Registration number:
for the
Year Ended 30 June 2023
Go Karting for Fun Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Go Karting for Fun Limited
Company Information
Directors |
D Gaynor D J Wilkinson S A Wooldridge |
Registered office |
|
Bankers |
|
Auditors |
|
Go Karting for Fun Limited
Strategic Report for the Year Ended 30 June 2023
The directors present their strategic report for the year ended 30 June 2023.
Principal activity
The principal activity of the company is managing and operating indoor go karting tracks.
Fair review of the business
The results for the year which are set out in the profit and loss account show turnover of £55,627,486 (2022 - £59,110,949) and an operating profit of £8,437,177 (2022 – £15,827,070). At 30 June 2023 the company had total assets less current liabilities of £24,588,199 (2022 - £19,477,988). In addition, we held cash of £13,185,242 (2022 - £25,389,515).
As noted in the Chairman’s statement of Luigi Topco Limited, the ultimate parent company, this has been a phenomenal year, that has seen the business hit a series of key milestones.
Balance sheet strength
We entered the year with cash of £25,389,515. With strong trading, we finish the year with cash of £13,185,242.
Given our strong cash position our committed Revolving Facility is undrawn, giving us an additional £2.2 million of liquidity.
From 1 January 2022 the overall Group's historic covenants, that had been suspended during the Covid pandemic, again apply. Our strong cash position ensures that we have significant headroom, and despite a strong programme of growth, continue to do so throughout our three year forecast, giving security to all our stakeholders.
People engagement 'Great place to work'
We have continued to focus on all areas of crew engagement throughout the last year which has helped us again to be voted one of the Best Large Companies to work for in the UK. With high levels of trading throughout the year our crew again worked tirelessly to ensure our customers have safe, unique and exciting experiences. Our focus has been maintained to ensure we find, train, retain and reward great people and during the last year we increased our rates of pay to ensure we are one of the best paying businesses within the leisure sector.
Our focus on having a diverse and inclusive culture has also led to us being voted one of the Best Companies to Work For Women, published in Elle Magazine, post year end, in August 2023. We were also voted as one of the Best Companies for Wellbeing in the UK, thanks to our focus on looking after our Crew, giving them access to wellbeing support and education.
Go Karting for Fun Limited
Strategic Report for the Year Ended 30 June 2023
Growth strategy
Whilst international expansion remains a key strategy for the Group, we believe the UK still has significant potential for white space. In the year we identified and negotiated leases in several city centre, retail locations, enabling us to further develop our offer. We expect to announce a number of exciting new openings in 2024 across the UK.
In addition, we are investing in the continued refurbishment of our existing estate. In October we reopened our oldest track in Eastleigh, after a £1.9 million refurbishment. We have similar plans for our sites in Liverpool and Warrington, as well as other significant investment programmes to electrify and rebrand sites in Reading, Crawley, Mitcham.
As reported previously, in August 2021 we experienced a fire at our track in Preston. Thankfully there was no injury to customers or staff. We were fully insured, and with the support of the whole team were finally able to reopen the track in May 2023. The new site showcases the very latest evolution of TeamSport, and we are delighted to see such a strong trading performance.
The business has always been passionate about promoting diversity and inclusion with both our customers, and our staff. In July 2023, post year end, in conjunction with F1 Academy and Motorsport UK we launched F1 Academy Discover Your Drive. This is an amazing initiative that sees us partner with Formula 1 to support the aim of getting the first female onto the F1 Grid. Initially the programme was piloted at six TeamSport tracks, with plans to expand to include every TeamSport track in the UK next year.
ESG
This remains a key pillar of our strategy, as it has for many years. By the end of 2023 we expect over half our sites to be fully electric, compared to just five tracks pre-pandemic. We continue to focus on reducing our energy consumption, and our impact on the environment. For the last two years we have been carbon neutral, but we recognise more needs to be done. In the next few months we will issue our first Net Zero glidepath, with a challenging plan to achieve Net Zero by 2030.
As part of our approach to ESG, diversity and inclusion has always been a priority. Our Gender Pay Gap has always been a key area of focus, to ensure that we treat our staff fairly, and ensure that we have the right balance across our business, and this remains a key focus.
We also recognise the strong talent in our business, and consequently we are setting ourselves ambitious targets to ensure wherever possible management positions are filled through internal promotion. Training and retention of staff is key to our continuing performance improvement.
