Company registration number 06507924 (England and Wales)
NEW ADVENTURE TRAVEL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
NEW ADVENTURE TRAVEL LIMITED
COMPANY INFORMATION
Directors
Mr Sean Paul O'Shea
Mr Siak Kain Cheng
Mr Edward Sabu Thomas    (Appointed 8 January 2024)
Secretary
Mr Philip Sanders
Company number
06507924
Registered office
Comfortelgro House
329 Edgware Road
Cricklewood
London
United Kingdom
NW2 6JP
Auditor
Azets Audit Services
Ty Derw, Lime Tree Court
Cardiff Gate Business Park
Cardiff
United Kingdom
CF23 8AB
Business address
Coaster Place
Cardiff
United Kingdom
CF10 4XZ
NEW ADVENTURE TRAVEL LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 8
Statement of comprehensive income
9
Statement of financial position
11
Statement of changes in equity
10
Notes to the financial statements
12 - 25
NEW ADVENTURE TRAVEL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report and financial statements for the year ended 31 December 2023. The directors, in preparing the strategic report, have complied with s414C of the Companies Act 2006.

 

Review of Business

 

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

 

The principal activity of the Company in the year under review was that of a bus and coach operator serving the South Wales market.

 

Section 172(1) Statement

The Directors of the Company recognise their duty to promote the success of the Company for the benefit of its members as a whole whilst having due regard to the matters set out in section s172(1) of the Companies Act 2006:

In providing passenger transport services the Company works closely with a range of stakeholders without which the operating businesses would not succeed including the Welsh Government and local authorities, with whom we work in partnership in delivering passenger transport services within Wales. Meetings with a range of stakeholders are held regularly at all levels of the company’s organisation with decisions taken with reference to their impact on relationships and sustainability.

 

The passenger transport services the Company provides are key requirements of the local communities that they serve, without which residents would not be able to travel to their places of work or leisure as efficiently and cost effectively. Concessionary pass holders rely on the services we operate to provide a means of reliable transport that helps to support mobility and quality of life.

 

 

The way the Company deals with employee engagement is dealt with in the Directors report under Employee consultation.

 

 

Corporate Governance Statement

 

New Adventure Travel operates as a subsidiary of the Singaporean quoted business ComfortDelGro Group. The ultimate parent company is committed and adheres to the Code of Corporate Governance issued by the Monetary Authority of Singapore dated 6 August 2018 and ensures that it is upheld throughout the Group. Details of the Corporate Governance practices are set out within the ComfortDelGro Annual Report available on the ComfortDelGro website.

 

Due to its role as a 100% owned subsidiary of a global operating Group, New Adventure Travel Limited did not adhere to a formalised Corporate Governance Code in the financial year to 31st December 2023, however the Company voluntarily complied with the Wates Corporate Governance Principles for large private companies as follows:

 

1. Purpose and leadership – The New Adventure Board determines the long term strategy, direction and performance of New Adventure Travel. Our vision is to be the Land Transport Operator of choice in the markets that we operate in and the Board are responsible for ensuring the values, strategy and culture are aligned with that vision.

 

NEW ADVENTURE TRAVEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Corporate Governance Statement (continued)

 

2. Board composition – The New Adventure Travel Board comprises of the UK Bus & Coach CEO, European CEO and Global CEO.

 

3. Director responsibilities – The ComfortDelGro Group Directors ensure that the local businesses are aligned with Shareholder Interests and with the policies and directions of the wider Group.

 

4. Opportunity and risk – The new Adventure Travel Board seek out opportunity while mitigating risk. Long term strategic opportunities are highlighted to the Board through regular Board meetings and through the Group Business development function. The ComfortDelGro Group Risk and Subtainability Office (changed from Audit and Risk committee) ensure that inherent and emerging risks are identified and managed appropriately and in a timely manner, updating the overall Group Risk register for any changes in underlying conditions. Risks are managed at a local level through Operational and Safety risk committees and through regular reporting and investigation of incidents. The safety of our passengers and staff are the number one priority in all that we do.

 

5. Remuneration – The Directors are remunerated by other entities within the group.

 

6. Stakeholder relationships and engagement – Directors foster effective stakeholder relationships aligned to the company’s purpose of being the lead transport Operator of choice. This requires both the board and senior management to engage with a range of stakeholders in order to deliver financial returns and growth in a sustainable way.

