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Registered number: 03931005









SUNSHINE CRUISE HOLIDAYS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
COMPANY INFORMATION


Directors
D R Townsley (resigned 30 June 2021)
C P Moore (resigned 20 March 2021)
O Rosenberger (resigned 31 May 2022)
D N Sourbutts (appointed 17 March 2021, resigned 24 December 2021)
B P Aguila (appointed 31 May 2022)




Company secretary
Y D Banwo



Registered number
03931005



Registered office
Office 310
Third Floor, Manchester Digital World

1 Lowry Plaza, The Quays

Salford

M50 3UB




Independent auditors
White Hart Associates (London) Limited
Chartered Accountants and Statutory Auditors

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA





 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 10
Consolidated Statement of Comprehensive Income
11
Consolidated Statement of Financial Position
12
Company Statement of Financial Position
13
Consolidated Statement of Changes in Equity
14
Company Statement of Changes in Equity
15
Consolidated Statement of Cash Flows
16
Consolidated Analysis of Net Debt
17
Notes to the Financial Statements
18 - 41

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

Introduction
 
The directors present their strategic report of the Company and the Group for the year ended 31 December 2021.

Business review
 
The Group is required by the Companies Act 2006 to set out in this report, a fair review of the business of the Group during the financial year ended 31 December 2021, the position of the Group at the end of the period and a description of the principal risks and uncertainties facing the Group. This review is prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed, and the business review should not be relied upon by any other party or for any other purpose.
The directors consider the results to be satisfactory given the challenges presented by the economic uncertainty caused by global travel restrictions resulting from the COVID-19 pandemic. The Group has reacted quickly to the COVID-19 pandemic by cutting costs where possible and positioning itself to be at the forefront of the industry when consumer demand picks up again.
The key performance indicators used by the directors to monitor the progress of the Group are set out below:-

2021
2020
£
£
Key performance indicators
Gross Retail Turnover ("GRT")

14,375,700

25,615,839

Gross profit

1,795,945

1,276,698

Gross profit as a percentage of GRT

12.49%

4.98%

Operating loss

(1,559,387)

(3,428,271)

Operating loss as a percentage of GRT

(10.85)%

(13.38)%

Loss before taxation

(1,712,846)

(3,424,271)

Loss before taxation as a percentage of GRT

(11.91)%

(13.37)%


Page 1

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Principal risks and uncertainties
 
The management of the business and the execution of the Group's strategy are subject to a number of risks. The key business risks and uncertainties affecting the Group are considered below.
- Economic uncertainty - The demand for cruises is affected by local economic conditions. The risk of new variants of COVID-19 and the ensuing volatility in exchange rates and consumer confidence creates a fragile trading environment. Despite the negative impact upon the cruise industry, the directors believe that the Group can quickly adapt to changes in the local market demand. The prolonged periods of restrictions to overseas travel, primarily up until May 2021, have obviously had a significant impact on tour operators. There is however pent-up demand, and this is being seen in the volume of forward bookings.
- Regulatory risk - The Group is exposed to various regulators, including the Civil Aviation Authority ("CAA") which issues an Air Travel Organisers Licence ("ATOL") which is required in order for the Group to operate. This license is renewed in September each year, with the next renewal being in September 2021, and is subject to assessments of fitness and financial criteria, the framework of which is available on the CAA's website (www.caa.co.uk). The Group operates a trust account to provide full consumer protection for UK ATOL bookings, which is independently and professionally managed by PT Trustees Limited ("PTT").
- Supplier failure - The Group is reliant on its suppliers to ensure all elements of the holidays it sells are provided to its customers where the Group has acted as a tour organiser. In the event that a supplier is unable to fill its contractual obligations the Group is liable to provide a suitable alternative or a full refund to the customer. The Group mitigates against this risk by spreading its business over a number of selected suppliers.
- Competition - The Group operates in a competitive market particularly around price and product availability. This results in downward pressure on ticket prices and margins. This risk is mitigated by seeking out opportunities to differentiate its product offering by packaging cruises with other holiday elements.
The nature of the business exposes the Group to various commercial risks which may affect the trading performance of the Group. These include:
- acts of terrorism, particularly in key tourist destinations
- epidemics in key tourist destinations which threaten the health of tourists
- wars or other international uncertainty which affects air travel
- natural disasters in key tourist destinations
- weather conditions, both in the UK and key tourist destinations
- changes in customer behaviour and preferences
- increase in government taxes
These factors may affect the Group by causing potential customers to cancel or postpone travel plans, reducing the earnings potential of the Group. The Group seeks to minimise such risks by operating a flexible limited commitment business model with the ability to shift capacity amongst a variety of destinations where necessary. In the case of a global shut down of the cruise industry, as we are now experiencing due to the COVID-19 pandemic, the Group seeks to mitigate risk by aggressive cost cutting, while protecting its ability to effectively compete in the future. 

