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Registered number: 04293908










DESTINOLOGY LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
DESTINOLOGY LIMITED
 
 
COMPANY INFORMATION


Directors
Brian Cassidy 
Rick Green 
Duncan Wilson 




Registered number
04293908



Registered office
42 High Street

Northwood

Middlesex

HA6 1BL




Independent auditors
Sumer Auditco Limited
Chartered Accountants & Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
DESTINOLOGY LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26


 
DESTINOLOGY LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Review of developments and future prospects
 
The directors present their report and the financial statements for the year ended 31 December 2023.  
Total Transaction Value (“TTV”) for the year is £54,829,142 (2022: £52,048,834 restated).  Gross Profit for the year is £6,676,250 (2022: £7,306,574) and EBITDA before management charges is £277,523 (2022: £1,209,465).
The increase in TTV for the year is encouraging and is in keeping with the objective of the business to increase market share in the higher end travel market.  That said, the market has increasingly attracted on-line only travel distributors and accordingly margins were squeezed during the year with an associated impact in profitability.
Since the middle of 2023 the business has reacted well to the increased competitive environment by focusing more on those products that require more customer service and travel expertise than can be provided by solely on-line distributors.  This change in focus was increasingly successful towards the end of 2023 in terms of business mix and the trend has improved further during early 2024.
The Board looks forward to a successful 2024.

Principal risks and uncertainties
 

The Board meets regularly and evaluates the Company’s risk position. The principal risks and uncertainties facing the Company are detailed below.
The operational risk is primarily reliance on supply from tour operators, hoteliers, airlines, and changes in general economic and other business conditions which may adversely affect demand for tourism products.
Liquidity risk – The Company maintains sufficient funds for operational liquidity. The Board considers liquidity risk at Board meetings through monitoring of cash levels and detailed cash flow forecasts. Funding to date has been obtained through operational activities and from parent company.
Foreign currency risk – The Company incurs limited purchases denominated in foreign currencies. The Board considers foreign currency risk at Board meetings and directs an appropriate medium and longer term hedging strategy.
Interest rate risk – To the extent that non-operational finance is required it is organised through the parent company and accordingly no interest rate risk arises.
Management believe the Company can meet key business risks in respect of competition and employee retention.
Geopolitical risk – restrictions, or a loss of confidence, in travel as a result of geopolitical tensions pose a risk to the confidence of the travelling public with an associated adverse impact on the Company. When such issues arise, the Board actively monitor trends in the development of the particular issue, assess the likely impact on customer demand, and seek to maximise the offsetting impact of mitigating actions.

Page 1

 
DESTINOLOGY LIMITED
 

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

Financial key performance indicators
 
The financial indicators of the company are:

2023
2022
Variance
        £
        £
        %

Total Transaction Value

54,829,142

52,048,834

5
 
Gross Profit

6,676,250

7,306,574

(9)
 
EBITDA (before management charges)

277,523

1,209,465

(77)
 


This report was approved by the board on 19 March 2024 and signed on its behalf.



Duncan Wilson
Director

Page 2

 
DESTINOLOGY LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Principal activity

The principal activity of the Company in the period under review was that of a travel distributor.

Results and dividends

The profit for the year, after taxation, amounted to £437,004 (2022:£1,149,869).

There were no dividends paid in the year (2022: £Nil).

Directors

The directors who served during the year were:

Brian Cassidy 
Rick Green 
Duncan Wilson 

Page 3

 
DESTINOLOGY LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Employees and disabled persons

The Company is committed to a policy of recruitment and promotion on the basis of aptitude without discrimination of any kind. Management actively pursue both the employment of disabled persons whenever suitable vacancies arise and the continued employment and retraining of employees who become disabled whilst employed by the Company.
The Company's policy is to consult and discuss with employees matters likely to affect employee's interests. Information on matters of concern to employees is given through information bulletins and face-to-face meetings with management. Information on the Company's performance is maintained through a regular newsletter and bi-annual conferences. The Performance and Development Review process ensure employees are made aware of their individual contribution to the business.

Matters covered in the Strategic Report

Management's review of developments and future prospects and principal risks and uncertainties are included in the Strategic Report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Simmons Gainsford LLP, the previous auditors, have transferred their audit business to Sumer Auditco Limited who will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 19 March 2024 and signed on its behalf.
 





Duncan Wilson
Director

Page 4

 
DESTINOLOGY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DESTINOLOGY LIMITED
 

Opinion


We have audited the financial statements of Destinology Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


In 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 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.