Outlook
The strong trading that we saw throughout the last financial year has continued into the first quarter of our current financial year. We are in line with our initial expectations, despite the headwinds that are hitting both businesses and consumers alike across Europe.
Key performance indicators
The company uses several indicators to monitor and improve development, performance, and the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments. The Directors do not consider the inclusion of an analysis using performance indicators to be necessary to assist users of the financial statements in their understanding of the financial performance or position of the company as the key indicator is earnings before interest, tax, amortisation, and depreciation, which is shown in the financial statements. In addition, we constantly focus on short and medium term cash.
Go Karting for Fun Limited
Strategic Report for the Year Ended 30 June 2023
Principal risks and uncertainties
The management of the company and the execution of the company's strategy are subject to several risks. The company uses several indicators to monitor and improve the development, performance, and position of the business. Indicators are viewed and altered to meet changes in the internal and external environments.
Falling consumer confidence and rising interest rates present a volatile environment, however, we continually assess our pricing and offering at each site individually to ensure that we offer an almost unrivalled value for money experience in all our locations.
Financial instruments
The company uses financial instruments as part of its financial risk management. Although not considered a major risk, the nature of its financial instruments means that they are subject to normal trading risk and liquidity risks from the covenants in operation over the outstanding debt.
Going concern
In accordance with the Financial Reporting Council's Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009' the Directors of all companies are now required to provide disclosures regarding the going concern basis of accounting.
We produce detailed short term cash flows to monitor our cash spend, ensuring that we maintain appropriate levels of cash. We also monitor our performance daily, ensuring that on a monthly basis we consider the validity of current forecasts. Where necessary we will redeploy capital to ensure the security of our business.
The Directors believe that the Company has sufficient financial resources available to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.
Approved by the
Director
Go Karting for Fun Limited
Directors' Report for the Year Ended 30 June 2023
The directors present their report and the financial statements for the year ended 30 June 2023.
Directors of the company
The directors who held office during the year were as follows:
Employment of disabled persons
The company's policy is to consider the recruitment of disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, where possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.
The company's selection, training, development and promotion policies ensure equal opportunities for all colleagues regardless of factors such as gender, marital status, race, age, sexual preference and orientation, colour, creed, ethnic origin, religion or belief, disability or trade union affiliation. All of our decisions are based on merit.
S172 statement
The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The Group has considered the long-term strategy of the business in the strategic report and consider that this strategy will continue to deliver long term success to the business and it’s stakeholders.
The Company is committed to maintaining an excellent reputation and strives to achieve high standards. We are highly selective about which suppliers are used to deliver best value while maintaining an awareness of the environmental impact of the work that they do and strive to reduce their carbon footprint.
The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the company are considered to be the employees, suppliers and customers.
In ensuring that all our stakeholders are considered as part of every decision process we believe we act fairly between all members of the Company.
Disclosure of information to the auditors
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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Go Karting for Fun Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, 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 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 has 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.
Go Karting for Fun Limited
Independent Auditor's Report to the Members of Go Karting for Fun Limited
Opinion
We have audited the financial statements of Go Karting for Fun Limited (the 'company') for the year ended 30 June 2023, which comprise the Profit and Loss Account, 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 30 June 2023 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 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s 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 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 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.
Go Karting for Fun Limited
Independent Auditor's Report to the Members of Go Karting for Fun Limited
Opinion on other matters 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 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 and the Directors' Report.
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 6, 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 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 auditor’s 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 financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Go Karting for Fun Limited
Independent Auditor's Report to the Members of Go Karting for Fun Limited
Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISA's (UK).
In identifying and assessing risks of material misstatement in respect of fraud, including irregularities and non-compliance with laws and regulations, our procedures included the following:
• |
We obtained an understanding of the legal and regulatory frameworks applicable to the company financial statements or that had a fundamental effect on the company's operations. We determined that the most significant laws and regulations included UK GAAP, UK Companies Act 2006 and taxation laws. |
• |
We understood how the company is complying with those legal and regulatory frameworks by making inquiries of management, those responsible for legal and compliance procedures. |
• |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. |
Audit procedures performed by the engagement team included: |
|
• |
Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; |
• |
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process. Detailed analysis of journals posted through the accounting system during the year to 30 June 2023 has been undertaken; |
• |
Understanding the controls in place to prevent and detect fraud. Reliance was not placed on controls for the entirety of the audit, instead taking a substantive testing approach, however controls were in place to prevent fraud, and they appeared to be working effectively; |
• |
Challenging assumptions and judgements made by management in its significant accounting estimates. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 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 an auditor’s 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.
