Company registration number 05310821 (England and Wales)
BETTING SHOP SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 APRIL 2024
BETTING SHOP SERVICES LIMITED
COMPANY INFORMATION
Director
G R Knight
Secretary
V E Knight
Company number
05310821
Registered office
4 Simon Campion Court
232-234 High Street
Epping
Essex
CM16 4AU
Auditor
Gravita Audit II Limited
Aldgate Tower
2 Leman Street
London
E1 8FA
BETTING SHOP SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 36
BETTING SHOP SERVICES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 28 APRIL 2024
- 1 -

The director presents his strategic report and financial statements for the period ended 28 April 2024.

Fair Review of the Business and KPI's

Following the acquisitions in the 22/23 period, the Group concentrated on consolidation and integration of its operations in 23/24 and invested further in the rebranding and refurbishment of the newly acquired Megabet estate. A smaller acquisition of 3 betting shops from Jem Racing was completed in Jan’24, and 2 new shops were also opened in Bishops Stortford and Caledonian Road during the year. The Group also closed 2 shops in the period, bringing the total number operating within the Group to 141 at the end of the year.

The Group continued its brand awareness campaign, including major terrestrial television horserace sponsorship, greyhound stadia sponsorship and televised Darts tournaments.

 

Management monitor the business performance through the use of financial indicators, primarily gross gaming yield and gross profit levels:

 

 

2024

2023

 

Gross Gaming Yield

£71,584,918

£56,581,143

Gross profit

£54,899,214

£43,265,939

Gross profit (%)

76.7%

76.4%

The Group’s Gross Gambling Yield (GGY) rose from £56.58m in 22/23 to £71.58m in 23/24 (+26.5%) largely due to the Megabet estate, now trading for a full year within the Group, achieving an increased GGY of £17.2m in 23/24 compared with £9.6m for part year in 22/23 (+79%). Other Group members also saw significant increases in GGY of £5.4m (+21%) & £2m (+9%). Consequently, Shop net contribution rose from £17.42m in 22/23 to £22.47m in 23/24 (+29%).

The uplift in the number of branches and revenues was partly offset by a significant increase in operating costs including rent & rates, utility costs & wages.

 

Future Developments and Post Balance Sheet Events

Following a period of consolidation in 23/24, an opportunity arose for further growth at the start of 24/25, and in May’24 the Group acquired Mark Jarvis Ltd, a licensed betting operation with 40 betting shops in and around the East Midlands. This acquisition was partly funded by a new £12m bank loan (5 year period). The Group also intends to open a small number of organic stores during the year and continues to look for further opportunities to expand nationwide.

 

In July 2024, the Group made the decision to repay £3m in respect of third party loans.

BETTING SHOP SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 2 -
Principal risks and uncertainties

The management of the business and the execution of the group's strategy are subject to a number of risks. The principal risks are as follows:

Gaming and Regulatory Risk

The Group is exposed to varying degrees of earnings volatility primarily due to the uncertainty inherent in bookmaking. Wherever possible this risk is limited by clear policies on the size of individual bets taken and the aggregate potential exposure to any one particular result through sophisticated back office systems which allow management to constantly monitor liabilities and also through the use of various hedging as deemed appropriate by the director. The Group is also subject to regulatory restrictions imposed on it by the Government and to changes in specific taxation provisions particular to the bookmaking industry.

Interest Rate Risk

The Group's trading income and operating cash flows are not directly linked to changes or movements in interest rates. The Group primarily finances its operations through a variety of borrowing facilities and the Group's loan borrowings are denominated in sterling. The loans are borrowed principally at floating interest rates.

Liquidity Risk

Liquidity is the risk that cash may not be available to pay obligations when they fall due. Cash forecasts identifying the liquidity requirements of the Group are produced regularly and are reviewed in detail to ensure that sufficient headroom exists for at least the forthcoming twelve month period.

 

Financing Risk

The Group has significant liabilities with external entities. The Group's ability to continue operations is based on the assumption that these loans will not be recalled. The director maintains contact with the lenders on a regular basis.

