Company registration number 14461182 (England and Wales)
SUPERBET SERVICES LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
SUPERBET SERVICES LTD
COMPANY INFORMATION
Director
D Karakabakov
(Appointed 4 November 2022)
Company number
14461182
Registered office
11 Buckingham Palace Road
and business address
London
SW1W 0SR
Auditor
Silver Levene (UK) Limited
Chartered Certified Accountants
Level 5A, Maple House
149 Tottenham Court Road
London
W1T 7NF
SUPERBET SERVICES LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
SUPERBET SERVICES LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the period ended 31 December 2023.

Principal activities

The principal activity of the Company is the trading of services along with the provision of administration and operational support to the Superbet Group.

 

The Company was incorporated and commenced trading on 4 November 2022. The company has chosen to align its period-end with that of the group, resulting in a longer reporting period.

Fair review of the business

The statement of comprehensive income is set out on page 8 and shows the revenue for the year is £14,423,109 and operating profit before taxation of £913,658.

This marks the inaugural trading period for Superbet Services Ltd, subsequent to the separation of administrative and operational trading services from Happening Technology Ltd within the group. This strategic realignment aims to streamline operations, enhance efficiencies, and better position the company for growth in its core markets

Principal risks and uncertainties

The company's operations are exposed to various risks and uncertainties driven by the inability to provide its services to the Superbet Group. The Company benefits from an ongoing demand for its services and expects that demand to continue. The level of the Company’s staffing and contractual arrangements for costs are closely aligned to the services the Company is asked to perform and thus the Company has reasonable certainty that its activities will be profitable.

 

Liquidity risk

The company does not face significant liquidity risk, as robust funding arrangements have been established within the group. These arrangements ensure that sufficient cash flow is available to meet operational needs and obligations, thereby maintaining financial stability and enabling the company to focus on its strategic objectives without liquidity concerns.

 

Interest rate risk

The company does not have any exposure to interest rate risk, as interest-free funding arrangements have been established within the group. This ensures financial stability and predictability, allowing the company to focus on its core operations without the uncertainty of fluctuating interest rates.

Foreign currency risk

The company’s activity is mainly in British Pounds with some transactions made in Euros primarily with Group companies. As a result, the company’s future cash flows arising from these transactions can be affected by movements in exchange rates. No hedging activity is undertaken to mitigate the risk as it is not considered significant.

 

Credit risk

The company does not have significant exposure to credit risk, as it primarily engages in transactions within the group, where robust credit policies and procedures are in place. These measures ensure that all receivables are collected in a timely manner, maintaining financial stability and minimizing the risk of bad debts.

SUPERBET SERVICES LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Development and performance

During the period, the company generated revenue of £14,423,109, primarily from its trading activities and intercompany service agreements. This revenue reflects the successful integration of services transferred from Happening Technology Ltd, ensuring continuity in both trading operations and the provision of administrative and operational support to other group entities.

 

The company achieved operating profit of £913,658, resulting in an operating profit margin of 6.3%. This margin indicates effective management of the company's operations during the transition period. The results are in line with expectations, given the initial setup costs and restructuring efforts. Management views this as a solid starting point, with the expectation of margin improvement as efficiencies are realized and the company continues to integrate its operations within the group

 

The company's financial position is strong, supported by its net asset position. The company has no external debt, with financing obtained from companies within the Superbet group, ensuring stability and flexibility for future growth.

Key performance indicators

There are financial and non-financial Key Performance Indicators used by the company. Non-financial KPI’s includes employment of staff that faces difficulties in accessing the labour market, as well as meeting requirement as per Provision of Services 2009, Employment law and Anti Money Laundering Regulations.

Financial KPI’s can be summarised as follows:

                    2023    

                    £’000        

Turnover                14,423        

 

Operating profit              914    

Profit after Tax             658    

Average Number of Employees          61     

On behalf of the board

D Karakabakov
Director
23 October 2024
SUPERBET SERVICES LTD
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -

The director presents his annual report and financial statements for the period ended 31 December 2023.

Results and dividends

The results for the period are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the period and up to the date of signature of the financial statements was as follows:

D Karakabakov
(Appointed 4 November 2022)
Financial instruments

The financial instruments and risk profiles of the company are set out on page 1 of the Strategic Report.

