions Ltd

Notes to the Unaudited Financial Statements

Year Ended 30 September 2020

9

Creditors

Creditors: amounts falling due within one year

	Note	2020 £	2019  £
Due within one year
Loans and borrowings	10	216,887	352,204
Trade creditors		771,374	869,955
Social security and other taxes		210,357	73,005
Outstanding defined contribution pension costs		1,650	1,650
Other creditors		94,592	82,300
Other creditors		22,604	68,664
		1,317,464	1,447,778

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £216,887 (2019 - £352,204).

Creditors: amounts falling due after more than one year

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	10	392,353	303,636

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £392,353 (2019 - £303,636).

10	Loans and borrowings

	2020 £	2019 £
Loans and borrowings due after one year
Bank borrowings	259,892	160,000
HP and finance lease liabilities	32,461	43,636
Other borrowings	100,000	100,000
	392,353	303,636

Absolute Music Solutions Ltd

Notes to the Unaudited Financial Statements

Year Ended 30 September 2020

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	194,930	136,000
Bank overdrafts	10,781	205,028
Hire purchase contracts	11,176	11,176
	216,887	352,204

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 £275,059 (2019 - £469,218).

The total amount of guarantees not included in the balance sheet is £50,000 (2019 - £50,000). A limited guarantee exists given by the director A D Barclay in favour of HSBC Plc to secure all liabilities.