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Registration number: 05030696

Go Karting For Fun Limited

Annual Report and Financial Statements

for the Year Ended 30 June 2024

 

Go Karting For Fun Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 23

 

Go Karting For Fun Limited

Company Information

Directors

D Gaynor

D J Wilkinson

S A Wooldridge

Registered office

C1, Endeavour Place
Coxbridge Business Park
Alton Road
Farnham
Surrey
GU10 5EH

Bankers

Lloyds Bank PLC
18 Prince of Wales Walk
Camberley
Surrey
GU15 3SJ

National Westminster Bank PLC
216 Bishopsgate
London
EC2M 3UR

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Go Karting For Fun Limited

Strategic Report for the Year Ended 30 June 2024

The directors present their strategic report for the year ended 30 June 2024.

Principal activity

The principal activity of the company is managing and operating indoor go karting tracks.

Fair review of the business

The results for the year, which are set out in the profit and loss account, show turnover of £60,655,601 (2023 - £55,627,486) and an operating profit of £6,447,936 (2023 - £8,437,177). At 30 June 2024, the company had total assets less current liabilities of £34,877,315 (2023 - £24,588,199). In addition, we held cash of £9,605,446 (2023 - £13,185,242).

As noted in the Chairman’s statement of Luigi Topco Limited, the ultimate parent company, this has been a phenomenal year, that has seen the business hit a series of key milestones.

Balance sheet strength

We entered the year with cash of £13,185,242. With strong trading, we finish the year with cash of £9,605,446.

Given our strong cash position our committed Revolving Facility is undrawn, giving us an additional £2.2 million of liquidity.

People engagement 'Great place to work'

We have continued to focus on all areas of crew engagement throughout the last year which has helped us again to be voted one of the Best Large Companies to work for in the UK. This is key to our employee retention. Our average length of service stands at just under five and a half years (Dec 2023), which for a leisure operator we feel is enviable.

Staff retention is key, as this deep experience ensures we can operate safely. We see a continued improvement in accident rates, despite more rigorous reporting, ensuring that we live true to our key Mission, to deliver ‘safe, unique, and exciting experiences’.

Our focus on having and diverse and inclusive culture has also led to us being voted one of the Best Companies to Work For Women, published in Elle Magazine in August 2023. We were also voted as one of the Best Companies for Wellbeing in the UK, thanks to our focus on Crew welfare, giving them access to wellbeing support and education.

Growth strategy

We now operate 34 tracks and see significant opportunity for growth. We expect to open at least three sites in this financial year. We are currently on site constructing a new site in High Wycombe in the central Eden Shopping centre. This is an exciting high footfall location that we hope to open in October 2024. We will also be onsite later this year at a new site in Bournemouth, as well as at Brent Cross shopping centre, where we hope to be open before Christmas. We have a number of other exciting sites that we hope to announce very soon.

In addition, we are investing in the continued refurbishment of our existing estate. In March we reopened our Liverpool track following a 3-month refurbishment, which has seen the site transformed. We have similar plans for our site in Birmingham this year.

We continue to invest in our non-karting revenue, in particular in food and beverage where we have seen significant growth. We now have a really high-quality offer which is resonating with our customers.
In the year we also saw a new partnership with Sixies Cricket, an innovative tech enabled opportunity to bat against the world’s best! It is early days, but we see significant opportunity to include this fun, adrenaline fuelled concept across the UK.

 

Go Karting For Fun Limited

Strategic Report for the Year Ended 30 June 2024

ESG

The year marked a milestone for us as continued to focus on our glide path of achieving Net Zero by 2030, having become Carbon Neutral some years ago.

In the year we passed the milestone of more than 50% of our tracks being electric (across the wider Group), and we are now at 60% electric. This is a huge improvement on where we stood just three to four years ago.

We continue to focus on reducing our energy consumption, and our impact on the environment. To this end we have created a new role within our Operations team, of which a priority is a renewed focus on energy reduction, with key targets being set for this year.

We have also focused on improving our governance. In the year we updated our policy for Corporate Criminal Offence and put in new controls to ensure we continue to operate to the very highest standards.
 

