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Registered number:  00764797











APPLE CORPS LIMITED
 
FINANCIAL STATEMENTS
FOR THE YEAR ENDED  31 JANUARY 2021

 
APPLE CORPS LIMITED
 
 
COMPANY INFORMATION


Y O Lennon  
O T Harrison  
J L Eastman  
B V Grakal  
S O Lennon  




J V Jones



00764797



27 Ovington Square

London

SW3 1LJ




Sopher + Co LLP
Chartered Accountants  &  Statutory Auditors

5 Elstree Gate

Elstree Way

Borehamwood

Hertfordshire

WD6 1JD





 
APPLE CORPS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1
Directors' Report
 
2
Directors' Responsibilities Statement
 
3
Independent Auditors' Report
 
4 - 7
Consolidated Statement of Comprehensive Income
 
8
Consolidated Statement of Financial Position
 
9
Company Statement of Financial Position
 
10
Consolidated Statement of Changes in Equity
 
11
Company Statement of Changes in Equity
 
11
Consolidated Statement of Cash Flows
 
12
Notes to the Financial Statements
 
13 - 27


 
APPLE CORPS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2021

 
The directors present their strategic report for the year ended 31 January 2021.

 
The Group continues to exploit audio, visual and ancillary activities mainly relating to The Beatles. Group turnover has decreased from £29.7 million to £19.6 million. Group profit for the year before taxation decreased to £2.9 million (2020 - £8.6 million). Group net assets have decreased to £15.8 million (2020 - £18.5 million). 
The Group’s annual results are impacted by audio and/or audio-visual releases in a financial year and there were no such releases in the year to 31 January 2021. In addition, the show in Las Vegas closed in March 2020 due to the pandemic and did not reopen until August 2021. As a result, the Company received no income from the show in the year and the share of joint ventures’ turnover and profit decreased substantially. Notwithstanding the reduced income, the Group continues to hold substantial net assets including significant cash reserves.

 
The directors consider that the principal risks and uncertainties faced by the group relate to the general state of the worldwide entertainment industry and the protection of copyrights. In addition, the impact of the pandemic on live entertainment remains a concern.
The directors confirm that, in accordance with the Companies Act 2006, they have considered and reviewed the provisions relating to the financial risk management and polices of the Group. As a result of the review, the directors have concluded that the Group will be able to continue funding its activities through its cash reserves, retained profits and cash flows from ongoing activities.

 
The directors consider turnover, profit, cash reserves and net assets to be the key performance indicators for the Group.


This report was approved by the board  and signed on its behalf.



J V Jones
Secretary

Date:  18 October 2021

Page 1

 
APPLE CORPS LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2021

The directors present their report and the financial statements for the year ended 31 January 2021.


The directors who served during the year were as follows:

O T Harrison  
J L Eastman  
B V Grakal  
S O Lennon  (appointed  5 October 2020 )


The profit for the year, after taxation, amounted to £ 2,309,714  (2020 -  £ 6,918,783 ) .

Ordinary dividends of £5,000,000 (2020 – £5,668,000) were declared and paid during the year. The directors do not recommend a final dividend.


The Group will continue to develop opportunities relating to its principal business activities.


The Group maintains directors’ and officers’ liability insurance which gives appropriate cover for any legal action brought against its directors in respect of liabilities incurred as a result of their office, to the extent permitted by law. This insurance cover applied throughout the financial year ended 31 January 2021 and through to the date of this report.


Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.


Under section 487(2) of the Companies Act 2006Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





J V Jones
Secretary

Date:  18 October 2021

Page 2

 
APPLE CORPS LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2021

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and the Group 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 judgments 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 will continue in business.

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

Page 3

 
APPLE CORPS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF APPLE CORPS LIMITED
 



We have audited the financial statements of Apple Corps Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 January 2021, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity  and the related notes, including a summary of significant accounting policiesThe 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 of the parent Company's affairs as at 31 January 2021 and of the Group's profit for the year 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.


