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SRO Motorsports Europe Limited

Registered number: 03013210
Annual Report
For the year ended 31 December 2023

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
COMPANY INFORMATION


Director
S Ratel 




Registered number
03013210



Registered office
30 Old Bailey

London

EC4M 7AU




Trading address
110 Old Brompton Road

London

SW7 3RA






Auditors
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

2nd Floor

6 Sutton Plaza

Sutton Court Road

Sutton

Surrey

SM1 4FS





 
SRO MOTORSPORTS EUROPE LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Director's Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Consolidated Statement of Comprehensive Income
 
9
Consolidated Statement of Financial Position
 
10
Company Statement of Financial Position
 
11
Consolidated Statement of Changes in Equity
 
12
Company Statement of Changes in Equity
 
13
Consolidated Statement of Cash Flows
 
14
Notes to the Financial Statements
 
15 - 35


 
SRO MOTORSPORTS EUROPE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The director presents his Strategic Report and Director's Report on the affairs of the Group and the Company together with the audited consolidated financial statements for the year ended 31 December 2023.

Principal activity

The principal activity of the Group and the Company is the organisation and hosting of motorsport events.

Business review
 
During the year, the Group continued to be strong in turnover and gross profitability.

Key performance indicators ("KPIs")

2023
2022
£
£

KPI


Turnover
31,529,020
27,197,355

Gross profit
12,043,435
9,551,197

Profit before tax
5,052,823
4,758,783

Future developments

The Group has now entirely recovered from the Covid years. After two years of interruption, the Asian Series has successfully restarted and grew its footprint in Japan. Our four American Series has made substantial progress and are now stable enough to allow for future growth while our main European Series has benefited from the additional media exposure and spectators' attendance generated by motorbike legend Valentino Rossi joining it. The British and French GT Championships are back to their pre covid levels, the GT4 European Series has never been so successful and only on their second year of running, the e-sport online racing series became profitable thanks to the support of a title sponsor. The overall Group profitability has supported strategic investments in the development of the FIA Motorsport Games, of the GT2 category and of the GTX World Tour project for Electric powered cars. Sustainability has become a Group priority with the objective of reaching 85 percent carbon neutrality in 2024 by investing in eight carefully selected environmental projects around the world.

Principal risks and uncertainties
 
The operations of the Group expose it to a variety of financial risks that include the effects of currency risk, credit risk and liquidity risk. The Group uses sound management principles to mitigate these risks. The director is responsible for setting the objectives and underlying principles of financial risk management policies for the Group. The policies set by the director are implemented by the finance team of the Group.
Currency risk
Currency risk arises when transactions are denominated in foreign currencies. The Group trades in a number of currencies and actively manages cashflow demands in particular currencies to ensure that sufficient foreign currencies are held to settle foreign currency obligations as they arise.

- 1 -

 
SRO MOTORSPORTS EUROPE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties (continued)
Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The trade receivables, the Group performs ongoing credit valuations of its customers and the Group maintains an allowance for doubtful accounts which, when realised, have been within the range of management’s expectations. For other financial assets, the Group adopts the policy of dealing only with high credit quality counterparts.
Credit exposure to an individual counterparty is restricted by credit limits that are approved based on ongoing credit evaluation. The counterparty’s payment profile and credit exposure are continuously monitored by management.
Liquidity risk
The liquidity risk is usually assessed by comparing liquid assets and short term liabilities. The Group manages the liquidity risk by using cash flow forecasts which enables the Group to monitor its working capital and take remedial action when necessary. The Group generates surplus cash and the associated risk is considered low.

Economic impact of global events

Despite the inflation, the geopolitical uncertainties and the impact of Brexit, our activity has continued to develop, even if a larger part of it is now organised from our European based subsidiary companies. 


This report was approved by the board and signed on its behalf by:



S Ratel
Director

Date: 11 September 2024

- 2 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents his report and the audited consolidated financial statements for the year ended 31 December 2023.

Principal activity

The principal activity of the Group and the Company is the organisation and hosting of motorsport events.

Results and dividends

The profit for the year, after taxation and minority interests and minority interests, amounted to £3,799,140 (2022: profit of 3,788,303).

During the year, the Group and the Company paid dividends amounting to £2,264,703 (2022: £3,801,705).

