ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 02839366

HIGH PERFORMANCE SPORTS LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

HIGH PERFORMANCE SPORTS LTD

COMPANY INFORMATION

Directors	A Chandrashekar (appointed 24 February 2024, resigned 23 July 2025)
	M T Hodges
	D Howard (resigned 4 April 2025)
	B Levey (resigned 28 June 2024)
	S J Taylor
	G W Wright (resigned 28 February 2024)
	S C Steele (appointed 23 July 2025)


Company secretary	M T Hodges


Registered number	02839366


Registered office	The Castle Climbing Centre
	Green Lanes
	London
	N4 2HA


Independent auditors	Barnes Roffe Audit Limited
	Chartered Accountants & Statutory Auditor
	Charles Lake House
	Claire Causeway
	Crossways Business Park
	Dartford
	Kent
	DA2 6QA

HIGH PERFORMANCE SPORTS LTD

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 8
Statement of comprehensive income	9
Balance sheet	10
Statement of changes in equity	11
Statement of cash flows	12
Analysis of net debt	13
Notes to the financial statements	14 - 27

HIGH PERFORMANCE SPORTS LTD

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The company owns and operates the Castle Climbing Centre, an indoor climbing centre open to the general public based in North London together with associated shop selling climbing equipment and a café. The company owns the property it operates from, a grade 2* listed Victorian water pumping station which was acquired from Thames Water in 2017.

Business review

The company made a pre-tax loss for the year of £323,280 (2023: loss of £18,380). There was no contribution made to the Employee Ownership Trust in the year (2023: £75,000) and £44,126 (2023: £43,081) was spent on new development opportunities. The company remains profitable at an EBITDA level with a 2024 result of £114,436 (2023: £365,795).
We continued our programme of investment in the renewal of our climbing walls during the year and also in works to increase the energy efficiency of the building, in accordance with our long-term plans to develop in an environmentally sustainable manner and to minimise our carbon emissions. As a result, our tangible assets increased to £5,356,272 from £5,233,929, showing that we continue to invest ahead of the impact of depreciation on our building and climbing walls.

Principal risks and uncertainties

The principal risks facing the company arise from the continued inflationary impact of increasing staff, utility, interest and insurance costs and a restricted ability to pass on those increased costs to customers as price rises without suppressing demand due to the constraints on customer expenditure from inflation within the wider economy. As part of our commitment to paying fair wages to our staff we are a London Living Wage company to ensure that all our staff are paid appropriately for their efforts on behalf of the company. This represents a risk, as a significant driver of costs is employee salaries, which are now determined externally. However, this represents part of our ongoing commitment to employee engagement along with our Employee Ownership Trust which continues to appoint a director to the board and the trustees are actively involved in employee matters and with our sustainability plans.
The other major risk to the company continues to be increased competition as other operators open indoor climbing centres. The new centres that have opened over the last 3 years are predominantly bouldering-only centres, with the outdoor boulders in our garden, lead climbing and auto belay/top rope walls remaining distinguishing features of our offer, that are not easily copied by the new entrants to the market. The past year has seen corporate activity in the sector with private equity backed vehicles continuing to aggressively pursue expansion plans.
Visitor numbers are still below those experienced prior to the impact of Covid-19 and indeed fell during the year, partly reflecting the increased competition but also the trend within London of customers working from home, which has impacted customer behaviour from customers living in greater London. Towards the end of 2024 and in early 2025 a number of measures have been implemented to increase engagement with customers, including a significant investment in our social media presence and regular customer-focussed events. As a result, visitor numbers have now stabilised, and a small increase has been experienced since the end of 2024 and we continue to explore avenues to expand community engagement.
We continue to pursue the development opportunities open to us with detailed negotiations ongoing on 2 new sites which both have capacity for lead and top rope climbing.

Page 1

HIGH PERFORMANCE SPORTS LTD

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

This report was approved by the board and signed on its behalf.

M T Hodges

Director

Date: 4 September 2025

Page 2

HIGH PERFORMANCE SPORTS LTD

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the company's financial statements and then apply them consistently;

∙make judgments 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.

Results and dividends

The loss for the year, after taxation, amounted to £318,921 (2023 - loss £13,221).

Directors

The directors who served during the year were:

A Chandrashekar (appointed 24 February 2024, resigned 23 July 2025)

M T Hodges

D Howard (resigned 4 April 2025)

B Levey (resigned 28 June 2024)

S J Taylor

G W Wright (resigned 28 February 2024)

Page 3

HIGH PERFORMANCE SPORTS LTD

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006.

This report was approved by the board and signed on its behalf.