 

Going Concern Risk

The director has noted that the core revenue streams continue to remain popular and is confident that the company is well positioned for the future.

Promoting the success of the company

Section 172 of the Companies Act 2006 requires the director to take into consideration the interests of stakeholders and other matters in their decision making.

 

When making decisions throughout the year the director continues to have regard to the interests of the groups employees and other key stakeholders, including the impact of its activities on the community, the environment and the groups reputation, for good business conduct, when making decisions.

 

In this context, acting in good faith and fairly, the director considers what is most likely to promote the success of the company in the long term. We explain below how the director engages with its key stakeholders:

 

Employees:

The group circulates on a regular basis information of interest to all members of staff. The company continues to promote a positive health and safety culture for all staff members.

 

Customers:

The group values its customers highly and considers delivering a safe gambling experience to its customers as its highest priority.

 

Suppliers:

The group value and foster strong business relationships and recognise that it is essential for the continued success and reputation of the business to maintain positive relationships with suppliers. The group carries out due diligence on all new suppliers.

 

During the year, other than as referred to as above, there have been no significant discussions with stakeholders.

BETTING SHOP SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 3 -

On behalf of the board

G R Knight
Director
31 January 2025
BETTING SHOP SERVICES LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 28 APRIL 2024
- 4 -

The director presents his annual report and financial statements for the period ended 28 April 2024.

Principal activities

The principal activity of the group continued to be provision of betting services.

Results and dividends

The results for the period are set out on page 9.

The director does not recommend payment of a dividend (2023: £nil).

Director

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

G R Knight
Disabled persons

It is the group's policy to give full and fair consideration to applications for employment made by disabled persons, and to continue, wherever possible, the employment of staff who become disabled and to provide equal opportunities for the training and career development of disabled employees.

Employee involvement

The group employed an average of 598 people (2023: 420) during the period, most of whom were engaged in the provision of betting services.

 

It is the group's policy to treat its employees without discrimination and to operate equal opportunity and employment practices designed to achieve this.

 

The group has an open and honest working environment and offers challenging, well rewarded jobs to its employees. The group also invests in its employees' training and development.

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

BETTING SHOP SERVICES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 5 -
Strategic report

The business review, principal risk and uncertainties, future developments and information on financial risk management objectives and policies are contained in the Strategic Report in accordance truewith Companies Act 2006, s. 414C(11).

Statement of disclosure to auditor

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

On behalf of the board
G R Knight
Director
31 January 2025
BETTING SHOP SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BETTING SHOP SERVICES LIMITED
- 6 -
Opinion

We have audited the financial statements of Betting Shop Services Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 28 April 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 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:

BETTING SHOP SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BETTING SHOP SERVICES LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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 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 and 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 either intends 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.

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of the betting industry. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation, data protection, anti-bribery, anti-money-laundering legislations, The Gambling Act 2005, The UK Gambling Commission, Licence Conditions and Codes of Practice. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

BETTING SHOP SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BETTING SHOP SERVICES LIMITED
- 8 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 

 

To address the risk of fraud through management bias and override of controls, we: 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 

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.

