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Registered number: 03931005









SUNSHINE CRUISE HOLIDAYS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
COMPANY INFORMATION


Directors
A Ghasemi 
B D Kelly 




Company secretary
Y D Banwo



Registered number
03931005



Registered office
Office 310
Third Floor, Manchester Digital World

1 Lowry Plaza, The Quays

Salford

M50 3UB




Independent auditors
White Hart Associates (London) Limited
Chartered Accountants and Statutory Auditors

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA





 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 10
Consolidated Statement of Comprehensive Income
11
Consolidated Statement of Financial Position
12
Company Statement of Financial Position
13
Consolidated Statement of Changes in Equity
14
Company Statement of Changes in Equity
15
Consolidated Statement of Cash Flows
16
Consolidated Analysis of Net Debt
17
Notes to the Financial Statements
18 - 41


 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report of the Company and the Group for the year ended 31 December 2023.

Business review
 
The Group is required by the Companies Act to set out in this report, a fair review of the business of the Group during the financial year ended 31 December 2023, and its position at the end of the year along with a description of the principal risks and uncertainties facing the Group. This review is prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed, and the business review should not be relied upon by any other party or for any other purpose.
The directors consider the results to be satisfactory, especially given the ongoing cost of living crisis in the UK. However, consumer demand remained high despite this, leading to increased bookings and turnover for the year. As a result, the Group is expecting significant growth in future years due to increased capacity.
The key performance indicators used by the directors to monitor the progress of the Group are set out below:-

2023
2022
£
£
Key performance indicators
Gross Retail Turnover ("GRT")

76,108,494

56,635,510

Gross profit

5,837,892

4,299,233

Gross profit as a percentage of GRT

7.67%

7.59%

Operating loss

(1,309,545)

(1,081,101)

Operating loss as a percentage of GRT

(1.72)%

(1.91)%

Loss before taxation

(1,547,982)

(1,310,220)

Loss before taxation as a percentage of GRT

(2.03)%

(2.31)%


Page 1

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

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

Principal risks and uncertainties
 
The management of the business and the execution of the Group's strategy are subject to a number of risks. The key business risks and uncertainties affecting the Group are considered below.
- Economic uncertainty - The demand for cruises is affected by local economic conditions. During 2023, the ongoing cost of living crisis has affected the cost of holiday arrangements and resulted in consumers having less discretionary spending available for travel. However, this has been compensated by the high level of pent up demand for cruise holidays during the year. This, combined with consumer unease in relation to the current economic environment, has meant that Company’s management and the directors have continued to review the Group’s financial position, as well as forecasts, and plan mitigation actions in order to neutralise the potential financial impact on trading performance.
- Regulatory risk - The Group is exposed to various regulators, including the Civil Aviation Authority ("CAA") which issues an Air Travel Organisers Licence ("ATOL") which is required in order for the Group to operate. This license is renewed in September each year, with the next renewal being in September 2024, and is subject to assessments of fitness and financial criteria, the framework of which is available on the CAA's website (www.caa.co.uk). The Group operates a trust account to provide full consumer protection for UK ATOL bookings, which is independently and professionally managed by PT Trustees Limited ("PTT").
- Supplier failure - The Group is reliant on its suppliers to ensure all elements of the holidays it sells are provided to its customers where the Group has acted as a tour organiser. In the event that a supplier is unable to fill its contractual obligations the Group is liable to provide a suitable alternative or a full refund to the customer. The Group mitigates against this risk by spreading its business over a number of selected suppliers.
- Competition - The Group operates in a competitive market particularly around price and product availability. This results in downward pressure on ticket prices and margins. This risk is mitigated by seeking out opportunities to differentiate its product offering by packaging cruises with other holiday elements.
The nature of the business exposes the Group to various commercial risks which may affect the trading performance of the Group. These include:
- acts of terrorism, particularly in key tourist destinations
- epidemics in key tourist destinations which threaten the health of tourists
- wars or other international uncertainty which affects air travel
- natural disasters in key tourist destinations
- weather conditions, both in the UK and key tourist destinations
- changes in customer behaviour and preferences
- increase in government taxes
These factors may affect the Group by causing potential customers to cancel or postpone travel plans, reducing the earnings potential of the Group. The Group seeks to minimise such risks by operating a flexible limited commitment business model with the ability to shift capacity amongst a variety of destinations where necessary.

