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REGISTERED NUMBER: 01283655 (England and Wales)















Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2021

for

Viking River Cruises UK Limited

Viking River Cruises UK Limited

Company Information
for the Year Ended 31 December 2021







DIRECTOR: W C Atkin-Smith





SECRETARY: J Richards





REGISTERED OFFICE: Nelsons House
83 Wimbledon Park Side
London
SW19 5LP





REGISTERED NUMBER: 01283655 (England and Wales)





INDEPENDENT AUDITORS: White Hart Associates (London) Limited
Chartered Accountants and Statutory Auditors
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA

Viking River Cruises UK Limited (Registered number: 01283655)

Strategic Report
for the Year Ended 31 December 2021

The director presents her strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS AND ANALYSIS OF PERFORMANCE
The Company is required by the Companies Act to set out in this report, a fair review of the business of the Company during the financial year ended 31 December 2021, and its position at the end of the year along with a description of the principal risks and uncertainties facing the Company. This review is prepared solely to provide additional information to shareholders to assess the Company'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 director considers the results to be satisfactory given the challenges presented by the economic uncertainty caused by the COVID-19 pandemic and resulting disruption to international travel. The Company reacted quickly to the COVID-19 pandemic by cutting costs where possible and positioning itself to be at the forefront of the industry as consumer demand picks up again. As a result, the Company is expecting significant growth in future years due to increased capacity as a result of the launch of new ships and new itineraries.

The Company has always benefitted from sales to geographically diverse locations, and as such would feel that its exposure to geographical disruption is minimised. The Company experiences significant repeat business, and also benefits from significant forward visibility on its cruise bookings, compared to more mass market tour operators.

The key performance indicators used by the directors to monitor the progress of the Company are set out
below:

2021 2020
£    £   
Key performance indicators
Turnover 15,313,799 11,783,955
Gross profit 5,216,839 6,297,441
Gross profit as a percentage of turnover 34.07% 53.44%
Profit on ordinary activities before taxation 200,236 60,668
Profit on ordinary activities as a percentage of turnover 1.32% 0.51%
Net cash inflow/(outflow) from operating activities 16,055,114 (378,076 )
Net assets 13,753,343 13,450,939

The gross profit percentage has decreased in 2021 as there have been more Group charges after cancelled sailings in 2020.


Viking River Cruises UK Limited (Registered number: 01283655)

Strategic Report
for the Year Ended 31 December 2021

PRINCIPAL RISKS AND UNCERTAINTIES
The following risk factors may affect the Company's operating results and its financial position. The risk factors described below are those which the director believes are potentially significant, but should not be regarded as a complete and comprehensive statement of all potential risk and uncertainties facing the Company. The director does not feel that the risks in 2022 will be much different to those that were prevalent in 2021, with the obvious exception being the COVID-19 pandemic and the hopes that no further restrictions on international travel will be imposed.

Economic conditions
The demand for holidays 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 travel industry, the director believes that the Company 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 Company is exposed to various regulators, including the Civil Aviation Authority ("CAA"), which issues an Air Travel Organisers Licence ("ATOL") and is required in order for the Company to operate. This licence is renewed in September each year 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 Company is also a member of the Association of British Travel Agents ("ABTA") and as such is obliged to maintain a high standard of service as governed by ABTA's code of conduct.

Credit risk
Due to the nature of the Company's business whereby individual customers are required to pay for their holiday in full before they are allowed to travel, credit risk is considered to be low. In the case of sales through travel agents and wholesalers whereby payment may be received after the travel date, ongoing business relationships mean that chasing debts is significantly easier and controls have been put in place to ensure that debts are chased when they are due.

Liquidity risk
The Company monitors its liquidity risk by closely monitoring the projected cash flows from operations. Risk management includes maintaining sufficient cash and the Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. Due to the dynamic and seasonal nature of the underlying business, the Company maintains sufficient cash for its daily operations via short term cash deposits at banks.

Technology risk
The Company is heavily reliant on the uninterrupted operation of its IT systems and website. These systems are vulnerable to power loss, fire, computer viruses and other events. Loss of these systems would impair the ability of the Company to carry on its business effectively. The Company has made arrangements to mitigate this risk.

Viking River Cruises UK Limited (Registered number: 01283655)

Strategic Report
for the Year Ended 31 December 2021

PRINCIPAL RISKS AND UNCERTAINTIES (CONTINUED)

Interest rate risk
Interest rate risk is considered to be less of an issue for the Company as it is not reliant upon receiving interest in order to continue trading and also because it does not have any loans susceptible to changes in interest rates. The Company finances its operations through retained profits.

