Company registration number 05612444 (England and Wales)
BETTING SHOP OPERATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 APRIL 2024
BETTING SHOP OPERATIONS LIMITED
COMPANY INFORMATION
Director
G R Knight
Secretary
V E Knight
Company number
05612444
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 OPERATIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
BETTING SHOP OPERATIONS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 28 APRIL 2024
- 1 -

The director presents the strategic report for the period ended 28 April 2024.

Review of the business

The company continued to trade strongly in all key revenue streams during 23/24.

There were increases in Over the Counter (OTC) stakes during the year and significant increases in stakes for both Self Service Betting Terminals (SSBTs) and Fixed Odds Betting Terminals (FOBTs) resulted in a Gross Gaming Yield (GGY) of £30.67m in 23/24 compared with £25.245m in 22/23.

Administrative expenses increased by £2.26 million (15.8%) during the year, primarily due to an increase in overall number of shops in the period in comparison to 2023. The company also carried out a number of smaller refurbishments to further enhance the overall customer experience.

 

Key Performance Indicators

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

 

 

2024

2023

 

Gross Gaming Yield

£30,675,670

£25,245,443

Gross profit

£23,757,445

£19,523,282

Gross profit (%)

77.4%

77.3%

Future developments

The Director is confident that retail betting will continue to grow, with more customers looking to enjoy the company’s offering in a shop based environment. As always, the company will continue to look for opportunities to expand the estate nationwide through a mixture of organic growth & acquisition.

BETTING SHOP OPERATIONS 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 Company's strategy are subject to a number of risks. The principal risks are as follows:

Gaming and Regulatory Risk


The company 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 company 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 company's trading income and operating cash flows are not directly linked to changes or movements in interest rates. The company primarily finances its operations through a variety of borrowing facilities in the group. The loan borrowings are denominated in sterling and 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 company are produced regularly and are reviewed in detail to ensure that sufficient headroom exists for at least the forthcoming twelve month period.

 

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.

On behalf of the board

G R Knight
Director
31 January 2025
BETTING SHOP OPERATIONS LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 28 APRIL 2024
- 3 -

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

Principal activities

The principal activity of the company is the provision of betting services.

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
Results and dividends

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

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

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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

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

Matters covered in the 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 with Companies Act 2006, s. 414C(11).

Statement of disclosure to auditor
So far as the director is aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the director 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 company's auditors are aware of that information.
BETTING SHOP OPERATIONS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 4 -
On behalf of the board
G R Knight
Director
31 January 2025
BETTING SHOP OPERATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BETTING SHOP OPERATIONS LIMITED
- 5 -
Opinion

We have audited the financial statements of Betting Shop Operations Limited (the 'company') for the period ended 28 April 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

BETTING SHOP OPERATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF BETTING SHOP OPERATIONS LIMITED
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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, and 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 OPERATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF BETTING SHOP OPERATIONS LIMITED
- 7 -

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 member 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 member those matters we are required to state to the member 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 member, 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
Aldgate Tower
2 Leman Street
London
E1 8FA
BETTING SHOP OPERATIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 28 APRIL 2024
- 8 -
52 weeks
52 weeks
ended
ended
28 April
30 April
2024
2023
Notes
£
£
Turnover
3
30,675,670
25,245,443
Cost of sales
(6,918,225)
(5,722,161)
Gross profit
23,757,445
19,523,282
Administrative expenses
(16,519,899)
(14,260,276)
Other operating income
297,808
278,954
Operating profit
4
7,535,354
5,541,960
Interest receivable and similar income
7
1,639
-
0
Interest payable and similar expenses
8
(178)
-
0
Profit before taxation
7,536,815
5,541,960
Tax on profit
9
758,389
6,677
Profit for the financial period
8,295,204
5,548,637

The income statement has been prepared on the basis that all operations are continuing operations.