 

Stakeholders include employees, passengers, suppliers, customers including local authorities, devolved assemblies and regulators such as the Welsh Government, Transport for Wales, and the office of the Traffic commissioner.

 

Engagement takes many forms including local briefings and regular communication with staff via in house tools such as Blink and newsletters.

 

For other stakeholders such as customers and local authorities, formal meetings and daily dialogue take place with key stakeholder representatives.

 

Results and Performance

 

As shown in the Company’s income statement on page 8, the Company’s revenue has increased by £1.16m (9%) in the year to £13.93m (2022: £12.77m) and the company achieved a profit after tax of £0.22m (2022: profit of £0.34m).

The growth in revenue of £1.16m is mainly due to the securement of new contracts during 2023. The business has benefited from the Bus Emergency Subsidy (BES 3.0) and Bus Transition Fund throughout 2023.

Average staff numbers averaged 259 in 2023 (2022: 238 employees).

Future Outlook

 

The Company intends to further enhance the provision of road passenger transport services. Expansion may be achieved through securing new contract work. The business is also still considering strategic acquisitions. Longer term, the business will look to engage with Welsh bus franchising models, which remain a key objective of Welsh Government.

 

NEW ADVENTURE TRAVEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

Principal risks and uncertainties

 

Competition

 

Competitive pressure in the South Wales local bus and coach market are a continuing risk for the company, which could result in the Company losing customers to its key competitors. The company manages this risk by constantly striving to improve the quality of its services and innovating, to ensure that it leads market development.

The Welsh Government carries out annual reviews of the Concessionary Fare Scheme, aimed at making the scheme sustainable. Changes to the scheme may create risks or uncertainties to demand.

 

Brexit

 

The UK’s withdrawal from the European Union and subsequent Trade Deal removed some of the risk and uncertainty that was reported in last year's accounts. Whilst disruption was kept to a minimum during the transition period there is some residual risk and uncertainty in the Company’s Supply Chain and Human Resources which continues to be mitigated through planning and risk management.

 

Post balance sheet events

In March 2024, the Bus transition fund (BTF) came to an end. Following a tender exercise by the local authorities across Wales, which resulted in a reduction of work operated by our bus division, the decision was taken to close Taff's Well depot and consolidate work at Cardiff and Swansea, thus improving the financial efficiency of the business and reducing overall costs. The result of the reduction in work was circa 42 PVR and 67 employees.

 

Financial Risk Management

 

The Company's principal financial assets are bank and trade and other receivables. The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies. The Company has a small number of trade counterparties and as such has a high concentration of credit risk with these customers. However, the main receivables are due from local authorities and government bodies and therefore the directors feel the risk is relatively low.

 

Going Concern

 

Throughout 2023, the business continued to receive emergency funding from the Welsh government through the Bus Emergency Subsidy (BES) until July 2023, which was then replaced by the Bus Transition Fund (BTF). The transition to BTF and the subsequent retender process that followed, allowed the business to review the financial viability of its operations, to ensure it only runs profitable services from April 2024.

The business has reforecast based on the profitable work it has retained and has forecast healthy cash balances throughout 2024-25. Parent company Braddell Ltd has also provided the directors of the company with a letter confirming it will continue to provide support to the company, such that it is able to meet its obligations for a period of at least 12 months from the date of signing these financial statements.

On that basis the directors consider New Adventure Travel to remain a going concern and content that its financial statements are prepared on that basis.

Further details regarding the adoption of the going concern basis can be found in the accounting policy note 1.

 

 

 

Energy Consumption and Emissions Reporting Exemption

The Group is taking exemption from disclosures in relation to energy consumption and emissions reporting as these disclosures are available in the parent company financial statements at ComfortDelGro House, 329 Edgware Road, Cricklewood, London, NW2 6JP which is the registered office of the company.

NEW ADVENTURE TRAVEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

On behalf of the board

Mr S P O'Shea
Director
16 September 2024
NEW ADVENTURE TRAVEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

Principal activity

The principal activity of the Company during the year continued to be that of a bus and coach operator.