Page 2

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Financial Instrument risk
 
The Group's operations expose it to limited financial risks that include liquidity risk, price risk and foreign exchange rate risk. Given the size of the Group, the responsibility of monitoring financial risk management is managed by the board of directors.
- Liquidity risk - The nature of the Group's tour operator business is that expenditure on sales and marketing activities to generate bookings takes place many months prior to the date of departure of the holiday, at which point the Group earns its revenue, and also that the pattern of bookings and departures varies throughout the year. The Group does not borrow externally, and maintains a mixture of cash deposits and inter-company trading balances to ensure that it has sufficient funds available for operations.
- Price risk - The Group is exposed to price risk through competitor activities in the cruise markets in which the Group operates. Competitor prices are monitored frequently and appropriate remedial action is taken. Where possible the Group seeks to differentiate its product offering in order to avoid direct price competition.
- Foreign exchange risk - The Group is exposed to foreign exchange rate risk when it purchases overseas holiday services in currencies other than British Pounds. Monetary assets and liabilities are translated at the exchange rate prevailing at the statement of financial position date. All exchange gains and losses so arising are taken to the income statement. The Group operates a policy of hedge accounting and, accordingly, bears little risk associated with such foreign exchange movements.


This report was approved by the board on 28 June 2022 and signed on its behalf.



B P Aguila
Director
Page 3

 
SUNSHINE CRUISE HOLIDAYS 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.

Directors' responsibilities statement

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;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 2006They 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.

Principal activity

The principal activity of the Group in the year under review was that of a travel provider, primarily selling cruise holidays, as both travel agent and tour organiser.

Results and dividends

The loss for the year, after taxation, amounted to £1,690,738 (2020 - loss £3,188,588).

The total distribution of dividends for the year ended 31 December 2021 was £Nil (2020 - £Nil). The directors do not recomend a final dividend.
Page 4

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021


Director

The director who served during the year was:

D R Townsley (resigned 30 June 2021)
C P Moore (resigned 20 March 2021)
O Rosenberger (resigned 31 May 2022)
D N Sourbutts (appointed 17 March 2021, resigned 24 December 2021)

Future developments

The Group constantly reviews opportunities to expand profitable distribution of cruise holidays, including new overseas markets, marketing channels, partnerships, or products. Such opportunities are commercially sensitive and will be communicated at the appropriate time.

Matters covered in the Group Strategic Report

The directors have disclosed additional performance data for the Group in the strategic report which is included within this set of financial statements. This includes a review of the performance of the business and the key performance indicators, as well as the main risks faced by the business.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end, except for the continued effects of the COVID-19 pandemic, which has had a significant impact upon the industry in which the Group operates, as described in note 2.3. 
During 2022, the Group will continue to operate as outlined in the principal activity note above. Following the relaxing of international travel restrictions during the year, the Group's suppliers have recommenced operations with reduced capacity and will look to gradually restore capacity back to pre-pandemic levels to fulfill pent up demand from consumers. The Group has also prepared contingencies in the event of further disruptions caused by the risk of new variants of COVID-19, to minimise the impact on business.

Auditors

The auditorsWhite Hart Associates (London) Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 June 2022 and signed on its behalf.
 


B P Aguila
Director
Page 5

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED
 

Opinion


We have audited the financial statements of Sunshine Cruise Holidays Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2021, which comprise the Group Income Statement, the Group Statement of Comprehensive Income, the Group and parent Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and parent Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2021 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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 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.


The impact of uncertainties due to the COVID-19 pandemic on our audit
Uncertainties related to the effects of the COVID-19 pandemic are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors, such as recoverability of investments, intangible assets and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and Group's future prospects and performance.
The COVID-19 pandemic has had an unprecedented impact upon the worldwide economy and in particular upon the cruise industry, with many consumers cancelling or delaying travel plans as a result. At the date of this report, the full range of possible effects upon travel companies cannot be estimated or assessed due to the current levels of uncertainty around government and consumer responses to what might happen.
The accelerated vaccine rollout has led to an improvement in the assessment of the uncertainty in that it should accelerate the ability for consumers to travel again safely and also enable travel routes to re-open. Whilst a positive aspect, it still does not remove the ongoing uncertainty of the measures that will be taken by various Governments to contain the virus and any subsequent variants and their final economic effects. The Omicron variant of COVID-19 once again affected the cruise industry in the latter part of 2021, and although it was not to the same degree as former variants, it continues to create a trading uncertainty. 
We applied a standardised firm-wide approach in response to these uncertainties when assessing the Group's future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a group or company and this is particularly the case in relation to the COVID-19 pandemic.