Page 4

 
APPLE CORPS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF APPLE CORPS LIMITED (CONTINUED)

Other information


The directors are responsible for the other information. The other information comprises the information included in the Group Strategic Report and Directors' Report and our Auditors' Report thereon. 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.


In connection with our audit of the financial statementsour 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.


 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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.


Page 5

 
APPLE CORPS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF APPLE CORPS LIMITED (CONTINUED)

Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

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 Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 
 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
we identified the laws and regulations applicable to the Group and the Company through discussions with directors and other management, and from our commercial knowledge and experience of the audio and visual sector; 
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Group and the Company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the Group and the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 
understanding the design of the Group and the Company’s remuneration policies. 


 
Page 6

 
APPLE CORPS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF APPLE CORPS LIMITED (CONTINUED)

To address the risk of fraud through management bias and override of controls, we: 
 
performed analytical procedures to identify any unusual or unexpected relationships; 
tested journal entries to identify unusual transactions; 
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 
investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
 
agreeing financial statement disclosures to underlying supporting documentation; 
reading the minutes of meetings of those charged with governance; 
enquiring of management as to actual and potential litigation and claims; and 
reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors. 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:  www.frc.org.uk/auditorsresponsibilities . This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.





Stephen Iseman FCA  (Senior Statutory Auditor)
  
for and on behalf of
Sopher + Co LLP
 
Chartered Accountants
Statutory Auditors
  
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD

18 October 2021
Page 7

 
APPLE CORPS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2021


2021
2020
Note
£
£
   

Group and share of joint ventures' turnover
   
23,373,856
50,244,899

Less: share of joint ventures' turnover
   
(3,792,243 )
(20,568,474 )

Group turnover
   
19,581,613
29,676,425

Administrative expenses
   
(18,811,046 )
(25,022,544 )

Other operating income
 5 
1,220,600
1,612,800

Operating profit
 6 
1,991,167
6,266,681

Share of (loss)/profit of joint ventures
   
(87,233 )
1,002,522

Share of profit of associates
   
936,185
1,179,956

Total operating profit
   
2,840,119
8,449,159

Interest receivable and similar income
 10 
25,636
157,361

Interest payable and similar expenses
   
-
(329 )

Profit before taxation
   
2,865,755
8,606,191

Tax on profit
 11 
(556,041 )
(1,687,408 )

Profit for the financial year
   
2,309,714
6,918,783

   

Currency translation differences
   
(45,161 )
(7,149 )

   

Total comprehensive income for the year
   
2,264,553
6,911,634

The notes on pages 13 to 27 form part of these financial statements.

All amounts relate to continuing operations.

Page 8

 
APPLE CORPS LIMITED
REGISTERED NUMBER: 00764797

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT  31 JANUARY 2021

2021
2020
Note
£
£
   

Intangible assets
 13 
-
-

Tangible assets
 14 
1,591,632
1,650,057

Investments
 15 
1,483,419
1,670,135

   
3,075,051
3,320,192

Current assets
   

Debtors: amounts falling due within one year
 16 
7,855,779
9,143,202

Cash at bank and in hand
   
23,774,292
18,497,542

   
31,630,071
27,640,744

Current liabilities
   

Creditors: amounts falling due within one year
 17 
(18,673,507 )
(12,153,734 )

Net current assets
   
 
 
12,956,564
 
 
15,487,010

Total assets less current liabilities
   
16,031,615
18,807,202

Provisions for liabilities
   

Deferred taxation
 18 
(219,551 )
(259,691 )

Net assets
   
15,812,064
18,547,511

Capital and reserves
   

Called up share capital 
 19 
100
100

Profit and loss account
   
15,811,964
18,547,411

   
15,812,064
18,547,511


The financial statements were approved and authorised for issue by the board and were signed on its behalf by : 




J L Eastman
Director

Date:  18 October 2021

The notes on pages 13 to 27 form part of these financial statements.

