Company registration number 11135021 (England and Wales)
VELOCE ESPORTS LIMITED GROUP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
VELOCE ESPORTS LIMITED GROUP
COMPANY INFORMATION
Directors
Mr J A Clarke
Mr J W MacLaurin
Mr T Reddy
Mr R J Svendsen-Cook
Mr D Bailey
Mr D Eales
Mr A Webb
Company number
11135021
Registered office
58a Bronsart Road
Fulham
London
SW6 6AA
Auditor
Riches & Company
34 Anyards Road
Cobham
Surrey
KT11 2LA
VELOCE ESPORTS LIMITED GROUP
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Group income statement
6
Group statement of financial position
8 - 9
Group statement of changes in equity
10
Group statement of cash flows
11
Notes to the group financial statements
12 - 27
Parent company statement of financial position
28 - 29
Parent company statement of changes in equity
30
Parent company statement of cash flows
31
Notes to the parent company financial statements
32 - 36
VELOCE ESPORTS LIMITED GROUP
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Principal activities

The principal activity of the group continued to be that of esports activities within the racing space.

Results and dividends

The results for the year are set out on page 6.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr J A Clarke
Mr J W MacLaurin
Mr T Reddy
Mr R J Svendsen-Cook
Mr D Bailey
Mr D Eales
Mr A Webb
Supplier payment policy

The group's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The group's current policy concerning the payment of trade creditors is to:

Auditor

The auditor, Riches & Company, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

 

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

Small companies exemption

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

 

The company is entitled to exemption from audit under the provisions of section 477 of the Companies Act 2006 for the year ended 31st June 2024, as it meets the criteria for a small company.

 

However, the members have not taken advantage of this exemption and have requested that an audit be carried out in accordance with section 476 of the Companies Act 2006.

VELOCE ESPORTS LIMITED GROUP
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
On behalf of the board
Mr D Bailey
Director
28 March 2025
VELOCE ESPORTS LIMITED GROUP
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors acknowledge their responsibilities under the Companies Act 2006 for preparing the annual 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 group and parent company financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

 

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.

VELOCE ESPORTS LIMITED GROUP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VELOCE ESPORTS LIMITED GROUP
- 4 -
Opinion

We have audited the financial statements of Veloce Esports Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 30 June 2024 which comprise the group income statement, the group and parent company statement of financial position, the group and parent company statement of changes in equity, the group and parent company statement of cash flows and the group and parent company notes to the financial statements, including significant accounting policies.

 

The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:

VELOCE ESPORTS LIMITED GROUP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VELOCE ESPORTS LIMITED GROUP
- 5 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

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

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Richard Bolton (Senior Statutory Auditor)
For and on behalf of Riches & Company, Statutory Auditor
Chartered Accountants
34 Anyards Road
Cobham
Surrey
KT11 2LA
28 March 2025
VELOCE ESPORTS LIMITED GROUP
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
2024
2023
Notes
£
£
Revenue
2
12,803,439
5,060,504
Cost of sales
(6,719,464)
(4,015,100)
Gross profit
6,083,975
1,045,404
Other operating income
96,532
99,988
Research and development expenses
(1,024,548)
(2,528,947)
Administrative expenses
(2,944,575)
(2,449,201)
Racing expenses
(1,355,402)
(945,645)
Operating profit/(loss)
3
855,982
(4,778,401)
Share of results of associates
(156,357)
(27,464)
Finance costs
6
(258,100)
(143,790)
Profit/(loss) before taxation
441,525
(4,949,655)
Income tax expense/(income)
7
(86,172)
623,850
Profit/(loss) and total comprehensive income for the year
355,353
(4,325,805)
Profit for the financial year is attributable to:
- Owners of the parent company
384,855
(4,168,732)
- Non-controlling interests
(29,502)
(157,073)
355,353
(4,325,805)
EBITDA Calculation
Profit (Loss) before taxation
441,525
(4,949,655)
Interest payable
258,100
143,790
Depreciation
151,326
148,398
Adjusted EBITDA
850,951
(4,657,467)
VELOCE ESPORTS LIMITED GROUP
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
£
£
Profit/(loss) for the year
355,353
(4,325,805)
Other comprehensive income:
-
0
-
0
Total comprehensive income for the year
355,353
(4,325,805)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
384,855
(4,168,732)
- Non-controlling interests
(29,502)
(157,073)
355,353
(4,325,805)
VELOCE ESPORTS LIMITED GROUP
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
Non-current assets
Goodwill
8
3,533,883
3,539,407
Intangible assets
8
101,774
87,928
Property, plant and equipment
9
182,235
291,597
Investments
10
15,464
171,821
3,833,356
4,090,753
Current assets
Trade and other receivables
13
986,064
1,302,334
Current tax recoverable
292,661
1,037,018
Cash and cash equivalents
96,051
221,703
1,374,776
2,561,055
Current liabilities
Trade and other payables
16
3,152,693
5,821,085
Current tax liabilities
1,012
-
0
Borrowings
15
10,000
10,000
Lease liabilities
17
98,999
95,191
Deferred revenue
19
538,026
863,308
3,800,730
6,789,584
Net current liabilities
(2,425,954)
(4,228,529)
Non-current liabilities
Borrowings
15
10,833
20,833
Lease liabilities
17
24,990
123,989
Deferred tax liabilities
18
16,316
17,492
52,139
162,314
Net assets/(liabilities)
1,355,263
(300,090)
Equity
Called up share capital
21
316
308
Share premium account
22
12,308,862
11,008,870
Retained earnings
(10,230,827)
(10,615,682)
Equity attributable to owners of the parent company
2,078,351
393,496
Non-controlling interests
(723,088)
(693,586)
Total equity
1,355,263
(300,090)
VELOCE ESPORTS LIMITED GROUP
GROUP STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
30 JUNE 2024
30 June 2024
- 9 -