Director

The director who served during the year and to the date of this report was:

S Ratel 

Director's responsibilities statement

The director is responsible for preparing the Group Strategic Report, the Director's Report and the audited consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare audited consolidated financial statements for each financial year. Under that law the director has elected to prepare the audited consolidated 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 director must not approve the audited consolidated financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

In preparing these audited consolidated financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the audited consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is 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 the Group and to enable him to ensure that the audited consolidated financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

- 3 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Qualifying third party indemnity provisions

The director benefits from a qualifying indemnity provision in the form permitted by the Section 234 of the Companies Act 2006 in respect of certain third party actions against the director. No claim or notice of claim in respect of these indemnities has been received in the year. The qualifying indemnity provision was in force throughout the financial year and up to the date of approval of the Director's Report.

Matters covered in the Strategic Report

As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 certain matters which are required to be disclosed in the Director's Report have been omitted as they are included in the Strategic Report. These matters relate to financial instrument risk.

Going concern

The Group and the Company was profitable during the year and as at year end has net current assets. The director notes the risks and uncertainties facing the Group and the Company, particularly with respect to the challenges caused by political, economic, social, technological, legal and environmental factors. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working. Notwithstanding those risks, the Group and the Company are not considered to face a threat to their ability to continue operations for the foreseeable future, and accordingly the financial statements have been prepared on the going concern basis.

Provision of information to auditor

The director at the time when this Director's Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Group and the Company's auditor is 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 Group and the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company and the Group since the year end.

Auditor

The auditor, Forvis Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf by:
 



S Ratel
Director

Date: 11 September 2024

- 4 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SRO MOTORSPORTS EUROPE LIMITED
 

Opinion

We have audited the financial statements of SRO Motorsports Europe Limited (the parent ‘Company’) and its subsidiaries (the 'Group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. 
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 Group and the parent Company’s affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the 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 director 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 director is 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.
- 5 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SRO MOTORSPORTS EUROPE LIMITED
 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

- 6 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SRO MOTORSPORTS EUROPE LIMITED
 

Responsibilities of Director

As explained more fully in the director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is responsible for assessing the Group's and 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 director intends either to liquidate the Group or the parent Company or to cease operations, or has 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.
 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
 
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. 

Based on our understanding of the Group and the parent Company and their industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Group and the parent Company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 
- 7 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SRO MOTORSPORTS EUROPE LIMITED
 

In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions. 

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the director and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 auditor’s report.

Use of the audit report

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




Gerhard Bonthuys (Senior statutory auditor)  
For and on behalf of Forvis Mazars LLP

Chartered Accountants and Statutory Auditor
2nd Floor
6 Sutton Plaza
Sutton Court Road
Sutton
Surrey
SM1 4FS

11 September 2024
- 8 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
31,529,020
27,197,355

Cost of sales
  
(19,485,585)
(17,646,158)

Gross profit
  
12,043,435
9,551,197

Administrative expenses
  
(7,087,638)
(4,780,486)

Other operating income
 5 
7,293
6,225

Operating profit
 6 
4,963,090
4,776,936

Interest receivable and similar income
 9 
90,433
14

Interest payable and similar expenses
 10 
(700)
(18,167)

Profit before tax
  
5,052,823
4,758,783

Tax on profit
 11 
(1,234,487)
(916,617)

Profit for the financial year
  
3,818,336
3,842,166

Translation of foreign operations
  
(28,319)
70,456

Other comprehensive (loss)/income for the year
  
(28,319)
70,456

Total comprehensive income for the year
  
3,790,017
3,912,622

Profit for the year attributable to:
  

Non-controlling interests
  
19,196
53,863

Owners of the Company
  
3,799,140
3,788,303

  
3,818,336
3,842,166

The Consolidated Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

The notes on pages 15 to 35 form part of these financial statements.

