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Registered number: 06802961









IMAGINE ENTERPRISES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
IMAGINE ENTERPRISES LIMITED
 
 
COMPANY INFORMATION


Directors
R J Deller 
N A Maye 
S J Allen 
A E Pollard 
J L Russell 




Registered number
06802961



Registered office
2nd Floor, Nucleus House
2 Lower Mortlake Road

Richmond

TW9 2JA




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

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA





 
IMAGINE ENTERPRISES LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 7
Independent Auditors' Report
8 - 12
Consolidated Income Statement
13
Consolidated Statement of Comprehensive Income
14
Consolidated Statement of Financial Position
15
Company Statement of Financial Position
16
Consolidated Statement of Changes in Equity
17
Company Statement of Changes in Equity
18
Consolidated Statement of Cash Flows
19
Consolidated Analysis of Net Debt
20
Notes to the Financial Statements
21 - 46


 
IMAGINE ENTERPRISES LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The directors present their strategic report of the Company (Imagine Enterprises Limited) and the Group (Imagine Enterprises Limited and its subsidiaries) for the year ended 31 March 2023.

Business review
 
The Group is required by the Companies Act 2006 to set out in this report, a fair review of the business of the Group and the Company during the financial year ended 31 March 2023, the position of the Group and the Company at the end of the period and a description of the principal risks and uncertainties facing the Group. This review is prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed, and the business review should not be relied upon by any other party or for any other purpose.
The Group has seen a strong recovery since the lifting of travel restrictions towards the second half of 2021 following the COVID-19 pandemic, taking its highest number of bookings to date in the 2022/23 year. Additionally, the Australian federal cruise ban was lifted from 17 April 2022, allowing passengers to travel on cruises once again and kicking off a recovery in the Australian markets. During the period, the Group still saw some repercussions from the COVID-19 pandemic with cruise itinerary changes, flight schedule changes and some remaining travel restrictions in a handful of countries. As a result, the Group continued its proactive approach to customer trips during the COVID-19 pandemic, successfully rearranging the majority of trips that could not be taken to future travel dates and providing refunds where requested to provide the best possible care and service for existing clients. Management also continued its opportunistic approach by launching several successful chartered cruises and rail journeys during the year. Consequently, the directors are satisfied with the performance of the Group during the year.
The Group responded to the pandemic by reducing its cost base. Management continue to take action in relation to discretionary expenditure and to minimise overheads where possible to aid recovery since the pandemic.
The key performance indicators used by the directors to monitor the progress of the Group are set out below:-

2023
2022
£
£
Key performance indicators
Turnover - commission and margin

182,228,799

48,941,951

Gross profit

45,033,140

12,525,686

Gross profit as a percentage of turnover

24.71%

25.59%

Operating profit/(loss)

10,808,998

(12,005,564)

Profit/(Loss) on ordinary activities before taxation

10,945,792

(11,814,783)


Principal risks and uncertainties
 
The following risk factors may affect the Group's operating results and its financial position. The risk factors described below are those which the directors believe are potentially significant but should not be regarded as a complete and comprehensive statement of all potential risk and uncertainties facing the Group. 
The demand for holidays is affected by local economic conditions. During 2022 and into 2023, the war in Ukraine and subsequent cost of living crisis has affected the cost of holiday arrangements and resulted in consumers having less discretionary spending available for holidays, however this has been compensated by the high level of pent up demand following the easing of travel restrictions after the COVID-19 pandemic. Changes to airline schedules also affected the Group's ability to deliver holidays as airlines struggled to provide enough capacity to meet demand in the months following the pandemic.
 
Page 1

 
IMAGINE ENTERPRISES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Principal risks and uncertainties (continued)
The Group is exposed to various regulators, including the Civil Aviation Authority ("CAA"), which issues an Air Travel Organisers Licence ("ATOL"), which is required in order for the Group to operate. This 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 website (www.caa.co.uk).
The Group operates in a highly competitive market featuring innovation in the travel products and the methods by which it is marketed, as well as price pressures. The Group seeks to constantly invest in its brand to increase public awareness as well as offer a wide selection of products from a wide range of suppliers at competitive prices to maintain its market position. The Group also monitors competitor activity closely.
The Group is exposed to foreign exchange rate risk when it purchases overseas holiday services in currencies other than British Pounds. Monetary assets and liabilities are translated at the exchange rate prevailing at the statement of financial position date. All exchange gains and losses so arising are taken to the income statement. The Group partially hedges this risk and where not hedged, the Group bears the risk associated with such foreign exchange movements.
The Group has well established and close relationships with customers and suppliers and risk is spread by not placing over-reliance on any one supplier in any particular area. However, if a relationship were lost or damaged with a major supplier this could have a detrimental effect on the business. The management team meets regularly with suppliers to maintain good working relationships and to understand the supplier's financial position.
The Group 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 Group to carry on its business effectively. The Group has made arrangements to mitigate this risk.
The nature of the business exposes the Group to various commercial risks which may affect the trading performance of the Group. These include:
- acts of terrorism, particularly in key tourist destinations
- epidemics in key tourist destinations which threaten the health of tourists
- wars or other international uncertainty which affects air travel
- natural disasters in key tourist destinations
- weather conditions, both in the UK and key tourist destinations
- changes in customer behaviour and preferences
- increase in government taxes
These factors may affect the Group by causing potential customers to cancel or postpone travel plans, reducing the earnings potential of the Group. The Group seeks to minimise such risks by operating a flexible limited commitment business model with the ability to shift capacity amongst a variety of destinations where necessary. In the case of a global shut down of the cruise industry, as we experienced with the COVID-19 pandemic, the Group seeks to mitigate risk by aggressive cost cutting, while protecting its ability to effectively compete in the future.

