Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31true0truetruetrue2023-01-01falsefalse0true 02730742 2023-01-01 2023-12-31 02730742 2023-12-31 02730742 2022-01-01 2022-12-31 02730742 2022-12-31 02730742 2022-01-01 02730742 1 2023-01-01 2023-12-31 02730742 1 2022-01-01 2022-12-31 02730742 6 2023-01-01 2023-12-31 02730742 6 2022-01-01 2022-12-31 02730742 d:CompanySecretary1 2023-01-01 2023-12-31 02730742 d:Director1 2023-01-01 2023-12-31 02730742 d:Director2 2023-01-01 2023-12-31 02730742 d:RegisteredOffice 2023-01-01 2023-12-31 02730742 e:PatentsTrademarksLicencesConcessionsSimilar 2023-01-01 2023-12-31 02730742 e:PatentsTrademarksLicencesConcessionsSimilar 2023-12-31 02730742 e:PatentsTrademarksLicencesConcessionsSimilar 2022-12-31 02730742 e:IntangibleAssetsOtherThanGoodwill 2023-12-31 02730742 e:IntangibleAssetsOtherThanGoodwill 2022-12-31 02730742 e:CurrentFinancialInstruments 2023-12-31 02730742 e:CurrentFinancialInstruments 2022-12-31 02730742 e:Non-currentFinancialInstruments 2023-12-31 02730742 e:Non-currentFinancialInstruments 2022-12-31 02730742 e:Non-currentFinancialInstruments 3 2023-12-31 02730742 e:Non-currentFinancialInstruments 3 2022-12-31 02730742 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 02730742 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 02730742 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 02730742 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 02730742 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 02730742 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 02730742 f:UnitedKingdom 2023-01-01 2023-12-31 02730742 f:UnitedKingdom 2022-01-01 2022-12-31 02730742 f:RestEuropeOutsideUK 2023-01-01 2023-12-31 02730742 f:RestEuropeOutsideUK 2022-01-01 2022-12-31 02730742 e:UKTax 2023-01-01 2023-12-31 02730742 e:UKTax 2022-01-01 2022-12-31 02730742 e:ShareCapital 2023-12-31 02730742 e:ShareCapital 2022-12-31 02730742 e:ShareCapital 2022-01-01 02730742 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02730742 e:RetainedEarningsAccumulatedLosses 2023-12-31 02730742 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 02730742 e:RetainedEarningsAccumulatedLosses 2022-12-31 02730742 e:RetainedEarningsAccumulatedLosses 2022-01-01 02730742 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 02730742 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 02730742 d:OrdinaryShareClass1 2023-01-01 2023-12-31 02730742 d:OrdinaryShareClass1 2023-12-31 02730742 d:OrdinaryShareClass1 2022-12-31 02730742 d:FRS101 2023-01-01 2023-12-31 02730742 d:Audited 2023-01-01 2023-12-31 02730742 d:FullAccounts 2023-01-01 2023-12-31 02730742 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02730742 2 2023-01-01 2023-12-31 02730742 g:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure
Company registration number: 02730742







DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023


OPENBET RETAIL LIMITED






































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OPENBET RETAIL LIMITED
 


 
COMPANY INFORMATION


Directors
A L Ambrose 
J E Levin 




Company secretary
J E Levin



Registered number
02730742



Registered office
Building 6, Chiswick Park
566 Chiswick High Road

London

W4 5HR




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

1st Floor

Midas House

62 Goldsworth Road

Woking

Surrey

GU21 6LQ





 


OPENBET RETAIL LIMITED
 



CONTENTS



Page
Directors' report
1 - 2
Independent auditors' report
3 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20


 


OPENBET RETAIL LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

A L Ambrose 
J E Levin 

Directors' responsibilities statement

The directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company is the supply of hardware, software and support services in relation to display and EPOS systems for the retail betting industry.

Going Concern

The Company has net current assets, excluding deferred tax, of £7,413,790 (2022: £7,342,643). Excluding amounts due to/from related parties, the Company has net current assets of £609,435 (2022: £2,631,553). The Company made a loss after tax of £726,310 (2022: loss £172,895). The Directors have reviewed the forecast and actuals of the Company's activity for a period of at least 12 months from the signing of the Statement of Financial Position. Taking into account the market conditions. the Directors are satisfied that the Company has adequate resources to continue in business for the foreseeable future.
The OpenBet group performs regular cashflow forecasting and as a result is confident the group has adequate cash reserves for the Company to continue as a going concern. Consequently, the financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the company not be unable to continue as a going concern.
The OpenBet group has performed extensive forecasting activity across all its operations and have planned for downturn scenarios through the next 12 months as part of their going concern forecasting. Whilst any downturn would have an impact on profitability, in these scenarios the group remains able to provide this financial support to its subsidiaries.