Page 5

 
DESTINOLOGY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DESTINOLOGY LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
DESTINOLOGY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DESTINOLOGY LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:
•       the results of our enquiries of management and those charged with governance of their assessment of the
        risks of fraud and irregularities;
•       the nature of the Company, including its management structure and control systems (including the
        opportunity for management to override such controls);
•       management’s incentives and opportunities for fraudulent manipulation of the financial statements including
        the Company’s remuneration and bonus policies and performance targets; and
•       the industry and environment in which it operates.
We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.
Based on this understanding we identified the following matters as being of significance to the entity:
•       laws and regulations considered to have a direct effect on the financial statements including UK financial
        reporting standards, Company Law, tax and pension legislation, distributable profits legislation, CAA, ABTA
        and IATA regulations;
•       the timing of the recognition of commercial income;
•       management bias in selecting accounting policies and determining estimates; and
•       recoverability of debtors.
We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:
•       enquiries of management and those charged with governance as to whether the entity complies with such
        laws and regulations;
•       enquiries with the same concerning any actual or potential litigation or claims;
•       discussion with the same regarding any known or suspected instances of non-compliance with laws and
        regulation and fraud;
•       assessment of matters reported to management and the result of the subsequent investigation;
•       obtaining an understanding of the relevant controls during the period;
•       obtaining an understanding of the policies and controls over the recognition of income and testing their
        implementation during the period;
•       review documentation relating to compliance with the regulations relating to health and safety including
        health and safety certificates, and fire assessment reports;
 
Page 7

 
DESTINOLOGY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DESTINOLOGY LIMITED (CONTINUED)


•       review documentation relating to compliance with the regulations relating to the CAA, ABTA, and IATA
        including CAA and ABTA returns;
•       challenging assumptions made by management in their specific accounting policies and estimates, in
        particular in relation to booking cancellation provision; depreciation of tangible fixed assets; amortisation of
 intangible fixed assets, and reviewing impairment considerations;  
•       identifying and testing journal entries, in particular any journal entries posted with unusual account
        combinations or crediting revenue;
•       assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions
        made by management regarding the recovery of balances which remain outstanding;
•       reviewing the financial statements for compliance with the relevant disclosure requirements;
•       performing analytical procedures to identify any unusual or unexpected relationships or unexpected
        movements in account balances which may be indicative of fraud;
•       reviewing the correspondence with HMRC; and
•       evaluating the underlying business reasons for any unusual transactions.
•       reviewing intercompany balances and transactions.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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


Use of our report
 

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





Shilen Manek ACA FCCA (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Chartered Accountants
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

19 March 2024
Page 8

 
DESTINOLOGY LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
54,340,826
51,746,444

Cost of sales
  
(47,664,576)
(44,439,870)

Gross profit
  
6,676,250
7,306,574

Administrative expenses
  
(6,756,190)
(6,174,179)

Other operating income
 5 
260,000
-

Operating profit
 6 
180,060
1,132,395

Interest receivable and similar income
 9 
393,605
90,441

Profit before tax
  
573,665
1,222,836

Tax on profit
 10 
(136,661)
(72,967)

Profit for the financial year
  
437,004
1,149,869

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

The notes on pages 12 to 26 form part of these financial statements.

Page 9

 
DESTINOLOGY LIMITED
REGISTERED NUMBER: 04293908

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
173,495
107,851

Tangible assets
 12 
79,153
21,507

  
252,648
129,358

Current assets
  

Debtors: amounts falling due within one year
 13 
9,990,211
9,186,602

Cash at bank and in hand
 14 
7,326,483
7,041,927

  
17,316,694
16,228,529

Creditors: amounts falling due within one year
 15 
(15,966,068)
(15,191,617)

Net current assets
  
 
 
1,350,626
 
 
1,036,912

Total assets less current liabilities
  
1,603,274
1,166,270

  

Net assets
  
1,603,274
1,166,270


Capital and reserves
  

Called up share capital 
 18 
30,000
30,000

Profit and loss account
 19 
1,573,274
1,136,270

  
1,603,274
1,166,270


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 March 2024.




Brian Cassidy
Director

The notes on pages 12 to 26 form part of these financial statements.

Page 10

 
DESTINOLOGY LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
30,000
1,136,270
1,166,270


Comprehensive income for the year

Profit for the year
-
437,004
437,004


At 31 December 2023
30,000
1,573,274
1,603,274


The notes on pages 12 to 26 form part of these financial statements.


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


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
30,000
(13,599)
16,401


Comprehensive income for the year

Profit for the year
-
1,149,869
1,149,869


At 31 December 2022
30,000
1,136,270
1,166,270


The notes on pages 12 to 26 form part of these financial statements.