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Go Karting for Fun Limited
Profit and Loss Account for the Year Ended 30 June 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Other operating income |
163,175 |
240,474 |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit before amortisation, depreciation and exceptional items |
|
|
|
Amortisation expense |
(417,014) |
(408,276) |
|
Depreciation and impairment expense |
(4,486,881) |
(5,001,341) |
|
Administrative expenses - exceptional |
(41,481) |
(85,438) |
|
Other operating income - exceptional |
1,348,300 |
88,573 |
|
Operating profit |
8,437,177 |
15,827,070 |
|
Other interest receivable and similar income |
- |
|
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
Go Karting for Fun Limited
(Registration number: 05030696)
Balance Sheet as at 30 June 2023
Note |
2023 |
2022 |
|
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 assets |
|
|
|
Total assets less current liabilities |
|
|
|
Space |
|||
Creditors: Amounts falling due after more than one year |
|
|
|
Provisions for liabilities |
|
|
|
|
|
||
Capital and reserves |
|||
Called up share capital |
|
|
|
Other reserves |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
|
Total capital, reserves and long term liabilities |
24,588,199 |
19,477,988 |
Approved and authorised by the
Director
Go Karting for Fun Limited
Statement of Changes in Equity for the Year Ended 30 June 2023
Share capital |
Capital contribution reserve |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Capital contribution from parent undertaking |
- |
|
- |
|
Transfers |
- |
(799,308) |
799,308 |
- |
At 30 June 2023 |
|
|
|
|
Share capital |
Capital contribution reserve |
Profit and loss account |
Total |
|
At 1 July 2021 |
|
|
( |
( |
Profit for the year |
- |
- |
|
|
Capital contribution from parent undertaking |
- |
|
- |
|
Transfers |
- |
(1,147,897) |
1,147,897 |
- |
At 30 June 2022 |
|
|
|
|
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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 United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
As a qualifying entity, the Company has taken advantage of the following disclosure exemptions from FRS 102:
- the requirements to prepare a cash flow statement; and
- the requirements in relation to financial instruments of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26 (in relation to those cross-referenced paragraphs from which a disclosure exemption is available), 12.27, 12.29(a), 12.29(b), and 12.29A, where equivalent disclosure is given in consolidated financial statements..
Name of parent of group
These financial statements are consolidated in the financial statements of Luigi Topco Limited.
The financial statements of Luigi Topco Limited may be obtained from Companies house.
Going concern
As noted in the Directors Report, after reviewing the group's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Judgements
|
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current 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 taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible assets
Tangible assets is 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 charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold property |
Over the life of the lease or 10 years |
Plant and machinery |
Over 3 or 6 years |
Motor vehicles |
Over 3 or 4 years |
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.
Development costs are recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
Straight line over 10 years |
Software development |
Straight line over 3 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.
Trade 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. All debtors are repayable within one year and are hence included at the undiscounted amount of cash expected to be received. 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 estimated selling price less costs to complete and sell.
Trade 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 using the effective interest method.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Financial instruments
Classification
Recognition and measurement
Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Impairment
Non-financial assets:
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Financial assets:
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Rendering of services |
|
|
Other revenue |
|
|
Management charges |
|
|
|
|
Other revenue is derived from expired liabilities, insurance receipts and other sales.
The company's revenue derives entirely from sales in the United Kingdom.
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2023 |
2022 |
|
Other operating income (direct) |
163,175 |
240,474 |
The other operating income in the current year relates to Fast Forward grant funding while in the prior year it relates to primarily Kickstart and Fast Forward grant funding.
Operating profit |
Arrived at after charging/(crediting):
2023 |
2022 |
|
Depreciation and impairment expense |
|
|
Amortisation expense |
|
|
Foreign exchange gains |
( |
- |
Operating lease expense - property |
|
|
Operating lease expense - other |
100,013 |
- |
Exceptional gain on replacement of tangible fixed assets |
(1,348,300) |
- |
Exceptional items |
2023 |
2022 |
|
Exceptional administrative expenses |
41,481 |
85,438 |
Exceptional income |
(1,348,300) |
(88,573) |
(1,306,819) |
(3,135) |
Exceptional administrative expenses in the current year relate to predominantly to recruitment costs and small non-recurring costs while the prior year costs relate predominantly to preliminary costs incurred in relation to new sites that were subsequently aborted as well as costs related to legal claims and historic business rates costs.