Luke Metson (Senior Statutory Auditor)
For and on behalf of Gravita Audit II Limited
31 January 2025
Chartered Accountants
Statutory Auditor
BETTING SHOP SERVICES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 28 APRIL 2024
- 9 -
52 weeks
52 weeks
ended
ended
28 April
30 April
2024
2023
Notes
£
£
Turnover
3
71,584,918
56,581,143
Cost of sales
(16,685,704)
(13,315,204)
Gross profit
54,899,214
43,265,939
Administrative expenses
(44,906,531)
(36,591,527)
Other operating income
391,863
1,211,126
Exceptional items
33,615
(682,912)
Operating profit
4
10,418,161
7,202,626
Interest receivable and similar income
8
227,662
16,878
Interest payable and similar expenses
9
(1,106,009)
(879,596)
Profit before taxation
9,539,814
6,339,908
Tax on profit
10
144,714
(186,694)
Profit for the financial period
24
9,684,528
6,153,214
Profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.
BETTING SHOP SERVICES LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 28 APRIL 2024
28 April 2024
- 10 -
28 April 2024
30 April 2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
12,798,291
14,911,404
Other intangible assets
11
3,584
5,013
Total intangible assets
12,801,875
14,916,417
Tangible assets
12
8,742,148
7,762,047
21,544,023
22,678,464
Current assets
Debtors
15
6,670,928
2,071,100
Cash at bank and in hand
11,161,847
9,415,634
17,832,775
11,486,734
Creditors: amounts falling due within one year
16
(15,526,934)
(13,490,984)
Net current assets/(liabilities)
2,305,841
(2,004,250)
Total assets less current liabilities
23,849,864
20,674,214
Creditors: amounts falling due after more than one year
17
(8,545,933)
(15,305,979)
Provisions for liabilities
Provisions
20
531,500
280,332
(531,500)
(280,332)
Net assets
14,772,431
5,087,903
Capital and reserves
Called up share capital
23
100,001
100,001
Share premium account
24
47,594,855
47,594,855
Profit and loss reserves
24
(32,922,425)
(42,606,953)
Total equity
14,772,431
5,087,903
The financial statements were approved and signed by the director and authorised for issue on 31 January 2025
31 January 2025
G R Knight
Director
Company registration number 05310821 (England and Wales)
BETTING SHOP SERVICES LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 28 APRIL 2024
28 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
498,987
562,107
Investments
13
16,327,156
16,327,156
16,826,143
16,889,263
Current assets
Debtors falling due after more than one year
15
4,247,049
420,951
Debtors falling due within one year
15
99,703
5,002
Cash at bank and in hand
8,425,008
6,932,301
12,771,760
7,358,254
Creditors: amounts falling due within one year
16
(7,072,367)
(7,062,522)
Net current assets
5,699,393
295,732
Total assets less current liabilities
22,525,536
17,184,995
Creditors: amounts falling due after more than one year
17
(29,898,007)
(23,676,939)
Net liabilities
(7,372,471)
(6,491,944)
Capital and reserves
Called up share capital
23
100,001
100,001
Share premium account
24
47,594,855
47,594,855
Profit and loss reserves
24
(55,067,327)
(54,186,800)
Total equity
(7,372,471)
(6,491,944)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £880,527 (2023 - £1,644,911 loss).

