Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
COMPANY INFORMATION
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BARRHEAD TRAVEL 2007 LIMITED
CONTENTS
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BARRHEAD TRAVEL 2007 LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their strategic report of the company and the group for the year ended 31 December 2023.
The principal activity of the Group is that of a tour operator and travel agent.
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.
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BARRHEAD TRAVEL 2007 LIMITED
GROUP 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.
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.
The directors consider the following to be the key performance indicators.
*Reconciliation of Gross Turnover to Reported Turnover included in Note 5 on page 32 of these financial statements
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BARRHEAD TRAVEL 2007 LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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 47, 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 and signed on its behalf by:
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BARRHEAD TRAVEL 2007 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.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £4,324,278 (2022 - loss £1,348,635).
The directors have not proposed the payment of a final dividend (2022: £Nil).
The directors who served during the year are:
The future developments for the Group are covered in the Business Review section of the Strategic Report.
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BARRHEAD TRAVEL 2007 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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 group does not engage in research and development activities. The group does however invest in developing systems that support the improved efficiency in the business’ key operations. Branches outside the UK The group does not have any branches outside the UK as defined in section 1046(3) of the Companies Act 2006.
The driving force behind the Barrhead Travel Group’s success 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”.
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BARRHEAD TRAVEL 2007 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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 Holding LLC. The Board will continue to keep engagement methods under review to ensure they remain effective.
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BARRHEAD TRAVEL 2007 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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 CO2e 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.
There have been no significant events affecting the Group since the year end.
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BARRHEAD TRAVEL 2007 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The auditors, Xeinadin Audit Limited, will 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:
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BARRHEAD TRAVEL 2007 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL 2007 LIMITED
We have audited the financial statements of BARRHEAD TRAVEL 2007 LIMITED (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Group Statement of comprehensive income, the Group and Company Statements of financial position, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent 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.
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BARRHEAD TRAVEL 2007 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL 2007 LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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BARRHEAD TRAVEL 2007 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL 2007 LIMITED (CONTINUED)
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BARRHEAD TRAVEL 2007 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL 2007 LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙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 Group 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 Group 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 Group'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 Group’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.
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BARRHEAD TRAVEL 2007 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL 2007 LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
8th Floor
Becket House
36 Old Jewry
EC2R 8DD
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BARRHEAD TRAVEL 2007 LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
REGISTERED NUMBER: SC332161
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on
The notes on pages 24 to 47 form part of these financial statements.
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BARRHEAD TRAVEL 2007 LIMITED
REGISTERED NUMBER: SC332161
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 24 to 47 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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BARRHEAD TRAVEL 2007 LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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BARRHEAD TRAVEL 2007 LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Barrhead Travel 2007 Limited is a private company limited by shares and incorporated, domiciled and registered in the UK. The company number is SC332161. The registered address can be found on the company information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The consolidated financial statements present the results of the Company and its subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the acquistion method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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 Group had net liabilities of £7 million and net current liabilities of £3.5 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 Group 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 group 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.
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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 Group 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 Group 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.
The Group 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.
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.
Defined contribution pension plan
The Group operates defined contribution plans for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
enacted or substantively enacted by the reporting date in the United Kingdom.
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Goodwill
Other intangible assets
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:
The useful life of goodwill is estimated up to maximum of 10 years.
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:
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.
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position. The directors did not consider there were any areas of significant estimation in preparing these financial statements.
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.Taxation (continued)
There were no factors that may affect future tax charges.
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
20.Share capital (continued)
Revaluation reserve
Capital contribution
Other reserve
Profit and loss account
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group's subsidiary Barrhead Travel Service Limited (''BTSL'') 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, BTSL 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. BTSL 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 BTSL 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 BTSL's ATOL protection obligations, which will be released by ATT upon supplier performance or reimbursed when relevant suppliers are paid. BTSL 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 BTSL 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. BTSL complies with the financial criteria requirements of IATA. There are no other material contingent liabilities.
The Group operates defined contribution schemes. The assets of the schemes are held separately from those of the Group in independently administered funds. The pension costs charge represents contributions payable by the Group to these funds and amounted to £315,187 (2022: £246,017).
Contributions totalling £62,921 (2022: £21,324) were payable to the fund at the balance sheet date and are included in creditors.
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Barclays Bank PLC holds a fixed charge over a deposit of £2.5m (2022: £2.5m) which is included in cash at bank of the subsidiary Barrhead Travel Limited. Subsequent to the year end this was reduced to £1.5m.
Lloyds Bank plc holds cross company guarantees from the Company, its subsidiaries Barrhead Travel Service Limited and The Holiday Specialists Limited.
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARRHEAD TRAVEL 2007 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Internova Holdings, LLC is regarded as the ultimate parent company of Barrhead Tavel 2007 Limited.
The Company 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.
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