Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31false2023-01-01Holiday travel specialist529479falsefalse SC057208 2023-01-01 2023-12-31 SC057208 c:OtherRelatedPartyRelationshipType2ComponentTotalRelatedParties 2023-01-01 2023-12-31 SC057208 c:OtherRelatedPartyRelationshipType1ComponentTotalRelatedParties 2023-01-01 2023-12-31 SC057208 c:EntityControlledByKeyManagementPersonnel4 2023-01-01 2023-12-31 SC057208 c:EntityControlledByKeyManagementPersonnel3 2023-01-01 2023-12-31 SC057208 c:EntityControlledByKeyManagementPersonnel2 2023-01-01 2023-12-31 SC057208 c:EntityControlledByKeyManagementPersonnel1 2023-01-01 2023-12-31 SC057208 c:EntityControlledByKeyManagementPersonnel5 2023-01-01 2023-12-31 SC057208 2022-01-01 2022-12-31 SC057208 2023-12-31 SC057208 c:OtherRelatedPartyRelationshipType2ComponentTotalRelatedParties 2023-12-31 SC057208 c:OtherRelatedPartyRelationshipType1ComponentTotalRelatedParties 2023-12-31 SC057208 c:EntityControlledByKeyManagementPersonnel1 2023-12-31 SC057208 c:EntityControlledByKeyManagementPersonnel2 2023-12-31 SC057208 c:EntityControlledByKeyManagementPersonnel4 2023-12-31 SC057208 c:EntityControlledByKeyManagementPersonnel5 2023-12-31 SC057208 c:EntityControlledByKeyManagementPersonnel3 2023-12-31 SC057208 2022-12-31 SC057208 2022-01-01 SC057208 1 2023-01-01 2023-12-31 SC057208 1 2022-01-01 2022-12-31 SC057208 2 2023-01-01 2023-12-31 SC057208 2 2022-01-01 2022-12-31 SC057208 4 2023-01-01 2023-12-31 SC057208 4 2022-01-01 2022-12-31 SC057208 5 2023-01-01 2023-12-31 SC057208 5 2022-01-01 2022-12-31 SC057208 6 2023-01-01 2023-12-31 SC057208 6 2022-01-01 2022-12-31 SC057208 1 2023-01-01 2023-12-31 SC057208 e:CompanySecretary1 2023-01-01 2023-12-31 SC057208 e:Director1 2023-01-01 2023-12-31 SC057208 e:Director2 2023-01-01 2023-12-31 SC057208 e:Director3 2023-01-01 2023-12-31 SC057208 e:Director4 2023-01-01 2023-12-31 SC057208 e:Director5 2023-01-01 2023-12-31 SC057208 e:RegisteredOffice 2023-01-01 2023-12-31 SC057208 c:Buildings 2023-01-01 2023-12-31 SC057208 c:Buildings 2023-12-31 SC057208 c:Buildings 2022-12-31 SC057208 c:Buildings c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC057208 c:Buildings c:LongLeaseholdAssets 2023-01-01 2023-12-31 SC057208 c:Buildings c:LongLeaseholdAssets 2023-12-31 SC057208 c:Buildings c:LongLeaseholdAssets 2022-12-31 SC057208 c:FurnitureFittings 2023-01-01 2023-12-31 SC057208 c:FurnitureFittings 2023-12-31 SC057208 c:FurnitureFittings 2022-12-31 SC057208 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC057208 c:ComputerEquipment 2023-01-01 2023-12-31 SC057208 c:ComputerEquipment 2023-12-31 SC057208 c:ComputerEquipment 2022-12-31 SC057208 c:ComputerEquipment c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC057208 c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC057208 c:ComputerSoftware 2023-12-31 SC057208 c:ComputerSoftware 2022-12-31 SC057208 c:OtherResidualIntangibleAssets 2023-01-01 2023-12-31 SC057208 c:CurrentFinancialInstruments 2023-12-31 SC057208 c:CurrentFinancialInstruments 2022-12-31 SC057208 c:CurrentFinancialInstruments 1 2023-12-31 SC057208 c:CurrentFinancialInstruments 1 2022-12-31 SC057208 c:Non-currentFinancialInstruments 2023-12-31 SC057208 c:Non-currentFinancialInstruments 2022-12-31 SC057208 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 SC057208 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 SC057208 c:Non-currentFinancialInstruments c:AfterOneYear 2023-12-31 SC057208 c:Non-currentFinancialInstruments c:AfterOneYear 2022-12-31 SC057208 c:ReportableOperatingSegment1 2023-01-01 2023-12-31 SC057208 c:ReportableOperatingSegment1 2022-01-01 2022-12-31 SC057208 c:ReportableOperatingSegment2 2023-01-01 2023-12-31 SC057208 c:ReportableOperatingSegment2 2022-01-01 2022-12-31 SC057208 c:ReportableOperatingSegment3 2023-01-01 2023-12-31 SC057208 c:ReportableOperatingSegment3 2022-01-01 2022-12-31 SC057208 c:UKTax 2023-01-01 2023-12-31 SC057208 c:UKTax 2022-01-01 2022-12-31 SC057208 c:ShareCapital 2023-01-01 2023-12-31 SC057208 c:ShareCapital 2023-12-31 SC057208 c:ShareCapital 2022-01-01 2022-12-31 SC057208 c:ShareCapital 2022-12-31 SC057208 c:ShareCapital 2022-01-01 SC057208 c:RevaluationReserve 2023-01-01 2023-12-31 SC057208 c:RevaluationReserve 2023-12-31 SC057208 c:RevaluationReserve 2022-01-01 2022-12-31 SC057208 c:RevaluationReserve 2022-12-31 SC057208 c:RevaluationReserve 2022-01-01 SC057208 c:OtherMiscellaneousReserve 2023-01-01 2023-12-31 SC057208 c:OtherMiscellaneousReserve 2023-12-31 SC057208 c:OtherMiscellaneousReserve 2022-01-01 2022-12-31 SC057208 c:OtherMiscellaneousReserve 2022-12-31 SC057208 c:OtherMiscellaneousReserve 2022-01-01 SC057208 c:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 SC057208 c:RetainedEarningsAccumulatedLosses 2023-12-31 SC057208 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 SC057208 c:RetainedEarningsAccumulatedLosses 2022-12-31 SC057208 c:RetainedEarningsAccumulatedLosses 2022-01-01 SC057208 c:AcceleratedTaxDepreciationDeferredTax 2023-12-31 SC057208 c:AcceleratedTaxDepreciationDeferredTax 2022-12-31 SC057208 c:TaxLossesCarry-forwardsDeferredTax 2023-12-31 SC057208 c:TaxLossesCarry-forwardsDeferredTax 2022-12-31 SC057208 c:RetirementBenefitObligationsDeferredTax 2023-12-31 SC057208 c:RetirementBenefitObligationsDeferredTax 2022-12-31 SC057208 c:OtherDeferredTax 2023-12-31 SC057208 c:OtherDeferredTax 2022-12-31 SC057208 e:OrdinaryShareClass1 2023-01-01 2023-12-31 SC057208 e:OrdinaryShareClass1 2023-12-31 SC057208 e:OrdinaryShareClass1 2022-12-31 SC057208 e:OrdinaryShareClass2 2023-01-01 2023-12-31 SC057208 e:OrdinaryShareClass2 2023-12-31 SC057208 e:OrdinaryShareClass2 2022-12-31 SC057208 e:FRS102 2023-01-01 2023-12-31 SC057208 e:Audited 2023-01-01 2023-12-31 SC057208 e:FullAccounts 2023-01-01 2023-12-31 SC057208 e:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 SC057208 c:Subsidiary1 2023-01-01 2023-12-31 SC057208 c:Subsidiary1 1 2023-01-01 2023-12-31 SC057208 c:WithinOneYear 2023-12-31 SC057208 c:WithinOneYear 2022-12-31 SC057208 c:BetweenOneFiveYears 2023-12-31 SC057208 c:BetweenOneFiveYears 2022-12-31 SC057208 c:MoreThanFiveYears 2023-12-31 SC057208 c:MoreThanFiveYears 2022-12-31 SC057208 2 2023-01-01 2023-12-31 SC057208 6 2023-01-01 2023-12-31 SC057208 2 2023-12-31 SC057208 2 2022-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: SC057208