Page 2

 
IMAGINE ENTERPRISES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Directors' statement of compliance with duty to promote the success of the Group
 
The directors believe that they have acted at all times to promote the success of the Group for the benefit of its members as a whole. In doing so, the Board has considered the interests of a range of stakeholders impacted by the business, as well as having regard for the matters set out in s.172(1) of the Companies Act 2006, namely: 
- the likely consequences of any decisions in the long term;
- the interests of the Group's employees;
- the need to foster the Group's business relationships with suppliers, customers and others;
- the impact of the Group's operations on the community and the environment;
- the desirability of the Group maintaining a reputation for high standards of business conduct; and
- the need to act fairly as between members of the Group. 


This report was approved by the board on 24 October 2023 and signed on its behalf.



................................................
R J Deller
Director

Page 3

 
IMAGINE ENTERPRISES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Principal activity

The principal activity of the Group in the year under review was that of travel agents and tour operators specialising in cruising. 
The Company's principal activity in the year was that of acting as a group holding company. It is the Company's subsidiaries which trade and operate as travel agents and tour operators specialising in cruising.

Results and dividends

The profit for the year, after taxation, amounted to £9,626,036 (2022 - loss £10,381,863).

The directors do not recommend a final dividend for the year ended 31 March 2023.
The total distribution of dividends for the year ended 31 March 2023 was £Nil (2022 - £Nil).

Page 4

 
IMAGINE ENTERPRISES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


Directors

The directors who served during the year were:

R J Deller 
N A Maye 
S J Allen 
A E Pollard 
J L Russell 

Charitable donations and expenditure

During the period the Group made charitable donations and sponsorships totalling £120,694 (2022 - £21,658). The recipients and amounts of the main donations are as follows:

2023
2022
£
£


General sponsorships
82,310
2,712

Prospect Hospice
23,267
18,946

Humanitarian Aid Fund GB
11,000
-

Julia's House Children's Hospice
4,117
-

Research and development activities

The Group's growth requires investment in cutting edge technology and the ability to deliver fast, innovative and effective search results for consumers in a market that has seen significant technological advances in recent years. During the year the Group made significant investment into software development.

Engagement with employees

The Group has a culture of continuous improvement through investment in people at all levels within the Group, looking to encourage and develop all members of staff to realise their full potential. Wherever possible, vacancies are filled from within the Group and adequate opportunities for internal promotion are created. 
The Group is committed to pursuing equality and diversity in all of its employment activities including recruitment, training, career development and promotion and ensuring there is no bias or discrimination in the treatment of employees. 
Employees are consulted regularly about changes which may affect them through regular meetings, which are used to ensure that employees are kept up to date with the business performance of their employer and the financial and economic factors affecting the performance of the Group. 

Page 5

 
IMAGINE ENTERPRISES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Disabled employees

Through its diversity policy, the Group seeks to ensure that every employee, without exception, is treated equally and fairly and that all employees are aware of their responsibilities.
The Group's policies and procedures fully support our disabled colleagues. We take active measures to do so via:
- A robust and reasonable adjustment policy;
- disability-specific resources maintained by HR; and
- processes to ensure that colleagues are fully supported.
The Group is responsive to the needs of its employees. As such, should any employee of the Group become disabled during their time with us, we will actively retrain that employee and make reasonable adjustments to their working environment where possible, in order to keep the employee with the Group. It is the policy of the Group that the recruitment, training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Branches outside the United Kingdom

Within the Group, the UK subsidiary, Imagine Cruising Limited, maintained branches in both Germany and the Emirate of Dubai, UAE, both of which have been wound down and closed during previous years. Additionally, one of the Group's Australian subsidiaries, Imagine Cruising (Pty) Limited, maintains a branch in New Zealand. 

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption for the year are 13,718 kgCO2e and 159,915 kWh.

The Group has historically applied “GHG Reporting Protocol – Corporate Standard” methodology.
The Group is reporting as a large, unquoted Group.
The operational control approach has been used to identify the boundaries, from which the Group has identified three scopes for reporting:
- Scope 1 direct emissions issued from sources directly controlled by the Group, such as stationary combustion equipment for building heating
- Scope 2 indirect emissions from electricity production, or from imported heat or vapor consumed in the buildings and equipment operation, provided by an external party
- Scope 3 other indirect emissions issued from Group activities but controlled by external parties, principally staff mileage claims
The Group is committed to minimising the negative impact that our actions have on the environment.

We continue to look at ways to minimise travel through continued use of video meeting technology, taking lessons from the pandemic as to how business can be conducted efficiently. We continue to advocate a hybrid working policy and local staff are encouraged to take up cycle-to-work schemes.

