Benchmark Sport Holdings Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 06540547 (England and Wales)
Benchmark Sport Holdings Limited
Company Information
Directors
N Keller
G Clifford
Company number
06540547
Registered office
5th Floor
110 High Holborn
London
United Kingdom
WC1V 6JS
Auditor
Gilberts Chartered Accountants
Pendragon House
65 London Road
St Albans
Hertfordshire
AL1 1LJ
Benchmark Sport Holdings Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Group profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13 - 14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 39
Benchmark Sport Holdings Limited
Strategic Report
For the year ended 31 December 2023
Page 1

The directors present the strategic report for the year ended 31 December 2023.

Business Review

Benchmark Sport Holdings Limited ('BSH') is the holding company of a group of trading companies that operate in broadly social impact consultancy, premium client experience delivery, sponsorship and the live events sectors. The group is also referred to as Benchmark – Benchmark is a business that is united by sport, driven by purpose. Benchmark’s client roster ranges from sports federations, clubs, talent to global brands.

 

The group delivered an EBITDA of £1.22m (2022: £0.62m) and a operating profit of £0.80m (2022: £0.32m). The improvement in profit being driven by sales growth of £1.76m to £12.88m (2022: £11.11m) with a gross margin that was 49% (2022: 52%), where gross margin suffered marginally from the inflationary impact of event and race delivery costs. The directors are pleased with the continued upward trajectory of sales and profitability.

 

Benchmark had a strong 12 months of trade. Square Mile Sport Ltd relaunched the Square Mile relay programme for Bloomberg in 2022, post Covid, and in 2023 was operating 10 live event races globally with 13 scheduled for 2024. The Sports Industry Awards Ltd delivered the market leading Sports Industry Awards in April 2023, with around 1400 attendees, delivering premium networking opportunities for multiple UK brands, sponsors, and talent. The Think Beyond Services Ltd consultancy continued to expand its roster of blue-chip brands, sports clubs and federations with social impact and sustainability consulting services now firmly at the heart of the boardroom strategic decision-making process. As noted, Square Mile Services Ltd continued its strong ongoing relationship with Bloomberg in delivering live and virtual race experiences, and further investment has been directed into developing the virtual race offering into both an employee and client engagement tool. National Students Esports Ltd - the UK’s leading grass roots esports business in the UK - continued to grow its student membership base with around 17k registered students, and growing sponsorship with leading endemic e-sports and non-endemic brands.

 

In early 2024 Benchmark was delighted to secure the internationally recognised B-Corp Certification – a certification that evidences the business is meeting exceptional standards of verified sustainability performance, accountability, transparency in employee welfare and benefits, charitable giving, supply chain and procurement best practice whilst committed to ensuring that its business and people operate commercially.

Key Performance Indicators

Benchmark’s key performance indicators include revenue and EBITDA for the group and individual business units. The Board also monitors adjusted EBITDA (defined as earnings before interest, tax, depreciation, amortisation, impairment, and exceptional items), within the Think Beyond consultancy chargeable day rates, utilisation and revenue per head are deemed to be key performance indicators of the business.

 

Employee engagement, wellness, inclusion, and retention are taken seriously and monitored via our bi annual human fulfilment survey. The group believes that we score highly in these surveys and generally there has been an upward trajectory each quarter in score.

Outlook and Strategic Review

Through the continued evolution of the Benchmark offering, including emphasis on client management, brief delivery and innovation of events and experiences, Benchmark has created a unique proposition in sports for social impact, client experience and engagement markets.

 

Benchmarks focus will remain in building its social impact consulting business both in the UK and abroad, diversifying its client experience programme in Square Mile Sports into new concepts and clients, whilst continuing to own the UK Sports Industry for networking and events through its portfolio of market leading live events and products.

Benchmark Sport Holdings Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2
Section 172 Statement

The Directors set out their statement of compliance with s172 (1) of the Companies Act 2006 which should be read in conjunction with the rest of the annual report.

 

The Board ensures that decisions are always taken for the long term, and collectively aims to uphold the highest standards of conduct. Similarly, it acknowledges that the group's employees, suppliers, and customers are their most important assets, and the business can only grow and prosper over the long term if it understands, respects, and responds to their views and needs, as well as those of other stakeholders.