These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
Mr D Bailey
Director
Company registration number 11135021 (England and Wales)
VELOCE ESPORTS LIMITED GROUP
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Share premium account
Retained earnings
Total
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 July 2022
308
11,008,870
(6,446,950)
4,562,228
(536,513)
4,025,715
Year ended 30 June 2023:
Loss and total comprehensive income
-
-
(4,168,732)
(4,168,732)
(157,073)
(4,325,805)
Balance at 30 June 2023
308
11,008,870
(10,615,682)
393,496
(693,586)
(300,090)
Year ended 30 June 2024:
Loss and total comprehensive income
-
-
384,855
384,855
(29,502)
355,353
Transactions with owners:
Issue of share capital
21
8
1,299,992
-
1,300,000
-
1,300,000
Balance at 30 June 2024
316
12,308,862
(10,230,827)
2,078,351
(723,088)
1,355,263
VELOCE ESPORTS LIMITED GROUP
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(1,710,096)
(1,130,331)
Interest paid
(258,100)
(9,335)
Income taxes refunded
658,021
77,606
Net cash outflow from operating activities
(1,310,175)
(1,062,060)
Investing activities
Purchase of intangible assets
(13,846)
(236,351)
Proceeds from disposal of intangibles
-
0
760,051
Purchase of property, plant and equipment
(41,964)
(25,730)
Proceeds from disposal of subsidiaries, net of cash disposed
5,524
-
0
Repayment of loans
40,000
(43,000)
Net cash (used in)/generated from investing activities
(10,286)
454,970
Financing activities
Proceeds from issue of shares
1,300,000
-
0
Repayment of bank loans
(10,000)
(10,000)
Payment of lease liabilities
(95,191)
(91,530)
Net cash generated from/(used in) financing activities
1,194,809
(101,530)
Net decrease in cash and cash equivalents
(125,652)
(708,620)
Cash and cash equivalents at beginning of year
221,703
930,323
Cash and cash equivalents at end of year
96,051
221,703
VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

Veloce Esports Limited is a private company limited by shares incorporated in England and Wales. The registered office is 58a Bronsart Road, Fulham, London, SW6 6AA. The company's principal activities and nature of its operations are disclosed in the directors' report.

 

The group consists of Veloce Esports Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.

 

Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

1.3
Basis of consolidation

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

 

All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truegroup has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The group recognises revenue when it transfers control of a product or service to a customer.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the group and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

The group recognises revenue from the following major sources:

The nature, timing of satisfaction of performance obligations and significant payment terms of the group's major sources of revenue are as follows:

Esports team management revenue

Esports team management revenue primarily consists of sale of management of esports teams. Services are transferred and invoiced at in 1 or 3 month intervals. They have short credit terms.

Advertising and viewer revenue

Advertising & viewer revenue primarily consists of YouTube revenue. Services are transferred and invoiced at a point in time. They have short credit terms.

VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Prize money and commission

Prize money & commission primarily consists of prize money. Services are transferred and invoiced at a point of time. There are no credit terms.

Drivers fees

Driver fee sales primarily consists of sale of racing driver services. Services are transferred and invoiced at a point in time. They have short credit terms.

Sponsorship revenue

Sponsorship revenue primarily consists of marketing services. Services are transferred and invoiced at a point in time. They have short credit terms.

Web3.0 & Blockchain Related Revenues
Sale of blockchain related tokens and technologies arising from integration of blockchain in, and decentralisation of, elements of the Veloce sporting and media ecosystem both directly and on various global crypto related exchanges. There are no credit terms.
1.6
Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.

 

The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not subsequently reversed.

1.7
Intangible 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:

VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.8
Property, plant and equipment

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

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:

Leasehold land and buildings
Straight line over the lease term
Leasehold improvements
25% straight line
Fixtures and fittings
25% straight line
Computers
25% straight line

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

1.9
Non-current investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a long-term interest and has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of tangible and intangible assets

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

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -

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

 

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

 

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

1.11
Cash and cash equivalents

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

1.12
Financial assets

Financial assets are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

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

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the group’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The parent company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.13
Financial liabilities

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

Other financial liabilities

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

Derecognition of financial liabilities

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

VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.14
Equity instruments

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

1.15
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.16
Employee benefits

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

 

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

 

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

1.17
Retirement benefits

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

1.18
Leases

At inception, the group assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the group recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the group's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the group is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the group's estimate of the amount expected to be payable under a residual value guarantee; or the group's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

2
Revenue
2024
2023
£
£
Revenue analysed by class of business
Esport Team Management Revenue
2,020,775
1,357,665
Sponsorship Revenue
2,483,433
1,628,681
Prize Money and Commission
25,653
219,906
Advertising and Viewer Revenue
1,553,406
1,854,252
Web3.0 & Blockchain Related Revenues
6,720,172
-
12,803,439
5,060,504
2024
2023
£
£
Other income
QNTM Pay
-
99,988
VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
3
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(68,380)
54,467
Depreciation of property, plant and equipment
151,326
148,398

The amortisation of intangible assets is included within administration expenses.

4
Employees

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

2024
2023
Number
Number
Directors and management
5
5
Employees
24
36
Total
29
41

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,355,472
1,550,891
Social security costs
152,043
84,980
Pension costs
27,820
13,538
1,535,335
1,649,409
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
650,211
458,483
Company pension contributions to defined contribution schemes
2,432
3,487
652,643
461,970

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 0).

VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Directors' remuneration
(Continued)
- 21 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
166,334
92,500
6
Finance costs
2024
2023
£
£
Interest on bank overdrafts and loans
657
905
Interest on convertible loan notes
-
0
134,455
Interest on lease liabilities
4,769
8,430
Other interest payable
252,674
-
0
Total interest expense
258,100
143,790
7
Income tax expense
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(616,231)
Adjustments in respect of prior periods
87,347
-
0
Total UK current tax
87,347
(616,231)
Deferred tax
Origination and reversal of temporary differences
(1,175)
(7,619)
Total tax charge/(credit)
86,172
(623,850)
VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Income tax expense
(Continued)
- 22 -

