Company registration number 09276335 (England and Wales)
TRAVCO GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
TRAVCO GROUP LIMITED
COMPANY INFORMATION
Directors
M S Allan
R D Allan
J R Feilder
Company number
09276335
Registered office
Travco House
92-94 Paul Street
London
EC2A 4UX
Auditors
Charterhouse (Audit) Limited
166 College Road
Harrow
Middlesex
HA1 1RA
Business address
Travco House
92-94 Paul Street
London
EC2A 4UX
TRAVCO GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 31
TRAVCO GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -

The directors present the strategic report for the year ended 28 February 2023.

Review of the business

The results for the year were impacted by Covid-19 pandemic and the financial position at the year end were considered satisfactory by the directors due to the measures taken to ensure the going concern.

 

S.172 statement

The information provided below is intended to explain how the directors considered the group's key stakeholders and the broader matters set out in s.172 of the Companies Act 2006 when performing their duties to promote the success of the group.

 

Group culture

The group culture focuses on the importance of strong financial and operational risk management controls, ensuring it complies with all applicable laws, regulations and ethical principals, locally, nationally and internationally.

 

The directors regularly assess/​monitor the fulfilment of this culture at an operational level by requesting, receiving and analysing reports at various business levels, ensuring improvements can be made where necessary.

 

By protecting the reputation and economic viability of the company, the directors believe that enhancing this culture is for the long-term benefit of the company and interests of its stakeholders.

 

Long term strategy

The group's long term strategy is to grow revenues by adding new markets and increase profits through improving margins and optimising operational cost. This is to be achieved by providing high levels of service to customers whilst managing financial, operational, regulatory and legal risks and increasing efficiency at all levels.

 

To achieve these objectives, the directors consider it is essential to maintain adequate financial resources, through both internal operational mechanisms and access to external funding, to maintain stakeholder confidence at all times, to invest in information technology, to conduct a policy to promote exemplary customer services, to ensure staff are professionally trained and to ensure the group adheres to statutory regulations relating to information security.

 

Stakeholder relationships

The group's stakeholders are business customers (travel agents, OTA’s, intermediaries), suppliers, staff and shareholders, the relationship with and interest of, are upper most in the directors' minds when making decisions to promote the group. The strategic goals and conduits to achieve them, as listed above, are specifically crafted by the directors to benefit stakeholders and foster better relationships with them.

 

Community and environment

The group does whatever it can within its resources to promote better community relations and foster good environmental credentials.

Principal risks and uncertainties

The management of the business and the execution of the group's strategies are subject to risks, the key risks being competition in the market place, operational risk and liquidity risk.

 

There continues to be uncertainties around the Covid-19 pandemic and the long term effects on the economy. The group reacts to the rapid changing environment to help manage the risk.

TRAVCO GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
Risk management

 

Financial risk management

 

The group's principal financial instruments comprise bank balances, trade creditors, trade debtors and balances due from group and associated companies as well as individuals. The main purpose of these instruments is to raise funds for the group's operations and to finance the company's trading activities.

 

The group's approach to managing other risks applicable to the financial instruments concerned is shown below.

 

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding. Balances are also held in foreign currencies in order for the group to trade with its suppliers and its customers.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

 

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

 

In respect of balances due from group and associated companies, the directors are aware of the individual companies' finance requirements and had determined that these will only be repaid, in whole or in part, when sufficient funds are available.

 

Cyber security risk management

 

Travco utilises many of the most recommended companies to support cyber security and the group has implemented Crowd Strike virus protection across its network which protects the group from malicious software viruses and phishing via a technical attack. The group has IPS (intrusion prevention system) running on its main firewalls to protect itsnetwork from malicious attacks.

 

The group utilises Mimecast for email protection that filters out and tries to catch phishing emails that are aimed at obtaining customer/​supplier and/​or staff information for extortion. Further to this nearly all Travco systems/​infrastructure can only be accessed from a computer within the domain, or accessed via a secure VPN connection for which the group uses SonicWall VPN solutions that require secure authenticated log-ins.