BARRHEAD TRAVEL SERVICE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
COMPANY INFORMATION


Directors
J Dobson 
S Taylor 
J D O'Hara 
G T Rizzi 
H Daras 




Company secretary
S Taylor



Registered number
SC057208



Registered office
Libertas House
5th Floor

39 St. Vincent Place

Glasgow

G1 2ER




Independent auditors
Xeinadin Audit Limited
Chartered Accountants & Statutory Auditors

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD





 
BARRHEAD TRAVEL SERVICE LIMITED
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 8
Independent auditors' report
9 - 12
Statement of comprehensive income
13
Statement of financial position
14
Statement of changes in equity
15 - 16
Notes to the financial statements
17 - 37

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Introduction
 
The principal activity of the Company is that of a tour operator and travel agent.

Business review
 
Following three years of Covid-related travel disruption, 2023 was the first full financial year for the industry with no travel restrictions since 2019. Momentum for travel demand accelerated towards the end of 2022 and, by 2023, full confidence in the market had been restored.
For Barrhead Travel, 2023 was our best trading year to date, surpassing all targets and forecasts. January 2023 brought four record-breaking weekends in a row, and we recorded our highest ever day of sales on Saturday 28th January. 
The strong start to the beginning of the year set the tone for the months ahead and we concluded 2023 with 12 consecutive record sales months through to December 2023. Repeat customers are a core part of our business – but we noticed a significant increase in new-to-brand clients many of which were turning to a travel agent for the first time. 
Demand for holidays was sustained throughout the course of the year with our annual order book target achieved by August. This achievement permitted us to turn attention to 2024 bookings earlier than predicted which has stood us in great stead for our current trading year.
As well as ensuring our retail network was well-resourced for the anticipated growth in demand for travel last year, we stimulated additional opportunities by enhancing our product offering. At the beginning of the year, we launched a standalone division for Touring & Adventure holidays after identifying a gap in the market for genuine expertise. Investing in experienced people, new product, and targeted marketing saw our Touring & Adventure business grow by over 80 percent in 2023. 
Keeping abreast of travel trends also meant we were aware of the predicted rapid growth of cruise. With significant investment in new ships on the horizon and a new market from those who tried cruising round Britain during Covid, we accelerated our own commitment to cruise through our unique product and training opportunities.
We have a longstanding commitment to the high street, and we can clearly see that retail travel is entering a new era – where many customers want to speak with real people in their local towns and cities. 
Expanding our retail footprint to meet this growing demand is high on our agenda and last year, we were pleased to unveil a new flagship store in the heart of Glasgow city centre. Our Gordon Street store spans two floors and houses our specialist departments including cruise, longhaul, package and Canada departments. 
In addition to setting our sights on new stores, we are also committed to investing in our existing network to maintain high standards and ensure our stores are in the right location. Last year, we relocated our Silverburn store to a new unit in the shopping centre which has not only allowed us to invest in a new and modern look, but its location is more desirable with a larger floorspace that can accommodate growth. Similarly, we invested in the refurbishment of our Stirling store, and we have further plans to upgrade other locations in our network this year. Continuing to invest in existing locations reiterates our commitment to communities, jobs, and the retail industry.
Page 1

