Company registration number: 01711515
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their strategic report for the Company for the year ended 31 March 2025.
The Company made a profit before tax of £3,836,001 in comparison with a profit before tax of £3,934,648 in 2024. The directors have not proposed dividends for the year.
The Company continues to develop, manufacture, sell and operate Amusement Machines.
In 2024/25 the business continued to make a profit.
Sales were down £4.3m in the year at £40.1m when compared to the year to 31 March 2024. This was mainly due to decreased sales of Amusement Machines in the US and Merchandise sales. Other segments of the business increased or more or less maintained prior year’s results. Amusement Machine sales saw the largest decrease in revenues with Amusement Machine sales down £3.9m in the year at £31.1m and Merchandise sales down £0.5m in the year at £0.6m, when compared to the period 31 March 2024. Spares sales increased in the year, when compared to 2024 results, by £0.2m in the year at £2.4m. Operations revenue decreased by £0.1m in the year at £6.0m.
The majority of markets still maintain a positive return to business post COVID-19. UK sales were up by £1.9m in the year at £16.1m, European sales were up by £0.6m in the year at £8.7m and the rest of the world was down by £6.8m in the year at £15.3m. Trade debtors increased by £0.3m against the previous year to £10.0m. Stock levels have decreased by £2.2m resulting in a closing stock of £6.4m at 31 March 2025. Some further R&D investment was made in the year. UK Operations business continued to grow.
The Directors have ensured structure and stability have been maintained post management buy-out that took place on 30 March 2021 when Kaizen Entertainment Limited acquired the entire share capital of Sega Amusements International Limited.
The current outlook for 2026 is positive, with forecasts showing a continued and maintained business at pre-pandemic levels and above.
Alongside sales and profit, stock levels, debtor balance and days, Net current assets are monitored regularly. All business units are measured against annual budgets with variance analysis performed monthly and monitored accordingly.
The decrease in closing stock levels is due to a reduction in raw materials, aged stock and general stock holding.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The Directors are confident that the business is in a strong position to continue to overcome and withstand any remaining adverse business effects of the pandemic.
The potential law changes in European countries which can restrict the import of Amusement machines continues to be a possibility. With ever-changing technology there is always an inventory risk of a new technological product launched on the market by a competitor. To help mitigate this, the company continues to look for new ideas. The company continues to be faced with the possibility of exchange risk, but this is reduced by the utilisation of foreign currencies in both selling and purchasing of goods from abroad.
Early 2025 the US introduced new tariffs on certain categories of goods imported into the US from China and other countries resulting in increased import duties. This has resulted in some reduction to gross profits and partly offset by increasing selling prices to account for some of the new duties.
Sales have continued to grow despite interest rates rises and any potential global recession.
The additional customs paperwork and procedures introduced post Brexit, continue to add additional administration duties but have not hindered business activity.
Directors' statement of compliance with duty to promote the success of the Company
The directors continue to strive and promote the success of the Company for the benefit of its members as a whole. The success of the Company is dependent on the support of all stakeholders.The directors recognise and encourage employee engagement. The company publishes monthly key business updates. Communication with staff internally, teambuilding and training events are conducted throughout the year. Staff are encouraged to communicate through line managers and senior staff. A healthy percentage of employees are long serving staff. The Company maintains a strong relationship with its Suppliers and Customers, which is fostered through social-media, direct communication and participation at tradeshows.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £3,145,482 (2024 -£3,168,832).
The directors do not recommend the payment of a dividend.
The directors who served during the year were:
The company continues to develop new games for the market and the cost of this development is amortised over the expected selling period of each game.
The company has chosen in accordance with Section 414c(11) of the Companies Act 2006 (Strategic Report and Director's Report) Regulation 2013 to set out within the company's Strategic Report the Company's Report Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008. This included information that would have been included in the business review and details of principal risk and uncertainties.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
In accordance with the requirements of the Energy and Carbon Reporting (SECR) regulations, the Directors would like to disclose the following information for the year ended 31 March 2025:
Methodologies used within calculation:
Raw energy data at site level from direct invoices or landlord recharges and passenger vehicles miles based on Cars size. All scope 1, 2 & 3 emissions converted to GHG emissions using standard UK carbon conversion factors.
Raw energy data at site level from direct invoices or landlord recharges and passenger vehicles miles based on Cars size. All scope 1, 2 & 3 emissions converted to GHG emissions using standard UK carbon conversion factors.
The auditors, Menzies 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEGA AMUSEMENTS INTERNATIONAL LIMITED
We have audited the financial statements of Sega Amusements International Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of comprehensive income, the Statement of financial position, 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 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEGA AMUSEMENTS INTERNATIONAL LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEGA AMUSEMENTS INTERNATIONAL LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.
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:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
°The Companies Act 2006;
°Financial Reporting Standard 102;
°UK Employment Legislation;
°UK Health and Safety Legislation;
°General Data Protection Regulation; and
°UK Tax Legislation.
∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company are complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgements made by management in its significant accounting estimates; and Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount;
°Timing of revenue recognition; and
°The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in their best interests.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SEGA AMUSEMENTS INTERNATIONAL LIMITED (CONTINUED)
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 Auditor's 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 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 Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
Ashcombe House
5 The Crescent
Surrey
KT22 8DY
Date:
Date:
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 27 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Sega Amusements International Limited is a private Company limited by shares and incorporated in the UK. The Company is domiciled in the United Kingdom and its principal place of business can be found on the Company information page.
The principal activity of the Company is to develop, manufacture, sell and operate amusement machines.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Kaizen Entertainment Limited as at 31 March 2025 and these financial statements may be obtained from Companies House.
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Revenue is the total amount receivable by the Company in the ordinary course of business for goods supplied, rental assets and services provided, excluding VAT and trade discounts, during the year. Revenue is recognised for goods supplied when all substantial risks and rewards have been passed on to customers. Income from rental assets is recognised when the right arises under the rental agreement. Service revenues are recognised when the service has been provided.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Research and development
Expenditure on research activities is recognised in the profit and loss account as an expense as incurred.
Expenditure on development activities may be capitalised if the product or process is technically and commercially feasible and the Company intends and has the technical ability and sufficient resources to complete development, future economic benefits are probable and if the Company can measure reliably the expenditure attributable to the intangible asset during its development. Development activities involve design for, construction or testing of the production of new or substantially improved products or processes. The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads. Other development expenditure is recognised in the profit and loss account as an expense is incurred. Capitalised development expenditure is stated at cost less accumulated amortisation and less accumulated impairment losses.
Amortisation
Amortisation is charged to the profit or loss on a straight-line basis over the estimated useful lives of intangible assets. Intangible assets are amortised from the date they are available for use.
The estimated useful lives range as follows:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The basis for choosing these useful lives is based on the period the Company expects to sell the game relating to that development cost.
The Company reviews the amortisation period and method when events and circumstances indicate that the useful life may have changed since the last reporting date.
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.
The estimated useful lives range as follows:
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.
The operating equipment (rental assets) additions wholly represent the transfer of operating machines from stock as detailed in 2.12 below. Disposals are in relation to transfer of assets at NBV to stock as they become available for third party sale.
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the actual cost and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition.
In the case of manufactured stock and work in progress, cost includes an appropriate share of overheads based on normal operating capacity. Operating machines held in stock are capitalised at cost (as detailed in paragraph 1 above) when an operating lease arrangement has been agreed with third parties for leasing the machine.
Purchases are recognised as company stock once they have been despatched by the supplier.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
10.Taxation (continued)
There were no factors that may affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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