The financial statements were approved and signed by the director and authorised for issue on 31 January 2025
31 January 2025
G R Knight
Director
Company Registration No. 05310821
BETTING SHOP SERVICES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 APRIL 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 2 May 2022
100,001
47,594,855
(48,760,167)
(1,065,311)
Period ended 30 April 2023:
Profit and total comprehensive income for the period
-
-
6,153,214
6,153,214
Balance at 30 April 2023
100,001
47,594,855
(42,606,953)
5,087,903
Period ended 28 April 2024:
Profit and total comprehensive income for the period
-
-
9,684,528
9,684,528
Balance at 28 April 2024
100,001
47,594,855
(32,922,425)
14,772,431
BETTING SHOP SERVICES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 APRIL 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 2 May 2022
100,001
47,594,855
(52,541,889)
(4,847,033)
Period ended 30 April 2023:
Loss and total comprehensive income for the period
-
-
(1,644,911)
(1,644,911)
Balance at 30 April 2023
100,001
47,594,855
(54,186,800)
(6,491,944)
Period ended 28 April 2024:
Profit and total comprehensive income
-
-
(880,527)
(880,527)
Balance at 28 April 2024
100,001
47,594,855
(55,067,327)
(7,372,471)
BETTING SHOP SERVICES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
10,965,121
9,601,749
Interest paid
(1,106,009)
(879,596)
Income taxes paid
(213,696)
(102,781)
Net cash inflow from operating activities
9,645,416
8,619,372
Investing activities
Purchase of business
-
(10,649,806)
Purchase of intangible assets
(350,000)
-
Purchase of tangible fixed assets
(3,301,831)
(3,744,190)
Proceeds on disposal of tangible fixed assets
143,021
31,373
Interest received
227,662
16,878
Net cash used in investing activities
(3,281,148)
(14,345,745)
Financing activities
Repayment of Deferred consideration
-
(879,282)
Repayment of borrowings
(3,214,001)
(3,029,999)
Proceeds of new bank loans
-
6,000,000
Repayment of bank loans
(1,381,134)
(470,116)
Payment of finance leases obligations
(22,918)
775,188
Net cash (used in)/generated from financing activities
(4,618,053)
2,395,791
Net increase/(decrease) in cash and cash equivalents
1,746,215
(3,330,582)
Cash and cash equivalents at beginning of period
9,415,632
12,746,214
Cash and cash equivalents at end of period
11,161,847
9,415,632
Relating to:
Cash at bank and in hand
11,161,847
9,415,634
Bank overdrafts included in creditors payable within one year
-
(2)
BETTING SHOP SERVICES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 APRIL 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
6,837,841
6,314,744
Interest paid
(974,435)
(792,650)
Income taxes (paid)/refunded
(1)
1
Net cash inflow from operating activities
5,863,405
5,522,095
Investing activities
Purchase of subsidiaries
-
0
(12,427,481)
Interest received
224,435
16,532
Net cash generated from/(used in) investing activities
224,435
(12,410,949)
Financing activities
Repayment of borrowings
(3,214,001)
(3,029,999)
Repayment of bank loans
(1,381,132)
5,529,882
Net cash (used in)/generated from financing activities
(4,595,133)
2,499,883
Net increase/(decrease) in cash and cash equivalents
1,492,707
(4,388,971)
Cash and cash equivalents at beginning of period
6,932,301
11,321,272
Cash and cash equivalents at end of period
8,425,008
6,932,301
BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 APRIL 2024
- 16 -
1
Accounting policies
Company information

Betting Shop Services Limited (“the Company”) is a private company limited by shares domiciled and incorporated in England & Wales. The registered office is 4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU.

 

The group consists of Betting Shop Services Limited and all of its subsidiaries, as listed in note 15.

1.1
Accounting convention

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £880,527 (2023 - £1,644,911 loss).

1.2
Basis of consolidation

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

 

All financial statements are made up to 28 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

1.3
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

 

The directors are aware of certain circumstances which may cause doubt on the parent company ability to continue as a going concern, namely that at the reporting date the company had net liability position of £7,372,471 and incurred loss for the period end of £880,527. The company is the holding company of a large group which has significant cash and reserves. As such the directors have prepared the company accounts on a going concern basis, as the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.4
Turnover - rendering of services

Turnover is the amount derived from ordinary activities and represents customers' stakes less amounts won by customers in respect of bookmaking transactions, including fixed odd betting terminals and profit shares receivable. Turnover is recognised when the bet is placed and the pay-out is netted off against turnover and is recognised when the customer wins their bet.

Interest income is recognised as interest accrues using the effective interest method, and is shown including related fees, finance charges paid or received and associated transaction costs.

1.5
Intangible fixed assets - goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised on a straight line basis over the length of the lease. Goodwill arising on consolidation is amortised over its estimated economic life of 20 years.

1.6
Intangible fixed assets other than goodwill

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

 

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

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

Licences
over the length of the licence
1.7
Tangible fixed assets

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

 

The asset's residual lives and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change in accounted for prospectively.

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

Land and buildings Freehold
2% reducing balance on building
Land and buildings Leasehold
over the length of the lease
Plant and machinery
3-5 years (straight line)
Motor vehicles
3-5 years (straight line)

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

1.8
Fixed asset investments

Equity instruments which are measured at fair value through profit or loss, which are not publicly traded and whose fair value cannot otherwise be measured reliably, are recognised at cost less impairment. The assets residual lives and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

 

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

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 18 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

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

 

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

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.

1.10
Cash and cash equivalents

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

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
Other financial assets

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

 

Intercompany balances

Intercompany balances incur no interest and are repayable on demand.