 

Key performance indicators

The group's key financial performance indicators during the year are as follows:

 

2023

2022

 

£

£

Turnover

103,102,889

25,045,529

Gross profit

11,774,247

2,522,605

Earnings before interest, tax, depreciation, amortisation,

 

 

and bad debts (EBITDAB)

3,672,056

(1,904,943)

 

Other performance indicators

The directors also consider the following non-financial KPI of the business in relation to the year ended 28 February 2023.

 

 

The total room nights booked have increased from 238,046 nights in the year ended 28 February 2022 to 900,255 nights in the current year to 28 February 2023. This is an increase of 280% in comparison to the previous financial year.

 

 

TRAVCO GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
Impact of Covid-19

The coronavirus pandemic which developed in 2020 had a significant impact on the global travel sector as many countries imposed travel restrictions on their citizens. As a result the group saw almost total collapse in demand for its services and an associated significant adverse impact on both cancellations and forward bookings has resulted in devastating effects on Travco's sales in year ended 28 February 2021. The group has seen recovery in the year to 28 February 2023 and almost 60% of the business is recovered in the latter half of the year. The group is collaborating with its hotels and travel partners (customers) to optimise margins and volumes, to sustain and improve its market share. The directors anticipate a sales recovery in 2023/​2024 to be 70% of 2020 levels, with anticipated EBITDAB of approximately £6.5m.

The second half of 2022/​2023 has seen significant improvement in turnover and cashflow. The group has managed to repay £500k of its CLBILS government-backed loan which was taken during coronavirus pandemic. The directors have considered the funding and liquidity position of the group to be appropriate to prepare the financial statements on the going concern basis.

On behalf of the board

J R Feilder
Director
28 November 2023
TRAVCO GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 4 -

The directors present their annual report and financial statements for the year ended 28 February 2023.

Principal activities

The principal activities of the company continued to be those of being a holding company and property investment.

 

The principal activities of the subsidiaries continued to be that of a global wholesaler of hotel accommodation for resale purposes.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M S Allan
R D Allan
J R Feilder
Future developments

The directors have focused on technological advancements via its in-house reservation system by developing functionalities to support the product growth along with flexibility to meet technological requirements of clients.

Energy and carbon report

The group's only significant area of energy consumption and energy use is from the UK office.

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
197,806
205,912
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
0.21
0.31
0.21
0.31
Scope 2 - indirect emissions
- Electricity purchased
41.76
43.03
Scope 3 - other indirect emissions
Total gross emissions
41.97
43.34
Intensity ratio
Tonnes CO2e per employee
0.78
0.52
TRAVCO GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 5 -
Quantification and reporting methodology

Energy consumption at the group's offices is based on meter readings provided by the energy supplier.

 

Emissions were calculated based on Government conversion factors 2023 for company reporting of greenhouse gas emissions.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per UK employee.

Measures taken to improve energy efficiency

The group's only significant area of energy consumption and energy use is from the UK office within which we have installed low wattage lamps which are turned off when staff are not present.   Allowing Travco staff to work from home is now much more acceptable and prevalent so reducing the staff carbon footprint for commuting.  Travco also encourages staff to participate in the UK Goverments Cycle to work scheme.”

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 applicable law and UK Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK (FRS 102).

 

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditors of the company are unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditors of the company are aware of that information.

On behalf of the board
J R Feilder
Director
28 November 2023
TRAVCO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRAVCO GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of Travco Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Going concern

The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the group or to cease its operations, and as they have concluded that the company's financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements ("the going concern period").

 

We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for the going concern period.

 

In our evaluation of the directors' conclusions, we considered the inherent risks to the group's business model and analysed how those risks might affect the group's financial resources or ability to continue operations over the going concern period.

 

We have nothing to report in these respects.

 

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 auditor's 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.