Page 1

 


OPENBET RETAIL LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

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

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

Auditors

The auditor, Menzies LLP, was appointed as auditor for OpenBet Retail Limited on 2 July 2024 in accordance with section 485 of the Companies Act 2006.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to the members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

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



................................................
J E Levin
Director

Date: 1 October 2024

Page 2

 


OPENBET RETAIL LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OPENBET RETAIL LIMITED

Opinion


We have audited the financial statements of OpenBet Retail Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 3

 


OPENBET RETAIL LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OPENBET RETAIL LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 4

 


OPENBET RETAIL LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OPENBET RETAIL LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:

The Companies Act 2006;
Financial Reporting Standard 101; and
General Data Protection Regulations.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company are complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and 
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
 
Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount;
Timing of revenue recognition;
The use of management override of controls to manipulate results.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 5

 


OPENBET RETAIL LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OPENBET RETAIL LIMITED (CONTINUED)

Use of our report
 

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





Tom Woods FCA (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
1st Floor
Midas House
62 Goldsworth Road
Woking
Surrey
GU21 6LQ

2 October 2024
Page 6

 


OPENBET RETAIL LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Revenue
 4 
1,722,962
2,362,892

Gross profit
  
1,722,962
2,362,892

Administrative expenses
  
(1,694,873)
(2,344,781)

Operating profit
 5 
28,089
18,111

Interest receivable and similar income
 8 
37,108
9,824

Interest payable and similar expenses
 9 
-
(4,336)

Profit before tax
  
65,197
23,599

Tax on profit
 10 
(791,507)
(196,494)

Loss for the financial year
  
(726,310)
(172,895)

Other comprehensive income:
  

Items that will not be reclassified to profit or loss:
  

Total comprehensive income for the year
  
(726,310)
(172,895)

The notes on pages 10 to 20 form part of these financial statements.

Page 7

 


OPENBET RETAIL LIMITED
REGISTERED NUMBER:02730742



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

  

Fixed assets
  

Right-of-use assets
 11 
-
40,588

  
-
40,588

Current assets
  

Debtors: amounts falling due after more than one year
 12 
-
791,508

Debtors: amounts falling due within one year
 12 
8,486,886
6,723,380

Cash at bank and in hand
  
185,796
1,954,340

  
8,672,682
9,469,228

Creditors: amounts falling due within one year
 13 
(1,258,892)
(1,335,077)

Net current assets
  
 
 
7,413,790
 
 
8,134,151

Total assets less current liabilities
  
7,413,790
8,174,739

  

Creditors: amounts falling due after more than one year
 14 
(2,902)
(37,541)

  
7,410,888
8,137,198

  

  

Net assets
  
7,410,888
8,137,198


Capital and reserves
  

Called up share capital 
 16 
10,981,315
10,981,315

Profit and loss account
  
(3,570,427)
(2,844,117)

  
7,410,888
8,137,198


The Company's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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




................................................
J E Levin
Director

Date: 1 October 2024

The notes on pages 10 to 20 form part of these financial statements.

Page 8

 


OPENBET RETAIL LIMITED
 



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
10,981,315
(2,671,222)
8,310,093



Loss for the year
-
(172,895)
(172,895)



At 1 January 2023
10,981,315
(2,844,117)
8,137,198



Loss for the year
-
(726,310)
(726,310)


At 31 December 2023
10,981,315
(3,570,427)
7,410,888


The notes on pages 10 to 20 form part of these financial statements.

Page 9

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

OpenBet Retail Limited (the "Company") is a private company limited by shares incorporated, in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of its registered office is stated on the company information page.
The principal activity of the Company is disclosed in the Director's Report.

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 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

This information is included in the consolidated financial statements of Endeavor Group Holdings Inc as at 31 December 2023 and these financial statements may be obtained from:
https://investor.endeavorco .com/financials /annual-reports/.

 
2.3

Going concern

The Company has net current assets, excluding deferred tax, of £7,413,790 (2022: £7,342,643). Excluding amounts due to/from related parties, the Company has net current assets of £609,435 (2022: £2,631,553). The Company made a loss after tax of £726,310 (2022: loss £172,895). The Directors have reviewed the forecast and actuals of the Company's activity for a period of at least 12 months from the signing of the Statement of Financial Position. Taking into account the market conditions. the Directors are satisfied that the Company has adequate resources to continue in business for the foreseeable future.