1.12
Equity instruments

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

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between treatment of certain items for taxation and accounting purposes. Deferred tax balances are not discounted.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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.

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
1.16
Retirement benefits

The group companies operate a defined contribution plan for its employees. A defined contribution plan under which they pay fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. Payments to the defined contribution retirement benefit scheme are charged as an expense as they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the group companies in independently administered funds.

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

 

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

 

Rental payable under operating leases are charged against income on a straight line basis over the lease term.

 

 

2
Judgements and key sources of estimation uncertainty

In the application of the group’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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

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

Impairment of investment in subsidiaries

Investment in subsidiaries are assessed for impairment at each reporting date by evaluating whether indicators of impairment exist in relation to the value of the subsidiary. If an indicator of impairment exists the recoverable amount of the asset is determined, and any impairment loss recognised in the profit or loss.

Impairment of intangible assets and goodwill

All assets are assessed for impairment at each reporting date by evaluating whether indicators of impairment exist in relation to the continued use of the asset by the Group. If an indicator of impairment exists the recoverable amount of the asset is determined, and any impairment loss recognised in the profit or loss.

Bad debt provisions

Management perform regular reviews of the outstanding trade and other receivables and where there is sufficient doubt surrounding its recoverability, they exercise judgement in providing for the balance in part or full.

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
3
Turnover

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Gross bets taken
359,768,912
298,506,593
Less payout
(288,183,994)
(241,925,450)
71,584,918
56,581,143

The total turnover of the Group for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

4
Operating profit
2024
2023
£
£
Operating profit for the period is stated after charging:
Exchange losses
1,047
1,267
Depreciation of owned tangible fixed assets
2,130,348
1,519,294
Loss on disposal of tangible fixed assets
48,361
419,783
Amortisation of intangible assets
2,097,282
1,468,531
Loss on disposal of intangible assets
367,260
-
Operating lease charges
3,905,271
3,226,952
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
57,250
58,900
Audit of the financial statements of the company's subsidiaries
128,055
67,780
185,305
126,680
BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 23 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
1
8
1
1
Head office
41
36
-
-
Shop staff
555
376
-
-
Total
597
420
1
1

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
14,343,005
11,313,223
-
0
-
0
Social security costs
1,201,884
1,292,058
-
-
Pension costs
279,064
331,795
-
0
-
0
15,823,953
12,937,076
-
0
-
0

The cost of employees' services in the period has been borne by Jennings Racing Limited a subsidiary entity.

7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
300,000
306,435
Company pension contributions to defined contribution schemes
-
881
300,000
307,316
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
300,000
306,435
Company pension contributions to defined contribution schemes
-
881

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023: 1).

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 24 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
50,016
16,878
Other interest income
177,646
-
Total income
227,662
16,878
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
853,213
626,168
Other interest on financial liabilities
-
60
Interest on finance leases and hire purchase contracts
131,396
86,886
Other interest
121,400
166,482
Total finance costs
1,106,009
879,596
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,105,286
193,371
Adjustments in respect of prior periods
-
0
(6,677)
Total current tax
1,105,286
186,694
Deferred tax
Origination and reversal of timing differences
(1,250,000)
-
0
Total tax (credit)/charge
(144,714)
186,694
BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
10
Taxation
(Continued)
- 25 -

The actual (credit)/charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
9,539,814
6,339,908
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
2,384,954
1,204,583
Tax effect of expenses that are not deductible in determining taxable profit
47,554
105,110
Tax effect of income not taxable in determining taxable profit
(79,250)
(141,738)
Gains not taxable
76,218
-
0
Tax effect of utilisation of tax losses not previously recognised
415,064
-
0
Unutilised tax losses carried forward
(2,112,274)
(947,397)
Adjustments in respect of prior years
(402)
(6,677)
Group relief
(2,346)
129,486
Permanent capital allowances in excess of depreciation
(785,245)
(698,847)
Depreciation on assets not qualifying for tax allowances
532,587
139,540
Amortisation on assets not qualifying for tax allowances
218,252
110,526
Adjustments in respect of financial assets
-
0
(9,720)
(Profit)/Loss on disposal of fixed assets
103,906
103,420
Other tax adjustments
306,067
197,035
Capital items expensed
-
0
86
Write off loan participators
-
1,287
CT credit
201
-
Deferred tax asset
(1,250,000)
-
Taxation (credit)/charge
(144,714)
186,694

The Group have tax losses in excess of £10,499,239 million which can be utilised against certain future profits arising. Please refer to the deferred tax note for further information.