Market risk
The Company 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. In order to reduce this risk, the Company monitors the exchange rate and holds reasonable Euro and US dollar cash reserves - the main foreign currencies it trades in - to meet supplier commitments.

ON BEHALF OF THE BOARD:





J Richards - Secretary


30 March 2022

Viking River Cruises UK Limited (Registered number: 01283655)

Report of the Director
for the Year Ended 31 December 2021

The director presents her report with the financial statements of the Company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY
The principal activity of the Company in the year under review was that of a specialist tour operator.

The Company is a fully owned subsidiary of Viking River Cruises (Bermuda) Ltd, which is ultimately controlled by Viking Cruises Ltd, both of which are companies incorporated in Bermuda.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2021.

FUTURE DEVELOPMENTS
During 2022, the Company will continue to operate as outlined in the principal activity note above. Following the relaxing of international travel restrictions during the year, the Company's affiliates 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 Company 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.

As a result of the current Russia-Ukraine conflict, in February 2022, the Company's affiliates cancelled all sailings on its river ship in Ukraine for the 2022 season. In March 2022, the Company's affiliates cancelled all sailings on its river ships in Russia for the 2022 season. Additionally, in March 2022, the Company's affiliates cancelled all sailings on their river ships in Russia and Ukraine for the 2023 season.

DIRECTOR
W C Atkin-Smith held office during the whole of the period from 1 January 2021 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT
The director has provided commentary for the Review of Business and Analysis of Performance as well as the Principal Risks and Uncertainties in the Strategic Report in line with The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state that the financial statements comply with IFRS;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The director is also responsible for the maintenance and integrity of the corporate and financial information included on the Company's website.

Viking River Cruises UK Limited (Registered number: 01283655)

Report of the Director
for the Year Ended 31 December 2021


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS
The auditors, White Hart Associates (London) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J Richards - Secretary


30 March 2022

Report of the Independent Auditors to the Members of
Viking River Cruises UK Limited

Opinion
We have audited the financial statements of Viking River Cruises UK Limited (the 'Company') for the year ended 31 December 2021 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the UK.

In our opinion the financial statements:
-give a true and fair view of the state of the Company's affairs as at 31 December 2021 and of its profit for the year then ended;
-have been properly prepared in accordance with IFRSs as adopted by the UK; 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Viking River Cruises UK Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Viking River Cruises UK Limited


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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 Company'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 Company's relationships with related parties and other group companies, identifying and disclosing transactions during the year and balances at year-end with such parties;
- 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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Viking River Cruises UK Limited


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 Company's future prospects and performance.

The COVID-19 pandemic has had an unprecedented impact upon the worldwide economy and in particular upon the travel 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 the final economic effects.

We applied a standardised firm-wide approach in response to these uncertainties when assessing the Company'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.

Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.




M S Caldicott ACA FCCA CTA (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

30 March 2022

Viking River Cruises UK Limited (Registered number: 01283655)

Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 31 December 2021

2021 2020
Notes £    £   

CONTINUING OPERATIONS
Revenue 3 15,313,799 11,783,955

Cost of sales (10,096,960 ) (5,486,514 )
GROSS PROFIT 5,216,839 6,297,441

Other operating income 108,928 218,952
Administrative expenses (5,009,988 ) (6,397,097 )
OPERATING PROFIT 315,779 119,296

Finance costs 5 (116,400 ) (116,306 )

Finance income 5 857 57,678
PROFIT BEFORE INCOME TAX 6 200,236 60,668

Income tax 7 (42,145 ) (15,823 )
PROFIT FOR THE YEAR 158,091 44,845

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

158,091

44,845

Viking River Cruises UK Limited (Registered number: 01283655)

Statement of Financial Position
31 December 2021

2021 2020
Notes £    £   
ASSETS
NON-CURRENT ASSETS
Owned
Intangible assets 8 110,476 166,232
Property, plant and equipment 9 142,159 194,912
Right-of-use
Deferred tax 17 194,677 104,682
447,312 465,826
CURRENT ASSETS
Trade and other receivables 10 39,848,477 35,564,072
Cash and cash equivalents 11 41,515,887 25,646,025
81,364,364 61,210,097
TOTAL ASSETS 81,811,676 61,675,923
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 12 50,000 50,000
Capital contribution from parent 13 809,908 665,595
Retained earnings 13 12,893,435 12,735,344
TOTAL EQUITY 13,753,343 13,450,939
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities - leasing
Leasing liabilities 15 36,151 -
CURRENT LIABILITIES
Trade and other payables 14 67,990,712 48,097,964
Financial liabilities - leasing
Leasing liabilities 15 31,470 127,020
68,022,182 48,224,984
TOTAL LIABILITIES 68,058,333 48,224,984
TOTAL EQUITY AND LIABILITIES 81,811,676 61,675,923