TRAVCO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRAVCO GROUP LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 their environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

TRAVCO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRAVCO GROUP LIMITED
- 8 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by;

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. Auditing standards also limit the audit procedures required to identifying non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 an auditor's 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.

....................................................................................................
28 November 2023
Cemal Soydaner (Senior Statutory Auditor)
For and on behalf of Charterhouse (Audit) Limited
Statutory Auditor
Charterhouse (Audit) Limited
166 College Road
Harrow
Middlesex
HA1 1RA
TRAVCO GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
103,102,889
25,045,529
Cost of sales
(91,328,642)
(22,522,924)
Gross profit
11,774,247
2,522,605
Administrative expenses
(12,709,346)
(9,199,775)
Other operating income
851,709
878,954
Operating loss
4
(83,390)
(5,798,216)
Interest receivable and similar income
8
36,600
2,347
Interest payable and similar expenses
9
(212,665)
(126,151)
Loss before taxation
(259,455)
(5,922,020)
Tax on loss
10
(546,894)
(549)
Loss for the financial year
(806,349)
(5,922,569)
Other comprehensive income
Revaluation of tangible fixed assets
101,600
-
0
Deferred taxation on revaluation of tangible fixed assets
180,960
(349,688)
Total comprehensive income for the year
(523,789)
(6,272,257)
Earnings before interest, tax, depreciation, amortisation and bad debts (EBITDAB)
3,672,056
(1,904,943)
Total comprehensive income for the year is all attributable to the owners of the parent company.

The statement of total comprehensive income has been prepared on the basis that all operations are continuing operations.

TRAVCO GROUP LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
25,015,664
28,589,331
Tangible assets
12
6,445,123
6,418,655
31,460,787
35,007,986
Current assets
Debtors
15
8,642,673
3,411,411
Cash at bank and in hand
10,051,696
2,276,480
18,694,369
5,687,891
Creditors: amounts falling due within one year
16
(20,629,031)
(10,150,877)
Net current liabilities
(1,934,662)
(4,462,986)
Total assets less current liabilities
29,526,125
30,545,000
Creditors: amounts falling due after more than one year
17
(4,279,013)
(4,593,139)
Provisions for liabilities
Deferred tax liability
19
1,276,073
1,457,033
(1,276,073)
(1,457,033)
Net assets
23,971,039
24,494,828
Capital and reserves
Called up share capital
21
13,721,861
13,721,861
Revaluation reserve
5,144,366
4,878,979
Capital redemption reserve
440,000
440,000
Profit and loss reserves
4,664,812
5,453,988
Total equity
23,971,039
24,494,828
The financial statements were approved by the board of directors and authorised for issue on 28 November 2023 and are signed on its behalf by:
28 November 2023
J R Feilder
Director
Company registration number 09276335 (England and Wales)
TRAVCO GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
6,776,160
6,773,400
Investments
13
36,261,353
36,261,353
43,037,513
43,034,753
Current assets
Cash at bank and in hand
4,805
4,916
Creditors: amounts falling due within one year
16
(420,761)
(373,840)
Net current liabilities
(415,956)
(368,924)
Total assets less current liabilities
42,621,557
42,665,829
Creditors: amounts falling due after more than one year
17
(25,340,749)
(25,432,657)
Provisions for liabilities
Deferred tax liability
19
1,276,073
1,457,033
(1,276,073)
(1,457,033)
Net assets
16,004,735
15,776,139
Capital and reserves
Called up share capital
21
13,721,861
13,721,861
Revaluation reserve
2,109,795
1,844,408
Profit and loss reserves
173,079
209,870
Total equity
16,004,735
15,776,139

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £53,964 (2022 - £38,546 ).