Page 6

 
IMAGINE ENTERPRISES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Matters covered in the Group Strategic Report

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

Disclosure of information to auditors

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

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

Future developments and post balance sheet events

During 2023, the Group will continue to operate as outlined in the principal activity note above. Business continues to grow following the COVID-19 pandemic, with demand for holidays having recovered to pre-pandemic levels and the Group has positioned itself to be able to capitalise on the significant pent-up demand from consumers for cruise holidays. 
There have been no significant events affecting the Group since the year end, except for the continued effects of the cost of living crisis, which has had a significant impact upon the national economy, as described in note 2.3.

Auditors

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

This report was approved by the board on 24 October 2023 and signed on its behalf.
 



................................................
R J Deller
Director

Page 7

 
IMAGINE ENTERPRISES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IMAGINE ENTERPRISES LIMITED
 

Opinion


We have audited the financial statements of Imagine Enterprises Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Group Income Statement, the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Page 8

 
IMAGINE ENTERPRISES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IMAGINE ENTERPRISES LIMITED (CONTINUED)


Material uncertainty related to going concern


In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 2.3 to the financial statements concerning the Group’s ability to continue as a going concern.
As explained in note 2.3, the COVID-19 pandemic and the recent war in Ukraine have had an unprecedented impact upon the global economy and especially upon the travel industry. These problematic trading conditions negatively impacted the Group’s trade and the Group’s current assets. 
We draw attention to note 2.3 of the financial statements as to the review and actions undertaken by the Board of Directors to ensure that the Group has adequate resources to continue trading for at least 12 months. The financial statements have therefore been prepared on a going concern basis.


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the Group's ability to continue to adopt the going concern basis of accounting included obtaining and testing the Group's budgets and forecasts for the years ended 31 March 2024 and 31 March 2025, including reviewing the key assumptions behind these from the latest available information, both internal and external; reviewing the continuing steps taken by management to manage liquidity, control current costs, utilise government assistance and raise further finance; reviewing the Group's continued compliance and correspondence with its key regulator, the Civil Aviation Authority (CAA) and assessing any threat to the continuation of its Air Travel Organisers Licence (ATOL); reviewing the minutes of the regular Board meetings and performing an overall assessment of the Group's internal finance function and controls.


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 9

 
IMAGINE ENTERPRISES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IMAGINE ENTERPRISES LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 10

 
IMAGINE ENTERPRISES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IMAGINE ENTERPRISES LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- We exercise professional judgment and maintain professional skepticism throughout the audit;
- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control;
- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control;
- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;
- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
- We review the scope of the Group's compliance with The Package and Linked Travel Arrangements Regulations 2018 (“PTRs”) and sample test relevant documentation to assess this and the effectiveness of its control environment;
- We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements;
- We review the Group's relationships with related parties, 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 Auditors' Report.

Page 11

 
IMAGINE ENTERPRISES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IMAGINE ENTERPRISES LIMITED (CONTINUED)



Use of our report
 

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





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

24 October 2023
Page 12

 
IMAGINE ENTERPRISES LIMITED
 
 
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
182,228,799
48,941,951

Cost of sales
  
(137,195,659)
(36,416,265)

Gross profit
  
45,033,140
12,525,686

Administrative expenses
  
(33,554,631)
(24,653,302)

Exceptional administrative expenses
  
(1,758,425)
(41,960)

Other operating income
 5 
1,088,914
164,012

Operating profit/(loss)
 6 
10,808,998
(12,005,564)

Interest receivable and similar income
 10 
248,044
190,730

Interest payable and similar expenses
 11 
(111,250)
51

Profit/(loss) before tax
  
10,945,792
(11,814,783)

Tax on profit/(loss)
 12 
(1,319,756)
1,432,920

Profit/(loss) for the financial year
  
9,626,036
(10,381,863)

Profit/(loss) for the year attributable to:
  

Owners of the parent
  
9,626,036
(10,381,863)

The notes on pages 21 to 46 form part of these financial statements.

Page 13

 
IMAGINE ENTERPRISES LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£


Profit/(loss) for the financial year

  

9,626,036
(10,381,863)

Other comprehensive income
  


Foreign exchange revaluation of reserves
  
567,697
(253,959)

Movement in unrealised foreign exchange reserve
  
(16,795)
(58,404)

Other comprehensive income for the year
  
550,902
(312,363)

Total comprehensive income for the year
  
10,176,938
(10,694,226)

Profit/(loss) for the year attributable to:
  


Owners of the parent Company
  
9,626,036
(10,381,863)

Total comprehensive income attributable to:
  


Owners of the parent Company
  
10,176,938
(10,694,226)

The notes on pages 21 to 46 form part of these financial statements.