 

The Board has identified the following stakeholder groups with whom engagement is fundamental to the group's ongoing success:

 

Shareholders: The key issues of concern to shareholders are return on investment, business performance and sustainability. The business engages with its shareholders in various ways including ad-hoc conversations, meetings, the annual report, management accounts and regular announcements.

 

Employees: Benchmark’s people are central to our success, and we are committed to providing a working environment that promotes our employee's wellbeing whilst facilitating their performance. The key issues of concern to employees are fair compensation, health and safety, engagement & development, and diversity & inclusion. The group engages with this stakeholder group in various ways including regular surveys, health & safety programmes, training, diversity and inclusion training, recruitment practices, business updates and meetings.

 

Customers: The key issues of concern to our clients are operational delivery, brief delivery and innovation, range of product and service offering and impact on environment. Benchmark engages with this stakeholder group in various ways including client relationships meetings, client feedback and has achieved 89 in our latest Net Promoter Scores.

 

Suppliers: The key issues of concern with suppliers are responsible event sourcing and supply chain sustainability. Benchmark has a Procurement Code of Conduct to ensure suppliers operate with best practice in this area.

 

Government: The group is impacted by changes in the law and public policy. The key issues of concern in relation to the government are regulatory changes, climate and environmental related matters and support for businesses and workers. The business engages in various ways including meetings, email, web portals and applications to participate in government schemes.

 

Benchmark strives to maintain a reputation for the highest standards of business conduct.

Principal risks and uncertainties

Benchmark is a well-established group of businesses that prides itself on excellent client delivery and innovation to ensure repeat business and new client wins. Whilst the group focuses on achieving this through experienced in-house operational and creative delivery it is not always possible to predict the reaction from potential clients to pitches and proposals with absolute certainty.

 

As well as the micro-risks related to the company's ability to win business from clients and against competing brands, there are macroeconomic risks related to, for example, discretionary spend on consulting and sponsorship impacted by general economic conditions and confidence, which has become more apparent following the Covid pandemic, higher interest rates and the potential for a recession in future periods.

 

The group is reliant on invoicing a significant proportion of revenue in US dollars and therefore it remains exposed to exchange rate volatility between Sterling and the US dollar rate. Benchmark buys US dollar forward contracts (with no margin calls or deposits) which to date have been successful in mitigating exchange rate fluctuations to budgeted rates and managing risk.

Benchmark Sport Holdings Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 3

On behalf of the board

N Keller
Director
19 June 2024
Benchmark Sport Holdings Limited
Directors' Report
For the year ended 31 December 2023
Page 4

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of sport consultancy and event management.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

N Keller
G Clifford
Results and dividends

The consolidated statement of comprehensive income shows a profit before taxation for the period of £0.86m (2022: £0.52m).

 

On 31 December 2023, the group had net assets of £1.76m (2022: £1.74m).

 

On 7 April 2023 dividends were declared and paid in the period of £530,000 (2022: £nil).

Qualifying third party indemnity provisions

As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by Section 234 of Companies Act 2006. The indemnity was in force throughout the last financial period and is currently in force. The group also purchased and maintained throughout the financial period Directors' and Officers' liability insurance in respect of its directors.

Financial risk management

The group's operations expose it to a variety of risks that include credit risk, liquidity risk and interest rate risk. These risks are managed on a group basis and the directors contribute to the management of these risks as follows:

 

The key risk is macroeconomic geopolitical uncertainty; the Covid pandemic and the war in Ukraine have had a global impact and therefore this generates some uncertainty for business and consumer confidence and spend.

Credit risk is reduced by having often long and established relationships with large brands and federations, before sales contracts are agreed a review will be performed of the financial performance of the client including statutory accounts and credit reports to verify credit worthiness. The group only invest cash deposits with reputable UK financial institutions, and by regularly reviewing the recoverability of monies owed by group companies and third parties and making provisions against such debtors if deemed necessary, whilst noting bad debt has historically been minimal across the group.

Liquidity and interest rate risks are managed by the directors' close monitoring of working capital requirements through preparation and review of budgets and short and long-term cash flow forecasts ensuring that there are sufficient funds to manage its operations. Bank facilities are managed in the UK on a group basis.

Treasury risks exist in the form of exposure to fluctuations in the value of the US dollar against Sterling, As previously noted this foreign exchange risk is managed through arrangements to purchase currency (US dollars) at agreed forward rates.

