Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
COMPANY INFORMATION
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INSIDE TRAVEL GROUP LIMITED
CONTENTS
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INSIDE TRAVEL GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their Strategic Report for the period ended 31 December 2023.
Inside Travel Group Limited arranges expertly designed, seamlessly delivered cultural adventures for clients who value a caring, personalised service at every interaction. The Company has two brands: InsideJapan Tours and InsideAsia Tours.
This was the first full year since the COVID-19 pandemic that saw all our destinations and source markets fully re-opened for travel. Our strategy during the pandemic was to ensure we would be ready for the return of travel and the future growth of the business by:
∙Retaining key staff and knowledge
∙Providing an excellent service to customers
∙Seeking external investment and expertise
This put us in a good place to deliver a full program of trips in 2023 with over 10,700 passengers travelling with us to Japan, South Korea, and SE Asia. Our investment in customer service enabled us to provide 24/7/365 global customer support for our customers and we recorded a customer NPS of 86 for the year.
The Company received the following industry and consumer recognition: UK TTG Luxury Awards 2023 Specialist Luxury Tour Operator of the Year – Winner – InsideJapan Tours Wanderlust Readers Travel Awards 2023 - Best Specialist Tour Operator - #4 - InsideAsia Tours US Conde Nast Traveler 2023 Readers Choice Awards - Best Travel Specialists in the World 2023 - #6 InsideJapan Tours Travel + Leisure The Worlds’ Best Awards - Readers’ Tour Operators of 2023 - #10 InsideJapan Tours AU National Travel Industry Awards (NTIA) - Most Outstanding Tour Operator (Specialist) - Finalist National Travel Industry Awards (NTIA) - Rookie of the Year - Finalist - InsideJapan Tours Travel Weekly (AU) - Women in Travel Awards - Finalist – InsideJapan Tours
We rebuilt the team during this period, adding over 80 new team members. Our Sales function was strengthened with significant new hires creating a scalable global team. In our Marketing team we built our digital marketing and trade capabilities, and in Finance we invested in a commercial finance function. Our Q4 2023 staff survey resulted in an employee NPS of 28 (regarded as a ‘Good’ score).
The Company has experienced a strong start to the new financial year with demand remaining buoyant and sales targets being hit.
The Company continues to focus on growing its InsideAsia Tours brand with new destinations planned for 2024 and investment in its website. Internal capacity will continue to grow with the team projected to expand by a further 50 heads in 2024.
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INSIDE TRAVEL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Our vision is to build a global ‘cultural adventure’ tour operator which leads the travel industry towards a more sustainable future and protects travel for future generations.
We believe that travel can be a force for social and economic good and we prioritise using smaller local suppliers and building long-term relationships to maximise the positive impact of our trips. Our main projects are listed below using our Purpose, Planet, People framework.
Purpose
B Corp Accreditation Certified B Corporations are business that meet that highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. We became a certified B Corp in May 2023 achieving 80.3 points. We have a company-wide action plan to achieve at least 90 points when we recertify in 2026. Following certification, we joined Travel by B Corp in June 2023. This collection of B Corp travel companies aims to help UK consumers travel better by choosing B Corp certified travel businesses. We are active members of the Learning and Sharing sub-group. Travelife Partner Renewal Travelife is a leading training, management and certification initiative for tourism companies committed to reaching sustainability. We recertified as Travelife Partner for our UK branch in July 2023 and recertified for our USA, Japan and Australia branches in March 2024. Staff Sustainability Training A comprehensive internal sustainability training programme is part of the onboarding programme for all staff and this was significantly updated and expanded in 2023. As of 31 December 2023, 71% of active staff had completed the final assessment of this programme. Accommodation Sustainability Rating Based on our Supplier Sustainability Survey in Japan in 2022, and by using other travel sustainable ratings, 59% of InsideAsia Tours accommodation and 17% of core Japan accommodation has a Silver or above rating in our product database. We will be integrating the ratings into staff training in 2024. Community Tourism In 2023 we operated eight “Hidden Japan” Small Group Tours with a total of 105 customers visiting Joge town (Hiroshima Prefecture, Japan). The project supports and engages with the local community in this area which has suffered from depopulation and provides our clients with an opportunity to get off the beaten path. We plan to include a community tourism experience in every small group tour for 2026.
