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Registered number:
FOR THE YEAR ENDED 31 MARCH 2024
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CATAPULT SPORTS LIMITED
COMPANY INFORMATION
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CATAPULT SPORTS LIMITED
CONTENTS
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CATAPULT SPORTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
Revenue for the year has grown to £12.5m (FY23: £10.4m) and excluding Intercompany Revenues it has grown to £5.4m (FY23: £4.3m). This increase in revenue has allowed the Company to reduce losses in the year to £1.4m (FY23: £1.7m).
The Company is well positioned with a cash balance as at 31 March 2024, £0.7m (FY23: £0.5m). Additionally, the Company is well supported by the cash held at the group level. The Group continued to focus on reducing variable and fixed costs which, coupled with the revenue increase, were the primary drivers of the Free Cash Flow generated during the year. The Group launched an enhanced Football Pro Video suite with its new Hub product for American Football clients along with a new scout capabilities solution. The latest update includes new time-saving automation, improved workflows, smarter presentation tools, and faster calculation capabilities. The Group achieved its objective of positive Free Cash Flow for FY24 with a strong result of US$4,648k, a US$26,196k improvement from the prior year (FY23: negative Free Cash Flow US$21,545k). The Group finalised an extension to its existing US$20,000k debt facility, with its existing financier, the US-based Western Alliance Bank, which now has a maturity date of 31 May 2027. The Company continued its commercial growth in the UK and European markets. Growth projections from the close of FY24 show the addition of many new customers as well as renewed contracts including, Watford FC (soccer), Arsenal FC (soccer), Middlesborough FC (soccer), Football Association of Wales (soccer), Scottish Rugby Union (rugby) and Professional Games Match Officials Limited (soccer).
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CATAPULT SPORTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Catapult’s vision is to create the platform of solutions for teams and athletes, to improve the performance of athletes and teams globally.
Within this platform Catapult has identified five “verticals” of technology solutions across two customer levels. During the financial year, the principal activities of the entities within the Group and across the verticals were: - In the Performance & Health vertical, a range of SaaS tracking technologies that use proprietary algorithms to quantify the load, effort and fatigue levels of athletes enabling them to maximize performance and minimize injury. - In the Tactics & Coaching vertical, a range of video analysis software that segments game footage, enables instant video manipulation and replay, scouting of upcoming opponents, and more effective tactical and coaching practices and outcomes. - In the Management vertical, AMS or the ‘athlete management system’, which is a cloud-based repository for wellness information that teams use to better understand athlete welfare, and an administration tool to plan rostering and the like. - In the Professional Services vertical, a range of services that maximize the productivity of customers’ sports technology, providing them with sports science insights and perspectives to gain a competitive edge. - In the Media & Engagement vertical, a range of services to manage and monetize the video content assets (i.e., footage) of customers, to drive fan engagement via social media, generate revenue from media licensing, and facilitate talent scouting of athletes. The Group’s wearable and video solution products are provided to elite clients on both a subscription and upfront capital sales basis, with subscription sales forming the vast majority of all sales to elite clients. Catapult is the global leader in wearable tracking technology and analytics solutions for the sports performance market with more than 4,200 teams (FY23: 3,800 teams). Catapult is also a market leader in providing innovative digital and video analytic software solutions to elite sports teams globally. With major offices in Australia, the United States and the United Kingdom and over 430 staff in 26 countries (FY23: 460 staff in 28 countries), Catapult is a global technology success story that is committed to advancing the way data is used in elite sports.
