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SRO Motorsports Europe Limited
Registered number: 03013210
Annual Report
For the year ended 31 December 2024
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SRO MOTORSPORTS EUROPE LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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SRO MOTORSPORTS EUROPE LIMITED
CONTENTS
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Independent Auditor's Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Notes to the Financial Statements
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SRO MOTORSPORTS EUROPE LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The director presents his Strategic Report and Director's Report on the affairs of the Group and the Company together with the audited consolidated financial statements for the year ended 31 December 2024.
Business review and future developments
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In 2024 the Group continued with good level of entry in each of its Championships, particularly in Europe. The global reach of SRO continued to expand with a new venture in Australia, where the initial season has shown promising entry levels.
In Asia, the grids are strong and the Japanese events have grown. Further expansion in the region includes the launch of the SRO GT Cup in China, with its opening event at the Shanghai Formula 1 Grand Prix, and will conclude their new season at the Beijing Street Circuit in China.
With the continued globalisation of the GT World Challenge Championship, the Group’s focus has included investment in promotion and fan engagement as a priority.
We are also pleased to report that our Sustainability objective was exceeded reaching 100% carbon neutrality in 2024 and again in 2025 by investing in both technology and nature-based environmental projects around the world.
During the year, the Group continued to be strong in turnover and gross profitability.
Key performance indicators ("KPIs")
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Principal risks and uncertainties
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The operations of the Group expose it to a variety of financial risks that include the effects of currency risk, credit risk and liquidity risk. The Group uses sound management principles to mitigate these risks. The director is responsible for setting the objectives and underlying principles of financial risk management policies for the Group. The policies set by the director are implemented by the finance team of the Group.
Currency risk
Currency risk arises when transactions are denominated in foreign currencies. The Group trades in a number of currencies and actively manages cashflow demands in particular currencies to ensure that sufficient foreign currencies are held to settle foreign currency obligations as they arise.
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SRO MOTORSPORTS EUROPE LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties (continued)
Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The trade receivables, the Group performs ongoing credit valuations of its customers and the Group maintains an allowance for doubtful accounts which, when realised, have been within the range of management’s expectations. For other financial assets, the Group adopts the policy of dealing only with high credit quality counterparts.
Credit exposure to an individual counterparty is restricted by credit limits that are approved based on ongoing credit evaluation. The counterparty’s payment profile and credit exposure are continuously monitored by management.
Liquidity risk
The liquidity risk is usually assessed by comparing liquid assets and short term liabilities. The Group manages the liquidity risk by using cash flow forecasts which enables the Group to monitor its working capital and take remedial action when necessary. The Group generates surplus cash and the associated risk is considered low.
This report was approved by the board and signed on its behalf by:
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SRO MOTORSPORTS EUROPE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The director presents his report and the audited consolidated financial statements for the year ended 31 December 2024.
The principal activity of the Group is the organisation and hosting of motorsport events, storage services, track sessions and technical maintenance facilities.
The principal activity of the Company is the organisation and hosting of motorsport events.
The profit for the year, after taxation and non-controlling interests, amounted to £5,320,561 (2023: profit of 3,799,140).
During the year, the Group and the Company paid out dividends of £4,117,699 (2023: £2,264,703).
The director who served during the year and to the date of this report was:
Director's responsibilities statement
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The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare consolidated financial statements for each financial year. Under that law the director has elected to prepare the consolidated 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 director must not approve the consolidated financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these consolidated financial statements, the director is required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The director is 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 the Group and to enable him to ensure that the consolidated financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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SRO MOTORSPORTS EUROPE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Qualifying third party indemnity provisions
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The director benefits from a qualifying indemnity provision in the form permitted by the Section 234 of the Companies Act 2006 in respect of certain third party actions against the director. No claim or notice of claim in respect of these indemnities has been received in the year. The qualifying indemnity provision was in force throughout the financial year and up to the date of approval of the Director's Report.
Matters covered in the Strategic Report
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As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 certain matters which are required to be disclosed in the Director's Report have been omitted as they are included in the Strategic Report. These matters relate to financial instrument risk and future developments.
The director has assessed forecast trading conditions, planned events hosted by the group and required cash commitments to continue to do so, in establishing the group and company's ability to continue as a going concern. The Group and Company has a well-established history of trading profitably, with a reasonable expectation that this will continue for the foreseeable future.