M T Hodges

Director

Date: 4 September 2025

Page 4

HIGH PERFORMANCE SPORTS LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIGH PERFORMANCE SPORTS LTD

Opinion

We have audited the financial statements of High Performance Sports Ltd (the 'company') for the year ended 31 December 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).

In our opinion the financial statements:

∙give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 opinion.

Conclusions relating to going concern

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

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

Page 5

HIGH PERFORMANCE SPORTS LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIGH PERFORMANCE SPORTS LTD (CONTINUED)

Other information

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.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Strategic report and 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the 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:

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

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

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

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

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 6

HIGH PERFORMANCE SPORTS LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIGH PERFORMANCE SPORTS LTD (CONTINUED)

Auditors' 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 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows:
• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• We identified the laws and regulations applicable to the Company through discussion with directors and other management, and from our commercial knowledge and experience of the retail and distribution sector in which the Company operates;
• The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, are as follows;
o Companies Act 2006
o FRS102
o Health and Safety legislation
o Employment legislation
o Tax legislation
o GDPR
o DBS and CRB requirements

• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes and inspecting relevant correspondence; and
• Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
• Making enquires management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations
• Reviewing the financial statements and testing the disclosures against supporting documentation;
• Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
• Inspecting and testing journal entries to identify unusual or unexpected transactions;
• Assessing whether judgement and assumptions made in determining significant accounting estimates, including stock provisions and bad debts/credit note provisions, were indicative of management bias; and
• Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company's usual course of business.

Page 7

HIGH PERFORMANCE SPORTS LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIGH PERFORMANCE SPORTS LTD (CONTINUED)

The areas that we identified as being susceptible to misstatement through fraud were:
• Management bias in the estimates and judgements made;
• Management override of controls; and
• Posting of unusual journals or transactions.
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.

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 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.

Mario Cientanni (Senior statutory auditor)

for and on behalf of

Barnes Roffe Audit Limited

Chartered Accountants

Statutory Auditor

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA

15 September 2025

Page 8

HIGH PERFORMANCE SPORTS LTD

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	3,481,050	3,833,299
Cost of sales		(1,575,405)	(1,645,517)
Gross profit		1,905,645	2,187,782
Administrative expenses		(2,067,070)	(2,099,939)
Operating (loss)/profit		(161,425)	87,843
Interest payable and similar expenses	8	(161,855)	(106,223)
Loss before tax		(323,280)	(18,380)
Tax on loss	9	4,359	5,159
Loss for the financial year		(318,921)	(13,221)

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 27 form part of these financial statements.

Page 9

HIGH PERFORMANCE SPORTS LTD

REGISTERED NUMBER: 02839366

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	11		5,356,276		5,233,939
			5,356,276		5,233,939
Current assets
Stocks		53,262		48,965
Debtors: amounts falling due within one year	12	127,001		166,741
Cash at bank and in hand	13	92,230		23,080
		272,493		238,786
Creditors: amounts falling due within one year	14	(1,414,302)		(1,351,234)
Net current liabilities			(1,141,809)		(1,112,448)
Total assets less current liabilities			4,214,467		4,121,491
Creditors: amounts falling due after more than one year	15		(1,629,413)		(1,021,671)
Provisions for liabilities
Deferred tax	17	(212,500)		(216,859)
Other provisions	18	(385,716)		(463,572)
			(598,216)		(680,431)
Net assets			1,986,838		2,419,389

Capital and reserves
Called up share capital	19	55,204	55,204
Share premium account		404,658	404,658
Other reserves		6,453	6,453
Profit and loss account		1,520,523	1,953,074
		1,986,838	2,419,389

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

M T Hodges

Director

Date: 4 September 2025

The notes on pages 14 to 27 form part of these financial statements.

Page 10

HIGH PERFORMANCE SPORTS LTD

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Other reserves	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2024	55,204	404,658	6,453	1,953,074	2,419,389

Loss for the year	-	-	-	(318,921)	(318,921)
Dividends: Equity capital	-	-	-	(113,630)	(113,630)
At 31 December 2024	55,204	404,658	6,453	1,520,523	1,986,838

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2023

	Called up share capital	Share premium account	Other reserves	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2023	55,204	404,658	6,453	1,966,295	2,432,610
Comprehensive income for the year
Loss for the year	-	-	-	(13,221)	(13,221)
At 31 December 2023	55,204	404,658	6,453	1,953,074	2,419,389

The notes on pages 14 to 27 form part of these financial statements.

