Champions UK PLC Company accounts

Champions UK PLC Company accounts

CHAMPIONS (UK) PLC - Company Information

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0 false false false true true false false false false false false true false false true true true true 2021-10-01 Sage Accounts Production Advanced 2021 - FRS102_2021 3,113 1,523 68 50 7 57 11 18 400 400 xbrli:pure xbrli:shares iso4217:GBP 04247448 2021-10-01 2022-09-30 04247448 2022-09-30 04247448 2021-09-30 04247448 2020-10-01 2021-09-30 04247448 2021-09-30 04247448 core:Subsidiary1 2021-10-01 2022-09-30 04247448 core:MotorVehicles 2021-10-01 2022-09-30 04247448 bus:RegisteredOffice 2021-10-01 2022-09-30 04247448 bus:OrdinaryShareClass1 2021-10-01 2022-09-30 04247448 bus:OrdinaryShareClass2 2021-10-01 2022-09-30 04247448 bus:OrdinaryShareClass3 2021-10-01 2022-09-30 04247448 bus:OrdinaryShareClass4 2021-10-01 2022-09-30 04247448 bus:OrdinaryShareClass5 2021-10-01 2022-09-30 04247448 bus:LeadAgentIfApplicable 2021-10-01 2022-09-30 04247448 bus:Director1 2021-10-01 2022-09-30 04247448 bus:Director2 2021-10-01 2022-09-30 04247448 bus:Director3 2021-10-01 2022-09-30 04247448 bus:Director4 2021-10-01 2022-09-30 04247448 bus:Director5 2021-10-01 2022-09-30 04247448 bus:Director6 2021-10-01 2022-09-30 04247448 core:WithinOneYear 2022-09-30 04247448 core:WithinOneYear 2021-09-30 04247448 core:MotorVehicles 2021-09-30 04247448 core:MotorVehicles 2022-09-30 04247448 core:AfterOneYear 2022-09-30 04247448 core:AfterOneYear 2021-09-30 04247448 core:UKTax 2021-10-01 2022-09-30 04247448 core:UKTax 2020-10-01 2021-09-30 04247448 core:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 04247448 core:RetainedEarningsAccumulatedLosses 2020-10-01 2021-09-30 04247448 bus:AllOrdinaryShares 2021-10-01 2022-09-30 04247448 bus:AllOrdinaryShares 2020-10-01 2021-09-30 04247448 core:RetainedEarningsAccumulatedLosses 2021-09-30 04247448 core:RetainedEarningsAccumulatedLosses 2020-09-30 04247448 core:RetainedEarningsAccumulatedLosses 2022-09-30 04247448 core:RetainedEarningsAccumulatedLosses 2021-09-30 04247448 core:ShareCapital 2022-09-30 04247448 core:ShareCapital 2021-09-30 04247448 core:BetweenOneFiveYears 2022-09-30 04247448 core:BetweenOneFiveYears 2021-09-30 04247448 core:CostValuation core:Non-currentFinancialInstruments 2022-09-30 04247448 core:Non-currentFinancialInstruments core:ProvisionsForImpairmentInvestments 2022-09-30 04247448 core:MotorVehicles 2021-09-30 04247448 core:LeasedAssetsHeldAsLessee core:MotorVehicles 2022-09-30 04247448 core:LeasedAssetsHeldAsLessee core:MotorVehicles 2021-09-30 04247448 bus:LeadAgentIfApplicable 2020-10-01 2021-09-30 04247448 bus:FRS102 2021-10-01 2022-09-30 04247448 bus:Audited 2021-10-01 2022-09-30 04247448 bus:FullAccounts 2021-10-01 2022-09-30 04247448 bus:LargeMedium-sizedCompaniesRegimeForAccounts 2021-10-01 2022-09-30 04247448 bus:PrivateLimitedCompanyLtd 2021-10-01 2022-09-30 04247448 bus:OrdinaryShareClass1 2022-09-30 04247448 bus:OrdinaryShareClass1 2021-09-30 04247448 bus:OrdinaryShareClass2 2022-09-30 04247448 bus:OrdinaryShareClass2 2021-09-30 04247448 bus:OrdinaryShareClass3 2022-09-30 04247448 bus:OrdinaryShareClass3 2021-09-30 04247448 bus:OrdinaryShareClass4 2022-09-30 04247448 bus:OrdinaryShareClass4 2021-09-30 04247448 bus:OrdinaryShareClass5 2022-09-30 04247448 bus:OrdinaryShareClass5 2021-09-30 04247448 bus:AllOrdinaryShares 2022-09-30 04247448 bus:AllOrdinaryShares 2021-09-30
COMPANY REGISTRATION NUMBER: 04247448
Champions UK PLC
Financial Statements
For the year ended
30 September 2022
Champions UK PLC
Financial Statements
Year ended 30 September 2022
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of income and retained earnings
11
Statement of financial position
12
Notes to the financial statements
13
Champions UK PLC
Officers and Professional Advisers
The board of directors
M J Hayes
R J Farthing
S R Reed
D Simms
L J Hayes
J J Hayes
Registered office
Barrington House
Leake Road
Costock
Loughborough
Leicestershire
LE12 6XA
Auditor
Streets Audit LLP
Chartered accountants & statutory auditor
Enterprise House
38 Tyndall Court
Commerce Road
Lynch Wood
Peterborough
Cambridgeshire
PE2 6LR
Champions UK PLC
Strategic Report
Year ended 30 September 2022