 

The Group also have non-trading tax losses of £489,049 carried forward which can be utilised against certain future non-trading profit arising. These have not been recognised due to the uncertainty regarding future non trading profit. These losses may be carried forward indefinitely but have not been recognised as a deferred tax asset as of the balance sheet date.

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 26 -
11
Intangible fixed assets
Group
Goodwill
Licences
Total
£
£
£
Cost
At 1 May 2023
24,733,665
67,574
24,801,239
Additions
350,000
-
0
350,000
Disposals
(391,422)
-
0
(391,422)
At 28 April 2024
24,692,243
67,574
24,759,817
Amortisation and impairment
At 1 May 2023
9,822,261
62,561
9,884,822
Amortisation charged for the period
2,095,853
1,429
2,097,282
Disposals
(24,162)
-
0
(24,162)
At 28 April 2024
11,893,952
63,990
11,957,942
Carrying amount
At 28 April 2024
12,798,291
3,584
12,801,875
At 30 April 2023
14,911,404
5,013
14,916,417
The company had no intangible fixed assets at 28 April 2024 or 30 April 2023.
12
Tangible fixed assets
Group
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
841,260
14,125,949
12,082,061
193,658
27,242,928
Additions
-
0
1,677,127
1,598,611
26,093
3,301,831
Disposals
-
0
(21,172)
(758,445)
-
0
(779,617)
At 28 April 2024
841,260
15,781,904
12,922,227
219,751
29,765,142
Depreciation and impairment
At 1 May 2023
73,334
10,674,996
8,650,262
82,289
19,480,881
Depreciation charged in the period
68,181
1,023,425
1,005,181
33,561
2,130,348
Eliminated in respect of disposals
-
0
(10,479)
(577,756)
-
0
(588,235)
At 28 April 2024
141,515
11,687,942
9,077,687
115,850
21,022,994
Carrying amount
At 28 April 2024
699,745
4,093,962
3,844,540
103,901
8,742,148
At 30 April 2023
767,926
3,450,953
3,431,799
111,369
7,762,047
BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
12
Tangible fixed assets
(Continued)
- 27 -
Company
Land and buildings Freehold
£
Cost
At 1 May 2023 and 28 April 2024
630,300
Depreciation and impairment
At 1 May 2023
68,193
Depreciation charged in the period
63,120
At 28 April 2024
131,313
Carrying amount
At 28 April 2024
498,987
At 30 April 2023
562,107
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
16,327,156
16,327,156
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 28 April 2024
27,045,365
Impairment
At 1 May 2023 and 28 April 2024
10,718,209
Carrying amount
At 28 April 2024
16,327,156
At 30 April 2023
16,327,156
BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 28 -
14
Subsidiaries

Details of the company's subsidiaries at 28 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Betting Shop Operations Limited
4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU
Ordinary
100.00
-
Jennings (SL) Limited
4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU
Ordinary
100.00
-
Jennings Racing (2006) Limited
4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU
Ordinary
100.00
-
Jennings Racing Limited
4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU
Ordinary
100.00
-
Joe Jennings Bookmakers Limited
4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU
Ordinary
100.00
-
Jenningsbet Online Limited *
4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU
Ordinary
100.00
-
Bet 21 Limited *
4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU
Ordinary
100.00
-
Megabet UK Ltd **
4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU
Ordinary
-
100.00

* Companies that are entitled to and have taken advantage of the exemption from audit available under Section 479A of the Companies Act 2006 relating to subsidiary companies. In order for the subsidiary to claim this exemption, the parent Company must guarantee all outstanding liabilities that the subsidiary is subject to at the year end under S479A. Accordingly, the Company guaranteed all outstanding liabilities that these companies were subject to as at 28 April 2024.

