Company registration number 07889271 (England and Wales)
EUROPEAN WATERWAYS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EUROPEAN WATERWAYS GROUP LIMITED
COMPANY INFORMATION
Directors
D G Banks
T J S Wood-Dow
Secretary
T J S Wood-Dow
Company number
07889271
Registered office
55 Station Road
Beaconsfield
Buckinghamshire
United Kingdom
HP9 1QL
Auditor
Rouse Audit LLP
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
EUROPEAN WATERWAYS GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 26
EUROPEAN WATERWAYS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activities of the group remain the provision of cruises on board boutique floating hotel barges on the waterways of Europe. The Group also sells cruises on third party owned vessels as a tour operator.

Review of the business

The year ended 31st December 2023 saw the group achieve record revenues with turnover of £14.14m, surpassing the 2022 revenue of £12.55m. 3140 passengers were carried in the year, well ahead of the 2019 pre Covid passenger count of 2616.

North America remains the groups’ principal source of business, whilst France represents the most important cruise destination with approximately 70% of passengers holidaying there. The UK was the second most important destination with 18% of passengers with Italy, Holland and Ireland making up the balance.

The group has maintained a strong balance sheet with £7.5m of net cash at the year end.

Principal risks and uncertainties

More than 90% of group revenues are received in dollars and euros. The group also has significant expenditure in euros which acts as a natural hedge. The group has a policy of partially hedging its forward dollar sales to mitigate this risk.

Any recurrence of the COVID-19 pandemic would have a major effect on bookings. Onboard health protocols have been strengthened since COVID-19 and management remains vigilant on this issue.

Although the company’s fleet operates mainly on canals which as artificial waterways, are less exposed than rivers to floods or droughts, the impact of any weather extremes remains a risk. The group has a plan to operate alternative itineraries should certain canals be adversely affected by water levels.

Development and performance

In July 2023, a new barge Kir Royale, was acquired and after a major refit, began cruising in the Champagne region in June 2024 , adding a further ultra deluxe product to the fleet in France.

The cruising season has been extended with activity now running into November and a new Xmas Markets program operating pre Christmas in Alsace. Due to this and various acquisitions, the percentage of passengers carried on the group’s owned boats was 79% in 2023 compared to 62% in the last pre COVID-19 year 2019. Whole boat charters are also growing as a share of the company’s business with 53% being charters in 2023.

Customer satisfaction remains high with feedback to the Group’s Feefo platform consistently an average of 4.9 out of 5.

Repeat business has increased with 24% of bookings in 2023 being repeats compared with 19% for 2022.

Key performance indicators

Key performance indicators

On behalf of the board

T J S Wood-Dow
Director
16 September 2024
EUROPEAN WATERWAYS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activities of the group remain the provision of cruises on board boutique floating hotel barges on the waterways of Europe. The Group also sells cruises on third party owned vessels as a tour operator.

Directors

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

D G Banks
T J S Wood-Dow
Results and dividends

Ordinary dividends were paid amounting to £2,007,670. The directors do not recommend payment of a further dividend for the year ended 31 December 2023.

Post reporting date events

There are no post balance sheet events to report in these financial statements.

Future developments

The group continues to grow its business of hotel barge cruises. The new barge Kir Royale was launched mid season in 2024 and will operate for a full season in 2025, generating further sales. The operating season is also being extended into November due to demand for late season cruising. The group will continue to seek additional vessels of the appropriate standard to add to the fleet.

Statement of directors' responsibilities

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 and then apply them consistently;

- make judgements 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

EUROPEAN WATERWAYS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board
T J S Wood-Dow
Director
16 September 2024
EUROPEAN WATERWAYS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EUROPEAN WATERWAYS GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of European Waterways Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 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:

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 group and parent 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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:

EUROPEAN WATERWAYS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROPEAN WATERWAYS GROUP LIMITED
- 5 -
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 their 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 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 parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

 

EUROPEAN WATERWAYS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROPEAN WATERWAYS GROUP LIMITED
- 6 -

To assess the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.