- 9 -

 
SRO MOTORSPORTS EUROPE LIMITED
REGISTERED NUMBER: 03013210

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible fixed assets
 13 
86,267
184,727

Investments
 14 
851,277
851,277

  
937,544
1,036,004

Current assets
  

Debtors: amounts falling due within one year
 15 
3,385,751
5,169,141

Cash and cash equivalents
 16 
8,755,877
4,119,730

  
12,141,628
9,288,871

Creditors: amounts falling due within one year
 17 
(4,391,413)
(3,154,930)

Net current assets
  
 
 
7,750,215
 
 
6,133,941

Total assets less current liabilities
  
8,687,759
7,169,945

Creditors: amounts falling due after more than one year
 18 
(20,819)
(28,319)

Net assets
  
8,666,940
7,141,626


Capital and reserves
  

Called up share capital 
 21 
1,000
1,000

Foreign exchange reserve
 22 
(2,677)
25,642

Other reserves
 22 
3,300
1,565

Profit and loss account
 22 
8,624,223
7,091,521

Equity attributable to owners of the Company
  
8,625,846
7,119,728

Non-controlling interests
  
41,094
21,898

Total equity
  
8,666,940
7,141,626


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



S Ratel
Director

Date: 11 September 2024

The notes on pages 15 to 35 form part of these financial statements.

- 10 -

 
SRO MOTORSPORTS EUROPE LIMITED
REGISTERED NUMBER: 03013210

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible fixed assets
 13 
17,195
120,838

Investments
 14 
851,277
851,277

  
868,472
972,115

Current assets
  

Debtors: amounts falling due within one year
 15 
2,631,227
4,491,466

Cash and cash equivalents
 16 
8,277,751
2,868,748

  
10,908,978
7,360,214

Creditors: amounts falling due within one year
 17 
(5,086,010)
(2,801,547)

Net current assets
  
 
 
5,822,968
 
 
4,558,667

Total assets less current liabilities
  
6,691,440
5,530,782

  

Net assets
  
6,691,440
5,530,782


Capital and reserves
  

Called up share capital 
 21 
1,000
1,000

Profit and loss account
 22 
6,690,440
5,529,782

Total equity
  
6,691,440
5,530,782


The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Company for the year was £3,425,361 (2022: profit of £3,283,075).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



S Ratel
Director

Date: 11 September 2024

The notes on pages 15 to 35 form part of these financial statements.

- 11 -

 
SRO MOTORSPORTS EUROPE LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Foreign exchange reserve
Other reserves
Profit and loss account
Equity attributable to owners of the Company
Non-controlling interests
Total equity

£
£
£
£
£
£
£


At 1 January 2022
1,000
(44,814)
1,565
7,104,923
7,062,674
(31,965)
7,030,709


Comprehensive income for the year

Profit for the year

-
-
-
3,788,303
3,788,303
53,863
3,842,166

Translation of foreign operations
-
70,456
-
-
70,456
-
70,456
Total comprehensive income for the year
-
70,456
-
3,788,303
3,858,759
53,863
3,912,622

Dividends: Equity capital
-
-
-
(3,801,705)
(3,801,705)
-
(3,801,705)


Total transactions with owners
-
-
-
(3,801,705)
(3,801,705)
-
(3,801,705)



At 1 January 2023
1,000
25,642
1,565
7,091,521
7,119,728
21,898
7,141,626


Comprehensive income for the year

Profit for the year

-
-
-
3,799,140
3,799,140
19,196
3,818,336

Translation of foreign operations
-
(28,319)
-
-
(28,319)
-
(28,319)
Total comprehensive income for the year
-
(28,319)
-
3,799,140
3,770,821
19,196
3,790,017

Dividends: Equity capital
-
-
-
(2,264,703)
(2,264,703)
-
(2,264,703)

Other movement
-
-
1,735
(1,735)
-
-
-


Total transactions with owners
-
-
1,735
(2,266,438)
(2,264,703)
-
(2,264,703)


At 31 December 2023
1,000
(2,677)
3,300
8,624,223
8,625,846
41,094
8,666,940


The notes on pages 15 to 35 form part of these financial statements.