Page 9

 
APPLE CORPS LIMITED
REGISTERED NUMBER: 00764797

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT  31 JANUARY 2021

2021
2020
Note
£
£

Fixed assets
   

Intangible assets
 13 
-
-

Tangible assets
 14 
1,591,632
1,650,057

Investments
 15 
321,854
321,854

   
1,913,486
1,971,911

Current assets
   

Debtors: amounts falling due within one year
 16 
7,485,620
9,596,967

Cash at bank and in hand
   
22,902,166
17,105,350

   
30,387,786
26,702,317

Current liabilities
   

Creditors: amounts falling due within one year
 17 
(17,195,992 )
(10,912,439 )

Net current assets
   
 
 
13,191,794
 
 
15,789,878

   

   

Net assets
   
15,105,280
17,761,789


Capital and reserves
   

Called up share capital 
 19 
100
100

Profit and loss account
   
15,105,180
17,761,689

   
15,105,280
17,761,789


The financial statements were approved and authorised for issue by the board and were signed on its behalf by : 


J L Eastman
Director

Date:  18 October 2021

The notes on pages 13 to 27 form part of these financial statements.

Page 10

 
APPLE CORPS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED  31 JANUARY 2021


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2019
100
17,303,777
17,303,877



Profit for the year
-
6,918,783
6,918,783

Currency translation differences
-
(7,149 )
(7,149 )

Dividends: Equity capital
-
(5,668,000 )
(5,668,000 )



At 1 February 2020
100
18,547,411
18,547,511



Profit for the year
-
2,309,714
2,309,714

Currency translation differences
-
(45,161 )
(45,161 )

Dividends: Equity capital
-
(5,000,000 )
(5,000,000 )


At 31 January 2021
100
15,811,964
15,812,064



 
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED  31 JANUARY 2021


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2019
100
14,219,412
14,219,512



Profit for the year
-
9,210,277
9,210,277

Dividends: Equity capital
-
(5,668,000 )
(5,668,000 )



At 1 February 2020
100
17,761,689
17,761,789



Profit for the year
-
2,343,491
2,343,491

Dividends: Equity capital
-
(5,000,000 )
(5,000,000 )


At 31 January 2021
100
15,105,180
15,105,280


The notes on pages 13 to 27 form part of these financial statements.

Page 11

 
APPLE CORPS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2021

2021
2020
£
£

Cash flows from operating activities

Profit for the financial year
2,309,714
6,918,783

Adjustments for:

Depreciation of tangible assets
70,771
71,055

Interest paid
-
329

Interest received
(25,636 )
(157,361 )

Taxation charge
556,041
1,687,408

Decrease/(increase) in debtors
1,405,155
(2,554,841 )

Increase in creditors
6,735,156
4,388,918

Share of operating loss /(profit) in joint ventures
87,233
(1,002,522 )

Share of operating profit in associates
(936,185 )
(1,179,956 )

Corporation tax paid
(738,843 )
(1,540,683 )

Foreign exchange
1,514,531
(1,264 )

Net cash generated from operating activities

10,977,937
6,629,866


Cash flows (used in)/from investing activities

Purchase of tangible fixed assets
(12,346 )
(18,566 )

Interest received
25,636
157,361

Dividends from associates
832,000
3,407,614

Net cash from investing activities

845,290
3,546,409

Cash flows used in financing activities

Dividends paid
(5,000,000 )
(5,668,000 )

Interest paid
-
(329 )

Net cash used in financing activities
(5,000,000 )
(5,668,329 )

Net increase in cash and cash equivalents
6,823,227
4,507,946

Cash and cash equivalents at beginning of year
18,497,542
13,991,697

Foreign exchange gains and losses
(1,546,477 )
(2,101 )

Cash and cash equivalents at the end of year
23,774,292
18,497,542


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
23,774,292
18,497,542


The notes on pages 13 to 27 form part of these financial statements.

Page 12

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021

General information

Apple Corps Limited is a limited liability company incorporated in England and Wales with its registered office address at 27 Ovington Square, London, SW3 1LJ.
The Group’s principal activities during the year continued to be the exploitation of the audio, visual and ancillary activities relating to The Beatles.

2. Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland, and the Companies Act 2006.
The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:

2.2

Basis of consolidation

The Group financial statements consolidate the financial statements of Apple Corps Limited and its subsidiary undertakings, drawn up to 31 January each year. No company Statement of Comprehensive Income is presented for Apple Corps Limited as permitted by section 408 of the Companies Act 2006.
Entities in which the Group holds an interest on a long-term basis and are jointly controlled by the Group and one or more other ventures under a contractual agreement 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. 

2.3

Associates and joint ventures

In the Group financial statements, interests in associated undertakings and joint ventures are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investor's share of the profit or loss, other comprehensive income and equity of the investee. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Statement of Financial Position, the interests in associated undertakings and joint ventures are shown as the Group's share of the identifiable net assets.

2.4

Investments

In the parent Company financial statements investments in subsidiaries, joint ventures and associates are accounted for at cost.
The carrying values of fixed asset investments are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

Page 13

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021

2. Accounting policies (continued)

2.5

Intangible assets

Intangible fixed assets acquired separately from a business are capitalised at cost. They are amortised on a straight line basis over their estimated useful life.
The carrying value of intangible fixed assets is reviewed for impairment at the end of the first full year following acquisition and in other periods if events or changes in circumstances indicate the carrying value may not be recoverable.

2.6

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. 
Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Freehold buildings      –  over 50 years
Fixtures, fittings and equipment   –  over 4 years
Website costs      –  over 3 years
Freehold land is not depreciated. The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. 

2.7

Royalty income

Royalty income is accounted for on an accruals basis. Royalty audit claims are not booked as income until amounts arising from such claims are received by the group.

  
2.8

Returns

No provision is made for any reduction in royalties in subsequent periods as a result of the return of products sold in respect of which royalties would normally have been accounted for during the year. Any reductions are accounted for as a deduction from turnover in subsequent periods.

2.9

Debtors

Short term debtors are measured at the transaction price, less any impairment.

2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on sufficient notice agreed in advance. 

2.11

Financial instruments

The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and investments in non-puttable ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

Page 14

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021

2. Accounting policies (continued)

2.12

Creditors

Short term creditors are measured at the transaction price.

2.13

Foreign currency translation

Functional and presentation currency
The Group's functional and presentational currency is £ Sterling.
Transactions and balances
 
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the Statement of Financial Position date. All differences are taken to the Consolidated Statement of Comprehensive Income.
The financial statements of overseas subsidiary undertakings and joint ventures are translated at the rate of exchange ruling at the Statement of Financial Position date. The exchange differences arising on the retranslation of opening net assets are recognised in other comprehensive income. All other translation differences are taken to the Consolidated Statement of Comprehensive Income.

2.14

Dividends

Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. 

2.15

Current and deferred taxation

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Group operates and generates income.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less, tax with the following exceptions:
- provision is made for deferred tax that would arise on remittance of the retained earnings of subsidiaries, associates and joint ventures only to the extent that, at the Statement of Financial Position date, dividends have been accrued as receivable; and
- deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the Statement of Financial Position  date.

2.16

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight line basis over the lease term.

Page 15

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021

2. Accounting policies (continued)

  
2.17

Affiliated Undertakings

In the financial statements, companies are described as affiliated to Apple Corps Limited if:
(i)  they have the same shareholders or ultimate shareholders as Apple Corps Limited; or
(ii)  the company is owned by one or more of the shareholders of Apple Corps Limited.

2.18

Pensions

Defined contribution pension plan
The Company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. 
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

In preparing these financial statements, the directors have made judgments to determine whether there are indicators of impairment of the Group’s investments. This involved estimation of future cash flows expected to be generated by these investments and the selection of appropriate discount rates in order to calculate the net present value of those cash flows.

Turnover represents income derived from the Group’s continuing ordinary activities, stated net of value added tax, and is accounted for on an accruals basis.
It is the opinion of the directors that, in view of the nature of the Group’s business, the markets in which it operates do not differ substantially from each other and are, therefore, treated as one market for the purposes of disclosing the particulars of turnover in these financial statements.