The financial statements were approved by the director and authorised for issue on 30 March 2022 and were signed by:






Viking River Cruises UK Limited (Registered number: 01283655)

Statement of Financial Position - continued
31 December 2021

W C Atkin-Smith - Director


Viking River Cruises UK Limited (Registered number: 01283655)

Statement of Changes in Equity
for the Year Ended 31 December 2021

Capital
Called up contribution
share Retained from Total
capital earnings parent equity
£    £    £    £   

Balance at 1 January 2020 50,000 12,690,499 - 12,740,499

Changes in equity
Movement on grant of share options
in group companies

-

-

659,500

659,500
Tax impact due to grant of share
options

-

-

6,095

6,095
Total comprehensive income - 44,845 - 44,845
Balance at 31 December 2020 50,000 12,735,344 665,595 13,450,939

Changes in equity
Movement on grant of share options
in group companies

-

-

63,131

63,131
Tax impact due to grant of share
options

-

-

81,182

81,182
Total comprehensive income - 158,091 - 158,091
Balance at 31 December 2021 50,000 12,893,435 809,908 13,753,343

Viking River Cruises UK Limited (Registered number: 01283655)

Statement of Cash Flows
for the Year Ended 31 December 2021

2021 2020
Notes £    £   
Cash flows from operating activities
Cash generated from operations 22 16,222,472 181,948
Interest paid (112,753 ) (112,575 )
Lease interest paid (3,647 ) (3,731 )
Tax paid (50,958 ) (443,718 )
Net cash from operating activities 16,055,114 (378,076 )

Cash flows from investing activities
Purchase of intangible fixed assets - (8,898 )
Purchase of tangible fixed assets (126,710 ) (184,441 )
Interest received 857 57,678
Net cash from investing activities (125,853 ) (135,661 )

Cash flows from financing activities
Payment of lease liabilities (59,399 ) (38,337 )
Net cash from financing activities (59,399 ) (38,337 )

Increase/(decrease) in cash and cash equivalents 15,869,862 (552,074 )
Cash and cash equivalents at beginning of
year

23

25,646,025

26,198,099

Cash and cash equivalents at end of year 23 41,515,887 25,646,025

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements
for the Year Ended 31 December 2021


1. STATUTORY INFORMATION

Viking River Cruises UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparation
These financial statements have been prepared in accordance with UK-adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

Going concern

The current COVID-19 pandemic has had an unprecedented impact upon the global economy and in particular upon the cruise industry, causing many consumers to cancel or amend their holiday arrangements.

Additionally, with the majority of consumers no longer seeking to book holidays until the global situation stabilises, many travel companies have struggled to cope with greatly reduced cash flows.

Group management and the director have continued to review the Company's financial position, downgrade its forecasts and plan mitigation actions in order to neutralise the financial impact from the significant downturn in trading.

Additionally, they have also performed a sensitivity analysis on the Company's budgets and forecasts to assess the financial impact of any potential further slowdown in trading from the reforecast and its impact on the liquidity of the business. This sensitivity analysis shows that the Company has enough liquidity and cash to trade through a further slowdown.

The full impact of the COVID-19 pandemic on the business remains uncertain and as a result it is extremely difficult to predict the overall outcome at the date of this report. Under the downside scenarios listed above, there is a potential liquidity risk for the Company should travel restrictions be reimposed. However, the global vaccination programme rollout gives hope that the road to recovery of the travel industry is well underway. Whilst UK government support for the travel industry has been limited to date, the Company also continues to benefit from strong ongoing group support.

Group management and the director have a reasonable expectation that the Company 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 reasonably commercial steps, including seeking further financing or support if required, to mitigate against the impact of the COVID-19 pandemic and on the Company's ability to continue as a going concern. As a result, and with the Company continuing to receive the full support of the group, the director believes that it is still appropriate to apply the going concern basis for the foreseeable future.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued

New accounting standards and interpretations
The Company has not adopted any new accounting standards during the year.

Accounting standards and interpretations issued but not effective

Relevant standards and interpretations that are issued up to the date of issuance of the financial statements, but not yet adopted are disclosed below. The Company's intention is to adopt the relevant new and amended standards and interpretations when they become effective, subject to EU approval before the financial statements are issued.