Outlook

We are performing in line with our expectations, despite the headwinds that have hit both businesses and consumers alike across Europe. The European Championships in July, and the increase in foreign travel this year, impacted large swathes of the leisure market, but with the return to school we continue to see positive like for like revenue growth, giving us confidence for the year ahead.


Future developments
We expect to deliver robust performance over the next 12 months. Our focus on financial performance is critical to our management of the business, and our Marketing resource is deployed to ensure we react to any softening in consumer spending.

Despite rising interest rates, which we are pleased to have seen start to reduce in recent months, our re-positioning of the business and even greater focus on premiumisation has resulted in continued strong trading performance. In addition, the development of our food and beverage offering, and investment in new ancillary options, continues to improve our customer dwell time and with it spend per driver.
 

Key performance indicators

The group uses several indicators to monitor and improve development, performance, and the position of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments.

The Directors do not consider the inclusion of an analysis using performance indicators to be necessary to assist users of the financial statements in their understanding of the financial performance, as the key indicator is earnings before interest, tax, amortisation, and depreciation, which is shown in the financial statements. In addition, we constantly focus on short- and medium-term cash.

We monitor web traffic, a key source of customer bookings, as well as conversion rates etc daily. We also monitor our reputation scores on a track-by-track basis. This measures how our customers are rating their experience with us. This is the key to our success.

We also monitor our employee satisfaction, striving for year-on-year improvement. We are a customer facing business, and the engagement of our Crew is key to this.
 

Principal risks and uncertainties

The group uses financial instruments as part of its financial risk management. Although not considered a major risk, the nature of its financial instruments means that they are subject to normal trading risk and liquidity risks.

Financial instruments

The company uses financial instruments as part of its financial risk management. Although not considered a major risk, the nature of its financial instruments means that they are subject to normal trading risk and liquidity risks from the covenants in operation over the outstanding debt.

 

Go Karting For Fun Limited

Strategic Report for the Year Ended 30 June 2024

Going concern

In accordance with the Financial Reporting Council's Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009' the Directors of all companies are now required to provide disclosures regarding the going concern basis of accounting.

We produce detailed short term cash flows to monitor our cash spend, ensuring that we maintain appropriate levels of cash. We also monitor our performance daily, ensuring that on a monthly basis we consider the validity of current forecasts. Where necessary we will redeploy capital to ensure the security of our business.

The Directors believe that the Company has sufficient financial resources available to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Approved by the Board on 31 October 2024 and signed on its behalf by:


D J Wilkinson
Director

 

Go Karting For Fun Limited

Directors' Report for the Year Ended 30 June 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Directors of the company

The directors who held office during the year were as follows:

D Gaynor

D J Wilkinson

S A Wooldridge

Employment of disabled persons

The company's policy is to consider the recruitment of disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, where possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

The company's selection, training, development and promotion policies ensure equal opportunities for all colleagues regardless of factors such as gender, marital status, race, age, sexual preference and orientation, colour, creed, ethnic origin, religion or belief, disability or trade union affiliation. All of our decisions are based on merit.

S172 statement

The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The Group has considered the long-term strategy of the business in the strategic report and consider that this strategy will continue to deliver long term success to the business and it’s stakeholders.

The Company is committed to maintaining an excellent reputation and strives to achieve high standards. We are highly selective about which suppliers are used to deliver best value while maintaining an awareness of the environmental impact of the work that they do and strive to reduce their carbon footprint.

The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the company are considered to be the employees, suppliers and customers.

In ensuring that all our stakeholders are considered as part of every decision process we believe we act fairly between all members of the Company.


Streamlined energy and carbon reporting
The Directors have presented the energy and carbon report in the ultimate parent Luigi Topco Limited and these financial statements may be obtained from Companies House.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 31 October 2024 and signed on its behalf by:


D J Wilkinson
Director

 

Go Karting For Fun Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

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

 

Go Karting For Fun Limited

Independent Auditor's Report to the Members of Go Karting For Fun Limited

Opinion

We have audited the financial statements of Go Karting For Fun Limited (the 'company') for the year ended 30 June 2024, which comprise the Profit and Loss Account, Balance Sheet, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

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

We have nothing to report in this regard.

 

Go Karting For Fun Limited

Independent Auditor's Report to the Members of Go Karting For Fun Limited

Opinion on other matters prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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.