Benchmark Sport Holdings Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 5

Information security and GDPR Benchmark work with an outsourced Chief Privacy Officer and Chief Information Security Officer to ensure that all IT and data governance complies to latest standards, including policy documentation, cyber insurance, privacy notices, and data protection.

Auditor

Gilberts Chartered Accountants were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
N Keller
Director
19 June 2024
Benchmark Sport Holdings Limited
Independent Auditor's Report
To the Members of Benchmark Sport Holdings Limited
Page 6
Opinion

We have audited the financial statements of Benchmark Sport Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Group Profit And Loss Account, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Benchmark Sport Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Benchmark Sport Holdings Limited
Page 7

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

 

 

 

Benchmark Sport Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Benchmark Sport Holdings Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud

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. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the group. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed in our approach below:

 

We did not identify any audit matters relating to irregularities, including fraud.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.

Luke Parker ACA (Senior Statutory Auditor)
20 June 2024
For and on behalf of Gilberts Chartered Accountants (Statutory Auditor)
Pendragon House
65 London Road
St Albans
Hertfordshire
AL1 1LJ
Benchmark Sport Holdings Limited
Group Profit and Loss Account
For the year ended 31 December 2023
Page 9
2023
2022
as restated
Notes
£
£
Turnover
3
12,881,162
11,118,963
Cost of sales
(6,591,974)
(5,311,322)
Gross profit
6,289,188
5,807,641
Administrative expenses
(5,361,932)
(4,430,654)
Exceptional item
4
(125,000)
(1,060,630)
Operating profit
5
802,256
316,357
Interest receivable and similar income
9
113,634
242,005
Interest payable and similar expenses
10
(56,175)
(33,903)
Profit before taxation
859,715
524,459
Tax on profit
11
(311,227)
(156,815)
Profit for the financial year
548,488
367,644
Profit for the financial year is attributable to:
- Owners of the parent company
582,558
368,194
- Non-controlling interests
(34,070)
(550)
548,488
367,644
Benchmark Sport Holdings Limited
Group Statement of Comprehensive Income
For the year ended 31 December 2023
Page 10
2023
2022
as restated
£
£
Profit for the year
548,488
367,644
Other comprehensive income
-
-
Total comprehensive income for the year
548,488
367,644
Total comprehensive income for the year is attributable to:
- Owners of the parent company
582,558
368,194
- Non-controlling interests
(34,070)
(550)
548,488
367,644
Benchmark Sport Holdings Limited
Group Balance Sheet
As at 31 December 2023
Page 11
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
15
421,844
559,696
Other intangible assets
15
916,664
975,806
Total intangible assets
1,338,508
1,535,502
Tangible assets
14
108,278
70,363
Investments
16
50,000
50,050
1,496,786
1,655,915
Current assets
Debtors
19
4,288,307
2,666,799
Cash at bank and in hand
1,706,336
1,815,705
5,994,643
4,482,504
Creditors: amounts falling due within one year
20
(5,269,019)
(3,822,935)
Net current assets
725,624
659,569
Total assets less current liabilities
2,222,410
2,315,484
Creditors: amounts falling due after more than one year
22
(447,932)
(575,616)
Provisions for liabilities
Deferred tax liability
23
(16,122)
-
0
(16,122)
-
Net assets
1,758,356
1,739,868
Capital and reserves
Called up share capital
25
1,064
1,064
Share premium account
289,810
289,810
Other reserves
(759)
(759)
Profit and loss reserves
1,735,020
1,682,462
Equity attributable to owners of the parent company
2,025,135
1,972,577
Non-controlling interests
(266,779)
(232,709)
1,758,356
1,739,868
Benchmark Sport Holdings Limited
Group Balance Sheet (Continued)
As at 31 December 2023
Page 12
The financial statements were approved by the board of directors and authorised for issue on 19 June 2024 and are signed on its behalf by:
19 June 2024
N Keller
Director
Benchmark Sport Holdings Limited
Company Balance Sheet
As at 31 December 2023
31 December 2023
Page 13
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
15
10,005
10,134
Tangible assets
14
23,003
30,427
Investments
16
4,626,519
4,626,519
4,659,527
4,667,080
Current assets
Debtors
19
878,131
574,739
Cash at bank and in hand
41,796
40,339
919,927
615,078
Creditors: amounts falling due within one year
20
(410,251)
(138,776)
Net current assets
509,676
476,302
Total assets less current liabilities
5,169,203
5,143,382
Creditors: amounts falling due after more than one year
22
(154,999)
(214,999)
Provisions for liabilities
Deferred tax liability
23
(5,804)
-
0
(5,804)
-
Net assets
5,008,400
4,928,383
Capital and reserves
Called up share capital
25
1,064
1,064
Share premium account
289,810
289,810
Other reserves
4,574,001
4,574,001
Profit and loss reserves
143,525
63,508
Total equity
5,008,400
4,928,383