Page 16

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
2021
2020
£
£

Administration fees receivable
1,220,600
1,612,800


This is stated after charging:

2021
2020
£
£
1,535,634
(55,501 )

Other operating lease rentals
899
1,090

2021
2020
£
£

Fees Payable to the Group's auditor in respect of:


Audit-related assurance services
35,000
35,000

Taxation compliance services
73,620
58,341

108,620
93,341


2021
2020
£
£

Fees
800,000
800,000

Other emoluments
60,574
125,557

860,574
925,557


The aggregate emoluments of the highest paid director amounted to £215,143  (2020 - £231,389).

Page 17

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Staff costs, including directors' remuneration, were as follows:


Group
Group
2021
2020
£
£

Wages and salaries
2,616,568
2,598,117

Social security costs
265,935
253,523

Cost of defined contribution scheme
31,672
28,875

2,914,175
2,880,515


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
         2021
         2020
         2021
         2020
             No.
             No.
             No.
             No.









Administration
15
15
15
15

2021
2020
£
£


Bank interest receivable
24,934
156,478

Other interest
702
883

25,636
157,361

Page 18

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021

2021
2020
£
£

Corporation tax


Current tax on profits for the year
548,149
1,354,326

Adjustments in respect of previous periods
(731 )
(292 )


Double taxation relief
(8,499 )
(11,318 )

Foreign tax


Foreign tax on income for the year
46,877
333,707

Foreign tax in respect of prior periods
-
10,264

Total current tax
585,796
1,686,687

Deferred tax


Origination and reversal of timing differences
(29,755 )
721


Taxation on profit on ordinary activities
556,041
1,687,408

Factors affecting tax charge for the year

The tax assessed for the year is higher than  (2020 - higher than)  the standard rate of corporation tax in the UK of 19%  (2020 -  19 %) . The differences are explained below:

2021
2020
£
£


Profit on ordinary activities before tax
2,865,755
8,606,191


Profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)
544,493
1,635,176

Effects of:


Expenses not deductible for tax purposes
21,079
1,350

Depreciation for year greater than capital allowances
16,188
8,891

Overseas tax rate in excess of UK rate
4,529
30,704

Prior year (over)/under provision
(731 )
9,972

Movement in deferred tax
(29,755 )
721

Other timing differences
238
594

Total tax charge for the year
556,041
1,687,408

Page 19

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
The parent Company has taken advantage of section 408 of the Companies Act 2006 and has not included its own Statement of Comprehensive Income in these financial statements.  The parent Company's profit for the year was £2,343,491 (2020 - £9,210,277).

Group and Company





Trademarks

£



Cost


At 1 February 2020
518,068



At 31 January 2021

518,068



Amortisation


At 1 February 2020
518,068



At 31 January 2021

518,068



Net book value



At 31 January 2021
-



At 31 January 2020
-



Page 20

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Group and Company






Freehold property
Fixtures and fittings
Other fixed assets
Total

£
£
£
£



Cost 


At 1 February 2020
2,309,558
288,821
30,518
2,628,897


Additions
-
12,346
-
12,346



At 31 January 2021

2,309,558
301,167
30,518
2,641,243



Depreciation


At 1 February 2020
741,604
206,718
30,518
978,840


Charge for the year on owned assets
36,191
34,580
-
70,771



At 31 January 2021

777,795
241,298
30,518
1,049,611



Net book value



At 31 January 2021
1,531,763
59,869
-
1,591,632



At 31 January 2020
1,567,954
82,103
-
1,650,057

Page 21

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Group





Investments in associates
Investments in joint ventures
Total

£
£
£



Cost 


At 1 February 2020
1,030,349
639,786
1,670,135


Foreign exchange movement
-
(25,586 )
(25,586 )


Dividends received
(832,000 )
-
(832,000 )