Extent to which the audit was capable of detecting irregularities, including fraud

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

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

Go Karting For Fun Limited

Independent Auditor's Report to the Members of Go Karting For Fun Limited

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at 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.





James Morter (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

31 October 2024

 

Go Karting For Fun Limited

Profit and Loss Account for the Year Ended 30 June 2024

Note

2024
 £

2023
 £

Turnover

3

60,655,601

55,627,486

Cost of sales

 

(22,054,748)

(20,586,120)

Other operating income

4

373,873

163,175

Gross profit

 

38,974,726

35,204,541

Administrative expenses

 

(26,067,802)

(23,170,288)

Operating profit before amortisation, depreciation and exceptional items

5

12,906,924

12,034,253

Amortisation expense

 

(404,954)

(417,014)

Depreciation and impairment expense

 

(5,548,090)

(4,486,881)

Administrative expenses - exceptional

6

(505,944)

(41,481)

Other operating income - exceptional

6

-

1,348,300

Operating profit

 

6,447,936

8,437,177

Other interest receivable and similar income

935,837

-

Interest payable and similar charges

7

(558,008)

(820,908)

Profit before tax

 

6,825,765

7,616,269

Taxation

11

(2,274,624)

(869,145)

Profit for the financial year

 

4,551,141

6,747,124

The above results were derived from continuing operations.

 

Go Karting For Fun Limited

(Registration number: 05030696)
Balance Sheet as at 30 June 2024

Note

2024
 £

2023
 £

Fixed assets

 

Intangible assets

12

1,391,366

1,667,407

Tangible assets

13

26,056,030

20,657,950

 

27,447,396

22,325,357

Current assets

 

Stocks

14

1,476,226

1,246,320

Debtors

15

26,085,417

17,972,265

Cash at bank and in hand

 

9,605,446

13,185,242

 

37,167,089

32,403,827

Creditors: Amounts falling due within one year

16

(28,801,333)

(30,140,985)

Net current assets

 

8,365,756

2,262,842

Total assets less current liabilities

 

35,813,152

24,588,199

Space

Creditors: Amounts falling due after more than one year

16

8,853,701

5,312,278

Provisions for liabilities

11

3,824,318

1,549,694

 

12,678,019

6,861,972

Capital and reserves

 

Called up share capital

18

1,000

1,000

Other reserves

857,765

503,622

Profit and loss account

22,276,368

17,221,605

Total equity

 

23,135,133

17,726,227

Total capital, reserves and long term liabilities

 

35,813,152

24,588,199

Approved and authorised by the Board on 31 October 2024 and signed on its behalf by:
 


D J Wilkinson
Director

 

Go Karting For Fun Limited

Statement of Changes in Equity for the Year Ended 30 June 2024

Share capital
£

Capital contribution reserve
£

Profit and loss account
£

Total
£

At 1 July 2023

1,000

503,622

17,221,605

17,726,227

Profit for the year

-

-

4,551,141

4,551,141

Capital contribution from parent undertaking

-

857,765

-

857,765

Transfers

-

(503,622)

503,622

-

At 30 June 2024

1,000

857,765

22,276,368

23,135,133

Share capital
£

Capital contribution reserve
£

Profit and loss account
£

Total
£

At 1 July 2022

1,000

799,308

9,675,173

10,475,481

Profit for the year

-

-

6,747,124

6,747,124

Capital contribution from parent undertaking

-

503,622

-

503,622

Transfers

-

(799,308)

799,308

-

At 30 June 2023

1,000

503,622

17,221,605

17,726,227

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
C1, Endeavour Place
Coxbridge Business Park
Alton Road
Farnham
Surrey
GU10 5EH

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemptions

As a qualifying entity, the Company has taken advantage of the following disclosure exemptions from FRS 102:
- the requirements to prepare a cash flow statement; and
- the requirements in relation to financial instruments of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26 (in relation to those cross-referenced paragraphs from which a disclosure exemption is available), 12.27, 12.29(a), 12.29(b), and 12.29A, where equivalent disclosure is given in consolidated financial statements..

Name of parent of group

These financial statements are consolidated in the financial statements of Luigi Topco Limited.

The financial statements of Luigi Topco Limited may be obtained from Companies House.