IFRS 17 'Insurance Contracts' ("IFRS 17") was issued in May 2017 and introduces a single accounting model for the recognition of profits from insurance contracts for companies providing insurance services. IFRS 17 will be effective for periods beginning on or after 1 January 2021, however because the Company does not act as an insurer, it does not expect the standard to have a significant impact on its financial statements.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued

Revenue and expense recognition
Revenue is measured based on the consideration specified in the Company's contracts with customers and revenue is recognised as the performance obligations are satisfied.

Nature of goods and services
Cruise and land revenue, net of discounts, includes revenue earned primarily from cruises and any other supporting activities, including air and other transportation, land excursions, and customer cancellations. The Company's performance obligations under these contracts are to provide a cruise vacation and other supporting activities in exchange for the invoiced transaction price. The Company engages third parties to fulfill obligations to customers for air and other transportation and land excursions, but retains the ultimate risks of fulfilment and generally has discretion to select the acceptable carrier and absorbs the risk of cost fluctuations. The Company satisfies the performance obligations and recognises revenue pro-rata over the cruise period, except for land excursions which are recognised when the services are provided, which are either on the first or last day of the cruise, and cancellation revenues, which are recognised upon cancellation.

Payment Terms and Deferred Revenue
Payment terms and cancellation policies are broadly standard. A deposit for a future cruise is required at or soon after the time of booking to secure the booking. The Company collects a majority of its deposits for bookings and tours up to, and in some cases more than, a year in advance of the departure date with the remaining balances due prior to sailing. Deposits include the total amounts paid by customers prior to sailing, for which the Company is obligated to perform services. These deposits represent contract liabilities, which are recorded as deferred revenue and are recognised as revenue generally pro rata over the cruise period. Deferred revenue is a current liability as it relates to the Company's normal operating cycle.

Costs of sales
Expenses from the Company's cruise operations are recognised at the time the Company provides the services. The Company is usually required to make deposit payments to suppliers for the cost of cruises, flights and other related costs at or soon after the time of booking to secure these, with the remaining balances due prior to sailing. These deposit payments represent contract assets, which are recorded as prepayments and are recognised as cost of sales generally pro-rata over the cruise period. Prepayments are a current asset as they relate to the company's normal operating cycle.

Administrative expenses
Administration costs include marketing costs, employee costs, office expenses, professional services and other administrative costs. Marketing costs include media advertising, brochure production, direct mail costs, promotional expenses, search engine marketing and other costs that support the ongoing development of the Company's brand and customer database. Marketing costs are expensed as incurred. Television advertising and exhibition costs are deferred until they take place. Office expenses include rent expense, utility costs, office supplies and telecommunication costs. Professional service fees include costs for accounting services, legal services and information technology consulting services. Other administrative costs include corporate insurance, postage and other sundry expenses. Employee costs, office expenses, professional service fees and other administrative expenses are expensed as incurred. Rent is recognised as expense on a straight-line basis over the lease term. Total administrative expenses for the years ended 31 December 2020 and 2019 were £5.0 million, and £6.4 million, respectively.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued

Cash and cash equivalents
Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

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:

Computer software- over 3 or 5 years

Property, plant and equipment
Improvements to Property, Fixtures, Fittings and Equipment and Computer Equipment are initially recognised at acquisition cost, including any costs directly attributable to bringing the assets to the location and condition necessary for them to be operating in the manner intended by the company's management. Improvements to Property, Fixtures, Fittings and Equipment and Computer Equipment are subsequently measured at cost less accumulated depreciation and impairment losses.

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

Improvements to property- over the lease term
Right of use assets- over the lease term
Fixtures, fittings and equipment- 15% on cost / over 3 years
Computer equipment- over 3 or 4 years

Financial instruments
Financial assets and liabilities are recognised on the statement of financial position when the Company becomes a party to the contractual provisions of the instrument.

Financial assets include cash and cash equivalents, trade receivables, other receivables, loans and derivative financial instruments. Those relevant to the Company are trade and other receivables, which are recorded at their nominal amount less an allowance for any doubtful debts, and cash and cash equivalents which are also recorded at their nominal amount. These financial assets are classified as loans and receivables and so are carried at amortised cost. Gains and losses are recognised in the statement of profit or loss when the assets are derecognised or impaired, as well as through the amortisation process.

Financial liabilities include trade and other payables, accruals, finance debt and derivative instruments. Those relevant to the Company are trade and other payables and accruals which are stated at their nominal value. These financial liabilities are initially recognised at fair value and are then subsequently measured at amortised cost. Gains and losses arising on the repurchase, settlement or cancellation of liabilities are recognised in the statement of profit or loss.