- 12 -

 
SRO MOTORSPORTS EUROPE LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
1,000
6,048,412
6,049,412


Comprehensive income for the year

Profit for the year
-
3,283,075
3,283,075
Total comprehensive income for the year
-
3,283,075
3,283,075

Dividends: Equity capital
-
(3,801,705)
(3,801,705)


Total transactions with owners
-
(3,801,705)
(3,801,705)



At 1 January 2023
1,000
5,529,782
5,530,782


Comprehensive income for the year

Profit for the year
-
3,425,361
3,425,361
Total comprehensive income for the year
-
3,425,361
3,425,361


Contributions by and distributions to owners

Dividends: Equity capital
-
(2,264,703)
(2,264,703)


Total transactions with owners
-
(2,264,703)
(2,264,703)


At 31 December 2023
1,000
6,690,440
6,691,440


The notes on pages 15 to 35 form part of these financial statements.

- 13 -

 
SRO MOTORSPORTS EUROPE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
3,818,336
3,842,166

Adjustments for:

Depreciation of tangible fixed assets
117,495
222,898

Profit on disposal of tangible fixed assets
(5,074)
-

Interest payable and similar expenses
700
18,167

Interest receivable and similar income
(90,433)
(14)

Tax on profit
1,234,487
916,617

Translation of foreign operations
(28,319)
70,456

Decrease/(increase) in debtors
2,417,410
(2,602,314)

Foreign exchange on tangible assets
5,976
-

Increase in creditors
1,382,954
549,690

Corporation tax (paid)
(2,022,478)
(951,978)

Net cash generated from operating activities

6,831,054
2,065,688


Cash flows from investing activities

Purchase of tangible fixed assets
(32,435)
(21,783)

Sale of tangible fixed assets
12,498
844

Interest received
90,433
14

Net cash generated from/(used in) investing activities

70,496
(20,925)

Cash flows from financing activities

Repayment of finance leases
-
(106,260)

Dividends paid to owners of the Company
(2,264,703)
(3,801,705)

Interest paid
(700)
(400)

Net cash used in financing activities
(2,265,403)
(3,908,365)

Net increase/(decrease) in cash and cash equivalents
4,636,147
(1,863,602)

Cash and cash equivalents at beginning of year
4,119,730
5,983,332

Cash and cash equivalents at the end of year
8,755,877
4,119,730


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
8,755,877
4,119,730


- 14 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

SRO Motorsports Europe Limited ("the Company") is a private company limited by shares, registered and incorporated in England and Wales. Its registered number is 03013210. The address of its registered office is 30 Old Bailey, London, EC4M 7AU.
The principal activity of the Group and Company is the organisation and hosting of motorsport events. 

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.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption in its individual finanical statements from preparing a Statement of Cash Flows, on the basis that it is a qualifying entity and the Consolidated Statement of Cash Flows, included in these financial statements, includes the Company's cash flows.
The financial statements have been presented in Pound Sterling and are rounded to the nearest pound as this is the currency of the primary economic environment within which the Company operates.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Financial Position respectively.

- 15 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The Group and the Company was profitable during the year and as at year end has net current assets. The director notes the risks and uncertainties facing the Group and the Company, particularly with respect to the challenges caused by political, economic, social, technological, legal and environmental factors. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working. Notwithstanding those risks, the Group and the Company are not considered to face a threat to their ability to continue operations for the foreseeable future, and accordingly the financial statements have been prepared on the going concern basis.

  
2.4

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Comprehensive Income.

On consolidation, the results of the overseas companies included within the consolidation are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in the foreign exchange reserve.

- 16 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

- 17 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.6
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Leasehold improvements
-
11%
Plant & machinery
-
33%
Motor vehicles
-
33%
Fixtures & fittings
-
33%
Office equipment
-
33%
Specialised hospitality facilities
-
20%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Depreciation is charged to the Consolidated statement of comprehensive income within 'administrative expenses'.

  
2.7

Valuation of investments

Investments in subsidiaries
Investments in subsidiaries are measured at cost less accumulated impairment.
Other investments
The Company purchases motor vehicles as investments from time to time. Such vehicles are held as investments and not depreciated. Their values are considered for impairment annually. 

 
2.8

Debtors: amounts falling due within one year

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

- 18 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.12

Interest receivable and similar income

Interest receivable and similar income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.

- 19 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Interest payable and similar expense

Interest payable and similar expense are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated debt instrument.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.15

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.16

Pensions

Defined contribution pension plan

The Group and Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

- 20 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The director does not consider there to have been any critical judgements or key sources of estimation uncertainty applied in the preparation of these financial statements. 