Page 14

 
IMAGINE ENTERPRISES LIMITED
REGISTERED NUMBER: 06802961

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
133,957
559,330

Tangible assets
 15 
922,937
646,875

  
1,056,894
1,206,205

Current assets
  

Debtors: amounts falling due after more than one year
 17 
867,911
8,196,817

Debtors: amounts falling due within one year
 17 
169,590,305
153,423,665

Cash at bank and in hand
 18 
19,432,172
20,442,990

  
189,890,388
182,063,472

Creditors: amounts falling due within one year
 19 
(214,104,358)
(216,034,995)

Net current liabilities
  
 
 
(24,213,970)
 
 
(33,971,523)

Total assets less current liabilities
  
(23,157,076)
(32,765,318)

Provisions for liabilities
  

Other provisions
 21 
(272,882)
(841,578)

  
 
 
(272,882)
 
 
(841,578)

Net liabilities
  
(23,429,958)
(33,606,896)


Capital and reserves
  

Called up share capital 
 22 
1,100
1,100

Foreign exchange reserve
 23 
(219,355)
(202,560)

Profit and loss account
 23 
(23,211,703)
(33,405,436)

  
(23,429,958)
(33,606,896)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 October 2023.



................................................
R J Deller
Director

The notes on pages 21 to 46 form part of these financial statements.

Page 15

 
IMAGINE ENTERPRISES LIMITED
REGISTERED NUMBER: 06802961

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 16 
1,647,037
1,647,037

  
1,647,037
1,647,037

  

Creditors: amounts falling due within one year
 19 
(902,909)
(902,909)

Net current liabilities
  
 
 
(902,909)
 
 
(902,909)

Total assets less current liabilities
  
744,128
744,128

  

  

Net assets
  
744,128
744,128


Capital and reserves
  

Called up share capital 
 22 
1,100
1,100

Profit and loss account brought forward

  

743,028
743,028

Profit and loss account carried forward
  
743,028
743,028

  
744,128
744,128


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 October 2023.


................................................
R J Deller
Director

The notes on pages 21 to 46 form part of these financial statements.

Page 16

 
IMAGINE ENTERPRISES LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Foreign exchange reserve
Profit and loss account
Total equity

£
£
£
£


At 1 April 2021
1,100
(144,156)
(22,769,614)
(22,912,670)


Comprehensive income for the year

Loss for the year
-
-
(10,381,863)
(10,381,863)

Foreign exchange revaluation of reserves
-
-
(253,959)
(253,959)

Movement in unrealised foreign exchange reserve
-
(58,404)
-
(58,404)
Total comprehensive income for the year
-
(58,404)
(10,635,822)
(10,694,226)



At 1 April 2022
1,100
(202,560)
(33,405,436)
(33,606,896)


Comprehensive income for the year

Profit for the year
-
-
9,626,036
9,626,036

Foreign exchange revaluation of reserves
-
-
567,697
567,697

Movement in unrealised foreign exchange reserve
-
(16,795)
-
(16,795)
Total comprehensive income for the year
-
(16,795)
10,193,733
10,176,938


At 31 March 2023
1,100
(219,355)
(23,211,703)
(23,429,958)


The notes on pages 21 to 46 form part of these financial statements.

Page 17

 
IMAGINE ENTERPRISES LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2021
1,100
743,028
744,128


Other comprehensive income for the year
-
-
-



At 1 April 2022
1,100
743,028
744,128


Other comprehensive income for the year
-
-
-


At 31 March 2023
1,100
743,028
744,128


The notes on pages 21 to 46 form part of these financial statements.

Page 18

 
IMAGINE ENTERPRISES LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
9,626,036
(10,381,863)

Adjustments for:

Amortisation of intangible assets
476,785
632,063

Depreciation of tangible assets
421,770
420,802

Loss on disposal of tangible assets
(2,079)
(99)

Taxation charge
1,319,756
(1,432,920)

(Increase) in debtors
(8,970,462)
(26,951,188)

Decrease in amounts owed by groups
177,149
17,031

(Decrease)/increase in creditors
(2,228,555)
46,154,070

(Decrease)/increase in provisions
(554,400)
-

Corporation tax (paid)
(473,087)
(111,728)

Net cash generated from operating activities

(207,087)
8,346,168


Cash flows from investing activities

Purchase of intangible fixed assets
(100,404)
(29,558)

Purchase of tangible fixed assets
(710,921)
(349,080)

Sale of tangible fixed assets
7,594
99

Net cash from investing activities

(803,731)
(378,539)


Net (decrease)/increase in cash and cash equivalents
(1,010,818)
7,967,629

Cash and cash equivalents at beginning of year
20,442,990
12,475,361

Cash and cash equivalents at the end of year
19,432,172
20,442,990


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
19,432,172
20,442,990


The notes on pages 21 to 46 form part of these financial statements.

Page 19

 
IMAGINE ENTERPRISES LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023




At 1 April 2022
Cash flows
At 31 March 2023
£

£

£

Cash at bank and in hand

20,442,990

(1,010,818)

19,432,172


20,442,990
(1,010,818)
19,432,172

The notes on pages 21 to 46 form part of these financial statements.

Page 20

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

As disclosed in the Directors' Report, the principal activity of the Group in the year under review continued to be that of travel agents and tour operators specialising in cruising. 
The Company's principal activity in the year was that of acting as a group holding company. It is the Company's subsidiaries which trade and operate as travel agents and tour operators specialising in cruising.
The Company is a private company limited by shares and is incorporated in England. The address of the company's principal place of business, being different to the registered office stated on the Company Information page, is:
Portland House
Interface Business Park
Bincknoll Lane
Royal Wootton Bassett
SN4 8SY

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.

