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Registered number: 05287160










CURVEBALL LEISURE LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

 
CURVEBALL LEISURE LTD
 
 
COMPANY INFORMATION


Directors
A Naunton 
S Harries 




Registered number
05287160



Registered office
Unit C Redbrick Court
Ferryboat Close

Swansea

SA6 8QN




Auditors
MHA

Chartered Accountants and Statutory Auditor

MHA House, Charter Court

Phoenix Way, Swansea Enterprise Park

Swansea

SA7 9FS





 
CURVEBALL LEISURE LTD
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditors' report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13 - 14
Analysis of net debt
15
Notes to the financial statements
16 - 30


 
CURVEBALL LEISURE LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

 
The directors present their strategic report for the year ended 30 June 2023.

Business review
 
Established in 2004, Curveball Leisure Ltd has grown to become Europe's largest independent video game distributor. The Company also operates a highly successful award winning online retail site called The Game Collection.
The Directors focus and the Company’s strategy is to pursue sustainable growth by offering a premium service at competitive prices. To achieve this, the Company aims to offer and support its customers with a comprehensive range of new releases, back catalogue and pre-owned games for all current formats, together with a range of game related merchandise. Customer service is a priority and the Company is proud of its to continue to hold a 5 star average rating on Trustpilot.
During the year Curveball Leisure Ltd have continued to invest in talent and recognizes the importance of its team, as the company continues to grow. The Company recruits from within the local community, whenever possible, and tries to build on local links to promote its local community. This is evident with the continued investment in its warehousing facility.
For the year ended 30 June 2023 revenues increased by 86% as a result of a number of factors, including, expanding its wholesale team,  market penetration opportunities  increasing market share and reducing competition, whilst gross margin was maintained at  7.2% .
The Directors believe that the Company is well placed to take advantage of market opportunities and provide customers with the best choice of games and a first class service  and are confident that  the Company will continue to trade profitably into the future.

Key performance indicators (KPIs)
 
2023
2022
      £'000
      £'000
Revenue

97,777

52,708
 
Gross Profit

7,042

4,186
 
Gross Profit %

7.2%

7.9%
 
Operating Profit

2,274

1,469
 
EBITDA


2,325

1,509
 

Page 1

 
CURVEBALL LEISURE LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

The Statement of Financial Position remains strong with Cash at bank, net current assets and net assets as follows.

2023
2022
      £'000
      £'000


Cash at bank

209

126
 
Net current assets

5,378

4,082
 
Net assets

5,418

4,158
 

Net assets have increased by £1,260,340 (30%) primarily due to a strategic decision to acquire product, increase stockholding by £3.6m, to be able to support customer demand in a timely and efficient manner.
Whilst not formally required to report at this stage, Directors take their responsibilities in respect of the environment and the Company’s carbon footprint seriously and are developing an overarching plan to achieve Net Zero Carbon status (through definitive actions to reduce usage as well as offset) in an appropriate timescale.

Page 2

 
CURVEBALL LEISURE LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Principal risks and uncertainties

The nature of the business environment in which the company operates in, is inherently risky. Whilst it is not possible to eliminate all such risks and uncertainties, the company has an established risk management and internal control system in place to manage them.
The directors and management meet regularly to identify the risks that are considered most likely to have an impact on the business and its strategic priorities. If emerging risks are identified, these are incorporated immediately into the risk management process.
The following sets out the principal risks faced by the company and how they are mitigated:
Risks     Potential impact     Mitigation
Technological   Although the current generation  The business is well placed for changes       technology is forecast to continue in the market by increasing its market        in the short to medium term, the   share in digital delivery as well as
     games markets is cyclical and will  exploring new generation games.
     also see an increase towards digital The business continues to be strong in
     delivery.     the "retro" and old generation games              market
Retail     In recent years, the industry has seen The company continues to grow its 
     many traditional high street retailers  online retail presence. The business aim
     struggle in changing customer   of offering a premium service level at 
     purchasing patterns.   market sustainable prices are evident in 
           customer feedback, continuing growth
           and market share.
People    Loss of key staff and inability to recruit The business looks to develop staff and
     people with the right experience.  their working environment by continual
           enagagement. All members are 
           encouraged to challenge convention.
           Competitive remuneration and ensuring
           it is a "great place to work" are the ethos
           of the business.
Financial    A significant change in the financing   The business maintains good 
     facilities would affect the ability of the relationships with its key suppliers and
     business to achieve its growth  credit insurers, bank and financial 
     objectives.     providers. The company maintain 
           sufficient cash reserves to meet any 
           unexpected issues or to take advantage 
           of favourable opportunities.    


