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REGISTERED NUMBER: 05993481 (England and Wales)















Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 March 2023

for

DIVERSITY TRAVEL LIMITED

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Contents of the Consolidated Financial Statements
for the year ended 31 March 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Statement of Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


DIVERSITY TRAVEL LIMITED

Company Information
for the year ended 31 March 2023







Directors: C Airey
E J Shaw
S J Booy
S Whittle





Registered office: Manchester One
53 Portland Street
Manchester
M1 3LD





Registered number: 05993481 (England and Wales)





Auditors: Haines Watts
Northern Assurance Buildings
9-21 Princess Street
Manchester
M2 4DN

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Group Strategic Report
for the year ended 31 March 2023


The directors present their strategic report of the company and the group for the year ended 31 March 2023.

Review of business
The year ended 31 March 2023 saw the group achieve record revenues with turnover of £16.27m, (surpassing its highest pre-pandemic turnover of £10.28m) and operating profit of £5.51m.
The group continues to diversify its revenue streams with over 20% of sales in the year coming from the US & European markets and its new Diversity Study Trips division. This diversification will be further strengthened by new contract wins during the year of €76m in Europe, and $61m in the US.
The company has maintained a strong balance sheet, with cash representing 91% of the net assets (2022 73%). The liquidity of the Company remains strong with current assets to liabilities cover of 1.7 times, matching the previous year.
Diversity Travel was once again recognised for its quality of service by the industry, with nominations in the Account Manager of the Year and Duty of Care Champion categories at the Business Travel People awards. The company has a rich history of industry recognition and continues to commit to a consistent focus on high quality customer service. Diversity underpins its commitment to quality through maintaining certifications for ISO9001, ISO14001 & ISO27001.
The company's focus on sustainability was also acknowledged, with a nomination for Sustainable Travel Champion at the Annual TTG Top 50 awards.

Financial performance
The group's key financial and other performance indicators during the year were as follows:

Unit 2023 2022
Turnover £    16,272,577 6,250,193
Operating profit £    5,512,791 430,566
Average number of employees 190 130

Post balance sheet event
On 6 September 2023, the company completed a management buyout backed by Primary Capital Partners LLP. The purpose of this transaction was to enable certain founding shareholders to realise their interests in the Group, and to support management through the next stage of the Group's ambitious growth strategy.

Environmental, social, governance
The company maintains a strong focus on ESG. It continues to comply with all environmental legislation and goes beyond the minimum UK and International Standards, by reducing and offsetting environmental impacts wherever possible. Following the declaration by the company board of a Climate Emergency, it has updated and published a 6 pillar Carbon Reduction Strategy, and taken several important steps towards its objective to become a net zero operation, by 2025:

- The company has appointed a Head of Environmental Action to deliver against its Carbon Reduction Strategy objectives.

- It has created a Climate Emergency Team to support its Carbon Reduction plan.

- Its website hosting is now 100% carbon neutral and has achieved the BSI PAS 2060 Carbon Neutral standard.
- The company has maintained its ISO accreditation for Environmental Management (ISO 14001) which it has held since 2008.

- As well as the baseline set by the ISO14001 standard, it has again achieved the Carbon Neutral 2060 standard awarded by the Carbon Footprint Company.

The company provides Diversity Equity and Inclusion (DEI) awareness training to all employees within the business on an annual basis. This includes diversity awareness and unconscious bias training, with additional training for people managers. The company has established a DEI Working Group whose remit is to ensure that as the business grows it continues to reflect the diversity of broader society.

The company conducts an annual equality survey to understand the views and experiences of those within the business who consider themselves a minority. This information is shared with the board and wider workforce and helps inform its activity around talent acquisition and people management.


DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Group Strategic Report
for the year ended 31 March 2023

Principal risks and uncertainties
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. The Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.
The directors are mindful of the continued heightened levels of geopolitical and macro-economic uncertainties, however they are also optimistic that the Group's broad customer base across the charity, academic, NGO and public sectors in multiple markets provides a greater degree of resilience against future macro-economic shocks.
As a business trading with customers in different global markets the Group has some exposure to exchange rate fluctuations, however, the Group maintains processes and controls to manage this risk.
As a result of its continued growth, the Group has reviewed its structure to ensure that its sector leading service standards continue to be maintained.