 
BARRHEAD TRAVEL SERVICE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Our Brilliant Travel division, which is home to our homebased agents and Managed Service Travel Partners (MSTPs), has also enjoyed membership growth this year. We welcomed nine new MSTP members and 11 homeworkers during 2023 while some of our existing MSTP members also expanded. A burgeoning travel market is prompting interest for agents to start their own businesses and we are preparing to recruit more members in 2024.
The travel industry is on an upward trajectory. Travel is outpacing every other non-essential spending area and agents are seeing consistent growth as consumers put their faith in real people that can guarantee financial protection on their holidays. We are anticipating another successful period ahead and, despite challenges on the horizon such as the ongoing cost of living crisis, political turbulence and global unrest, we expect that travel will remain a “non-negotiable” for majority of households. 
The driving force behind the Barrhead Travel Group’s success is, without a doubt, its people. This is why we continue to invest in initiatives that benefit our colleagues. Crucially, we believe a progressive workplace is key and are actively listening to our people to help us implement positive changes. Employee wellbeing is at the heart of our decision-making and we know that a healthy and happy workforce is essential to business prosperity, complemented by training delivered through our in-house Training Academy, further details of which are included in the Directors report.
We are proud to have been recognised both within and outside the industry for our people-first strategy – winning the Best Large Agency to Work for at the 2023 Travel Weekly Agent Achievement Awards as well as being named within the Top 100 Best Companies to Work for. 
Finally, I would like to reiterate our ongoing support for the communities we serve – both at home and abroad. Giving back to the places we operate in is part of our mission and identity, and we’ve contributed to a wide range of projects and fundraising initiatives over the last year including Just a Drop, Cash for Kids, RNIB, and MacMillan Cancer. Additionally, our local stores are passionate about their own communities and neighbourhoods, and actively support schools, community groups, hospices, and local fundraisers. 
It is very important that our communities can trust that Barrhead Travel will always support their people, economy, and high street. 
We look forward to working with all stakeholders as we look ahead to another successful year. 

Principal risks and uncertainties
 
The principal risks and uncertainties affecting the business are economic and geopolitical.  The economic uncertainty relates to the economic confidence of our customers which in turn feed through to those in the marketplace.  The geopolitical risks capture the global threat of terrorism, conflict, disease, and adverse weather conditions, all of which we monitor in conjunction with ABTA and our suppliers.  The impact of which we track through our Order Book and will feed through into our product offering and marketing to ensure a strong value proposition is maintained.

Financial key performance indicators
 
The directors consider the following to be the key performance indicators.


2023
2022
Change
Gross Turnover
£315m
£235m
+ 34%
Reported Turnover*
£80.7m
£56.9m
+ 42%
Gross Profit
£33.2m
£24.2m
+ 37%
Adjusted EBITDA
£2.5m
(£1.0m)
+ 350%
Travel Commissions - Order Book as at 31 December
£13.4m
£10.9m
+ 23%

*Reconciliation of Gross Turnover to Reported Turnover included in Note 5 on page 24 of these financial statements
Page 2

 
BARRHEAD TRAVEL SERVICE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors’ duties under s172(1)
 
The directors of the company must act in accordance with a set of general duties.  These duties are detailed in section 172 of the UK Companies Act 2006 and include a duty to promote the success of the company for the benefit of its members as a whole.
The directors fulfil these duties in the following ways:
 
Employees – the driving force behind our success is our people.  We therefore engage with our people through regular business and team meetings, newsletters, and a wide range of training.
Suppliers - we are in regular dialogue with our suppliers at a strategic and tactical level, along with hosting an annual supplier conference to strengthen the relationships and knowledge with our managers.
Customers – our business is built around the personal service offered by our sales team and the holiday offerings developed in conjunction with our suppliers.
Environment - as travel providers, airlines, operators, and cruise lines work towards Net Zero goals over the coming decade, we also believe that we have a responsibility to make positive changes and influence customer decision-making when it comes to travel.

Our Sustainability Committee represents all areas of our business and is currently working to reduce the carbon footprint of our network, deliver training programmes for colleagues, hold our partners accountable for sustainability actions, and educate our customers. In 2023, we launched a bespoke training programme for our people to help inform them about the climate crisis and what this means for the travel industry, as we firmly believe that education is key to making positive changes.

We believe that tourism can be a force for good and we will work with our travel colleagues to ensure that the global travel industry plays its part in protecting the planet. 
 
Business conduct - through regular contact and ongoing training in addition to the submission of the required returns, we meet the standards set by the sector regulators.
Shareholders – as noted on page 37, the company is 100% owned and controlled by the Internova Holdings, LLC.  Our performance is reported and reviewed monthly with our parent company which is also the sole shareholder. The Board will continue to keep engagement methods under review to ensure they remain effective.