This report was approved by the board on 28 March 2024 and signed on its behalf.



................................................
A Naunton
Director

Page 3

 
CURVEBALL LEISURE LTD
 
 
 
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' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company in the year under review was that of retail and distribution of computer video games, hardware and accessories.

Dividends

Ordinary dividends were paid amounting to £120,000 (2022 - £140,000). The directors do not recommend payment of a further dividend.

Future developments

The strategy and future developments in the business are set out in the Strategic Report.

Directors

The directors who served during the year were:

A Naunton 
S Harries 

Page 4

 
CURVEBALL LEISURE LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Disclosure in the Strategic Report

Included in the company's strategic report is a review of the business and a description of the principal risks and uncertainties facing the company. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Following a rebranding exercise on 15 May 2023, the trading name of the company's independent auditor changed from MHA MacIntyre Hudson to MHA. 

This report was approved by the board on 28 March 2024 and signed on its behalf.
 





................................................
A Naunton
Director

Page 5

 
CURVEBALL LEISURE LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CURVEBALL LEISURE LTD
 

Opinion


We have audited the financial statements of Curveball Leisure LTD (the 'Company') for the year ended 30 June 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the 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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
CURVEBALL LEISURE LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CURVEBALL LEISURE LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, 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 Directors' responsibilities statement set out on page 4, 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.


Page 7

 
CURVEBALL LEISURE LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CURVEBALL LEISURE LTD (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud.
- Obtained and reviewed the findings of reports produced by specialists on the compliance with key laws and regulations.
- Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred.
- Enquiry of entity staff in compliance functions and external advisors to identify any instances of non-compliance with laws and regulations. 
- Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
 


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 Auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.


Page 8

 
CURVEBALL LEISURE LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CURVEBALL LEISURE LTD (CONTINUED)





Rachel Doyle ACA FCCA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Statutory Auditors
Swansea, United Kingdom

28 March 2024


MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313). 

Page 9

 
CURVEBALL LEISURE LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

2023
2022
Note
£
£

  

Turnover
 3 
97,777,264
52,708,010

Cost of sales
  
(90,735,029)
(48,522,394)

Gross profit
  
7,042,235
4,185,616

Administrative expenses
  
(4,833,095)
(2,831,828)

Other operating income
  
65,120
115,143

Operating profit
 4 
2,274,260
1,468,931

Interest receivable and similar income
  
5,561
10,232

Interest payable and similar expenses
  
(470,651)
(182,699)

Profit before tax
  
1,809,170
1,296,464

Tax on profit
 8 
(428,830)
(240,453)

Profit for the financial year
  
1,380,340
1,056,011

Other comprehensive income for the year
  

Total comprehensive income for the year
  
1,380,340
1,056,011

The notes on pages 16 to 30 form part of these financial statements.

Page 10

 
CURVEBALL LEISURE LTD
REGISTERED NUMBER: 05287160

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 10 
18,882
47,309

Tangible assets
 11 
69,677
86,908

Investments
 12 
1
1

  
88,560
134,218

Current assets
  

Stocks
 13 
12,153,739
8,531,902

Debtors
 14 
8,862,914
8,578,583

Cash at bank and in hand
  
209,233
126,285

  
21,225,886
17,236,770

Creditors: amounts falling due within one year
 15 
(15,847,938)
(13,155,183)

Net current assets
  
 
 
5,377,948
 
 
4,081,587

Total assets less current liabilities
  
5,466,508
4,215,805

Creditors: amounts falling due after more than one year
 16 
(26,382)
(30,648)

Provisions for liabilities
  

Deferred tax
 20 
(22,139)
(27,510)

Net assets
  
 
 
5,417,987
 
 
4,157,647


Capital and reserves
  

Called up share capital 
 21 
840
840

Profit and loss account
 22 
5,417,147
4,156,807

  
5,417,987
4,157,647


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 March 2024.




................................................
A Naunton
Director

The notes on pages 16 to 30 form part of these financial statements.