On behalf of the board:





C Airey - Director


25 September 2023

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Report of the Directors
for the year ended 31 March 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023.

Principal activity
The principal activity of the group in the year under review was that of travel agent.

Dividends
The total distribution of dividends for the year ended 31 March 2023 will be £135,000 (2022: £155,000).

Events since the end of the year
Information relating to events since the end of the year is given in the notes to the financial statements.

Directors
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

C Airey
E J Shaw
S J Booy
S Whittle

Other changes in directors holding office are as follows:

S Burrows - resigned 20 September 2022
M H Truin - resigned 19 April 2022

H Sodha ceased to be a director after 31 March 2023 but prior to the date of this report.

Financial instruments
The group's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the company's operations.

Price risk, credit risk, liquidity risk and cash flow risk
In respect of bank balances, the liquidity risk is managed by holding cash balances in such a way that achieves a competitive rate of interest.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning credit offered to customers and regular monitoring of amounts outstanding. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

The group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. This risk is mitigated as the group both buys and sells in foreign currencies and maintains Euro and US$ bank accounts.

Statement of directors' responsibilities
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Report of the Directors
for the year ended 31 March 2023

Statement of directors' responsibilities - continued
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Auditors
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





C Airey - Director


25 September 2023

Report of the Independent Auditors to the Members of
Diversity Travel Limited


Opinion
We have audited the financial statements of Diversity Travel Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 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 affairs as at 31 March 2023 and of the group's profit 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 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 directors' 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 group's and the parent 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 directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Diversity Travel Limited


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 Report of the Directors.

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 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 Statement of Directors' Responsibilities set out on pages four and five, 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 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.

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 assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the company engagement team included:

- identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

- understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

- challenging assumptions and judgements made by management in its significant accounting estimates, in particular we have vouched items included in the stock provision to actual events after date and compared previous years provisions to actual to ensure reasonable.

- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations

- We have tested a sample of bookings and ensured that they have led to sales included in the accounts as well as increasing the risk in our samples when testing trade debtors that we have tested agreeing to underlying records and cash after date; and

- assessing the extent of compliance with the relevant laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Diversity Travel Limited


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.




David Fort FCA (Senior Statutory Auditor)
for and on behalf of Haines Watts
Northern Assurance Buildings
9-21 Princess Street
Manchester
M2 4DN

27 September 2023

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Consolidated
Statement of Comprehensive
Income
for the year ended 31 March 2023

2023 2022
Notes £ £

Turnover 4 16,272,577 6,250,193

Administrative expenses (10,780,897 ) (6,256,912 )
5,491,680 (6,719 )

Other operating income 21,111 437,285
Operating profit 6 5,512,791 430,566

Restructuring and reorganisation costs 7 - (91,139 )
Profit before taxation 5,512,791 339,427

Tax on profit 8 (906,628 ) (166,089 )
Profit for the financial year 4,606,163 173,338

Other comprehensive income
Foreign exchange variances (38,847 ) (46,967 )
Income tax relating to other comprehensive
income

-

-
Other comprehensive income for the year,
net of income tax

(38,847

)

(46,967

)
Total comprehensive income for the year 4,567,316 126,371

Profit attributable to:
Owners of the parent 4,606,163 173,338

Total comprehensive income attributable to:
Owners of the parent 4,567,316 126,371

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Consolidated Balance Sheet
31 March 2023

2023 2022
Notes £ £ £ £
Fixed assets
Intangible assets 11 3,682,555 2,855,314
Tangible assets 12 270,178 119,333
Investments 13 - -
3,952,733 2,974,647

Current assets
Debtors 14 10,835,500 7,202,486
Cash at bank and in hand 15 11,020,284 5,602,387
21,855,784 12,804,873
Creditors
Amounts falling due within one year 16 12,955,253 7,643,572
Net current assets 8,900,531 5,161,301
Total assets less current liabilities 12,853,264 8,135,948

Provisions for liabilities 18 730,000 445,000
Net assets 12,123,264 7,690,948

Capital and reserves
Called up share capital 19 141,429 141,429
Share premium 20 110,230 110,230
Retained earnings 20 11,871,605 7,439,289
Shareholders' funds 12,123,264 7,690,948