Going concern

As noted in the Directors Report, after reviewing the group's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements

Fair value on financing loan from other group undertakings
The company has the benefit of an unsecured interest free financing loan from one of its parent companies. The fair value of this loan has been calculated using a 10% discount rate which is derived from the interest rate on other unsecured debt within the group headed by Luigi Topco Limited.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets is stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold property

Over the life of the lease or 10 years

Plant and machinery

Over 3 or 6 years

Motor vehicles

Over 3 or 4 years

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Development costs are recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Straight line over 10 years

Software development

Straight line over 3 years

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All debtors are repayable within one year and are hence included at the undiscounted amount of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

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

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.


 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets:
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Financial assets:
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Rendering of services

56,743,440

52,387,281

Other revenue

3,260,959

2,877,100

Management charges

651,202

363,105

60,655,601

55,627,486

Other revenue is derived from expired liabilities, insurance receipts and other sales.

The company's turnover derives entirely from sales in the United Kingdom.

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

 

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Other operating income (direct)

373,873

163,175

Other operating income in the current year relates to Fast Forward grant funding. In the prior year it relates Fast Forward, and Kickstart grant funding.

 

5

Operating profit

Arrived at after charging/(crediting):

2024
 £

2023
 £

Depreciation and impairment expense

5,548,090

4,486,881

Amortisation expense

404,954

417,014

Foreign exchange losses/(gains)

1,299

(117,911)

Operating lease expense - property

6,621,456

6,307,273

Operating lease expense - other

146,248

100,013

Exceptional gain on replacement of tangible fixed assets

-

(1,348,300)

 

6

Exceptional items

2024
 £

2023
 £

Exceptional administrative expenses

505,944

41,481

Exceptional income

-

(1,348,300)

 

505,944

(1,306,819)

Exceptional administrative expenses in the current year relate to one off prior year tax adjustments, recruitment costs and other small non-recurring costs, while the prior year costs related predominately to recruitment costs and small non-recurring costs.

Exceptional income in the prior year related to the exceptional gain arising directly as a result of the replacement of tangible fixed assets damaged or destroyed by the fire which broke out at the Company's Preston track on 15 August 2021.

 

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

4,956

-

Interest expense on other finance liabilities

553,052

820,908

558,008

820,908

The above interest expense relates to the notional interest calculated on the unwinding of the discount applied to the long term loan due from group undertakings as described in note 16. This has no cash impact to the company.

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

 

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
 £

2023
 £

Wages and salaries

19,377,280

17,247,115

Social security costs

1,498,700

1,251,311

Pension costs, defined contribution scheme

267,017

228,050

21,142,997

18,726,476

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
 No.

2023
 No.

Operations

1,043

951

Administration and support

123

119

1,166

1,070

 

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

629,035

790,288

Contributions paid to money purchase schemes

15,091

14,690

644,126

804,978

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2024
£

2023
£

Remuneration

239,310

318,397

Company contributions to money purchase pension schemes

1,321

10,000

 

10

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

44,400

40,900

Other fees to auditors

All other non-audit services

35,600

23,550

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

 

11

Taxation

Tax charged in the profit and loss account

2024
 £

2023
 £

Current taxation

UK corporation tax adjustment to prior periods

-

52,823

Total current income tax

-

52,823

Deferred taxation

Arising from origination and reversal of timing differences

2,274,624

792,637

Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods

-

23,685

Total deferred taxation

2,274,624

816,322

Tax expense in the income statement

2,274,624

869,145

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 20.5%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

6,825,765

7,616,269

Corporation tax at standard rate

1,706,441

1,561,335

Effect of revenues exempt from taxation

-

(206,715)

Effect of expense not deductible in determining taxable profit (tax loss)

10,686

42,791

UK deferred tax expense relating to changes in tax rates or laws

401,636

142,675

Decrease from effect of tax incentives

-

(106,359)

Deferred tax expense from unrecognised temporary difference from a prior period

-

23,685

Increase in UK and foreign current tax from adjustment for prior periods

66,781

52,823

Tax increase from effect of capital allowances and depreciation

212,574

315,911

Tax decrease arising from group relief

(123,494)

(914,604)

Other tax effects for reconciliation between accounting profit and tax expense (income)

-

(42,397)