Auditor

Silver Levene (UK) Limited were appointed as auditor to the company 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 director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

SUPERBET SERVICES LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
D Karakabakov
Director
23 October 2024
SUPERBET SERVICES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPERBET SERVICES LTD
- 5 -
Opinion

We have audited the financial statements of Superbet Services Ltd (the 'company') for the period ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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 UK adopted international accounting standards.

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 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 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

SUPERBET SERVICES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPERBET SERVICES LTD (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:

Responsibilities of director

As explained more fully in the statement of director's responsibilities 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 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 either intends to liquidate the 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.

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. 

 

The following laws and regulations were identified as being of significance to the entity:

 

 

It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.

SUPERBET SERVICES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPERBET SERVICES LTD (CONTINUED)
- 7 -

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error.  As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Goh Yong Chong (Senior Statutory Auditor)
For and on behalf of Silver Levene (UK) Limited
Chartered Certified Accountants
Statutory Auditor
Level 5A, Maple House
149 Tottenham Court Road
London
W1T 7NF
28 October 2024
SUPERBET SERVICES LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
Period
ended
31 December
2023
Notes
£
Revenue
4
14,423,109
Gross profit
14,423,109
Other operating income
1,760
Administrative expenses
(13,511,211)
Operating profit
5
913,658
Income tax expense
7
(255,655)
Profit and total comprehensive income for the period
658,003
SUPERBET SERVICES LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
Notes
£
Non-current assets
Property, plant and equipment
8
292,249
Current assets
Trade and other receivables
9
4,113,203
Cash and cash equivalents
53,322
4,166,525
Current liabilities
Trade and other payables
10
3,676,651
Current tax liabilities
124,119
3,800,770
Net current assets
365,755
Net assets
658,004
Equity
Called up share capital
12
1
Retained earnings
658,003
Total equity
658,004

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 23 October 2024
D Karakabakov
Director
Company registration number 14461182 (England and Wales)
SUPERBET SERVICES LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 4 November 2022
-
-
-
Period ended 31 December 2023:
Profit and total comprehensive income
-
658,003
658,003
Transactions with owners:
Issue of share capital
12
1
-
1
Balance at 31 December 2023
1
658,003
658,004
SUPERBET SERVICES LTD
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
15
605,934
Income taxes paid
(131,536)
Net cash inflow/(outflow) from operating activities
474,398
Investing activities
Purchase of property, plant and equipment
(425,226)
Proceeds from disposal of property, plant and equipment
4,149
Net cash used in investing activities
(421,077)
Financing activities
Proceeds from issue of shares
1
Net cash generated from/(used in) financing activities
1
Net increase in cash and cash equivalents
53,322
Cash and cash equivalents at beginning of year
-
0
Cash and cash equivalents at end of year
53,322
SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Superbet Services Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 11 Buckingham Palace Road, London, SW1W 0SR. The company's principal activities and nature of its operations are disclosed in the director's report.

1.1
Reporting period

This is the first set of financial statements for the entity since its incorporation, therefore there are no comparative figures. The company has chosen to align its year-end with that of the group, resulting in a longer reporting period.

1.2
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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.

1.3
Going concern

The director hastrue, at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. This assessment is based on the company's markup model and inter-group dealings, which ensure a profitable and positive cash flow position. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when all the criteria under IFRS 15 (Revenue from Contracts with Customers) are met.

 

Revenue from rendering of services is recognised when the performance obligation is satisfied, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity, and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

The company provides services to its related parties. Revenue from providing services is recognised in the accounting period in which the services are rendered. The revenue is determined based on a mark-up policy applied to the costs incurred in providing these services.

1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any 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.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
over the lease term
Fixtures and fittings
33% straight line
IT equipment
33% straight line
SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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 income statement.

1.6
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

 

Classification - the company classifies its financial assets in the following measurement categories:

 

 

The classification depends on the company’s business model for managing the financial assets and the contractual terms of the cash flows.

 

Recognition and derecognition

Purchases and sales of financial assets are recognised and derecognised on trade-date, the date on which the company commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the company has transferred substantially all the risks and rewards of ownership.

 

Measurement

At initial recognition, the company measures a financial asset at its fair value, in the case of a financial asset not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in profit or loss. Financial assets of the company are trade receivable, other receivables and loan to related parties which are measured subsequently at amortised cost.

 

Expected credit loss

The company recognises a loss allowance for Expected Credit Loss (ECL) on other receivables and loan to related parties. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The receivables of the company mainly attributable to loan to related parties. The estimation of ECL aligns with the guidelines set forth in IFRS-9.

 

The company recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the company measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.