- 21 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

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


2023
2022
£
£

Event entrance fees
9,819,295
9,849,488

Commissions
6,997,388
5,958,394

Sponsorship
5,426,992
1,585,124

Events related
6,674,309
6,487,746

Other
2,611,036
3,316,603

31,529,020
27,197,355


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
8,621,834
3,007,495

Rest of Europe
22,305,317
23,608,207

Rest of the world
601,869
581,653

31,529,020
27,197,355



5.


Other operating income

2023
2022
£
£

Sundry operating income
7,293
6,225



6.


Operating profit

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

2023
2022
£
£

Depreciation of tangible fixed assets
122,242
222,898

(Profit)/loss on disposal of tangible fixed assets
(5,074)
843

Exchange differences
99,722
(268,755)

Operating lease rentals
339,109
329,702

- 22 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the consolidated and the Company's financial statements
40,000
40,000

 
 

Fees payable to the Group's auditor in respect of:


Taxation compliance services
4,800
5,900

All other services
12,426
6,935

17,226
12,835


8.


Employees

Staff costs were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
2,377,557
2,161,903
1,340,449
1,354,261

Social security costs
464,946
416,519
159,049
172,615

Cost of defined contribution scheme
177,531
175,466
81,184
94,072

3,020,034
2,753,888
1,580,682
1,620,948


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Employees
38
32
18
20

The director did not receive any remuneration for his services to the Group or the Company during the year (2022: £nil).
The director is considered to be the Key Management Personnel of the Group and the Company.

- 23 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest receivable and similar income

2023
2022
£
£


Other interest receivable
90,433
14


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
513
400

Finance leases and hire purchase contracts
-
17,767

Other interest payable
187
-

700
18,167


11.


Tax on profit


2023
2022
£
£

Corporation tax


Current tax on profits for the year
1,107,124
800,212

Adjustments in respect of previous periods
17,022
(4,048)


1,124,146
796,164

Foreign tax


Foreign tax on income for the year
127,997
151,567

Total current tax
1,252,143
947,731

Deferred tax


Origination and reversal of timing differences
(17,656)
(20,175)

Adjustments in respect of prior periods
-
(3,590)

Effect of tax rate change on opening balance
-
(7,349)

Total deferred tax
(17,656)
(31,114)


Tax on profit
1,234,487
916,617
- 24 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Tax on profit (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 23.52% (2022:19%). The differences are explained below:

2023
2022
£
£


Profit before tax
4,531,851
4,758,783


Profit before tax multiplied by standard rate of corporation tax in the UK of 23.52% (2022: 19%)
1,065,916
904,169

Effects of:


Fixed asset differences
-
2,765

Expenses not deductible for tax purposes
24,597
7,385

Adjustments to tax charge in respect of prior periods
17,022
(4,048)

Adjustments to tax charge in respect of prior periods - deferred tax
-
(3,590)

Remeasurement of deferred tax for changes in tax rates
(1,045)
(6,606)

Effect of overseas tax rates
127,997
16,542

Total tax charge for the year
1,234,487
916,617


Factors that may affect future tax charges

From 1 April 2023, the rate of corporation tax in the United Kingdom has increased from 19% to 25%. Companies with profits of £50,000 or less are continuing to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase. Deferred tax recognised during the year has been calculated at 25%.


12.


Dividends

2023
2022
£
£


Dividends paid
2,264,703
3,801,705

- 25 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets

Group






Leasehold improvements
Plant & machinery
Motor vehicles
Fixtures & fittings
Office equipment
Specialised hospitality facilities
Total

£
£
£
£
£
£
£



Cost


At 1 January 2023
74,096
38,103
393,729
230,245
90,303
794,025
1,620,501


Additions
-
-
-
7,903
24,532
-
32,435


Disposals
-
(7,424)
-
(14,025)
-
-
(21,449)


Exchange adjustments
(1,466)
(754)
(560)
(250)
(591)
-
(3,621)



At 31 December 2023

72,630
29,925
393,169
223,873
114,244
794,025
1,627,866



Depreciation


At 1 January 2023
35,610
26,304
299,104
207,133
73,598
794,025
1,435,774


Charge for the year
7,114
306
84,454
13,372
12,249
-
117,495


Disposals
-
-
-
(14,025)
-
-
(14,025)


