Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2021
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ONE REBEL LIMITED
COMPANY INFORMATION
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ONE REBEL LIMITED
CONTENTS
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ONE REBEL LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The principal activity of the Company and Group is the provision of boutique gym classes to the public.
The Group's business model is focused on offering a premium class fitness experience, led by expert instructors and delivered at world class design-led facilities. The Group is pursuing a roll out strategy to achieve cost efficiency at scale, in turn delivering strong financial returns for investors.
The Group's key financial performance indicators during the year were as follows:
We are pleased to report that the business has continued its recovery throughout 2022, and in January 2023 it has reached record levels of attendance and revenue. The business will continue to execute on its roll out strategy in its target markets.
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ONE REBEL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
The ultimate responsibility for risk management of the Group rests with the Board, who delegate responsibility for identifying, monitoring and managing risk to the operational management team of the Group.
The Directors have identified the following to be the key risks associated with the business and the related mitigating steps to manage or reduce their impact:
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ONE REBEL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
This report was approved by the board on 22 March 2023
and signed on its behalf.
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ONE REBEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The directors present their report and the financial statements for the year ended 31 December 2021.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the
consolidated
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 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 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 Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙
select suitable accounting policies for the Group's financial statements 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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the Company and Group is the provision of boutique gym services to the public.
The loss for the year, after taxation, amounted to £3,594,176 (2020 - loss £2,788,315).
The directors who served during the year were:
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ONE REBEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Ultimate responsibility for financial risk management rests with the Board of Directors. The Group’s policy towards risk management is to take an active approach to identify and manage financial risks and ensure that adequate risk management systems are in place within the group such that risks are adequately identified and appropriately managed. Financial asset and liability transactions are structured to enable the achievement of planned outcomes, reduce volatility and increase certainty.
The Group has exposure to the following financial risks: Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Key market risks affecting the Group include foreign currency exchange rate risk and interest rate risk. Financial instruments affected by market risk include borrowings, deposits and derivative financial instruments. Foreign exchange risk arises on transaction and translation exposures. The two main types of transactions generating exposure are financing transactions and operating transactions. Financing exposures come from foreign currency financing activities such as asset purchases, asset sales, capital returns and intercompany loan repayments. The translation exposure arises from the consolidation of the financial statements of the Company’s foreign subsidiary whose presentation currency is different to that of the Group. The risk is that changes in the exchange rate will result in changes in the value of a subsidiary’s assets, liabilities, income and expenses. Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Significant interest rate risk does not arise from the Group’s borrowings as they are at fixed interest rates. The majority of residual interest rate risk comes from deposits. Credit risk The Group’s principal financial assets are bank balances and cash, trade and other receivables, and derivative financial instruments. The Group’s other receivables largely comprise security deposit payments, on which the credit risk is not concentrated as it is spread over several counterparties. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows, matching the maturity profiles of financial assets and operational liabilities and by maintaining adequate cash reserves. Future developments A summary of future developments has been included in the Strategic report. Going concern The directors have considered base case, down-side and reverse stress tests forecasts, which included the evaluation of significant downside scenarios such a material drop in demand. The Directors recognise that the term on £5.4m convertible loan notes ends on 28 May 2023 and in the event the holders do not opt to convert to equity then the principal and interest relating to these notes will have to be repaid. In addition, as a result of deferred liabilities relating to trading during the COVID-19 pandemic the company has a working capital requirement of £4m to bridge its trading until 2024 when the Company is forecasted to become cash flow positive. As a result the company will need to secure additional equity investment or debt which has not yet been agreed.
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ONE REBEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
As at the date of signature of these financial statements the company is actively conducting an equity investment process, facilitated by its professional advisers, to raise the required capital. The Directors are confident of achieving a successful outcome, however in light of the risk associated with any fundraising process, the directors have recognised this as a material uncertainty that may cast significant doubt over the Group and Company's ability to continue as a going concern. For more information with regard to going concern and the basis of preparation of the financial statements see note 2.3: Going concern.