Page 2

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

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

Financial Instrument risk
 
The Group's operations expose it to limited financial risks that include liquidity risk, price risk and foreign exchange rate risk. Given the size of the Group, the responsibility of monitoring financial risk management is managed by the board of directors.
- Liquidity risk - The nature of the Group's tour operator business is that expenditure on sales and marketing activities to generate bookings takes place many months prior to the date of departure of the holiday, at which point the Group earns its revenue, and also that the pattern of bookings and departures varies throughout the year. The Group does not borrow externally, and maintains a mixture of cash deposits and inter-company trading balances to ensure that it has sufficient funds available for operations.
- Price risk - The Group is exposed to price risk through competitor activities in the cruise markets in which the Group operates. Competitor prices are monitored frequently and appropriate remedial action is taken. Where possible the Group seeks to differentiate its product offering in order to avoid direct price competition.
- Foreign exchange risk - The Group is exposed to foreign exchange rate risk when it purchases overseas holiday services in currencies other than British Pounds. Monetary assets and liabilities are translated at the exchange rate prevailing at the statement of financial position date. All exchange gains and losses so arising are taken to the income statement. The Group operates a policy of hedge accounting and, accordingly, bears little risk associated with such foreign exchange movements.


This report was approved by the board on 9 July 2024 and signed on its behalf.



B D Kelly
Director

Page 3

 
SUNSHINE CRUISE HOLIDAYS 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 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 2006They 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 directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Principal activity

The principal activity of the Group in the year under review was that of a travel provider, primarily selling cruise holidays, as both travel agent and tour organiser.

Results and dividends

The loss for the year, after taxation, amounted to £1,523,376 (2022 - loss £1,248,796).

The total distribution of dividends for the year ended 31 December 2023 was £Nil (2022: £Nil). The directors do not recomend a final dividend.

Page 4

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Director

The director who served during the year was:

A Ghasemi 
B D Kelly 

Future developments

The Group constantly reviews opportunities to expand profitable distribution of cruise holidays, including new overseas markets, marketing channels, partnerships, or products. Such opportunities are commercially sensitive and will be communicated at the appropriate time.

Matters covered in the Group Strategic Report

The directors have disclosed additional performance data for the Group in the strategic report which is included within this set of financial statements. This includes a review of the performance of the business and the key performance indicators, as well as the main risks faced by the business.

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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end. 
During 2024, the Group will continue to operate as outlined in the principal activity note above. 

Auditors

The auditorsWhite Hart Associates (London) Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 9 July 2024 and signed on its behalf.
 


B D Kelly
Director

Page 5

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED
 

Opinion


We have audited the financial statements of Sunshine Cruise Holidays Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Group Income Statement, the Group Statement of Comprehensive Income, the Group and parent Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and parent Company 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 Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's loss 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 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.


Page 6

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)


Material uncertainty related to going concern


In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 2.3 to the financial statements concerning the Group's ability to continue as a going concern.
As explained in note 2.3, the recovery period following the pandemic has been economically challenging for the cruise industry and the Group, despite strong pent up consumer demand to recommence travelling. The cost-of-living crisis, rising costs and inflation have continued to affect the Group’s immediate and projected trading, profitability and liquidity. 
These economic impacts on the cruise industry and the losses sustained by the Group could jeopardise the Group's ability to continue as a going concern in the medium term. To mitigate this risk, the ultimate parent company, Dreamlines GmbH, raised financial support from shareholders along with substantial German Government-backed subsidies in previous years, however no such grants were received in 2023 and the parent company recommenced recharging appropriate percentages of shared centralised resources. The parent company has only been recompensed for these cross charges in accordance with the Permitted Payments Schedule (“PPS”) agreed with the Civil Aviation Authority (“CAA”), which maintains the required liquidity coverage for the ring-fenced regulated Group. The Group is subject to a ring-fencing arrangement with the CAA, meaning that any funds that flow out of the Group to other members of the group, including the parent company, must be part of the PPS agreed in advance or with the acquiescence of the CAA prior to payment.
Dreamlines GmbH has provided financial support to the Group throughout the challenges faced in recent years and has confirmed that no further cash will exit the ring-fenced Group until after 31 December 2024 and then subsequently only providing there is no breach of the ring-fencing agreement. In the period from 1 January 2024 to the date of signing this report, cross charged overheads totalling £1.2m have been paid to Dreamlines GmbH. No further recharged costs will be paid before the end of the 2024 financial year. Dreamlines GmbH have signed a letter of comfort reflecting this and are committed to providing support to the Group as needed for at least the next 12 months. The financial statements have therefore been prepared on a going concern basis.  
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 evaluation of the directors' assessment of the Group's ability to continue to adopt the going concern basis of accounting included obtaining and testing the Group's budgets and forecasts for the years ended 31 December 2024 and 31 December 2025, including reviewing the key assumptions behind these from the latest available information, both internal and external; reviewing the continuing steps taken by management to manage liquidity, control current costs, utilise government assistance and raise further finance, reviewing the Group's continued compliance and correspondence with its key regulator, the Civil Aviation Authority (CAA) and assessing any threat to the continuation of its Air Travel Organisers Licence (ATOL); reviewing the minutes of the regular Board meetings and performing an overall assessment of the Group's internal finance function and controls.