Exchange adjustments
704
520
471
198
462
-
2,355



At 31 December 2023

43,428
27,130
384,029
206,678
86,309
794,025
1,541,599



Net book value



At 31 December 2023
29,202
2,795
9,140
17,195
27,935
-
86,267



At 31 December 2022
38,486
11,799
94,625
23,112
16,705
-
184,727

- 26 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           13.Tangible fixed assets (continued)


Company






Motor vehicles
Fixtures & fittings
Office equipment
Specialised hospitality facilities
Total

£
£
£
£
£

Cost


At 1 January 2023
365,395
217,621
60,425
794,025
1,437,466


Additions
-
-
4,217
-
4,217


Disposals
-
(14,025)
-
-
(14,025)



At 31 December 2023

365,395
203,596
64,642
794,025
1,427,658



Depreciation


At 1 January 2023
275,267
197,109
50,227
794,025
1,316,628


Charge for the year
90,128
11,094
6,638
-
107,860


Disposals
-
(14,025)
-
-
(14,025)



At 31 December 2023

365,395
194,178
56,865
794,025
1,410,463



Net book value



At 31 December 2023
-
9,418
7,777
-
17,195



At 31 December 2022
90,128
20,512
10,198
-
120,838






- 27 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Investments

Group





Other fixed asset investments

£



Cost  


At 1 January 2023
851,277



At 31 December 2023

851,277






Net book value



At 31 December 2023
851,277



At 31 December 2022
851,277

Company





Investment in subsidiary
Other fixed asset investments
Total

£
£
£



Cost  


At 1 January 2023
13,454
851,277
864,731



At 31 December 2023

13,454
851,277
864,731



Impairment


At 1 January 2023
13,454
-
13,454



At 31 December 2023

13,454
-
13,454



Net book value



At 31 December 2023
-
851,277
851,277



At 31 December 2022
-
851,277
851,277

- 28 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Other fixed asset investments
Other fixed asset investments comprise motor vehicles held as investments.
Subsidiary undertakings
The subsidiary undertakings of the Company are set out below. Indirect subsidiaries are indicated with (*). 


Name
Registered office
Principal activity
Class of shares
Holding


SRO Paris SARL
Avenue George V 34, 75008 Paris, France
Organisation and hosting of motorsport events
Ordinary
99%

SRO Race Centre SARL*
Hall Mistral, Circuit Paul Ricard, 2760 Route des Hauts du Camp, 83330 Le Castellet, France
Storage, preparation, repair and servicing of elite race and road cars
Ordinary
50%

 
 
 
 
 

15.


Debtors: amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
978,771
3,117,666
762,810
2,744,376

Amounts owed by group undertakings
571,341
313,710
568,622
264,986

Other debtors
478,070
1,277,388
29,610
1,079,365

Prepayments and accrued income
630,699
367,527
578,205
309,889

Tax recoverable
616,364
-
581,474
-

Deferred taxation (note 20)
110,506
92,850
110,506
92,850

3,385,751
5,169,141
2,631,227
4,491,466


Amounts owed by group undertakings are unsecured, interest free and repayable on demand.


16.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
8,755,877
4,119,730
8,277,751
2,868,748


Cash at bank is secured by a debenture over the assets of the parent company.

- 29 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Creditors: amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
941,236
687,205
523,229
512,699

Amounts owed to group undertakings
317,247
198,476
1,907,551
423,784

Corporation tax
-
153,971
-
58,034

Other taxation and social security
198,891
238,468
140,274
169,366

Other creditors
198,946
175,679
38,141
17,368

Accruals and deferred income
2,735,093
1,701,131
2,476,815
1,620,296

4,391,413
3,154,930
5,086,010
2,801,547


Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.


18.


Creditors: amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Other creditors
20,819
28,319
-
-




19.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets that are debt instruments measured at amortised cost
11,041,189
7,738,560
9,892,830
6,008,873


Financial liabilities

Financial liabilities that are debt instruments measured at amortised cost
(2,493,585)
(2,790,811)
(3,262,684)
(2,574,149)


Financial assets measured at amortised cost comprise cash and cash equivalents, trade and other debtors, amounts owed by group undertakings and accrued income.