Please see note 33 for post balance sheet events within the financial statements.
The auditors, Haysmacintyre LLP, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board on
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ONE REBEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ONE REBEL LIMITED
We have audited the financial statements of One Rebel Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2021, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
We draw attention to note 2.3 in the financial statements As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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ONE REBEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ONE REBEL LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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ONE REBEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ONE REBEL 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 Auditors' 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 Group 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:
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included: • inspecting correspondence with regulators and tax authorities • inquires with management including consideration of known or suspected instances of non-compliance with laws and regulations such as minimum wage legislation, health and safety legislation and fraud; • evaluating management’s controls designed to prevent and detect irregularities; • identifying and testing journals, in particular journal entries posted with unusual account combinations, postings with high value transactions or rounded entries; and • challenging assumptions and judgements made by management in their critical accounting estimates.
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 Auditors' 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 Auditors' 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.
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ONE REBEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ONE REBEL LIMITED (CONTINUED)
for and on behalf of
Statutory Auditors
10 Queen Street Place
EC4R 1AG
Date:
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ONE REBEL LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
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ONE REBEL LIMITED
REGISTERED NUMBER:
08827353
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 18 to 47 form part of these financial statements.
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ONE REBEL LIMITED
REGISTERED NUMBER:
08827353
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 18 to 47 form part of these financial statements.
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ONE REBEL LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2020
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ONE REBEL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2021
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2020
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ONE REBEL LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
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ONE REBEL LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
One Rebel Ltd (the "Company") is a private company, limited by shares, incorporated in England and Wales under the Companies Act 2006. The address of the registered office is stated on the Company information page and the nature of the Group's and Company's operations and principal activity are set out in the Strategic report and Director's report.
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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
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.
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.
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
The directors have carefully evaluated the Going Concern basis for these financial statements, including the potential ongoing impact of the COVID-19 pandemic, the prevalence of working from home, and cost inflation pressure from disruption to the global supply chain, exacerbated by the war in Ukraine.
Despite this challenging environment, trading since the balance sheet date has shown a positive trend with monthly attendance and revenue increasing through 2022, factoring in expected seasonality. Most notably in January 2023 the Group has returned to EBITDA profitability with a number of clubs beating their pre-COVID performance. The directors have considered base case, down-side and reverse stress tests forecasts, which included the evaluation of significant downside scenarios such as a material drop in demand. Based on reasonably expected scenarios and available market information the directors have confidence in the Group and Company's ability to continue as a going concern and as such continue to adopt the going concern basis in the preparing the accounts for the year ended 31 December 2021. The directors recognise that the term on £5.4m convertible loan notes ends on 28 May 2023 and in the event the holders do not opt to convert to equity then the principal and interest relating to these notes will have to be repaid. In addition, as a result of deferred liabilities relating to trading during the COVID-19 pandemic the company has a working capital requirement of £4m to bridge its trading until 2024 when the Company is forecasted to become cash flow positive. As a result the company will need to secure additional equity investment or debt which has not yet been agreed. As at the date of signature of these financial statements the company is actively conducting an equity investment process, facilitated by its professional advisers, to raise the required capital. The Directors are confident of achieving a successful outcome, however in light of the risk associated with any fundraising process, the directors have recognised this as a material uncertainty that may cast significant doubt over the Group and Company's ability to continue as a going concern. The financial statements do not include the adjustments that would be required if the Group and Company were unable to continue as a going concern.
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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 basis:
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.
At each reporting period end date, the Group reviews the carrying amounts of its tenagible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent ofo the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an idvidiual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate the reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cashflows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Consolidated statement of comprehensive income, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Employees are enrolled in a defined contribution scheme. Employer contributions to the scheme are charged as an expense as they are incurred.