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





Page 7

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


We have nothing to report in this regard.


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 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.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


Page 8

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)


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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


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 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:

- We exercise professional judgment and maintain professional scepticism throughout the audit;
- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control;
- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control;
- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;
- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
- We review the scope of the Group's compliance with The Package and Linked Travel Arrangements Regulations 2018 ("PTRs") and sample test relevant documentation to assess this and the effectiveness of its control environment;
- We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements;
 
Page 9

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements (continued)
- We review the Group's relationships with related parties and other group companies, identifying and disclosing transactions during the year and balances at year-end with such parties;
- We conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.


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.


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.





Ms N A Spoor FCA FCCA (Senior Statutory Auditor)
  
for and on behalf of
White Hart Associates (London) Limited
 
Chartered Accountants and Statutory Auditors
  
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA

9 July 2024
Page 10

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£


Gross Retail Turnover ("GRT")
76,108,494
56,635,510

  

Turnover
 4 
47,569,231
26,246,080

Cost of sales
  
(41,731,339)
(21,946,847)

Gross profit
  
5,837,892
4,299,233

Administrative expenses
  
(7,218,985)
(5,088,163)

Other operating income
 5 
71,548
(292,171)

Operating loss
 6 
(1,309,545)
(1,081,101)

Interest receivable and similar income
 10 
99,965
17,384

Interest payable and similar expenses
 11 
(338,402)
(246,503)

Loss before taxation
  
(1,547,982)
(1,310,220)

Tax on loss
 12 
24,606
61,424

Loss for the financial year
  
(1,523,376)
(1,248,796)

  

Currency translation differences
  
18,023
(4,321)

Movement in unrealised foreign exchange reserve
  
(71,067)
46,019

Fair value gain/(loss) on cash flow hedges
  
32,104
(9,827)

Other comprehensive income for the year
  
(20,940)
31,871

Total comprehensive income for the year
  
(1,544,316)
(1,216,925)

(Loss) for the year attributable to:
  

Owners of the parent Company
  
(1,523,376)
(1,248,796)

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
(1,544,316)
(1,216,925)

The notes on pages 18 to 41 form part of these financial statements.

Page 11

 
SUNSHINE CRUISE HOLIDAYS LIMITED
REGISTERED NUMBER: 03931005

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
47,792
63,292

Tangible assets
 14 
71,411
62,766

  
119,203
126,058

Current assets
  

Debtors: amounts falling due within one year
 16 
32,088,187
26,259,256

Cash at bank and in hand
 17 
4,413,444
4,714,745

  
36,501,631
30,974,001

Creditors: amounts falling due within one year
 18 
(35,454,598)
(29,286,139)

Net current assets
  
 
 
1,047,033
 
 
1,687,862

Total assets less current liabilities
  
1,166,236
1,813,920

Creditors: amounts falling due after more than one year
 19 
(6,429,134)
(5,532,502)

Provisions for liabilities
  

Net liabilities
  
(5,262,898)
(3,718,582)


Capital and reserves
  

Called up share capital 
 21 
85,000
85,000

Share premium account
 22 
1,453,227
1,453,227

Foreign exchange reserve
 22 
67,133
138,200

Other reserves
 22 
24,117
(7,987)

Profit and loss account
 22 
(6,892,375)
(5,387,022)

Equity attributable to owners of the parent Company
  
(5,262,898)
(3,718,582)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 July 2024.



B D Kelly
Director

The notes on pages 18 to 41 form part of these financial statements.

