Capsicum Motorsport Simulation Limited - Limited company accounts 16.1

REGISTERED NUMBER: 07963010 (England and Wales)

Report of the Directors and

Financial Statements

for the Year Ended 31st October 2015

for

CAPSICUM MOTORSPORT SIMULATION LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Profit and Loss Account

6

Balance Sheet

7

Notes to the Financial Statements

8

DIRECTORS:

G D Chilton

R W Swallow

REGISTERED OFFICE:

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

REGISTERED NUMBER:

07963010 (England and Wales)

AUDITORS:

Simpson Wreford & Partners

Chartered Accountants & Statutory Auditors

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

BANKERS:

Lloyds TSB

10 Booth Street

Manchester

M2 4AW

The directors present their report with the financial statements of the company for the year ended 31st October 2015.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the operation of a motorsport

entertainment centre.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st November 2014 to the date of

this report.

G D Chilton

R W Swallow

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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 of the profit or loss of the company for that period. In preparing these financial

statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies

Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to

have taken as a director in order to make himself aware of any relevant audit information and to establish that the

company's auditors are aware of that information.

AUDITORS

The auditors, Simpson Wreford & Partners, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to

small companies.

ON BEHALF OF THE BOARD:

R W Swallow - Director

13th July 2016

We have audited the financial statements of Capsicum Motorsport Simulation Limited for the year ended

31st October 2015 on pages six to twelve. The financial reporting framework that has been applied in their

preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective April 2008) (United

Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).

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 a Report of the Auditors 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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or

error. This includes an assessment of: whether the accounting policies are appropriate to the company's

circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant

accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we

read all the financial and non-financial information in the Report of the Directors to identify material inconsistencies

with the audited financial statements and to identify any information that is apparently materially incorrect based on,

or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become

aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st October 2015 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and

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

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Directors for the financial year for which the financial

statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where 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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Deborah Wilkes (Senior Statutory Auditor)

for and on behalf of Simpson Wreford & Partners

Chartered Accountants & Statutory Auditors

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

18th July 2016

TURNOVER

406,061

406,777

Cost of sales

95,815

251,362

GROSS PROFIT

310,246

155,415

Distribution costs

86,058

96,144

Administrative expenses

445,426

384,771

531,484

480,915

OPERATING LOSS

2

(221,238

)

(325,500

)

Interest payable and similar charges

8,777

9,419

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION

(230,015

)

(334,919

)

Tax on loss on ordinary activities

3

-

-

LOSS FOR THE FINANCIAL YEAR

(230,015

)

(334,919

)

FIXED ASSETS

Tangible assets

4

549,056

378,241

Investments

5

1

1

549,057

378,242

CURRENT ASSETS

Debtors

6

103,174

140,995

Cash at bank and in hand

16,127

9,732

119,301

150,727

CREDITORS

Amounts falling due within one year

7

150,357

115,110

NET CURRENT (LIABILITIES)/ASSETS

(31,056

)

35,617

TOTAL ASSETS LESS CURRENT LIABILITIES

518,001

413,859

CREDITORS

Amounts falling due after more than one year

8

1,913,795

1,579,638

NET LIABILITIES

(1,395,794

)

(1,165,779

)

CAPITAL AND RESERVES

Called up share capital

10

100

100

Profit and loss account

11

(1,395,894

)

(1,165,879

)

SHAREHOLDERS' FUNDS

(1,395,794

)

(1,165,779

)

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved by the Board of Directors on 13th July 2016 and were signed on its behalf by:

R W Swallow - Director

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The accounts have been drawn up on a going concern basis as the beneficial owner of the group has indicated

his intention to continue providing financial support to the company and the group by way of loans. The

directors anticipate that the company will achieve profitability in the forthcoming year.

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover

Turnover represents income received from the operation of a motorsport entertainment centre, excluding

value added tax and is recognised when the service or goods have been provided.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Short leasehold 5% on cost

Plant and machinery 20% on cost

Computer equipment 20% / 25% on cost

Deferred tax

Deferred tax liabilities are recognised on all taxable temporary timing differences and deferred tax assets are

recognised to the extent that it is probable that taxable profits will be available against which deductible

temporary differences can be utilised. Unrecognised tax assets are reassessed at each balance sheet date and

are recognised to the extent that it has become probable that future tax profits will allow for the deferred tax

asset to be recovered.