Introduction The Directors present their strategic report for Champions (UK) PLC for the year ended 30 September 2022. Business review The principal activity of the Company during the year was that of business consultancy and marketing services, combined with events management. During the year under review the Company continued to be affected by the Covid 19 pandemic, which again impacted upon the mix of business and scale of activity. The board and senior management team therefore continued to carefully manage the cost base and cashflows of the Company and focused resource and effort on those segments of the business where demand was stronger and there was scope for profitable growth and new client opportunities. As a consequence of this clear strategy and careful management, the board are pleased to report that the Company delivered a turnover of £26.9m (2021 £13.6m) and generated an operating profit of £3.8m (2021 £2.1m) and a profit before tax of £3.7m (2021 £2.0m) during the year. Allied to this, net current assets increased to £1.8m (2021 £1.4m) and cash remained steady at £1.1m (2021 £1.5m), which again reflects the discipline of prudent working capital management and cost control instilled into the business by its senior management team. Future Developments The Company is currently experiencing steadily increased demand for its service offerings, as the event and Talent management divisions gradually become more active and clients continue to seek support and advice to develop their own marketing and brand strategies, across a broad range of different channels. The business is well placed to react to this increasing demand and will continue to invest in its people, technology, systems and infrastructure to ensure that it remains focused on client service and delivery. The breadth and diversity of service offering that the Company is able to provide, via its various specialist divisions, means that it is well placed to support its clients as demand continues to grow and the impact of Covid 19 lessens. Accordingly the board are cautiously optimistic about the future prospects of the business and are committed to continuing to strategically invest and commit resource to generate sustainable and profitable growth in its core markets. S172 statement During the year ended 30 September 2022 the Board considers that as individuals and collectively it has acted in a way it considers, in good faith is most likely to promote the success of the Company for the benefit of its members as a whole, by having regard, among other matters to the: - Likely long term consequences of any decisions - Interests of the Company's employees - Need to foster the Company's relationships with its clients, suppliers and other business partners- Impact of the Company's operations on the community and environment - Importance of the Company maintaining its reputation for high standards of business conduct and behaviour- Need to act fairly The board considers the interests of a range of stakeholders impacted by the businesses activities and recognises that strong stakeholder engagement underpins its ability to achieve its strategic goals and to be successful. Key stakeholder relationships are regularly reviewed and assessed to see if they can be improved or enhanced, having regard to the relevance of each relationship and with the overarching aim of delivering consistent policy and decision making, such that management of the business and strategy is clear and understandable and guided by the long term strategic goals of the organisation. Principal risks and uncertainties As referred to above, the business has been affected by the impacts of Covid 19 but has been able to successfully manage these impacts and to maintain a strong position, which reflects its overall resilience and breadth of offering. Notwithstanding this, there is still uncertainty surrounding the ultimate long term impact of Covid 19 which, allied with increased levels of global uncertainty and volatility means that inherent uncertainty and risk remains prevalent across the broader domestic and international economies. As a consequence of these factors, the board will continue to be prudent in its management policy, asset and cash retention and overall strategies and will maintain the rigour and discipline referred to above, which will substantially mitigate the risks referred to. Financial key performance indicators The board approves an annual budget for the following year and monitors performance on a monthly basis, both against that budget and a comparison to the prior year. Management accounts are prepared on a monthly basis and these include a detailed profit and loss account, analysed by activity, cashflow statement, balance sheet and appropriate key performance indicators, which include: - Turnover by service line - Operating profit margin - Staff costs and head count - Cash generation and net current assets as a measure of liquidity
This report was approved by the board of directors on 30 March 2023 and signed on behalf of the board by:
R J Farthing
Director
Registered office:
Barrington House
Leake Road
Costock
Loughborough
Leicestershire
LE12 6XA
Champions UK PLC
Directors' Report
Year ended 30 September 2022
The directors present their report and the financial statements of the company for the year ended 30 September 2022 .