Results and dividends

The results for the year are set out on page 10.

No dividends have been declared during the year (2022: £Nil).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

 

 

Mr Ian Geoffrey Foster
(Resigned 1 June 2023)
Mr Sean Paul O'shea
Mr Siak Kian Cheng
My Damien John Rowbotham
(Resigned 31 December 2023)
Mr Edward Sabu Thomas
(Appointed 8 January 2024

Indemnification of Directors and Officers

 

The Company maintains Directors' and Officers' Liability insurance in respect of legal action that might be brought against its directors. The Company has indemnified each of its directors and other officers of the Company against certain liabilities that may be incurred as a result of their offices.

 

Supplier payment policy

 

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to 54 day's purchases, based on the average daily amount invoiced by suppliers during the year.

 

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company's continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

 

Employee involvement

The Directors and managers of the Company place considerable value on the consultative meeting with employees. Information affecting employees and, on some matters, affecting the performance of the Company is disseminated through meetings and newsletters.

NEW ADVENTURE TRAVEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Statement of disclosure to auditor

 

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr S P O'Shea
Director
16 September 2024
NEW ADVENTURE TRAVEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEW ADVENTURE TRAVEL LIMITED
- 7 -
Opinion

We have audited the financial statements of New Adventure Travel Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 entity’s ability to continue to adopt the going concern basis of accounting included review of the budgets, as well as the reliance placed upon group with regards to its 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual 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.

Opinions on other matters prescribed by the Companies Act 2006

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

NEW ADVENTURE TRAVEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW ADVENTURE TRAVEL LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Use of our report

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

Craig Yearsley FCCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
18 September 2024
Chartered Accountants
Statutory Auditor
Ty Derw, Lime Tree Court
Cardiff Gate Business Park
Cardiff
United Kingdom
CF23 8AB
NEW ADVENTURE TRAVEL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£'000
£'000
Revenue
3
13,939
12,773
Cost of sales
(15,008)
(15,608)
Gross loss
(1,069)
(2,835)
Administrative expenses
(6,692)
(6,150)
Other operating income
8,111
9,402
Operating profit
4
350
417
Finance costs
6
(42)
(45)
Profit before taxation
308
372
Tax on profit
7
(87)
(30)
Profit and total comprehensive income for the financial year
221
342

The income statement has been prepared on the basis that all operations are continuing operations.

NEW ADVENTURE TRAVEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Revaluation reserve
Retained earnings
Total
£'000
£'000
£'000
£'000
Balance at 1 January 2022
-
294
(1,157)
(863)
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
342
342
Balance at 31 December 2022
-
0
294
(815)
(521)
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
221
221
Balance at 31 December 2023
-
0
294
(594)
(300)
NEW ADVENTURE TRAVEL LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Non-current assets
Intangible assets - goodwill
8
31
31
Property, plant and equipment
9
9,841
11,254
9,872
11,285
Current assets
Inventories
10
581
521
Trade and other receivables
13
4,912
4,915
Cash and cash equivalents
3,407
1,175
8,900
6,611
Current liabilities
12
(2,378)
(2,346)
Net current assets
6,522
4,265
Total assets less current liabilities
16,394
15,550
Non-current liabilities
12
(15,385)
(14,977)
Provisions for liabilities
Deferred tax liabilities
17
(273)
(288)
Other provisions
19
(1,036)
(806)
Net liabilities
(300)
(521)
Equity
Called up share capital
21
-
0
-
0
Revaluation reserve
20
294
294
Retained earnings
(594)
(815)
Total equity
(300)
(521)
The financial statements were approved by the board of directors and authorised for issue on 16 September 2024 and are signed on its behalf by:
Mr S P O'Shea
Director
Company registration number 06507924
NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

New Adventure Travel Limited ("NAT" or the "Company") is a company incorporated in the United Kingdom under the Companies Act.

 

The Company is a private company limited by shares and is registered in England and Wales. The address of the Company's registered office is ComfortDelGro House, 329 Edgware Road, Cricklewood, LONDON, UK, NW2 6JP. The nature of the Company's operations and its principal activities are set out in the Directors Report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards. The financial statements have been prepared under the historical cost convention.