Page 11

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Destinology Limited is a private company limited by shares and is incorporated in England and Wales, registration number 04293908. The address of the registered office is 42 High Street, Northwood, Middlesex, HA6 1BL.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Brooklyn Travel Holdings Limited as at 31 December 2023 and these financial statements may be obtained from 42 High Street, Northwood, Middlesex, United Kingdom, HA6 1BL.

 
2.3

Going concern

The financial statements have been prepared on the Going Concern basis.  Management has prepared detailed financial projections that stretch out for 21 months beyond the date of signing of these accounts that support the Going Concern basis of preparation.  In these projections assumptions have been made that are supported by recent business trends in turnover and costs.

Page 12

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

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

 
2.5

Revenue


Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
The Company acts as either an Agent or a Principal when organising a client’s holiday. This is typically governed by the contractual and other arrangements between the Company and its various suppliers of airlines, cruises, hoteliers and other tour and holiday operators.
The Company acts as an Agent when it organises a client’s holiday on behalf of a third-party holiday operator. In this circumstance, only the related commission, or the difference between the sales to the client and the cost of the services purchased, is accounted for as revenue and not the total transaction value. 
The Company acts as a Principal when it assumes all the risks rewards from organising a client’s holiday. This is where the Company has control over price setting and over the procurement of the component parts of a holiday package using its own means and resources. The related total transaction value is then accounted for as revenue. 
  
Revenue is recognised on the date of booking. 
As explained in note 3, Management also make an estimate, in the form of a provision, of the impact of future booking cancellations to the gross profit margin. 

Page 13

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Interest income

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

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Intangible assets

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

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

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
5 years straight line
Fixtures and fittings
-
5 years straight line
Office equipment
-
5 years straight line

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

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

  
2.12

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 15

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Cash and cash equivalents

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

 
2.15

Creditors

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

 
2.16

Provisions for liabilities

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

 
2.17

Financial instruments

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

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

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

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

Financial liabilities

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



 
Page 16

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)

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

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.



Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 17

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements in accordance with generally accepted financial accounting principles requires the directors to make critical accounting estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The key estimates and assumptions that have a significant risk of causing material adjustments to the carrying value of assets and liabilities within the next financial year are goodwill and the provision for future cancellation of bookings. 
The Company’s revenue, and as a consequence the gross profit margin, is recognised at the date of booking. Management recognise that clients cancel or amend holiday bookings for a variety of reasons that may be particular to their individual circumstances. As these cancellations may occur in a later accounting period, Management make an estimate of their likelihood and account for this in the form of a provision for future cancellations, which has the effect of a reduction to the gross profit margin. The provision also considers the negative impact to the business of potential travel disruption. It has been included within other creditors.
Management estimate the provision for future cancellation of bookings and amendments using historical booking cancellation patterns and gross profit margin data applying certain assumptions and judgements based on their knowledge of the travel industry. Events such as the Covid pandemic which impacted the global travel industry, are extremely rare in occurrence. Management has assumed that the risk of  impact from Covid is low and do not consider it appropriate to provide for the impact to bookings of such unexpected future events until they arise and can be reliably assessed or measured. However, they consider that there could be localised experience of travel disruption to their customers that may occur from time to time and they have included an assumption of this within the provision for future cancellations. Management monitor the adequacy of this provision on a regular basis.


4.


Turnover

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


2023
2022
£
£

Sales as Principal
54,274,238
51,710,157

Commission sales as Agent
66,588
36,287

54,340,826
51,746,444


Analysis of turnover by country of departure:

2023
2022
£
£

United Kingdom
54,340,826
51,746,444

54,340,826
51,746,444


Page 18

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Inter-company recharge of non-attributable cost
260,000
-

260,000
-



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Tangible fixed assets - depreciation
8,106
3,184

Intangible fixed assets - amortisation
29,356
13,886

Operating lease rentals
97,205
88,386


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
34,000
24,000

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

Page 19

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
3,966,339
3,667,722

Social security costs
416,816
388,260

Cost of defined contribution scheme
113,223
91,157

4,496,378
4,147,139


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


        2023
        2022
            No.
            No.







Directors
3
3



Sales
46
42



Operations
38
35



Administrative
24
20

111
100


9.


Interest receivable

2023
2022
£
£


Bank interest receivable
393,605
90,441

393,605
90,441

Page 20

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the period
108,099
-


Total current tax
108,099
-

Deferred tax


Origination and reversal of timing differences
28,562
72,967

Total deferred tax
28,562
72,967


Taxation on profit on ordinary activities
136,661
72,967

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 -lower than) the standard rate of corporation tax in the UK of 25% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
573,665
1,222,836


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 -19%)
143,416
232,339

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,261
1,244

Capital allowances for year/period in (excess of)/less than depreciation
(1,217)
(1,192)

Adjustments to tax charge in respect of prior periods
-
76,145

Changes in provisions leading to an increase (decrease) in the tax charge
-
(17)

Increase/(decrease) of tax due to a change in tax rates
(6,799)
-

Difference between current and future tax rate
-
(19,319)

Group relief (claimed)/surrendered
-
(216,233)

Total tax charge for the year
136,661
72,967

The Company has tax losses of £Nil (2022: £199,095) carried forward which can be offset against its future taxable profits. 