Page 6

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)



Material uncertainty related to going concern


In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 2.3 to the financial statements concerning the Group's ability to continue as a going concern. 
As explained in note 2.3, the current COVID-19 pandemic has had an unprecedented impact upon the global economy and especially upon the cruise industry. This has led many consumers to hold off on booking new holidays or cancel existing holidays until the global situation stabilises, resulting in greatly reduced cash flows for travel companies. These problematic trading conditions have negatively impacted the Group's trade as well as its immediate and projected cash flows.
The impact of the COVID-19 pandemic on the cruise industry and the losses sustained by the Group could jeopardise the Group's ability to continue as a going concern in the medium term. To mitigate this risk, the ultimate parent company, Dreamlines GmbH, raised financial support from shareholders along with substantial German Government-backed subsidies to secure the finances and operations for at least the next 12 months across the Group. The financial statements have therefore been prepared on a going concern basis. 
Dreamlines GmbH has provided financial support to the Group throughout the COVID-19 pandemic and has continued to provide additional support since 31 December 2021 in excess of £1million, with commitment to provide further finance as necessary.


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 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.


Opinion 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 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.


Page 7

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)


Matters on which we are required to report by exception
 

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.


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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 set out on page 4, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
Page 8

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)


Auditors' 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 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 exercise professional judgment and maintain professional scepticism throughout the audit;
- We 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 deliberate override of internal control;
- We 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 internal control;
- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;
- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
- We review the scope of the Group's compliance with The Package and Linked Travel Arrangements Regulations 2018 ("PTRs") and sample test relevant documentation to assess this and the effectiveness of its control environment;
- We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements;
- We review the Group's relationships with related parties and other group companies, identifying and disclosing transactions during the year and balances at year-end with such parties;
 
Page 9

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements (continued)
- We conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity'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 entity to cease to continue as a going concern.


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.


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 2006Our 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.





Ms N A Spoor ACA FCCA (Senior Statutory Auditor)
  
for and on behalf of
White Hart Associates (London) Limited
 
Chartered Accountants and Statutory Auditors
  
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA

28 June 2022
Page 10

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
Note
£
£



Gross Retail Turnover ("GRT")
14,375,700
25,615,839

  

Turnover
 4 
4,057,601
14,309,274

Cost of sales
  
(2,261,656)
(13,032,576)

Gross profit
  
1,795,945
1,276,698

Administrative expenses
  
(3,907,170)
(5,477,770)

Other operating income
 5 
551,838
772,801

Operating loss
 6 
(1,559,387)
(3,428,271)

Interest receivable and similar income
 10 
10,528
68,740

Interest payable and similar expenses
 11 
(163,987)
(64,740)

Loss before taxation
  
(1,712,846)
(3,424,271)

Tax on loss
 12 
22,108
235,683

Loss for the financial year
  
(1,690,738)
(3,188,588)

  

Currency translation differences
  
(40,858)
27,467

Movement in unrealised foreign exchange reserve
  
(34,029)
89,461

Fair value (loss)/gain on cash flow hedges
  
(34,183)
27,472

Other comprehensive income for the year
  
(109,070)
144,400

  

Total comprehensive income for the year
  
(1,799,808)
(3,044,188)

(Loss) for the year attributable to:
  

Owners of the parent Company
  
(1,690,738)
(3,188,588)

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
(1,799,808)
(3,044,188)

The notes on pages 18 to 41 form part of these financial statements.

Page 11

 
SUNSHINE CRUISE HOLIDAYS LIMITED
REGISTERED NUMBER: 03931005

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

Fixed assets
  

Intangible assets
 13 
78,792
94,292

Tangible assets
 14 
59,215
274,960

  
138,007
369,252

Current assets
  

Debtors: amounts falling due within one year
 16 
18,599,459
20,190,875

Cash at bank and in hand
 17 
2,600,660
6,464,083

  
21,200,119
26,654,958

Creditors: amounts falling due within one year
 18 
(20,381,808)
(26,305,885)

Net current assets
  
 
 
818,311
 
 
349,073

Total assets less current liabilities
  
956,318
718,325

Creditors: amounts falling due after more than one year
 19 
(3,457,975)
(1,420,174)

Provisions for liabilities
  

Net liabilities
  
(2,501,657)
(701,849)


Capital and reserves
  

Called up share capital 
 21 
85,000
85,000

Share premium account
 22 
1,453,227
1,453,227

Foreign exchange reserve
 22 
92,181
126,210

Other reserves
 22 
1,840
36,023

Profit and loss account
 22 
(4,133,905)
(2,402,309)

Equity attributable to owners of the parent Company
  
(2,501,657)
(701,849)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 June 2022.