The financial statements were approved by the board of directors and authorised for issue on 28 November 2023 and are signed on its behalf by:
28 November 2023
J R Feilder
Director
Company registration number 09276335 (England and Wales)
TRAVCO GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 March 2021
13,835,653
5,228,667
440,000
11,376,557
30,880,877
Year ended 28 February 2022:
Loss for the year
-
-
-
(5,922,569)
(5,922,569)
Other comprehensive income:
Tax relating to other comprehensive income
-
(349,688)
-
-
0
(349,688)
Total comprehensive income
-
(349,688)
-
(5,922,569)
(6,272,257)
Redemption of shares
21
(113,792)
-
-
-
(113,792)
Balance at 28 February 2022
13,721,861
4,878,979
440,000
5,453,988
24,494,828
Year ended 28 February 2023:
Loss for the year
-
-
-
(806,349)
(806,349)
Other comprehensive income:
Revaluation of tangible fixed assets
-
101,600
-
-
101,600
Tax relating to other comprehensive income
-
180,960
-
-
0
180,960
Total comprehensive income
-
282,560
-
(806,349)
(523,789)
Transfer of excess depreciation to profit and loss reserves
-
(17,173)
-
17,173
-
Balance at 28 February 2023
13,721,861
5,144,366
440,000
4,664,812
23,971,039
TRAVCO GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2021
13,835,653
2,194,096
171,324
16,201,073
Year ended 28 February 2022:
Profit for the year
-
-
38,546
38,546
Other comprehensive income:
Tax relating to other comprehensive income
-
(349,688)
-
0
(349,688)
Total comprehensive income
-
(349,688)
38,546
(311,142)
Redemption of shares
21
(113,792)
-
-
(113,792)
Balance at 28 February 2022
13,721,861
1,844,408
209,870
15,776,139
Year ended 28 February 2023:
Profit for the year
-
-
(53,964)
(53,964)
Other comprehensive income:
Revaluation of tangible fixed assets
-
101,600
-
101,600
Tax relating to other comprehensive income
-
180,960
-
0
180,960
Total comprehensive income
-
282,560
(53,964)
228,596
Transfer of excess depreciation to profit and loss reserves
-
(17,173)
17,173
-
Balance at 28 February 2023
13,721,861
2,109,795
173,079
16,004,735
TRAVCO GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
7,621,156
(989,589)
Interest paid
(212,665)
(126,151)
Income taxes paid
(61,170)
(27,241)
Net cash inflow/(outflow) from operating activities
7,347,321
(1,142,981)
Investing activities
Purchase of tangible fixed assets
(58,153)
(14,872)
Interest received
36,600
2,347
Net cash used in investing activities
(21,553)
(12,525)
Financing activities
Redemption of shares
-
0
(113,792)
(Repayment of) / increase in bank loans
(814,126)
180,428
Net cash (used in)/generated from financing activities
(814,126)
66,636
Net increase/(decrease) in cash and cash equivalents
6,511,642
(1,088,870)
Cash and cash equivalents at beginning of year
1,840,268
2,929,138
Cash and cash equivalents at end of year
8,351,910
1,840,268
Relating to:
Cash at bank and in hand
10,051,696
2,276,480
Bank overdrafts included in creditors payable within one year
(1,699,786)
(436,212)
TRAVCO GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
504,375
(424,213)
Interest paid
(190,360)
(102,685)
Income taxes paid
-
0
(26,558)
Net cash inflow/(outflow) from operating activities
314,015
(553,456)
Investing activities
Interest received
-
0
255
Net cash (used in)/generated from investing activities
-
255
Financing activities
Redemption of shares
-
0
(113,792)
Repayment of bank loans
(314,126)
(319,572)
Net cash used in financing activities
(314,126)
(433,364)
Net decrease in cash and cash equivalents
(111)
(986,565)
Cash and cash equivalents at beginning of year
4,916
991,481
Cash and cash equivalents at end of year
4,805
4,916
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 16 -
1
Accounting policies
Company information

Travco Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office and business address is Travco House, 92-94 Paul Street, London, EC2A 4UX.

 

The group consists of Travco Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Travco Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 28 February 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover, which arises globally from the group's principal activities, is the amount derived from the provision of services falling within the group's ordinary activities after deduction of trade discounts and value added tax.