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £496,383 (2022 - £323).

Benchmark Sport Holdings Limited
Company Balance Sheet (Continued)
As at 31 December 2023
31 December 2023
Page 14
The financial statements were approved by the board of directors and authorised for issue on 19 June 2024 and are signed on its behalf by:
19 June 2024
N Keller
Director
Company Registration No. 06540547 (England and Wales)
Benchmark Sport Holdings Limited
Group Statement of Changes in Equity
For the year ended 31 December 2023
Page 15
Share capital
Share premium account
Other reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1,033
249,967
(759)
1,314,268
1,564,509
-
1,564,509
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
368,194
368,194
(550)
367,644
Issue of share capital
25
31
-
0
-
-
31
-
31
Acquisition of subsidiary
-
-
-
-
-
(232,159)
(232,159)
Other movements
-
39,843
-
-
39,843
-
39,843
Balance at 31 December 2022
1,064
289,810
(759)
1,682,462
1,972,577
(232,709)
1,739,868
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
582,558
582,558
(34,070)
548,488
Dividends
12
-
-
-
(530,000)
(530,000)
-
(530,000)
Balance at 31 December 2023
1,064
289,810
(759)
1,735,020
2,025,135
(266,779)
1,758,356
Benchmark Sport Holdings Limited
Company Statement of Changes in Equity
For the year ended 31 December 2023
Page 16
Share capital
Share premium account
Other reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1,033
249,967
4,574,001
63,185
4,888,186
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
323
323
Issue of share capital
25
31
-
0
-
-
31
Other movements
-
39,843
-
-
39,843
Balance at 31 December 2022
1,064
289,810
4,574,001
63,508
4,928,383
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
610,017
610,017
Dividends
12
-
-
-
(530,000)
(530,000)
Balance at 31 December 2023
1,064
289,810
4,574,001
143,525
5,008,400
Benchmark Sport Holdings Limited
Group Statement of Cash Flows
For the year ended 31 December 2023
Page 17
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,223,751
876,417
Interest paid
(56,498)
(33,903)
Income taxes paid
(297,491)
(135,560)
Net cash inflow from operating activities
869,762
706,954
Investing activities
Purchase of subsidiaries, net of cash acquired
-
21,646
Purchase of intangible assets
(192,781)
(627,740)
Purchase of tangible fixed assets
(68,329)
(31,774)
Proceeds from disposal of joint ventures
50
-
Loans made to directors
(67,116)
-
Interest received
-
0
5
Net cash used in investing activities
(328,176)
(637,863)
Financing activities
Proceeds from new bank loans
-
711,500
Repayment of bank loans
(120,955)
(14,955)
Dividends paid to equity shareholders
(530,000)
-
0
Net cash (used in)/generated from financing activities
(650,955)
696,545
Net (decrease)/increase in cash and cash equivalents
(109,369)
765,636
Cash and cash equivalents at beginning of year
1,815,705
1,050,069
Cash and cash equivalents at end of year
1,706,336
1,815,705
Benchmark Sport Holdings Limited
Notes to the Group Financial Statements
For the year ended 31 December 2023
Page 18
1
Accounting policies
Company information

Benchmark Sport Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 110 High Holborn, London, England, WC1V 6JS.

 

The group consists of Benchmark Sport Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Benchmark Sport Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 19
1.4
Going concern

The financial statements have been prepared on a going concern basis which assumes that the group is able to meet its obligations as they fall due for the foreseeable future.

 

The group meets its day to day working capital requirements through its own self-generated cash resources. The directors review cash monthly to ensure that all short- and long-term obligations of the business can be met.