Page 11

 
CURVEBALL LEISURE LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 July 2021
840
3,240,796
3,241,636


Comprehensive income for the year

Profit for the year
-
1,056,011
1,056,011

Dividends: Equity capital
-
(140,000)
(140,000)



At 1 July 2022
840
4,156,807
4,157,647


Comprehensive income for the year

Profit for the year
-
1,380,340
1,380,340

Dividends: Equity capital
-
(120,000)
(120,000)


At 30 June 2023
840
5,417,147
5,417,987


The notes on pages 16 to 30 form part of these financial statements.

Page 12

 
CURVEBALL LEISURE LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,380,340
1,056,011

Adjustments for:

Amortisation of intangible assets
28,427
15,830

Depreciation of tangible assets
17,232
14,505

Interest paid
(468,521)
(180,569)

Taxation charge
428,830
240,454

(Increase) in stocks
(3,621,838)
(1,312,765)

(Increase) in debtors
(204,231)
(3,050,692)

Increase in creditors
2,942,623
1,337,878

Finance Costs
470,651
182,699

Finance Income
(5,561)
(10,232)

Tax Paid
(248,563)
(294,602)

Hire Purchase Interest
(2,130)
(2,130)

Net cash generated from operating activities

717,259
(2,003,613)


Cash flows from investing activities

Purchase of tangible fixed assets
-
(20,603)

Interest Received
5,561
10,232

Net cash from investing activities

5,561
(10,371)

Cash flows from financing activities

Dividends paid
(120,000)
(140,000)

Capital Repayments in the Year
(4,266)
(4,266)

Amounts introduced by Directors
1,101,245
141,200

Amounts withdrawn by Directors
(1,181,354)
(132,541)

Loan repayments in year
(54,486)
(111,778)

Net cash used in financing activities
(258,861)
(247,385)

Net increase/(decrease) in cash and cash equivalents
463,959
(2,261,369)

Cashat bank and in hand
126,285
175,563

Bank overdrafts
(4,027,059)
(1,814,968)

Cash and cash equivalents at the end of year
(3,436,815)
(3,900,774)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
209,233
126,285
Page 13

 
CURVEBALL LEISURE LTD
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023


2023
2022

£
£


Bank overdrafts
(3,646,048)
(4,027,059)

(3,436,815)
(3,900,774)


The notes on pages 16 to 30 form part of these financial statements.

Page 14

 
CURVEBALL LEISURE LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2023




At 1 July 2022
Cash flows
At 30 June 2023
£

£

£

Cash at bank and in hand

126,285

82,948

209,233

Bank overdrafts

(4,027,059)

381,011

(3,646,048)

Debt due within 1 year

(248,891)

54,486

(194,405)

Finance leases

(34,914)

4,266

(30,648)


(4,184,579)
522,711
(3,661,868)

The notes on pages 16 to 30 form part of these financial statements.

Page 15

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1.


General information

Curveball Leisure Ltd is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found below:
Company's registered number:  05287160
Registered office address:  Unit C Redbrick Court,
      Ferryboat Close,
      Swansea,
      SA6 8QN
The presentation currency of the financial statements is the Pound Sterling (£).
Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

 
2.2

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the statement of the financial position, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.
The company meets its day to day working capital requirements from its cash reserves, overdraft and invoice discounting facilities. At the date of signing the report sales to all key markets are significantly above forecast levels. At the date of signing the financial statements the directors have also considered the impact of recent global events and emerging economic pressures, including the impact of cost of living increases of its customers. 
The directors have prepared detailed forecasts and projections and analysed the company cash flow requirements. Based on this assessment the directors have concluded that they have a reasonable expectation that with the continued support of its bankers in the form of facility levels which it has historically been provided with, in the scenarios reviewed the company will be able to continue to operate within those facilities. 
.
At the time of approving the financial statements, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing financial statements.

Page 16

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

  
2.3

Singificant judgments and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors which are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only effects that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the critical judgements that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Impairment of assets
Assets are assessed for indicators of impairment at each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the income statement.
Stock provisions
Stock holdings are assessed for indicators of obsolescence at each reporting date. If there is objective evidence of obsolescence, a provision is recognised in the income statement.
Provisions and contingencies
Provisions are recognised when the company has a present obligation as a result of a past event and a reliable estimate can be made of a probable adverse outcome. Otherwise, material contingent liabilities are disclosed unless a transfer of economic benefits is considered remote. Contingent assets are only disclosed if an inflow of economic benefits is probable.

  
2.4

Turnover and Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that the future economic benefits will flow to the entity and when specific criteria have been met.
The company sells video games, hardware and accessories and revenue is recognised when the goods are dispatched to the customer and no other significant obligation remains unfulfilled that may affect the customer's acceptance of the goods.