Directors
The directors who served the company during the year were as follows:
M J Hayes
R J Farthing
S R Reed
D Simms
L J Hayes
J J Hayes
Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
The company has chosen to set out in the strategic report information about the future developments of the company and the financial instruments.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 30 March 2023 and signed on behalf of the board by:
R J Farthing
Director
Registered office:
Barrington House
Leake Road
Costock
Loughborough
Leicestershire
LE12 6XA
Champions UK PLC
Independent Auditor's Report to the Members of Champions UK PLC
Year ended 30 September 2022
Opinion
We have audited the financial statements of Champions UK PLC (the 'company') for the year ended 30 September 2022 which comprise the statement of income and retained earnings, statement of financial position 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 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 company's affairs as at 30 September 2022 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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 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.
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 directors are responsible for the other information. 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. 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 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 1 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.
Jonathan Day
(Senior Statutory Auditor)
For and on behalf of
Streets Audit LLP
Chartered accountants & statutory auditor
Enterprise House
38 Tyndall Court
Commerce Road
Lynch Wood
Peterborough
Cambridgeshire
PE2 6LR
30 March 2023
Champions UK PLC
Statement of Income and Retained Earnings
Year ended 30 September 2022
2022
2021
Note
£000
£000
Turnover
4
26,913
13,611
Cost of sales
19,823
8,941
--------
--------
Gross profit
7,090
4,670
Administrative expenses
3,532
2,817
Other operating income
5
250
235
-------
-------
Operating profit
6
3,808
2,088
Other interest receivable and similar income
10
11
–
Interest payable and similar expenses
11
77
58
-------
-------
Profit before taxation
3,742
2,030
Tax on profit
12
629
507
-------
-------
Profit for the financial year and total comprehensive income
3,113
1,523
-------
-------
Dividends paid and payable
13
( 2,589)
( 1,512)
Retained earnings at the start of the year
501
490
-------
-------
Retained earnings at the end of the year
1,025
501
-------
-------
All the activities of the company are from continuing operations.
Champions UK PLC
Statement of Financial Position
30 September 2022
2022
2021
Note
£000
£000
£000
Fixed assets
Tangible assets
14
11
18
Current assets
Debtors
16
9,773
9,433
Cash at bank and in hand
1,141
1,472
--------
--------
10,914
10,905
Creditors: amounts falling due within one year
17
9,159
9,518
--------
--------
Net current assets
1,755
1,387
-------
-------
Total assets less current liabilities
1,766
1,405
Creditors: amounts falling due after more than one year
18
691
854
-------
-------
Net assets
1,075
551
-------
-------
Capital and reserves
Called up share capital
22
50
50
Profit and loss account
23
1,025
501
-------
----
Shareholders funds
1,075
551
-------
----
These financial statements were approved by the board of directors and authorised for issue on 30 March 2023 , and are signed on behalf of the board by:
R J Farthing
Director
Company registration number: 04247448
Champions UK PLC
Notes to the Financial Statements
Year ended 30 September 2022
1. General information
The company is a public company limited by shares, incorporated in the United Kingdom, registered in England and Wales. The address of the registered office is Barrington House, Leake Road, Costock, Loughborough, Leicestershire, LE12 6XA. The principal activity of the Company during the year was that of marketing, PR, sports management and events management.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Champions Group Holdings Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historic experience. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as disclosed in the accounting policies.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Motor vehicles
-
25% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.
Financial instruments
The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2022
2021
£000
£000
Rendering of services
26,913
13,611
--------
--------
The whole of the turnover is attributable to the principal activity of the company. 100% of the turnover was generated within the United Kingdom (2021 100%).
5. Other operating income
2022
2021
£000
£000
Government grant income
22
213
Other operating income
228
22
----
----
250
235
----
----
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2022
2021
£000
£000
Depreciation of tangible assets
7
20
Gains on disposal of tangible assets
–
( 11)
Impairment of trade debtors
48
(1)
Foreign exchange differences
( 1)
5
----
----
7. Auditor's remuneration
2022
2021
£000
£000
Fees payable for the audit of the financial statements
9
8
----
----
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
2
2
----
----
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2022
2021
No.