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2023 and were signed on its behalf by:





C Airey - Director


DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Company Balance Sheet
31 March 2023

2023 2022
Notes £ £ £ £
Fixed assets
Intangible assets 11 3,607,524 2,770,158
Tangible assets 12 256,958 102,049
Investments 13 - -
3,864,482 2,872,207

Current assets
Debtors 14 11,510,728 8,344,192
Cash at bank and in hand 15 10,463,724 5,445,829
21,974,452 13,790,021
Creditors
Amounts falling due within one year 16 11,688,408 7,489,841
Net current assets 10,286,044 6,300,180
Total assets less current liabilities 14,150,526 9,172,387

Provisions for liabilities 18 730,000 445,000
Net assets 13,420,526 8,727,387

Capital and reserves
Called up share capital 19 141,429 141,429
Share premium 20 110,230 110,230
Retained earnings 20 13,168,867 8,475,728
Shareholders' funds 13,420,526 8,727,387

Company's profit for the financial year 4,772,228 517,398

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2023 and were signed on its behalf by:





C Airey - Director


DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Consolidated Statement of Changes in Equity
for the year ended 31 March 2023

Called up
share Retained Share Total
capital earnings premium equity
£ £ £ £

Balance at 1 April 2021 141,429 7,467,918 110,230 7,719,577

Changes in equity
Dividends - (155,000 ) - (155,000 )
Total comprehensive income - 126,371 - 126,371
Balance at 31 March 2022 141,429 7,439,289 110,230 7,690,948

Changes in equity
Dividends - (135,000 ) - (135,000 )
Total comprehensive income - 4,567,316 - 4,567,316
Balance at 31 March 2023 141,429 11,871,605 110,230 12,123,264

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Company Statement of Changes in Equity
for the year ended 31 March 2023

Called up
share Retained Share Total
capital earnings premium equity
£ £ £ £

Balance at 1 April 2021 141,429 8,075,417 110,230 8,327,076

Changes in equity
Dividends - (155,000 ) - (155,000 )
Total comprehensive income - 555,311 - 555,311
Balance at 31 March 2022 141,429 8,475,728 110,230 8,727,387

Changes in equity
Dividends - (135,000 ) - (135,000 )
Total comprehensive income - 4,828,139 - 4,828,139
Balance at 31 March 2023 141,429 13,168,867 110,230 13,420,526

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Consolidated Cash Flow Statement
for the year ended 31 March 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 6,966,955 (942,653 )
Tax paid 337,914 50,409
Net cash from operating activities 7,304,869 (892,244 )

Cash flows from investing activities
Purchase of intangible fixed assets (1,493,380 ) (1,652,767 )
Purchase of tangible fixed assets (226,801 ) (74,979 )
Interest received 21,111 3,567
Net cash from investing activities (1,699,070 ) (1,724,179 )

Cash flows from financing activities
Amount introduced by directors - 456
Equity dividends paid (135,000 ) (155,000 )
Net cash from financing activities (135,000 ) (154,544 )

Increase/(decrease) in cash and cash equivalents 5,470,799 (2,770,967 )
Cash and cash equivalents at beginning
of year

2

5,602,387

8,356,082
Effect of foreign exchange rate changes (52,902 ) 17,272
Cash and cash equivalents at end of year 2 11,020,284 5,602,387

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Cash Flow Statement
for the year ended 31 March 2023


1. Reconciliation of profit before taxation to cash generated from operations
2023 2022
£ £
Profit before taxation 5,512,791 339,427
Depreciation charges 756,367 354,853
Interest Receivable (21,111 ) (3,567 )
6,248,047 690,713
Increase in trade and other debtors (3,686,511 ) (5,230,189 )
Increase in trade and other creditors 4,405,419 3,596,823
Cash generated from operations 6,966,955 (942,653 )

2. Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023
31/3/23 1/4/22
£ £
Cash and cash equivalents 11,020,284 5,602,387
Year ended 31 March 2022
31/3/22 1/4/21
£ £
Cash and cash equivalents 5,602,387 8,356,082


3. Analysis of changes in net funds

At 1/4/22 Cash flow At 31/3/23
£ £ £
Net cash
Cash at bank and in hand 5,602,387 5,417,897 11,020,284
5,602,387 5,417,897 11,020,284
Total 5,602,387 5,417,897 11,020,284

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements
for the year ended 31 March 2023


1. Statutory information

Diversity Travel 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 General Information page.

