Registration number:
Sportsafe UK Ltd
for the Year Ended 31 March 2022
Sportsafe UK Ltd
Contents
Company Information |
|
Strategic Report |
|
Directors Report |
|
Independent Auditor's Report |
|
Income Statement |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Sportsafe UK Ltd
Company Information
Directors |
Olivier Jean Bernard Esteves Jean Samuel Ferrier |
Registered office |
|
Auditors |
|
Sportsafe UK Ltd
Strategic Report for the Year Ended 31 March 2022
The directors present their strategic report for the year ended 31 March 2022.
Principal activity
The principal activity of the company is the supply, installation, inspection and repair of sports and PE facilities.
Review of the business
The company has continued to undertake its established activities of supply, installation, inspection and repair of sports and PE facilities, and its primary market remained schools, colleges and blue light services throughout the UK.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2022 |
2021 |
|
Turnover |
£'000 |
5,809 |
4,909 |
Operating profit/(loss) before exceptional costs * |
£'000 |
396 |
218 |
Average Staff Numbers |
67 |
75 |
Once restrictions eased and schools reopened in April 2021, we saw growing confidence in our customers to allow us to continue inspections. Turnover increased by 18%, this reflected 26% increase in inspection income as we had a backlog of inspections to carry out and our annual price increase came into effect in April 2021, 33% increase in repairs, we implemented some price increases on stock codes but also reduced some lower spend consumables which saw an increase in demand. 67% reduction in product sales, historically this category contained all product related items but from April 2021 only products relating from Ecommerce is recorded under product category. 21% increase in outdoor project income largely due to nature of business and confidence in us attending site and working outside. 2.6% reduction in indoor projects, a result of closures of many sports centres and other sports facilities during pandemic meant that wear and tear had been reduced.
We saw our strongest quarter in Q2 where the full effect of restrictions easing was felt, and schools began using budgets to improve sporting facilities.
We continued to provide for dilapidations work to our Head Office premises £91k ahead of the surrender of our lease in February 2022. It was necessary to surrender the lease to avoid the need for a replacement roof and other remedial works on a dilapidated building. We were also due a rent review in August 2021. We secured a larger, more modern premises that was fully refurbished and for the same rate as the rent review presented in August 2021.
We moved premises in February 2022 and costs incurred legal fees and other one-off costs of around £34k.
Profit before tax would have been £341k without the exceptional costs above.
The increase in inspection revenue is seen as very positive, as customers on the whole accepted the price increases. The inspection income has, historically, been the driver of secondary income sources (repair and product sales) and gives us a renewed platform for 2023 upon which to now work towards breakeven on inspections. This was notwithstanding the trading environment remaining difficult during the pandemic with employee absence through Covid isolation.
The gross margin remained on budget at 40%, an increase of 2% on last year (38%).
Cost of sales were 15% up on last year and represent 60% of turnover compared with 62% in prior year. Administrative costs (excluding exceptional costs) decreased by 3% on prior year and represented 34% of income compared to 41% in prior year.
Sportsafe UK Ltd
Strategic Report for the Year Ended 31 March 2022
We remain the market leader in our sector and future opportunities with our new Mobileforce operational software will set us apart from our competitors, as we have room for growth without increasing overhead costs. We are seeing our competitors slashing their inspection prices in a desperate bid to win business from us, but we understand from first-hand experience that this is not sustainable for any business longer term.
In a very unstable market due to fuel price increases and shortages, control of our direct costs will be important to continue working towards the inspection business becoming break even. Overhead costs are now stable and not likely to increase with future growth.
We retain customer confidence in our services and ensure we offer good customer service. We are reviewing what ‘added services’ we can offer to new customers that will set us aside from the companies offering loss making inspection pricing.
The pandemic has once again brought its challenges to us during the year, but with the vaccine rollout and continuation with our Covid secure practices we offer a safe and secure working environment for our staff.
The impact of the virus forced us to evaluate the future of Sportsafe and bring out the change that was needed. The level of overheads is now sustainable and new software will give us room to streamline processes and costs even further given time.
The company still remains the dominant national player in the market as regional players struggle to compete with our ability to offer a nationwide pricing structure. We retained the majority of our skilled and experienced engineers following an overdue review of their pay. This means the risk of our competitors poaching them in the future is eased a little.
The disruption caused by the Covid-19 pandemic, resulted in some of our competition diversifying into inspections but now the leisure sector is back to normal they are resuming their normal lines of work.