 

At the balance sheet date Benchmark had net assets of £1.76m, cash at bank of £1.7m, with debtors due of £4.3m relating predominately to our largest client at the year end. In early January 2024 around £2m of this debtor balance was paid to terms. Creditors falling due within one year excluding the loans were £5.3m. The group has secured and drawn Covid loans totalling £0.57m as at the balance sheet date; these loans have no requirement for security. The directors maintain a good ongoing dialogue with the group bank to ensure the best and most efficient bank facilities to support the business needs.

 

The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements and as such the use of the going concern basis for the preparation of the financial statements is appropriate.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion of the project, costs incurred and when costs to complete can be estimated reliably. The stage of completion is calculated by reference to the company’s time reporting systems, comparing costs incurred, mainly in relation to contractual hours, staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that is probable will be recovered.

 

Revenue for events, tickets, entry sales and sponsorship are recognised in the month when the invoice is raised in the run up to the event, when the event takes place revenues are fully reconciled and released. Any revenues received in advance for a future event are deferred.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 20
1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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:

Software
5 years straight line
Patents & licences
10 years straight line
Brand
10 years straight line
Websites
3 to 5 years straight line
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation 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:

Leasehold improvements
4 years or over the lease term
Plant and equipment
3 years straight line
Fixtures and fittings
15% reducing balance
Computers
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 21
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 22
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
Derivatives

The company enters into currency forward contracts in order to manage its exposure to foreign exchange risk.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 23
1.15
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.

 

Benchmark monitor closely the holiday days that employees take to ensure that holiday is being used in line with company policy. It is considered important to employee welfare that employees utilise holiday evenly though-out the year. Only 3 days can be carried over into a new financial year and as such the holiday accrual liability at any one point in time is considered immaterial.

 

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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

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 leased asset are consumed.

1.18
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.

 

Forward contracts held at the reporting date are marked to market and held at fair value whereby any foreign gain or loss from the difference between the contract rate and the actual rate prevailing at the reporting date is included in the profit and loss account. The valuation of the forwards contracts mark to market is provided by the group’s independent foreign currency brokers.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 24
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 that 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Carrying value of goodwill & connected entity loans

The directors assess at each reporting period the carrying value of goodwill and recoverability of loans made to connected entities which sit outside of the group. They use future forecasts, projections and development plans for each business line in coming to their conclusion.

 

At the year end the shareholders agreed to write off £125,000 owed by a connected entity. Further information can be found in note 4 and 27.

Valuation of forward contracts

Forward contracts held at the reporting date are marked to market and held at fair value whereby any foreign gain or loss from the difference between the contract rate and the actual rate prevailing at the reporting date is included in the profit and loss account. The valuation of the forwards contracts mark to market is provided by the group’s independent foreign currency brokers.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Consultancy
2,892,000
2,504,000
Sponsorship
4,221,000
2,991,000
Live Events & Tables
4,559,000
3,754,000
Talent Management
1,096,000
1,447,000
Other
113,162
422,963
12,881,162
11,118,963
Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
3
Turnover and other revenue
(Continued)
Page 25
2023
2022
£
£
Turnover analysed by geographical market
UK
5,158,162
6,124,963
Europe
229,000
62,000
Americas (Inc. USA)
3,412,000
1,953,000
Asia & Far East
3,573,000
1,712,000
Australia
509,000
1,267,000
12,881,162
11,118,963
2023
2022
£
£
Other revenue
Interest income
113,634
242,005
4
Exceptional item
2023
2022
£
£
Expenditure
Impairment of goodwill
-
1,060,630
Impairment of loans to connected entities
125,000
-
125,000
1,060,630

At the year end the shareholders agreed to write down £125,000 of the loan held with Beyond Sport Foundation UK. This is being treated as an exceptional item. Further information can be found in note 27.

 

In the previous financial year the entity impaired goodwill on the acquisition of National Student Esports Limited into the group.