B P Aguila
Director

The notes on pages 18 to 41 form part of these financial statements.
Page 12

 
SUNSHINE CRUISE HOLIDAYS LIMITED
REGISTERED NUMBER: 03931005

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

Fixed assets
  

Intangible assets
 13 
78,792
94,292

Tangible assets
 14 
41,719
228,147

Investments
 15 
1,533,503
1,533,503

  
1,654,014
1,855,942

Current assets
  

Debtors: amounts falling due within one year
 16 
18,474,422
20,012,683

Cash at bank and in hand
 17 
1,973,334
2,168,971

  
20,447,756
22,181,654

Creditors: amounts falling due within one year
 18 
(19,344,700)
(21,646,623)

Net current assets
  
 
 
1,103,056
 
 
535,031

Total assets less current liabilities
  
2,757,070
2,390,973

  

Creditors: amounts falling due after more than one year
 19 
(5,137,782)
(3,374,825)

  

Net liabilities
  
(2,380,712)
(983,852)


Capital and reserves
  

Called up share capital 
 21 
85,000
85,000

Share premium account
 22 
1,453,227
1,453,227

Other reserves
 22 
1,840
36,023

Profit and loss account
 22 
(3,920,779)
(2,558,102)

  
(2,380,712)
(983,852)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 June 2022.

B P Aguila
Director

The notes on pages 18 to 41 form part of these financial statements.
Page 13

 

 
SUNSHINE CRUISE HOLIDAYS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021



Called up share capital
Share premium account
Foreign exchange reserve
Cash flow hedging reserve
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 January 2020
85,000
1,453,227
36,749
8,551
758,812
2,342,339



Comprehensive income for the year


Loss for the year
-
-
-
-
(3,188,588)
(3,188,588)


Currency translation differences
-
-
-
-
27,467
27,467


Movement in unrealised foreign exchange reserve
-
-
89,461
-
-
89,461


Fair value gain/(loss) on cash flow hedges
-
-
-
27,472
-
27,472

Total comprehensive income for the year
-
-
89,461
27,472
(3,161,121)
(3,044,188)





At 1 January 2021
85,000
1,453,227
126,210
36,023
(2,402,309)
(701,849)



Comprehensive income for the year


Loss for the year
-
-
-
-
(1,690,738)
(1,690,738)


Currency translation differences
-
-
-
-
(40,858)
(40,858)


Movement in unrealised foreign exchange reserve
-
-
(34,029)
-
-
(34,029)


Fair value gain/(loss) on cash flow hedges
-
-
-
(34,183)
-
(34,183)

Total comprehensive income for the year
-
-
(34,029)
(34,183)
(1,731,596)
(1,799,808)



At 31 December 2021
85,000
1,453,227
92,181
1,840
(4,133,905)
(2,501,657)
Page 14

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Share premium account
Cash flow hedging reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2020
85,000
1,453,227
8,551
64,621
1,611,399


Comprehensive income for the year

Loss for the year
-
-
-
(2,622,723)
(2,622,723)

Fair value gain/(loss) on cash flow hedges
-
-
27,472
-
27,472
Total comprehensive income for the year
-
-
27,472
(2,622,723)
(2,595,251)



At 1 January 2021
85,000
1,453,227
36,023
(2,558,102)
(983,852)


Comprehensive income for the year

Loss for the year
-
-
-
(1,362,677)
(1,362,677)

Fair value gain/(loss) on cash flow hedges
-
-
(34,183)
-
(34,183)
Total comprehensive income for the year
-
-
(34,183)
(1,362,677)
(1,396,860)


At 31 December 2021
85,000
1,453,227
1,840
(3,920,779)
(2,380,712)


The notes on pages 18 to 41 form part of these financial statements.
Page 15

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
£
£

Cash flows from operating activities

Loss for the financial year
(1,690,738)
(3,188,588)

Adjustments for:

Amortisation of intangible assets
15,500
15,500

Depreciation of tangible assets
96,732
108,421

Loss on disposal of tangible assets
123,179
-

Interest paid
163,987
64,740

Interest received
(10,528)
(68,740)

Taxation charge
(22,108)
(235,683)

Decrease in debtors
1,566,985
24,713,069

(Decrease) in creditors
(6,238,604)
(23,350,045)

Increase in amounts owed to groups
2,354,549
389,521

Corporation tax (paid)/received
(52,890)
39,311

Net cash generated from operating activities

(3,693,936)
(1,512,494)


Cash flows from investing activities

Purchase of tangible fixed assets
(16,028)
(19,852)

Interest received
10,528
68,740

Net cash from investing activities

(5,500)
48,888

Cash flows from financing activities

Interest paid
(163,987)
(64,740)

Net cash used in financing activities
(163,987)
(64,740)

Net (decrease) in cash and cash equivalents
(3,863,423)
(1,528,346)

Cash and cash equivalents at beginning of year
6,464,083
7,992,429

Cash and cash equivalents at the end of year
2,600,660
6,464,083


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,600,660
6,464,083


The notes on pages 18 to 41 form part of these financial statements.