Page 11

HIGH PERFORMANCE SPORTS LTD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
Loss for the financial year	(318,921)	(13,221)
Adjustments for:
Depreciation of tangible assets	275,861	277,951
Interest paid	161,855	106,223
Taxation charge/(credit)	(4,359)	(5,159)
(Increase)/decrease in stocks	(4,297)	7,883
Decrease/(increase) in debtors	39,740	(21,407)
Increase/(decrease) in creditors	129,950	(118,238)
(Decrease) in provisions	(77,856)	(36,428)
Corporation tax received/(paid)	-	(9,846)
Net cash generated from operating activities	201,973	187,758

Cash flows from investing activities
Purchase of tangible fixed assets	(398,198)	(336,267)
Net cash from investing activities	(398,198)	(336,267)
Cash flows from financing activities
New secured loans	1,500,000	-
Repayment of loans	(917,491)	(163,971)
Other new loans	35,491	-
Repayment of other loans	-	(19,500)
Dividends paid	(113,630)	-
Interest paid	(161,855)	(106,223)
Net cash used in financing activities	342,515	(289,694)
Net increase/(decrease) in cash and cash equivalents	146,290	(438,203)
Cash and cash equivalents at beginning of year	(54,060)	384,143
Cash and cash equivalents at the end of year	92,230	(54,060)

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	92,230	23,080
Bank overdrafts	-	(77,140)
	92,230	(54,060)

Page 12

HIGH PERFORMANCE SPORTS LTD

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2024


At 1 January 2024	Cash flows	At 31 December 2024
£	£	£

Cash at bank and in hand	23,080	69,150	92,230
Bank overdrafts	(77,140)	77,140	-
Debt due after 1 year	(1,021,671)	(607,742)	(1,629,413)
Debt due within 1 year	(567,859)	(10,258)	(578,117)
	(1,643,590)	(471,710)	(2,115,300)

The notes on pages 14 to 27 form part of these financial statements.

Page 13

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

High Performance Sports Limited is a private company limited by shares and is incorporated in England and Wales. It has its registered office at The Castle Climbing Centre, Green Lanes, London, N4 2HA.
The company's principal activity continued to be that of the operation of a sports facility being a rock climbing centre.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

Revenue

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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the company has transferred the significant risks and rewards of ownership to the buyer;

∙the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Page 14

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.3

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.4

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.5

Pensions

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.

2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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 balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 15

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.7

Going Concern

The company incurred a loss for the year of £323,280 after interest and depreciation costs of £161,855 and £275,861 respectively. To determine the basis of which the accounts should be prepared the directors have assessed the performance of the company post year end. The company is breaking even and the directors are forecasting improved results. The company also has the continued support of both the directors and the bank, together with retained profit and loss reserves in excess of £1.5m. On the basis of the above the accounts have been prepared on the going concern basis.

2.8

Tangible fixed assets

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, on the following bases:.

Freehold property	-	50 years straight line
Plant and machinery	-	5 years straight line
Sports Equipment	-	5-20 years straight line

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.

2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 16

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

2.12

Creditors

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.

2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.14

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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.

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.

2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.16

Employee Ownership Trust

The company has chosen to adopt FRS102 in accounting for the Employee Ownership Trust (EOT). The company has effective control of the EOT, accordingly, the assets and liabilities are accounted for as an extension to the company. The company's equity instruments held by the EOT are accounted for as if they were the company's own equity and treated as Other Reserves. No gain or loss is recognised as profit or loss on the purchase, sale or cancellation of the company's own equity held by the EOT.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described in Note 2, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
The areas in the financial statements where these judgements and estimates have been made include the following:
1. The company makes key assumptions regarding the useful economic life of tangible fixed assets and this is further described in note 2.8 of accounting policies.
2. The company has recognised provisions for dilapidations in its financial statements which require management to make judgements about the likely residual costs to be incurred upon exiting current property leases. The dilapidations provision included within the accounts as at the year end totalled £385,716 (2023: £463,572).

Turnover	3,481,050	3,833,299
	3,481,050	3,833,299

All turnover arose within the United Kingdom.

Page 18

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Fees payable to the company's auditors for the audit of the company's financial statements

20,033

24,000

Wages and salaries	1,970,865	1,998,501
Cost of defined contribution scheme	37,842	35,775
	2,008,707	2,034,276

The average monthly number of employees, including directors, during the year was 74 (2023 - 76).

7.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	249,771	304,542
Company contributions to defined contribution pension schemes	4,942	6,528
	254,713	311,070

	During the year retirement benefits were accruing to 5 directors (2023 - 4) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £92,884 (2023 - £88,566).
	The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £2,201 (2023 - £1,321).