Carolyn Robson (Senior Statutory Auditor)
For and on behalf of Rouse Audit LLP
17 September 2024
Chartered Accountants
Statutory Auditor
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
EUROPEAN WATERWAYS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
14,139,873
12,551,937
Cost of sales
(7,456,666)
(5,895,230)
Gross profit
6,683,207
6,656,707
Administrative expenses
(2,974,361)
(2,477,076)
Other operating income
13,481
93,779
Operating profit
4
3,722,327
4,273,410
Interest receivable and similar income
7
244,350
76,897
Interest payable and similar expenses
8
(53,185)
(69,969)
Profit before taxation
3,913,492
4,280,338
Tax on profit
9
(896,258)
(829,157)
Profit for the financial year
3,017,234
3,451,181
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

EUROPEAN WATERWAYS GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
-
0
34,532
Tangible assets
11
3,957,451
3,526,954
Investment properties
12
386,000
386,000
Investments
15
1,585
10,068
4,345,036
3,957,554
Current assets
Stocks
16
333,477
171,741
Debtors
17
967,635
519,428
Cash at bank and in hand
8,333,434
9,312,936
9,634,546
10,004,105
Creditors: amounts falling due within one year
18
(5,278,364)
(5,404,613)
Net current assets
4,356,182
4,599,492
Total assets less current liabilities
8,701,218
8,557,046
Creditors: amounts falling due after more than one year
19
(919,722)
(1,897,514)
Provisions for liabilities
Deferred tax liability
20
626,543
514,143
(626,543)
(514,143)
Net assets
7,154,953
6,145,389
Capital and reserves
Called up share capital
22
40,600
40,600
Revaluation reserve
122,564
122,564
Profit and loss reserves
6,991,789
5,982,225
Total equity
7,154,953
6,145,389
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:
16 September 2024
T J S Wood-Dow
Director
EUROPEAN WATERWAYS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,474,094
3,075,063
Investments
15
40,600
40,600
3,514,694
3,115,663
Current assets
Debtors
17
827,326
407,760
Cash at bank and in hand
31,776
11,762
859,102
419,522
Creditors: amounts falling due within one year
18
(171,346)
(1,644,698)
Net current assets/(liabilities)
687,756
(1,225,176)
Total assets less current liabilities
4,202,450
1,890,487
Creditors: amounts falling due after more than one year
19
(400,639)
(1,169,089)
Provisions for liabilities
Deferred tax liability
20
594,638
475,603
(594,638)
(475,603)
Net assets
3,207,173
245,795
Capital and reserves
Called up share capital
22
40,600
40,600
Profit and loss reserves
3,166,573
205,195
Total equity
3,207,173
245,795

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £4,969,048 (2022 - £443,698 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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:
16 September 2024
T J S Wood-Dow
Director
Company registration number 07889271 (England and Wales)
EUROPEAN WATERWAYS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
40,600
122,564
2,997,944
3,161,108
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
3,451,181
3,451,181
Dividends
10
-
-
(466,900)
(466,900)
Balance at 31 December 2022
40,600
122,564
5,982,225
6,145,389
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
3,017,234
3,017,234
Dividends
10
-
-
(2,007,670)
(2,007,670)
Balance at 31 December 2023
40,600
122,564
6,991,789
7,154,953
EUROPEAN WATERWAYS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
40,600
228,397
268,997
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
443,698
443,698
Dividends
10
-
(466,900)
(466,900)
Balance at 31 December 2022
40,600
205,195
245,795
Year ended 31 December 2023:
Profit and total comprehensive income
-
4,969,048
4,969,048
Dividends
10
-
(2,007,670)
(2,007,670)
Balance at 31 December 2023
40,600
3,166,573
3,207,173
EUROPEAN WATERWAYS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
3,848,778
3,631,541
Interest paid
(53,185)
(69,969)
Income taxes paid
(1,213,600)
(594)
Net cash inflow from operating activities
2,581,993
3,560,978
Investing activities
Purchase of tangible fixed assets
(723,480)
(380,822)
Purchase of investments
(679)
(1,870)
Proceeds from disposal of investments
10,500
22,500
Interest received
244,350
76,897
Net cash used in investing activities
(469,309)
(283,295)
Financing activities
Repayment of bank loans
(1,084,516)
(254,624)
Dividends paid to equity shareholders
(2,007,670)
(466,900)
Net cash used in financing activities
(3,092,186)
(721,524)
Net (decrease)/increase in cash and cash equivalents
(979,502)
2,556,159
Cash and cash equivalents at beginning of year
9,312,936
6,756,777
Cash and cash equivalents at end of year
8,333,434
9,312,936
EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

European Waterways Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 55 Station Road, Beaconsfield, Buckinghamshire, HP9 1QL.