Principal risks and uncertainties
The war in Ukraine has led to an increase in economic uncertainty. It is likely the conflict will amplify the economic impact of the pandemic and reverberate through an increase in the cost of energy, shipping, and commodities. The biggest impact, not only for the UK but Europe, is very much going to be in terms of what it means for supply chain cost inflation. As oil prices rise, we are seeing our direct motor costs increasing significantly and this is also impacting global shipping prices which were already sky high following Brexit. We expect to see continuing price increases from our manufacturing suppliers which we will undoubtably need to pass on to our customers.
We remain highly exposed to exchange rate risk. Our funding is now entirely in euros, as our monthly management charges, and with the £/euro rate currently down on its level 12 months ago, then this debt weighs heavily. However, given that we have no rigid repayment obligations, and that the exchange loss or gain will be realised at the point of repayment, we take the view that there is little to be gained by taking on any external hedging measures.
The changes within our main market sector remain ongoing. Schools are continuing to seek Academy status, in line with Government policy, giving themselves independent control over their budgets, and therefore less influenced by their previous Education Authorities. Some are organising themselves into clusters, others are being amassed within Trusts, but either route is bringing a more commercial and keener approach to their procurement processes.
Sportsafe UK Ltd
Strategic Report for the Year Ended 31 March 2022
There also remains an increasing tendency for our customers, in all sectors, toward appointing Facilities Management Companies (FMC) to manage their maintenance requirements, and to procure contractors and suppliers. This provides opportunities for us to get more involved in lifecycle equipment planning and budgeting. This has also influenced the business model that we operate, where in the past we have achieved growth by targeting Councils and large procurement contracts with extremely low inspection prices that have led to loss making contracts. The gradual shift to academy status, and independent budget control has meant that we have had to adapt and change our model to suit these market changes. It has given us an opportunity to raise prices, market to individual entities and provide premium added value service levels, but equally these trends have had an influence on our relationship with our end users, and with the credit profile across our customer base.
The last few years have seen it difficult to recruit, with earnings expectations being higher than we have seen previously. Given our lack of pay rises in the past few years we find ourselves offering salaries that are no longer attractive to prospective candidates. There are easing levels of unemployment following the pandemic as we are seeing a rise in recruitment in light of a more positive outlook for the economy. The impact on this is people still have the opportunity to be selective of the roles they apply for and hold out for their salary expectations.
Overall, then in 2021/2022 we continued to operate in a difficult environment but made significant headway in recovering growth within our core activities of inspection and repair. We take confidence from our progress in making our pricing structure more commercially sustainable, without significant customer loss, and we remain focussed on the profitability of our customers and each customer segment - rather than on the revenue generation from each contract.
The 2022/23 trading period will undoubtedly be another very challenging year, with costs arising out of the Ukraine crisis, but we are expecting underlying trading to deliver further revenue growth and continuation of profitable trading.
The continuation of our place on the ESPO framework contact to 31st March 2025 and for our MOJ Contract until 2024, amongst others are signs of reassurance in our pricing model and our service commitment. With our average inspection pricing rising gradually we are on the right track towards achieving breakeven point on inspections.
Approved by the
.........................................
Director
Sportsafe UK Ltd
Directors Report for the Year Ended 31 March 2022
The directors present their report and the for the year ended 31 March 2022.
Directors of the company
The directors who held office during the year were as follows:
Results and dividends
The profit for the year after tax was £199,902 (2021: £106,992).
No dividends will be distributed for the year ended 31st March 2022 (2021: Nil).
Future developments
The directors aim to grow the business and turnover over the coming year.
Going concern
As at the year end the Company had net current liabilities and net liabilities of £528,057 and £277,045 respectively. The Company made a profit before tax for the period before and after exceptional costs and is being funded through the Group cash pool facility provided by Abeo, which enables the Company to meet its liabilities as they fall due. Therefore, the Company is deemed reliant on its parent.
As described in the Strategic Report, despite the coronavirus pandemic having an impact on the Company’s business, the financial results in 2022 were higher than expected. This is also despite the company surrendering the lease, at a cost, on its Head Office premises and moving to larger and more modern premises. The actions taken to control costs and operating expenses together with the uptake in our Inspection and Repair services were enough to counter these events.