2. Statement of compliance

The individual financial statements of Diversity Travel Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006.

3. Accounting policies

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Basis of consolidation
The Group consolidated financial statements include the financial statements of the Company and its subsidiary undertakings made up to 31 March 2023.

A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

All intra-Group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the Group’s interest in the entity.

Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates that affect amounts recognised for assets and liabilities at the reporting date and the amounts of revenue and expenses incurred during the reporting period. Actual outcomes may differ from these judgements, estimates and assumptions. The judgements, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the Group as at 31 March 2023 are discussed below:

a) Recoverability of trade debtors
The recoverability of trade debtors is regularly reviewed in the light of the available economic information specific to each trade debtor and specific provisions are recognised for the balance considered to be at risk or irrecoverable.

b) Tangible and Intangible fixed assets
The management of the Group also exercises judgement in estimating the useful life of property, plant and equipment and website development costs.

Turnover
Turnover is recorded at the margin earned rather than the amount invoiced to customers. The directors believe that this presentation properly reflects the substance of the underlying transactions.

Gross value of worked performed is a memorandum disclosure in the Strategic Report and represents the total transaction value of all services and hence includes the total amount paid by customers for the service provided, as opposed to the margin earned per the company's turnover definition. The company reports total transaction value since the directors believe it reflects more accurately the cash flows within the company. It is also a widely used measure of company size within the travel sector.

Turnover in the company consists largely of margin on sales of airfares on scheduled flights as well as other travel products and services. The company recognises revenue at the point at which the tickets are issued. The customer generally does not have the ability to cancel tickets or obtain refunds after ticketing, and all amounts payable have been received. In cases where customers have the ability to cancel and obtain refunds after ticketing, the company is able to estimate its refund obligations and such obligations are accounted for.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of ten years.

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


3. Accounting policies - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three to seven years.

As at the 1st April 2018 the group changed their recognition policy of development costs. As from this date the company recognised development costs as an intangible fixed assets whereas previously the group had charged them to the profit and loss accounts.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - Straight line over 6 years
Fixtures and fittings - 25% straight line
Computer equipment - 50% straight line and 25% straight line

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Operating lease commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


3. Accounting policies - continued

Financial instruments
The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets

Basic financial assets, including trade and other debtors, loans to fellow group companies and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the profit or loss.

There are no assets which are initially measured at fair value.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit and loss.

Financial liabilities
Basic financial liabilities, including trade and other creditors and loans from fellow group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classifies as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Dividends
Dividends and other distributions to company's shareholder are recognised as a liability in the financial statements in the period in which the dividends and the other distributions are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity.

4. Turnover

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2023 2022
£ £
Commissions 16,272,577 6,250,193
16,272,577 6,250,193

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


5. Employees and directors
2023 2022
£ £
Wages and salaries 7,123,407 4,125,318
Social security costs 571,267 366,833
Other pension costs 123,827 66,513
7,818,501 4,558,664

The average number of employees during the year was as follows:
2023 2022

Non-Directors 185 124
Directors 5 6
190 130


6. Operating profit

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 180,532 222,764
Depreciation - owned assets 76,263 75,495
Amortisation 680,104 279,357
Auditors' remuneration 21,275 15,000
Foreign exchange differences (145,672 ) (107,698 )
Bad debts - (2,346 )

Directors' remuneration 381,798 495,207
Directors' pension contributions to money purchase schemes 6,723 6,601

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

Money purchase schemes 4 5


7. Exceptional items
2023 2022
£ £
Restructuring and reorganisation costs - (91,139 )

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


8. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax 568,131 3,089
(Over)/under provision PY 53,497 -
Total current tax 621,628 3,089

Deferred tax 285,000 163,000
Tax on profit 906,628 166,089

UK corporation tax has been charged at 19 % .