The race series and events are hosted along an annual racing calendar operates with a core customer base and long term sponsorship agreements, which generates and is expected to generate positive cash flows. Given the current cash reserves and expected cash generation from these planned and expected activities, taking into account the business requires limited capital investment or any debt repayments due, the director is confident that the business will continue for a period of no less than 12 months from the date of this report.
Provision of information to auditor
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The director at the time when this Director's Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Group and the Company's auditor is 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 Group and the Company's auditor is aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company and the Group since the year end.
The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
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SRO MOTORSPORTS EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SRO MOTORSPORTS EUROPE LIMITED
Opinion
We have audited the financial statements of SRO Motorsports Europe Limited (the parent ‘Company’) and its subsidiaries (the 'Group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, 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 FRS 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 Group and the parent Company’s affairs as at 31 December 2024 and of the Group's profit 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the parent Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is 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.
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SRO MOTORSPORTS EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SRO MOTORSPORTS EUROPE LIMITED
In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's 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 director's remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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SRO MOTORSPORTS EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SRO MOTORSPORTS EUROPE LIMITED
Responsibilities of Director
As explained more fully in the Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is responsible for assessing the Group's and the parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director intends either to liquidate the Group or the parent Company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the Group and the parent Company and their industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Group and the parent Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
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SRO MOTORSPORTS EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SRO MOTORSPORTS EUROPE LIMITED
In addition, we evaluated the director's and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the director and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 auditor’s report.
Use of the audit report
This report is made solely to the parent 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 parent Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent Company and the parent Company's members as a body for our audit work, for this report, or for the opinions we have formed.
Gerhard Bonthuys (Senior statutory auditor)
For and on behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
2nd Floor
6 Sutton Plaza
Sutton Court Road
Sutton
Surrey
SM1 4FS
27 October 2025
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SRO MOTORSPORTS EUROPE LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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Translation of foreign operations
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Other comprehensive income for the year
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Total comprehensive income for the year
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Profit for the year attributable to:
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Non-controlling interests
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The Consolidated Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
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The notes on pages 15 to 33 form part of these financial statements.
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SRO MOTORSPORTS EUROPE LIMITED
REGISTERED NUMBER: 03013210
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due within one year
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Cash and cash equivalents
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Equity attributable to owners of the Company
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Non-controlling interests
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 33 form part of these financial statements.
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SRO MOTORSPORTS EUROPE LIMITED
REGISTERED NUMBER: 03013210
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due within one year
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Cash and cash equivalents
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. Profit after tax for the year of the Company was £5,253,191 (2023: profit of £3,425,361).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 33 form part of these financial statements.
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SRO MOTORSPORTS EUROPE LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Equity attributable to owners of the Company
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Non-controlling interests
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Comprehensive income for the year
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Translation of foreign operations
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Total comprehensive income for the year
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Dividends: Equity capital
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Statutory reserve transfer
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Total transactions with owners
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Comprehensive income for the year
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Translation of foreign operations
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Total comprehensive income for the year
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Dividends: Equity capital
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Statutory reserve transfer
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Total transactions with owners
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The notes on pages 15 to 33 form part of these financial statements.
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SRO MOTORSPORTS EUROPE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Dividends: Equity capital
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Total transactions with owners
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Comprehensive income for the year
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Total comprehensive income for the year
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Dividends: Equity capital
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Total transactions with owners
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The notes on pages 15 to 33 form part of these financial statements.
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SRO MOTORSPORTS EUROPE LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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Translation of foreign tangible assets
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Interest payable and similar expenses
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Interest receivable and similar income
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Translation of foreign operations
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(Increase)/decrease in debtors
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(Decrease)/increase in creditors
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible assets
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Net cash generated from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net (decrease)/increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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- 14 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SRO Motorsports Europe Limited ("the Company") is a private company limited by shares, registered and incorporated in England and Wales. Its registered number is 03013210. The address of its registered office is 30 Old Bailey, London, EC4M 7AU.
The principal activity of the Group is the organisation and hosting of motorsport events, storage services, track sessions and technical maintenance facilities.
The principal activity of the Company is the organisation and hosting of motorsport events.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Company has taken advantage of the exemption in its individual financial statements from preparing a Statement of Cash Flows, on the basis that it is a qualifying entity and the Consolidated Statement of Cash Flows, included in these financial statements, includes the Company's cash flows.