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

2024
2023
£
£
Profit/(loss) before taxation
441,525
(4,949,655)
Expected tax charge/(credit) based on a corporation tax rate of 25.00% (2023: 19.00%)
110,381
(940,434)
Effect of expenses not deductible in determining taxable profit
68,719
50,240
Utilisation of tax losses not previously recognised
(18,189)
-
Unutilised tax losses carried forward
139,832
505,836
Adjustment in respect of prior years
17,373
-
Effect of change in UK corporation tax rate
(2,344)
-
Permanent capital allowances in excess of depreciation
(10,491)
(5,954)
Research and development tax credit
(220,278)
(240,817)
Deferred tax adjustments
1,169
7,279
Taxation charge/(credit) for the year
86,172
(623,850)
8
Intangible assets
Goodwill
Media software
Cryptocurrency
Trademark
Total
£
£
£
£
£
Cost
At 1 July 2022
3,533,883
640,422
189,772
7,552
4,371,629
Additions
5,524
205,887
18,340
6,600
236,351
Disposals
-
0
(846,309)
(134,336)
-
(980,645)
At 30 June 2023
3,539,407
-
0
73,776
14,152
3,627,335
Additions - purchased
-
0
-
0
-
0
13,846
13,846
Other movements
(5,524)
-
0
-
0
-
0
(5,524)
At 30 June 2024
3,533,883
-
0
73,776
27,998
3,635,657
At 1 July 2022
-
0
126,875
23,199
-
150,074
Eliminated on disposals
-
0
(126,875)
(23,199)
-
(150,074)
Carrying amount
At 30 June 2024
3,533,883
-
73,776
27,998
3,635,657
At 30 June 2023
3,539,407
-
73,776
14,152
3,627,335
At 30 June 2022
3,533,883
488,006
73,776
7,552
4,196,014
VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
9
Property, plant and equipment
Leasehold land and buildings
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 July 2022
412,824
87,369
128,699
31,432
660,324
Additions
-
0
-
0
20,870
4,860
25,730
At 30 June 2023
412,824
87,369
149,569
36,292
686,054
Additions
-
0
-
0
31,946
10,018
41,964
At 30 June 2024
412,824
87,369
181,515
46,310
728,018
Accumulated depreciation and impairment
At 1 July 2022
130,728
43,684
56,043
15,604
246,059
Charge for the year
82,565
21,842
35,653
8,338
148,398
At 30 June 2023
213,293
65,526
91,696
23,942
394,457
Charge for the year
82,565
21,843
38,431
8,487
151,326
At 30 June 2024
295,858
87,369
130,127
32,429
545,783
Carrying amount
At 30 June 2024
116,966
-
51,388
13,881
182,235
At 30 June 2023
199,531
21,843
57,873
12,350
291,597
10
Investments
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Investments in associates
-
0
-
0
15,464
171,821
Fair value of financial assets carried at amortised cost

The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

11
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Veloce Racing Limited
England and Wales
Ordinary
88.00
Veloce Digital Limited
United Arab Emirates
Ordinary
100.00
Veloce VEXT Foundation PTE
Singapore
Ordinary
100.00
VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
12
Associates

Details of the group's associates at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Quadrant Esports Limited
England and Wales
Ordinary
23.00
Veloce USA LLC
USA
Ordinary
50.00

The investments in subsidiaries are all stated at cost.

13
Trade and other receivables
2024
2023
£
£
Trade receivables
573,840
584,868
VAT recoverable
7,891
103,419
Amounts owed by related parties
53,988
220,092
Other receivables
312,683
354,693
Prepayments
37,662
39,262
986,064
1,302,334
14
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

15
Borrowings
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Borrowings held at amortised cost:
Bank loans
10,000
10,000
10,833
20,833
VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
16
Trade and other payables
2024
2023
£
£
Trade payables
2,596,985
2,420,193
Amounts owed to related parties
89,528
-
0
Accruals
62,693
128,405
Social security and other taxation
203,765
7,186
Other payables
199,722
3,265,301
3,152,693
5,821,085
17
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
98,999
95,191
In two to five years
24,990
123,989
Total undiscounted liabilities
123,989
219,180

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
98,999
95,191
Non-current liabilities
24,990
123,989
123,989
219,180
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
4,769
8,430
18
Deferred taxation
Liabilities
2024
2023
£
£
Deferred tax balances
16,316
17,492

The following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and prior reporting period.

VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
18
Deferred taxation
(Continued)
- 26 -
Accelerated capital allowances
£
Liability at 1 July 2022
25,111
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(7,619)
Liability at 1 July 2023
17,492
Deferred tax movements in current year
Charge/(credit) to profit or loss
(1,176)
Liability at 30 June 2024
16,316
19
Deferred revenue
2024
2023
£
£
Arising from Other deferred income
538,026
863,308
All deferred revenues are expected to be settled within 12 months from the reporting date.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
11,973
13,538

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

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of 1p each
20,562
13,472
206
198
Ordinary B1 of 1p each
10,622
10,622
106
106
Ordinary B2 of 1p each
4
4
-
-
Ordinary C of 1p each
442
442
4
4
Ordinary D of 1p each
2
2
-
-
31,632
24,542
316
308
VELOCE ESPORTS LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
22
Share premium account
2024
2023
£
£
At the beginning of the year
11,008,870
11,008,870
Issue of new shares
1,299,992
-
At the end of the year
12,308,862
11,008,870
23
Capital risk management

The group is not subject to any externally imposed capital requirements.