2.	OPERATING LOSS

The operating loss is stated after charging:

31.10.15

31.10.14

£

£

Depreciation - owned assets

69,749

230,960

Directors' remuneration and other benefits etc

-

-

3.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose on ordinary activities for the year ended 31st October 2015 nor for the

year ended 31st October 2014.

Factors that may affect future tax charges

The company has taxable losses of £611,018 (2014 - £489,538) available to carry forward and offset against

future trading profits.

4.	TANGIBLE FIXED ASSETS

Short

Plant and

Computer

leasehold

machinery

equipment

Totals

£

£

£

£

COST

At 1st November 2014

19,087

812,399

119,595

951,081

Additions

-

237,094

3,470

240,564

At 31st October 2015

19,087

1,049,493

123,065

1,191,645

DEPRECIATION

At 1st November 2014

1,993

527,609

43,238

572,840

Charge for year

955

42,630

26,164

69,749

At 31st October 2015

2,948

570,239

69,402

642,589

NET BOOK VALUE

At 31st October 2015

16,139

479,254

53,663

549,056

At 31st October 2014

17,094

284,790

76,357

378,241

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1st November 2014

and 31st October 2015

1

NET BOOK VALUE

At 31st October 2015

1

At 31st October 2014

1

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Puretech Racing Limited

Nature of business: Dormant Company

%

Class of shares:

holding

Ordinary

100.00

31.10.15

31.10.14

£

£

Aggregate capital and reserves

(1

)

(1

)

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.15

31.10.14

£

£

Trade debtors

8,475

13,456

VAT

14,858

-

Prepayments and accrued income

79,841

127,539

103,174

140,995

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.15

31.10.14

£

£

Trade creditors

106,641

54,286

Social security and other taxes

4,295

2,480

VAT

-

1,813

Other creditors

8,921

2,815

Accruals and deferred income

30,500

53,716

150,357

115,110

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.10.15

31.10.14

£

£

Amounts owed to group undertakings

1,187,725

1,134,808

Directors' loan accounts

726,070

444,830

1,913,795

1,579,638

9.	OPERATING LEASE COMMITMENTS

The following operating lease payments are committed to be paid within one year:

31.10.15

31.10.14

£

£

Expiring:

Between one and five years

50,000

50,000

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.10.15

31.10.14

value:

£

£

100

Ordinary Shares

£1

100

100

11.

RESERVES

Profit

and loss

account

£

At 1st November 2014

(1,165,879

)

Deficit for the year

(230,015

)

At 31st October 2015

(1,395,894

)

12.	ULTIMATE PARENT COMPANY

The company is an 80% owned subsidiary of Capsicum Motorsport Holdings Limited. Copies of that company's

accounts can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

G D Chilton, a director, continued to provide finance to the company during the year. The total balance owed

by the company at the year end was £486,541 (2014: £277,541). The loan is interest free and not repayable

within one year.

R W Swallow, a director, continued to provide finance to the company. The total balance owed by the

company at the year end was £239,530 (2014: £167,289). The loan is interest free and not repayable within

one year.

14.	RELATED PARTY DISCLOSURES

Capsicum Motorsport Holdings Limited

Parent Company

Included in creditors due after one year is a loan from Capsicum Motorsport Holdings Limited, which is interest

free and repayable after at least one years notice.

31.10.15

31.10.14

£

£

Amount due to related party at the balance sheet date

105,945

93,897

Capsicum Leasing Limited

Fellow subsidiary company

Included in creditors due after one year is a loan from Capsicum Leasing Limited, which is interest free and

repayable after at least one years notice.

31.10.15

31.10.14

£

£

Amount due to related party at the balance sheet date

1,081,780

1,040,911

15.	ULTIMATE CONTROLLING PARTY

The company is controlled by the director G D Chilton who owns the entire share capital of the parent

company Capsicum Motorsport Holdings Limited.