No.
Administrative staff
65
67
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2022
2021
£000
£000
Wages and salaries
1,692
1,590
Social security costs
156
128
Other pension costs
240
36
-------
-------
2,088
1,754
-------
-------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2022
2021
£000
£000
Remuneration
72
58
Company contributions to defined contribution pension plans
201
–
----
----
273
58
----
----
10. Other interest receivable and similar income
2022
2021
£000
£000
Interest on cash and cash equivalents
11
–
----
----
11. Interest payable and similar expenses
2022
2021
£000
£000
Interest on banks loans and overdrafts
67
48
Interest on obligations under finance leases and hire purchase contracts
10
10
----
----
77
58
----
----
12. Tax on profit
Major components of tax expense
2022
2021
£000
£000
Current tax:
UK current tax expense
702
395
Adjustments in respect of prior periods
( 73)
112
----
----
Total current tax
629
507
----
----
----
----
Tax on profit
629
507
----
----
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2021: higher than) the standard rate of corporation tax in the UK of 19 % (2021: 19 %).
2022
2021
£000
£000
Profit on ordinary activities before taxation
3,742
2,030
-------
-------
Profit on ordinary activities by rate of tax
711
386
Adjustment to tax charge in respect of prior periods
( 73)
112
Effect of expenses not deductible for tax purposes
( 9)
6
Effect of capital allowances and depreciation
–
7
Group relief
–
( 4)
-------
-------
Tax on profit
629
507
-------
-------
13. Dividends
2022
2021
£000
£000
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
2,589
1,512
-------
-------
14. Tangible assets
Motor vehicles
£000
Cost
At 1 October 2021 and 30 September 2022
68
----
Depreciation
At 1 October 2021
50
Charge for the year
7
----
At 30 September 2022
57
----
Carrying amount
At 30 September 2022
11
----
At 30 September 2021
18
----
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Motor vehicles
£000
At 30 September 2022
2
----
At 30 September 2021
5
----
15. Investments
Shares in group undertakings
£000
Cost
At 1 October 2021 and 30 September 2022
400
----
Impairment
At 1 October 2021 and 30 September 2022
400
----
Carrying amount
At 30 September 2022
–
----
At 30 September 2021
–
----
Subsidiaries, associates and other investments
Class of share
Percentage of shares held
Subsidiary undertakings
Champions Subsidiary 1 Limited (Dormant)
Ordinary
99.5
16. Debtors
2022
2021
£000
£000
Trade debtors
3,625
4,392
Amounts owed by group undertakings
3,603
2,800
Prepayments and accrued income
2,219
2,021
Directors loan account
–
9
Other debtors
326
211
-------
-------
9,773
9,433
-------
-------
17. Creditors: amounts falling due within one year
2022
2021
£000
£000
Bank loans and overdrafts
113
134
Trade creditors
2,354
2,115
Accruals and deferred income
5,517
6,060
Corporation tax
700
670
Social security and other taxes
401
436
Obligations under finance leases and hire purchase contracts
52
79
Other creditors
22
24
-------
-------
9,159
9,518
-------
-------
Bank loans are secured over freehold property owned by the ultimate parent company. Obligations under hire purchase contracts are secured on the assets to which the relate.
18. Creditors: amounts falling due after more than one year
2022
2021
£000
£000
Bank loans and overdrafts
691
805
Obligations under finance leases and hire purchase contracts
–
49
----
----
691
854
----
----
Included within creditors: amounts falling due after more than one year is an amount of £225,887 (2021: £346,882) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
Included in Bank loans is a loan with amounts totalling £134,077 (2021 £195,803) due after more than five years. Repayments are made monthly and interest is charged at a rate of 2.7%. Included in Bank loans is a loan with amounts totalling £91,810 (2021 £151,079) due after more than five years. Repayments are made monthly and interest is charged at a rate of 2.55%.
Bank loans are secured over freehold property owned by the ultimate parent company. Obligations under hire purchase contracts are secured on the assets to which the relate.
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2022
2021
£000
£000
Not later than 1 year
52
79
Later than 1 year and not later than 5 years
–
49
----
----
52
128
----
----
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 239,980 (2021: £ 35,808 ).
21. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2022
2021
£000
£000
Recognised in other operating income:
Government grants released to profit or loss
22
213
----
----
22. Called up share capital
Issued and called up
2022
2021
No.
£000
No.
