Company registration number 01296047 (England and Wales)
EUROPEAN WATERWAYS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EUROPEAN WATERWAYS LIMITED
COMPANY INFORMATION
Director
T J S Wood-Dow
Secretary
T J S Wood-Dow
Company number
01296047
Registered office
55 Station Road
Beaconsfield
Buckinghamshire
United Kingdom
HP9 1QL
Auditor
Rouse Audit LLP
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
EUROPEAN WATERWAYS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
EUROPEAN WATERWAYS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of providing floating hotels on the waterways of Europe, selling holidays on third party boats and overseeing the management of subsidiary companies.

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 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 LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of providing floating hotels on the waterways of Europe, selling holidays on third party boats and overseeing the management of subsidiary companies.

Director

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

T J S Wood-Dow
Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £5,000,000. The director does not recommend payment of a further dividend.

Post reporting date events

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

Future developments

The company 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 company will continue to seek additional vessels of the appropriate standard to add to the fleet.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

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

Statement of disclosure to auditor

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

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

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues 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 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF EUROPEAN WATERWAYS LIMITED
- 4 -
Opinion

We have audited the financial statements of European Waterways Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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 director 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 director is 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 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF EUROPEAN WATERWAYS LIMITED (CONTINUED)
- 5 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF EUROPEAN WATERWAYS LIMITED (CONTINUED)
- 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 member 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 member those matters we are required to state to the member 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 member, 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 LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
14,122,916
12,551,936
Cost of sales
(14,056,010)
(11,534,500)
Gross profit
66,906
1,017,436
Administrative expenses
(1,733,837)
(1,348,003)
Other operating income
2,344,943
2,372,388
Operating profit
4
678,012
2,041,821
Interest receivable and similar income
8
3,643,063
76,699
Interest payable and similar expenses
9
(21,853)
(20,384)
Profit before taxation
4,299,222
2,098,136
Tax on profit
10
(211,108)
(320,008)
Profit for the financial year
4,088,114
1,778,128

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

EUROPEAN WATERWAYS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
4,088,114
1,778,128
Other comprehensive income
-
-
Total comprehensive income for the year
4,088,114
1,778,128
EUROPEAN WATERWAYS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
43,018
46,764
Investment property
13
386,000
386,000
Investments
14
157,130
166,083
586,148
598,847
Current assets
Stocks
16
5,000
-
Debtors
17
1,692,500
2,175,593
Cash at bank and in hand
7,973,200
9,192,310
9,670,700
11,367,903
Creditors: amounts falling due within one year
18
(7,936,640)
(8,728,485)
Net current assets
1,734,060
2,639,418
Total assets less current liabilities
2,320,208
3,238,265
Provisions for liabilities
Deferred tax liability
20
31,803
37,974
(31,803)
(37,974)
Net assets
2,288,405
3,200,291
Capital and reserves
Called up share capital
22
40,600
40,600
Revaluation reserve
122,564
122,564
Profit and loss reserves
2,125,241
3,037,127
Total equity
2,288,405
3,200,291

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

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:
T J S Wood-Dow
Director
Company registration number 01296047 (England and Wales)
EUROPEAN WATERWAYS LIMITED
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
1,725,899
1,889,063
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,778,128
1,778,128
Dividends
11
-
-
(466,900)
(466,900)
Balance at 31 December 2022
40,600
122,564
3,037,127
3,200,291
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
4,088,114
4,088,114
Dividends
11
-
-
(5,000,000)
(5,000,000)
Balance at 31 December 2023
40,600
122,564
2,125,241
2,288,405
EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

European Waterways Limited is a private company limited by shares incorporated in England and Wales. The registered office is 55 Station Road, Beaconsfield, Buckinghamshire, United Kingdom, HP9 1QL.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

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

 

European Waterways Limited is a wholly owned subsidiary of European Waterways Group Limited and the results of European Waterways Limited are included in the consolidated financial statements of the parent company which are available from 55 Station Road, Beaconsfield, Buckinghamshire, HP9 1QL.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable during the year, exclusive of Value Added Tax, in respect of charters and commission earned on charters organised on behalf of third parties. Revenue is recognised at the date of the charter.

1.4
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:

Plant and machinery
4% straight line
Fixtures, fittings and equipment
25% straight line
EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

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 credited or charged to profit or loss.

1.5
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. Changes in fair value are recognised in profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.7
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.

1.8
Financial instruments
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Derivatives

Forward contracts are initially recognised at fair value at the date a contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the forward contract is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A forward contract with a positive fair value is recognised as a financial asset, whereas a forward contract with a negative fair value is recognised as a financial liability.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 when the company has 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.