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CATAPULT SPORTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
In executing its growth plans, Catapult is subject to the market, operational and acquisition risks, including those outlined below:
Pandemic Risks The COVID-19 crisis has caused significant disruption in sports globally. Despite the trend returning to normalcy, a pandemic, including COVID-19 remains a risk for the Company. A pandemic or resurgence of COVID-19, including through new variants, may cause the closure or disruption of sporting events, reduce customer demand, adversely affect supply chain management, cause people movement disruptions and financial market volatility (including currency markets) and otherwise adversely affect the business. A pandemic may affect the ability of Catapult’s customers or suppliers to comply with their obligations under their agreements and influence renewal or subsequent contracting decisions. Catapult continues to assess the impact of COVID-19 on the business and continues to consider ways to mitigate any risks to the Company, including monitoring the impact of Government requirements and health measures on relevant markets, and supporting customers and employees to provide a safe working environment as well as supporting hybrid and remote working. Economic Risk Catapult may be affected by general economic conditions. Changes in the broader economic and financial climate may adversely affect the conduct of Catapult’s operations. In particular, sustained economic downturns in key geographies or sectors (in particular, sports business and consumer sectors), where Catapult is focused may adversely affect its financial performance. Changes in economic factors affecting general business cycles, global health risks such as the pandemic, inflation, legislation, monetary and regulatory policies, the increased level of global uncertainty and volatility associated with the conflict in Ukraine, the imposition of sanctions and export controls, as well as changes to accounting standards, may also affect the performance of Catapult. Additionally, while the US regional banking crisis has not adversely affected Catapult, further US bank or financial institution closures and continued global banking instability may affect Catapult’s ability to access cash, cash equivalents, and short and long-term investments, which could have a material adverse effect on Catapult’s business and financial condition. Such factors, in addition to other macroeconomic conditions, may adversely affect our customers and suppliers, which could also have a material adverse effect on Catapult’s business and financial condition. To help mitigate these risks, Catapult maintains a cash management strategy and continues to monitor its partner financial institutions and key markets. Further, detailed financial oversight allows responsive changes to the business following variations to the economic and financial climate. Industry and Competition Risk Catapult’s performance could be adversely affected if existing or new competitors reduce Catapult’s market share, or its ability to expand into new market segments. Catapult’s existing or new competitors may have substantially greater resources and access to more markets than Catapult. Competitors may succeed in developing new technologies or alternative products which are more innovative, easier to use or more cost effective than those that have been or may be developed by Catapult. This may place pricing pressure on Catapult’s product offering and may impact on Catapult’s ability to retain existing clients, as well as Catapult’s ability to attract new clients. If Catapult cannot compete successfully, Catapult’s business, operating results and financial position could be adversely impacted. Catapult mitigates these risks by continually striving for product innovation and development, pursuing strategic partnerships or acquisitions where appropriate, and monitoring competitor and industry activity to provide products that customers need. Technology and Hosting Platforms Catapult relies on third-party hosting providers to maintain continuous operation of its technology platforms, servers and hosting services and the cloud-based environment in which Catapult provides its products. There is a risk that these systems may be adversely affected by various factors such as damage, faulting or aging equipment, power surges or failures, computer viruses, or misuse by staff or contractors. Catapult regularly monitors platform performance to attenuate this risk. Other factors such as hacking, denial of service attacks, or natural disasters may also adversely affect these systems and cause them to become unavailable. Catapult’s development of business continuity and crisis management plans is designed to help mitigate these concerns. Further, if Catapult’s third-party hosting provider ceased to offer its services to Catapult and Catapult was unable
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CATAPULT SPORTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
to obtain a replacement provider quickly, this could lead to a disruption of service to the Catapult website and cloud infrastructure. This could lead to a loss of revenue while Catapult is unable to provide its services, as well as adversely affecting its reputation. This could have a material adverse effect on Catapult’s financial position and performance.
Cyber Security and Data Breaches Catapult provides its services through cloud-based and other online platforms. Despite investing in, and developing, our in-house technology capabilities, engaging reputable third-party IT service providers, and educating employees on data security and awareness, hacking or exploitation of any vulnerability on those platforms could lead to loss, theft or corruption of data. This could render Catapult’s services unavailable for a period while data is restored. Catapult’s services frequently involve processing sensitive personal or corporate confidential information. Such sensitive information could be taken, lost or viewed by unauthorized persons, either maliciously or via administrative or user error. Such a data breach or other cyber incident could lead to unauthorized disclosure of users’ data with associated reputational damage, claims by users, regulatory scrutiny and fines. Although Catapult employs strategies and protections to improve the quality of its administrative processes and global cyber security review, including Audit and Risk Committee risk updates, and ongoing external cyber threat assessments to minimize security breaches and to protect data, these strategies and protections might not be entirely successful. In that event, disruption to Catapult’s services could adversely impact on Catapult’s revenue, profitability and growth prospects. The loss of client data could have severe impacts on client service, reputation, and the ability for clients to use the products. Manufacturing and Product Quality Risks Catapult currently uses third-party manufacturers to produce components of its products. There is no guarantee that these manufacturers will be able to meet the cost, quality and volume requirements that are required to be met for Catapult to remain competitive. Catapult’s products must also satisfy certain