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INSIDE TRAVEL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Planet
Measurement We worked with carbon consultants ecollective to measure our Scope 1, 2, and 3 emissions, including both our business and client trip emissions measured in carbon dioxide equivalent (C02e), a standard unit for measuring carbon footprints. .
Carbon offset
We promote lower carbon modes of travel in destination and minimise our carbon footprint where we can. However, we acknowledge that there is a significant CO2e footprint to international travel, especially from flights, and CO2e cannot be eliminated at all our premises. We include a carbon offset for all bookings over four nights in duration, based on the emissions of a typical trip’s flights and ground arrangements (accommodation, transport, activities) and regardless of whether customers book their flights through us or independently. In 2023, 50,000 tonnes of emissions were offset through Climate Impact Partners’ Household Biogas Project in Vietnam and Renewable Wind Energy Project in India. Reduce We have a target to reduce our carbon emissions by 50% by 2030, or around 8% per year, which is predicated on science-based targets. We are focusing on three key decarbonisation Scope 3 areas: international flights, internal flights, and transport on our trips. Regenerate In 2023 we donated £6,000 to nature positive projects including:
∙330+ native trees planted along Kinabatangan River in Malaysian Borneo.
∙Protective equipment for reducing human-bear conflict in Karuizawa, Japan.
∙Equipment to protect the Japanese Giant Salamander in Tottori, Japan.
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INSIDE TRAVEL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Transport Card Donation Scheme
Our InsideJapan Tour clients can donate the remaining credit from their used transport cards to Japan’s first foodbank, Second Harvest, using a pre-paid envelope we provide them with. During 2023 our clients donated 2,768 cards with a total value of £10,167. This is equivalent to the distribution of over 23,175 meals. Volunteering All employees are entitled to one paid day of volunteering leave a year. We offer volunteering opportunities in each branch and encourage employees to volunteer with projects important to them. Charity partnerships ITG has an annually renewed board commitment to give back 5% of pre-tax profits to various charities in both our source and destination markets that help families in difficult circumstances to get a well-needed break away from home. The 2023 give back was £128,000. In addition to this, staff and Company donations raised a further £9,760 for our charity partners.
The management of the business and execution of the Company’s strategies are subject to a number of risks. The key business risks and uncertainties of the Company are considered below:
∙Geo-political events and natural disasters - our customers travel to politically stable countries in Japan and South-East Asia. The Company has a management infrastructure to review potential natural disasters, crisis management plans in place, and a team experienced in dealing with natural disasters.
∙Financial risk – the Company operates in a sector that is exposed to financial risk caused by the volatility of foreign currency exchange rates. The Company is directly exposed to movements in exchange rates as a large proportion of the travel components it sells are denominated in foreign currency. This risk is mitigated by hedging.
∙Commercial relationships – the Company has well established and close relationships with suppliers and risk is spread by not placing an over-reliance on any one supplier in any one area. The management team meets regularly with suppliers to maintain good working relationships and to understand the suppliers’ financial position.
∙Information technology – the Company is heavily reliant upon information technology. Investment is continually being made to ensure the Company has advanced and efficient systems in place to speed up processing, reduce costs and enhance reporting. However, there is a risk if there is a major failure, particularly if it were to affect selling systems. Procedures are therefore in place to minimise the time the selling system is unavailable in the event of such a failure.
∙Consumer confidence – the demand for tailormade and small group tour travel is affected by local and global economic conditions. The directors believe the Company can adapt quickly to changes in outbound demand and local market conditions as it continues to be flexible in its customer proposition to suit the economic climate. Notwithstanding, a prolonged period of booking slowdown, such as evidenced by the COVID-19 outbreak, would adversely affect financial results.
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INSIDE TRAVEL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors consider turnover, gross profit, operating profit, client satisfaction (based on ‘excellent’ and ‘good’ reviews), and employee NPS to be key performance indicators.
The position for the current and prior reporting periods are as follows: Performance is in line with the directors' expectations and demonstrates strong demand in each of our markets.