 

Lifetime ECL represents the expected losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

 

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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 inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.15

Related parties

For purposes of these financial statements, parties are considered to be related to the company if the company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the company and the party are subject to common control or common significant influence. Related parties may be individuals (being members of key management personnel, significant shareholders and/or their close family members) or other entities and include entities which are under significant influence of related parties of the company where those parties are individuals and post-employment benefit plans which are for the benefit of employees of the company or of any entity that is a related party of the group.

2
Adoption of new and revised standards and changes in accounting policies

In the current period, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or may have an effect on future periods:

Standards which are in issue but not yet effective

At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective:

 

 

These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting periods an on foreseeable future transactions.

3
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the director is 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
3
Critical accounting estimates and judgements
(Continued)
- 17 -
Key sources of estimation uncertainty
Useful economic lives of tangible assets

The annual depreciation charge for tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and the residual values are re-assessed annually. They are amended when necessary to reflect the current estimates based on future economic benefit and the physical condition of the assets. See notes 8 for carrying amount of the tangible fixed assets.

4
Revenue
2023
£
Revenue analysed by class of business
Revenue from contracts with customers
14,423,109
2023
£
Revenue analysed by geographical market
European Union
14,423,109
5
Operating profit
2023
Operating profit for the period is stated after charging/(crediting):
£
Exchange losses
11,023
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
Depreciation of property, plant and equipment
127,788
Loss on disposal of property, plant and equipment
1,040
6
Employees

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

2023
Number
61
SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2023
£
Wages and salaries
9,211,587
Social security costs
929,058
Pension costs
425,215
10,565,860

A one-off redundancy payment totaling £350,000 was made to the Group CFO within the year.

7
Income tax expense
2023
£
Current tax
UK corporation tax on profits for the current period
255,655

The charge for the period can be reconciled to the profit per the income statement as follows:

2023
£
Profit before taxation
913,658
Expected tax charge based on a corporation tax rate of 23.50%
214,710
Effect of expenses not deductible in determining taxable profit
10,004
Effect of change in UK corporation tax rate
(6,263)
Depreciation on assets not qualifying for tax allowances
30,030
Capital allowance
(7,121)
Pension contributions
14,709
Non trade loan relationship credits
(414)
Taxation charge for the period
255,655
8
Property, plant and equipment
Leasehold land and buildings
Fixtures and fittings
IT equipment
Total
£
£
£
£
Cost
At 4 November 2022
-
0
-
0
-
0
-
Additions
275,704
55,772
93,750
425,226
Disposals
-
0
-
0
(6,828)
(6,828)
At 31 December 2023
275,704
55,772
86,922
418,398
SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
8
Property, plant and equipment
Leasehold land and buildings
Fixtures and fittings
IT equipment
Total
£
£
£
£
(Continued)
- 19 -
Accumulated depreciation and impairment
At 4 November 2022
-
0
-
0
-
0
-
0
Charge for the period
76,584
24,531
26,673
127,788
Eliminated on disposal
-
0
-
0
(1,639)
(1,639)
At 31 December 2023
76,584
24,531
25,034
126,149
Carrying amount
At 31 December 2023
199,120
31,241
61,888
292,249
9
Trade and other receivables
2023
£
VAT recoverable
133,449
Amounts owed by fellow group undertakings
3,945,947
Prepayments
33,807
4,113,203
10
Trade and other payables
2023
£
Trade payables
283,829
Amounts owed to fellow group undertakings
1,212,691
Accruals
2,116,400
Social security and other taxation
63,731
3,676,651
11
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
425,215