Equity instruments issued by the Company are recorded at the proceeds received net of direct issue costs.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued

Taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Profit or Loss and Other Comprehensive Income, 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 operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position 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.

Foreign currencies
Functional and presentation currency
The Company'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 rate of exchanges at the statement of financial position date. 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 the Statement of Profit and Loss and Other Comprehensive Income 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 Statement of Profit and Loss and Other Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued

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

The contributions are recognised as an expense in the Statement of Profit and Loss and Other Comprehensive Income 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 Company in independently administered funds.

Leases
Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract.

Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term.

Use of estimates
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised. The effect of the use of estimates in these financial statements is not material.

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within 90 days from the date of acquisition that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued

Receivables
Short term debtors are measured at transaction price, less any impairment.

Payables
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.

Finance costs
Finance costs are charged to the Statement of Profit and Loss and Other Comprehensive Income 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.

Interest income
Interest income is recognised in the Statement of Profit and Loss and Other Comprehensive Income using the effective interest method.

Government grants
Grants are accounted for under the accruals model as permitted by IAS 20. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement 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 Income Statement in the same period as the related expenditure.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

3. REVENUE

Revenue from contracts with customers
The Company sells cruises predominantly to the UK market and the vessels primarily operate in Europe.

Deferred revenue (contract liability)
Activity in the Company's deferred revenue for the years ended 31 December 2021 and 2020 is as follows:

£   
Payments on account at 1 January 2020 43,202,241
Increase due to cash received 13,384,831
Revenue recognised (11,783,955 )
Payments on account at 31 December 2020 44,803,117
Increase due to cash received 30,580,217
Revenue recognised (15,313,799 )
Payments on account at 31 December 2021 60,069,535

The Company recognised approximately £15 million and £12 million from contract liabilities in revenue during the years ended 31 December 2021 and 2020, respectively, which were derived from the majority of the Company's deferred revenue balances at the beginning of each year and the cash received during the years ended 31 December 2021 and 2020. Of the £60.1 million deferred revenue balance as at 31 December 2021, the Company expects 80% to be recognised in revenue over the next 12 months.

Assets recognised from the costs to obtain a contract with a customer
Prepaid commissions and prepaid credit card fees are incremental costs of obtaining contracts with customers that the Company recognises as assets, which are included within prepaid expenses in the statement of financial position.

Prepaid commissions decreased to £332,585 as of 31 December 2021 from £443,526 as of 31 December 2020. Part of the Company's prepaid commissions as of 1 January 2021 were expensed and reported within costs of sales in the Statement of Profit and Loss and Other Comprehensive Income for the year ended 31 December 2021.

Prepaid credit card fees increased to £272,718 as of 31 December 2021 from £133,909 as of 31 December 2020. Part of the Company's prepaid credit card fees as of 1 January 2021 were expensed and reported within cost of sales in the Statement of Profit and Loss and Other Comprehensive Income for the year ended 31 December 2021.

4. EMPLOYEES AND DIRECTORS
2021 2020
£    £   
Wages and salaries 2,747,893 4,101,150
Social security costs 291,858 281,332
Other pension costs 97,453 105,604
3,137,204 4,488,086

The average number of employees during the year was as follows:
2021 2020

Sales and administration 65 68

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

4. EMPLOYEES AND DIRECTORS - continued

2021 2020
£    £   
Director's remuneration 412,218 882,356
Director's pension contributions to money purchase schemes 9,271 8,750

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

Information regarding the highest paid director is as follows:
2021 2020
£    £   
Emoluments etc 412,218 882,356
Pension contributions to money purchase schemes 9,271 8,750

Included in the director's emoluments figure above are the monetary value of benefits in kind provided amounting to £1,920 (2020 - £1,623).

Also included in the director's emoluments figure above is the fair value expense recognised on the grant of share options for the benefit of the director from group companies totalling £59,846 (2020 - £656,118).

5. NET FINANCE COSTS
2021 2020
£    £   
Finance income:
Deposit account interest 857 57,678
Finance costs:
Bank interest 253 -
Other interest payable 112,500 112,575
Lease interest payable 3,647 3,731
116,400 116,306

Net finance costs 115,543 58,628

6. PROFIT BEFORE INCOME TAX

The profit before income tax is stated after charging/(crediting):
2021 2020
£    £   
Cost of inventories recognised as expense 10,096,960 5,486,514
Depreciation - owned assets 179,463 262,683
Computer software amortisation 55,756 60,205
Auditors' remuneration 41,648 77,584
Foreign exchange differences (77,001 ) (448,865 )

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

6. PROFIT BEFORE INCOME TAX - continued

Included in the figure for auditors' remuneration above are amounts paid to the group auditors amounting to £21,485 (2020 - £17,348).