regulatory and compliance requirements, which may include inspection by regulatory authorities. Failure by Catapult or its suppliers to continuously comply with applicable requirements could result in enforcement action being taken against Catapult. Catapult continues to manage these risks by searching for replacement components, placing component orders well in advance, placing larger orders to increase stock on hand levels, and allowing the business sufficient time to respond to shortages and make necessary changes to manufacturers. As a manufacturer, importer and supplier of products, product liability risk, faulty products and associated recall are key risks of the Catapult business. While Catapult has product liability insurance, not all claims will be covered by this, and any issues arising from product liability faults may be significant and beyond the protection of Catapult’s existing insurance coverage. Development and Commercialization of Intellectual Property Catapult relies on its ability to develop and commercialize its intellectual property. A failure to protect, develop and commercialize its intellectual property successfully could lead to a loss of opportunities and adversely impact the operating results and financial position of Catapult. Furthermore, any third party developing superior technology or technology with greater commercial appeal in the fields in which Catapult operates may harm the prospects of Catapult. Catapult’s success depends, in part, on its ability to obtain, maintain and protect its intellectual property, including its patents. Actions taken by Catapult to protect its intellectual property, including regular trademark searches and strategic protection of the register, may not be adequate, complete or enforceable and may not prevent the misappropriation of its intellectual property and proprietary information or deter independent development of similar technologies by others. The granting of a patent does not guarantee that Catapult’s intellectual property is protected and that others will not develop similar technologies that circumvent such patents. There can be no assurance that any patents Catapult owns, controls or licenses, whether now or in the future, will give Catapult commercially significant protection of its intellectual property. While Catapult regularly monitors unauthorized use of its intellectual property rights, this can be difficult and costly. Catapult may not be able to detect unauthorized use of its intellectual property rights. Changes in laws in Australia and other jurisdictions in which Catapult operates may adversely affect Catapult’s intellectual property rights.
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CATAPULT SPORTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Other parties may develop and patent substantially similar or substitute products, processes, or technologies to those used by Catapult, and other parties may allege that Catapult’s products incorporate intellectual property rights derived from third parties without their permission. Catapult may be subject to a claim that its current products infringe the intellectual property rights of a third party. Allegations of this kind, if successful, may result in injunctions being granted against Catapult which could materially affect the operation of Catapult and Catapult’s ability to earn revenue, and cause disruption to Catapult’s services. The defence and prosecution of intellectual property rights lawsuits, proceedings, and related legal and administrative proceedings are costly and time-consuming, and their outcome is uncertain. In addition to its patent and licensing activities, Catapult also relies on protecting its trade secrets. Actions taken by Catapult to protect its trade secrets may not be adequate and this could erode its competitive advantage in respect of such trade secrets. Further, others may independently develop similar technologies.
Further Product Development Risk Catapult has developed its athlete video and tracking technology and software products and continues to invest in further systems and product development. Catapult cannot be certain that further development of its video and athlete tracking technology, software products, or online sport learning platform will be successful, that development milestones will be achieved, or that Catapult’s intellectual property will be developed into further products that are commercially exploitable. There are many risks inherent in the development of technologies and related products, particularly where the products are in the early stages of development. Projects can be delayed or fail to demonstrate any benefit or may cease to be viable for a range of reasons, including scientific and commercial reasons. Catapult seeks to alleviate some of these risks by undertaking customer feedback programs to inform future product development priorities. Brand and Reputation Damage The brand and reputation of Catapult and its individual products are important in retaining and increasing the number of clients that utilize Catapult’s technology and products and could prevent Catapult from successfully implementing its business strategy. Any reputational damage or negative publicity surrounding Catapult, or its products could adversely impact on Catapult’s business and its future growth and profitability. Catapult’s policies and procedures, and the training provided to employees, help to manage these risks. Product Liability Catapult’s business exposes it to potential product liability claims related to the manufacturing, marketing and sale of its products. Catapult maintains product liability insurance and regularly reviews the level and scope of such cover to ensure it is appropriate. However, to the extent that a claim is brought against Catapult that is not covered or fully covered by insurance, such a claim could have a material adverse effect on the business, financial position and results of Catapult. Claims, regardless of their merit or potential outcome, may adversely impact Catapult’s business and its future growth and profitability. Litigation Catapult may, in the ordinary course of business, be involved in disputes. These disputes could give rise to litigation which may be costly and may adversely affect the operational and financial results of Catapult. Catapult maintains financial oversight to enable responsive changes to spending in the event of such a dispute. Catapult Sports Inc. is the subject of a patent infringement claim filed by Charles Smith Enterprises, LLC (a non-practising entity) filed before the District Court of Delaware. While the claim involves a current Catapult product, it is not anticipated that this claim will materially affect the operation of Catapult or cause disruption to Catapult’s products and services. Catapult Group International Ltd is the subject of a trademark opposition procedure filed before the United States Trademark Trial and Appeal Board (TTAB) by adidas AG in respect of a pending trademark application in the United States. It is not anticipated that this trademark opposition will materially affect the operation of Catapult or cause disruption to Catapult’s products and services. Given the above circumstances, no provisions have been recognized at March 31, 2024 in respect of either matter.