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Intangible and tangible fixed assets, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual valie assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. There are two principal drivers of the temporary differences that are available for offset against future profits of the Group and which give rise to deferred tax assets. These are capital allowances and tax losses carried forward. Management has made various assumptions in assessing the extent to which deferred tax assets will be recovered. Uncertainties including those pertaining to the current economic climate and relevant market conditions, are taken into consideration when calculating the level of probable deferred tax utilisation. Changes to profitability forecasts and the level of losses and other assets forecast to be utilised impacts the level of unrecognised deferred tax assets.
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 28
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 29
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 30
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Legislation will be introduced to charge corporation tax and set the main rate at 25% and the small profits rate at 19% for the financial year beginning 1 April 2024.
Page 31
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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. The loss after tax of the parent Company for the year was £
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
14.
Intangible assets (continued)
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 34
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
15.
Tangible fixed assets (continued)
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 36
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 37
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Accruals and deferred income is compromised of accrued expenditure relating to lease incentives, goods and services not yet invoiced, and deferred income relating to long term performance obligations relating the company's franchise and licence agreements.
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 39
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
22.
Loans (continued)
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Share premium account
Foreign exchange reserve
Profit and loss account
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
A defined contribution pension scheme is operated by the Group for One Rebel UK Limited, the parent company within the Group. The pension cost charge represents contributions payable by the Company, to the fund and amounted to £39,386 (2020: 43,836) Contributions totalling £9,008 (2020: £6,117) were payable to the fund at the reporting date and are included in creditors.
Amounts contracted for but not provided in the financial statements amounted to £120,029 (2020: £1,245,450).
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 43
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 44
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
30.
Share based payments (continued)
In the view of the directors there is no sole ultimate controlling party.
The rise of the Omicrom COVID variant in December 2021 and the UK Government’s work from home order had further negative impact on London footfall which was felt well into 2022.
Despite the lifting of the work from home order on 27th January 2022, central London footfall has taken time to recover. This is evidenced by the Transport for London data which shows the number of journeys in the first half of the year was 27% lower than 2019, and in the second half of 2022 it was 20%. In addition demand was disrupted further by numerous tube and train strikes and two heat waves. Despite these challenges the attendance continued its recovery in 2022 and January 2023 the UK estate had over 123 thousand visits and a class occupancy of 65%. The pandemic has presented significant challenges for the sector, however it has also presented some opportunities for growth. In April 2022 the business acquired from Core Collective Health Limited, which had entered administration, the trade and assets related to their High Street Kensington and St John’s Wood sites. These sites continued to trade under the Core Collective brand until July 2022 when they were converted to 1Rebel clubs. We were delighted to expand our offering in West London and welcome new customers, trainers and employees to the brand. In January 2022 the business introduced its new Reformer concept at Oxford Circus, a class based upon the popular Pilates Reformer bed, but enhanced with to deliver the premium workout experience 1Rebel customers have come to expect. Due to unprecedented demand the business has since added two further Reformer studios at its Victoria and Angel clubs, and converted existing studios to Reformer at its Bayswater, High Street Kensington, St John’s Wood and Holborn clubs. As at the end of 2022 we had seven Reformer studios in operation and in January 2023 these studios were trading at an average occupancy in excess of 90%.
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
In 2022 the business has also faced increased costs, in particular utilities, laundry and labour. In response to this it has been necessary to implement modest price increases, however we are pleased to report that this has not impacted demand negatively. In order to maintain our competitive pricing, in the second half of 2022 we also introduced a range of minimum term memberships allowing customers to access the historic pricing if they increase their commitment. This has been positively received by our customer base with strong uptake of these memberships.
The directors believe that demand will continue to recover to its pre-COVID levels and that in the long term the business will benefit from our target demographic’s enhanced focus on health and wellness, however management remains cautious and maintains its focus on cost control and cash management.