This report was approved by the board on 21 June 2024 and signed on its behalf by:



................................................
J Dobson
Director
Page 3

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
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' 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;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

Results and dividends

The profit for the year, after taxation, amounted to £4,775,874 (2022 - £4,095,757).

Interim dividends totalling £Nil (2022: £Nil) were paid during the year. The directors have not proposed the payment of a final dividend (2022: £Nil).

Directors

The directors who served during the year are:

J Dobson 
S Taylor 
J D O'Hara 
G T Rizzi 
H Daras 

Future developments

The future developments for the Company are covered in the Business Review section of the Strategic Report.

Page 4

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial Risk Management

Liquidity risk – The group aims to mitigate liquidity risk by managing cash generated by its operations and maintaining significant cash reserves.
Credit risk – Whilst the group has external debtors, the level of risk is minimised as customers are required to settle balances in advance of departure.
Foreign currency risk – The group reviews its foreign currency exposure on an ongoing basis and closely monitors the level of foreign currencies held and changes in exchange rates.
Research and development
As a tour operator and travel agent, the activity of the business means the company does not engage in research and development activities.  The company does however invest in developing systems that support the improved efficiency in the business’s key operations.
Branches outside the UK
The company does not have any branches outside the UK as defined in section 1046(3) of the Companies Act 2006.

Engagement with employees

The driving force behind the success of Barrhead Travel is, without a doubt, its people. It is why we continue to invest in initiatives that benefit our colleagues. Crucially, we believe a progressive workplace is key and are actively listening to our people to help us implement positive changes. Employee wellbeing is at the heart of our decision-making and we know that a healthy and happy workforce is essential to business prosperity. 
To support our people and our growing network, we doubled our Mental Health First Aid team last year as well as delivering Mental Health Awareness training to all managers. We are also very proud to have introduced Menopause Champions within the business who have launched a support network for our colleagues and intend on raising awareness and encouraging open conversation on how the menopause impacts people’s lives. 
Our in-house Training Academy plays a central role in the development of our colleagues. We are delivering industry-leading training programmes to every employee across the business – not only to enhance travel knowledge, but to develop skills and competencies that allow for career progression. Over the course of 2023, our colleagues benefited from 30,000 hours of training that included a variety of sessions from online webinars to in-person workshops. 
The Training Academy continues to support our bespoke Apprenticeship Programme. Bringing young talent into the industry is essential for future growth and we are working with various industry bodies to look at how we can attract more school and college leavers in the future. 
We’re proud to have been recognised both within and outside the industry for our people-first strategy – winning the Best Large Agency to Work for at the 2023 Travel Weekly Agent Achievement Awards as well as being named within the “Top 100 Best Companies to Work for”. 

Page 5

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Engagement with suppliers, customers and others

Throughout the year the business engages with a range of key stakeholders in support of the operations of the business, which include:
 
Suppliers - we are in regular dialogue with our suppliers at a strategic and tactical level, along with hosting an annual supplier conference to strengthen the relationships and knowledge with our managers.
 
Customers – our business is built around the personal service offered by our sales team and the holiday offerings developed in conjunction with our suppliers.
 
Regulators – we maintain regular contact and ongoing training along with the submission of the required returns, to ensure we meet the standards set by the sector regulators. 
 
Shareholders – The company is 100% owned and controlled by the Internova Holdings LLC.  The Board will continue to keep engagement methods under review to ensure they remain effective.

Disabled employees

The company is committed to a policy of recruitment and promotion based on aptitude and ability without discrimination of any kind. Management actively pursues both the employment of disabled persons whenever suitable vacancies arise and the continued employment and retraining of employees who become disabled whilst employed by the company.

Page 6

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Greenhouse gas emissions, energy consumption and energy efficiency action

The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 requires the Company to disclose annual energy consumption and emissions.  These are detailed below:


2023
2022

Emissions resulting from activities for which the Company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent)
30.7
24.0

Emissions resulting from the purchase of the electricity by the Company for its own use, including the purposes of transport (in tonnes of CO2 equivalent)
205.2
165.3

Energy consumed from activities for which the Company is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Company for its own use, including for the purposes of transport, in kWh
1,185,079
947,374

Quantification and reporting methodology
Electricity usage and combustion of gas has been extracted from combination of our energy broker consumption report for the group in addition to invoices for locations not covered by energy broker.  For company vehicles we have calculated the figures above using the recorded mileage.
The total kWh has been converted to CO2 equivalent using the appropriate multipliers extracted from the UK Government GHG Conversion Factors for Company Reporting 2023 and 2022.

Intensity measurement
The Intensity Ratio is 0.437 (2022: 0.331), being based on total metric tonnes of CO2 per average monthly number of employees.
Measures taken to improve energy efficiency
Our Sustainability Committee represents all areas of our business and is currently working to reduce the carbon footprint of our network, implement training programmes for colleagues, hold our partners accountable for sustainability actions, and educate our customers.

Statement as to disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
 
the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.
Page 7

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Auditors

The auditorsXeinadin Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





................................................
J Dobson
Director

Date: 21 June 2024
Page 8

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL SERVICE LIMITED
 

Opinion


We have audited the financial statements of BARRHEAD TRAVEL SERVICE LIMITED (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, 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 Auditors' 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 forming our opinion, we have considered the adequacy of the disclosures made in the financial statements concerning the company's ability to continue as a going concern.
Based on the work we have performed, and comments made in Note 2.3, 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.