 

The financial statements are displayed in round £1,000's.

The accounting policies which follow set out those policies, which apply in preparing the financial statements for the period ended 31 December 2022. The Company has taken advantage of the following disclosure exemptions under FRS 101:

 

 

The preparation of financial statements in conformity with FRS 101 requires the use of certain accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

New Adventure Travel Limited is included in the group accounts of Braddell Limited. The group accounts of Braddell Limited are available to the public and can be obtained as set out in note 23.

NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern

The financial statements have been prepared on a going concern basis, which contemplates continuity of business and the realisation of assets and the discharge of liabilities in the normal course of business. After reviewing the ongoing business plan post April 2024, when the BES/BTF funding scheme came to a complete end, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and therefore these financial statements have been prepared on a going concern basis.true

 

Taking into account the existing cash balances held in the business and the mitigating cost saving actions undertaken by the business from the 1st April 2024, as well as the continuing support from the group resources including available working capital financing, the company will have sufficient funds to meet its liabilities as they fall due.

 

In addition, the parent company, Braddell Limited has provided a letter of support as further assurance over the availability of reserves and sustainability of the group should any of the existing financial facilities remain uncommitted.

 

1.3
Functional and presentational currency
These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the Company operates.
1.4
Revenue

Revenue is shown net of value-added tax, rebates and discounts. Revenues incidental to the Company's principal activity are reported as other operating income.

The company recognises revenue from the following major sources:

 

The Company recognises revenue when the amount of revenue can be reliably measured and is recorded on date of travel, with relevant deferral of revenue for advance bookings.

 

 

Revenue generated from contracted services provided on behalf of local transport authorities as well as private hire customers is also recognised as income in the period to which it relates.

 

Interest income is recognised on an accruals basis.

 

Other operating income relates to commissions receivable, which are recognised on an accruals basis.

 

1.5
Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Tangible fixed assets

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property
2% on cost, excluding land at 0%
Property improvements
10% on cost
Fixtures and fittings
20% on cost
Plant and machinery
8.33% - 20% on cost
Computer equipment
20% on cost
Leasehold property right of use of assets
Over the lease term of the asset
Gains or losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within other gains/(losses) in the income statement.
1.7
Investments
Investments held as non-current assets are stated at cost less provision for any impairment value.
1.8
Trade and other receivables
Trade and other receivables are mainly amounts due from contractors and customers. Those trade receivables with no stated interest rate and receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.9
Cash and cash equivalents

Cash and cash equivalents include cash in hand and at bank as well as short term deposits with an original maturity of three months or less.

1.10
Ordinary shares
Ordinary shares are classified as equity. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
1.11
Trade and other payables
Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
1.12
Taxation

Taxation for the year comprises of current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date,

NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

 

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

 

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

1.13
Dividend distribution
A dividend distribution is recognised when it is paid in the year in which the payment of these dividends is approved by the Company's shareholders.
1.14
Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
1.15
Provisions
Provisions are recognised when the Company has a legal or constructive obligation as a result of a past event and it is probable that the Company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised is the best estimate of the consideration required to settle the present obligation at the reporting date.
1.16
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability
When the company acts as a lessor, leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees, over the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains lease and non-lease components, the company applies IFRS 15 to allocate the consideration in the contract. When the company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately, classifying the sub-lease with reference to the right-of-use asset arising from the head lease instead of the underlying asset.
NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Amounts due from lessees under finance leases are recognised as receivables at the amount of the company's net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company's net investment outstanding in respect of leases.
All Leases are accounted for by recognising a right-of-use asset and a lease liability except for:
Lease of Low value assets
Leases of a duration of 12 months of less
1.17
Grants

Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.

2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the Company's accounting polices

The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Revenue recognition as principal rather than agent

Judgement has been applied to determine that the Company should recognise revenue as a principal rather than as an agent. This is because, while the Company's coach services are operated by contractors rather than using its own public service vehicles, the Company sells and markets tickets for services registered in the name of New Adventure Travel Limited and sets prices for these services and bears the risks and rewards of fluctuations in prices and passenger numbers.

Provisions

Judgement has been applied to determine that the Company should recognise a reasonable provision in respect of past events. The estimation used has been based on historical data along with management expectation.