Page 17

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

  
2.5

Intangible assets other than goodwill

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development costs - 25% on cost

  
2.6

Tangible fixed asssets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 15% on cost
Fixtures and fittings - 15% on cost
Motor vehicles  - 12.5% to 25% on cost
Computer equipment - 15% on cost
Tangible fixed assets are carried at cost less depreciation and impairment. Assets acquired but not brought into use at the balance sheet date are not depreciated.
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

  
2.7

Stock

Stocks are stated at lower of cost and estimated price less costs to complete and sell. Cost comprises direct materials and, where applicable, those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit and loss. Reversals of impairment losses are also recognised in profit and loss.

  
2.8

Financial instruments

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price 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.
Basic financial liabilities, including trade and other creditors and bank loans, are initially recognised at
transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Page 18

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

  
2.9

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date.

  
2.10

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

  
2.11

Research and development

Research expenditure is written off in the year in which it is incurred. identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

  
2.12

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

  
2.13

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.

Page 19

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

  
2.14

Hire purchase and leasing commitments

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit and loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases are consumed.

  
2.15

Invoice discounted debt

An invoice discounting arrangement, with recourse, is in place covering certain debts. Invoice discounted debts are disclosed gross within debtors. Advances from the factoring company are disclosed gross within creditors.

 
2.16

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 20

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

3.


Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.


An analysis of turnover by class of business is as follows:


2023
2022
£
£

Games and software
97,777,264
52,708,010

97,777,264
52,708,010


In the opinion of the directors, the disclosure of segmental information relating to geographical original of results would be seriously prejudicial to the interest of the company and has therefore not been provided in these accounts.


4.


Operating profit

The operating profit is stated after charging/(crediting):

2023
2022
£
£

Depreciation - owned assets
17,232
14,505

Development costs amortisation
28,427
15,830

Auditors' remuneration
13,230
13,000

Exchange gains
(1,323,867)
(289,018)

Page 21

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

5.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,355,268
1,134,942

Social security costs
210,732
103,351

Cost of defined contribution scheme
111,142
99,874

2,677,142
1,338,167


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


        2023
        2022
            No.
            No.







Selling and administration
21
16



Distribution
16
12



Directors
2
2

39
30


6.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
92,289
80,735

Company contributions to defined contribution pension schemes
65,496
57,996

157,785
138,731



7.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
216,410
129,161

Other loan interest payable
26,377
8,625

Finance leases and hire purchase contracts
2,130
2,130

Other interest payable
225,734
42,783

470,651
182,699

Page 22

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

8.


Taxation


2023
2022
£
£

Corporation tax and Deferred tax


Current tax on profits for the year and deferred tax
428,830
238,697

Adjustments in respect of previous periods
-
1,756


428,830
240,453


Total of current and deferred tax
428,830
240,453



Tax on profit
428,830
240,453

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,809,170
1,296,464


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20.5% (2022 - 19%)
431,014
246,328

Effects of:


Expenses not deductible for tax purposes
12,972
865

Capital allowances for year in excess of depreciation
9,358
675

Adjustments to tax charge in respect of prior periods
-
1,756

Research and development tax credit
(27,216)
(9,077)

Deferred tax
(5,693)
160

Other
8,395
(254)

Total tax charge for the year
428,830
240,453

Page 23

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

9.


Dividends

2023
2022
£
£

Ordinary


Final
120,000
140,000


10.


Intangible assets




Development expenditure

£



Cost


At 1 July 2022
79,150



At 30 June 2023

79,150



Amortisation


At 1 July 2022
31,841


Charge for the year on owned assets
28,427



At 30 June 2023

60,268



Net book value



At 30 June 2023
18,882



At 30 June 2022
47,309



Page 24

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

11.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 July 2022
54,675
49,335
9,441
30,502
143,953



At 30 June 2023

54,675
49,335
9,441
30,502
143,953



Depreciation


At 1 July 2022
18,093
14,329
5,781
18,842
57,045


Charge for the year on owned assets
6,636
6,144
1,416
3,036
17,232



At 30 June 2023

24,729
20,473
7,197
21,878
74,277



Net book value



At 30 June 2023
29,946
28,862
2,244
8,624
69,676



At 30 June 2022
36,582
35,006
3,660
11,660
86,908


12.