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


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


Page 9

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL SERVICE LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


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 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 10

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL SERVICE LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Reviewing minutes of meetings of meetings of those charged with governance;
Performing audit work over the risk of 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 bias;
Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations.

The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the Company is subject to many other laws and regulations where the consequence of non compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the Company's license to operate. We identified the following areas as those most likely to have such an effect: health and safety including data protection laws, employment law and ABTA, CAA, IATA compliance recognising the nature of the Company’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
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. 
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.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Page 11

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL SERVICE LIMITED (CONTINUED)




Use of our report
 

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





Yasin Khandwalla FCCA (Senior statutory auditor)
  
for and on behalf of
Xeinadin Audit Limited
 
Chartered Accountants & Statutory Auditors
  
8th Floor, Becket House
36 Old Jewry
London
EC2R 8DD

21 June 2024
Page 12

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

Gross turnover
     5 
314,759,462
234,619,285

  



Turnover
 4 
80,727,017
56,868,716

Cost of sales
  
(47,493,769)
(32,710,640)

Gross profit
  
33,233,248
24,158,076

Administrative expenses
  
(35,849,731)
(29,864,549)

Other operating income
 6 
4,320,242
3,550,658

Operating profit/(loss)
 7 
1,703,759
(2,155,815)

Exceptional item
 11 
-
5,500,000

Interest receivable and similar income
 12 
483,854
62,806

Interest payable and similar expenses
  
(63)
(5)

Profit before tax
  
2,187,550
3,406,986

Tax on profit
 13 
2,588,324
688,771

Profit for the financial year
  
4,775,874
4,095,757

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

The notes on pages 17 to 37 form part of these financial statements.
Page 13

 
BARRHEAD TRAVEL SERVICE LIMITED
REGISTERED NUMBER: SC057208

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 15 
2,278,824
2,471,209

Investments
 16 
100,103
100,103

  
2,378,927
2,571,312

Current assets
  

Debtors
 17 
14,803,247
10,940,211

Cash at bank and in hand
  
25,768,580
18,377,356

  
40,571,827
29,317,567

Creditors: amounts falling due within one year
 18 
(44,240,579)
(37,954,578)

Net current liabilities
  
 
 
(3,668,752)
 
 
(8,637,011)

Total assets less current liabilities
  
(1,289,825)
(6,065,699)

Creditors: amounts falling due after more than one year
 19 
(6,055,000)
(6,055,000)

  

Net liabilities
  
(7,344,825)
(12,120,699)


Capital and reserves
  

Called up share capital 
 21 
200,000
200,000

Revaluation reserve
 22 
95,712
97,018

Other reserve
 22 
179,000
179,000

Profit and loss account
 22 
(7,819,537)
(12,596,717)

  
(7,344,825)
(12,120,699)


The financial statements were approved and authorised for issue by the board and were signed  on 21 June 2024.on its behalf by:




................................................
J Dobson
Director

The notes on pages 17 to 37 form part of these financial statements.
Page 14

 
BARRHEAD TRAVEL SERVICE LIMITED
 

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


Called up share capital
Revaluation reserve
Other reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2023
200,000
97,018
179,000
(12,596,717)
(12,120,699)


Comprehensive income for the year

Profit for the year
-
-
-
4,775,874
4,775,874
Total comprehensive income for the year
-
-
-
4,775,874
4,775,874

Transfer to/from profit and loss account
-
(1,306)
-
1,306
-


At 31 December 2023
200,000
95,712
179,000
(7,819,537)
(7,344,825)


The notes on pages 17 to 37 form part of these financial statements.
Page 15

 
BARRHEAD TRAVEL SERVICE LIMITED
 

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


Called up share capital
Revaluation reserve
Other reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2022
200,000
98,324
179,000
(16,693,780)
(16,216,456)


Comprehensive income for the year

Profit for the year
-
-
-
4,095,757
4,095,757
Total comprehensive income for the year
-
-
-
4,095,757
4,095,757

Transfer to/from profit and loss account
-
(1,306)
-
1,306
-


At 31 December 2022
200,000
97,018
179,000
(12,596,717)
(12,120,699)


The notes on pages 17 to 37 form part of these financial statements.

Page 16

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Barrhead Travel Service Limited is a private company limited by shares and incorporated, domiciled and registered in the UK. The Company number is SC057208. The registered address can be found on the company information page.
The main activity of the Company is defined as holiday travel specialist.

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 company has taken advantage of the requirements of Section 7 Statement of Cash Flows. This 
information is included in the consolidated financial statements of Barrhead Travel 2007 Limited which can be found at Libertas House, 5th Floor, 39 St. Vincent Street, Glasgow G1 2ER.

 
2.2

Exemption from preparing consolidated financial statements

The company is a parent company and is also a subsidiary which is included in the consolidated financial statements of its parent undertaking, Barrhead Travel 2007 Limited. The financial statements of Barrhead Travel 2007 Limited, which is registered in Scotland, are available to the public from Companies House,  4th Floor, Edinburgh Quay2, 139 Fountainbridge, Edinburgh EH3 9FF. Accordingly, the company is exempt from the requirement to prepare consolidated accounts under Section 400 of the Companies Act 2006.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis, which the directors believe to be appropriate for the following reasons:  
At the year end, the Company had net liabilities of £7.3 million and net current liabilities of £3.7 million. It manages its day to day and medium-term funding requirements through cash balances and loans from its parent or other group undertakings.
The directors have prepared projected cash flow information for the eighteen months from the date of approval of these financial statements. These forecasts reflect the Company will have sufficient funds to meet its liabilities as they fall due with the existing bookings to date and expected trading activity in 2024.
Those forecasts do not require nor include any additional financial support from Travel Leaders Group, LLC, however it has indicated its intentions to continue to support the business and make available such funds as are needed by the company for the period covered by the forecasts.
Based on the above indications, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