Page 21

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.3

Going concern

The COVID-19 pandemic had an unprecedented impact upon the global economy and in particular upon the travel industry, causing many consumers to cancel, amend their travel arrangements or not travel at all. The travel industry is experiencing the benefit of a post COVID-19 bounce back in travel and supplier capacity has been gradually recovering back to pre-pandemic levels. This, combined with consumer unease in relation to the current economic environment, with increasing energy costs and inflation, has meant that Group management and the directors have continued to review the Group’s financial position, as well as forecasts and plan mitigation actions in order to neutralise the financial impact from the significant downturn in trading seen during the COVID-19 pandemic period.
Additionally, they have also performed a sensitivity analysis on the Group'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 Group has enough liquidity and cash to trade through a further slowdown, as evidenced by deferred income maintaining strong levels of £78.5m for future travel arrangements.
Group management and the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least the following 12 months from the signing of these financial statements. This is supported by the strong performance seen so far in the first half of 2023, which has seen a significant upside in demand. The Group has been well placed to meet and service the additional volume.
The Group is part of a much larger group, with the 52% shareholder being dnata, which is one of the world’s largest air services providers and is owned by The Investment Corporation of Dubai, a Government of Dubai entity. The Group therefore benefits from the guaranteed financial support of its shareholders.  The directors have considered profitability, cash flows and the financial support in detail for a period of over 12 months from the date of these financial statements and believe that it is still appropriate to apply the going concern basis for the foreseeable future. 

 
2.4

Turnover

Turnover, excluding value added tax, represents the value of transactions, being cruise, flights and ancillary products in which the Group is, for these purposes, regarded as being the principal. Turnover also includes the commission receivable by the Group on transactions in which it is regarded as acting as an agent.
Turnover is recognised on a departure date basis. A small portion of turnover, relating to agency bookings, is recognised on a booking date basis, due to the risks and rewards inherent in the booking remaining with the tour operator.
Trade debtors still represent gross amounts receivable and trade creditors still represent gross amounts payable in respect of travel and holiday arrangements.

Page 22

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.5

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Income Statement over its useful economic life.

Other 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.

Page 23

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.6

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold
-
10% straight line
Plant and machinery:
-
- Furniture
-
14% straight line
- Office equipment
-
20% straight line
- Computer equipment and software
-
33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.7

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.8

Debtors

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

 
2.9

Cash and cash equivalents

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

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

Page 24

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.10

Financial instruments

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

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

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Income Statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value.
The resulting gain or loss on derivative forward foreign currency contracts is recognised immediately in the Income Statement, to match the related gain or loss on trade creditors payable in foreign currencies. These contracts are entered into to minimise the Group's exposure to foreign exchange risk between the prices agreed when a customer booking is made and when the supplier is paid.
The Group does not currently apply hedge accounting for foreign exchange derivatives. The total gain or loss on trading derivatives is classified as a current asset or liability respectively.
At 31 March 2023 the Group had contracted to buy £12,849,075 (2022: £3,335,018) of foreign currencies in future months.

Page 25

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.11

Creditors

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

 
2.12

Government grants

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

 
2.13

Foreign currency translation

Functional and presentation currency

The Group's functional and presentational currency is GBP.

Transactions and balances

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

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

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

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

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

 
2.14

Finance costs

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

Page 26

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.15

Operating leases: the Group as lessee

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

 
2.16

Pensions

Defined contribution pension plan

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

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

 
2.17

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

 
2.18

Interest income

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

 
2.19

Provisions for liabilities

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

Page 27

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.20

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

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

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

 
2.21

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.22

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Page 28

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
a) Critical judgments in applying the Group's accounting policies
The directors believe that there are no critical judgments involved in applying the Group's accounting policies that warrant disclosure.
b) Key accounting estimates and assumptions
The directors believe that there are no key accounting estimates and assumptions involved in applying the Group's accounting policies that warrant disclosure.


4.


Turnover

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


2023
2022
£
£

Cruise sales as principal
180,973,548
47,153,855

Cruise sales commission as agent
1,255,251
1,788,096

182,228,799
48,941,951


Analysis of turnover by source market:

2023
2022
£
£

United Kingdom
119,474,398
36,962,820

South Africa
3,113,556
899,595

Australia
59,640,845
11,079,536

182,228,799
48,941,951


Page 29

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

5.


Other operating income

2023
2022
£
£

Foreign exchange gains/(losses)
1,088,914
-

Government grants receivable
-
13,057

Levies and other charges
-
150,955

1,088,914
164,012


Government grants above relate to grants received through the Coronavirus Job Retention Scheme, implemented by the UK Government, as well through the Job Keeper Payment Scheme, implemented by the Australian Government, to assist companies affected by the COVID-19 pandemic with employee wages.


6.


Operating profit/(loss)

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

2023
2022
£
£

Foreign exchange losses
-
1,194,984

Other operating lease rentals
490,341
447,455


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
156,097
81,896

Fees payable to the Company's auditors and their associates in respect of:

Audit-related assurance services
51,500
43,500

Taxation compliance services
8,873
6,362

Travel regulatory services
13,468
3,438

Component auditors
64,485
26,409

All other services
17,771
2,187

Page 30

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

8.


