Company registration number 07178427 (England and Wales)
SEATGEEK ENTERTAINMENT LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SEATGEEK ENTERTAINMENT LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
SEATGEEK ENTERTAINMENT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
4
14,374
793,655
Cash at bank and in hand
202,204
14,374
995,859
Creditors: amounts falling due within one year
5
(147,847)
(534,078)
Net current (liabilities)/assets
(133,473)
461,781
Capital and reserves
Called up share capital
6
10
10
Profit and loss reserves
(133,483)
461,771
Total equity
(133,473)
461,781
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 03 July 2024 and are signed on its behalf by:
Mr J B Tacy
Director
Company Registration No. 07178427
SEATGEEK ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
SeatGeek Entertainment Limited is a private company limited by shares incorporated in England and Wales. The registered office is Jactin House, 24 Hood Street, Ancoats, Manchester, United Kingdom, M4 6WX.
1.1
Accounting convention
These financial statements have been prepared in accordance with United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice). The standard applied is FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland’" (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention on a basis other than that of a going concern. During the prior year, the directors of the company made the decision to merge the trade of the company with its fellow UK Subsidiary, SeatGeek Sport Limited. The process to hive across the trade and assets took place during the year, and the company ceased trading at that point. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Turnover from contracts for the provision of software, support and hosting services is recognised in line with the provision of those services. Deferred income is recognised where services are billed in advance and recognised within other creditors until the services has been provided, at which point it is recognised as revenue.
Turnover from Per Ticket Fees is recognised when the ticketing sales services has been provided. Each ticket item sold is multiplied by the relevant Per Ticket Fee detailed in the contract to calculate the fees due, which is then invoiced on a monthly basis.
Turnover for the provision of consultancy and implementation fees is recognised when the work has been completed.
1.3
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.4
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 liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
SEATGEEK ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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.
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.
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 recognised 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 recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.5
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SEATGEEK ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.10
An appropriate transfer pricing method is required in order to show related party transactions at arm's length transaction values. A market-based operating margin rate is applied to revenue income from and royalty payments to, group entities to determine a transfer pricing adjustment. The rate is based on the Comparable Profits Method.
SEATGEEK ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
2
Exceptional items
2023
2022
£
£
Income
Write back of intercompany loans¹
(25,368)
(720,737)
Intercompany loans written off²
1,130,623
1,669,740
1,105,255
949,003
¹During the year SeatGeek Entertainment Limited undertook a review of intercompany loans between group companies. As a result, it was decided that all loans payable and receivable that did not have the intention of being settled would be either written back/off or discharged.
²In the prior year it was decided that the SeatGeek Entertainment Limited would begin the process of dissolution. As a result, the balance of intercompany receivables which did not have the intention of being settled were written off as an exceptional item above. As this process has progressed in the current year, it was again deemed appropriate to write off all intercompany balances due from SeatGeek Sport Limited. The balance also includes amounts written back by ultimate parent company Seatgeek Inc. of £13,912.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
16
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
328,008
Corporation tax recoverable
148
Amounts owed by group undertakings
448,712
Other debtors
14,226
16,935
14,374
793,655
SEATGEEK ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
11,588
Amounts owed to group undertakings
672
Corporation tax
147,690
28,372
Other taxation and social security
298,127
Other creditors
157
195,319
147,847
534,078
6
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
10
10
10
10
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Emphasis of matter - Financial statements prepared on a basis other than on a going concern basis
We draw attention to Note 1.1 to the financial statements, which explains that the directors of the company have made the decision to merge the trade of the company with its fellow UK Subsidiary, SeatGeek Sport Limited and to hive across the trade and assets. Given this process has been completed during the financial year, the directors do not consider it approproate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 1.1. Our opinion is not modified in respect of this matter.
Senior Statutory Auditor:
Joanne Regan FCA
Statutory Auditor:
Azets
8
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales of services and royalties
2023
2022
£
£
Other related parties
549,360
2,093,902
SEATGEEK ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Related party transactions
(Continued)
- 7 -
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Other related parties
-
448,712
9
Parent company
These financial statements are consolidated into the group accounts of SeatGeek Inc. Registered office: 902 Broadway - Floor 10, New York, NY 10010, United States.