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Registered number: 07430273










RED SAVANNAH LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023
 


 
RED SAVANNAH LTD
 

COMPANY INFORMATION


Directors
Viscount H Garmoyle 
E Granville (resigned 6 September 2023)
G Morgan-Grenville 
Sir W Russell 
N J Westwood (appointed 3 April 2023)
I J Mackinnon (appointed 15 August 2023)




Registered number
07430273



Registered office
Reading Bridge House
George Street

Reading

Berkshire

RG1 8LS




Independent auditor
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
RED SAVANNAH LTD
 

CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditor's Report
4 - 6
Statement of Comprehensive Income
7
Balance Sheet
8
Statement of Changes in Equity
9
Statement of Cash Flows
10
Analysis of Net Debt
11
Notes to the Financial Statements
12 - 21


 
RED SAVANNAH LTD
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their strategic report for the year ended 31 December 2023.

Business review
 
Following on from an exceptionally strong 2022 post-Covid recovery year, 2023 also proved to be equally strong, generating Sales of £16.2m (2022: £15.1m). Bookings taken during the year increased by 19% over prior year, and by 48% over strongest pre-Covid year. Forward bookings going into 2023 were £6.5m…an uplift of 32% over forward bookings going into 2020 (pre-Covid). Solid performance from the assets (mainly client data) of Homebase Abroad (acquired in 2021). Pre-Tax Profit of £1.2m. The company maintained strict control of costs while increasing the number of staff to cope with higher turnover. Overheads were generally in line with budget.

Principal risks and uncertainties
 
The Directors are responsible for monitoring & managing risks stemming from geo-political and macro-economic events, as well as all business-related risk including liquidity, safety, environmental, regulatory and foreign exchange.

The company holds an ATOL Licence (No. 10454) and is not required to undertake any bonding arrangements. Non-licensable financial failure insurance is provided by International Passenger Protection (IPP).

All foreign exchange risk is managed carefully via a mixture of internal exchange (converting USD receipts to Euros), spot purchases, limited hedging and forward contracts. The directors have many years of experience in managing exchange risk.

As the company has no borrowings, there is no internal risk from interest rates.

All holidays sold are paid in advance and there are no credit lines with any client (trade or consumer). Treasury deposits are only made with reputable banks with either A1+ / P1 or P2 ratings.

Financial key performance indicators
 
The company produces detailed monthly management accounts and all key performance indicators are monitored both against budget and STLY. The principle KPIs monitored are as follows:

Gross Revenue: £16,261,766 (2022: £15,111,095)

Net profit pre tax: £1,220,485 (2022: £1,350,672)

Cash Reserves: £5,145,285 (2022: £4,639,808)


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



G Morgan-Grenville
Director

Date: 4 July 2024

Page 1

 
RED SAVANNAH LTD
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

Viscount H Garmoyle 
E Granville (resigned 6 September 2023)
G Morgan-Grenville 
Sir W Russell 
N J Westwood (appointed 3 April 2023)
I J Mackinnon (appointed 15 August 2023)

Directors' responsibilities statement

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

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


select suitable accounting policies for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company during the period was that of luxury tour operator services.

Disclosure of information to auditor

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

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

Auditor

The auditor, James Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 2

 
RED SAVANNAH LTD
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Results and dividends

The profit for the year, after taxation, amounted to £930,144 (2022 - £1,350,672).

A dividend of £0.48p per share was paid to investors (2022: £nil).

Future developments

The company plans to continue its strong growth trajectory through additional investment in marketing and staff recruitment. We continue to review possible acquisition opportunities. As the current office is now at capacity, a leasehold on a new, larger office has been agreed, commencing in April 2024.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

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





G Morgan-Grenville
Director

Date: 4 July 2024

Page 3

 
RED SAVANNAH LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RED SAVANNAH LTD
 

Opinion


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


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


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


We have nothing to report in this regard.


Page 4

 
RED SAVANNAH LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RED SAVANNAH LTD (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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 set out on page 2, 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. 
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. 
 
Page 5

 
RED SAVANNAH LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RED SAVANNAH LTD (CONTINUED)


Auditor's responsibilities for the audit of the financial statements (continued)
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
 • Enquiry of management and those charged with governance around actual and potential       litigation and claims;
• Enquiry of management and those charged with governance to identify any material instances of non-    compliance with laws and regulations;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance        with applicable laws and regulations;
• Performing audit work to address the risk of irregularities due to management override of controls,    including testing of journal entries and other adjustments for appropriateness, evaluating the business    rationale of significant transactions outside the normal course of business and reviewing accounting    estimates for evidence of bias.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.