 

Turnover derived from hotel bookings is recognised at the point at which the reservation commences, i.e. upon arrival.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 15 years. This is based on the continuity of the business and future expectations.

1.6
Tangible fixed assets

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 17 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
over 50 years
Leasehold improvements
20% on cost
Plant and equipment
33% on cost
Fixtures and fittings
20% on cost
Computers
33% on cost

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the recoverable amount. The impairment loss is recognised in profit or loss.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

1.11
Equity instruments

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

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

1.13
Retirement benefits

The group operates a defined contribution plan. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate fund. Under defined contribution plans, the group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current period.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 19 -
1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.16

Preference shares

The Redeemable Preference shares are classified as equity in accordance with Section 22 (liabilities and equity) as they are redeemable at the option of the issuer and do not carry a right to a return.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Establishing useful economic lifes for amortisation purposes of intangible fixed assets

Intangible fixed assets consist of goodwill. The annual amortisation charge depends on the estimated useful economic life of the asset. The directors regularly review the remaining useful life of the asset. Changes in asset useful economic life can have a significant impact on amortisation charge for the period. Detail of the useful economic life is included in accounting policies.

Establishing useful economic lives for depreciation purposes of tangible fixed asset

Tangible fixed assets, consisting primarily of plant and machinery, fixtures and fittings and freehold land and buildings. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimated residual values. The directors regularly review these asset useful lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Detail of the useful economic lives is included in the accounting policies.

Provision for doubtful debts

The group makes an estimate of the recoverable value of the trade and other debtors. The group uses estimates based on historical experience determining the level of debts, which the group believes, will not be collected. These estimates include such factors as the current credit rating of the debtor, the aging profile of the debtors and historical experience. Any significant reduction in the level of customers that default on payments or other significant improvements that resulted in a reduction in the level of bad debt provision would have a positive impact on the operating results. The level of provision required is reviewed on an on-going basis and is disclosed in note 15.

TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 20 -
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Wholesale of hotel accommodation
103,102,889
25,045,529
2023
2022
£
£
Other revenue
Interest income
36,600
2,347
Grants received
-
550,914

In the opinion of the directors it would be seriously prejudicial to the interests of the group to disclose the geographical market breakdown of turnover in these financial statements.

4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
111,873
(12,446)
Government grants
-
(550,914)
Depreciation of owned tangible fixed assets
133,285
177,323
Amortisation of intangible assets
3,573,667
3,573,667
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
154
165
3
3
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
5
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,288,962
3,204,550
-
0
-
0
Social security costs
660,775
320,085
-
-
Pension costs
268,713
220,375
-
0
-
0
6,218,450
3,745,010
-
0
-
0
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditors:
£
£
For audit services
Audit of the financial statements of the company
6,825
6,500
Audit of the financial statements of the company's subsidiaries
31,725
35,500
38,550
42,000
For other services
All other non-audit services
7,875
25,904
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
360,000
-
Company pension contributions to defined contribution schemes
36,000
-
396,000
-
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
120,000
-
Company pension contributions to defined contribution schemes
12,000
-

Directors are also considered to be the only key management personnel.

TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 22 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
30,195
441
Other interest income
6,405
1,906
Total income
36,600
2,347
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
30,195
441
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
212,368
125,932
Other finance costs:
Other interest
297
219
Total finance costs
212,665
126,151
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
546,681
-
0
Foreign current tax on profits for the current period
213
549
Total current tax
546,894
549
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
10
Taxation
(Continued)
- 23 -

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(259,455)
(5,922,020)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(49,296)
(1,125,184)
Tax effect of expenses that are not deductible in determining taxable profit
540
11
Gains not taxable
(9,499)
-
0
Depreciation
25,365
33,692
Amortisation
678,997
678,997
Capital allowances
(42,126)
(37,549)
Losses carried back
-
477,001
Losses brought forward
(56,901)
-
Other adjustments
(186)
(26,419)
Taxation charge
546,894
549