7. INCOME TAX

Analysis of tax expense
2021 2020
£    £   
Current tax:
Corporation tax 50,958 156,920
Corporation tax - prior year adjustment - (1,661 )
Total current tax 50,958 155,259

Deferred tax (8,813 ) (139,436 )
Total tax expense in statement of profit or loss and other comprehensive income 42,145 15,823

Factors affecting the tax expense
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2021 2020
£    £   
Profit before income tax 200,236 60,668
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2020 - 19%)

38,045

11,527

Effects of:
Expenses not deductible for tax purposes 23,797 122,296
Capital allowances for period in excess of depreciation (10,884 ) -
Depreciation for period in excess of depreciation - 23,097
Movement in deferred taxation (8,813 ) (139,436 )
Adjustments in respect of previous periods - (1,661 )
Tax expense 42,145 15,823

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.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

8. INTANGIBLE ASSETS
Computer
software
£   
COST
At 1 January 2021
and 31 December 2021 257,314
AMORTISATION
At 1 January 2021 91,082
Amortisation for year 55,756
At 31 December 2021 146,838
NET BOOK VALUE
At 31 December 2021 110,476
At 31 December 2020 166,232

9. PROPERTY, PLANT AND EQUIPMENT
Improvements Right of Fixtures,
to use fittings Computer
property assets & equipment equipment Totals
£    £    £    £    £   
COST
At 1 January 2021 406,064 283,719 45,409 142,247 877,439
Additions - 60,116 - 66,594 126,710
Disposals - (159,656 ) - - (159,656 )
At 31 December 2021 406,064 184,179 45,409 208,841 844,493
DEPRECIATION
At 1 January 2021 406,064 121,154 45,409 109,900 682,527
Charge for year - 150,649 - 28,814 179,463
Eliminated on disposal - (159,656 ) - - (159,656 )
At 31 December 2021 406,064 112,147 45,409 138,714 702,334
NET BOOK VALUE
At 31 December 2021 - 72,032 - 70,127 142,159
At 31 December 2020 - 162,565 - 32,347 194,912

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

10. TRADE AND OTHER RECEIVABLES

2021 2020
£    £   
Current:
Trade debtors - 55,957
Amounts owed by group undertakings 10,776,286 14,826,588
Other debtors 34,141 18,598
VAT 246,001 247,678
Prepayments and accrued income 28,792,049 20,415,251
39,848,477 35,564,072

11. CASH AND CASH EQUIVALENTS

2021 2020
£    £   
Cash in hand 2,206 3,427
Bank accounts 41,513,681 25,642,598
41,515,887 25,646,025

Included within cash at bank and in hand above is restricted cash of £22,916,840 (2020 - £19,002,913) provided as security for the benefit of the Company's bond insurance obligors in respect of Civil Aviation Authority and Association of British Travel Agents bonds.

12. CALLED UP SHARE CAPITAL


Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £    £   
50,000 Ordinary £1 50,000 50,000

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.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

13. RESERVES
Capital
contribution
Retained from
earnings parent Totals
£    £    £   

At 1 January 2021 12,735,344 665,595 13,400,939
Profit for the year 158,091 158,091
Movement on grant of share options
in group companies

-

63,131

63,131

Tax impact due to grant of share
options

-

81,182

81,182

At 31 December 2021 12,893,435 809,908 13,703,343

On 7 December 2020, restricted stock units for a total of 5,552 shares were granted by the Group. On 17 November 2021, restricted stock units for a total of 561 shares were granted by the Group. For the portion of the restricted stock units that vest upon a liquidity event only, a fair value expense was recognised on the date they were granted in line with Group policy and International Financial Reporting Standards. For the portion of the restricted stock units that vest upon a liquidity event and 2 years of service, the fair value expense is recognised proportionately over 2 years.

These were in addition to options over 761 shares granted on 23 August 2019 by the Group. The stock options vest after 2 years of service and the fair value expense of the stock options is recognised proportionately over 2 years.

Each restricted stock unit and option provides the holder the right to acquire non-voting ordinary shares in Viking Holdings Ltd, a company incorporated in Bermuda, upon satisfaction of their vesting conditions. Restricted stock units have no exercise price and stock options have an exercise price based on the value of a non-voting ordinary share of Viking Holdings Ltd at the grant date.

None of the above restricted stock units or options have been exercised as of the date of these financial statements.