 

** Megabet UK Ltd is 100% owned by Bet 21 Limited.

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 29 -
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
20,109
45,945
-
0
-
0
Corporation tax recoverable
20,525
90,068
-
0
-
0
Other debtors
577,593
817,847
5,000
5,002
Prepayments and accrued income
1,013,070
1,117,240
94,703
-
0
1,631,297
2,071,100
99,703
5,002
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
457,418
420,951
Amount owed by related parties
3,789,631
-
0
3,789,631
-
0
3,789,631
-
4,247,049
420,951
Deferred tax asset (note 21)
1,250,000
-
0
-
0
-
0
5,039,631
-
4,247,049
420,951
Total debtors
6,670,928
2,071,100
4,346,752
425,953
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
1,622,358
1,358,681
1,622,358
1,358,679
Obligations under finance leases
19
453,416
361,099
-
0
-
0
Other borrowings
18
5,178,990
3,392,991
5,178,990
3,392,991
Trade creditors
965,108
1,140,933
11,277
3,000
Corporation tax payable
1,000,657
178,610
32,146
1
Other taxation and social security
414,762
384,995
-
72,129
Other creditors
852,028
3,196,239
-
0
2,044,328
Accruals and deferred income
5,039,615
3,477,436
227,596
191,394
15,526,934
13,490,984
7,072,367
7,062,522
BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 30 -
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
6,138,464
7,783,275
6,138,464
7,783,275
Obligations under finance leases
19
516,211
631,446
-
0
-
0
Other borrowings
18
1,891,258
6,891,258
1,891,258
6,891,258
Amounts owed to group undertakings
-
0
-
0
21,868,285
9,002,406
8,545,933
15,305,979
29,898,007
23,676,939
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
7,760,822
9,141,954
7,760,822
9,141,954
Bank overdrafts
-
0
2
-
0
-
0
Other loans
7,070,248
10,284,249
7,070,248
10,284,249
14,831,070
19,426,205
14,831,070
19,426,203
Payable within one year
6,801,348
4,751,672
6,801,348
4,751,670
Payable after one year
8,029,722
14,674,533
8,029,722
14,674,533

Bank and other loans are charged varying interest rates of 0.25% to 5% plus base rate per annum. The length of the loans are also varied with a maximum original term of 6 years and all expected to be repaid by June 2028.

19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
453,416
361,099
-
0
-
0
In two to five years
516,211
631,446
-
0
-
0
969,627
992,545
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 31 -
20
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Dilapidations provision
345,500
73,982
-
-
Onerous contracts
186,000
206,350
-
-
531,500
280,332
-
-
Movements on provisions:
Dilapidations provision
Onerous contracts
Total
Group
£
£
£
At 1 May 2023
73,982
206,350
280,332
Additional provisions in the year
337,500
36,126
373,626
Utilisation of provision
(65,982)
(56,476)
(122,458)
At 28 April 2024
345,500
186,000
531,500
21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2024
2023
Group
£
£
Tax losses
1,250,000
-
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the period:
£
£
Asset at 1 May 2023
-
-
Credit to profit or loss
(1,250,000)
-
Asset at 28 April 2024
(1,250,000)
-
BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
21
Deferred taxation
(Continued)
- 32 -

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. This is based on forecasted profits and historical performance. The deferred tax asset is measured using the tax rate of 25%, which is the rate expected to apply when the losses are utilised.

 

A further £5,499,239 of tax losses have remained unrecognised due to the uncertainty regarding the future profitability. These losses may be carried forward indefinitely but have not been recognized as a deferred tax asset as of the balance sheet date.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
279,064
331,795

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

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.00001p each
222,222
222,222
2
2
Deferred shares of £1 each
99,999
99,999
99,999
99,999
322,221
322,221
100,001
100,001

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. Deferred shares however, are not entitled to dividends, votes or residual assets.