 

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
71,583
(163,291)
Depreciation of owned tangible fixed assets
30,414
42,401
Amortisation of intangible assets
389,775
258,907
Impairment of intangible assets
-
0
1,060,630
Operating lease charges
221,908
168,830
Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 26
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
27,500
-
27,500
-
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
247,000
217,642
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
247,000
217,642
8
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
55
47
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,082,239
2,613,682
-
0
39,874
Social security costs
329,548
299,281
-
-
Pension costs
113,811
89,445
-
0
-
0
3,525,598
3,002,408
-
0
39,874
Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 27
9
Interest receivable and similar income
2023
2022
as restated
£
£
Interest income
Interest on bank deposits
-
0
5
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
113,634
242,000
Total income
113,634
242,005

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
-
5
Interest on financial assets measured at fair value through profit or loss
113,634
242,000
10
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
56,175
33,903
11
Taxation
2023
2022
as restated
£
£
Current tax
UK corporation tax on profits for the current period
189,171
173,494
Adjustments in respect of prior periods
31,715
(25,957)
Total UK current tax
220,886
147,537
Foreign current tax on profits for the current period
74,219
9,278
Total current tax
295,105
156,815
Deferred tax
Origination and reversal of timing differences
16,122
-
0
Total tax charge
311,227
156,815
Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
11
Taxation
(Continued)
Page 28

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
as restated
£
£
Profit before taxation
859,715
524,459
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
202,205
99,647
Fixed asset differences
167
(1,835)
Expenses not deductible for tax purposes
63,640
236,361
Adjustments in respect of prior periods
31,585
(25,957)
Movement in deferred tax not recognised
25,624
(8,846)
Effect of overseas tax
(11,994)
(26,982)
Research and development tax credit
-
(115,573)
Taxation charge
311,227
156,815
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
530,000
-
13
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
Goodwill
15
-
1,060,630

The impairment losses in respect of goodwill have been recognised as an exception item in the profit and loss account.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 29
14
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2023
89,090
2,154
242,172
3,552
336,968
Additions
30,032
8,000
30,297
-
0
68,329
At 31 December 2023
119,122
10,154
272,469
3,552
405,297
Depreciation and impairment
At 1 January 2023
81,369
366
181,542
3,328
266,605
Depreciation charged in the year
5,962
1,360
22,868
224
30,414
At 31 December 2023
87,331
1,726
204,410
3,552
297,019
Carrying amount
At 31 December 2023
31,791
8,428
68,059
-
0
108,278
At 31 December 2022
7,721
1,788
60,630
224
70,363
Company
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
83,502
191,213
274,715
Depreciation and impairment
At 1 January 2023
80,110
164,178
244,288
Depreciation charged in the year
3,124
4,300
7,424
At 31 December 2023
83,234
168,478
251,712
Carrying amount
At 31 December 2023
268
22,735
23,003
At 31 December 2022
3,392
27,035
30,427
Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 30
15
Intangible fixed assets
Group
Goodwill
Software
Patents & licences
Brand
Websites
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,749,890
1,201,411
251,789
17,288
25,901
3,246,279
Additions - internally developed
-
0
10,000
23,482
-
0
-
0
33,482
Additions - separately acquired
-
0
155,985
1,400
1,602
312
159,299
Transfers
-
0
-
0
(4,060)
4,060
-
0
-
0
At 31 December 2023
1,749,890
1,367,396
272,611
22,950
26,213
3,439,060
Amortisation and impairment
At 1 January 2023
1,190,194
471,636
42,290
1,912
4,745
1,710,777
Amortisation charged for the year
137,852
204,628
36,090
2,500
8,705
389,775
At 31 December 2023
1,328,046
676,264
78,380
4,412
13,450
2,100,552
Carrying amount
At 31 December 2023
421,844
691,132
194,231
18,538
12,763
1,338,508
At 31 December 2022
559,696
729,775
209,499
15,376
21,156
1,535,502
Company
Software
Brand
Total
£
£
£
Cost
At 1 January 2023
45,888
10,675
56,563
Additions
-
0
1,602
1,602
At 31 December 2023
45,888
12,277
58,165
Amortisation and impairment
At 1 January 2023
45,379
1,050
46,429
Amortisation charged for the year
298
1,433
1,731
At 31 December 2023
45,677
2,483
48,160
Carrying amount
At 31 December 2023
211
9,794
10,005
At 31 December 2022
509
9,625
10,134