As a result of the reliance on its parent, the Directors have obtained a parental support letter and have considered the availability of financial support from the treasury function managed by Abeo and the ability of the Abeo Group to continue to provide that support until at least 30th September 2023. As a result of these enquiries, the Directors are satisfied that the Company has sufficient resources and liquidity available to continue in operational existence for the period of parental support, hence the company continues to adopt the going concern basis in preparing their financial statements.
Matters covered in Strategic report
The principal activity, business review and information on principal risks and uncertainties are located in the Strategic Report.
Directors liabilities
The company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying third-party indemnity provision remains in force as at the date of approving the directors' report.
Sportsafe UK Ltd
Directors Report for the Year Ended 31 March 2022
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements 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; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditor
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Dafferns LLP as auditor of the company is to be proposed at the forthcoming Annual General Meeting.
Approved by the
.........................................
Director
Sportsafe UK Ltd
Report of the Independent Auditors to the Members of Sportsafe UK Ltd
Opinion
We have audited the financial statements of Sportsafe UK Ltd (the 'company') for the year ended 31 March 2022, which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The 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 company's affairs as at 31 March 2022 and of its 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 director's 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 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.
Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 statements, our 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Sportsafe UK Ltd
Report of the Independent Auditors to the Members of Sportsafe UK Ltd
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the 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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor’s 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 a Report of the Auditor’s 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 financial statements.
Sportsafe UK Ltd
Report of the Independent Auditors to the Members of Sportsafe UK Ltd
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• Enquiry of management and those charged with governance around actual and potential litigation and claims;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Report of the Auditors.
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 2006. Our 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 a Report of the Auditors 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.
......................................
For and on behalf of
One Eastwood
Harry Weston Road
Binley Business Park
CV3 2UB
Sportsafe UK Ltd
Profit and Loss Account for the Year Ended 31 March 2022
Note |
2022 |
2021 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses less exceptional expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit/(loss) before exceptional expenses |
396,266 |
217,955 |
|
Administrative expenses - exceptional expenses |
(141,357) |
(337,503) |
|
Operating profit/(loss) |
254,909 |
(119,548) |
|
Interest payable and similar expenses |
( |
( |
|
Profit/(loss) before tax |
|
( |
|
Tax on profit/(loss) |
- |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
The notes form part of these financial statements
Sportsafe UK Ltd
Statement of Comprehensive Income for the Year Ended 31 March 2022
2022 |
2021 |
|
Profit for the year |
|
|
Other comprehensive income |
- |
- |
Total comprehensive income/(loss) for the year |
|
|
Sportsafe UK Ltd
(Registration number: 03370067)
Balance Sheet as at 31 March 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net liabilities |
( |
( |
|
Capital and reserves |
|||
Called up share capital |
2,701 |
2,701 |
|
Capital redemption reserve |
300 |
300 |
|
Profit and loss account |
(280,046) |
(479,948) |
|
Shareholders' deficit |
(277,045) |
(476,947) |
Approved and authorised by the
.........................................
Director
The notes form part of these financial statements.
Sportsafe UK Ltd
Statement of Changes in Equity for the Year Ended 31 March 2022
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 April 2021 |
|
|
( |
( |
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
At 31 March 2022 |
|
|
( |
( |
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 April 2020 |
|
|
( |
( |
Profit for the year |
- |
- |
|
|
Total comprehensive loss |
- |
- |
|
|
At 31 March 2021 |
|
|
( |
( |
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
General information |
The company is a private company limited by share capital, incorporated in England. The company's registered number and registered office address can be found on the Company information page.
The presentation currency of the financial statements is the Pound Sterling (£).
These financial statements were authorised for issue by the
Going Concern
As at the year end the Company had net current liabilities and net liabilities of £528,057 and £277,045 respectively. The Company made a profit before tax for the period before and after exceptional costs and is being funded through the Group cash pool facility provided by Abeo, which enables the Company to meet its liabilities as they fall due. Therefore, the Company is deemed reliant on its parent.
As described in the Strategic Report, despite the coronavirus pandemic having an impact on the Company’s business, the financial results in 2022 were higher than expected. This is also despite the company surrendering the lease, at a cost, on its Head Office premises and moving to larger and more modern premises. The actions taken to control costs and operating expenses together with the uptake in our Inspection and Repair services were enough to counter these events.
As a result of the reliance on its parent, the Directors have obtained a parental support letter and have considered the availability of financial support from the treasury function managed by Abeo and the ability of the Abeo Group to continue to provide that support until at least 30th September 2023. As a result of these enquiries, the Directors are satisfied that the Company has sufficient resources and liquidity available to continue in operational existence for the period of parental support, hence the company continues to adopt the going concern basis in preparing their financial statements.