Employees

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
14,162,678
9,808,512
-
-

Social security costs
1,213,033
836,563
-
-

Cost of defined contribution scheme
476,910
324,816
-
-

15,852,621
10,969,891
-
-


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


        2023
        2022
            No.
            No.







Administration
69
57



Marketing
27
20



Sales
221
176

317
253

The Company has no employees other than the director, who did not receive any remuneration (2022 - £NIL)

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
300,001
289,210

Group contributions to defined contribution pension schemes
1,316
1,321

301,317
290,531


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £178,714 (2022 - £169,627).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £NIL).

Included within Directors' emoluments above are non-cash benefits relating to company-provided cars and private medical care paid for on behalf of the directors.

Page 31

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
248,044
190,730

248,044
190,730


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
111,250
(51)

111,250
(51)


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
315,873
-

Adjustments in respect of previous periods
(101,874)
-

213,999
-

Foreign tax


Foreign tax on income for the year
2,065,414
(423,083)

Total current tax
2,279,413
(423,083)

Deferred tax


Origination and reversal of timing differences
(959,657)
(1,009,837)

Total deferred tax
(959,657)
(1,009,837)


Taxation on profit/(loss) on ordinary activities
1,319,756
(1,432,920)
Page 32

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
10,945,792
(11,814,783)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
2,079,700
(2,244,809)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
302,607
(73,822)

Capital allowances for year in excess of depreciation
(74,356)
(45,073)

Utilisation of tax losses
(1,265,873)
-

Adjustments to tax charge in respect of prior periods
(101,874)
-

Movement in deferred tax
(959,657)
(1,009,837)

Losses/(profits) taxed in foreign jurisdictions
1,339,209
459,770

Unrelieved tax losses carried forward
-
1,480,851

Total tax charge for the year
1,319,756
(1,432,920)


Factors that may affect future tax charges

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

Page 33

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Exceptional items

2023
2022
£
£


COVID-19 cancellation costs
-
(44,472)

Discontinued operations and redundancy costs
30,207
50,539

Losses due to Cruise & Maritime Voyages supplier failure
-
35,893

Professional advisory fees
1,728,218
-

1,758,425
41,960

Exceptional costs above for the prior year include the net losses incurred on bookings that were cancelled as a result of the COVID-19 pandemic, where bookings which were expected to depart prior to 31 March 2022 had to be cancelled or postponed due to international travel restrictions. Some of these losses have since been recouped by encouraging customers to rebook cancelled holidays. Additionally, expected cancellation costs had been overaccrued at 31 March 2021, with the final losses being less than originally projected, leading to an overall credit in the year to 31 March 2022. 
Additionally, exceptional costs above include costs relating to departmental restructuring made necessary by the COVID-19 pandemic and subsequent cost of living crisis, with some operations being discontinued and redundancies paid as a result.
Additionally, exceptional costs above for the prior year include losses suffered as a result of the failure of Cruise & Maritime Voyages, one of the Group's suppliers, on 20 July 2020.
Additionally, exceptional costs above include professional advisory services paid for as part of a project undertaken by the Group during the year. 

Page 34

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

14.


Intangible assets

Group and Company





Development expenditure
Domain names
Goodwill
Negative goodwill
Total

£
£
£
£
£



Cost


At 1 April 2022
205,437
80,645
2,873,261
(506,349)
2,652,994


Additions
100,404
-
-
-
100,404


Disposals
(160,005)
-
-
-
(160,005)



At 31 March 2023

145,836
80,645
2,873,261
(506,349)
2,593,393



Amortisation


At 1 April 2022
82,301
27,553
2,490,159
(506,349)
2,093,664


Charge for the year on owned assets
84,383
8,065
383,102
-
475,550


On disposals
(109,778)
-
-
-
(109,778)



At 31 March 2023

56,906
35,618
2,873,261
(506,349)
2,459,436



Net book value



At 31 March 2023
88,930
45,027
-
-
133,957



At 31 March 2022
123,136
53,092
383,102
-
559,330

The negative goodwill brought forward of £506,349 relates to the acquisition of Imagine Cruising Limited in January 2013 and November 2014. Negative goodwill has been written off in equal annual instalments in line with the Group's goodwill policy of five years.
Development costs are being amortised in equal annual instalments over their estimated economic life of five years.
Domain names are being amortised in equal annual instalments over their estimated economic life of ten years. 
Positive goodwill of £2,873,261 relates to the acquisition of Imagine Cruising (WA) Pty Limited (Formerly Holiday Planet (Pty) Limited) on 1 December 2017. Goodwill is being written off in equal annual instalments in line with the Group's goodwill policy of five years. 



Page 35

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

15.