Darren O'Connor BSc (Hons) FCCA ACA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

12 July 2024
Page 6

 
RED SAVANNAH LTD
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
16,261,766
15,111,095

Cost of sales
  
(12,229,787)
(11,304,463)

Gross profit
  
4,031,979
3,806,632

Administrative expenses
  
(2,989,007)
(2,494,322)

Operating profit
 4 
1,042,972
1,312,310

Interest receivable and similar income
 8 
177,513
38,362

Profit before tax
  
1,220,485
1,350,672

Tax on profit
  
(290,341)
-

Profit for the financial year
  
930,144
1,350,672

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 21 form part of these financial statements.

Page 7

 
RED SAVANNAH LTD
REGISTERED NUMBER: 07430273

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
137,893
156,345

  
137,893
156,345

Current assets
  

Stocks
 12 
18,646
10,271

Debtors: amounts falling due within one year
 13 
1,959,042
2,311,376

Cash at bank and in hand
 14 
5,145,285
4,639,808

  
7,122,973
6,961,455

Creditors: amounts falling due within one year
 15 
(4,261,129)
(4,329,898)

Net current assets
  
 
 
2,861,844
 
 
2,631,557

Total assets less current liabilities
  
2,999,737
2,787,902

Provisions for liabilities
  

Deferred tax
  
(21,153)
-

  
 
 
(21,153)
 
 
-

Net assets
  
2,978,584
2,787,902


Capital and reserves
  

Called up share capital 
 18 
1,582
1,539

Share premium account
  
514,055
494,240

Profit and loss account
  
2,462,947
2,292,123

  
2,978,584
2,787,902


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




G Morgan-Grenville
Director

Date: 4 July 2024


The notes on pages 12 to 21 form part of these financial statements.

Page 8

 
RED SAVANNAH LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
1,539
494,240
2,292,123
2,787,902


Comprehensive income for the year

Profit for the year
-
-
930,144
930,144
Total comprehensive income for the year
-
-
930,144
930,144


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(759,320)
(759,320)

Shares issued during the year
43
19,815
-
19,858


Total transactions with owners
43
19,815
(759,320)
(739,462)


At 31 December 2023
1,582
514,055
2,462,947
2,978,584


The notes on pages 12 to 21 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2022
1,539
494,240
941,451
1,437,230


Comprehensive income for the year

Profit for the year
-
-
1,350,672
1,350,672
Total comprehensive income for the year
-
-
1,350,672
1,350,672


Total transactions with owners
-
-
-
-


At 31 December 2022
1,539
494,240
2,292,123
2,787,902


The notes on pages 12 to 21 form part of these financial statements.

Page 9

 
RED SAVANNAH LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
930,144
1,350,672

Adjustments for:

Depreciation of tangible assets
54,623
52,475

Profit on disposal of tangible assets
(1,004)
(30)

Interest received
(177,513)
(38,362)

Taxation charge
290,341
-

(Increase) in stocks
(8,375)
(1,920)

Decrease/(increase) in debtors
352,334
(164,603)

(Decrease)/increase in creditors
(337,957)
244,321

Net cash generated from operating activities

1,102,593
1,442,553


Cash flows from investing activities

Purchase of tangible fixed assets
(36,346)
(70,743)

Sale of tangible fixed assets
1,179
30

Interest received
177,513
38,362

Net cash from investing activities

142,346
(32,351)

Cash flows from financing activities

Issue of ordinary shares
19,858
-

Dividends paid
(759,320)
-

Net cash used in financing activities
(739,462)
-

Net increase in cash and cash equivalents
505,477
1,410,202

Cash and cash equivalents at beginning of year
4,639,808
3,229,606

Cash and cash equivalents at the end of year
5,145,285
4,639,808


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,145,285
4,639,808

5,145,285
4,639,808


The notes on pages 12 to 21 form part of these financial statements.

Page 10

 
RED SAVANNAH LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

4,639,808

505,477

5,145,285

Bank overdrafts

(8,504)

(3,844)

(12,348)


4,631,304
501,633
5,132,937

The notes on pages 12 to 21 form part of these financial statements.

Page 11

 
RED SAVANNAH LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Red Savannah Ltd is a private company limited by share capital and incorporated in England and Wales. The principal activity of the company is that of luxury tour operator services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Turnover

Turnover represents revenue receivable for the provision of travel services during the financial period, net of value added tax. Revenue is recognised on the date of holiday departure and related costs of the holiday are charged to the Statement of Comprehensive Income on the same basis.  

 
2.3

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Leasehold improvements
-
over the life of the lease
Fixtures and fittings
-
10% straight line
Office equipment
-
20% straight line
Computer equipment
-
12.5% - 25% straight line
Website
-
25% - 33% straight line

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

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

Page 12

 
RED SAVANNAH LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.5

Debtors

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

 
2.6

Cash and cash equivalents

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

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

  
2.7

Finanaical instruments

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

 
2.8

Creditors

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

 
2.9

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.10

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 13

 
RED SAVANNAH LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Pensions

Defined contribution pension plan

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

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

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.13

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

Page 14

 
RED SAVANNAH LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company accounting policies, the directors are required to make judgments, 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.


