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COMPANY REGISTRATION NUMBER: 1760294
Skytrail Limited
Financial Statements
30 September 2023
Skytrail Limited
Financial Statements
Year ended 30 September 2023
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
4
Independent auditor's report to the members
5
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14
Skytrail Limited
Strategic Report
Year ended 30 September 2023
The directors present their strategic report with the company's financial statements for the year ended 30 September 2023. Review of the business The directors measure the financial performance of the business by assessing actual monthly performance against budget as well as reviewing forward costs and revenues. At the start of the financial year the company operated one principal activity: SKYTRAIL an aircraft seat capacity broker. A renewed contract with a major supplier has seen a sharp rise in the financial performance of the business. Principal risks and uncertainties The uncertainty over aviation policy post Brexit has been widely reported. However the directors consider this risk to be minimal given the important role aviation transport plays throughout the world. COVID-19 has had an impact on the business due to the travel restrictions imposed by the government. The directors consider this risk to be minimal. The war in Ukraine is an ongoing uncertainty.
This report was approved by the board of directors on 29 February 2024 and signed on behalf of the board by:
Mr N Conley
Director
Registered office:
Third Floor
West Point
Springfield Road
Horsham
West Sussex
RH12 2PD
Skytrail Limited
Directors' Report
Year ended 30 September 2023
The directors present their report and the financial statements of the company for the year ended 30 September 2023 .
Directors
The directors who served the company during the year were as follows:
Mr N Conley
Mr C Williams
Dividends
The directors do not recommend the payment of a dividend.
Future developments
SKYTRAIL continues to expand contracting new customers from both the UK and continental Europe. Germany, France, Italy and Netherlands, all offer an exciting opportunity for expansion which the directors plan to fully explore. The accounts have been prepared on a going concern basis and the directors consider this to be appropriate having considered the financial forecasts and business review for a period covering over twelve months from the date of these financial statements.
Financial instruments
The company's principal financial instruments are all basic and comprise cash balances, trade and other debtors, trade and other creditors. The purpose of these financial instruments is to provide finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks:
Liquidity risk
The company operates a working capital facility which provides short term flexibilty to meet fluctuation in the amount and timing of future cashflows.
Credit risk
The principal credit risk arises from trade debtors. The company operates a very strict credit policy and receives all payments well in advance of the reciprocal supplier settlement. The nature of the business provides the company with ample liquidity.
Currency risk
The company seeks to minimise its exposure to currency risk by operating foreign currency bank accounts for transactions in the relevant currencies.
Research and development
The company continues to develop bespoke software applications which will both simplify and enhance reporting Airline suppliers for Skytrail customers.
Disclosure of information in the strategic report
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 the company has set out the business review and the principal risks and uncertainties in the strategic report on page 1 of these accounts.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 29 February 2024 and signed on behalf of the board by:
Mr N Conley
Director
Registered office:
Third Floor
West Point
Springfield Road
Horsham
West Sussex
RH12 2PD
Skytrail Limited
Directors' Responsibilities Statement
Year ended 30 September 2023
The directors are responsible for preparing the strategic report, directors' 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Skytrail Limited
Independent Auditor's Report to the Members of Skytrail Limited
Year ended 30 September 2023
Opinion
We have audited the financial statements of Skytrail Limited (the 'company') for the year ended 30 September 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 company's affairs as at 30 September 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the 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 company and its 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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of 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, 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 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 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. 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: The extent to which the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material mistatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operation of the company, including the Companies Act 2006, taxation legislation, data protection, employment, environmental and health and safety legislation; - we assessed the extent of non-compliance with the laws and regulations indentified above through making enquiries of management and inspecting legal correspondence We assess the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and - understanding the design of the company's remuneration policies. To address the risk of fraud through management bias and override of controls, we: - performed analytical review procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing the financial disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual or potential litigation and claims;and - reviewing correspondence with HMRC and the company's legal advsiors. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidanc e-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - 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 override of internal control. - 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 the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company'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 company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Sonia Yeshin
(Senior Statutory Auditor)
For and on behalf of
Leaman Mattei
Chartered accountants & statutory auditor
Suite 1, First floor
1 Duchess Street
London
W1W 6AN
29 February 2024
Skytrail Limited
Statement of Comprehensive Income
Year ended 30 September 2023
2023
2022
Note
£
£
Turnover
4
41,070,903
31,750,716
Cost of sales
38,831,216
30,046,463
-------------
-------------
Gross profit
2,239,687
1,704,253
Administrative expenses
1,529,234
1,219,896
------------
------------
Operating profit
5
710,453
484,357
Other interest receivable and similar income
9
4,243
158
Interest payable and similar expenses
10
459
------------
------------
Profit before taxation
714,237
484,515
Tax on profit
11
164,554
89,763
---------
---------
Profit for the financial year and total comprehensive income
549,683
394,752
---------
---------
All the activities of the company are from continuing operations.
