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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Sparkling Ventures Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7-12 Half Moon Street, Mayfair, London, W1J 7BH.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company had truenet assets of £84,244 (2023: £70,245) and net current liabilities of £420,976 (2023: £415,659). 

The company's parent undertaking, Veladail Hotels Limited, has pledged its continuing support to the company. As at the balance sheet date, the company owed its parent £540,854 (2023: £535,854).

The directors have carried out a detailed review of the company’s financial position including a review of cash flows and forecasts taking into account recoverability of debts, future investment commitments and the parent company's continuing support. Having taken into account these relevant factors, at the time of approving the financial statements, the directors are of the opinion that the company will continue to be able to meet its financial obligations as they fall due and to continue in operational existence for at least the next twelve months from the date of approval of the accounts.

Therefore the directors consider it is appropriate to prepare the financial statements on the going concern basis.

Fixed asset investments not carried at market value are recognised at amortised cost. Fixed asset investments for which a fair value cannot be measured reliably are valued at cost.

If a reliable measure of fair value is no longer available for an asset measured at fair value, its carrying amount at the last date the asset was reliably measurable becomes its new cost. The entity shall measure the asset at this cost amount less impairment, until a reliable measure of fair value becomes available.

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

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

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 deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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

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

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

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

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

As at 31 December 2024, an outstanding debtor of £100,000 (2023: £100,000) was owed to the company. The directors have reviewed the potential recoverability of this debt, including discussions with the relevant party. Having carried out such enquiries, it is the directors’ opinion that the debt is recoverable in full.

In determining the fair value of investments, the directors are required to exercise professional judgement and employ estimation techniques.

The fair value of a fund investment was determined by the directors using a valuation report and the fund’s audited accounts, prepared by the investment fund manager in accordance with International Private Equity and Venture Capital Valuation Guidelines. The fair values of the underlying unlisted investments were determined using valuation techniques such as the price of recent transactions supported by quantitative and qualitative performance analysis, earnings multiples less net debt and industry valuation benchmarks. The fair values of other investments at the year end were determined based on the prices of recent transactions which were used as inputs to the valuation model. Other factors including significant changes to the underlying investments were also considered when they may have a material impact on the fair market value. Once the investment becomes profitable, the valuation technique is based on an enterprise valuation using a specifically selected multiple of retained revenue.

Notwithstanding the basis of valuations stated above, there are inherent limitations in any valuation technique and the eventual realised proceeds may differ from the year end valuation, especially under volatile economic conditions.

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

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

Investments presented at fair value of £258,271 (2023: £245,486) and historical cost of £156,666 (2023: £166,576) have been valued by the directors based on the valuation provided by the fund's investment managers and the fund's audited accounts. While observable prices were not available for the investments, the investment managers used valuation techniques to derive their fair value.

Investments with a deemed cost of £55,850 (2023: £55,850) and a historical cost of £33,265 (2023: £33,265) have been presented using the price from the last funding round of the relevant entity, less impairment in order to state the carrying value at recoverable amount.

As at 31 December 2024, investments totalling £195,087 (2023: £184,568) have been measured at cost of £267,357 (2023: £256,837), less cumulative impairment of £72,269 (2023: £72,269), as fair value could not be determined reliably.

As at 31 December 2024 the company had a specific overdue outstanding debt due to it. The directors have reviewed the potential recoverability of this debt, including a detailed credit analysis and discussions with the relevant party. Having carried out such enquiries, it is the opinion of the directors that the debt is recoverable in full. The total outstanding amount as at 31 December 2024 was £100,000 (2023: £100,000).

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified.

Amounts contracted for but not provided in the financial statements:

The immediate parent company is Veladail Hotels Limited, a company registered in England and Wales. The ultimate holding company is Arrow Trading & Investments Est 1920, a company incorporated in Vaduz.

Veladail Hotels Limited prepares group financial statements and copies can be obtained from 7-12 Half Moon Street, London, W1J 7BH.