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CATAPULT SPORTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The company use a set of key performance indicators, financial and non-financial, to monitor the business linked to the principal risks.
- Turnover has increased 20% from £10.4m in 2023 to £12.5m in 2024. This is driven partly by acquisition of new customers but also a number of contracts novating from SBG Sports Software which was purchased by the Catapult group in 2021. - The Company's strong control over operating costs mean they have not risen in line with income and this has significantly reduced the Company's operating loss from £1.7m in 2023 to £1.2m in 2024. - The Company expects to see further reductions in the operating loss in 2025. - The Company continues to contribute to the Catapult Group International's commitment for 2025 to be cashflow positive.
This report was approved by the board on 23 May 2025 and signed on its behalf.
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CATAPULT SPORTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their report and the financial statements for the year ended 31 March 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙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 to 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.
The loss for the year, after taxation, amounted to £1,382,198 (2023 - loss £1,671,177).
The directors who served during the year were:
The market continues to be buoyant and the company is confident that it will continue to grow in a controlled manner through the development of new markets. The company will continue to develop its employees through training and other means of support to ensure employee retention rates are maintained.
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CATAPULT SPORTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The Company keeps employees informed of matters affecting them as employees and the financial and economic factors affecting the performance of the Company. The company continues to support its employees both through professional development and other means to ensure that the technical knowledge is held within the business through high levels of employee retention.
There have been no significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on 23 May 2025 and signed on its behalf.
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CATAPULT SPORTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CATAPULT SPORTS LIMITED
We have audited the financial statements of Catapult Sports Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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).
We were not appointed as auditor of the company until after 31 March 2022 and thus did not observe the counting of physical stock at the end of that year. We were unable to satisfy ourselves by alternative means concerning the stock quantities of £512,182 held at 31 March 2022, by using other audit procedures. Consequently we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 31 March 2023. Our audit opinion on the financial statements for the period ended 31 March 2022 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures.
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 qualified opinion.
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 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.
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CATAPULT SPORTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CATAPULT SPORTS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
Arising solely from the limitation on the scope of our work relating to stocks, referred to above:
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and - we were unable to determine whether adequate accounting records have been kept. We have nothing to report in respect of the following maters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - 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 - the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.
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CATAPULT SPORTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CATAPULT SPORTS LIMITED (CONTINUED)
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CATAPULT SPORTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CATAPULT SPORTS LIMITED (CONTINUED)
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 Auditors' 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.
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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. This included those regulations directly related to the financial statements, including financial reporting, tax legislation and distributable profits and industry regulations including GDPR, employment law and health and safety. The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following: • We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions to identify large or unusual transactions. • We reviewed key authorisation procedures and decision making processes for any unusual or one-off transactions. • We reviewed minutes of directors meetings and agreed the financial statement disclosures to underlying supporting documentation. • We have made enquiries of management and directors of the company regarding laws and regulations applicable to the organisation. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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CATAPULT SPORTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CATAPULT SPORTS LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Tennyson House
Cambridge Business Park
CB4 0WZ
23 May 2025
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CATAPULT SPORTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
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CATAPULT SPORTS LIMITED
REGISTERED NUMBER: 08741678
BALANCE SHEET
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 May 2025.
The notes on pages 18 to 31 form part of these financial statements.
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CATAPULT SPORTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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CATAPULT SPORTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Catapult Sports Limited is a private company, limited by shares, and is incorporated in England and Wales.
The address of its registered office is 34 Boar Lane, Leeds, United Kingdom, LS1 5DA.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with 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 judgement in applying the Company's accounting policies.
The following principal accounting policies have been applied:
The report has been prepared on the going concern basis of accounting which contemplates continuity of normal business and the realization of assets and settlement of liabilities in the ordinary course of business.
As the Company is loss making and has net liabilities on the balance sheet, however the Directors are of the view that the going concern basis of preparing the financial statements is appropriate. Notwithstanding this, the company’s operations are intrinsically linked to the ongoing support of the wider Catapult Group. The Directors have obtained assurances from the Group’s Board of Directors that the company will have the support of the parent company and wider Catapult Group for the foreseeable future. As at 31 March 2024, the Group had net cash inflows from operations of $31,703k USD (FY23: $3,734k USD net cash inflows from operations). The Group had a current asset deficit of $28,793k USD (March 2023: deficit $13,312k USD). Current liabilities include contract liabilities of $34,471k USD (March 2023: $28,158k USD) expected to release into revenue within 12 months. Current contract liabilities are expected to be delivered over the next 12 months; therefore, no actual cash outflows are expected other than those required to pay costs associated with delivering the service. Notwithstanding this, the Directors are of the view that the going concern principle is appropriate for the Group due to the following factors: • The Group has continued to secure sales to many leading sporting organisations across the world for which revenue are cash inflows will be recognised in future periods. • The Group confirmed an upsized $20m USD debt facility with Western Alliance Bank during 2022. • The Group continues to be well positioned with $11,594k USD of cash and cash equivalents at 31 March 2024.