Tangible fixed assets

Group






Short-term leasehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 April 2022
347,574
1,607,259
8,496
1,963,329


Additions
-
710,921
-
710,921


Disposals
-
(819,214)
-
(819,214)


Exchange adjustments
-
(48,216)
(419)
(48,635)



At 31 March 2023

347,574
1,450,750
8,077
1,806,401



Depreciation


At 1 April 2022
205,242
1,102,718
8,494
1,316,454


Charge for the year on owned assets
35,147
386,623
2
421,772


Disposals
-
(813,699)
-
(813,699)


Exchange adjustments
-
(40,644)
(419)
(41,063)



At 31 March 2023

240,389
634,998
8,077
883,464



Net book value



At 31 March 2023
107,185
815,752
-
922,937



At 31 March 2022
142,332
504,541
2
646,875

Page 36

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2022
1,647,037



At 31 March 2023
1,647,037





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Imagine Cruising Limited
2nd Floor, Nucleus House, 2 Lower Mortlake Road, Richmond, TW9 2JA
Travel Agent
Ordinary
100%
Imagine Cruising Proprietary Limited
Oxford House, 17 Park Lane, Grand Central Precinct, Century City, 7441, South Africa
Travel Agent
Ordinary
100%
Imagine Transport Limited
2nd Floor, Nucleus House, 2 Lower Mortlake Road, Richmond, TW9 2JA
Transport Provider
Ordinary
100%
Imagine Cruising (Pty) Limited
321 Link Road, Mascot, NSW 2020, Australia
Travel Agent
Ordinary
100%
Imagine Cruising (WA) Pty Limited
Level 9, 14-16 Victoria Avenue, Perth, WA 6000, Australia
Travel Agent
Ordinary
100%
Imagine Holidays Limited
2nd Floor, Nucleus House, 2 Lower Mortlake Road, Richmond, TW9 2JA
Travel Agent
Ordinary
100%

Page 37

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 March 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

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

Imagine Cruising Limited
(16,087,917)
7,813,110

Imagine Cruising Proprietary Limited
(895,671)
(218,339)

Imagine Transport Limited
2,000
-

Imagine Cruising (Pty) Limited
(2,985,331)
1,057,874

Imagine Cruising (WA) Pty Limited
(2,550,667)
1,343,331

Imagine Holidays Limited
1
-

All of the above listed subsidiary undertakings have been included within these consolidated financial statements. 

Page 38

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

17.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due after more than one year

Other debtors
867,911
8,196,817
-
-

867,911
8,196,817
-
-


Group
Group
2023
2022
£
£

Due within one year

Trade debtors
88,318,527
85,807,734

Amounts owed by group undertakings
-
65,746

Other debtors
8,502,834
2,444,002

Prepayments and accrued income
67,368,059
58,575,350

Deferred taxation
5,400,885
6,530,833

169,590,305
153,423,665


Included within Prepayments and accrued income above are payments made to suppliers relating to bookings departing after the year end, where the Group is acting as principal. The total of these prepaid costs at 31 March 2023 was £66,872,109 (2022: £57,428,478).


18.


Cash and cash equivalents

Group
Group
2023
2022
£
£

Cash at bank and in hand
19,432,172
20,442,990

19,432,172
20,442,990


Page 39

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

19.


Creditors: Amounts falling due within one year

Group

Group
Company

Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
125,232,028
125,223,104
-
-

Amounts owed to group undertakings
111,403
-
902,909
902,909

Corporation tax
112,603
140,667
-
-

Other taxation and social security
3,530,542
1,287,963
-
-

Other creditors
1,690,775
5,530,617
-
-

Accruals and deferred income
82,778,870
83,785,920
-
-

Financial instruments
648,137
66,724
-
-

214,104,358
216,034,995
902,909
902,909


Included within Accruals and deferred income above are receipts from customers relating to bookings departing after the year end, less amounts already recognised during the year in line with the Group's turnover policies, where the Group is acting as principal. The total of these receipts taken in advance at 31 March 2023 was £78,534,227 (2022: £80,493,515).


20.


Deferred taxation


Group



2023


£






At beginning of year
6,530,833


Charged to profit or loss
(898,395)


Movement on revaluation of foreign subsidiaries
(231,553)



At end of year
5,400,885

Page 40

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
20.Deferred taxation (continued)

Group
Group
2023
2022
£
£

Accelerated capital allowances
4,521
121,068

Tax losses carried forward
5,396,364
6,409,765

5,400,885
6,530,833

Deferred tax assets relating to accelerated capital allowances will be reversed as the Group claims capital allowances on the tax value of its tangible fixed assets, being on a reducing balance basis at 18%. Deferred tax assets relating to tax losses carried forward will be reversed in their entirety in following periods against taxable profits.


21.


Provisions


Group



Annual Leave
Cancellation Provision
Total

£
£
£





At 1 April 2022
323,962
517,616
841,578


Charged to profit or loss
(36,784)
(517,616)
(554,400)


Charged to other comprehensive income
(14,296)
-
(14,296)



At 31 March 2023
272,882
-
272,882

The final costs of unutilised staff annual leave are inherently uncertain in their timing due to the fact that they are dependant upon when staff choose to take holiday and how long they do so for, hence the Group makes a provision for unutilised staff annual leave at year-end. 
The Group has provided for the loss of margin as a result of cancellations in the post fiancial reporting period along with a further provision for expected future cancellations.