Skytrail Limited
Statement of Financial Position
30 September 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
12
24,749
30,889
Investments
13
100
100
--------
--------
24,849
30,989
Current assets
Debtors
14
20,088,622
6,951,731
Cash at bank and in hand
7,579,748
6,154,045
-------------
-------------
27,668,370
13,105,776
Creditors: amounts falling due within one year
15
26,241,980
11,985,509
-------------
-------------
Net current assets
1,426,390
1,120,267
------------
------------
Total assets less current liabilities
1,451,239
1,151,256
Provisions
Taxation including deferred tax
16
5,935
5,635
------------
------------
Net assets
1,445,304
1,145,621
------------
------------
Capital and reserves
Called up share capital
20
219,536
258,176
Capital redemption reserve
21
162,464
123,824
Profit and loss account
21
1,063,304
763,621
------------
------------
Shareholders funds
1,445,304
1,145,621
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 29 February 2024 , and are signed on behalf of the board by:
Mr N Conley
Director
Company registration number: 1760294
Skytrail Limited
Statement of Changes in Equity
Year ended 30 September 2023
Called up share capital
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
At 1 October 2021
258,176
123,824
368,869
750,869
Profit for the year
394,752
394,752
---------
---------
---------
---------
Total comprehensive income for the year
394,752
394,752
At 30 September 2022
258,176
123,824
763,621
1,145,621
Profit for the year
549,683
549,683
---------
---------
---------
------------
Total comprehensive income for the year
549,683
549,683
Cancellation of subscribed capital
( 38,640)
38,640
( 250,000)
( 250,000)
--------
--------
---------
---------
Total investments by and distributions to owners
( 38,640)
38,640
( 250,000)
( 250,000)
---------
---------
------------
------------
At 30 September 2023
219,536
162,464
1,063,304
1,445,304
---------
---------
------------
------------
Skytrail Limited
Statement of Cash Flows
Year ended 30 September 2023
2023
2022
Note
£
£
Cash generated from operations
22
1,776,374
1,745,923
Interest paid
( 459)
Interest received
4,243
158
Tax paid
( 91,958)
( 2,030)
------------
------------
Net cash from operating activities
1,688,200
1,744,051
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 12,497)
( 9,697)
------------
------------
Net cash used in investing activities
( 12,497)
( 9,697)
------------
------------
Cash flows from financing activities
Purchase of own shares
( 250,000)
Proceeds from borrowings
( 500,000)
------------
------------
Net cash used in financing activities
( 250,000)
( 500,000)
------------
------------
Net increase in cash and cash equivalents
1,425,703
1,234,354
Cash and cash equivalents at beginning of year
6,154,045
4,919,691
------------
------------
Cash and cash equivalents at end of year
7,579,748
6,154,045
------------
------------
Skytrail Limited
Notes to the Financial Statements
Year ended 30 September 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Third Floor, West Point, Springfield Road, Horsham, West Sussex, RH12 2PD.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. (i) Significant judgements No critical accouting judgement was made by management in the process of applying the company's accounting policies that have a significant effect on the amounts recognised in the financial statements. (ii) Key sources of estimation uncertainty No critical sources of estimation uncertainty were made by management in the process of applying the company's accounting policies that have a significant effect on the amounts recognised in the financial statements.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered by the company as a travel agent and tour operator, stated net of discounts and of Value Added Tax. Turnover is recognised on the date of departure.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Computer Systems
-
20% - 25% straight line
Fixtures, Fittings & Equipment
-
20% - 25% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Aircraft charter brokerage services
41,070,903
31,750,716
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2023
2022
£
£
United Kingdom
24,248,475
21,674,785
Overseas
16,822,428
10,075,931
-------------
-------------
41,070,903
31,750,716
-------------
-------------
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
18,637
21,710
Impairment of trade debtors
(419)
12,710
Foreign exchange differences
17,721
( 28,530)
--------
--------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
18,000
14,000
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Administrative staff
9
9
Management staff
2
2
----
----
11
11
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
566,196
625,747
Social security costs
46,766
78,747
Other pension costs
489,387
213,019
------------
---------
1,102,349
917,513
------------
---------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
186,008
180,565
Company contributions to defined contribution pension plans
263,000
50,000
---------
---------
449,008
230,565
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
2
2
----
----
Key management personnel are represented by the board of directors.
9. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
4,243
158
-------
----
10. Interest payable and similar expenses
2023
2022
£
£
Other interest payable and similar charges
459
----
----
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
164,254
91,958
Adjustments in respect of prior periods
36
---------
--------
Total current tax
164,254
91,994
---------
--------
Deferred tax:
Origination and reversal of timing differences
300
( 2,231)
---------
--------
Tax on profit
164,554
89,763
---------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 22.01 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
714,237
484,515
---------
---------
Profit on ordinary activities by rate of tax
157,191
92,058
Adjustment to tax charge in respect of prior periods
36
Effect of expenses not deductible for tax purposes
8,546
2,565
Effect of capital allowances and depreciation
991
1,679
R&D relief
(2,474)
(4,344)
Deferred tax
300
(2,231)
---------
---------
Tax on profit
164,554
89,763
---------
---------
12. Tangible assets
Computer System
Fixtures, Fittings & Equipment
Total
£
£
£
Cost
At 1 October 2022
84,556
142,211
226,767
Additions
749
11,748
12,497
--------
---------
---------
At 30 September 2023
85,305
153,959
239,264
--------
---------
---------
Depreciation
At 1 October 2022
82,628
113,250
195,878
Charge for the year
1,502
17,135
18,637
--------
---------
---------
At 30 September 2023
84,130
130,385
214,515
--------
---------
---------
Carrying amount
At 30 September 2023
1,175
23,574
24,749
--------
---------
---------
At 30 September 2022
1,928
28,961
30,889
--------
---------
---------
13. Investments
Shares in group undertakings
£
Cost
At 1 October 2022 and 30 September 2023
100
----
Impairment
At 1 October 2022 and 30 September 2023
----
Carrying amount
At 30 September 2023
100
----
At 30 September 2022
100
----
The company owns 100% of the issued share capital of the following companies listed below, all of which were incorporated in England and Wales. The registered office address of the companies listed below is Third Floor West Point, Springfield Road, Horsham, West Sussex RH12 9PD.
Aggregate capital and reserves
2023
2022
£
£
The Golden Holiday Company Limited (Dormant)
100
100
Under the provision of section 398 of the Companies Act 2006 the company is exempt from preparing consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity.
14. Debtors
2023
2022
£
£
Trade debtors
5,028,924
2,254,500
Called up share capital not paid
148,000
148,000
Prepayments and accrued income
14,775,477
4,459,144
Other debtors
136,221
90,087
-------------
------------
20,088,622
6,951,731
-------------
------------
15. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
13,315,607
1,882,975
Accruals and deferred income
12,286,297
8,999,914
Corporation tax
164,254
91,958
Social security and other taxes
91,788
56,330
Other creditors
384,034
954,332
-------------
-------------
26,241,980
11,985,509
-------------
-------------
16. Provisions
Deferred tax (note 17)
£
At 1 October 2022
5,635
Charge against provision
300
-------
At 30 September 2023
5,935
-------
17. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 16)
5,935
5,635
-------
-------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
5,935
5,635
-------
-------
18. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 226,387 (2022: £ 163,019 ).
19. Financial instruments
Financial assets measured at amortised cost are represented by trade and other debtors as well as bank balances. Financial liabilities measured at amortised cost are represented by trade and other creditors.
20. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary 'A' shares of £ 1 each
150,000
150,000
150,000
150,000
Ordinary 'C' shares of £ 1 each
69,536
69,536
108,176
108,176
---------
---------
---------
---------
219,536
219,536
258,176
258,176
---------
---------
---------
---------
The 'A' Ordinary shares have full voting, dividend rights and the right to participate in a return of capital, including on winding up of the company. The 'C' Ordinary shares have no voting rights, dividend rights or the right to participate in a return of capital, including on winding up of the company. On 10 January 2020, the company entered into an agreement to purchase 170,000 Ordinary 'B' shares with a nominal value of £1 for £1,100,000 under a multiple completion buyback arrangement. At the year end, the company had purchased a total of 100,464 shares and the remaining shares to be cancelled amounted to 69,536 held as Ordinary 'C' shares.
21. Reserves
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
22. Cash generated from operations
2023
2022
£
£
Profit for the financial year
549,683
394,752
Adjustments for:
Depreciation of tangible assets
18,637
21,710
Other interest receivable and similar income
( 4,243)
( 158)
Interest payable and similar expenses
459
Tax on profit
164,554
89,763
Accrued expenses
3,286,383
4,586,752
Changes in:
Trade and other debtors
( 13,136,891)
( 4,015,796)
Trade and other creditors
10,897,792
668,900
-------------
------------
1,776,374
1,745,923
-------------
------------
23. Analysis of changes in net debt
At 1 Oct 2022
Cash flows
At 30 Sep 2023
£
£
£
Cash at bank and in hand
6,154,045
1,425,703
7,579,748
------------
------------
------------
24. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
50,401
50,401
Later than 1 year and not later than 5 years
27,116
77,500
--------
---------
77,517
127,901
--------
---------