More information on impairment movements in the year is given in note 13.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 31
16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
4,576,519
4,576,519
Investments in joint ventures
-
0
50
-
0
-
0
Unlisted investments
50,000
50,000
50,000
50,000
50,000
50,050
4,626,519
4,626,519
Movements in fixed asset investments
Group
Shares in joint ventures
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
50
50,000
50,050
Disposals
(50)
-
(50)
At 31 December 2023
-
50,000
50,000
Carrying amount
At 31 December 2023
-
50,000
50,000
At 31 December 2022
50
50,000
50,050
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023 and 31 December 2023
4,576,519
50,000
4,626,519
Carrying amount
At 31 December 2023
4,576,519
50,000
4,626,519
At 31 December 2022
4,576,519
50,000
4,626,519
17
Subsidiaries

Details of the company's direct and indirect subsidiaries at 31 December 2023 are as follows:

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
17
Subsidiaries
(Continued)
Page 32
Name of undertaking
Address
% Held
Direct
Indirect
Benchmark Sport Ltd
1
100.00
-
Benchmark Talent Ventures Ltd
1
100.00
-
Square Mile Sport Ltd
1
100.00
-
Sport Industry Awards Ltd
1
100.00
-
The Podcast Group Ltd
1
100.00
-
Beyond Sport Ltd
1
100.00
-
Think Beyond Services Ltd
1
100.00
-
Think Beyonds Studios Ltd
1
100.00
-
Earth to Ocean Ltd
1
-
100.00
National Student Esports Ltd
1
82.00
-
Think Beyond Services US, Inc
2
-
100.00

Registered office addresses (all UK unless otherwise indicated):

1
5th Floor, 110 High Holborn, London, WC1V 6JS
2
119 W. 24th Street 4th Floor, New York, NY 10011, United States
18
Financial instruments
Group
Company
2023
2022
2023
2022
as restated
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
113,634
242,000
113,634
-

The group enters into forward foreign currency contracts to mitigate the exchange rate risk for US foreign currency receivables. As at 31 December 2023, the outstanding contracts all mature within 10 months (2022: 10 months) of the year end. The group is committed to buy US$5,000,000 and pay a fixed sterling amount (2022: US$4,000,000).

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 33
19
Debtors
Group
Company
2023
2022
2023
2022
as restated
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,060,757
1,090,790
-
0
-
0
Corporation tax recoverable
35,870
-
0
5,950
-
0
Amounts owed by group undertakings and connected companies
418,154
683,380
671,914
497,986
Derivative financial instruments
113,634
242,000
113,634
-
Other debtors
208,608
232,790
79,383
61,753
Prepayments and accrued income
451,284
417,839
7,250
15,000
4,288,307
2,666,799
878,131
574,739
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
21
127,658
120,929
60,000
60,000
Trade creditors
1,146,406
1,162,079
-
0
10,710
Amounts owed to group undertakings and connected companies
-
0
17,852
317,555
6,814
Corporation tax payable
207,391
173,907
5,950
-
0
Other taxation and social security
177,271
163,375
18,736
53,752
Deferred income
2,155,269
741,937
-
0
-
0
Other creditors
269,452
455,949
-
0
-
0
Accruals
1,185,572
986,907
8,010
7,500
5,269,019
3,822,935
410,251
138,776
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
575,590
696,545
214,999
274,999
Payable within one year
127,658
120,929
60,000
60,000
Payable after one year
447,932
575,616
154,999
214,999

As of 31 December 2023, the Group's bank loans are made up of Covid recovery loans. These loans involve no security or guaranties.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 34
22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
447,932
575,616
154,999
214,999
23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
25,286
-
Retirement benefit obligations
(9,164)
-
16,122
-
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
5,804
-
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
-
-
Charge to profit or loss
16,122
5,804
Liability at 31 December 2023
16,122
5,804

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
113,811
89,445
Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
24
Retirement benefit schemes
(Continued)
Page 35

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
106,378
106,378
1,064
1,064
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
179,127
138,168
179,127
138,168
Between two and five years
298,545
-
298,545
-
477,672
138,168
477,672
138,168
Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 36
27
Related party transactions

The following related party transactions occurred during the period:

 

At the balance sheet date Benchmark Sport Ltd is owed £51,222 (2022: £1,736) by a director, £50,000 (2022: £nil) via a signed loan agreement made within the financial year.

 

During the period the group paid Brendon Street, the managing company of one of the shareholders, £30,000 (2022: £12,000) by way of 12 equal monthly service charge payments. At the balance sheet date, the balance was nil.