Page 12

 
SUNSHINE CRUISE HOLIDAYS LIMITED
REGISTERED NUMBER: 03931005

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
47,792
63,292

Tangible assets
 14 
68,379
53,982

Investments
 15 
1,533,503
1,533,503

  
1,649,674
1,650,777

Current assets
  

Debtors: amounts falling due within one year
 16 
29,585,706
24,395,081

Cash at bank and in hand
 17 
1,618,738
2,987,171

  
31,204,444
27,382,252

Creditors: amounts falling due within one year
 18 
(30,151,604)
(25,271,059)

Net current assets
  
 
 
1,052,840
 
 
2,111,193

Total assets less current liabilities
  
2,702,514
3,761,970

  

Creditors: amounts falling due after more than one year
 19 
(7,646,903)
(7,222,737)

  

Net liabilities
  
(4,944,389)
(3,460,767)


Capital and reserves
  

Called up share capital 
 21 
85,000
85,000

Share premium account
 22 
1,453,227
1,453,227

Other reserves
 22 
24,117
(7,987)

Profit and loss account
 22 
(6,506,733)
(4,991,007)

  
(4,944,389)
(3,460,767)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 July 2024.



B D Kelly
Director

The notes on pages 18 to 41 form part of these financial statements.

Page 13

 

 
SUNSHINE CRUISE HOLIDAYS LIMITED


 

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



Called up share capital
Share premium account
Foreign exchange reserve
Cash flow hedging reserve
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 January 2022
85,000
1,453,227
92,181
1,840
(4,133,905)
(2,501,657)



Comprehensive income for the year


Loss for the year
-
-
-
-
(1,248,796)
(1,248,796)


Currency translation differences
-
-
-
-
(4,321)
(4,321)


Movement in unrealised foreign exchange reserve
-
-
46,019
-
-
46,019


Fair value gain/(loss) on cash flow hedges
-
-
-
(9,827)
-
(9,827)

Total comprehensive income for the year
-
-
46,019
(9,827)
(1,253,117)
(1,216,925)





At 1 January 2023
85,000
1,453,227
138,200
(7,987)
(5,387,022)
(3,718,582)



Comprehensive income for the year


Loss for the year
-
-
-
-
(1,523,376)
(1,523,376)


Currency translation differences
-
-
-
-
18,023
18,023


Movement in unrealised foreign exchange reserve
-
-
(71,067)
-
-
(71,067)


Fair value gain/(loss) on cash flow hedges
-
-
-
32,104
-
32,104

Total comprehensive income for the year
-
-
(71,067)
32,104
(1,505,353)
(1,544,316)



At 31 December 2023
85,000
1,453,227
67,133
24,117
(6,892,375)
(5,262,898)



Page 14

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

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


Called up share capital
Share premium account
Cash flow hedging reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
85,000
1,453,227
1,840
(3,920,779)
(2,380,712)


Comprehensive income for the year

Loss for the year
-
-
-
(1,070,228)
(1,070,228)

Fair value gain/(loss) on cash flow hedges
-
-
(9,827)
-
(9,827)



At 1 January 2023
85,000
1,453,227
(7,987)
(4,991,007)
(3,460,767)


Comprehensive income for the year

Loss for the year
-
-
-
(1,515,726)
(1,515,726)

Fair value gain/(loss) on cash flow hedges
-
-
32,104
-
32,104


At 31 December 2023
85,000
1,453,227
24,117
(6,506,733)
(4,944,389)


The notes on pages 18 to 41 form part of these financial statements.

Page 15

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(1,523,376)
(1,248,796)

Adjustments for:

Amortisation of intangible assets
15,500
15,500

Depreciation of tangible assets
31,269
29,930

Interest paid
369,447
246,503

Interest received
(99,965)
(17,384)

Taxation charge
(24,606)
(61,424)

(Increase) in debtors
(5,714,221)
(7,606,951)

Increase in creditors
5,834,192
8,130,414

Increase in amounts owed to groups
1,120,277
2,888,096

Net cash generated from operating activities

8,517
2,375,888


Cash flows from investing activities

Purchase of tangible fixed assets
(40,336)
(32,684)

Interest received
99,965
17,384

Net cash from investing activities

59,629
(15,300)

Cash flows from financing activities

Interest paid
(369,447)
(246,503)

Net cash used in financing activities
(369,447)
(246,503)

Net (decrease)/increase in cash and cash equivalents
(301,301)
2,114,085

Cash and cash equivalents at beginning of year
4,714,745
2,600,660

Cash and cash equivalents at the end of year
4,413,444
4,714,745


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,413,444
4,714,745


The notes on pages 18 to 41 form part of these financial statements.