The financial statements have been presented in Pound Sterling and are rounded to the nearest pound as this is the currency of the primary economic environment within which the Company operates.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Financial Position respectively.
- 15 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The director has assessed forecast trading conditions, planned events hosted by the group and required cash commitments to continue to do so, in establishing the group and company's ability to continue as a going concern. The Group and Company has a well-established history of trading profitably, with a reasonable expectation that this will continue for the foreseeable future.
The race series and events are hosted along an annual racing calendar operates with a core customer base and long term sponsorship agreements, which generates and is expected to generate positive cash flows. Given the current cash reserves and expected cash generation from these planned and expected activities, taking into account the business requires limited capital investment or any debt repayments due, the director is confident that the business will continue for a period of no less than 12 months from the date of this report.
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Foreign currency transactions and balances
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Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Comprehensive Income.
On consolidation, the results of the overseas companies included within the consolidation are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in the foreign exchange reserve.
- 16 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover 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 turnover is recognised:
Sale of goods
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Group has transferred the significant risks and rewards of ownership to the buyer;
∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of turnover can be measured reliably;
∙it is probable that the Group 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
The Group and Company provides services to host motor racing events which are rendered to customers at a point in time. As such, revenue from these services is recognised when the obligations of the Group and Company are fulfilled under the contractual obligations with customers, the amount of turnover can be reliably measured and recognised net of sales and other taxes.
Sponsorship income is recognised over the race season over time, as the associated services are rendered, when such income can be reliably measured and probable that it will be received.
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.
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
- 17 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Tangible assets (continued)
|
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 bases:
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Specialised hospitality facilities
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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.
Depreciation is charged to the Consolidated Statement of Comprehensive Income within 'administrative expenses'.
Investments in subsidiaries
Investments in subsidiaries are measured at cost less accumulated impairment.
Other investments
The Company purchases motor vehicles as investments from time to time. Such vehicles are held as investments and not depreciated. Their values are considered for impairment annually.
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Debtors: amounts falling due within one year
|
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.
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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 Consolidated Statement of Cash Flows, cash and cash equivalents form an integral part of the Group's cash management.
- 18 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from group undertakings.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.
Short-term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Interest receivable and similar income
|
Interest receivable and similar income is recognised in profit or loss using the effective interest method.
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Interest payable and similar expense
|
Interest payable and similar expense 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.
- 19 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 shareholder at an annual general meeting.
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Operating leases: the Group as lessee
|
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Defined contribution pension plan
The Group and Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 other creditors as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
- 20 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Current and deferred taxation
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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 reporting date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
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 reporting date.
- 21 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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An analysis of turnover by class of business is as follows:
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Analysis of turnover by country of destination:
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The operating profit is stated after charging/(crediting):
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Depreciation of tangible assets
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Profit on disposal of tangible assets
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- 22 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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During the year, the Group obtained the following services from the Company's auditor:
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Fees payable to the Company's auditor for the audit of the consolidated and the Company's financial statements
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Fees payable to the Company's auditor in respect of:
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Taxation compliance services
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Staff costs were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the director, during the year was as follows:
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The director did not receive any remuneration for his services to the Group or the Company during the year (2023: £nil).
The director is considered to be the Key Management Personnel of the Group and the Company.
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- 23 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Other interest receivable
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Interest payable and similar expenses
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Foreign tax on income for the year
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Origination and reversal of timing differences
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Adjustments in respect of prior periods
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- 24 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Tax on profit (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of25% (2023: 23.52%). The differences are explained below:
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Profit before tax multiplied by standard rate of corporation tax in the UK of 25% (2023: 23.52%)
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Expenses not deductible for tax purposes
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Adjustments to tax charge in respect of prior periods
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Adjustments to tax charge in respect of prior periods - deferred tax
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Remeasurement of deferred tax for changes in tax rates
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Effect of overseas tax differences and consolidation adjustments
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Total tax charge for the year
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From 1 April 2023, the rate of corporation tax in the UK increased from 19% to 25%, resulting in a 'standard rate' of corporation tax in the above reconciliation of 23.52% for 2023. Deferred tax in the current and prior year is calculated at 25%.