24
Cash absorbed by operations
2024
2023
£
£
Profit/(loss) for the year before income tax
441,525
(4,949,655)
Adjustments for:
Share of results of associates and joint ventures
156,357
27,464
Finance costs
258,100
143,790
Depreciation and impairment of property, plant and equipment
151,326
148,398
Movements in working capital:
Decrease in trade and other receivables
276,270
515,067
(Decrease)/increase in trade and other payables
(2,668,392)
2,181,297
(Decrease)/increase in deferred revenue outstanding
(325,282)
803,308
Cash absorbed by operations
(1,710,096)
(1,130,331)
VELOCE ESPORTS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
30 June 2024
- 28 -
2024
2023
Notes
£
£
Non-current assets
Intangible assets
26
101,774
87,928
Property, plant and equipment
27
179,724
288,277
Investments
28
3,211,081
3,206,654
3,492,579
3,582,859
Current assets
Trade and other receivables
29
4,863,506
5,613,189
Current tax recoverable
6,031
294,022
Cash and cash equivalents
74,991
166,098
4,944,528
6,073,309
Current liabilities
Trade and other payables
30
1,500,793
4,508,673
Current tax liabilities
1,012
-
0
Lease liabilities
31
98,999
95,191
1,600,804
4,603,864
Net current assets
3,343,724
1,469,445
Non-current liabilities
Lease liabilities
31
24,990
123,989
Deferred tax liabilities
32
15,689
16,861
40,679
140,850
Net assets
6,795,624
4,911,454
Equity
Called up share capital
316
308
Share premium account
12,308,862
11,008,870
Retained earnings
(5,513,554)
(6,097,724)
Total equity
6,795,624
4,911,454
VELOCE ESPORTS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2024
30 June 2024
- 29 -

As permitted by trues408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £584,170 (2023 - £2,387,396 loss).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
28 March 2025
Mr D Bailey
Director
Company registration number 11135021 (England and Wales)
VELOCE ESPORTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
Share capital
Share premium account
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 July 2022
308
11,008,870
(3,710,328)
7,298,850
Year ended 30 June 2023:
Loss and total comprehensive income
-
-
(2,387,396)
(2,387,396)
Balance at 30 June 2023
308
11,008,870
(6,097,724)
4,911,454
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
584,170
584,170
Transactions with owners:
Issue of share capital
8
1,299,992
-
1,300,000
Balance at 30 June 2024
316
12,308,862
(5,513,554)
6,795,624
VELOCE ESPORTS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
33
(1,307,016)
(1,011,373)
Interest paid
(251,738)
(8,430)
Income taxes refunded
282,120
77,605
Net cash outflow from operating activities
(1,276,634)
(942,198)
Investing activities
Purchase of intangible assets
(13,846)
(212,487)
Proceeds from disposal of intangibles
-
0
648,914
Purchase of property, plant and equipment
(41,009)
(25,002)
Proceeds from disposal of subsidiaries
(4,427)
(6,344)
Repayment of loans
40,000
(43,000)
Net cash (used in)/generated from investing activities
(19,282)
362,081
Financing activities
Proceeds from issue of shares
1,300,000
-
0
Payment of lease liabilities
(95,191)
(91,530)
Net cash generated from/(used in) financing activities
1,204,809
(91,530)
Net decrease in cash and cash equivalents
(91,107)
(671,647)
Cash and cash equivalents at beginning of year
166,098
837,745
Cash and cash equivalents at end of year
74,991
166,098
VELOCE ESPORTS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
25
Accounting policies
Company information

Veloce Esports Limited is a private company limited by shares incorporated in England and Wales. The registered office is 58a Bronsart Road, Fulham, London, SW6 6AA. The company's principal activities and nature of its operations are disclosed in the directors' report.

25.1
Accounting convention

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

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

The company applies accounting policies consistent with those applied by the group [EXCEPT AS SET OUT BELOW]. To the extent that an accounting policy is relevant to both group and parent company financial statements, please refer to the group financial statements for disclosure of the relevant accounting policy.