Page 17

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

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

Page 18

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Revenue

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, and where applicable value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Where the Company acts as agent, turnover represents commission earned on the collection of receipts in respect of passenger fares and holiday tours during the year. Turnover excludes VAT. 
Where the Company operates as the principal tour operator, turnover represents the gross value of the holiday sold including air tickets, hotel bookings and other related services. The full cost of such holidays including any related value added tax, is included within cost of sales.
Turnover is recognised at the date of departure of the holiday.
Commissions earned from the sale of foreign currency is included in turnover.

  
2.6

Fee income

The Company contracted to deliver call services to NHS Scotland for its Test and Protect programme during the COVID-19 pandemic. Fees from the provision of these services have been recognised in other income as and when invoiced.

Page 19

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

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.

Temporary rent concessions occurring as a direct consequence of the COVID-19 pandemic have been recognised on a straight-line basis over the periods that the change in lease payments is intended to compensate. This is conditional on:

the change in lease payments resulting in revised consideration for the lease that is less than the consideration for the lease immediately preceding the change;
any reduction in lease payments affecting only payments originally due on or before 30 June 2022;
there being no significant change to other terms and conditions of the lease.

 
2.8

Government grants

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

 
2.9

Interest income

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

 
2.10

Finance costs

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

 
2.11

Pensions

Defined contribution pension plan

The Company operates defined contribution plans 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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 20

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

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

The current income tax charge is  calculated  on  the  basis  of  tax  rates  and  laws that  have been enacted or substantively enacted by the reporting date in the United Kingdom. 

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; 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 reporting date.

 
2.13

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Websites
-
20%
on cost

 
2.14

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.

Page 21

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Tangible fixed assets (continued)

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:

Freehold property
-
2%
on cost/deemed cost
Long leasehold property
-
over the period of the lease
Fixtures and fittings
-
10%
on cost
Computer equipment
-
20%
on cost

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 at the date of disposal
         with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

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.

 
2.17

Cash and cash equivalents

Cash is represented by cash balances, cash in hand, cash in trust accounts 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.

 
2.18

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.

Page 22

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.19

Provisions for liabilities

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

 
2.20

Financial instruments

The Company  only  enters into basic financial instrument transactions that result in the recognition of financial  assets  and  liabilities,  for  example,  trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including  loans and other accounts  receivable and payable, are initially measured at the present value of the future cash  flows  and  subsequently  at  amortised  cost  using  the  effective  interest  method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, such as  the payment  of  a trade debt  deferred  beyond  normal  business terms  or  in case of an out-right short-term loan that is not at  market  rate, the  financial  asset  or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

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

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

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

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

Page 23

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates. Estimates and assumptions are reviewed on an ongoing basis and revisions to estimates are recognised in the period in which the estimate is revised and in any future periods affected.
The directors did not consider there were any areas of significant estimation in preparing these financial statements.


4.


Turnover

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


2023
2022
£
£

Travel agency commissions
28,333,181
20,892,005

Tour operator sales
51,868,191
35,740,486

Foreign currency commissions
525,645
236,225

80,727,017
56,868,716



5.

Gross turnover

Gross turnover is included on the profit and loss account as a non-statutory disclosure to aid the user of the financial statements. This represents the gross value of sales by the Company, as reported to ABTA.
Gross turnover reconciles to statutory turnover as follows:

2023
2022
        £
        £
Gross Turnover

314,759,462

234,619,285
 
Less: Travel agency cost of sales

(234,032,445)

(177,750,569)
 

80,727,017

56,868,716
 

Page 24

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Other operating income

2023
2022
£
£

Management fee income
4,302,342
2,332,547

Grant income from U.K.and Scottish Government business support schemes in response to COVID-19 pandemic
-
921,797

Other contract fee receivable
-
230,768

Sundry income
17,900
65,546

4,320,242
3,550,658



7.


Operating profit/(loss)

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

2023
2022
£
£

Other operating leases - property
2,692,341
2,787,381

Depreciation of tangible fixed assets
770,433
1,148,890

Amortisation of intangible fixed assets
-
18,032

Exchange differences
4,264
(19,273)

COVID-19 pandemic related temporary lease payment concessions-property
-
(167,116)


8.


Auditors' remuneration

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


2023
2022
£
£

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

Audit of these financial statements
102,500
92,000

Non-audit services
53,500
41,000

Page 25

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Employees

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


2023
2022
£
£

Wages and salaries
15,152,440
11,971,378

Social security costs
1,474,560
1,166,711

Cost of defined contribution scheme
309,653
236,747

16,936,653
13,374,836


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


        2023
        2022
            No.
            No.







Sales
349
367



Administrative and management
180
112

529
479


10.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
511,998
305,647

Company contributions to defined contribution pension schemes
27,838
13,832

539,836
319,479


The highest paid director received remuneration of £274,206 (2022 - £156,878).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of highest paid director amounted to £4,404 (2022 - £4,332).


11.