The business has continued to pursue its international growth ambitions and in October 2022 we opened our flagship club for Dubai at ICD Brookfield Place in the Dubai International Financial Centre. Also in October, we opened our second club in Melbourne, Australia. Transactions with Core Collective Health Limited On 14 April 2022 the Group completed a business combination as follows: 1) One Rebel Limited obtained control of certain the assets and employees of Core Collective Health Limited related to its fitness business. 2) The leases for the High Street Kensington and St John’s Wood sites were assigned from Core Collective Health Limited to One Rebel (High Street Kensington) Limited, each lease with a residual term of 12 years. As a result of these transactions the Group also entered into a 3.5 year, finance lease agreement for assets located at the St John’s Wood site. Transactions with Sweat IT Group On 1 February 2022 the Group completed a business combination as follows: 1) One Rebel Limited obtained control of certain the assets and employees of Sweat IT Group Limited related to its fitness business. 2) The lease for the Covent Garden site was assigned from Sweat IT Kingsway Limited to a new wholly owned subsidiary of the Company, One Rebel (Covent Garden) Limited. The residual term on this lease was 11years. As a result of these transactions the Company entered into a 5.5 year finance lease agreement for assets located at the Covent Garden site. Subsequent to the completion of this transaction the site began trading in June 2022. However it suffered from lower demand and higher costs than anticipated, in particular utilities. On account of the ongoing losses at the site and a reassessment of its long term potential, in October 2022 the decision was taken to terminate the lease for the Covent Garden site. The club ceased trading on 30 November 2022 and in December 2022 the surrender of the lease was agreed with the landlord. Australian Convertible Loan Notes In October 2020 the company's Australian subsidiary, 1 R Australia Pty Limited, agreed a facility for the issue of $1.6m Australian Dollar 7% convertible loan notes 2022, attached to capital expenditure commitments, with phased conversion rights dependent on the timing of commencement of trade which may be exercised at the discretion of the noteholder. The loan notes issued held additional equity investment options at pre-determined prices, with the timing at the discretion of the subsidiary. The options expired in August 2022, 18 months after the commencement of trading, and as such an amortising loan of $1.8m has been recognised, which includes interest accrued from the issue of each note up until the expiry of the option. In accordance with the terms of the facility this loan has no equity conversion rights, shall be repayable in quarterly instalments over a term of four years, and the outstanding balance shall attract interest of 7% per annum.
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ONE REBEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Additional financing On the 8th April 2022 the Company and its convertible loan noteholders agreed the issue of an additional £1.4m of convertible loan notes on the same terms as the Tranche 1 notes already in issue, with an initial term ending on 28 May 2023. It was also agreed that the initial term on the £410,000 of Tranche 2 notes in issue be extended from 24 January 2022 to 28 May 2023 and that their equity conversion rights to be aligned with the Tranche 1 notes. As such all noteholders may at their discretion serve an irrevocable notice to convert the debt to equity a minimum of 30 days prior to the intended conversion date to the company at any time during the initial term, ending on 28 May 2023. The company has the right to serve a notice of repayment prior to the end of the initial term, however the noteholders have the right to pre-empt this by giving notice of conversion within 30 days of the notice of repayment. Property Lease Commitments In June 2022 the Company incorporated a new wholly owned subsidiary, One Rebel Middle East Fitness Limited, in the Dubai International Financial Centre (DIFC) in Dubai, United Arab Emirates. In August 2022 this subsidiary entered into a ten year lease for a new site in the DIFC. The new club at the ICD Brookfield Place opened in October 2022. In February 2022 1R Australia Pty Ltd, the Company’s wholly owned Australian subsidiary, entered into a 10 year lease for a site in Richmond, Melbourne Australia. The club fit out was completed and the it began trading in October 2022. In August 2021 the Company entered into a lease for a new London site in Ealing. On 7 June 2022 this lease was terminated on account of the fact the directors were concerned about footfall at maturity of the development in which the site was located. In addition the 16 December 2021 the Company entered into a new lease for additional space adjacent to the existing Angel studio in London for a term of 15 years. The unit was fit out as a new Reformer studio and it began trading in April 2022. Granting of Share options During 2022 and 2023 to date the Company has issued 418,460 share options under the Enterprise Management Incentive Plan with a weighted average exercise price of 7.9 pence. During the same period 657,947 share options with a weighted average exercise price of 7.9 pence have lapsed.
Page 47
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