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
(180,960)
349,688
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 24 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 March 2022 and 28 February 2023
53,605,000
Amortisation and impairment
At 1 March 2022
25,015,669
Amortisation charged for the year
3,573,667
At 28 February 2023
28,589,336
Carrying amount
At 28 February 2023
25,015,664
At 28 February 2022
28,589,331
The company had no intangible fixed assets at 28 February 2023 or 28 February 2022.
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost or valuation
At 1 March 2022
7,500,000
13,066
1,612,352
533,987
8,857
9,668,262
Additions
-
0
-
0
57,390
763
-
0
58,153
Revaluation
(660,000)
-
0
-
0
-
0
-
0
(660,000)
At 28 February 2023
6,840,000
13,066
1,669,742
534,750
8,857
9,066,415
Depreciation and impairment
At 1 March 2022
1,116,267
6,516
1,609,214
509,457
8,153
3,249,607
Depreciation charged in the year
98,840
1,039
19,931
13,035
440
133,285
Revaluation
(761,600)
-
0
-
0
-
0
-
0
(761,600)
At 28 February 2023
453,507
7,555
1,629,145
522,492
8,593
2,621,292
Carrying amount
At 28 February 2023
6,386,493
5,511
40,597
12,258
264
6,445,123
At 28 February 2022
6,383,733
6,550
3,138
24,530
704
6,418,655
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
12
Tangible fixed assets
(Continued)
- 25 -
Company
Freehold land and buildings
£
Cost or valuation
At 1 March 2022
7,500,000
Revaluation
(660,000)
At 28 February 2023
6,840,000
Depreciation and impairment
At 1 March 2022
726,600
Depreciation charged in the year
98,840
Revaluation
(761,600)
At 28 February 2023
63,840
Carrying amount
At 28 February 2023
6,776,160
At 28 February 2022
6,773,400

In the opinion of the directors, there is no material difference between the carrying value of the freehold land and buildings in the accounts and the open market value as at the balance sheet date.

 

If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2023
2022
£
£
Group
Cost
992,796
992,796
Accumulated depreciation
(256,259)
(245,035)
Carrying value
736,537
747,761
Company
Cost
992,796
992,796
Accumulated depreciation
(256,259)
(245,035)
Carrying value
736,537
747,761
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
36,261,353
36,261,353
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
13
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2022 and 28 February 2023
36,261,353
Carrying amount
At 28 February 2023
36,261,353
At 28 February 2022
36,261,353
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 27 -
14
Subsidiaries

Details of the company's subsidiaries at 28 February 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Travco Corporation Limited
1
Wholesale tour operator
Ordinary
100.00
-
Travco International Limited
1
Non trading
Ordinary
0
100.00
Travco Canada Travel Limited
2
Wholesale tour operator
Ordinary
0
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Travco House, 92-94 Paul Street, London, EC2A 4UX
2
Suite 2300, 925 West Georgia Street Vancouver BC V6C 3L2, Canada

Audit exemption of subsidiaries

 

For the financial year ended 28 February 2023, Travco International Limited claimed exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.

15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,374,400
3,147,163
-
0
-
0
Other debtors
837,603
61,182
-
0
-
0
Prepayments and accrued income
430,670
203,066
-
0
-
0
8,642,673
3,411,411
-
-

The fair value of trade and other receivables approximate to their carrying amounts. Trade debtors are stated after provisions for doubtful debts of £150,000 (2022: £200,000).