Page 16

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2021





At 1 January 2021
Cash flows
Other non-cash changes
At 31 December 2021
£

£

£

£

Cash at bank and in hand

6,464,083

(3,863,423)

-

2,600,660

Fair value of cash flow hedges

36,023

-

(34,183)

1,840


6,500,106
(3,863,423)
(34,183)
2,602,500

The notes on pages 18 to 41 form part of these financial statements.
Page 17

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1.


General information

As disclosed in the Directors' Report, the principal activity of the Company and Group in the year under review was that of a travel provider, primarily selling cruise holidays, as both a travel agent and tour organiser.
The Company is a private company limited by shares and is incorporated in England. The address of the Company's principal place of business and registered office is:
Office 310
Third Floor, Manchester Digital World
1 Lowry Plaza, The Quays
Salford
M50 3UB

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Basis of consolidation

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.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.

Page 18

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.3

Going concern

Due to the COVID-19 pandemic, the Group has again sustained losses in 2021, albeit at lower levels than that of 2020. Cost reduction measures across the Group and, in the case of the German parent company, government grants to cover fixed costs were still being received in 2022. The losses sustained could jeopardise the continued going concern of the Group in the medium term. Cruises did commence sailing again in the third quarter of 2021 and new bookings are strong going into 2022. A recovery to 2019 levels is expected by management to be achieved in 2023. 
The results of internal reporting indicates a higher EBITDA achieved in 2021 when compared to budgeted performance. This has resulted in the cash balance at 31 December 2021 for the ultimate parent, Dreamlines GmbH, and its subsidiaries as a group being €1.4million higher than conservative estimates. 
Taking into account prudent budgets for 2022 and 2023, along with the financing commitment already received by shareholders in 2021 and those committed to in 2022, the Group is expected to be able to meet its commitments for periods up to and including the second quarter of 2023. Continued German Government subsidies received by the ultimate parent in 2022 have also provided greater of expected commitments. 
In the medium term, a going concern risk exists because the going concern assessment is based on an assumption that the Group will see positive cash flows by the end of 2023. 
Dreamlines GmbH, as ultimate parent, has provided a letter of comfort confirming its continued support of the Group over the coming 12 months. It has already provided £1million since 31 December 2021 to assist with resultant financial pressures arising from the COVID-19 pandemic and to help the Group to meet CAA requirements for the renewal of its ATOL licence in the UK. Dreamlines GmbH has committed to provide further support to the Group as needed.
The Group is part of a much larger group, with the ultimate holding company being Dreamlines GmbH. The Group therefore benefits from the guaranteed financial support of its shareholders, who have acquired additional financing since the year-end in order to facilitate and support the ongoing business of all Group companies for at least the next 12 months. The Group has also taken advantage of Government backed assistance on the job support scheme to retain as many employees as it can, within the financial impact it has suffered.
As a result, Group management and the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least the following 12 months from the signing of these financial statements, and will take all reasonable commercial steps, including seeking further financing or support if required, to mitigate against the impact of the COVID-19 pandemic and on the Group's ability to continue as a going concern. As a result, and with the Group continuing to receive the full support of the group, the directors believe that it is still appropriate to apply the going concern basis for the foreseeable future.

Page 19

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Groups's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Turnover

Turnover, which excludes value added tax, represents gross ticket sales where the Group is acting as a tour organiser, net commission income where the Group is acting as a travel agent and amounts invoiced for other services provided. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover relating to sales of holidays where the Group is acting as a tour organiser is recognised on the date of departure of the holiday. Turnover relating to sales of holidays where the Group is acting as a travel agent is recognised on the date of booking of the holiday. Turnover relating to other services is recognised when the service has been provided.
Additionally, the Group's subsidiary in Australia recognises turnover 8 weeks prior to the holiday's departure date, as this is the point that the booking becomes unconditional and no cancellation refunds are offered, in accordance with their terms and conditions.
Trade debtors still represent gross amounts receivable and trade creditors still represent gross amounts payable in respect of travel and holiday arrangements.

Page 20

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

  
2.6

Gross retail turnover

In order to provide the user of the financial statements with a measure of the gross value of business, the gross value of all sales transactions is shown as a memorandum item at the top of the statement of comprehensive income.
Gross retail turnover does not represent statutory turnover in accordance with Section 23 of FRS 102.
Where the Group acts as an agent, gross retail turnover represents the price at which products or services have been sold, inclusive of any service fees but excluding commissions paid to third party distributors and any associated sales taxes.
In cases where the Group does act as principal, gross retail turnover represents the price at which products or services are sold, net of any value added taxes.

 
2.7

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.8

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Research and development work continues to be directed towards websites' ability to deliver effective search results for customers. This requires the developers to continually undertake improvements to the software architecture.