4.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation charge
54,623
52,475

Other operating lease rentals
56,318
52,572


5.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
9,530
8,400

Fees payable to the Company's auditor in respect of:

Taxation compliance services
1,610
1,500

All taxation advisory services not included above
5,555
1,365

ATOL reporting
1,200
1,100

Total
17,895
12,365
Page 15

 
RED SAVANNAH LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Employees

2023
2022
£
£

Wages and salaries
1,688,958
1,351,107

Social security costs
196,148
160,219

Cost of defined contribution scheme
147,174
111,955

2,032,280
1,623,281


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


        2023
        2022
            No.
            No.







Employees
32
23


7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
516,163
368,048

Company contributions to defined contribution pension schemes
47,548
31,305

563,711
399,353


During the year retirement benefits were accruing to 3 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £272,828 (2022 - £238966).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £22,762 (2022 - £17,510).

Viscount H Garmoyle and W Russell received £30,000 (2022: £25,000) and £25,000 (2022: £20,000) respectively, relating to consultancy work carried out during the year.


8.


Interest receivable

2023
2022
£
£


Other interest receivable
177,513
38,362

177,513
38,362

Page 16

 
RED SAVANNAH LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
269,188
-


269,188
-


Total current tax
269,188
-

Deferred tax


Origination and reversal of timing differences
21,153
-

Total deferred tax
21,153
-


Tax on profit
290,341
-

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,220,485
1,350,672


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
287,065
256,628

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,062
1,593

Capital allowances for year in excess of depreciation
(250)
(1,151)

Remeasurement of deferred tax for change in tax rates
1,175
81,480

Movement in deferred tax not recognised
1,289
(339,500)

Other differences leading to an increase (decrease) in the tax charge
-
950

Total tax charge for the year
290,341
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 17

 
RED SAVANNAH LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Dividends

2023
2022
£
£


Dividend paid
759,320
-

759,320
-


11.


Tangible fixed assets





Leasehold improvements
Fixtures and fittings
Office equipment
Computer equipment
Website
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
16,976
14,588
16,048
197,665
258,569
503,846


Additions
-
3,416
4,168
27,459
1,303
36,346


Disposals
-
(376)
-
-
-
(376)



At 31 December 2023

16,976
17,628
20,216
225,124
259,872
539,816



Depreciation


At 1 January 2023
16,976
7,898
15,141
117,633
189,853
347,501


Charge for the year on owned assets
-
1,461
1,007
24,010
28,145
54,623


Disposals
-
(201)
-
-
-
(201)



At 31 December 2023

16,976
9,158
16,148
141,643
217,998
401,923



Net book value



At 31 December 2023
-
8,470
4,068
83,481
41,874
137,893



At 31 December 2022
-
6,690
907
80,032
68,716
156,345


12.


Stocks

2023
2022
£
£

Finished goods and goods for resale
18,646
10,271

18,646
10,271


Page 18

 
RED SAVANNAH LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Debtors

2023
2022
£
£


Other debtors
48,878
48,372

Prepayments and accrued income
1,910,164
2,263,004

1,959,042
2,311,376



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
5,145,285
4,639,808

Less: bank overdrafts
(12,348)
(8,504)

5,132,937
4,631,304



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
12,348
8,504

Trade creditors
269,472
270,602

Corporation tax
269,188
-

Other taxation and social security
254,707
235,736

Other creditors
13,819
11,766

Accruals and deferred income
3,441,595
3,803,290

4,261,129
4,329,898



16.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
5,145,285
4,639,808




Financial assets measured at fair value through profit or loss comprise cash at bank.


17.


Deferred taxation

Page 19

 
RED SAVANNAH LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
17.Deferred taxation (continued)




2023


£






Charged to profit or loss
(21,153)



At end of year
(21,153)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(23,746)
-

Short term timing difference
2,593
-

(21,153)
-


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,581,917 (2022 - 1,538,748) Ordinary shares of £0.001 each
1,581.917
1,538.748


43,169 ordinary shares of £0.001 each were allotted in the year at £0.46 per share.


19.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £147,174 (2022: £111,955). Contributions totalling £10,372 (2022: £9,092) were payable to the fund at the balance sheet date and are included in creditors.

Page 20

 
RED SAVANNAH LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
6,425
56,738

Later than 1 year and not later than 5 years
1,908
18,523

8,333
75,261


21.


Controlling party

In the opinion of the directors, the company is not controlled by any one person.


Page 21