 

Sports Industry Awards South Africa (Pty.) Limited, owned 100% by a director, charged the group £40,890 (2022: £46,132) for use of the license in the year.

 

At the balance sheet date Benchmark Sport Holding Ltd is owed £71,914 (2022: £112,803) by Sports Industry Awards South Africa (Pty.) Limited.

 

In the year the group invoiced the Beyond Sport Foundation UK, a charity controlled by a director, £30,000 (2022: £69,707) for central services used from the group. At the year end the shareholders agreed to write down £125,000 of the loan held with Beyond Sport Foundation UK, this is being treated as an exceptional item.

 

At the balance sheet date the Benchmark Group is owed £96,571 by Beyond Sport Foundation. (2022: £211,894), A post year end payment of £70,000 was made against this loan by Beyond Sport Foundation UK reducing the effective loan balance to £26,571.

 

In the year the group invoiced the Beyond Sport Foundation US, a charity controlled by a director, £84,221 (2022: £nil) for central services used from the group.

 

At the balance sheet date the Benchmark Group is owed £245,987 by Beyond Sport Foundation US. (2022: £358,328). A post year end payment of £130,000 was made against this loan by Beyond Sport Foundation US, reducing the effective loan balance to £115,987.

 

A relative of a director, a corporate coach, invoiced the group £1,190 for coaching services. At the balance sheet date, the balance was nil.

 

A connected party of a director received £6,570 for private medical insurance (2022: £8,984).

 

Benchmark Sport Ltd is owed £3,681 (2022: £3,681) by The Defiance Project.

 

During the financial year a total of key Management Personnel compensation of £1.14m was paid.

 

Benchmark Sport Holding Ltd is owed £17,630 by Key Management Personnel via an interest-bearing signed loan agreement made in December 2022.

28
Controlling party

The company is controlled by Nick Keller by virtue of his majority shareholding.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 37
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
548,488
367,644
Adjustments for:
Taxation charged
311,227
156,815
Finance costs
56,175
33,903
Investment income
(113,634)
(242,005)
Amortisation and impairment of intangible assets
389,775
1,319,537
Depreciation and impairment of tangible fixed assets
30,414
42,401
Decrease in provisions
-
(420,000)
Movements in working capital:
(Increase)/decrease in debtors
(1,404,888)
801,147
Increase/(decrease) in creditors
1,418,853
(1,183,025)
Decrease in deferred income
(12,659)
-
Cash generated from operations
1,223,751
876,417
30
Analysis of changes in net funds
1 January 2023
Cash flow movement
31 December 2023
£
£
£
Cash at bank and in hand
1,815,705
(109,369)
1,706,336
Borrowings excluding overdrafts
(696,545)
120,955
(575,590)
1,119,160
11,586
1,130,746
Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 38
31
Prior period adjustment
Reconciliation of changes in equity - group
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Recognition of forward currency contracts
-
242,000
Tax effect thereof
-
(45,980)
Total adjustments
-
196,020
Equity as previously reported
1,564,509
1,543,848
Equity as adjusted
1,564,509
1,739,868
Analysis of the effect upon equity
Profit and loss reserves
-
196,020
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Recognition of forward currency contracts
242,000
Tax effect thereof
(45,980)
Total adjustments
196,020
Profit as previously reported
171,624
Profit as adjusted
367,644
Notes to reconciliation

The prior year group figures have been restated to reflect forward currency contracts held within Square Mile Sport Services Limited. This adjustments recognises a value of £242,000 at the preceding year end.

Benchmark Sport Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2023
Page 39
32
Subsidiary companies audit exemption

The Company's active subsidiaries listed below are exempt from the requirements of the Companies Act 2006 relating to the audit of their individual accounts by virtue of section 479A of the Companies Act 2006.

 

The parent company has therefore guaranteed all existing liabilities of the below entities until they are settled in full.

 

Benchmark Sport Limited (no. 03158825)

Benchmark Talent Ventures Limited (no. 12981441)

Square Mile Sport Services Limited (no. 11015254)

Sport Industry Awards Limited (no. 04236764)

The Podcast Group Ltd (no. 13501843)

Beyond Sport Limited (no. 06578851)

Think Beyond Services Limited (no. 11015252)

Earth to Ocean Limited (no. 07101780)

National Student Esports Limited (no. 10907331)

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