 
2.9

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

Page 21

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.10

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.11

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.12

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.13

Share based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
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.

Page 22

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.14

Current and deferred taxation

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

The current income 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 and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

  
2.15

Borrowing costs

All borrowing costs are recognised in the Consolidated Income Statement in the year in which they are incurred. 

 
2.16

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.

 The estimated useful lives range as follows:

Broadcasting rights
-
over 10 years

Page 23

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.17

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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:

Short-term leasehold property
-
over the lease term
Plant and machinery
-
over 4 years
Fixtures and fittings
-
over 4 years

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.

 
2.18

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.19

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.20

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 24

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.21

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.22

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
Page 25

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.23

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognising a gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged.
The Group designates certain derivatives as either: 
- Hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge); - Hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge); or 
- Hedges of a net investment in a foreign operation (net investment hedge).
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is recognised after more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability.

Page 26

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.24

Hedge accounting

The Group uses foreign currency forward contracts to manage its exposure to cash flow risk on its future creditors payable in foreign currencies. These derivatives are measured at fair value at each reporting date.

To the extent the cash flow hedge is effective, movements in fair value are recognised in other comprehensive income and presented in a separate cash flow hedge reserve. Any ineffective portions of those movements are recognised in profit or loss for the year.

Gains and losses on the hedging instruments and the hedged items are recognised in profit or loss for the year. When a hedged item is an unrecognised firm commitment, the cumulative hedging gain or loss on the hedged item is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Group's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimates are revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.


4.


Turnover

An analysis of turnover by class of business is as follows:


2021
2020
£
£

Travel agent & tour organiser
4,057,601
14,309,274


Analysis of turnover by source market:

2021
2020
£
£

United Kingdom
3,552,197
9,528,518

Asia
-
1,264

Australia
505,404
4,779,492

4,057,601
14,309,274


Page 27

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

5.


Other operating income

2021
2020
£
£

Government grants receivable
406,721
746,475

Foreign exchange difference - gain
145,117
26,326

551,838
772,801


Government grants above primarily relate to grants received through the Coronavirus Job Retention Scheme, which was implemented by the UK Government to assist companies affected by the COVID-19 pandemic with employee wages. Also included within government grants above are grants received from the local city council to assist retail companies affected by the COVID-19 pandemic due to local restrictions.


6.


Operating loss

The operating loss is stated after charging:

2021
2020
£
£

Other operating lease rentals
153,420
198,905


7.


Auditors' remuneration

2021
2020
£
£


Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
30,854
42,333


Fees payable to the Group's auditor and its associates in respect of:


Audit-related assurance services
19,115
19,820

Taxation compliance services
-
11,213

Component audit fees
11,739
11,300

30,854
42,333

Page 28

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£


Wages and salaries
2,516,356
3,727,740
2,013,152
2,448,805

Social security costs
187,969
229,656
176,177
192,604

Cost of defined contribution scheme
114,453
194,132
68,880
82,324

2,818,778
4,151,528
2,258,209
2,723,733


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2021
        2020
        2021
        2020
            No.
            No.
            No.
            No.









Administration
28
33
22
29



Marketing
4
14
3
10



Sales
63
97
49
65

95
144
74
104


9.


Directors' remuneration

2021
2020
£
£

Directors' emoluments
227,020
416,082

Group contributions to defined contribution pension schemes
16,060
27,148

243,080
443,230


During the year retirement benefits were accruing to 2 directors (2020 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £69,826 (2020 - £179,168).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £5,444 (2020 - £12,127).

Page 29

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

10.


Interest receivable

2021
2020
£
£


Other interest receivable
10,528
68,740

10,528
68,740


11.


Interest payable and similar expenses

2021
2020
£
£


Other loan interest payable
163,987
64,740

163,987
64,740


12.


Taxation


2021
2020
£
£

Corporation tax


Adjustments in respect of previous periods
2,167
(36,676)

Foreign tax


Foreign tax on income for the year
(14,523)
-

Total current tax
(12,356)
(36,676)

Deferred tax


Origination and reversal of timing differences
(9,752)
(199,007)


Taxation on loss on ordinary activities
(22,108)
(235,683)
Page 30

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2020 - higher than) the standard rate of corporation tax in the UK of 19% (2020 - 19%). The differences are explained below:

2021
2020
£
£


Loss on ordinary activities before tax
(1,712,846)
(3,424,271)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
(325,441)
(650,611)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
22,924
(14,029)

Capital allowances for year in excess of depreciation
13,336
12,590

Utilisation of tax losses
-
36,172

Adjustments to tax charge in respect of prior periods
2,167
(36,676)

Profits taxed in foreign jurisdictions
64,166
120,148

Deferred taxation movement
(9,752)
(199,007)

Taxes charged in foreign jurisdictions
(14,523)
-

Unrelieved tax losses carried forward
225,015
495,730

Total tax charge for the year
(22,108)
(235,683)


Factors that may affect future tax charges

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2021 (on 11 March 2021). These include increases to the main rate of tax from 19% to 25% from 1 April 2023 for profits exceeding £50,000. Deferred taxes at the Statement of Financial Position date have been measured using the rates that will be applicable in the periods to which they relate.