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Catapult enters into sales transactions involving an outright sale to the client, on a subscription basis or for rendering of services. Catapult applies the revenue recognition criteria set out below to each separately identifiable component of the sales transaction in order to reflect the substance of the transaction. To determine whether to recognise revenue, Catapult follows a five-step process: 1. Identifying the contract with a customer 2. Identifying the performance obligations 3. Determining the transaction price 4. Allocating the transaction price to the performance obligations 5. Recognising revenue when/as performance obligation(s) are satisfied When Catapult enters into transactions involving its products and services, the total transaction price for a contract is allocated amongst the various performance obligations. Revenue is recognised either at a point in time or over time, when the Entity's satisfied performance obligations by transferring the promised goods or services to customers. Capital (sale of equipment) Capital Revenue is the sale of goods to third parties and is recognised at a point in time when Catapult has transferred to the buyer the significant risks and rewards of ownership, and control of the goods. The timing of the transfer of risks and rewards/control varies depending on the individual terms of the sales agreement. For sales of wearable units and sale of hardware in the video analytics business the transfer usually occurs on dispatch of the goods from Catapult's premises. Subscription and Services Subscription revenue comprises the recurring monthly billing from wearables subscription sales, rendering of services and content licensing. Unbilled revenue at the period end is recognised in the Balance Sheet as accrued revenue and included within trade and other receivables & contract assets. Unearned revenue at the period end is recognised in the Balance Sheet as deferred revenue and included within contract liabilities. Revenue is recognised as performance obligations under customer contracts are met. Performance obligations consist of the provisioning of the software/cloud/SaaS subscription and related maintenance and support services over the term of the contract. (i) Wearables Subscription sale Catapult generates revenues from subscription sales typically whenever the goods have been dispatched from Catapult's premises and the software has been activated for the customer. The revenue from the subscription agreement is recognised on a monthly basis in equal amounts for each month of the subscription agreement. (ii) Rendering of Services Catapult is involved in providing software, support and maintenance services. Catapult recognises revenue from such activities on a monthly basis in equal amounts for each month of the subscription agreement.
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Catapult may enter into a contract or multiple contracts with customers that may include multiple performance obligations. Where multiple contracts are entered into, Catapult determines whether it is required to be measured with another pre-existing contract by determining whether the performance obligations promised are being sold at their stand-alone selling price (SASP). Where pricing is equal to SASP, the contract is treated as a stand-alone contract. Where pricing is not equal to SASP, the contract is combined with the pre-existing contract with the customer as a multiple-performance obligation (multi-PO) arrangement. Where a multi-PO arrangement is entered into, each performance obligation is allocated a proportional amount of revenue based on the transaction price of the contract and the relative SASP of each performance obligation. (v) Prepaid Purchase Prepaid purchases comprise of subscription contracts entered into whereby the customer pays for the subscription either annually or all in advance. This result in recurring monthly revenue (primarily from wearable/performance and health sales). Unearned revenue at the year-end is recognised on the Balance Sheet as deferred revenue and included within contract liabilities. (vi) Interest Interest income and expenses are reported on an accrual basis using the effective interest method. Other Revenue Other revenue is additional revenue related to the sale of hardware, consisting of media, shipping, training and installation income. Revenue is recognised either at a point in time or over time, when the Company satisfies performance obligations by transferring the promised goods or services to customers.
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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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Net realisable value is the estimated selling price in the ordinary course of business less any applicable selling expenses.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Analysis of turnover by country of destination:
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
There were no factors that may affect future tax charges.
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
11.Tangible fixed assets (continued)
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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 £262,027 (2023 - £235,420) . Contributions totalling £57,138 (2023 - £41,046) were payable to the fund at the balance sheet date and are included in creditors.
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CATAPULT SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
The directors consider that the immediate and ultimate parent undertaking is
The largest group of undertaking for which group accounts have been drawn up is that headed by Catapult Group International Limited, incorporated in Australia and the smallest such group of undertakings is that headed by Catapult International Pty Ltd, incorporated in Australia. Copies of the group accounts can be obtained from Level 2, 630 Church Street, Richmond, Victoria, 3121, Australia.
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