16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
2,037,075
1,273,501
337,289
337,289
Trade creditors
15,660,528
8,021,525
-
0
-
0
Corporation tax payable
510,621
24,897
10,526
-
0
Other taxation and social security
40,263
2,373
-
-
Other creditors
1,782,375
711,627
-
0
-
0
Accruals and deferred income
598,169
116,954
72,946
36,551
20,629,031
10,150,877
420,761
373,840
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 28 -
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
4,279,013
4,593,139
4,279,013
4,593,139
Amounts owed to group undertakings
-
0
-
0
21,061,736
20,839,518
4,279,013
4,593,139
25,340,749
25,432,657
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
4,616,302
5,430,428
4,616,302
4,930,428
Bank overdrafts
1,699,786
436,212
-
0
-
0
6,316,088
5,866,640
4,616,302
4,930,428
Payable within one year
2,037,075
1,273,501
337,289
337,289
Payable after one year
4,279,013
4,593,139
4,279,013
4,593,139

The bank loans are secured by a legal charge on the freehold property owned by the company. Interest is charged on the bank loan at a commercial rate. The bank loans were initially repayable in June and August 2023 but since then have been amalgamated and is fully repayable by June 2026.

19
Deferred taxation

The following is the analysis of the deferred tax balances for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Freehold land and buildings revaluations
1,276,073
1,457,033
Liabilities
Liabilities
2023
2022
Company
£
£
Freehold land and buildings revaluations
1,276,073
1,457,033
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
19
Deferred taxation
(Continued)
- 29 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 March 2022
1,457,033
1,457,033
Credit to other comprehensive income
(180,960)
(180,960)
Liability at 28 February 2023
1,276,073
1,276,073
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
268,713
220,375

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,020
4,020
4,020
4,020
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Redeemable Preference shares of £1 each
13,717,841
13,717,841
13,717,841
13,717,841
Preference shares classified as equity
13,717,841
13,717,841
Total equity share capital
13,721,861
13,721,861

The company has one class of ordinary shares which carry no right to fixed income.

 

The redeemable preference shares do not carry voting rights.

TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 30 -
22
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
173,418
238,450
-
-
173,418
238,450
-
-
23
Financial commitments, guarantees and contingent liabilities

There is a debenture secured by way of a fixed and floating charge against the assets of the group. There are cross guarantees between the group companies in respect this debenture.

24
Related party transactions

Group
Included in other debtors, is a balance of £822,548 (2022: £Nil) due from the directors. The maximum balance outstanding during the year was £822,548 (2022: £95,281) and during the year interest of £6,534 (2022: £1,977) was charged on this balance at HMRC's official rate.

25
Controlling party

The company is controlled by the directors with no single party having an overall control.

The group is controlled by the directors with no single party having an overall control.

26
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Loss for the year after tax
(806,349)
(5,922,569)
Adjustments for:
Taxation charged
546,894
549
Finance costs
212,665
126,151
Investment income
(36,600)
(2,347)
Amortisation and impairment of intangible assets
3,573,667
3,573,667
Depreciation and impairment of tangible fixed assets
133,504
177,323
Movements in working capital:
Increase in debtors
(5,231,262)
(1,617,805)
Increase in creditors
9,228,856
2,675,442
Cash generated from/(absorbed by) operations
7,621,375
(989,589)
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 31 -
27
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
(Loss)/profit for the year after tax
(53,964)
38,546
Adjustments for:
Taxation charged
10,526
-
0
Finance costs
190,360
102,685
Investment income
-
0
(255)
Depreciation and impairment of tangible fixed assets
98,840
105,000
Movements in working capital:
Increase/(decrease) in creditors
258,613
(670,189)
Cash generated from/(absorbed by) operations
504,375
(424,213)
28
Analysis of changes in net funds/(debt) - group
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
2,276,480
7,775,216
10,051,696
Bank overdrafts
(436,212)
(1,263,574)
(1,699,786)
1,840,268
6,511,642
8,351,910
Borrowings excluding overdrafts
(5,430,428)
814,126
(4,616,302)
(3,590,160)
7,325,768
3,735,608
29
Analysis of changes in net debt - company
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
4,916
(111)
4,805
Borrowings excluding overdrafts
(4,930,428)
314,126
(4,616,302)
(4,925,512)
314,015
(4,611,497)
2023-02-282022-03-01falseCCH SoftwareCCH Accounts Production 2023.300M S AllanR D AllanJ R 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