Page 31

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

13.


Intangible assets

Group





Broadcasting rights
Goodwill
Total

£
£
£



Cost


At 1 January 2021
155,000
4,191
159,191


Foreign exchange movement
-
(202)
(202)



At 31 December 2021

155,000
3,989
158,989



Amortisation


At 1 January 2021
60,708
4,191
64,899


Charge for the year on owned assets
15,500
-
15,500


Foreign exchange movement
-
(202)
(202)



At 31 December 2021

76,208
3,989
80,197



Net book value



At 31 December 2021
78,792
-
78,792



At 31 December 2020
94,292
-
94,292



Page 32

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
 
           13.Intangible assets (continued)

Company




Broadcasting rights

£



Cost


At 1 January 2021
155,000



At 31 December 2021

155,000



Amortisation


At 1 January 2021
60,708


Charge for the year
15,500



At 31 December 2021

76,208



Net book value



At 31 December 2021
78,792



At 31 December 2020
94,292

The Broadcasting rights were acquired during 2017 and are being amortised over their estimated useful life of 10 years.

Page 33

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

14.


Tangible fixed assets

Group






Short-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2021
188,610
718,726
116,526
1,023,862


Additions
-
15,314
714
16,028


Disposals
(188,610)
(63,405)
-
(252,015)


Exchange adjustments
-
(14,357)
-
(14,357)



At 31 December 2021

-
656,278
117,240
773,518



Depreciation


At 1 January 2021
57,243
591,229
100,430
748,902


Charge for the year on owned assets
18,861
73,684
14,259
106,804


Disposals
(76,104)
(52,732)
-
(128,836)


Exchange adjustments
-
(12,567)
-
(12,567)



At 31 December 2021

-
599,614
114,689
714,303



Net book value



At 31 December 2021
-
56,664
2,551
59,215



At 31 December 2020
131,367
127,497
16,096
274,960

Page 34

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

           14.Tangible fixed assets (continued)


Company






Short-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£

Cost or valuation


At 1 January 2021
188,610
399,198
116,526
704,334


Additions
-
4,627
714
5,341


Disposals
(188,610)
-
-
(188,610)



At 31 December 2021

-
403,825
117,240
521,065



Depreciation


At 1 January 2021
57,243
318,514
100,430
476,187


Charge for the year on owned assets
18,861
46,143
14,259
79,263


Disposals
(76,104)
-
-
(76,104)



At 31 December 2021

-
364,657
114,689
479,346



Net book value



At 31 December 2021
-
39,168
2,551
41,719



At 31 December 2020
131,367
80,684
16,096
228,147






Page 35

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2021
1,533,503



At 31 December 2021
1,533,503





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Cruise 1st Australia PTY Limited
157-159 Walker Street, Level 2, Suites 203-204, North Sydney, Australia, NSW 2060
Travel agent and tour operator
Ordinary
100%
Sunshine Cruise Holidays Transport Limited
Office 310, Third Floor, Manchester Digital World, 1 Lowry Plaza, The Quays, Salford, M50 3UB
Transport provider
Ordinary
100%
Cruise 1st Deutschland GmbH
Burchardstraße 14, 20095 Hamburg, Germany
Dormant
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2021 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Cruise 1st Australia PTY Limited
1,145,573
(323,195)

Sunshine Cruise Holidays Transport Limited
100
-

Cruise 1st Deutschland GmbH
18,520
-

Page 36

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

16.


Debtors

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£


Trade debtors
12,158,343
14,195,563
12,151,846
14,185,193

Other debtors
3,746,975
3,808,663
3,740,250
3,734,457

Prepayments and accrued income
2,506,995
1,975,072
2,395,180
1,881,456

Deferred taxation
185,306
175,554
185,306
175,554

Financial instruments
1,840
36,023
1,840
36,023

18,599,459
20,190,875
18,474,422
20,012,683


Included within other debtors is a UK Trust Account which is independently and professionally managed by PT Trustees Limited ("PTT"). As at 31 December 2021, the sum of £3,726,945 (2020 - £3,728,837) was held in the Trust Account, to be released upon a set of rules agreed with the Civil Aviation Authority ("CAA") and PTT which provide full consumer protection for ATOL bookings.


17.