Exceptional income in the current year relates to the exceptional gain arising directly as a result of the replacement of tangible fixed assets damaged or destroyed by the fire which broke out at the Company's Preston track on 15 August 2021. The prior year exceptional income relates to rental receipts relating to a previous year which the directors considered exceptional as the revenue did not relate to the prior year but rather to a preceding financial period.
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Interest payable and similar expenses |
2023 |
2022 |
|
Interest expense on other finance liabilities |
|
|
The above interest expense relates to the notional interest calculated on the unwinding of the discount applied to the long term loan due from group undertakings as described in note 16. This has no cash impact to the company.
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Operations |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
804,978 |
728,290 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
All other non-audit services |
|
|
Taxation |
Tax charged in the profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
- |
|
UK corporation tax adjustment to prior periods |
|
- |
Total current income tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
23,685 |
(1,158,004) |
Total deferred taxation |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of revenues exempt from taxation |
( |
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
UK deferred tax expense relating to changes in tax rates or laws |
|
- |
Decrease from effect of tax incentives |
( |
- |
Deferred tax expense/(credit) from unrecognised temporary difference from a prior period |
|
( |
Increase in UK and foreign current tax from adjustment for prior periods |
|
- |
Tax increase from effect of capital allowances and depreciation |
|
|
Tax decrease arising from group relief |
( |
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
|
Total tax charge |
|
|
A UK corporation tax rate of 25% became effective 1 April 2023. The increase in the tax rate from 19% to 25% will result in higher annual tax charges in future periods.
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Deferred tax
Deferred tax assets and liabilities
2023 |
Liability |
Difference between accumulated depreciation and amortisation and capital allowances |
|
Other short term timing differences |
( |
|
2022 |
Liability |
Difference between accumulated depreciation and amortisation and capital allowances |
|
Other short term timing differences |
( |
|
Intangible assets |
Goodwill |
Software development costs |
Total |
|
Cost |
|||
At 1 July 2022 |
|
|
|
Additions |
- |
|
|
At 30 June 2023 |
|
|
|
Amortisation |
|||
At 1 July 2022 |
|
|
|
Amortisation charge |
|
|
|
At 30 June 2023 |
|
|
|
Carrying amount |
|||
At 30 June 2023 |
|
|
|
At 30 June 2022 |
|
|
|
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost |
||||
At 1 July 2022 |
|
|
|
|
Additions |
|
|
- |
|
Disposals |
- |
( |
- |
( |
At 30 June 2023 |
|
|
|
|
Depreciation |
||||
At 1 July 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
At 30 June 2023 |
|
|
|
|
Carrying amount |
||||
At 30 June 2023 |
|
|
|
|
At 30 June 2022 |
|
|
|
|
Stocks |
2023 |
2022 |
|
Stocks |
|
|
Debtors |
2023 |
2022 |
|
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Creditors |
2023 |
2022 |
|
Due within one year |
||
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Social security and other taxes |
|
|
Outstanding defined contribution pension costs |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
Corporation tax liability |
- |
470,191 |
|
|
|
Due after one year |
||
Other creditors |
|
|
Amounts owed to group undertakings |
5,036,224 |
7,993,081 |
5,312,278 |
8,269,135 |
The amounts due to group undertakings which are due after one year and have a net present value of £5,036,224 (2022 - £7,993,081) have been discounted at 10% which is based on the cost of capital of the wider group. The balance requires 12 months notice before settlement and has no other fixed repayment terms.
Other creditors due after more than one year relates to the straight-lining of leases with stepped lease costs over the term of the respective lease periods.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
1,000 |
|
1,000 |
Share rights
The shares have attached to them full voting, dividend and capital distribution rights (including on winding up). They do not confer any right of redemption. |
Go Karting for Fun Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Commitments |
Capital commitments
The total amount contracted for but not provided in the financial statements was £
Contingent liabilities |
The company is party to a cross guarantee arrangement with other group companies totalling £88,974,492 (2022 - £82,596,301).
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is