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
12
Share capital
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary share of £1 each
1
1
13
Financial instruments
(a) Classes and catergories of financial instruments
The carrying amounts presented in the statements of financial position related to the following categories of financial assets and financial liabilities are as follow:
2023
£
Carrying amount of financial assets measured at amortised cost
: Amount owed by group undertakings
3,945,947
: Other receivables
133,449
: Cash and cash equivalents
53,322
4,132,718
Carrying amount of financial liabilities measured at amortised cost
: Trade payables
283,829
: Amounts owed to group undertakings
1,212,691
: Other financial liabilities
2,180,131
3,676,651
There are no financial assets and financial liabilities that are measured at fair value.
SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
13
Financial instruments
(Continued)
- 21 -
(b) Financial risk management
The company is exposed to financial risks through its use of financial instruments in its ordinary course of operations. The financial risks include market risk (including currency risk, interest risk and price risk), credit risk and liquidity risk.
The company currently does not have any written risk management policies and guidelines. However the director works closely with the key management to analyse and formulate strategies to manage and monitor financial risk. The company has not used any derivatives or other financial instruments for hedging and speculative purposes. The most significant financial risks to which the company is exposed to are described below.
(i) Credit risk
The company does not have significant exposure to credit risk, as it primarily engages in transactions within the group, where robust credit policies and procedures are in place. These measures ensure that all receivables are collected in a timely manner, maintaining financial stability and minimizing the risk of bad debts.
(ii) Liquidity risk
The company does not face significant liquidity risk, as robust funding arrangements have been established within the group. These arrangements ensure that sufficient cash flow is available to meet operational needs and obligations, thereby maintaining financial stability and enabling the company to focus on its strategic objectives without liquidity concerns.
The table below summarises the maturity profile of the company's financial liabilities based on contractual undiscounted payments:
Year ended 31 December 2023
Within 1 year
2 - 5 years
Over 5 years
Non-derivatives financial liabilities
£
£
£
: Trade and other payables
2,463,960
-
-
: Amounts owed to group undertakings
1,212,691
-
-
3,676,651
-
-
SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
13
Financial instruments
(Continued)
- 22 -
(iii) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and security prices. The notes below explain the company's exposure to market risk and how these risks could affect the company's future financial performance.
(iv) Foreign exchange risk
The company's activity is mainly in British Pounds with some transactions made in Euros primarily with Group companies. As a result, the company's future cash flows arising from these transactions can be affected by movements in exchange rates. No hedging activity is undertaken to mitigate the risk as it is not considered significant.
(v) Interest rate risk
The company does not have any exposure to interest rate risk, as interest-free funding arrangements have been established within the group. This ensures financial stability and predictability, allowing the company to focus on its core operations without the uncertainty of fluctuating interest rates.
(vi) Price risk
The company has no investment in equity securities. Therefore it is not exposed to price risk.
(c) Capital risk management
The company's objectives when managing capital are to safeguard the company's ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the company may return capital to shareholders, issue new shares, or sell assets to reduce debt.

The company has defined their objectives, policies or processes for managing capital during the period ended 31 December 2023.
14
Related party transactions
Remuneration of key management personnel

There is no remuneration of key management personnel.

2023
£
Termination benefits
350,000

During the period, the company paid termination benefits amounting to £350,000 to the Group CFO.

SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
14
Related party transactions
(Continued)
- 23 -
Other transactions with related parties

During the period the company entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2023
2023
£
£
£
£
Other related parties
-
-
387,564
-
Services provided
Services received
2023
2023
£
£
Other related parties
14,423,109
588,772

Ultimate controlling party

 

The immediate parent company of Superbet Services Limited is SB GROUP LTD, company registered in Cyprus.

 

The ultimate controlling party is SB Lux Topco S.A.R.L., company registered in Luxembourg.

 

The smallest and largest group in which the accounts are consolidated are those of the ultimate parent company. Copies of the consolidated financial statements can be obtained from the SB Lux Topco S.A.R.L. 6, rue Eugène Ruppert, L-2453 Luxembourg.

 

The transactions entered with related parties during the period end have been disclosed in the respective notes.

 

Sales of services to related parties are conducted at the company’s standard transfer pricing, which includes a 7% markup on the expenses incurred. Purchases from related parties are made at market prices, with discounts applied to reflect the quantity of goods purchased and the nature of the relationships between the parties.

The following amounts were outstanding at the reporting end date:

2023
Amounts due to related parties
£
Other related parties
1,212,691

These amounts are repayable on demand, not secured against any collateral and does not charge interest.

SUPERBET SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
14
Related party transactions
(Continued)
- 24 -

The following amounts were outstanding at the reporting end date:

2023
Amounts due from related parties
£
Other related parties
3,945,947

All the related parties are subsidiary companies of SB Lux Topco S.A.R.L.

15
Cash generated from/(absorbed by) operations
2023
£
Profit for the period before income tax
913,658
Adjustments for:
Loss on disposal of property, plant and equipment
1,040
Depreciation and impairment of property, plant and equipment
127,788
Movements in working capital:
Increase in trade and other receivables
(4,113,203)
Increase in trade and other payables
3,676,651
Cash generated from/(absorbed by) operations
605,934
16
Analysis of changes in net funds
4 November 2022
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
-
53,322
53,322
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