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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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.
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Financial Reporting Standard 102- reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
• the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
• the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Abeo S.A as at 31st March 2022 and these financial statements may be obtained from Berkveld 1, 5709 AE Helmond, The Netherlands.
Significant judgements and estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
• Inventory provisioning
The company undertakes supply, installation, inspection & repair of sports and PE facilities. As a result, it is necessary to consider the recoverability of the costs of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability and usage of goods.
• Dilapidations provisioning
The company has a provision for dilapidations on their head office building in lieu of exiting the lease. The estimate is based on a schedule of dilapidations prepared by a surveyor.
Turnover
Turnover from the supply, installation, inspection and repair of sports and PE facilities is recognised to the extent the company obtains the right to consideration in exchange for its performance. Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes made in the United Kingdom.
Government grants
Grants are accounted under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the profit and loss in the same period as the related expenditure. A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.
Foreign currency transactions and balances
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred Tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits
Tangible fixed 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.
Depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Asset class |
Depreciation method and rate |
Short Leasehold |
Straight line over the period of the lease |
Plant and Machinery |
Straight line, 25% |
Fixtures and Fittings |
Straight line, 25% |
Motor Vehicles |
Straight line, 20% |
Tools |
Straight line, 20% |
Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Customer base is being amortised evenly over its estimated useful life of 10 years.
Computer software and website is being amortised evenly over its estimated useful life of 4 years.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.
Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Financial Instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial Instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and libailities are offset, with the net amounts presented in the financial statements, when there is legally enforceable right to set off the recognised amounts and there is no intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial interests
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transactions price. Such assets are subsequently carried at fair value and the changes in fair value are recognized in profit or loss, except those investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial interests
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognized in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognized, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognized. The impairment reversal is recognized in profit or loss.
Derecognition of financial assets
Financial assets are derecognized only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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.
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognized at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognized initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognized in profit and loss in finance costs or finance income as appropriate, unless hedge accounting is applied, and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognized when the company’s contractual obligations expire or are discharged or cancelled.
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2022 |
2021 |
||
Inspection |
1,350,994 |
1,072,448 |
|
Repair |
3,331,689 |
2,506,193 |
|
Product |
162,869 |
503,053 |
|
Projects Outdoor |
803,394 |
663,561 |
|
Projects Indoor |
159,664 |
163,976 |
|
5,808,610 |
4,909,231 |
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Operating profit |
Arrived at after charging/(crediting)
2022 |
2021 |
|
Depreciation expense (see note 11) |
|
|
Amortisation expense (see note 10) |
|
|
Operating lease expense |
|
|
Loss on disposal of property, plant and equipment |
|
- |
Furlough income |
(2,000) |
(350,207) |
Exceptional expenses |
2022 |
2021 |
||
Restructuring costs |
- |
137,587 |
|
Dilapidations |
107,650 |
141,750 |
|
Onerous lease costs |
33,707 |
58,166 |
|
141,357 |
337,503 |
Interest payable and similar expenses |
2022 |
2021 |
|
Interest on obligations under finance leases and hire purchase contracts |
- |
|
ABEO group interest |
|
|
Foreign exchange (gains) / losses |
|
- |
Bank charges |
|
|
|
|
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Termination costs (note 4) |
- |
|
Pension costs, defined contribution scheme |
|
|
|
|
The average monthly number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2022 |
2021 |
|
Director |
|
|
Employees |
|
|
|
|
All of the directors are employed by other group undertakings and costs are incorporated into group management charges and it is not possible to seperately identify.
Auditors' remuneration |
2022 |
2021 |
|
Audit of the financial statements |
|
|
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Taxation |
Analysis of the tax credit
The tax credit on the loss for the year was as follows:-
2022 |
2021 |
|
Current taxation |
||
UK corporation tax |
- |
( |
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2022 |
2021 |
|
Profit/(loss) before tax |
|
( |
Corporation tax at standard rate |
|
( |
Effect of tax losses |
( |
- |
Tax decrease from effect of capital allowances and depreciation |
( |
- |
Unrelieved tax losses carried forward |
- |
|
Group relief received |
- |
( |
Total tax credit |
- |
( |
The UK Budget 2021 announcements on 3 March 2021 included measures to support economic recovery as a result of the ongoing COVID-19 pandemic. These included an increase to the UK’s main corporation tax rate to 25%, which is due to be effective from 1 April 2023. These changes were substantively enacted on 24 May 2021. It is not anticipated that these changes will have a material impact on the company’s deferred tax balances.