 

The group consists of European Waterways Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold properties and to include investment properties. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 December 2023. The results of subsidiaries sold or acquired are included in the profit and loss account up to, or from the date control passes. Intra-group sales and profits are eliminated fully on consolidation.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

1.4
Turnover

The parent and subsidiaries turnover represents amounts receivable during the year, exclusive of Value Added Tax, in respect of rental income in relation to the floating hotels and freehold property and provision of treasury services. Revenue is recognised according to the period to which it relates.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 2 years.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings freehold
2% straight line for freehold property
Plant and machinery
4% straight line
Fixtures, fittings & equipment
25% straight line
Motor vehicles
25% straight line
EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Stocks

Stocks comprise supplies to be consumed in the rendering of services. Stocks are stated at the lower of cost and net realisable value, being the estimated selling price of the services less the applicable costs of conversion to complete the services and variable selling expenses.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the balance sheet when the group or company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.14
Retirement benefits

The company contributes to a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.16
Government grants

Grants towards capital expenditure are offset against the original cost of the asset and depreciated in accordance with the appropriate accounting policy. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation of barges

Management determines the expected useful economic life of the barges used in the business. Judgement is required in predicting the life of the barges.

 

Depreciation is charged on the barges over their deemed useful economic life. The period has been determined via a review of each asset, considering both historical and future factors. The directors believe the depreciation periods applied appropriately reflect the estimated useful economic life of the assets.

Valuation of investment properties

Management monitors the market value of the investment properties. Judgement is required in determining the market value as similar properties in the area are not frequently sold, therefore a market price or offer is not always readily available.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales
14,139,873
12,551,937
2023
2022
£
£
Turnover analysed by geographical market
UK
14,139,873
12,551,937
2023
2022
£
£
Other revenue
Interest income
244,350
76,897
Grants received
-
93,027
EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(216,154)
(800,841)
Government grants
-
(93,027)
Depreciation of owned tangible fixed assets
284,927
285,882
(Profit)/loss on disposal of tangible fixed assets
-
1,623
Amortisation of intangible assets
34,532
34,532
Operating lease charges
4,681
9,405
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Crew
35
31
-
-
Operations
13
9
-
-
Administrative
13
14
-
-
Total
61
54
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,065,448
1,857,367
-
0
-
0
Social security costs
59,714
58,033
-
-
Pension costs
48,901
46,937
-
0
-
0
2,174,063
1,962,337
-
0
-
0
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and companies
36,000
36,000
EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
241,326
75,173
Other interest income
3,024
1,724
Total income
244,350
76,897
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
241,326
75,173
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
47,945
48,506
Other interest on financial liabilities
1,853
20,384
49,798
68,890
Other finance costs:
Other interest
3,387
1,079
Total finance costs
53,185
69,969
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
772,419
681,288
Deferred tax
Origination and reversal of timing differences
123,839
147,869
Total tax charge
896,258
829,157
EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,913,492
4,280,338
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
920,453
813,264
Tax effect of expenses that are not deductible in determining taxable profit
708
-
0
Effect of change in corporation tax rate
33,125
-
Permanent capital allowances in excess of depreciation
(67,393)
(22,053)
Foreign exchange differences
2,684
2,456
Remesurement of deferred tax
6,681
35,490
Taxation charge
896,258
829,157
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
2,007,670
466,900
EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
11
Tangible fixed assets
Group
Land and buildings freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
678,770
4,302,404
1,191,024
457,332
6,629,530
Additions
-
0
611,574
59,050
52,856
723,480
Disposals
-
0
(1,734)
(30,338)
-
0
(32,072)
Exchange adjustments
-
0
(13,874)
(9,270)
-
0
(23,144)
At 31 December 2023
678,770
4,898,370
1,210,466
510,188
7,297,794
Depreciation and impairment
At 1 January 2023
17,877
1,739,164
965,582
379,953
3,102,576
Depreciation charged in the year
3,575
181,254
69,387
30,711
284,927
Eliminated in respect of disposals
-
0
(899)
(29,781)
-
0
(30,680)
Exchange adjustments
-
0
(8,929)
(7,551)
-
0
(16,480)
At 31 December 2023
21,452
1,910,590
997,637
410,664
3,340,343
Carrying amount
At 31 December 2023
657,318
2,987,780
212,829
99,524
3,957,451
At 31 December 2022
660,893
2,563,240
225,442
77,379
3,526,954
Company
Land and buildings freehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2023
678,770
3,005,386
511,930
4,196,086
Additions
-
0
503,701
52,234
555,935
At 31 December 2023
678,770
3,509,087
564,164
4,752,021
Depreciation and impairment
At 1 January 2023
17,877
724,196
378,950
1,121,023
Depreciation charged in the year
3,575
123,012
30,317
156,904
At 31 December 2023
21,452
847,208
409,267
1,277,927
Carrying amount
At 31 December 2023
657,318
2,661,879
154,897
3,474,094
At 31 December 2022
660,893
2,281,190
132,980
3,075,063
EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
386,000
-

Investment properties are included at the year end valuations. These investment properties were valued by the directors on the basis of open market value for existing use.