£000
Ordinary Class A shares of £ 1 each
25,000
25
25,000
25
Ordinary Class B shares of £ 1 each
12,500
13
12,500
13
Ordinary Class C shares of £ 1 each
2,500
3
2,500
3
Ordinary Class D shares of £ 1 each
2,500
3
2,500
3
Ordinary Class E shares of £ 1 each
2,500
3
2,500
3
Ordinary Class F shares of £1 each
2,500
3
2,500
3
Ordinary Class G shares of £1 each
2,500
3
2,500
3
--------
----
--------
----
50,000
50
50,000
50
--------
----
--------
----
Shares issued and partly paid
2022
2021
No.
£000
No.
£000
Ordinary Class A shares - £0.25 paid of £ 1 each
25,000
6
25,000
6
Ordinary Class B shares - £0.25 paid of £ 1 each
12,500
3
12,500
3
Ordinary Class C shares - £0.25 paid of £ 1 each
2,500
1
2,500
1
Ordinary Class D shares - £0.25 paid of £ 1 each
2,500
1
2,500
1
Ordinary Class E shares - £0.25 paid of £ 1 each
2,500
1
2,500
1
Ordinary Class F shares - £0.25 paid of £1 each
2,500
1
2,500
1
Ordinary Class G shares - £0.25 paid of £1 each
2,500
1
2,500
1
--------
----
--------
----
50,000
13
50,000
13
--------
----
--------
----
All shares hold equal rights.
23. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2022
2021
£000
£000
Not later than 1 year
127
143
Later than 1 year and not later than 5 years
38
148
----
----
165
291
----
----
25. Directors' advances, credits and guarantees
At the start of the year there was £9,375 owed by a director, this was transferred to the parent company during the year. No interest has been charged.
26. Related party transactions
The company has taken advantage of the exemptions available under FRS1020 relating to the disclosure of related party transactions with other members of the Champions Group Holdings Limited group. During the year the company made the following related party transactions:- Barrington Trust A director is a trustee of the trust. During the year, the company paid rent of £75,000 (2021 £75,000) and pension payments £200,000 (2021 £Nil) to the trust. At the year end a balance of £Nil (2021 £22,500) was due to the Trust. Cynthia Neal Settlement Trust A shareholder of the parent company is a trustee of the trust. During the year, the company paid rent of £89,722 (2021 £48,000) to the trust. At the year end a balance of £12,000 (2021 £12,000) was due to the Trust. British Par 3 Championship Limited This company is controlled by a director. During the year, the company made sales of £Nil(2021 £63,000) to British Par 3 Championship Limited. At the year end a balance of £Nil(2021 £63,000) was due to the company. Champions PR Limited This company is controlled by a director. During the year, the company loaned £Nil (2021 £20,000) to Champions PR Limited. At the year end a balance of £Nil (2021 £20,000) was due to the company. SimCom Media Limited This company is controlled by a director. During the year, the company made purchases of £Nil (2021 £15,468) from SimCom Media Limited. At the year end a balance of £Nil (2021 £Nil) was due to the company. D Simms Director During the year, the company made purchases of £6k (2021 £Nil) from S Simms. At the year end a balance of £Nil (2021 £Nil) was due to or from the company. MM Media Partners Limited This company is controlled by a director. During the year, the company made sales of £50,843 (2021 £Nil) to MM Media Partners Limited. At the year end a balance of £Nil(2021 £Nil) was due from the company. Motivational Speakers Agency Limited This company is controlled by a director. During the year, the company recharged costs of £113,211 (2021 £Nil) to Motivational Speakers Agency Limited. At the year end a balance of £Nil(2021 £Nil) was due from the company. Influencer Matchmaker Limited This company is controlled by a director. During the year, the company recharged costs of £109,596 (2021 £Nil) to Influencer Matchmaker Limited. At the year end a balance of £Nil(2021 £Nil) was due from the company. Diginius Limited An investment is held in this company by a group company. During the year, the company made sales of £19,466 (2021 £Nil) and purchases of £46,410 (2021 £Nil). At the year end a balance of £5,795 (2021 £Nil) was due to the company.
27. Controlling party
The company's immediate and ultimate parent company Champions Group Holdings Limited, a company incorporated in England and Wales. The address of the registered office is Barrington House Leake Road, Costock, Loughborough, England, LE12 6XA. Copies of the consolidated financial statements of Champions Group Holdings Limited are available from Companies House. The Directors do not consider there to be an ultimate controlling party.