BETTING SHOP OPERATIONS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
28 APRIL 2024
28 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
1,924,516
2,643,765
Other intangible assets
10
2,707
3,829
Total intangible assets
1,927,223
2,647,594
Tangible assets
11
3,160,102
3,045,743
5,087,325
5,693,337
Current assets
Debtors
12
11,935,232
2,327,041
Cash at bank and in hand
1,083,785
569,345
13,019,017
2,896,386
Creditors: amounts falling due within one year
13
(3,312,350)
(1,528,873)
Net current assets
9,706,667
1,367,513
Total assets less current liabilities
14,793,992
7,060,850
Creditors: amounts falling due after more than one year
14
-
0
(640,462)
Provisions for liabilities
Provisions
15
138,500
60,100
(138,500)
(60,100)
Net assets
14,655,492
6,360,288
Capital and reserves
Called up share capital
17
1,000
1,000
Profit and loss reserves
18
14,654,492
6,359,288
Total equity
14,655,492
6,360,288
The financial statements were approved and signed by the director and authorised for issue on 31 January 2025
G R Knight
Director
Company Registration No. 05612444
BETTING SHOP OPERATIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 APRIL 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 2 May 2022
1,000
810,651
811,651
Period ended 30 April 2023:
Profit and total comprehensive income for the period
-
5,548,637
5,548,637
Balance at 30 April 2023
1,000
6,359,288
6,360,288
Period ended 28 April 2024:
Profit and total comprehensive income for the period
-
8,295,204
8,295,204
Balance at 28 April 2024
1,000
14,654,492
14,655,492
BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 APRIL 2024
- 11 -
1
Accounting policies
Company information

Betting Shop Operations Limited is a company limited by shares incorporated in England and Wales. The registered office is 4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of Betting Shop Services Limited. These consolidated financial statements are available from its registered office, 4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU.

 

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company 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.

1.3
Turnover

Turnover is the amount derived from ordinary activities and represents customers' stakes less amounts won by customers in respect of bookmaking transactions, including fixed odds betting terminals and profit shares receivable and stated after trade discounts and sales taxes. Turnover is recognised when the bet is placed and the pay-out is netted off against turnover and is recognised when the customer claims the winning bet from the cashier.

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.

1.4
Intangible fixed assets - goodwill

Goodwill is the difference between amounts paid on the acquisition of a shop and the fair value of the identifiable assets and liabilities. It is amortised on a straight line basis over the length of the lease. An additional amortisation charge is recognised if the projected contribution from an individual shop is lower than the carrying value based on amortisation over the lease term. When this is the case, an additional amortisation charge is recognised to reduce the carrying value of goodwill to the projected contribution. This adjusted carrying value is then amortised on a straight line basis over the remaining term of the lease.

BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.5
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
1.6
Tangible fixed assets

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

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

Land and buildings Leasehold
Over the length of the lease
Plant and machinery
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 credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company 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.

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

 

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

1.8
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.

BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

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 company 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 company after deducting all of its liabilities.

BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

 

Intercompany balances

Intercompany balances incur no interest and are repayable on demand.

1.10
Equity instruments

Equity instruments issued by the company 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 company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
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.

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.

1.13
Leases

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

BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Intangible fixed assets

Accounting for intangible fixed assets involves the use of estimates and judgements for determining the useful lives over which these are amortised, and the existence and amount of any impairment.

 

Intangible assets are depreciated and amortised on a straight line basis over their estimated useful lives and taking into account their expected residual values. When the Company estimates useful lives, various factors are considered including the expected usage of the asset.

 

The director regularly reviews these asset lives and change them as necessary to reflect the estimated current remaining lives in light of technological changes, future economic utilisation and physical condition of the assets concerned. A significant change in asset lives can have a significant change on amortisation charges for the period.

 

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 Company. 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 provision

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.

3
Turnover

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

2024
2023
£
£
Turnover analysed by class of business
Gross amounts wagered
153,317,058
136,079,961
Less amounts paid on winning bets
(122,641,388)
(110,834,518)
30,675,670
25,245,443

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

BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the period is stated after charging:
£
£
Exchange losses
475
1,267
Depreciation of owned tangible fixed assets
992,495
734,421
Loss on disposal of tangible fixed assets
5,413
2,029
Amortisation of intangible assets
703,111
567,785
Loss on disposal of intangible assets
367,260
-
Operating lease charges
1,840,504
1,688,748
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 company
53,840
24,000
6
Employees

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

2024
2023
Number
Number
Directors
1
1
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
1,639
-
0
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
178
-
0

Interest payable and similar charges included total interest expense calculated using the effective interest method for financing transactions.

BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 18 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
491,611
-
0
Adjustments in respect of prior periods
-
0
(6,677)
Total current tax
491,611
(6,677)
Deferred tax
Origination and reversal of timing differences
(1,250,000)
-
0
Total tax credit
(758,389)
(6,677)
2024
2023
£
£
Profit before taxation
7,536,815
5,541,960
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,884,204
1,052,972
Tax effect of expenses that are not deductible in determining taxable profit
43,644
19,602
Gains not taxable
74,221
-
0
Tax effect of utilisation of tax losses not previously recognised
(1,250,000)
-
0
Unutilised tax losses carried forward
(1,665,064)
(947,397)
Adjustments in respect of prior years
(201)
(6,677)
Group relief
-
0
(43,147)
Permanent capital allowances in excess of depreciation
(270,037)
(321,102)
Depreciation on assets not qualifying for tax allowances
248,124
139,540
Amortisation on assets not qualifying for tax allowances
175,778
107,879
Adjustments in respect of financial assets
(17,225)
(9,720)
(Profit)/ Loss on the disposal of Fixed Assets
93,167
86
Other income
(75,000)
1,287
Taxation credit for the period
(758,389)
(6,677)

The company has tax losses of £10,499,239 carried forwards which can be utilised against certain future profits arising. Please refer to the deferred tax note for further information.

BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 19 -
10
Intangible fixed assets
Goodwill
Licences
Total
£
£
£
Cost
At 1 May 2023
3,294,009
9,287
3,303,296
Additions
350,000
-
0
350,000
Disposals
(391,422)
-
0
(391,422)
At 28 April 2024
3,252,587
9,287
3,261,874
Amortisation and impairment
At 1 May 2023
650,244
5,458
655,702
Amortisation charged for the period
701,989
1,122
703,111
Disposals
(24,162)
-
0
(24,162)
At 28 April 2024
1,328,071
6,580
1,334,651
Carrying amount
At 28 April 2024
1,924,516
2,707
1,927,223
At 30 April 2023
2,643,765
3,829
2,647,594
11
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Total
£
£
£
Cost
At 1 May 2023
2,792,805
1,811,472
4,604,277
Additions
609,887
502,381
1,112,268
Disposals
(15,736)
-
0
(15,736)
At 28 April 2024
3,386,956
2,313,853
5,700,809
Depreciation and impairment
At 1 May 2023
1,030,705
527,829
1,558,534
Depreciation charged in the period
588,855
403,640
992,495
Eliminated in respect of disposals
(10,322)
-
0
(10,322)
At 28 April 2024
1,609,238
931,469
2,540,707
Carrying amount
At 28 April 2024
1,777,718
1,382,384
3,160,102
At 30 April 2023
1,762,100
1,283,643
3,045,743
BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 20 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
20,109
21,648
Other debtors
328,240
296,491
Prepayments and accrued income
298,520
505,199
646,869
823,338
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
10,038,363
1,503,703
Deferred tax asset (note 16)
1,250,000
-
0
11,288,363
1,503,703
Total debtors
11,935,232
2,327,041
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
444,087
320,980
Corporation tax
491,812
-
0
Other taxation and social security
9,926
-
0
Other creditors
209,106
20,510
Accruals and deferred income
2,157,419
1,187,383
3,312,350
1,528,873
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Amounts owed to group undertakings
-
0
640,462
15
Provisions for liabilities
2024
2023
£
£
Dilapidations and onerous leases
138,500
60,100

Included in provisions are £112,500 (2023: £nil) in respect of dilapidations provisions and £26,000 (2023: £60,100) for onerous leases.

BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
15
Provisions for liabilities
(Continued)
- 21 -
Movements on provisions:
Dilapidations and onerous leases
£
At 1 May 2023
60,100
Additional provisions in the year
100,000
Utilisation of provision
(21,600)
At 28 April 2024
138,500
16
Deferred taxation

Deferred tax assets and liabilities are offset where the 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
Balances:
£
£
Tax losses
1,250,000
-
2024
Movements in the period:
£
Liability at 1 May 2023
-
Credit to profit or loss
(1,250,000)
Asset at 28 April 2024
(1,250,000)

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 recognised as a deferred tax asset as of the balance sheet date.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
BETTING SHOP OPERATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 APRIL 2024
- 22 -
18
Reserves
Profit and loss reserves

Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.

19
Financial commitments, guarantees and contingent liabilities

The company has a cross guarantee with its 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: £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.

20
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
1,493,131
1,139,776
Between two and five years
4,189,528
2,825,938
In over five years
3,333,456
1,656,718
9,016,115
5,622,432
21
Related party transactions

The company has taken advantage of the exemptions from disclosure available to subsidiary undertakings under section 33 of FRS 102 in connection with the intra group transactions.

22
Ultimate controlling party

The ultimate parent company is Betting Shop Services Limited.

 

The largest and smallest group of undertakings for which group accounts have been drawn up is that headed by Betting Shop Services Limited. Copies of the accounts can be obtained from its registered office, 4 Simon Campion Court, 232-234 High Street, Epping, Essex, CM16 4AU.

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

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