Company No: 09581593 (England and Wales)

Contents

• Company Information
• Balance Sheet
• Notes to the Financial Statements

DIRECTOR

Jason Robins

REGISTERED OFFICE	3rd Floor 1 Ashley Road
	Altrincham
	WA14 2DT
	United Kingdom

COMPANY NUMBER

09581593 (England and Wales)

AUDITOR	Dixon Wilson Audit Services LLP
	22 Chancery Lane
	London
	WC2A 1LS

		2021		2020
		£		£
Current assets
Debtors	3	2,498,256		2,071,585
Cash at bank and in hand		5,191		9,157
		2,503,447		2,080,742
Creditors
Amounts falling due within one year	4	( 1,477,939)		( 1,689,911)
Net current assets		1,025,508		390,831
Total assets less current liabilities		1,025,508		390,831
Net assets		1,025,508		390,831
Capital and reserves
Called-up share capital		1		1
Profit and loss account		1,025,507		390,830
Total shareholders' funds		1,025,508		390,831

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of DKUK Services Ltd (registered number: 09581593) were approved and authorised for issue by the Director on 22 December 2022. They were signed on its behalf by:

Jason Robins Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

Taxation

General information

The company is a private company limited by share capital incorporated in England and Wales.

The address of its registered office is:
3rd Floor 1 Ashley Road
Altrincham
Cheshire
WA14 2DT

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis. The company's only source of income is from its parent company and is therefore wholly reliant on the continuing support of its parent company to continue as a going concern. Its parent company has indicated that it will continue to provide financial support to the company while it has the resources to do so. Since the year end, the parent company has continued to provide financial support and expects to have sufficient resources to support DKUK Services Limited for at least 12 months. However, the parent company has suffered recurring losses and negative cashflows from operations, and expects to continue to do so for the foreseeable future. Despite this, the parent company raised significant financing in 2021 through the issuance of convertible debt to mitigate against the recurring losses and negative cashflows. As a result, in 2022 the parent company has seen sustained improvement in revenue as compared to the prior year.

Revenue recognition

Turnover represents amounts chargeable in respect of services provided to the parent company and is recognised in the period in which services are provided.

Foreign currency transactions and balances

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. Exchange differences are taken to the profit and loss account.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Leases

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments.

Share based payments

The cost of transactions with employees settled in equity instruments of the parent company is measured by reference to the fair value of the equity instruments granted at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined using an appropriate pricing model. In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the shares of the company (market conditions) and non vesting conditions. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market or non vesting condition, which are treated as vesting irrespective of whether or not the market or non vesting condition is satisfied, provided that all other performance conditions are satisfied. At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management's best estimate of the achievement or otherwise of non-market conditions and of the number of equity instruments that will ultimately vest or in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement in cumulative expense since the previous balance sheet date is recognised in the profit and loss account, with a corresponding entry to recognise the resulting liability owed to the parent company. Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognised over the original vesting period. In addition, an expense is recognised over the remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if this difference is negative. Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the profit and loss account for the award is expensed immediately.

2. Employees

	2021		2020
	Number		Number
The average number of persons employed by the company during the year was	4		3

3. Debtors

	2021		2020
	£		£
Amounts owed by Group undertakings	1,215,382		1,552,572
Deferred tax asset	520,013		0
Other debtors	762,861		519,013
	2,498,256		2,071,585

4. Creditors: amounts falling due within one year

	2021		2020
	£		£
Other taxation and social security	1,205,898		1,498,010
Other creditors	272,041		191,901
	1,477,939		1,689,911

5. Audit Opinion

The auditor's report on the accounts for the financial year ended 31 December 2021 was unqualified.

The audit report was signed by Steven Wakefield on behalf of Dixon Wilson Audit Services LLP.

6. Ultimate controlling party

The company's immediate parent is DK Crown Holdings Inc. incorporated in USA.

The ultimate parent company producing publicly available financial statements is DraftKings Inc. These financial statements are available upon request from DraftKings Inc. Its registered office is 5th Floor, 222 Berkley Street, Boston, MA 02116, USA.