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 5,512,791 339,427
Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2022 - 19 %)

1,047,430

64,491

Effects of:
Expenses not deductible for tax purposes 2,191 8,358
Income not taxable for tax purposes (17,899 ) (18,942 )
Capital allowances in excess of depreciation (126,784 ) (166,880 )
Utilisation of tax losses (29,619 ) (11,056 )
Adjustments to tax charge in respect of previous periods (288,763 ) -

Losses carried forward 35,072 127,118
Deferred tax 285,000 163,000

Total tax charge 906,628 166,089

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£ £ £
Foreign exchange variances (38,847 ) - (38,847 )

2022
Gross Tax Net
£ £ £
Foreign exchange variances (46,967 ) - (46,967 )

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


9. Individual statement of comprehensive income

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


10. Dividends

2023 2022
£    £   
A Ordinary shares of £1 each
Interim 95,000 95,000
B Ordinary shares of £1 each
Interim 25,000 35,000
C Ordinary shares of £1 each
Interim 15,000 -
D Ordinary shares of £1 each
Interim - 25,000
135,000 155,000

11. Intangible fixed assets

Group
Computer
Goodwill software Totals
£ £ £
Cost
At 1 April 2022 145,981 3,376,780 3,522,761
Additions - 1,493,380 1,493,380
Exchange differences 9,256 11,531 20,787
At 31 March 2023 155,237 4,881,691 5,036,928
Amortisation
At 1 April 2022 60,825 606,622 667,447
Amortisation for year 14,598 665,506 680,104
Exchange differences 4,783 2,039 6,822
At 31 March 2023 80,206 1,274,167 1,354,373
Net book value
At 31 March 2023 75,031 3,607,524 3,682,555
At 31 March 2022 85,156 2,770,158 2,855,314

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


11. Intangible fixed assets - continued

Company
Computer
software
£
Cost
At 1 April 2022 3,376,780
Additions 1,493,380
Exchange differences 11,531
At 31 March 2023 4,881,691
Amortisation
At 1 April 2022 606,622
Amortisation for year 665,506
Exchange differences 2,039
At 31 March 2023 1,274,167
Net book value
At 31 March 2023 3,607,524
At 31 March 2022 2,770,158

12. Tangible fixed assets

Group
Fixtures
Long and Motor Computer
leasehold fittings vehicles equipment Totals
£ £ £ £ £
Cost
At 1 April 2022 208,839 385,500 - 369,828 964,167
Additions 34,356 2,533 88,690 101,222 226,801
Exchange differences 2,101 145 - 2,015 4,261
At 31 March 2023 245,296 388,178 88,690 473,065 1,195,229
Depreciation
At 1 April 2022 181,929 382,578 - 280,327 844,834
Charge for year 22,004 2,001 4,516 47,741 76,262
Exchange differences 1,893 145 - 1,917 3,955
At 31 March 2023 205,826 384,724 4,516 329,985 925,051
Net book value
At 31 March 2023 39,470 3,454 84,174 143,080 270,178
At 31 March 2022 26,910 2,922 - 89,501 119,333

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


12. Tangible fixed assets - continued

Company
Fixtures
Long and Motor Computer
leasehold fittings vehicles equipment Totals
£ £ £ £ £
Cost
At 1 April 2022 175,710 383,219 - 338,431 897,360
Additions 26,252 2,533 88,690 100,843 218,318
Exchange differences - 145 - - 145
At 31 March 2023 201,962 385,897 88,690 439,274 1,115,823
Depreciation
At 1 April 2022 157,275 380,296 - 257,740 795,311
Charge for year 16,799 2,001 4,516 40,093 63,409
Exchange differences - 145 - - 145
At 31 March 2023 174,074 382,442 4,516 297,833 858,865
Net book value
At 31 March 2023 27,888 3,455 84,174 141,441 256,958
At 31 March 2022 18,435 2,923 - 80,691 102,049

13. Fixed asset investments

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

Subsidiaries

Diversity Travel Incorporated
Registered office: 1530 Wilson Boulevard, Suite 113, Arlington, Virginia, 22209.
Nature of business: Travel Agent
%
Class of shares: holding
Ordinary 100.00

The company owns 1,000 ordinary shares that have a par value of £nil.

Diversity Travel Limited
Registered office: Core B, Block 71, The Plaza, Park West, Dublin
Nature of business: Travel Agent
%
Class of shares: holding
Ordinary 100.00


All subsidiaries are included in the consolidated financial statements.