Page 10

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:
Determination of performance obligations and timing of transfer of control vary based on the nature of the contract. Contracts can contain multiple promises, including the following: (i) implementation of customised software solution and the associated software licence ii) Support services iii) professional development services.
Software License Revenue Recognition 
Licence fees are recognised once all the relevant acceptance criteria have been met and the performance obligations are deemed to have transferred to the customer. Licences are generally provided up-front on the outset of the contract are therefore recognised as revenue immediately. Where licence fees are for a specific term, or the Company is required to provide further functionality over a specific period, revenue is recognised ratably over the time the functionality is provided to the customer. 
In some instances, the company earns licence revenue calculated as a percentage of the customer's incremental revenues earned from deploying the Company's applications (a revenue-share arrangement). Revenue in such instances is recognised ratably in proportion to the total expected incremental revenues. 
In instances where the Company has obligations to pay a third party under a revenue-share arrangement, consideration is given as to whether to show the revenue and costs gross or net. In making this assessment, the Company considers whether, in substance, it is acting as principal or as agent in the relationship. 
Support and Maintenance and Hardware Rental
Support and Maintenance is generally contracted on an annual basis and revenue is recognised rateably over the period to which it relates. Contracts for Hardware Rental are usually multi-year contracts and revenue is recognised on a straight line basis over the term of the contract. 
Software Development 
Software Development provides customers with enhanced and/or specific functionality in addition to the core licensed products. Where material performance obligations still exist, revenue is deferred until those obligations are satisfied. 
Where the Company is contracted on a "time and materials' basis and no material performance obligations still exist, revenue is recognised as the service is delivered. In the case of fixed price contracts, where the Company is able to make reliable estimates of the costs to complete and no material performance obligations still exist, revenue is recognised according to the percentage of completion as at each balance sheet date, calculated by reference to costs incurred and expected to be incurred. Where costs to complete cannot be reliably estimated, revenue is deferred until such time as they can. 
Professional Services 
Professional Services (e.g. consulting, project management and training) are generally provided alongside Software Development. Where the Company is contracted on a 'time and materials' basis and no material performance obligations still exist, revenue is recognised as the service is delivered. In the case of fixed price contracts, where the Company is able to make reliable estimates of the costs to complete and no material performance obligations still exist, revenue is recognised according to the percentage of completion as at each balance sheet date, calculated by reference to costs incurred and expected to be incurred. Where costs to complete cannot be reliably estimated, revenue is deferred until such time as they can. 
Installation and Hardware Sales
Revenue in respect of Installation and Hardware Sales is recognised on installation and delivery.


Page 11

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.5

Taxation

The tax expense for the year comprises current tax and deferred tax. 
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income 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 by the statement of financial position 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 the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. 
The carrying amount of deferred tax assets is reviewed at each balance sheet 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 based on tax laws and rates that have been enacted or substantively enacted at the balance sheet date. 
Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.

 
2.6

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

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.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss 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 capital instrument.

Page 12

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.9

Right-of-use assets

A right-of-use asset  is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable:

Any lease payments made at or before the commencement date net of any lease incentives received; 
Any initial direct costs incurred;
Impairment in respect of onerous leases, and; 
Dilapidation provisions to be incurred for restoring the site or asset back to its original position. 

The Company elects not to recognise right of use assets and corresponding liabilities for short-term leases with terms of twelve months or less, and low value leases. Lease payments on these assets are expensed on a straight-line basis to the profit and loss account.

 
2.10

Lease liabilities

A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using a discount rate. 
Lease payments are formed of either fixed payments as stipulated within the lease agreement or variable lease payments as stipulated by the lease agreement if dependent on an index or a rate. Variable lease payments that do not depend on an index or rate are expensed in the period in which they are incurred directly to the profit and loss account.

 
2.11

Trade receivables

Trade receivables are amounts due from customers for merchandise sold or services performed in he ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.

The company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets are grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The company has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets.

 
2.12

Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 13

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with FRS101 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. In the application of the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors 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 year in which the estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both the current and future years. Excluding the below, no significant accounting judgements or estimates were required in the preparation of the financial statements.
 

Key Accounting Judgements: Non-Recognition of Deferred Tax Asset: 
 
Under IAS12, the recognition of deferred tax asset is contingent upon the availability of future taxable profits against which the temporary timing differences can be utilised. In making the assessment, the directors have determined that although there is a positive outlook, there is uncertainty around the timing and realisation of future profits. 
 
As a result, the Directors have decided not to recognise a deferred tax asset of £1,984,725 (2022 - £1,193,618) in the financial statements for the year ended 31 December 2023. 
 
The judgement will be reviewed on an ongoing basis, and if future taxable profits become more probable, the recognition of the deferred tax asset will be reconsidered in accordance with IAS12 requirements. 

4.