14. TRADE AND OTHER PAYABLES

2021 2020
£    £   
Current:
Payments on account 60,069,535 44,803,117
Trade creditors 840,822 399,271
Amounts owed to group undertakings 6,687,311 2,434,640
Social security and other taxes 216,075 112,111
Other creditors 17,648 16,987
Accruals and deferred income 159,321 331,838
67,990,712 48,097,964

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

14. TRADE AND OTHER PAYABLES - continued

Included above in amounts owed to group undertakings is the sum of £2,250,000 (2020 - £2,250,000) in respect of a loan that is subordinated to the Civil Aviation Authority and cannot be withdrawn or repaid without their prior written consent.

The Company had BSP outstanding cash sales due to be paid of £113,764 at 31 December 2021 (2020 - due to be repaid of £5,825), all of which were paid within January 2022. The Company did not have any unutilised overdraft or Revolving Credit Facilities at 31 December 2021.

15. FINANCIAL LIABILITIES - LEASING

2021 2020
£    £   
Current:
Leases (see note 16) 31,470 127,020

Non-current:
Leases (see note 16) 36,151 -

Terms and debt repayment schedule

1 year or
less 1-2 years 2-5 years Totals
£    £    £    £   
Leases 31,470 32,690 3,461 67,621

Total operating expenses related to short-term leases and leases for low-value assets for the year ended 31 December 2021 were £87,318 (2020 - £69,815). Operating expenses related to variable lease payments for the year ended 31 December 2021 were £NIL.

16. LEASING

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

16. LEASING - continued

Lease liabilities

Minimum lease payments fall due as follows:

2021 2020
£    £   
Gross obligations repayable:
Within one year 31,470 127,020
Between one and five years 36,151 -

67,621 127,020

Finance charges repayable:

Net obligations repayable:
Within one year 31,470 127,020
Between one and five years 36,151 -
67,621 127,020

Lease repayments during the year amounted to £123,184 (2020 - £196,970). The interest expense associated with leases during the year amounted to £3,647 (2020 - £3,731).

The Company leases one office building and also has two significant lease agreements in respect of office equipment. The office lease now operates on a rolling 1-year contract ending in 2022. The office equipment leases both have non-cancellable terms of 2 and 5 years ending in 2023 and 2026 respectively.

17. DEFERRED TAX

2021 2020
£    £   
Balance at 1 January (104,682 ) 34,754
Accelerated capital allowances 214 (17,534 )
Stock option deductibility (90,209 ) (121,902 )
Balance at 31 December (194,677 ) (104,682 )

18. PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £97,453 (2020 - £105,604). Contributions totalling £17,648 (2020 - £16,987) were payable to the fund at the reporting date and are included in creditors.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

19. CONTINGENT LIABILITIES

At 31 December 2021, there were cash-backed bonds provided by Wells Fargo Bank, secured against cash by credit guarantees in the normal course of business, to the company's bond insurance obligors in respect of Civil Aviation Authority and Association of British Travel Agents bonds amounting to £22,689,941 (2020 - £18,520,586).

In respect of the Civil Aviation Authority ATOL bond, a fixed charge dated 25 September 2017 in favour of Wells Fargo Bank, National Association, secured over present and future assets of the company, was registered at Companies House on 3 October 2017. Similar fixed charges dated 25 September 2018 and 27 September 2021 in favour of Wells Fargo Bank, National Association, secured over present and future assets of the company, were registered at Companies House on 4 October 2018 and 11 October 2021 respectively. In addition to these charges, restricted cash of £22,916,840 is being held by Wells Fargo Bank at 31 December 2021 (2020 - £19,002,913) as security for the provision of the Company's bonds.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

20. RELATED PARTY DISCLOSURES

As at 31 December 2021, the Company was owed £1,528,941 by (2020 - £2,382,034) Viking River Tours Ltd (incorporated in Bermuda), a fellow subsidiary, in respect of the use of cruise ships, netted against the reimbursement of advertising costs incurred in the year and transfers between the two companies. The total purchases from Viking River Tours Ltd in the year amounted to £4,107,865 (2020 - £15,890,622).

Also, Viking River Tours Ltd (incorporated in Bermuda) has provided the Company with loans totalling £2,250,000 (2020 - £2,250,000). As at the statement of financial position date, the full amounts were outstanding. These loans incur interest at 5% per annum (£112,500 - see note 6) and were provided to ensure that the Company met its bonding requirements. These loans are subordinated to the Civil Aviation Authority and cannot be withdrawn or repaid without their prior written consent.

Also, the Company was owed £84,321 by (2020 - owed £915 to) Viking River Cruises Inc, a fellow subsidiary, in respect of intercompany expenses.

Also, the Company was owed £12,804 (2020 - £1,386) by Viking River Cruises AG, a fellow subsidiary, in respect of intercompany expenses.