Share of profit/(loss)
758,103
(87,233 )
670,870



At 31 January 2021

956,452
526,967
1,483,419






Net book value



At 31 January 2021
956,452
526,967
1,483,419



At 31 January 2020
1,030,349
639,786
1,670,135

Page 22

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Company





Investments in subsidiary companies
Investments in associates
Total

£
£
£



Cost 


At 1 February 2020
150,156
171,700
321,856



At 31 January 2021

150,156
171,700
321,856



Impairment


At 1 February 2020
2
-
2



At 31 January 2021

2
-
2



Net book value



At 31 January 2021
150,154
171,700
321,854



At 31 January 2020
150,154
171,700
321,854

Page 23

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021

Subsidiary undertakings and participating interests


Name

Registered office

Principal activity

Holding

Apple Corps Inc.
USA
Intermediate holding company
100 %
Apple Show Inc.
USA
Intermediate holding company
100 %
Python Music Limited
UK
Dormant
100 %
Apple Films Production Limited
UK
Film Production
100 %

All shareholdings are ordinary shares or common stock.


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Holding

Apple Records Inc. (California)
USA
Exploitation of musical copyrights
100 %
Apple Records Inc. (New York)
USA
Dormant
100 %
Apple Music Publishing Inc.
USA
Dormant
100 %
Apple Films Inc.
USA
Exploitation of film copyrights
100 %


Associates


The following were associates of the Company:


Name

Principal activity

Class of shares

Holding

Maclen (Music) Limited+
Holding company
'C' ordinary shares
20 %
Maclen Joint Limited+
Exploitation of music rights
Ordinary shares
20 %
Subafilms Limited+
Marketing, production and distribution of films
Ordinary shares
23.9 %

Maclen Joint Limited is held by an associated undertaking.
+ Year ended 31 December 2020

Page 24

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021

Joint ventures


The following were joint ventures of the Company:


Name

Registered office

Principal activity

Holding

The Cirque Apple Creation Partnership+
Creation of musical performances
50 %
Cirque Apple Las Vegas, L.L.C.*+
USA
Producing and presenting live shows
50 %

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£


Amounts owed by group undertakings
-
-
3,193,137
2,892,821

Amounts owed by joint ventures and associated undertakings
658,083
692,481
519,833
649,220

Other debtors
948,717
397,011
318,267
39,914

Prepayments and accrued income
6,248,979
8,053,710
3,454,383
6,015,012

7,855,779
9,143,202
7,485,620
9,596,967



Creditors: Amounts falling due within one year

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Amounts owed to group undertakings
-
-
703
-

Amounts owed to associated undertakings
1,078,037
1,089,282
45,398
56,643

Amounts owed to affiliated undertakings
361,429
375,542
-
-

Corporation tax
-
218,394
-
168,682

Other taxation and social security
43,773
617,142
43,773
901,486

Accruals and deferred income
17,190,268
9,853,374
17,106,118
9,785,628

18,673,507
12,153,734
17,195,992
10,912,439


Page 25

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021

Group



2021


£






At beginning of year
259,691


Charged to profit or loss
(29,753 )


Foreign exchange movement
(10,387 )



At end of year
219,551

Group
Group
2021
2020
£
£
219,551
259,691

2021
2020
£
£
Allotted, called up and fully paid



100   Ordinary  shares of £ 1  each
100
100


The Group and Company are involved in various legal disputes in the ordinary course of business and, as at 31 January 2021, the directors are of the opinion that none of the claims or disputes of which they are aware will result in a material loss to the Group or Company. 


Pension commitments

The Company contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £31,672 (2020 - £28,875).

Page 26

 
APPLE CORPS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Amounts charged to the Consolidated Statement of Comprehensive Income include aggregate fees of £3,162,500 each (2020 - £4,719,500) payable to the beneficial shareholders (Sir JP McCartney, Sir R Starkey, Mrs YO Lennon and Mrs OT Harrison) and their related companies in connection with the provision of promotional services and name and likeness rights.  At the Statement of Financial Position date, the Company owed £4,762,400 (2020 - £9,289,600) to the shareholders and their related companies.
During the year, the Company paid dividends of £1,250,000 (2020 - £1,417,000) to Mrs Y O Lennon, a director of the Company.


23.


Key management compensation

During the year, the Company paid compensation of £2,235,969 (2020 - £2,304,486) to its key management personnel.

 
Page 27