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


14. Debtors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£ £ £ £
Trade debtors 9,320,575 5,842,574 8,283,393 5,659,017
Amounts owed by group undertakings - - 1,752,125 1,350,037
Other debtors 986,568 1,024,199 986,563 1,023,828
Tax - 53,497 - 53,497
VAT - 50,322 - 50,322
Prepayments and accrued income 528,357 231,894 488,647 207,491
10,835,500 7,202,486 11,510,728 8,344,192

Trade debtors are stated after provisions for impairment of £53,119 (2022: £53,119).

15. Cash at bank and in hand

The company's bank has provided bond facilities which are secured by a charge over cash deposits, which at 31 March 2023 amounted to £142,578 (2022 - £250,376).

16. Creditors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£ £ £ £
Trade creditors 10,721,456 6,074,737 9,583,140 5,801,760
Amounts owed to group undertakings - - - 207,186
Corporation tax 911,394 5,132 906,046 -
Social security and other taxes 187,710 123,414 185,959 122,876
VAT 7,556 - 7,556 -
Other creditors 53,458 87,254 50,630 87,254
Accruals and deferred income 1,073,679 1,353,035 955,077 1,270,765
12,955,253 7,643,572 11,688,408 7,489,841

Included in trade creditors is £3,305,494 (2022 - £3,184,609) that relates to the billing and settlement plan.

17. Leasing agreements

Minimum lease payments fall due as follows:

Group
Non-cancellable
operating leases
2023 2022
£ £
Within one year 132,263 192,981
Between one and five years 137,312 -
269,575 192,981

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


17. Leasing agreements - continued

Company
Non-cancellable
operating leases
2023 2022
£ £
Within one year 132,263 191,423
Between one and five years 137,312 -
269,575 191,423

18. Provisions for liabilities

Group Company
2023 2022 2023 2022
£ £ £ £
Deferred tax
Accelerated capital allowances 730,000 445,000 730,000 445,000

Group
Deferred tax
£
Balance at 1 April 2022 445,000
Provided during year 285,000
Balance at 31 March 2023 730,000

Company
Deferred tax
£
Balance at 1 April 2022 445,000
Provided during year 285,000
Balance at 31 March 2023 730,000

19. Called up share capital

Allotted and issued:
Number: Class: Nominal 2023 2022
value: £    £   
99,000 A ordinary £1 99,000 99,000
14,143 B ordinary £1 14,143 14,143
14,143 C ordinary £1 14,143 14,143
14,143 D ordinary £1 14,143 14,143
141,429 141,429

All shares have full voting rights, full rights to participate in a distribution of income and capital and are non-redeemable.

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


20. Reserves

Group
Retained Share
earnings premium Totals
£ £ £

At 1 April 2022 7,439,289 110,230 7,549,519
Profit for the year 4,606,163 - 4,606,163
Dividends (135,000 ) - (135,000 )
Foreign exchange variances (38,847 ) - (38,847 )
At 31 March 2023 11,871,605 110,230 11,981,835

Company
Retained Share
earnings premium Totals
£ £ £

At 1 April 2022 8,475,728 110,230 8,585,958
Profit for the year 4,772,228 - 4,772,228
Dividends (135,000 ) - (135,000 )
Foreign exchange variances 55,911 - 55,911
At 31 March 2023 13,168,867 110,230 13,279,097


21. Pension commitments

The company operates defined contribution pension schemes. The pension cost charge for the year represents contributions payable by the company to the schemes and amounted to £123,826 (2022 - £66,513).

Contributions totalling £35,360 (2022 - £22,903) were payable to the schemes at the end of the year and are included in creditors.

22. Directors' advances, credits and guarantees

Directors

During the year, total dividends of £135,000 (2022 - £155,000) were paid to the directors.

23. Related party disclosures

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Other related parties
2023 2022
£ £
Amount due from related party 985,000 1,021,558
Amount due to related party 14,883 -

The parties are related through common directors.

DIVERSITY TRAVEL LIMITED (REGISTERED NUMBER: 05993481)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


24. Post balance sheet events

On the 6 September 2023, the company completed a management buy out. Refer to the strategic report for more detail.`

25. Ultimate controlling party

The controlling party is H Sodha.

He controls the company by virtue of owning the majority of the issued share capital.