Exceptional item

2023
2022
£
£

Waiver of loan payable to parent undertaking
-
5,500,000

-
5,500,000






Page 26

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Interest receivable

2023
2022
£
£


Bank and other interest receivable
483,854
62,806

483,854
62,806


13.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
(280,684)

Adjustments in respect of previous periods
-
77,867


-
(202,817)


Total current tax
-
(202,817)

Deferred tax


Origination and reversal of timing differences
(109,696)
114,792

Capital gains/(losses)
9,008
24,254

Losses and other deductions
(2,487,636)
(625,000)

Total deferred tax
(2,588,324)
(485,954)


Taxation (credit)/charge on profit/loss on ordinary activities
(2,588,324)
(688,771)
Page 27

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
13.Taxation (continued)


Factors affecting tax charge for the year

The standard rate of Corporation Tax in the UK is 25%. The effective tax rate may differ mainly due to non-qualifying depreciation, disallowable acquisition costs, non-deductible share based payment costs, other non-deductible items in the UK, prior year adjustments and overseas tax rate.
The tax assessed for the year is lower than
 (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,187,550
3,406,986


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
514,524
647,327

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,001
999

Fixed asset differences
62,808
61,033

Income not taxable for tax purposes
(4,210)
(1,057,454)

Adjustment from previous periods
-
77,867

Effect of change in tax rate and other deductions
(15,959)
53,126

Movement in deferred tax not recognised
(3,226,633)
(525,264)

Group relief surrended
78,145
334,279

Receipt for group relief
-
(280,684)

Total tax (credit)/charge for the year
(2,588,324)
(688,771)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 28

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Intangible assets




Websites

£



Cost


At 1 January 2023
301,954



At 31 December 2023

301,954



Amortisation


At 1 January 2023
301,954



At 31 December 2023

301,954



Net book value



At 31 December 2023
-



At 31 December 2022
-



Page 29

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets





Freehold property
Long leasehold property
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
915,413
3,099,641
1,493,185
1,022,218
6,530,457


Additions
-
377,268
57,558
143,222
578,048


Disposals
-
(291,793)
(960,287)
(223,810)
(1,475,890)



At 31 December 2023

915,413
3,185,116
590,456
941,630
5,632,615



Depreciation


At 1 January 2023
146,279
1,948,973
1,260,401
703,595
4,059,248


Charge for the year on owned assets
18,308
458,843
112,363
180,919
770,433


Disposals
-
(291,793)
(960,287)
(223,810)
(1,475,890)



At 31 December 2023

164,587
2,116,023
412,477
660,704
3,353,791



Net book value



At 31 December 2023
750,826
1,069,093
177,979
280,926
2,278,824



At 31 December 2022
769,134
1,150,668
232,784
318,623
2,471,209



The historical cost and accumulated depreciation of freehold property are as follows:

2023
2022
£
£



Cost
828,356
828,356

Accumulated depreciation
(215,284)
(198,716)

Net book value
613,072
629,640

Page 30

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Fixed asset investments





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 January 2023
100,000
103
100,103



At 31 December 2023
100,000
103
100,103






Net book value



At 31 December 2023
100,000
103
100,103



At 31 December 2022
100,000
103
100,103


Subsidiary undertaking


The following is a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Travel Transportation Services Limited
Libertas House, 5th Floor, 39 St. Vincent Street, Glasgow G1 2ER
Passenger transport provider
100,000 Ordinary shares
100%

The share capital as at 31 December 2023 for the subsidiary undertaking was as follows:

Name
Aggregate of share capital and reserves

Travel Transportation Services Limited
100,000

Associated companies
Company             Ownership
Greig Avinou Travel Limited           26%
Craig Carroll Travel Limited           26%
Leona Mackie Travel Limited           25%
A&M Holidays Limited            26%
All the associated companies above operate as Retail Travel Agents and all are registered at Libertas House, 5th Floor, 39 St. Vincent Street, Glasgow G1 2ER. The accounting reference date for all of the associated companies is 31 December.

Page 31

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Debtors

2023
2022
£
£


Trade debtors
1,529,172
1,678,634

Amounts owed by group undertakings
-
211,700

Prepayments and accrued income
9,317,340
7,756,842

Deferred taxation (note 20)
3,017,165
485,954

Other debtors
939,570
807,081

14,803,247
10,940,211



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
5,063,644
8,620,532

Net customer deposits
22,884,616
15,481,189

Amounts owed to group undertakings
880,565
1,488,417

Other taxation and social security
357,371
330,473

VAT payable
499,304
152,804

Accruals and deferred income
11,293,255
9,162,027

Other creditors
3,261,824
2,719,136

44,240,579
37,954,578



19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Amounts owed to group undertaking
6,055,000
6,055,000

6,055,000
6,055,000


Page 32

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Deferred taxation




2023
2022


£

£






At beginning of year
485,954
-


Charged to profit or loss
2,531,211
485,954



At end of year
3,017,165
485,954

The deferred tax asset is made up as follows:

2023
2022
£
£


Fixed assets timing differences
(97,233)
(137,511)

Capital gains/ (Losses)
(33,262)
(24,254)

Short term timing differences
35,024
22,719

Losses and other deductions
3,112,636
625,000

3,017,165
485,954


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100,000 (2022 - 100,000) Ordinary "A" shares of £1.00 each
100,000
100,000
100,000 (2022 - 100,000) Ordinary "B" shares of £1.00 each
100,000
100,000

200,000

200,000

Each class of share ranks pari passu in all respects save that the following voting rights attach to the respective class of shares:
(i) At a General Meeting of the Company, the holders of "A" shares shall be entitled to five votes in respect of every "A" share held;
(ii) At a General Meeting of the Company, the holders of "B" shares shall be entitled to two votes in respect of every "B" share held.