- 25 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Specialised hospitality facilities
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- 26 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Tangible assets (continued)
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Specialised hospitality facilities
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- 27 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
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Other fixed asset investments
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Other fixed asset investments
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- 28 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Other fixed asset investments
Other fixed asset investments comprise motor vehicles held as investments.
Subsidiary undertakings
The subsidiary undertakings of the Company are set out below. Indirect subsidiaries are indicated with (*).
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8 B Rue D'Anjou 75008 Paris, France
|
Organisation and hosting of motorsport events
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8 B Rue D'Anjou 75008 Paris, France
|
Storage, preparation, repair and servicing of elite race and road cars
|
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Debtors: amounts falling due within one year
|
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Amounts owed by group undertakings
|
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Prepayments and accrued income
|
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Trade debtors are stated at net of a provision of £1,708,071 (2023: £nil).
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
See more information relating to deferred taxation in note 18.
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Cash and cash equivalents
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Cash at bank is secured by a debenture over the assets of the parent company.
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- 29 -
|
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Creditors: amounts falling due within one year
|
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Amounts owed to group undertakings
|
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Other taxation and social security
|
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Accruals and deferred income
|
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Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.
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Creditors: amounts falling due after more than one year
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(Charged)/credited to the Consolidated Statement of Comprehensive Income
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- 30 -
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SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
18.Deferred taxation (continued)
|
|
The deferred tax asset is made up as follows:
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Fixed asset timing differences
|
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Short term timing differences
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Allotted, called up and fully paid
|
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1,000 (2023: 1,000) Ordinary shares of £1 each
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|
The ordinary shares entitle the holder of each to one voting right and no right to fixed income.
|
Foreign exchange reserve
The foreign exchange translation reserve represents cumulative differences on the translation of foreign subsidiaries' assets, liabilities and results upon consolidation.
Other reserves
Other reserves represent minimum reserves which are required to be held under the legislation of the jurisdictions in which foreign subsidiaries have been incorporated.
Profit and loss account
This reserve represents the cumulative profits and losses of the Company and the Group, net of dividends paid.
Non-controlling interests
This represents the equity in a subsidiary not attributable, directly or indirectly, to the Group.
The Royal Bank of Scotland PLC holds two charges which contain fixed and floating charges over all assets of the Company.
- 31 -
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|
SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Commitments under operating leases
|
|
|
At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Operating lease expenses during the year amounted to £375,785 (2023: £339,109).
|
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund during the year and amounted to £140,562 (2023: £177,531). Contributions payable to the fund at the year end amounted to £50,358 (2023: £53,879).
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|
Consolidated analysis of net debt
|
- 32 -
|
|
SRO MOTORSPORTS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Related party transactions
|
|
|
The Company has taken advantage of the exemption under paragraph 33.1A of Financial Reporting Standard 102 not to disclose arms-length transactions with other wholly owned members of the Group. Other related party transactions are disclosed below.
At the year end, the Company was owed £2,779 from the director (2023: £433).
During the year, total sales to WC Vision LLC, a fellow subsidiary, amounted to £1,193,822 (2023: £959,852) and total purchases from WC Vision LLC were £102,443 (2023: £306,176).
During the year, total sales to SRO Motorsport Promotion (SA), a fellow subsidiary, amounted to £485,432 (2023: £504,425) and total purchases from SRO Motorsport Promotion (SA) were £1,600,683 (2023: £1,168,727).
During the year, total sales to Curbstone Track Events, a subsidiary of SRO Motorsports Promotions (SA), amounted to £18,214 (2023: £104,062) and total purchases from Curbstone Track Events were £nil (2023: £18,019).
During the year, total sales to SRO Motorsports Asia Limited, a fellow subsidiary, amounted to £410,232 (2023: £701,692) and total purchases from SRO Motorsports Asia Limited were £626,213 (2023: £709,175).
At the year end the Company had the following balances due from/(to) related parties. All of the companies below are fellow subsidiaries of SRO Motorsports Europe Limited:
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SRO Motorsport Promotion (SA)
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Australian GT Racing (PTY) Limited
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Post balance sheet events
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There have been no significant events affecting the Company and the Group since the year end.
The immediate and ultimate parent company is SRO Sports Limited, a company registered and incorporated in Cyprus.
The ultimate controlling party is considered to be S Ratel, the director of the Company, by virtue of his shareholding in SRO Sports Limited.
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