Total tax charge

2,274,624

869,145

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

3,830,033

Other short term timing differences

(5,715)

3,824,318

2023

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

1,554,103

Other short term timing differences

(4,409)

1,549,694

 

12

Intangible assets

Goodwill
 £

Software development costs
 £

Total
£

Cost

At 1 July 2023

4,756,346

584,859

5,341,205

Additions

-

128,913

128,913

At 30 June 2024

4,756,346

713,772

5,470,118

Amortisation

At 1 July 2023

3,298,665

375,133

3,673,798

Amortisation charge

275,099

129,855

404,954

At 30 June 2024

3,573,764

504,988

4,078,752

Carrying amount

At 30 June 2024

1,182,582

208,784

1,391,366

At 30 June 2023

1,457,681

209,726

1,667,407

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

 

13

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 July 2023

29,666,194

15,397,601

148,774

45,212,569

Additions

4,264,135

6,667,612

14,423

10,946,170

Disposals

-

(1,333,880)

-

(1,333,880)

At 30 June 2024

33,930,329

20,731,333

163,197

54,824,859

Depreciation

At 1 July 2023

14,777,870

9,427,963

106,507

24,312,340

Charge for the year

3,047,182

2,717,455

25,732

5,790,369

Eliminated on disposal

-

(1,333,880)

-

(1,333,880)

At 30 June 2024

17,825,052

10,811,538

132,239

28,768,829

Carrying amount

At 30 June 2024

16,105,277

9,919,795

30,958

26,056,030

At 30 June 2023

14,646,045

5,969,638

42,267

20,657,950

 

14

Stocks

2024
£

2023
£

Stocks

1,476,226

1,246,320

 

15

Debtors

2024
 £

2023
 £

Trade debtors

81,808

145,071

Amounts owed by group undertakings

19,990,215

11,111,666

Other debtors

1,577,958

3,013,395

Prepayments

4,435,436

3,702,133

26,085,417

17,972,265

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

 

16

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Trade creditors

 

5,846,783

5,724,879

Amounts owed to group undertakings

 

11,383,734

11,323,556

Social security and other taxes

 

1,324,216

1,099,559

Outstanding defined contribution pension costs

 

57,821

59,349

Other creditors

 

2,392,878

3,504,163

Accrued expenses

 

7,729,344

8,429,479

Corporation tax liability

 

66,557

-

 

28,801,333

30,140,985

Due after one year

 

Other creditors

 

276,054

276,054

Amounts owed to group undertakings

 

8,577,647

5,036,224

 

8,853,701

5,312,278

The amounts due to group undertakings which are due after one year and have a net present value of £8,577,647 (2023 - £5,036,224) have been discounted at 10% which is based on the cost of capital of the wider group. The balance requires 12 months notice before settlement and has no other fixed repayment terms.

Other creditors due after more than one year relates to the straight-lining of leases with stepped lease costs over the term of the respective lease periods.

 

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £267,017 (2023 - £228,050).

Contributions totalling £57,821 (2023 - £59,349) were payable to the scheme at the end of the year and are included in creditors.

 

18

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

         

Share rights

The shares have attached to them full voting, dividend and capital distribution rights (including on winding up). They do not confer any right of redemption.

 

Go Karting For Fun Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

 

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

4,506,378

5,136,556

Later than one year and not later than five years

11,510,321

14,985,871

Later than five years

3,302,061

4,645,215

19,318,760

24,767,642

The amount of non-cancellable operating lease payments recognised as an expense during the year was £6,767,704 (2023 - £6,407,286).

 

20

Commitments

Capital commitments

The Company has contracted to undertake various petrol kart replacements, refurbishments, purchasing of new carts, electrification and rebrand of various sites in support of the various sites core functions as well as expansion of certain existing sites operations or offerings. These costs have not been provided for as work on these projects has not yet started.

The total amount contracted for but not provided in the financial statements was £6,127,853 (2023 - £5,512,018).

 

21

Contingent liabilities

The company is party to a cross guarantee arrangement with other group companies totalling £106,236,054 (2023 - £88,974,492).

 

22

Parent and ultimate parent undertaking

The company's immediate parent is Teamsport Racing Limited, incorporated in England and Wales.

 The ultimate parent is Luigi Topco Limited, incorporated in England and Wales.