Page 16

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023





At 1 January 2023
Cash flows
Other non-cash changes
At 31 December 2023
£

£

£

£

Cash at bank and in hand

4,714,745

(301,301)

-

4,413,444

Fair value of cash flow hedges

-

-

24,117

24,117


4,714,745
(301,301)
24,117
4,437,561

The notes on pages 18 to 41 form part of these financial statements.

Page 17

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

As disclosed in the Directors' Report, the principal activity of the Company and Group in the year under review was that of a travel provider, primarily selling cruise holidays, as both a travel agent and tour organiser.
The Company is a private company limited by shares and is incorporated in England. The address of the Company's principal place of business and registered office is:
Office 310
Third Floor, Manchester Digital World
1 Lowry Plaza, The Quays
Salford
M50 3UB

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 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 following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own 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 purchase 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.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.

Page 18

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The recovery period following the pandemic has been economically challenging for the cruise industry and the Group, despite strong pent up consumer demand to recommence travelling. The cost-of-living crisis, rising costs and inflation have continued to affect the Group’s trading, profitability and liquidity. These issues, coupled with global economic instability, has necessitated that Group management and the directors continue to constantly review the Group’s financial position, as well as updating forecasts and taking action to mitigate their impact. This work has also enabled them to assess and plan for any potential impact of capital and liquidity requirements required by the Group's travel regulators.
The Group benefits from the support provided by the German parent company, who received significant grants over the last few years to cover fixed centralised costs. However, in 2023 no such grants were received by the parent company and they recommenced recharging appropriate percentages of shared centralised resources. The parent company has only been recompensed for these cross charges in accordance with the Permitted Payments Schedule (“PPS”) agreed with the Civil Aviation Authority (“CAA”), which maintains the required liquidity coverage for the ring-fenced regulated Group. The Group is subject to a ring-fencing arrangement with the CAA, meaning that any funds that flow out of the Group to other members of the group, including the parent company, must be part of the PPS agreed in advance or with the acquiescence of the CAA prior to payment.
Management has reviewed the performance of the Group compared to budgets, which was largely in line with expectations. However, the projected EBITDA was not achieved due to the unanticipated increase in costs for 2023. The budgets, including cash flow and liquidity analyses, have been prepared for the 18 months to 31 December 2025. After this review, the Board of the parent company have considered and confirmed that no further cash will exit the ring-fenced Group until after 31 December 2024 and then subsequently only providing there is no breach of the ring-fencing agreement. In the period from 1 January 2024 to the date of signing this report, cross charged overheads totalling £1.2m have been paid to Dreamlines GmbH. No further recharged costs will be paid before the end of the 2024 financial year. Dreamlines GmbH have signed a letter of comfort reflecting this and are committed to providing support to the Group as needed for at least the next 12 months.
As a result, Group management and the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least the following 12 months from the signing of these financial statements, and will take all reasonable commercial steps, including seeking further financing or support if required, to guarantee the Group’s ability to continue as a going concern.  As a result, and with the Group continuing to receive the full support of its larger parent group, the directors believe that it is still appropriate to apply the going concern basis for the foreseeable future.  

Page 19

 
SUNSHINE CRUISE HOLIDAYS 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 Groups'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 Consolidated 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'.

On consolidation, the results of overseas operations are translated into Pounds Sterling (GBP) at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Turnover

Turnover, which excludes value added tax, represents gross ticket sales where the Group is acting as a tour organiser, net commission income where the Group is acting as a travel agent and amounts invoiced for other services provided. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover relating to sales of holidays where the Group is acting as a tour organiser is recognised on the date of departure of the holiday. Turnover relating to sales of holidays where the Group is acting as a travel agent is recognised on the date of booking of the holiday. Turnover relating to other services is recognised when the service has been provided.
Additionally, the Group's subsidiary in Australia recognises turnover 8 weeks prior to the holiday's departure date, as this is the point that the booking becomes unconditional and no cancellation refunds are offered, in accordance with their terms and conditions.
Trade debtors still represent gross amounts receivable and trade creditors still represent gross amounts payable in respect of travel and holiday arrangements.

Page 20

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.6

Gross retail turnover

In order to provide the user of the financial statements with a measure of the gross value of business, the gross value of all sales transactions is shown as a memorandum item at the top of the statement of comprehensive income.
Gross retail turnover does not represent statutory turnover in accordance with Section 23 of FRS 102.
Where the Group acts as an agent, gross retail turnover represents the price at which products or services have been sold, inclusive of any service fees but excluding commissions paid to third party distributors and any associated sales taxes.
In cases where the Group does act as principal, gross retail turnover represents the price at which products or services are sold, net of any value added taxes.

 
2.7

Operating leases: the Group 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.

 
2.8

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
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.

Page 21

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan 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.

 
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 countries where the Company and the Group operate and generate income.

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

Borrowing costs

All borrowing costs are recognised in the Consolidated Income Statement in the year in which they are incurred. 

Page 22

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

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.

 The estimated useful lives range as follows:

Broadcasting rights
-
over 10 years

 
2.15

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.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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:

Plant and machinery
-
over 4 years
Fixtures and fittings
-
over 4 years

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

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

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

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.

Page 23

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.18

Cash and cash equivalents

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

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

 
2.19

Creditors

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

 
2.20

Provisions for liabilities

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

Page 24

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.21

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 
Page 25

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)


Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

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

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at 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, like 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. In such cases, 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, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognising a gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged.
 
Page 26

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)

The Group designates certain derivatives as either:
- Hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge); 
- Hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge); or
- Hedges of a net investment in a foreign operation (net investment hedge).
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is recognised after more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability.

 
2.22

Hedge accounting

The Group uses foreign currency forward contracts to manage its exposure to cash flow risk on its future creditors payable in foreign currencies. These derivatives are measured at fair value at each reporting date.

To the extent the cash flow hedge is effective, movements in fair value are recognised in other comprehensive income and presented in a separate cash flow hedge reserve. Any ineffective portions of those movements are recognised in profit or loss for the year.

Gains and losses on the hedging instruments and the hedged items are recognised in profit or loss for the year. When a hedged item is an unrecognised firm commitment, the cumulative hedging gain or loss on the hedged item is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Group's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimates are revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Page 27

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

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


2023
2022
£
£

Travel agent & tour organiser
47,569,231
26,246,080


Analysis of turnover by source market:

2023
2022
£
£

United Kingdom
29,118,728
18,264,697

Australia
18,450,503
7,981,383

47,569,231
26,246,080



5.


Other operating income

2023
2022
£
£

Foreign exchange difference - gain/(loss)
71,548
(292,171)

71,548
(292,171)



6.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Exchange differences
(71,548)
292,171

Other operating lease rentals
57,091
36,642

Page 28

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Group's auditors for the audit of the Group's financial statements
50,194
35,853

The Group has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Group.


8.


Employees

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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Administration
22
20
18
16



Marketing
3
4
3
3



Sales
72
59
56
48

97
83
77
67


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
-
169,675

Group contributions to defined contribution pension schemes
-
4,275

Compensation for loss of office
-
185,036

-
358,986


During the year retirement benefits were accruing to no directors (2022 - 1) in respect of defined contribution pension schemes.

The directors were remunerated through another group company, Dreamlines GmbH, during the 2023 financial year.

Page 29

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
99,965
17,384

99,965
17,384


11.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
338,402
246,503

338,402
246,503


12.


Taxation


2023
2022
£
£


Foreign tax


Foreign tax on income for the year
(28,833)
(6,738)

Total current tax
(28,833)
(6,738)

Deferred tax


Origination and reversal of timing differences
4,227
(54,686)


Taxation on loss on ordinary activities
(24,606)
(61,424)
Page 30

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard average rate of corporation tax in the UK of 23.50% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(1,547,982)
(1,310,220)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.50% (2022 - 19%)
(363,776)
(248,942)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(11,219)
6,803

Capital allowances for year in excess of depreciation
(4,022)
(4,603)

Losses taxed in foreign jurisdictions
20,043
28,236

Deferred taxation movement
4,227
(54,686)

Taxes charged in foreign jurisdictions
(28,833)
(6,738)

Unrelieved tax losses carried forward
358,974
218,506

Total tax charge for the year
(24,606)
(61,424)


Factors that may affect future tax charges

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2021 (on 11 March 2021). These include increases to the main rate of tax from 19% to 25% from 1 April 2023 for profits exceeding £50,000. Deferred taxes at the Statement of Financial Position date have been measured using the rates that will be applicable in the periods to which they relate. Due to the change occurring during the financial year, the effective tax rate applied for the year was an average of 23.50%.

Page 31

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Intangible assets

Group





Broadcasting rights
Goodwill
Total

£
£
£



Cost


At 1 January 2023
155,000
4,183
159,183


Foreign exchange movement
-
(212)
(212)



At 31 December 2023

155,000
3,971
158,971



Amortisation


At 1 January 2023
91,708
4,183
95,891


Charge for the year on owned assets
15,500
-
15,500


Foreign exchange movement
-
(212)
(212)



At 31 December 2023

107,208
3,971
111,179



Net book value



At 31 December 2023
47,792
-
47,792



At 31 December 2022
63,292
-
63,292



Page 32

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
           13.Intangible assets (continued)

Company




Broadcasting rights

£



Cost


At 1 January 2023
155,000



At 31 December 2023

155,000



Amortisation


At 1 January 2023
91,708


Charge for the year
15,500



At 31 December 2023

107,208



Net book value



At 31 December 2023
47,792



At 31 December 2022
63,292

The Broadcasting rights were acquired during 2017 and are being amortised over their estimated useful life of 10 years.

Page 33

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets

Group






Plant and machinery
Fixtures and fittings
Total

£
£
£



Cost or valuation


At 1 January 2023
700,704
117,240
817,944


Additions
40,336
-
40,336


Disposals
(361,687)
(117,240)
(478,927)


Exchange adjustments
(13,011)
-
(13,011)



At 31 December 2023

366,342
-
366,342



Depreciation


At 1 January 2023
639,387
115,791
755,178


Charge for the year on owned assets
29,821
1,449
31,270


Disposals
(361,687)
(117,240)
(478,927)


Exchange adjustments
(12,590)
-
(12,590)



At 31 December 2023

294,931
-
294,931



Net book value



At 31 December 2023
71,411
-
71,411



At 31 December 2022
61,317
1,449
62,766

Page 34

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           14.Tangible fixed assets (continued)


Company






Plant and machinery
Fixtures and fittings
Total

£
£
£

Cost or valuation


At 1 January 2023
433,510
117,240
550,750


Additions
40,336
-
40,336


Disposals
(361,687)
(117,240)
(478,927)



At 31 December 2023

112,159
-
112,159



Depreciation


At 1 January 2023
380,977
115,791
496,768


Charge for the year on owned assets
24,490
1,449
25,939


Disposals
(361,687)
(117,240)
(478,927)



At 31 December 2023

43,780
-
43,780



Net book value



At 31 December 2023
68,379
-
68,379



At 31 December 2022
52,533
1,449
53,982






Page 35

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
1,533,503



At 31 December 2023
1,533,503





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Cruise 1st Australia PTY Limited
157-159 Walker Street, Level 2, Suites 203-204, North Sydney, Australia, NSW 2060
Travel agent and tour operator
Ordinary
100%
Sunshine Cruise Holidays Transport Limited
Office 310, Third Floor, Manchester Digital World, 1 Lowry Plaza, The Quays, Salford, M50 3UB
Transport provider
Ordinary
100%
Cruise 1st Deutschland GmbH
Burchardstraße 14, 20095 Hamburg, Germany
Dormant
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Cruise 1st Australia PTY Limited
948,701
(56,457)

Sunshine Cruise Holidays Transport Limited
100
-

Cruise 1st Deutschland GmbH
19,105
-

Page 36

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
12,268,193
12,582,117
12,264,706
12,535,913

Other debtors
8,678,102
6,647,992
8,518,339
6,574,781

Prepayments and accrued income
10,882,010
6,789,155
8,542,779
5,044,395

Deferred taxation
235,765
239,992
235,765
239,992

Financial instruments
24,117
-
24,117
-

32,088,187
26,259,256
29,585,706
24,395,081


Included within other debtors is a UK Trust Account which is independently and professionally managed by PT Trustees Limited ("PTT"). As at 31 December 2023, the sum of £8,431,320 (2022: £6,546,772) was held in the Trust Account, to be released upon a set of rules agreed with the Civil Aviation Authority ("CAA") and PTT which provide full consumer protection for ATOL bookings.


17.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
4,413,444
4,714,745
1,618,738
2,987,171

4,413,444
4,714,745
1,618,738
2,987,171


Included within cash at bank and in hand above is restricted cash of £100 (2022 - £866,000) provided as security to the Air Travel Trust in connection with the Group's Air Travel Organisers Licence ('ATOL') issued by the Civil Aviation Authority. 

Page 37

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
13,054,006
13,177,752
13,036,724
13,152,216

Amounts owed to group undertakings
1,416,652
1,193,007
1,264,512
824,764

Corporation tax
-
39,827
-
-

Other taxation and social security
91,165
79,159
75,795
61,953

Other creditors
35,855
33,656
12,302
11,708

Accruals and deferred income
20,856,920
14,754,751
15,762,271
11,212,431

Financial instruments
-
7,987
-
7,987

35,454,598
29,286,139
30,151,604
25,271,059


The Group had BSP outstanding cash sales due to be paid of £559,328 at 31 December 2023 (2022 - £232,757), all of which were paid within January 2024. The Group did not have any unutilised overdraft or Revolving Credit Facilities at 31 December 2023.


19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts owed to group undertakings
6,429,134
5,532,502
7,646,903
7,222,737

6,429,134
5,532,502
7,646,903
7,222,737


Included in the above is a loan from the Group's ultimate parent company, Dreamlines GmbH totalling £3,457,975 (2022: £3,457,975), which is subject to a subordinated undertaking in favour of the Civil Aviation Authority, in relation to the Company's ATOL licence and cannot be repaid without the Civil Aviation Authority's prior written consent. This loan carries an interest rate of 6% per annum.
There is also a loan due from Cruise 1st Australia PTY Limited to the Company in the sum of £167,825 (2022: £167,825), which is subject to a subordinated undertaking in favour of ABTA in relation to the Company's ABTA membership and cannot be repaid before 30 September 2024. This loan carries an interest rate of 6% per annum.

Page 38

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
239,992
185,306


Charged to profit or loss
(4,227)
54,686



At end of year
235,765
239,992

Company


2023
2022


£

£






At beginning of year
239,992
185,306


Charged to profit or loss
(4,227)
54,686



At end of year
235,765
239,992

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(14,235)
(10,008)
(14,235)
(10,008)

Tax losses carried forward
250,000
250,000
250,000
250,000

235,765
239,992
235,765
239,992


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



85,000 (2022 - 85,000) Ordinary shares of £1.00 each
85,000
85,000

The ordinary shares of £1 each carry full voting rights, full dividend rights and full rights to participation in any capital distribution on winding up. 


Page 39

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Reserves

Share premium account

The share premium account represents the additional amount shareholders have paid for their issued shares that was in excess of the par value of those shares.

Foreign exchange reserve

The foreign exchange reserve represents differences arising upon the revaluation of foreign subsidiary companies stated in their local currencies. The financial statements of these companies are revalued to match the presentation currency of the Group for consolidation purposes, to show the entirety of the Group's results in Pounds Sterling (GBP). See accounting policy 2.4 for details of how the individual balances within the foreign subsidiaries are translated.

Other reserves

Other reserves relate to a cash flow hedging reserve to which, in accordance with the Group's accounting policies, the effective portion of changes in the fair value of foreign exchange forward contract derivatives are recognised.

Profit and loss account

The profit and loss account represents all current and prior period retained profits and losses, less any dividends paid to shareholders.


23.


Contingent liabilities

At 31 December 2023, there were contingent liabilities outstanding in respect of counter indemnities given by the Group, in the normal course of business, to the Group's bond insurance obligors in respect of ABTA, IATA and CAA travel bonds amounting to £558,125 (2022 - £1,050,175).


24.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £154,179 (2022 - £130,312). Contributions totalling £12,302 (2022 - £30,003) were payable to the fund at the reporting date and are included in creditors.

Page 40

 
SUNSHINE CRUISE HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Commitments under operating leases

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
32,848
54,617
32,848
54,617

Later than 1 year and not later than 5 years
3,375
4,428
3,375
4,428

36,223
59,045
36,223
59,045


26.


Related party transactions


2023
2022
£
£




Dreamlines GmbH


Immediate and ultimate holding company of the Group

Expenses recharged to the related party
371,669
490,832

Expenses recharged from the related party
(2,600,546)
(1,028,898)

Interest payable to the related party
(335,452)
(245,852)

Loan outstanding to the related party at the year-end
(7,845,786)
(6,725,509)


27.


Controlling party

The Group's immediate and ultimate holding company is Dreamlines GmbH, a company registered in Germany which owns all of the issued share capital of the Company. Copies of the financial statements of Dreamlines GmbH can be obtained from Burchardstraße 14, 20095 Hamburg, Germany.

 
Page 41