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Registered number: 14777198
MOTORSPORT NETWORK MEDIA UK LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MOTORSPORT NETWORK MEDIA UK LIMITED
COMPANY INFORMATION
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S Garcia (appointed 3 April 2023, resigned 16 November 2023)
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T Chadwick (appointed 3 April 2023, resigned 15 March 2024)
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G Stolper (appointed 26 March 2024, resigned 30 July 2024)
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J Gray (appointed 26 March 2024)
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G Gatto (appointed 30 July 2024)
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J Hinton (appointed 30 July 2024)
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Ecovis Wingrave Yeats LLP
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3rd Floor, Waverley House
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MOTORSPORT NETWORK MEDIA UK LIMITED
CONTENTS
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Notes to the Financial Statements
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MOTORSPORT NETWORK MEDIA UK LIMITED
REGISTERED NUMBER: 14777198
BALANCE SHEET
AS AT 31 DECEMBER 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 May 2025.
The notes on pages 2 to 12 form part of these financial statements.
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
Motorsport Network Media UK Limited is a private company, limited by shares, incorporated in England and Wales. The registered office is Fora, 2 Stephen Street, London, W1T 1AN, United Kingdom. The registered company number is 14777198.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has reported a loss for the period amounting to £496,183 and at the year end the Company's current liabilities exceed its current assets by £325,605.
Since inception, the Company has relied on funding from group companies and its ultimate beneficial owner. At year end, the ultimate parent entity is now GMF Motorsport Investor LP which is ultimately owned by G Fegel. GMF Motorsport Investor LP has confirmed, although not provided a guarantee, that it will provide such financial support as necessary to the Company to enable it to continue to meet its liabilities as they fall due.
The directors are committed to ensuring that the Company can meet its liabilities as and when they fall due for a period of at least 12 months from the date of approval of these financial statements and given the recent investments in the business the indications of support from the ultimate parent company and ultimate controlling party, the directors continue to adopt the going concern basis of accounting.
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Subscriptions income
Subscriptions income in respect of both print and digital media is recognised in the profit and loss account as turnover on a receivable basis with that portion relating to subsequent periods included in deferred income.
Newsstand sales
The Company uses an agent to manage its relationships with and distribute its publications to wholesalers. The Company records the revenue for publications sold by the agent to the wholesaler on the date the publication goes on sale at the retailer. Revenue is recognised at the wholesale price, not at the retail price, and net of sales tax, discounts and returns.
Advertising revenue
Advertising revenue relates to the sale of print and digital advertising space and is recognised over the period of the advertising contract.
Face-to-face activities
Ticket, sponsorship and space hire revenue relating to events organised by the Company are recognised on the date the event occurs. Sales in advance of future events are included within deferred income while sales not yet invoiced in respect of completed events are held within accrued income.
License fee income
License fees are recognised over the period of the licensing contract with revenue relating to future periods included within deferred income.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income 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 Company operates and generates income.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.
Investments in subsidiaries are measured at cost less accumulated impairment.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal orconstructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Useful economic life of tangible fixed assets
Fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Deferred tax asset
The Company has not recorded a deferred tax asset of £151,814 relating to the accumulated losses and other deductions of the Company as there is uncertainty as to when future profits will arise within this company.
Recoverability of intercompany balances
The directors review amounts owed by group companies with a view to providing for these where there is uncertainty regarding the recoverability of these balances. Given that the ultimate parent company has provided confirmation that it is the intention of the ultimate controlling party to continue to provide funding as necessary to the ultimate parent company, the directors do not believe any provision is required in respect of amounts owed by group companies. Please see note 2.2 for further details relating to the going concern assessment and the material uncertainty relating to going concern in the audit report.
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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Write off of Intercompany liabilities
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Prior to the Company being acquired during the year, balances with former group companies within the Motorsport Network LLC group were written off in full.
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All employees are employed by Autosport Media UK Ltd, a group company, but the salaries are recharged to the Company for 45 employees.
The average monthly number of employees, including directors, during the period was 45.
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the Company:
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The subsidiary is incorporated in England and Wales, the registered office address is Fora, 2 Stephen Street, London, United Kingdom, W1T 1AN.
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
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Allotted, called up and fully paid
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1,000 Ordinary Shares shares of £1.00 each
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Ordinary shares are non-redeemable, carry the right to vote on the basis of one vote per share, the right to participate in a dividend and the right to participate in a distribution of capital in proportion to the number of shares held.
Capital contribution reserve
The capital contribution reserve represents the amount of capital contributions received by the Company from its shareholders. These contributions are made without the issuance of additional shares and are intended to strengthen the Company's financial position. The reserve is not distributable as dividends and is maintained to support the Company's long-term growth and stability.
Profit and loss account
The profit and loss account includes all current period retained profits and losses. All are available for distribution.
The Company is part of a VAT group including other group companies incorporated in England and Wales. All companies within the VAT group are jointly and severally liable for each other's VAT liabilities.
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £23,902. Contributions totalling £Nil were payable to the fund at the balance sheet date.
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Related party transactions
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The Company has taken advantage of the exemption contained within FRS 102 from disclosing transactions with entities that were wholly owned group companies during the year.
As at the year end, the Company was owed £33,850 by group companies under common ownership that were not wholly owned at year end.
As at the year end, the Company owed £108,907 to group companies under common ownership that were not wholly owned at year end.
During the year, expenses totalling £1,398,554 were recharged to the Company from group companies under common ownership that were not wholly owned during the year.
During the year, the Company received revenues totalling £91,606 from group companies under common ownership that were not wholly owned during the year.
Prior to the Company being acquired during the year, balances with formerly wholly owned group companies within the Motorsport Network LLC group were written off in full with £129,957 treated as exceptional income and £268,978 treated as equity by way of a capital contribution.
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At year end, the immediate parent company is Motorsport Network Media LLC, a company incorporated in the United States of America.
As at year end the ultimate controlling party was G M Fegel by virtue of his indirect majority shareholding in Motorsport Network Media LLC.
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MOTORSPORT NETWORK MEDIA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
The auditors' report on the financial statements for the Period ended 31 December 2023 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
We draw attention to note 2.2 in the financial statements. The Company has reported a loss for the period amounting to £496,183 and at the year end the Company's current liabilities exceed its current assets by £325,605.
Since inception, the Company has relied on funding from group companies and its ultimate beneficial owner. At year end, the ultimate parent entity is now GMF Motorsport Investor LP which is ultimately owned by G Fegel. GMF Motorsport Investor LP has confirmed, although not provided a guarantee, that it will provide such financial support as necessary to the Company to enable it to continue to meet its liabilities as they fall due.
As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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The audit report was signed on 14 May 2025 by Stuart Hinds (Senior Statutory Auditor) on behalf of Ecovis Wingrave Yeats LLP.
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