 

These land and buildings with a carrying amount of £386,000 (2022 - £386,000) have been pledged as security for liabilities.

13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
130,579
Amortisation and impairment
At 1 January 2023
96,047
Amortisation charged for the year
34,532
At 31 December 2023
130,579
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
34,532
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Belle Epoque Charters Limited
England & Wales
Ordinary
-
100.00
European Waterways Limited
England & Wales
Ordinary
100.00
-
Flot Home SARL
France
Ordinary
-
100.00
GoBarging Limited
England & Wales
Ordinary
-
100.00
EW Services SASU
France
Ordinary
-
100.00
EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
40,600
40,600
Unlisted investments
1,585
10,068
-
0
-
0
1,585
10,068
40,600
40,600
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2023
10,068
Additions
679
Valuation changes
1,338
Disposals
(10,500)
At 31 December 2023
1,585
Carrying amount
At 31 December 2023
1,585
At 31 December 2022
10,068
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
40,600
Carrying amount
At 31 December 2023
40,600
At 31 December 2022
40,600
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
333,477
171,741
-
-
EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
30,359
14,919
-
0
-
0
Corporation tax recoverable
169,684
-
0
-
0
-
0
Amounts due from group undertakings
-
-
827,326
397,622
Other debtors
615,483
-
-
0
10,138
Prepayments and accrued income
152,109
493,070
-
0
-
0
967,635
507,989
827,326
407,760
Deferred tax asset (note 20)
-
0
11,439
-
0
-
0
967,635
519,428
827,326
407,760
Amounts falling due after more than one year:
Other debtors
150,009
-
0
-
0
-
0
Total debtors
1,117,644
519,428
827,326
407,760
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
297,100
403,824
164,846
318,381
Trade creditors
78,054
55,082
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
1,311,817
Corporation tax payable
384,648
656,145
-
0
-
0
Other taxation and social security
563,713
387,653
4,000
12,000
Other creditors
80,873
86,554
-
0
-
0
Accruals and deferred income
3,873,976
3,815,355
2,500
2,500
5,278,364
5,404,613
171,346
1,644,698

The group has granted a fixed and floating charge over the assets of the business in favour of the bank loan amounting to £297,100 (2022 £403,824).

EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
919,722
1,897,514
400,639
1,169,089

The bank loan is secured by a fixed and floating charge over the assets of the company £919,722 (2022 £1,897,514).

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
610,415
487,092
-
11,439
Capital gains
16,128
27,051
-
-
626,543
514,143
-
11,439
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
594,638
475,603
-
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
502,704
475,603
Charge to profit or loss
123,839
119,035
Liability at 31 December 2023
626,543
594,638

 

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
48,901
46,937
EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Retirement benefit schemes
(Continued)
- 25 -

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary £1 shares of £1 each
40,600
40,600
40,600
40,600
23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable property operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
3,791
7,096
-
-
Between two and five years
2,527
6,465
-
-
6,318
13,561
-
-
24
Controlling party

The directors consider there is no ultimate controlling party in the current or preceding financial year.