Page 21

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Intangible assets




Development costs
Computer software
Total

£
£
£



Cost


At 1 January 2023
4,173,445
746,200
4,919,645


Additions
-
95,000
95,000



At 31 December 2023

4,173,445
841,200
5,014,645



Amortisation


At 1 January 2023
4,173,445
638,349
4,811,794


Charge for the year on owned assets
-
29,356
29,356



At 31 December 2023

4,173,445
667,705
4,841,150



Net book value



At 31 December 2023
-
173,495
173,495



At 31 December 2022
-
107,851
107,851



Page 22

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Leasehold improvements
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2023
245,487
396,773
641,440
1,283,700


Additions
35,010
-
30,742
65,752



At 31 December 2023

280,497
396,773
672,182
1,349,452



Depreciation


At 1 January 2023
245,487
396,773
619,933
1,262,193


Charge for the year on owned assets
1,459
-
6,647
8,106



At 31 December 2023

246,946
396,773
626,580
1,270,299



Net book value



At 31 December 2023
33,551
-
45,602
79,153



At 31 December 2022
-
-
21,507
21,507


13.


Debtors

2023
2022
£
£


Trade debtors
9,406,010
8,891,969

Amounts owed by group undertakings
260,000
-

Other debtors
79,928
94,731

Prepayments and accrued income
190,502
96,021

Deferred taxation
51,932
80,494

Derivative financial instruments
1,839
23,387

9,990,211
9,186,602


Page 23

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
7,326,483
7,041,927

7,326,483
7,041,927



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
13,582,077
12,828,839

Corporation tax
58,099
-

Other taxation and social security
122,841
122,272

Other creditors
1,604,699
1,546,763

Accruals and deferred income
515,351
635,152

Derivative financial instruments
83,001
58,591

15,966,068
15,191,617



16.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,839
23,387


Financial liabilities


Financial liability measured at fair value through profit or loss
(83,001)
(58,591)


Financial assets and liabilities measured at fair value through profit or loss comprise of derivative financial instruments.
The fair value of Destinology's foreign currency forwards and options at the year end date is a net liability of £81,162 (2022: £35,204 net liability). These forward contracts and options are held to hedge the Company's exposure to foreign currencies which are principally US Dollar, Arab Emirate Dirham, Euro, South African Rand, and Thai Baht.

Page 24

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Deferred taxation




2023


£






At beginning of period
80,494


Charged to profit or loss
(28,562)



At end of period
51,932

The deferred tax asset is made up as follows:

2023
2022
£
£


Depreciation in excess of capital allowances
45,999
74,852

Pension liability
5,933
5,642

51,932
80,494


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



3,000,000 (2022 -3,000,000) Ordinary shares of £0.01 each
30,000
30,000



19.


Reserves

Profit and loss account

The profit & loss account comprises the balance of distributable profits accumulated over the life of the Company.


20.


Contingent liabilities

The Company, together with its fellow group companies, has provided a guarantee over its assets to the Civil Aviation Authority to meet any future obligations and liabilities incurred by the group companies as ATOL license holders.

Page 25

 
DESTINOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund.
The pension cost charge represents contributions payable by the Company to the fund and amounted to £113,223 (2022: £91,157).
Contributions totalling £23,727 (2022: £22,567) were payable to the fund at the balance sheet date and are included in creditors.


22.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
84,844
84,844

Later than 1 year and not later than 5 years
314,271
339,376

Later than 5 years
-
59,739

399,115
483,959


23.


Related party transactions

The Company has taken advantage of the exemption available in FRS102 not to disclose transactions entered into between two or more members of a group, as the Company is a wholly owned subsidiary undertaking of the Group to which it is a party to the transactions.


24.


Controlling party

The Company was a wholly owned subsidiary of Brooklyn Travel Limited.
The indirect parent undertaking of the Company is Brooklyn Travel Holdings Limited, which is the largest and smallest group to consolidate the Company's results. Both Companies have their registered office at 42 High Street, Northwood, Middlesex, United Kingdom, HA6 1BL.
The parent undertaking of Brooklyn Travel Holdings Limited is Zachary Asset Holdings Limited, a company incorporated in Jersey.
The ultimate controlling party of the group is the Haller family.
 
Page 26