Page 19

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

8.	Interest payable and similar expenses
		2024	2023
		£	£

Bank interest payable	161,640	106,223
Other loan interest payable	215	-
	161,855	106,223

Corporation tax
Adjustments in respect of previous periods	-	(76,858)

Total current tax	-	(76,858)

Deferred tax
Origination and reversal of timing differences	(4,359)	71,699
Total deferred tax	(4,359)	71,699


		(4,359)	(5,159)

Page 20

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9.Taxation (continued)

Loss on ordinary activities before tax

(323,280)

(18,380)

Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)	(80,820)	(4,595)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	-	18,750
Capital allowances for year in excess of depreciation	(15,132)	(278)
Utilisation of tax losses	95,952	(13,877)
Adjustments to tax charge in respect of prior periods	-	(76,858)
Deferred tax movement	(4,359)	71,699
Total tax charge for the year	(4,359)	(5,159)

Factors that may affect future tax charges

The company has losses of £480,056 (2023 - £96,249) carried forward to be offset against future taxable profits.

Page 21

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.	Dividends
		2024	2023
		£	£

	Dividends paid	113,630	-
		113,630	-

11.	Tangible fixed assets

	Long-term leasehold property	Plant and machinery	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 January 2024	6,109,945	411,250	2,573,297	9,094,492
Additions	203,387	7,174	187,637	398,198
At 31 December 2024	6,313,332	418,424	2,760,934	9,492,690
Depreciation
At 1 January 2024	1,605,614	385,475	1,869,464	3,860,553
Charge for the year on owned assets	130,679	8,791	136,391	275,861
At 31 December 2024	1,736,293	394,266	2,005,855	4,136,414
Net book value
At 31 December 2024	4,577,039	24,158	755,079	5,356,276
At 31 December 2023	4,504,331	25,775	703,833	5,233,939

12.

Debtors

					2024	2023
					£	£


Trade debtors	21,490	12,418
Other debtors	45,907	91,908
Prepayments and accrued income	59,604	62,415
	127,001	166,741

Page 22

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.Debtors (continued)

Page 23

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.	Cash and cash equivalents
		2024	2023
		£	£

Cash at bank and in hand	92,230	23,080
Less: bank overdrafts	-	(77,140)
	92,230	(54,060)

14.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Bank overdrafts	-	77,140
Bank loans	156,709	181,942
Other loans	421,408	385,917
Trade creditors	341,355	209,234
Other taxation and social security	122,274	154,882
Other creditors	12,603	7,689
Accruals and deferred income	359,953	334,430
	1,414,302	1,351,234

15.	Creditors: Amounts falling due after more than one year
		2024	2023
		£	£

Bank loans	1,629,413	1,021,671
	1,629,413	1,021,671

Page 24

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Amounts falling due within one year
Bank loans	156,709	181,942
Other loans	421,408	385,917
	578,117	567,859
Amounts falling due 1-2 years
Bank loans	156,709	181,943
Amounts falling due 2-5 years
Bank loans	1,472,704	394,636
Amounts falling due after more than 5 years
Bank loans	-	445,092
	2,207,530	1,589,530

The bank loan was renegotiated and increased in the year and is secured on the assets of the entity and a legal charge over the freehold property. M Hodges and S Taylor have jointly provided personal guarantees to Metro bank PLC in respect of this loan to a maximum £626,000. Interest rate is variable at the UK base rate + 4% per annum.
Other loans are unsecured.

17.	Deferred taxation

		2024
		£

	At beginning of year	(216,859)
	Charged to profit or loss	4,359
	At end of year	(212,500)

Page 25

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

Accelerated capital allowances	(332,514)	(216,859)
Tax losses carried forward	120,014	-
	(212,500)	(216,859)

18.	Provisions

		Dilapidation provision
		£

	At 1 January 2024	463,572
	Charged to profit or loss	(77,856)
	At 31 December 2024	385,716

The company's policy is to provide dilapidation costs in respect of the forseeable costs of reinstatement of the freehold property, and to utilise the provision as those allocated costs arise.

19.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

55,204 (2023 - 55,204) Ordinary shares shares of £1.00 each	55,204	55,204

20.	Pension commitments

The company operates a defined contribution pension scheme. The pension cost charge for the period was £37,842 (2023 - £35,775). At the year end contributions totaling £11,691 (2023 - £8,400) were outstanding to the scheme.

21.	Commitments under operating leases

The company had no commitments under non-cancellable operating leases at the balance sheet date.

Page 26

HIGH PERFORMANCE SPORTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

22.

Related party transactions

Professional services fees of £24,000 (2023 - £20,000) were paid to a director.
During the year dividends were issued to directors of the company of £24,304 (2023 - £Nil).
During 2017 a loan was made to the Company by the Taylor family and the balance outstanding at 31 December 2024 to S Taylor is £421,408 (2023 - £385,917) which includes accrued but unpaid interest. The loan is repayable on demand.

Page 27