Page 41

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



575 (2022 - 561) A Ordinary shares of £1.00 each
575
561
525 (2022 - 539) B Ordinary shares of £1.00 each
525
539

1,100

1,100

The A and B Ordinary shares of £1 each carry full voting rights, full dividend rights and full rights to participation in any capital distribution on winding up.
On 9 September 2022, 14 B Ordinary shares of £1 each were re-designated as A Ordinary shares of £1 each. 
Subsequent to the year-end, on 25 May 2023, 12 B Ordinary shares of £1 each were re-designated as A Ordinary shares of £1 each. Additionally, on 17 August 2023, a further 308 B Ordinary shares of £1 each were re-designated as A Ordinary shares of £1 each. 



23.


Reserves

Foreign exchange reserve

The foreign exchange reserve represents differences arising upon the revaluation of foreign subsidiaries stated in local currencies. The income, expenditure, assets and liabilities of the subsidiaries are revalued to match the presentation currency of the Group for reporting purposes, to show the entirety of the Group's results in Pounds Sterling (GBP). See accounting policy 2.13 for details of how the individual balances within the foreign subsidiaries are translated.

Profit and loss account

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


24.


Contingent liabilities

The Group is a member of the Association of British Travel Agents (ABTA). The Group provides ABTA with a travel bond which at 31 March 2023 amounted to £4,172,327.


25.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £476,910 (2022 - £324,816). Contributions totalling £30,946 (2022 - £Nil) were payable to the fund at the reporting date and are included in creditors.

Page 42

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

26.


Commitments under operating leases

At 31 March 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
486,166
520,264

Later than 1 year and not later than 5 years
1,214,159
1,396,560

Later than 5 years
72,284
325,783

1,772,609
2,242,607

27.


Transactions with directors

During the year, the Group had a loan account bearing interest at a rate of 5% per annum with one of the directors, R J Deller. Advances totalled £190,419 (2022: £105,420) and credits totalled £453,195 (2022: £Nil). This loan has no fixed repayment date and so the closing balance owing to the Group at the year end from R J Deller, included within other debtors due within one year, was £3,590,191 (2022: £3,852,967). Following the year-end, on 16 August 2023, the loan was repaid in full.

Page 43

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

28.


Related party transactions

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 Imagine Enterprises Group. This is because the Group prepares consolidated financial statements in which these transactions are eliminated in full.


2023
2022
£
£

dnata
A company which owns 52% of the equity interests in the immediate holding company, Imagine Enterprises Limited, and is based in the Emirate of Dubai, UAE.
Recharge of costs paid on behalf of the related party
170,620
-
Amount due from/(to) the related party
(111,403)
65,746
Destination Asia Limited
A company owned by dnata, the 52% owner of the Group.
Purchases of holiday accommodation and services from the related party
268,372
262,542
Amount due from/(to) the related party
(1,593,401)
(1,418,177)
Gold Medal Travel Group Limited
A company owned by dnata, the 52% owner of the Group.
Purchases of holiday accommodation and services from the related party
19,503,461
2,571,001
Amount due from/(to) the related party
(9,101,946)
(1,062,320)
Travel 2 Limited
A company owned by dnata, the 52% owner of the Group.
Purchases of holiday accommodation and services from the related party
5,704,223
4,208,270
Amount due from/(to) the related party
(9,833,467)
(15,132,289)
Yalago Limited
A company owned by dnata, the 52% owner of the Group.
Purchases of holiday accommodation and services from the related party
5,804,084
4,333,031
Amount due from/(to) the related party
(7,005,835)
(4,354,043)
Gulf Ventures Limited
A company owned by dnata, the 52% owner of the Group.
Purchases of holiday accommodation and services from the related party
40,353
-
Amount due from/(to) the related party
84,426
-
124,779
-

Page 44

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

29.


Post balance sheet events

During 2023, the Group will continue to operate as outlined in the principal activity note. Business continues to grow following the COVID-19 pandemic, with demand for holidays having recovered to pre-pandemic levels and the Group has positioned itself to be able to capitalise on the significant pent-up demand from consumers for cruise holidays. 
There have been no significant events affecting the Group since the year end, except for the continued effects of the cost of living crisis, which has had a significant impact upon the national economy, as described in note 2.3.


30.


Controlling party

In the opinion of the directors, there is no ultimate controlling party. 


31.


Holding company

dnata, a company incorporated and domiciled in the Emirate of Dubai, UAE whose registered office address is situated at dnata Travel Centre, Sheikh Zayed Road, PO Box 1515, Dubai, UAE, owned 52% of the issued share capital of Imagine Enterprises Limited at year-end. Copies of the financial statements of dnata can be obtained from The Emirates Group website at www.theemiratesgroup.com/annualreport.

Page 45

 
IMAGINE ENTERPRISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

32.


Foreign currency translation

During the period, the Group recognised the following foreign exchange differences within the Consolidated Income Statement, included within other income:


2023
2022
£
£



Arising from operating activities
1,670,327
(1,332,204)

Fair value movements in derivatives
(581,413)
137,220

Total foreign exchange gains/(losses)
1,088,914
(1,194,984)

During the period, the Group also recognised the following foreign exchange differences in the Consolidated Statement of Other Comprehensive Income:

2023
2022
£
£



Movement in foreign exchange reserve on translation of foreign subsidiaries
(16,795)
(58,404)

Revaluation of foreign subsidiary reserves on translation to Sterling
567,697
(253,959)

550,902
(312,363)

 
Page 46