Financial liabilities measured at amortised cost comprise trade and other creditors, amounts owed to group undertakings, amounts owed by related parties and accruals.

- 30 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Deferred taxation


Group



2023
2022


£

£



At beginning of year
92,850
61,736


Credited to the Consolidated Statement of Comprehensive Income
17,656
31,114



At end of year
110,506
92,850

The deferred tax asset is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Fixed asset timing differences
104,415
91,734
104,415
91,734

Short term timing differences
6,091
1,116
6,091
1,116

110,506
92,850
110,506
92,850


21.


Called up share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000 (2022: 1,000) Ordinary shares of £1 each
1,000
1,000

The ordinary shares entitle the holder of each to one voting right and no right to fixed income.

- 31 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Reserves

Foreign exchange reserve

The foreign exchange translation reserve represents cumulative differences on the translation of foreign subsidiaries' assets, liabilities and results upon consolidation. 

Other reserves

Other reserves represent minimum reserves which are required to be held under the legislation of the jurisdictions in which foreign subsidiaries have been incorporated.

Profit and loss account

This reserve represents the cumulative profits and losses of the Company and the Group, net of dividends paid.

Non-controlling interests

This represents the equity in a subsidiary not attributable, directly or indirectly, to the Group.


23.


Contingent liabilities

The Royal Bank of Scotland PLC holds two charges which contain fixed and floating charges over all assets of the Company.


24.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
343,813
87,307

Later than 1 year and not later than 5 years
685,722
209,538

1,029,535
296,845

Operating lease expenses during the year amounted to £339,109 (2022: £336,645).


25.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund during the year and amounted to £177,531 (2022: £175,466). Contributions payable to the fund at the year end amounted to £53,879 (2022: £nil).

- 32 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Consolidated analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

4,119,730

4,508,074

8,627,804






- 33 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

27.


Related party transactions

The Company has taken advantage of the exemption under paragraph 33.1A of Financial Reporting Standard 102 not to disclose arms-length transactions with other wholly owned members of the Group. Other related party transactions are disclosed below.
At the year end, the Company was owed £433 from the director (2022: £112).
During the year, total sales to WC Vision LLC, a fellow subsidiary, amounted to £959,852 (2022: £985,104) and total purchases from WC Vision LLC were £306,176 (2022: £560,253).
During the year, total sales to SRO Motorsport Promotion (SA), a fellow subsidiary, amounted to £504,425 (2022: £757,904) and total purchases from SRO Motorsport Promotion (SA) were £1,168,727 (2022: £2,086,065).
During the year, total sales to Curbstone Track Events, a subsidiary of SRO Motorsports Promotions (SA), amounted to £104,062 (2022: £33,893) and total purchases from Curbstone Track Events were £18,019 (2022: £nil).
During the year, total sales to SRO Motorsports Asia Limited, a fellow subsidiary, amounted to £701,692 (2022: £526,275) and total purchases from SRO Motorsports Asia Limited were £709,175 (2022: £393,076).
During the year, total sales to Australian GT Racing (PTY) Limited, a fellow subsidiary, amounted to £87,319 (2022: £74,218) and total purchases from Australian GT Racing (PTY) Limited were £154,014 (2022: £204,045). During the year, the Group ended it's joint venture in Australian GT Racing (PTY) Limited. 
At the year end the Company had the following balances due from/(to) related parties. All of the companies below are fellow subsidiaries of SRO Motorsports Europe Limited:


2023
2022
£
£

SRO Motorsport Promotion (SA)
22,272
(38,292)
WC Vision LLC
132,866
81,737
9 Hour (PTY) Limited
-
122,201
Australian GT Racing (PTY) Limited
(27,443)
(54,774)
Curbstone Track Events
183
16,932
Kylami 9 Hour
(7,020)
-

- 34 -

 
SRO MOTORSPORTS EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

28.


Post balance sheet events

There have been no significant events affecting the Company and the Group since the year end.


29.


Controlling party

The immediate and ultimate parent company is SRO Sports Limited, a company registered and incorporated in Cyprus.
The ultimate controlling party is considered to be S Ratel, the director of the Company, by virtue of his shareholding in SRO Sports Limited.

- 35 -