Also, the Company was owed £NIL (2020 - £46) by Viking Ocean Cruises Finance Ltd, a fellow subsidiary, in respect of intercompany expenses.

Also, the Company was owed £8,594,281 (2020 - £8,452,780) by Viking Cruises Ltd, a fellow subsidiary, in respect of intercompany expenses.

Also, the Company owed £791,091 to (2020 - owed £916,346 by) Viking Ocean Cruises Ltd, a fellow subsidiary, in respect of intercompany expenses and customer deposits. The total purchases from Viking Ocean Cruises Ltd in the year amounted to £2,570,171 (2020 - £2,317,490).

Also, the Company was owed £8,306 (2020 - £8,306) by Viking Cruises China Ltd, a fellow subsidiary, in respect of intercompany expenses.

Also, the Company was owed £16,493 (2020 - £16,493) by Viking Investments Ltd, a fellow subsidiary, in respect of intercompany expenses.

Also, the Company owed £3,305,325 to (2020 - owed £2,662,361 by) Viking Ocean Cruises II Ltd, a fellow subsidiary, in respect of intercompany expenses and customer deposits. The total purchases from Viking Ocean Cruises II Ltd in the year amounted to £8,255,836 (2020 - £4,840,725).

Also, the Company was owed £389,172 (2020 - £386,836) by Viking Cruises USA Ltd, a fellow subsidiary, in respect of intercompany expenses.

Also, the Company was owed £141,968 by (2020 - owed £38,975 to) Viking Expedition Ltd, a fellow subsidiary, in respect of intercompany expenses.

Also, the Company owed £340,895 (2020 - £144,750) to Viking USA LLC, a fellow subsidiary, in respect of intercompany expenses.

None of the transactions above incorporate special terms and conditions and no guarantees were given or received. Outstanding balances are usually settled in cash or by an intercompany offset agreement.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

21. ULTIMATE CONTROLLING PARTY

The whole of the company's issued share capital is owned by Viking River Cruises (Bermuda) Ltd, a company registered in Bermuda, following a migration from Viking River Cruises SA, a company incorporated in Luxembourg. Viking River Cruises (Bermuda) Ltd is a wholly owned subsidiary of Viking River Cruises Ltd, another company incorporated in Bermuda, which is itself a subsidiary of Viking Cruises Ltd, another company incorporated in Bermuda. Viking Cruises Ltd is a wholly owned subsidiary of Viking Holdings Ltd (previously named MISA Investments Limited), a company incorporated in Bermuda and which is the ultimate holding company.

The financial statements will be consolidated into the parent company's financial statements and copies can be obtained from Viking River Cruises Ltd, Clarendon House, 2 Church Street, Hamilton, HM11, Bermuda.

22. RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM
OPERATIONS
2021 2020
£    £   
Profit before income tax 200,236 60,668
Depreciation charges 235,219 322,884
Decrease in amounts owed to the company 8,302,973 (16,931,551 )
Repayment of leases (123,184 ) (196,970 )
Finance costs 116,400 116,306
Finance income (857 ) (57,678 )
8,730,787 (16,686,341 )
(Increase)/decrease in trade and other receivables (8,148,392 ) 15,739,858
Increase in trade and other payables 15,640,077 1,128,431
Cash generated from operations 16,222,472 181,948

23. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2021
31/12/21 1/1/21
£    £   
Cash and cash equivalents 41,515,887 25,646,025
Year ended 31 December 2020
31/12/20 1/1/20
£    £   
Cash and cash equivalents 25,646,025 26,198,099

24. CAPITAL MANAGEMENT POLICIES AND PROCEDURES

The Company's capital management objectives are to ensure the Company's ability to continue as a going concern, so it can provide returns to shareholders and benefits to other stakeholders.

This is achieved by pricing products commensurably with the level of risk and ensuring sufficient bank and other facilities are in place, and collecting customer deposits in a timely manner.

Viking River Cruises UK Limited (Registered number: 01283655)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021


25. SUBSEQUENT EVENTS

During 2022, the Company will continue to operate as outlined in the principal activity note. Following the relaxing of international travel restrictions during the year, the Company's affiliates 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 Company 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.

As a result of the current Russia-Ukraine conflict, in February 2022, the Company's affiliates cancelled all sailings on its river ship in Ukraine for the 2022 season. In March 2022, the Company's affiliates cancelled all sailings on its river ships in Russia for the 2022 season. Additionally, in March 2022, the Company's affiliates cancelled all sailings on their river ships in Russia and Ukraine for the 2023 season.