24
Reserves
Share premium

The share premium reserve comprises of share premium on the issues share capital.

Profit and loss reserves

Retained earnings represent accumulated comprehensive income for the period and prior periods less

dividends paid.

 

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 33 -
25
Financial commitments, guarantees and contingent liabilities

The Group has a cross guarantee with the parent company, Betting Shop Services Ltd (BSSL), and fellow subsidiaries in respect of loans from WPG Treasury for indebtedness in Betting Shop Services Limited which at 28 April 2024 amounted to £3,002,692 (2023: to £4,007,522 ), of which £3,000,000 (2023: £4,000,000) is secured by a mortgage and a fixed and floating charge over the assets of the company.

 

The parent company (BSSL) has bank loans which are covered by a cross guarantee with its subsidiaries and secured by a fixed and floating charge over the assets of the company. This charge ranks above the other fixed and floating charges named above.  At the period end the loan balance was £7,760,822 (2023: £9,141,954 ).

 

G R Knight has provided personal guarantees to the parent company’s bankers of £800,000 and £1,200,000.

26
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
2,954,483
2,455,054
-
-
Between two and five years
7,725,221
6,105,756
-
-
In over five years
5,456,790
3,181,813
-
-
16,136,494
11,742,623
-
-
27
Events after the reporting date

In May 2024 the Group acquired the shares in Mark Jarvis Ltd, a licensed betting operation with 40 betting shops in and around the East Midlands. This acquisition was funded by a new £12m bank loan (5 year term) as well as existing Group funds.

 

In July 2024 the Group repaid £3m of its third party loans.

 

28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
300,000
307,315
Transactions with related parties

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

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
28
Related party transactions
(Continued)
- 34 -
Interest receivable
Interest receivable
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
173,231
-
173,231
-

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Director
212,433
392,990
Other related parties
3,993,002
6,017,057

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
3,789,631
-
29
Controlling party

The ultimate controlling party is Gregory Knight by virtue of his shareholding in the parent entity.

BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 35 -
30
Cash generated from group operations
2024
2023
£
£
Profit for the period after tax
9,684,528
6,153,214
Adjustments for:
Taxation (credited)/charged
(144,714)
186,694
Finance costs
1,106,009
879,596
Investment income
(227,662)
(16,878)
Loss on disposal of tangible fixed assets
48,361
419,783
Loss on disposal of intangible assets
367,260
-
Amortisation and impairment of intangible assets
2,097,282
1,468,531
Depreciation and impairment of tangible fixed assets
2,130,348
1,519,294
Increase/(decrease) in provisions
251,168
(910,640)
Movements in working capital:
Decrease in stocks
-
39,903
Increase in debtors
(3,419,369)
(111,392)
Decrease in creditors
(928,090)
(26,356)
Cash generated from operations
10,965,121
9,601,749
31
Cash generated from operations - company
2024
2023
£
£
Loss for the period after tax
(880,527)
(1,644,911)
Adjustments for:
Taxation charged
32,146
-
0
Finance costs
974,435
792,650
Investment income
(224,435)
(16,532)
Depreciation and impairment of tangible fixed assets
63,120
63,030
Movements in working capital:
(Increase)/decrease in debtors
(3,920,799)
272,543
Increase in creditors
10,793,901
6,847,964
Cash generated from operations
6,837,841
6,314,744
BETTING SHOP SERVICES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 36 -
32
Analysis of changes in net debt - group
1 May 2023
Cash flows
28 April 2024
£
£
£
Cash at bank and in hand
9,415,634
1,746,213
11,161,847
Bank overdrafts
(2)
2
-
0
9,415,632
1,746,215
11,161,847
Borrowings excluding overdrafts
(19,426,203)
4,595,133
(14,831,070)
Obligations under finance leases
(992,545)
22,918
(969,627)
(11,003,116)
6,364,266
(4,638,850)
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