Page 33

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Reserves

Revaluation reserve

The revaluation reserve records the surplus arising on the valuation of the property held for own use by the Company.

Other reserve

Other reserve of £179k (2022: £179k) arose from the transfer to reserves of outstanding balances on certain loans that were unconditionally waived in 1995.

Profit and loss account

Includes all current and prior year retained profit and losses.


23.


External regulatory requirements and contingent liabilities

The Company holds an Air Travel Organiser's Licence ("ATOL") issued by the Civil Aviation Authority ("CAA") and is an accredited agent of the International Air Transport Association ("IATA").
In order to offer air inclusive package holidays, the company requires the annual renewal by the CAA of its ATOL license. The CAA grants this license on the basis of the company operating a Trust account and meeting agreed financial criteria and renews the license in September (effective 1st October) each year. The company has complied with these requirements in previous year and does not envisage any issues in the granting of a new license from October 2024.
Included within cash at bank is £12.5m (2022: £9.7m) held in trust by the Air Travel Trustees ("ATT") as a condition of the Company continuing to hold an ATOL licence. Under the Trust Deed the Company pays into this trust account any receipts relating to holiday bookings that fall under the Company's ATOL protection obligations, which will be released by ATT upon supplier performance or reimbursed when relevant suppliers are paid.
The company is a member of ABTA and requires this membership to protect consumer cash for retail bookings through a scheme of bonding.
Travel & General Insurance Services Limited ("TGIS") holds a deposit of £Nil (2022: £937,000) in connection with an insurance bond it issued to ABTA to cover any contingent liabilities of the Company to ABTA. The amount of the bond is £2.4m (2022: £2.3m) and expires at the end of March 2025. Accelerant Insurance Europe SA ("Accelerant") holds counter indemnities from Barrhead Travel 2007 Limited and all of its subsidiary undertakings, including the Company.
Included within other debtors is an amount of £150k (2022: £150k) which represents a deposit held with IATA. The Company complies with the financial criteria requirements of IATA.
There are no other material contingent liabilities.

Page 34

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Pension commitments

The Company operates defined contribution schemes. The assets of the schemes are held separately from those of the Company in independently administered funds. The pension costs charge represents contributions payable by the Company to these funds and amounted to £309,653 (2022: £236,747).
Contributions totalling £62,921 (2022: £21,603) were payable to the fund at the balance sheet date and are included in creditors.


25.


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
2,490,078
2,938,070

Later than 1 year and not later than 5 years
5,290,181
4,024,893

Later than 5 years
417,396
87,621

8,197,655
7,050,584


26.


Financial guarantees and indemnities

Barclays Bank PLC holds a fixed charge over a deposit of £2.5m (2022: £2.5m) which is included in cash at bank. Subsequent to the year end this was reduced to £1.5m.
Lloyds Bank plc holds cross company guarantees amongst the Company, its parent company Barrhead Travel 2007 Limited and a fellow subsidiary, The Holiday Specialists Limited.

Page 35

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

27.


Related party transactions

The Company has taken advantage of exemption under the terms of FRS102 33.1A not to disclose related party transactions with the wholly owned subsidiaries within the Barrhead Travel 2007 Limited group of companies.
During the year the company received/(paid) net management fees due from, or to,the following companies:


2023
2022
£
£

Greig Avinou Travel Limited
290,176
226,235
Craig Carroll Travel Limited
198,803
154,448
Leona Mackie Travel Limited
111,628
64,128
A&M Holidays Limited
237,564
155,574
Travel Leaders Group, LLC
(382,312)
-

At the year end the Company owed £277,963 (2022: £249,582) to Greig Avinou Travel Limited.
At the year end the Company owed £4,000 (2022: £6,075 owed from) to Craig Carroll Travel Limited.
At the year end the Company owed £2,000 (2022: £29,080 owed from) to Leona Mackie Travel Limited.
At the year end the Company owed £5,000 (2022: £24,763 owed from) to A&M Holidays Limited.
At the year end the Company owed the following amounts to companies within the Travel Leaders Group of companies:
   -   Global Travel Collection UK, Limited - £6,055,000 (2022: £7,064,857)
   -   Y.E.S. (Your Event Solutions) Limited - £396,904 (2022: £429,773)
   -   Travel Leaders Group, LLC - £386,765 (2022: £Nil)
At the year end the Company was owed the following amount by a company within the Travel Leaders Group of companies:
 
   -   BBTF Travel Limited owed the Company £-Nil (2022: £40,310)


28.


Post balance sheet events

The directors have concluded that no material events have occurred since the date of approval of these financial statements that would affect the financial statements of the Company.

Page 36

 
BARRHEAD TRAVEL SERVICE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

29.


Controlling party

Internova Holdings, LLC is regarded as the ultimate parent company of Barrhead Travel Service Limited. 
The Company is a 100% subsidiary of Barrhead Travel 2007 Limited (incorporated in Scotland), which is a 100% subsidiary of Global Travel Collection, LLC (incorporated in the USA).
Global Travel Collection, LLC is a 100% subsidiary of Tzell Holdings, LLC (incorporated in the USA), which is a 100% subsidiary of Travel Leaders Group, LLC (incorporated in the USA).
Travel Leaders Group, LLC is a 100% subsidiary of Travel Leaders Group Holdings, LLC (incorporated in the USA), which is a 100% subsidiary of Internova Holdings, LLC.

 
Page 37