Fixed asset investments





Unlisted investments

£



Cost or valuation


At 1 July 2022
1



At 30 June 2023
1




Page 25

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Cost or valuation of Unlisted Investments at 30 June 2023 is represented by:

2023
2022
        £
        £
Investment in shares (Cost)

156,618

156,618

Impairment

(156,617)

(156,617)


The company owns less than 5% of the shares in an unquoted trading entity.
Market value of listed investments at 30 June 2023 - £1


13.


Stocks

2023
2022
£
£

Finished goods and foods for resale
12,153,739
8,531,902

12,153,739
8,531,902


A Provision of £743,190 (2022 - £639,992) was made against impairment of stocks due to slow-moving and obsolete stocks.


14.


Debtors

2023
2022
£
£



Trade debtors
4,754,300
4,788,240

Other debtors
1,439,202
1,847,725

Prepayments and accrued income
2,669,412
1,942,618

8,862,914
8,578,583




Page 26

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
3,646,048
4,027,059

Other loans
194,405
248,891

Trade creditors
5,358,153
5,834,949

Corporation tax
414,166
228,537

Other taxation and social security
51,954
106,045

Obligations under finance lease and hire purchase contracts
4,266
4,266

Other creditors
5,258,630
2,601,786

Accruals and deferred income
920,316
103,650

15,847,938
13,155,183


Included in other creditors is a balance of £4,399,267 (2022 - £2,043,189) in relation to an invoice discounting facility. This balance is secured by fixed and floating charges over the assets of the company.


16.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
26,382
30,648

26,382
30,648



17.

Loans

2023
2022
        £
        £
Amounts falling due within one year on demand:

Bank overdrafts

3,646,048

4,027,059
 
Other loans

194,405

248,891
 

3,840,453

4,275,950
 

Page 27

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

18.

Leasing agreements

Minimum lease payments fall due as follows:
            Hire purchase contracts

2023
2022
        £
        £
Net obligations repayable:

Within one year

4,266

4,266
 
Between one and five years

26,382

30,648
 

30,648

34,914
 

Operating Leases

2023
2022
        £
        £
Within one year

76,703

77,987
 
Between one and five years

130,500

167,203
 
In more than five years

440,000

480,000
 

647,203

725,190
 


19.

Secured debts

The following secured debts are included within creditors:

2023
2022
        £
        £

Hire purchase contracts

30,648

34,914
 
Invoice discounting facility

4,399,267

2,043,189
 

4,429,915

2,078,103
 

Hire purchase creditors are secured over the assets to which they relate.
The invoice discounting facility is secured by fixed and floating charges over the assets of the company.
Security has also been granted to HSBC UK Bank plc in respect of overdraft facilities provided to the company.





Page 28

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

20.


Deferred taxation




2023


£






At 1 July 2022
(27,510)


Charged to profit or loss
5,371



At 30 June 2023
(22,139)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(22,139)
(27,510)

(22,139)
(27,510)


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



720 (2022 - 720) Ordinary shares of £1.00 each
720
720
120 (2022 - 120) Ordinary A shares of £1.00 each
120
120

840

840



22.


Reserves








23.


Share-based payments

The company granted 160 share options on 20 May 2020 to 3 employees, including 80 shares to a director, at an exercise price £816 per share. These share options are still in issue as at 30 June 2023. Subsequent to the Statement of Financial Position date, 42 share options were granted on 13 November 2023 at an exercise price of £1,292 per share. These share options are exercisable to 30 March 2026.  

Page 29

 
CURVEBALL LEISURE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

24.


Pension commitments

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held in a separately administered fund.
The pension cost charge £111,142 (2022 - £99,874) represents the contributions payable by the company to the fund.
£5,214 (2022 - £3,298) contributions were outstanding at the statement of financial position date.


25.


Related party disclosures

Dividends totaling £120,000 were paid in the period in respect of shares held by the company's directors (2022 - £140,000). 
Included in other debtors are amounts owed to the company from the directors totaling £491,163 (2022 - £411,053). These amounts are unsecured, repayable on demand. Interest has been charged by the company in respect of the loan. 
Rental paid to The Premier SIPP (a pension for the benefit of the director, Mr A Naunton) during the period amounted to £40,000 (2022 - £40,000). Included in other debtors are amounts owed to the company from The Premier SIPP of £13,456 (2022 - £18,994).


26.


Controlling party

The controlling party is A Naunton.

 
Page 30