Unprovided tax asset
2021 |
2021 |
|
Accumulated tax losses |
24,014 |
61,306 |
Accelerated capital allowances |
(6,772) |
(9,791) |
17,242 |
51,515 |
Deferred tax assets are recognised for tax loss carry forwards and timing differences to the extent that the realisation of the related tax benefit through future taxable profits is probable. Deferred tax assets are not recognised on net unused losses due to the uncertainty over the level of future taxable profits against which it would be recovered which is in accordance with the company's accounting policies.
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Intangible assets |
Customer list |
Computer software and website |
Total |
|
Cost or valuation |
|||
At 1 April 2021 |
|
|
|
Additions acquired separately |
- |
|
|
At 31 March 2022 |
|
|
|
Amortisation |
|||
At 1 April 2021 |
|
|
|
Amortisation charge |
|
|
|
At 31 March 2022 |
|
|
|
Carrying amount |
|||
At 31 March 2022 |
|
|
|
At 31 March 2021 |
|
|
|
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Tangible assets |
Short leasehold |
Fixtures and fittings |
Motor vehicles |
Tools, plant and machinery |
Total |
|
Cost or valuation |
|||||
At 1 April 2021 |
|
|
- |
|
|
Additions |
|
|
|
|
|
Disposals |
( |
( |
- |
- |
( |
At 31 March 2022 |
|
|
|
|
|
Depreciation |
|||||
At 1 April 2021 |
|
|
- |
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
( |
( |
- |
- |
( |
At 31 March 2022 |
|
|
|
|
|
Carrying amount |
|||||
At 31 March 2022 |
|
|
|
|
|
At 31 March 2021 |
|
|
- |
|
|
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Stocks |
2022 |
2021 |
|
Stocks |
|
|
Stocks recognised as an expense in the period was £2,106,673 (2021: £1,545,670)
Debtors |
Note |
2022 |
2021 |
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
- |
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Accrued income |
|
|
|
|
|
||
Less non-current retentions |
- |
( |
|
Total current trade and other debtors |
|
|
Amounts owed by group undertakings are unsecured, non-interest bearing and payable on demand
Creditors |
Note |
2022 |
2021 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts owed to parent undertakings |
|
|
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
|
|
Amounts owed to parent undertakings are unsecured, interest bearing and payable on demand
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Provisions for liabilities |
Onerous contracts |
Dilapidations |
Total |
|
At 1 April 2021 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
( |
At 31 March 2022 |
|
|
|
|
The company had a provision for dilapidations on their head office building in lieu of exiting the lease expected in 2022. The estimate was based on a schedule of dilapidations prepared by a surveyor.
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
|
|
2,701 |
|
2,701 |
Reserves |
Capital redemption reserve records the nominal value of shares repurchased by the company.
Profit and loss account represents accumulated profits and losses less any dividends payable.
Pension Commitments |
The company operates money purchase pension schemes for employees. Contributions to the policies during the financial period amounting to £43,132 (2021:£56,276) have been charged to the profit and loss account. At 31st March 2022 a balance of £2,876 (2021:£1,719) was outstanding and has subsequently been paid since the year end.
Sportsafe UK Ltd
Notes to the Financial Statements for the Year Ended 31 March 2022
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2022 |
2021 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Commitments |
Capital commitments
The total amount contracted for but not provided in the financial statements was £
Guarantees
The company is part of one of three multi-currency ABEO group cash pool arrangements. Within these cash pools, each company has entered into an unlimited cross guarantee in respect of bank borrowings with fellow participating companies.
Ultimate parent company |
JFS B.V, a company registered in The Netherlands, is the immediate parent undertaking of Sportsafe UK Ltd.
Abeo S.A, a company registered in France, is the ultimate parent undertaking of Sportsafe UK Ltd.
The smallest and largest group of undertakings for which group accounts have been drawn up is that headed by Abeo S.A. Copies of these accounts are available from their registered office, 6, Rue Benjamin Franklin-Bp 10, 70190 Rioz, France.
The ultimate controlling party is OJB Esteves.
Related party disclosures |
The amount of employee compensation (including employers NI) received by key management personnel is £238,080 (2021:£230,704).