Cash and cash equivalents

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Cash at bank and in hand
2,600,660
6,464,083
1,973,334
2,168,971

2,600,660
6,464,083
1,973,334
2,168,971


Included within cash at bank and in hand above is restricted cash of £866,000 (2020 - £866,000) provided as security to the Air Travel Trust in connection with the Group's Air Travel Organisers Licence ('ATOL') issued by the Civil Aviation Authority. 

Page 37

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Trade creditors
13,435,709
15,456,261
13,417,007
15,367,520

Amounts owed to group undertakings
379,438
62,690
260,200
18,328

Corporation tax
56,421
92,621
-
-

Other taxation and social security
203,274
960,929
197,465
952,175

Other creditors
27,098
34,957
12,554
10,500

Accruals and deferred income
6,279,868
9,698,427
5,457,474
5,298,100

20,381,808
26,305,885
19,344,700
21,646,623


The Group had BSP outstanding cash sales due to be paid of £25,734 at 31 December 2021 (2020 - due to be repaid of £32,544), all of which were paid within January 2022. The Group did not have any unutilised overdraft or Revolving Credit Facilities at 31 December 2021.


19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Amounts owed to group undertakings
3,457,975
1,420,174
5,137,782
3,374,825

3,457,975
1,420,174
5,137,782
3,374,825


The above loan in the sum of £3,457,975 (2020: £1,420,174) is from the Group's ultimate parent company, Dreamlines GmbH, and is subject to a subordinated undertaking in favour of the Civil Aviation Authority, in relation to the Company's ATOL licence and cannot be repaid without the Civil Aviation Authority's prior written consent. This loan carries an interest rate of 6% per annum. 
There is also a loan due from Cruise 1st Australia PTY Limited to the Company in the sum of £167,825, which is subject to a subordinated undertaking in favour of ABTA in relation to the Company's ABTA membership and cannot be repaid before 30 September 2022. 
Page 38

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

20.


Deferred taxation


Group



2021
2020


£

£






At beginning of year
175,554
(23,453)


Charged to profit or loss
9,752
199,007



At end of year
185,306
175,554

Company


2021
2020


£

£






At beginning of year
175,554
(23,453)


Charged to profit or loss
9,752
199,007



At end of year
185,306
175,554

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Accelerated capital allowances
(4,694)
(14,446)
(4,694)
(14,446)

Tax losses carried forward
190,000
190,000
190,000
190,000

185,306
175,554
185,306
175,554


21.


Share capital

2021
2020
£
£
Allotted, called up and fully paid



85,000 (2020 - 85,000) Ordinary shares of £1.00 each
85,000
85,000

The ordinary shares of £1 each carry full voting rights, full dividend rights and full rights to participation in any capital distribution on winding up. 


Page 39

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

22.


Reserves

Share premium account

The share premium account represents the additional amount shareholders have paid for their issued shares that was in excess of the par value of those shares.

Foreign exchange reserve

The foreign exchange reserve represents differences arising upon the revaluation of foreign subsidiary companies stated in their local currencies. The financial statements of these companies are revalued to match the presentation currency of the Group for consolidation purposes, to show the entirety of the Group's results in Pounds Sterling (GBP). See accounting policy 2.4 for details of how the individual balances within the foreign subsidiaries are translated.

Other reserves

Other reserves relate to a cash flow hedging reserve to which, in accordance with the Group's accounting policies, the effective portion of changes in the fair value of foreign exchange forward contract derivatives are recognised.

Profit and loss account

The profit and loss account represents all current and prior period retained profits and losses, less any dividends paid to shareholders.


23.


Contingent liabilities

At 31 December 2021, there were contingent liabilities outstanding in respect of counter indemnities given by the Group, in the normal course of business, to the Group's bond insurance obligors in respect of ABTA, IATA and CAA travel bonds amounting to £1,050,175 (2020 - £934,645).


24.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £114,453 (2020 - £194,132). Contributions totalling £22,942 (2020 - £10,500) were payable to the fund at the reporting date and are included in creditors.

Page 40

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

25.


Commitments under operating leases

At 31 December 2021 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Not later than 1 year
26,493
169,869
26,493
77,753

Later than 1 year and not later than 5 years
-
613,636
-
292,653

Later than 5 years
-
143,880
-
143,880

26,493
927,385
26,493
514,286

26.


Related party transactions


2021
2020
£
£

-
-



Dreamlines GmbH


Immediate and ultimate holding company of the Group

Expenses recharged to the related party
137,816
221,660

Expenses recharged from the related party
(105,680)
(140,410)

Interest payable to the related party
(159,402)
(66,881)

Loan outstanding from the related party at the year-end
(3,837,413)
(1,482,864)


27.


Controlling party

The Group's immediate and ultimate holding company is Dreamlines GmbH, a company registered in Germany which owns all of the issued share capital of the Company. Copies of the financial statements of Dreamlines GmbH can be obtained from Burchardstraße 14, 20095 Hamburg, Germany.
 
Page 41