1.11
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.

1.12
Retirement benefits
The company contributes to defined contribution schemes of the employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.13
Leases

Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease.

1.14
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.

1.15

Group accounts

The financial statements present information about the company as an individual undertaking and not about its group. Consolidated accounts have been prepared by the parent company, European Waterways Group Limited.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 15 -
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.

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

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

2023
2022
£
£
Turnover analysed by class of business
Sales
14,122,916
12,551,936
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(179,025)
(863,520)
Depreciation of owned tangible fixed assets
10,005
9,508
(Profit)/loss on disposal of tangible fixed assets
-
1,623
Operating lease charges
44,681
49,405
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
34,000
25,380
6
Employees

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

2023
2022
Number
Number
Directors
3
2
Operations
9
9
Administrative
13
14
25
25
EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
670,692
562,208
Social security costs
59,714
58,033
Pension costs
48,901
46,937
779,307
667,178
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
139,757
112,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
241,326
75,173
Other interest income
1,737
1,526
Total interest revenue
243,063
76,699
Income from fixed asset investments
Income from shares in group undertakings
3,400,000
-
0
Total income
3,643,063
76,699
9
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
21,853
20,384
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
217,279
321,880
EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
2023
2022
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
(6,171)
(1,872)
Total tax charge
211,108
320,008

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
4,299,222
2,098,136
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,011,177
398,646
Effect of change in corporation tax rate
31,797
-
0
Group relief
-
0
(77,622)
Permanent capital allowances in excess of depreciation
(31,803)
(567)
Dividend income
(799,699)
-
0
Remeasurement of deferred tax
(364)
(449)
Taxation charge for the year
211,108
320,008
11
Dividends
2023
2022
£
£
Final paid
5,000,000
466,900
EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 January 2023
127,414
267,776
395,190
Additions
-
0
6,816
6,816
Disposals
-
0
(30,338)
(30,338)
At 31 December 2023
127,414
244,254
371,668
Depreciation and impairment
At 1 January 2023
96,835
251,591
348,426
Depreciation charged in the year
5,097
4,908
10,005
Eliminated in respect of disposals
-
0
(29,781)
(29,781)
At 31 December 2023
101,932
226,718
328,650
Carrying amount
At 31 December 2023
25,482
17,536
43,018
At 31 December 2022
30,579
16,185
46,764
13
Investment property
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, T J S Wood-Dow and D G Banks 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.

14
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
15
155,545
155,545
Unlisted investments
1,585
10,538
157,130
166,083
EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 19 -
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
155,545
10,538
166,083
Additions
-
679
679
Valuation changes
-
868
868
Disposals
-
(10,500)
(10,500)
At 31 December 2023
155,545
1,585
157,130
Carrying amount
At 31 December 2023
155,545
1,585
157,130
At 31 December 2022
155,545
10,538
166,083
15
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
Belle Epoque Charters 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
16
Stocks
2023
2022
£
£
Raw materials and consumables
5,000
-
17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
29,499
-
0
Corporation tax recoverable
169,684
-
0
Amounts owed by group undertakings
1,301,829
2,003,598
Other debtors
85,212
96,167
Prepayments and accrued income
106,276
75,828
1,692,500
2,175,593
EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
18
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
28,207
5,585
Trade creditors
33,262
30,968
Amounts owed to group undertakings
3,825,175
4,475,852
Corporation tax
-
0
296,737
Other taxation and social security
168,557
53,273
Other creditors
17,463
60,715
Accruals and deferred income
3,863,976
3,805,355
7,936,640
8,728,485
19
Creditors: amounts falling due after more than one year
2023
2022
£
£

There is a cross guarantee in place in favour of loans amounting to £891,667 (2022: £1,181,667) held by the parent company European Waterways Group Limited, granting a fixed and floating charge over the assets of the company.

20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
15,675
10,923
Capital gains
16,128
27,051
31,803
37,974
2023
Movements in the year:
£
Liability at 1 January 2023
37,974
Credit to profit or loss
(6,171)
Liability at 31 December 2023
31,803
EUROPEAN WATERWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
48,901
46,937

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

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

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

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

Included in other debtors is a balance of £15,896 (2022: £4,678) due from the directors. These directors' loan accounts are interest free and unsecured. During the year the total amount of advances to the directors were £11,217 (2022 : £4,740) to the directors.

25
Ultimate controlling party

The company's ultimate parent undertaking is European Waterways Group Limited, a company incorporated in England and Wales. The registered office of European Waterways Group Limited is 55 Station Road, Beaconsfield, Bucks, HP9 1QL.

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

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