Measurement of provision for accident claims

The estimation of the self-insurance provision is based on an assessment of the expected settlement on known claims together with an estimate of settlements for incidents which has occurred but not been reported before the reporting date. The Company makes assumptions concerning these judgemental matters based on its claims team's past experience of similar incidents as well as the advice of its lawyers and insurers.

NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
3
Revenue
2023
2022
£'000
£'000
Revenue analysed by class of business
Turnover
11,260
9,410
Grant income
2,679
3,363
13,939
12,773

All the above income is generated in the United Kingdom.

Due to the nature of the Company's business, the origin and destination of revenue is the same in all cases. The Company provides local bus and coach services in Wales.

The turnover for the year includes grant income reflecting Welsh Government payments to ensure the continuation of services. Concessionary Support of £2,679k (2022: £3,363k) are reported as grant income within turnover.

 

In addition, the company received support grants in the form of the Bus Emergency Subsidy (BES) Scheme and Bus Transition Fund (BTF) totalling £8,099k (2022: £9,381k) from the Government. This income has been included in other operating income in the income statement.

4
Operating profit
2023
2022
£'000
£'000
Operating profit for the year is stated after charging/(crediting):
Government grants
(8,099)
(9,381)
Fees payable to the company's auditor for the audit of the company's financial statements
48
24
Depreciation of property, plant and equipment
1,605
1,598
Depreciation of property rights-of-use
175
112
Loss on disposal of property, plant and equipment
8
20
Cost of inventories recognised as an expense
5,397
5,952
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Management and administration
22
24
Operational
216
191
Engineering
21
23
Total
259
238
NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 18 -
2023
2022
£'000
£'000
Wages and salaries
11,650
11,385
Social security costs
752
614
Pension costs
143
116
12,545
12,115
6
Finance costs
2023
2022
£'000
£'000
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
42
45
7
Taxation
2023
2022
£'000
£'000
Current tax
Other tax reliefs
102
-
Deferred tax
Origination and reversal of temporary differences
(15)
30
Total tax charge
87
30

The charge for the year can be reconciled to the profit per the income statement as follows:

2023
2022
£'000
£'000
Profit before taxation
308
372
Expected tax charge based on a corporation tax rate of 23.52% (2022: 19.00%)
72
71
Effect of expenses not deductible in determining taxable profit
11
8
Adjustment in respect of prior years
6
(30)
Effect of change in UK corporation tax rate
(1)
14
Under/(over) provided in prior years
-
(1)
Enhanced capital allowances
(1)
(32)
Taxation charge for the year
87
30
NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
8
Intangible fixed assets
Goodwill
Software
Total
£'000
£'000
£'000
Cost
At 31 December 2022
75
7
82
At 31 December 2023
75
7
82
Amortisation and impairment
At 31 December 2022
44
7
51
At 31 December 2023
44
7
51
Carrying amount
At 31 December 2023
31
-
0
31
At 31 December 2022
31
-
0
31

The cost of goodwill in these financial statements has been measured at its amortised book value.

NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Property, plant and equipment
Freehold land and buildings
Property improvements
Fixtures and fittings
Plant and equipment
Computers
Motor vehicles
Leasehold property right of use of assets
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Cost or valuation
At 31 December 2022
1,056
200
541
17,105
166
121
2,940
22,129
Additions
-
0
51
17
295
5
11
-
0
379
Disposals
-
0
-
0
-
0
(658)
-
0
(13)
-
0
(671)
Impairment release
-
0
-
0
-
0
5
-
0
-
0
-
0
5
At 31 December 2023
1,056
251
558
16,747
171
119
2,940
21,842
Accumulated depreciation and impairment
At 31 December 2022
194
30
228
9,835
101
87
400
10,875
Charge for the year
20
25
90
1,452
26
6
161
1,780
Eliminated on disposal
-
0
-
0
-
0
(641)
-
0
(13)
-
0
(654)
At 31 December 2023
214
55
318
10,646
127
80
561
12,001
Carrying amount
At 31 December 2023
842
196
240
6,101
44
39
2,379
9,841
At 31 December 2022
862
170
313
7,270
65
34
2,540
11,254
NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -

Fixed assets include right of use assets as follows:

Right-of-use assets
2023
2022
£'000
£'000
Net values
Leasehold property right of use of assets
2,379
2,540
Depreciation charge for the year
Leasehold property right of use of assets
161
159

The company recognises property leases as fixed assets in line with IFRS 16.