Revenue

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


2023
2022
£
£

Rendering of services
1,722,962
2,362,892

1,722,962
2,362,892


Analysis of revenue by country of destination:

2023
2022
£
£

United Kingdom
1,622,632
2,282,512

Rest of Europe
100,330
80,380

1,722,962
2,362,892


2023
2022
£
£



Current contract asset relating to license fees
337,500
562,500

Imputed interest on contractual asset
(19,854)
(40,801)

317,646
521,699

Page 14

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
-
28,783

Depreciation of right of use assets
-
95,499

Amortisation of intangible assets
-
84,634

Exchange differences
194
(17,381)


6.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
34,200
-


No fees disclosed in the comparative figures as they were included within the parents audit fees. 





7.


Employees

The Company has no employees. The Directors were paid by other companies within Endeavor Group Holdings Inc. It is not possible to determine the element of their remuneration which relates solely to their services of Directors of the Company


8.


Interest receivable

2023
2022
£
£


Other interest receivable
37,108
9,824

37,108
9,824


9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
-
4,336

-
4,336

Page 15

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
196,494


-
196,494


Total current tax
-
196,494

Deferred tax


Derecognition of tax
791,507
-

Total deferred tax
791,507
-


Tax on profit
791,507
196,494

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 on ordinary activities before tax
65,197
23,599


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
15,334
4,484

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(6,456)
58,565

Movements in deferred tax due to increase in tax rate
-
38,134

Adjustments to tax charge in respect of prior periods
-
37,601

Derecognition of deferred tax
791,507
-

Group relief
147,265
57,710

Utilisation of unrecognised deferred tax
(156,143)
-

Total tax charge for the year
791,507
196,494


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 16

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)

Global minimum top-up tax:
In December 2022, the Organization for Economic Co-operation and Development ("OECD") proposed Global Anti-Base Erosion Rules, which provides for changes to numerous long-standing tax principles including the adoption of a global minimum tax rate of 15% for multinational enterprises ("GloBE rules"). The UK has enacted legislation to adopt GloBe rules which will come into effect from 1 January 2024, therefore there is no current tax impact for the year ended 31 December 2023. The Company not expecting to pay material top-up taxes in the future and the management is not currently aware of any circumstances under which this might change. The Company has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred. 


11.


Right of use asset




Right of use asset

£





At 1 January 2023
41,330


Disposals
(41,330)



At 31 December 2023

-





At 1 January 2023
742


On disposals
(742)



At 31 December 2023

-



Net book value



At 31 December 2023
-



At 31 December 2022
40,588




Page 17

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Debtors

2023
2022
£
£

Due after more than one year

Deferred tax asset
-
791,508

-
791,508


2023
2022
£
£

Due within one year

Trade debtors
130,130
245,782

Amounts owed by group undertakings
7,993,692
5,900,427

Prepayments and accrued income
363,064
577,171

8,486,886
6,723,380



13.


Creditors: Amounts falling due within one year

2023
2022
£
£

Amounts owed to group undertakings
1,189,337
1,189,337

Other taxation and social security
11,881
110,931

Other creditors
-
3,062

Accruals and deferred income
57,674
31,747

1,258,892
1,335,077



14.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Lease liabilities
-
37,541

Deferred income
2,902
-

2,902
37,541


Page 18

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Deferred taxation




2023


£






At beginning of year
791,507


Charged to profit or loss
(791,507)



At end of year
-

2023
2022
£
£


Accelerated capital allowances
-
791,508

-
791,508


16.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



10,981,315 (2022 - 10,981,315) Ordinary shares of £1.00 each
10,981,315
10,981,315



17.


Reserves

Profit and loss account

The profit and loss account reserve represents cumulative profits and losses.

Page 19

 


OPENBET RETAIL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.

Related party transactions

The Company's transactions are balances with related parties during the year ended and as 31 December 2023.

Statement of 
comprehensive income
 
Income/
(expense)
2023
Statement of financial position (due to)/due from
2023
Statement of comprehensive income
 
Income/
(expense)
2022
Statement of financial position (due to)/due from 2022
        £
        £
        £
        £
OpenBet Limited

(1,684,999)

7,944,698

(2,128,472)
 
7,944,698
 
NYX Digital Gaming (USA) LLC

-

48,994

-
 
48,994
 
OpenBet Technologies Limited

-

(1,189,337)

-
 
(1,189,337)
 

(1,684,999)

6,804,355

(2,128,472)
 
6,804,355
 


19.


Controlling party

The Company is a wholly owned subsidiary of OpenBet Technologies Limited which is incorporated in the United Kingdom and registered in England and Wales. OpenBet Technologies Limited is also the immediate parent undertaking for the Company.
The ultimate parent and controlling party of the Company is Endeavor Group Holdings Inc, which is also the smallest and largest group required to prepare group consolidated financial statements.
Copies of the financial statements of Endeavor Group Holdings Inc. can be obtained from:
https://investor.endeavorco .com/financials /annual-reports

 
Page 20