25.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

26
Intangible assets
Media Software
Crypto- Currency
Other Intangible
Total
£
£
£
£
Cost
At 1 July 2022
640,422
73,776
7,552
721,750
Additions
205,887
-
6,600
212,487
Disposals
(846,309)
-
-
(846,309)
At 30 June 2023
-
0
73,776
14,152
87,928
Additions - purchased
-
0
-
0
13,846
13,846
At 30 June 2024
-
0
73,776
27,998
101,774
At 1 July 2022
126,875
-
-
126,875
Eliminated on disposals
(126,875)
-
-
(126,875)
Carrying amount
At 30 June 2024
-
73,776
27,998
101,774
At 30 June 2023
-
73,776
14,152
87,928
At 30 June 2022
488,006
73,776
7,552
569,334
VELOCE ESPORTS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 33 -
27
Property, plant and equipment
Leasehold land and buildings
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 July 2022
412,824
87,369
128,699
25,420
654,312
Additions
-
0
-
0
20,870
4,132
25,002
At 30 June 2023
412,824
87,369
149,569
29,552
679,314
Additions
-
0
-
0
31,946
9,063
41,009
At 30 June 2024
412,824
87,369
181,515
38,615
720,323
Accumulated depreciation and impairment
At 1 July 2022
130,728
43,684
56,043
13,809
244,264
Charge for the year
82,565
21,842
35,653
6,713
146,773
At 30 June 2023
213,293
65,526
91,696
20,522
391,037
Charge for the year
82,565
21,843
38,431
6,723
149,562
At 30 June 2024
295,858
87,369
130,127
27,245
540,599
Carrying amount
At 30 June 2024
116,966
-
51,388
11,370
179,724
At 30 June 2023
199,531
21,843
57,873
9,030
288,277

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2024
2023
£
£
Net values at the year end
Property
116,966
199,532
Depreciation charge for the year
Property
295,858
213,293
28
Investments
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Investments in subsidiaries
-
0
-
0
3,010,771
3,006,344
Investments in associates
-
0
-
0
200,310
200,310
-
0
-
0
3,211,081
3,206,654
VELOCE ESPORTS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
28
Investments
(Continued)
- 34 -
Fair value of financial assets carried at amortised cost

The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Investment in subsidiary undertakings

Details of the company's principal operating subsidiaries are included in {note.note78}.

29
Trade and other receivables
2024
2023
£
£
Trade receivables
458,539
367,979
VAT recoverable
7,891
103,419
Amounts owed by subsidiary undertakings
4,013,149
4,533,621
Amounts owed by related parties
53,988
220,092
Other receivables
307,939
348,816
Prepayments
22,000
39,262
4,863,506
5,613,189
30
Trade and other payables
2024
2023
£
£
Trade payables
1,058,552
958,339
Amounts owed to subsidiary undertakings
121,770
263,308
Amounts owed to related parties
89,528
-
0
Accruals
31,721
21,725
Other payables
199,222
3,265,301
1,500,793
4,508,673
31
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
98,999
95,191
In two to five years
24,990
123,989
Total undiscounted liabilities
123,989
219,180
VELOCE ESPORTS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
31
Lease liabilities
(Continued)
- 35 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
98,999
95,191
Non-current liabilities
24,990
123,989
123,989
219,180

The fair value of the company's lease obligations is approximately equal to their carrying amount.

The fair value of the company's lease obligations is £0. This is assessed by ***State how this is assessed***.

32
Deferred taxation
Liabilities
Assets
2024
2023
2024
2023
£
£
£
£
Deferred tax balances
15,689
16,861
-
0
-
0

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Accelerated capital allowances
£
Liability at 1 July 2022
24,310
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(7,449)
Liability at 1 July 2023
16,861
Deferred tax movements in current year
Charge/(credit) to profit or loss
(1,172)
Liability at 30 June 2024
15,689
VELOCE ESPORTS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 36 -
33
Cash absorbed by operations
2024
2023
£
£
Profit/(loss) for the year before taxation
589,881
(2,683,848)
Adjustments for:
Finance costs
251,738
142,885
Depreciation and impairment of property, plant and equipment
149,562
146,773
Movements in working capital:
Decrease/(increase) in trade and other receivables
709,683
(703,813)
(Decrease)/increase in trade and other payables
(3,007,880)
2,146,630
Decrease in deferred revenue outstanding
-
(60,000)
Cash absorbed by operations
(1,307,016)
(1,011,373)
2024-06-302023-07-01falseCCH SoftwareCCH Accounts Production 2024.300Mr J A ClarkeMr J W MacLaurinMr T  ReddyMr R J Svendsen-CookMr D BaileyMr D EalesMr A  WebbfalseMembers have not required the company to obtain an 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