Company Registration No. SC059883 (Scotland)
G.M.S. (RECORDINGS) LIMITED
T/A MARZIPAN MEDIA
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2022
30 September 2022
PAGES FOR FILING WITH REGISTRAR
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
G.M.S. (RECORDINGS) LIMITED
T/A MARZIPAN MEDIA
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
G.M.S. (RECORDINGS) LIMITED
T/A MARZIPAN MEDIA
BALANCE SHEET
AS AT
30 SEPTEMBER 2022
30 September 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
510,540
497,543
Tangible assets
4
84,125
95,338
594,665
592,881
Current assets
Stocks
20,949
23,775
Debtors
5
85,449
92,327
Cash at bank and in hand
22,911
36,837
129,309
152,939
Creditors: amounts falling due within one year
6
(529,607)
(542,396)
Net current liabilities
(400,298)
(389,457)
Total assets less current liabilities
194,367
203,424
Creditors: amounts falling due after more than one year
7
(51,894)
(104,300)
Net assets
142,473
99,124
Capital and reserves
Called up share capital
88,900
88,900
Share premium account
137,950
137,950
Profit and loss reserves
(84,377)
(127,726)
Total equity
142,473
99,124
The notes on pages 3 to 7 form part of these financial statements.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 September 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
G.M.S. (RECORDINGS) LIMITED
T/A MARZIPAN MEDIA
BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2022
30 September 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 28 April 2023 and are signed on its behalf by:
Mr C A M Macrae
Director
Company Registration No. SC059883
G.M.S. (RECORDINGS) LIMITED
T/A MARZIPAN MEDIA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 3 -
1
Accounting policies
Company information
G.M.S. (Recordings) Limited is a private company limited by shares incorporated in Scotland. The registered office is Kinneil House, Old Polmont, Falkirk, FK2 0QS.
1.1
Accounting convention
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company meets its day to day working capital requirements through the financial support of a director. The directors consider that the company will continue to operate within this facility and the director has agreed to continue to support the company by way of loans to the company. The company has reported profit for the year and is forecasting a further profitable year ahead.true
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. On this basis, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.The financial statements do not include any adjustments that would result from a withdrawal of this support.
1.3
Turnover
Turnover 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 trade discounts.
Turnover represents amounts receivable for music rentals and supply and installation of equipment, Rentals received in advance are deferred and released over the rental period to which they relate.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets comprise the development of the company's internet delivery system and the digital music database. The assets 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:
Internet delivery system
10% reducing balance
Development costs
10% reducing balance
G.M.S. (RECORDINGS) LIMITED
T/A MARZIPAN MEDIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25% reducing balance
Motor vehicles
25% reducing balance
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.
No depreciation is provided on the music library, as in the directors' opinion, the useful life and residual value of the asset is such that any depreciation charge and accumulated depreciation would be immaterial. An annual impairment review is carried out on the carrying value of the asset.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.8
Equity instruments
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
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 profit and loss account, 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 when the company has 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.
G.M.S. (RECORDINGS) LIMITED
T/A MARZIPAN MEDIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.10
Employee benefits
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 fixed 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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
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.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
7
7
G.M.S. (RECORDINGS) LIMITED
T/A MARZIPAN MEDIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 6 -
3
Intangible fixed assets
Other
£
Cost
At 1 October 2021
1,191,456
Additions
52,960
At 30 September 2022
1,244,416
Amortisation and impairment
At 1 October 2021
693,913
Amortisation charged for the year
39,963
At 30 September 2022
733,876
Carrying amount
At 30 September 2022
510,540
At 30 September 2021
497,543
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 October 2021
219,087
Additions
2,389
Disposals
(3,700)
At 30 September 2022
217,776
Depreciation and impairment
At 1 October 2021
123,749
Depreciation charged in the year
12,622
Eliminated in respect of disposals
(2,720)
At 30 September 2022
133,651
Carrying amount
At 30 September 2022
84,125
At 30 September 2021
95,338
G.M.S. (RECORDINGS) LIMITED
T/A MARZIPAN MEDIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 7 -
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
66,871
80,432
Other debtors
18,578
11,895
85,449
92,327
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
25,735
25,735
Trade creditors
51,367
50,459
Taxation and social security
14,679
15,278
Other creditors
437,826
450,924
529,607
542,396
Bank loans are secured by a bond and floating charge over the assets of the company.
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
51,894
104,300
Bank loans are secured by a bond and floating charge over the assets of the company.