EUROPEAN WATERWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,017,234
3,451,181
Adjustments for:
Taxation charged
896,258
829,157
Finance costs
53,185
69,969
Investment income
(244,350)
(76,897)
(Gain)/loss on disposal of tangible fixed assets
-
1,623
Amortisation and impairment of intangible assets
34,532
34,532
Depreciation and impairment of tangible fixed assets
284,927
285,882
Movements in working capital:
Increase in stocks
(161,736)
(32,533)
Increase in debtors
(288,882)
(83,277)
Increase/(decrease) in creditors
257,610
(848,096)
Cash generated from operations
3,848,778
3,631,541
26
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
9,312,936
(979,502)
8,333,434
Borrowings excluding overdrafts
(2,306,923)
1,061,894
(1,245,029)
7,006,013
82,392
7,088,405
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210D G BanksT J S Wood-DowT J S Wood-Dowfalsefalse07889271bus:Consolidated2023-01-012023-12-31078892712023-01-012023-12-3107889271bus:Director12023-01-012023-12-3107889271bus:CompanySecretaryDirector12023-01-012023-12-3107889271bus:CompanySecretary12023-01-012023-12-3107889271bus:Director22023-01-012023-12-3107889271bus:RegisteredOffice2023-01-012023-12-31078892712023-12-3107889271bus:Consolidated2022-01-012022-12-31078892712022-01-012022-12-3107889271bus:Consolidated2023-12-3107889271core:Goodwillbus:Consolidated2023-12-3107889271core:Goodwillbus:Consolidated2022-12-3107889271bus:Consolidated2022-12-31078892712022-12-3107889271core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-12-3107889271core:PlantMachinerybus:Consolidated2023-12-3107889271core:FurnitureFittingsbus:Consolidated2023-12-3107889271core:MotorVehiclesbus:Consolidated2023-12-3107889271core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-12-3107889271core:PlantMachinerybus:Consolidated2022-12-3107889271core:FurnitureFittingsbus:Consolidated2022-12-3107889271core:MotorVehiclesbus:Consolidated2022-12-3107889271core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3107889271core:PlantMachinery2023-12-3107889271core:FurnitureFittings2023-12-3107889271core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3107889271core:PlantMachinery2022-12-3107889271core:FurnitureFittings2022-12-3107889271core:ShareCapitalbus:Consolidated2023-12-3107889271core:ShareCapitalbus:Consolidated2022-12-3107889271core:RevaluationReservebus:Consolidated2023-12-3107889271core:RevaluationReservebus:Consolidated2022-12-3107889271core:ShareCapital2023-12-3107889271core:ShareCapital2022-12-3107889271core:RetainedEarningsAccumulatedLosses2023-12-3107889271core:ShareCapitalbus:Consolidated2021-12-3107889271core:SharePremiumbus:Consolidated2021-12-31078892712021-12-3107889271core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3107889271core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3107889271core:ShareCapital2021-12-3107889271core:RetainedEarningsAccumulatedLosses2021-12-3107889271core:RetainedEarningsAccumulatedLosses2022-12-3107889271bus:Consolidated2021-12-3107889271core:Goodwill2023-01-012023-12-3107889271core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3107889271core:PlantMachinery2023-01-012023-12-3107889271core:FurnitureFittings2023-01-012023-12-3107889271core:MotorVehicles2023-01-012023-12-3107889271core:UKTaxbus:Consolidated2023-01-012023-12-3107889271core:UKTaxbus:Consolidated2022-01-012022-12-3107889271bus:Consolidated12023-01-012023-12-3107889271bus:Consolidated22023-01-012023-12-3107889271core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-12-3107889271core:PlantMachinerybus:Consolidated2022-12-3107889271core:FurnitureFittingsbus:Consolidated2022-12-3107889271core:MotorVehiclesbus:Consolidated2022-12-3107889271bus:Consolidated2022-12-3107889271core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3107889271core:PlantMachinery2022-12-3107889271core:FurnitureFittings2022-12-31078892712022-12-3107889271core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-01-012023-12-3107889271core:PlantMachinerybus:Consolidated2023-01-012023-12-3107889271core:FurnitureFittingsbus:Consolidated2023-01-012023-12-3107889271core:MotorVehiclesbus:Consolidated2023-01-012023-12-3107889271core:Goodwillbus:Consolidated2022-12-3107889271core:Goodwillbus:Consolidated2023-01-012023-12-3107889271core:UnlistedNon-exchangeTradedbus:Consolidated2023-12-3107889271core:UnlistedNon-exchangeTradedbus:Consolidated2022-12-3107889271core:UnlistedNon-exchangeTraded2023-12-3107889271core:UnlistedNon-exchangeTraded2022-12-3107889271core:CurrentFinancialInstruments2023-12-3107889271core:CurrentFinancialInstruments2022-12-3107889271core:Non-currentFinancialInstrumentsbus:Consolidated2022-12-3107889271core:Non-currentFinancialInstruments2023-12-3107889271core:Non-currentFinancialInstruments2022-12-3107889271core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3107889271core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3107889271core:WithinOneYearbus:Consolidated2023-12-3107889271core:WithinOneYearbus:Consolidated2022-12-3107889271core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3107889271core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3107889271core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-12-3107889271core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-12-3107889271core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3107889271core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3107889271core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3107889271core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3107889271bus:PrivateLimitedCompanyLtd2023-01-012023-12-3107889271bus:FRS1022023-01-012023-12-3107889271bus:Audited2023-01-012023-12-3107889271bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3107889271bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP