Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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BROOKLYN TRAVEL HOLDINGS LIMITED
COMPANY INFORMATION
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BROOKLYN TRAVEL HOLDINGS LIMITED
CONTENTS
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BROOKLYN TRAVEL HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The Group’s Total Transaction Value (“TTV”) for the year is £269,169,576 (2022: £209,196,397 restated) and Turnover for the year is £173,413,987 (2022: £134,877,109). Gross Profit for the year is £40,162,137 (2022: £30,368,512) and EBITDA is £10,017,458 (2022: £6,825,343). Operating Profit for the year is £8,389,126 (2022: £5,361,148). The Group results are the aggregation of separate companies that operate significant operations across the travel distribution market including, the general holiday market, Lapland holidays, villas, cruise, long-haul, golf, and business travel. All of the businesses saw a significant uptick in Total Transaction Value (“TTV”) in 2023 relative to 2022. The Board’s view is that the continued trend of growing profitability reflects the success of the growth strategy which has been the foundation of the Group for a number of years albeit punctuated by the Covid pandemic. The success of the year ending 31 December 2023, and a strong start to 2024 continues to support the sense that travel demand remains strong in a post-Covid environment and that the general public’s desire to travel remains as strong as ever. Management is mindful that the current economy wide cost of living pressures may have a dampening effect on discretionary spending and, should this prove to be the case, will take appropriate action on product and duration mix to minimise any impact. With a view to increasing flight acquisition expertise within the Group, a flight distribution company was acquired in December 2023. In summary, the Board is very satisfied with the trading results for 2023 and believes it has every reason to look forward to further growth in 2024 both organically and through acquisition.
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BROOKLYN TRAVEL HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The Board meets regularly and evaluates the Group’s risk position. The principal risks and uncertainties facing the Group are detailed below.
The risks relating to the travel businesses are primarily its 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 Group 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, a senior debt facility and from shareholders. Foreign currency risk – The Group incurs substantial purchases denominated in Euros and US Dollars. The Board considers foreign currency risk at Board meetings and directs an appropriate medium and longer term hedging strategy. Interest rate risk – The Group finances its operations through a mixture of equity and borrowings. The Group has historically borrowed in Sterling only. The Group’s senior debt facility attaches to it a SONIA (Sterling Overnight Index Average) based interest rate and the Board considers hedging options at each Board meeting. Management believe the Group 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 Group. 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.
The financial indicators of the company are:
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BROOKLYN TRAVEL HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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BROOKLYN TRAVEL HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
This section describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) Companies Act 2006 in exercising their duty to promote the success of the Company for the benefit of its stakeholders as a whole. We consider the company's major stakeholders to be our customers, employees, suppliers, and shareholders.
Having regard to the likely consequences of any decision in the long term The Board is mindful that its strategic decisions can have long term implications for the business and its stakeholders and these implications are carefully assessed. Such assessment includes ensuring that the long term outlook for developments in the travel market (in respect of product, method of distribution, key and growing suppliers) is at the forefront of long term strategic decisions. Having regard to the interests of the Group’s employees The Group’s senior management are very much open and available to the employees of the Group. This openness is supplemented by regular meetings with business unit managers that have a perpetual agenda item designed to encourage 360 degree information flow across the Group. The Board also host Q&A sessions with various employee Groups. Having regard to the need to foster the Group’s business relationships with customers, suppliers and others The Group’s marketing activities are focussed on products about which our clients wish to be informed and, where appropriate, on those products upon which our suppliers are focussing. At all times the operational requirements of suppliers are respected. Having regard to the impact of the Group’s operations on the community and the environment The Group is very much a light touch operation in respect of the community and the environment but, where appropriate, community involvement is supported and all environmental regulations are respected. Having regard to the desirability of the Group maintaining a reputation for high standards of business conduct The Board recognises the importance of operating a strong corporate governance framework and exercises strong oversight over the Group’s activities in this respect.
This report was approved by the board on 19 March 2024 and signed on its behalf.
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BROOKLYN TRAVEL HOLDINGS 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.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 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.
The profit for the year, after taxation, amounted to £5,939,016 (2022 - £3,158,240).
There were no dividends paid during the year (2022: £Nil).
The directors who served during the year were:
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BROOKLYN TRAVEL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group'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 Group'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.
Management's review of developments and future prospects and principal risks and uncertainties are included in the Strategic Report.
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
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BROOKLYN TRAVEL HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOKLYN TRAVEL HOLDINGS LIMITED
We have audited the financial statements of Brooklyn Travel Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 or the 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.
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BROOKLYN TRAVEL HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOKLYN TRAVEL HOLDINGS LIMITED (CONTINUED)
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 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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BROOKLYN TRAVEL HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOKLYN TRAVEL HOLDINGS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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 Group, inculding its management structure and control systems (including the opportunity for management to override such controls); • management's incentives and opportunities for fraudulant manipulation of the financial statements including the Group's remuneration and bonus policies and performance targets; and • the industry and environment in which it operates We also considered UK and the foreign group companies' local 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 Group: • laws and regulations considered to have a direct effect on the financial statements including UK and the foreign group companies' 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 including the auditors of significant components.
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BROOKLYN TRAVEL HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOKLYN TRAVEL HOLDINGS LIMITED (CONTINUED)
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulation) comprised: • enquiries of management and those charged with governance as to whether the Group companies comply 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; • 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 managment 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 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. 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.
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BROOKLYN TRAVEL HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOKLYN TRAVEL HOLDINGS LIMITED (CONTINUED)
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
14th Floor
33 Cavendish Square
W1G 0PW
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BROOKLYN TRAVEL HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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BROOKLYN TRAVEL HOLDINGS LIMITED
REGISTERED NUMBER: 11554291
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023
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BROOKLYN TRAVEL HOLDINGS LIMITED
REGISTERED NUMBER: 11554291
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 March 2024.
The notes on pages 21 to 45 form part of these financial statements.
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BROOKLYN TRAVEL HOLDINGS LIMITED
REGISTERED NUMBER: 11554291
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements. The loss after tax of the parent company for the year was £1,063,728 (2022: £1,079,013)
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 21 to 45 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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BROOKLYN TRAVEL HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BROOKLYN TRAVEL HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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BROOKLYN TRAVEL HOLDINGS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Brooklyn Travel Holdings Limited is a private company limited by shares, and is incorporated in England and Wales. The address of its registered office is 42 High Street, Northwood, Middlesex, United Kingdom, HA6 1BL.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. In preparing the separate financial statements of the parent company, advantage has been taken of the disclosure exemptions available in FRS 102 whereby no Statement of Cash Flows has been presented for the parent company. The results of the dormant indirect subsidiaries are not consolidated into the financial statements. See Note 15 for more details.
The consolidated financial statements, and each of the subsidiary 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 for each of the subsidiary companies.
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Each trading group subsidiary 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 subsidiary and its various suppliers of airlines, cruises, hoteliers and other tour and holiday operators. A group subsidiary 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. A group subsidiary acts as a Principal when it assumes all the risk and rewards of organising a client’s holiday. This is where the subsidiary has control over price setting and over the procurement of the component parts of a holiday package using its own means and resources to arrange the package. The related total transaction value is then accounted for as revenue. All trading subsidiaries, with one exception, recognise revenue on the date of booking. As explained in note 3, for these group subsidiaries, Management also make an estimate, in the form of a provision, of the impact of future booking cancellations to the gross profit margin. In the case of the exception noted above, the directors consider it appropriate for this particular subsidiary to continue to recognise its revenue on a departure date basis. This subsidiary acts as a Principal where the total transaction value is accounted for as revenue. The operation differs to the other subsidiaries of the group as, for a majority of its revenue base, it self-manages the client holiday as the main supplier.
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life of 20 years. Computer software Computer software costs recognised as 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. These assets are amortised on a straight line basis over their a useful economic life of 5 years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its net realisable value. The impairment loss is recognised immediately in profit or loss.
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
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.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Goodwill is amortised over an original estimated useful life of 20 years. Such useful life is determined by the assets’ ability to continue to generate recurring revenue to the business over the period. The directors continuously review and assess the likelihood of impairment and are of the opinion that the the carrying value of goodwill, based on discounted cash flows is appropriate. With the exception of one trading subsidiary which accounts for its revenue on a departure date basis, all the other trading subsidiaries making up the majority of the group’s revenue and related gross profit margin, account for their revenue 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 judgments 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 and, as was the case, Covid caused a heightened rate of cancellation over the last couple of years. Management have assumed that the risk of continued impact from Covid is low. Management 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. This provision applies for all revenue accounted for on a booking date basis only. Management monitor the adequacy of this provision on a regular basis.
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 30
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 31
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.Taxation (continued)
There were no factors that may affect future tax charges.
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 35
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 36
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 37
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 38
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 40
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 41
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 42
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 43
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
24.Share capital (continued)
The movement of preference shares in the year represents an alignment for the immaterial historic difference on the actual value of the shares.
The redeemable preference shares carry a compounding preferential dividend of 10% per annum. These shares are redeemable ten years from the issue date of 2 November 2018 or on an earlier date at the option of the company for an amount equal to the issue price plus all unpaid accrued dividends. If the Company is unable to redeem these shares after ten years the Company shall redeem them as soon as it is able to do so. Included in accruals and deferred income due more than one year is accrued preference share dividend of £3,354,472 (2022: £3,850,187).
Share premium account
Foreign exchange reserve
The Group companies have provided a guarantee over their assets to the Civil Aviation Authority to meet any future obligations and liabilities incurred by the group companies as ATOL license holders.
Stewart Travel Limited has provided a bond of £nil (2022: £114,408) as guarantee to the Association of British Travel Agents ("ABTA"). Canterbury Travel (London) Limited has provided a bond of £nil (2022: £29,500) as guarantee to the Association of British Travel Agents ("ABTA"). At the balance sheet date, Stewart Travel Limited held £1,730,000 (2022: £Nil) in a fund account to meet any future obligations from the International Air Transport Association (IATA) when they arise. The amount is administrated by the IATA and included within cash and bank, note 18. At the balance sheet date, Stewart Travel Limited held £303,342 (2022: £178,484) in a trust account to meet any future obligations with customers.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £387,688 (2022: £372,665).
Contributions totalling £76,658 (2022: £72,819) were payable to the fund at the balance sheet date and are included in creditors.
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BROOKLYN TRAVEL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The company's immediate parent undertaking is Zachary Asset Holdings Limited, which is incorporated in Jersey.
The ultimate controlling party of the group is the Haller family.
Page 45
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