 

The total depreciation charged in the year to these assets is £161k (2022: £159k).

 

The land and buildings are subject to a charge over the land and property to HSBC Bank plc dated June 2012.

 

Freehold property was valued on a market value basis on 18 July 2017 by Hirons, Morgan and Yapp Property Advisors. The directors do not consider that a material change to these values has occurred since this point.

10
Inventories
2023
2022
£'000
£'000
Finished goods
581
521
11
Contracts with customers
2023
2022
2022
Year end
Year end
Year start
£'000
£'000
£'000
Contracts in progress
Contract assets
257
71
105
12
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£'000
£'000
£'000
£'000
Borrowings
14
-
0
-
0
13,170
12,600
Trade and other payables
15
1,804
2,012
-
0
-
0
Taxation and social security
410
170
-
-
Lease liabilities
16
164
164
2,215
2,377
2,378
2,346
15,385
14,977
NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
13
Trade and other receivables
2023
2022
£'000
£'000
Trade receivables
1,800
1,296
Provision for bad and doubtful debts
(73)
(73)
1,727
1,223
Contract assets (note 11)
257
71
VAT recoverable
272
378
Amounts owed by related parties
699
699
Other receivables
1,704
2,069
Prepayments and accrued income
253
475
4,912
4,915

Trade receivables disclosed above measured at amortised cost.

14
Borrowings
Non-current
2023
2022
£'000
£'000
Borrowings held at amortised cost:
Loans from parent undertaking
362
230
Loans from related parties
12,808
12,370
13,170
12,600

 

15
Trade and other payables
2023
2022
£'000
£'000
Trade payables
1,296
1,723
Accruals and deferred income
343
160
Other payables
165
129
1,804
2,012
NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
16
Lease liabilities
2023
2022
Maturity analysis
£'000
£'000
Within one year
164
164
In two to five years
2,215
2,377
Total undiscounted liabilities
2,379
2,541
2023
2022
£'000
£'000
Current liabilities
164
164
Non-current liabilities
2,215
2,377
2,379
2,541
2023
2022
Amounts recognised in profit or loss include the following:
£'000
£'000
Interest on lease liabilities
42
45

Included in the above lease liabilities are rights-of-use assets:                        

                                    Buildings

Right-of-use assets                            £'000

1 January 2022                                2,699

Additions                         

Disposals                        

Depreciation                                 (159)

                                    ────

At 31 December 2022                            2,540

                                    ═══════

Lease liabilities                        

1 January 2022                                2,700

New leases in the year                        

Leases settled in the year                        

Interest expense                                  45

Lease principal paid                             (159)

Lease interest paid                             (45)

                                    ─────

At 31 December 2022                            2,541

                                    ═══════

NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
17
Deferred taxation

Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.

2023
2022
£'000
£'000
Deferred tax liabilities
273
288
273
288
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
143
116

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Provisions for liabilities
2023
2022
£'000
£'000
Insurance provisions
1,036
806
Movements on provisions:
£'000
At 1 January 2023
803
Charge to profit and loss account
230
At 31 December 2023
1,036

 

20
Revaluation reserve
2023
2022
£'000
£'000
At the beginning and end of the year
294
294
NEW ADVENTURE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
21
Share capital
2023
2022
£
£
Authorised
1 Ordinary share of £1 each
1
1
22
Capital commitments
2023
2022
£'000
£'000
Contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment
38
107

 

23
Controlling party

On 7th February 2018 the shares of the Company were purchased by Braddell Limited.

 

The Company's immediate parent undertaking is Braddell Limited, a company incorporated in the United Kingdom. Copies of its accounts can be obtained from ComfortDelGro House, 329 Edgware Road, London NW2 6JP.

 

The ultimate parent undertaking of the largest group of which the Company is a member was ComfortDelGro Corporation Limited, a company incorporated in Singapore. Copies of its accounts can be obtained from 205 Braddell Road, Singapore 579701.

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