The principal pillars for growth are:
∙our market leading position for travel to Japan
∙growing the InsideAsia brand with new destination countries
∙our presence in three core sales markets - the UK, USA, and Australia
∙our high levels of customer satisfaction and excellent reputation with the travel trade
∙taking an industry leading apporach to sustainability and positive impact
Demand for the Inside Travel Group style of ‘Cultural Adventure’ travel - pairing sightseeing with cultural experiences and a slice of everyday local life - to Japan and Asia continues to be popular. By increasing our profile through PR and using digital marketing to reach more people who are looking for our style of travel, we will bring new customers into the business. By providing a high level of customer service and using our specialist knowledge to create great travel experiences, we will encourage these customers to repeat with us and recommend us. Further we will continue to invest in our teams, training, delivery capabilities, and systems and IT systems to support the strategy. From enquiries and booking levels in 2024 to date, the Company is well positioned to continue its growth trajectory.
This report was approved by the board and signed on its behalf.
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INSIDE TRAVEL GROUP 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 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 judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Further information on the business review for the Company can be found in the Strategic Report.
The profit for the year, after taxation, amounted to £4,269,368 (2022 - loss £2,267,830).
The Company paid dividends of £nil (prior period: £nil) during the period. No dividends have been declared post period-end (prior period: £nil).
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INSIDE TRAVEL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors who served during the year were:
The Company has emerged strongly from the pandemic and the directors are pleased with the significant upturn in demand and evidence of capacity recovery in destination markets. Further information on the future plans for the Company can be found in the Strategic Report.
The Company operates branches located in the USA, Australia and Japan.
The auditors, Xeinadin Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INSIDE TRAVEL GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INSIDE TRAVEL GROUP LIMITED
We have audited the financial statements of Inside Travel Group Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the 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 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.
In forming our opinion, we have considered the adequacy of the disclosures made in the financial statements concerning the Company's ability to continue as a going concern. The Company reported a profit of £4,269,368 for the year ended 31 December 2023 and, as of that date, the Company had net liabilities of £4,370,342. We draw your attention to note 2.4.
The financial statements do not include any adjustments that would result from a failure to continue as a 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.
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INSIDE TRAVEL GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INSIDE TRAVEL GROUP 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 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.
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.
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INSIDE TRAVEL GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INSIDE TRAVEL GROUP 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 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:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations;
∙Reviewing minutes of meetings of those charged with governance;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the Company is subject to many other laws and regulations where the consequence of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the Company’s license to operate. We identified the following areas as those most likely to have such an effect: health and safety including data protection laws, anti-bribery, money laundering, employment law and ATOL, ABTA and ABTOT compliance recognising the nature of the Company’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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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INSIDE TRAVEL GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INSIDE TRAVEL GROUP 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 Auditor
Becket House
36 Old Jewry
EC2R 8DD
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INSIDE TRAVEL GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
REGISTERED NUMBER: 04094031
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf:
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INSIDE TRAVEL GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Inside Travel Group Limited is a private company limited by shares incorporated in England and Wales, United Kingdom.
The registered address of the Company is given on the Company Information page of these financial statements. The principal activity of the Company continued to be that of marketing and arranging accomodation and itineraries for tourist visits to Asia.
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 management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Revenue represents income received or receivable net of Value Added Tax, for tours departing during the financial year, recognised on a departure date basis.
Under section 402 of the Companies Act 2006, the Company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries can be excluded from consolidation.
During the pandemic, the Company sought to retain key staff to enable it to quickly benefit from the resumption of tourist travel to Japan. Since unrestricted tourist travel resumed on 11 October 2022 this approach has been borne out by the rapid recovery of booking numbers and by the Company’s performance. The Company has also been successful in raising additional external funding from shareholders and has reduced bank debt. The directors have prepared forecasts taking into account the Company’s current position, and future expected performance, and are confident that the company will be able to continue to meet its liabilities as they fall due for a period of not less than 12 months from the date these accounts are signed.
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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:
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.
The Company uses foreign currency forward contracts to manage its exposure to cash flow risk on its foreign currency receipts and payments. These derivatives are measured at fair value at each reporting date.
To the extent the cash flow hedge is effective, movements in fair value are recognised in other comprehensive income and presented in a separate cash flow hedge reserve. This amount is reclassified from the cash flow hedge reserve to profit or loss in the same period or periods during which the hedged expected future cash flows affects profit or loss. Any ineffective portions of those movements are recognised in the profit or loss for the period.
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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.
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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 exchange rates prevailing at the dates of the transactions. 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. 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.
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Comprehensive Income so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the Statement of Comprehensive Income in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Analysis of turnover by market:
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
9.Directors' remuneration (continued)
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.Taxation (continued)
The Company has a carried forward loss of £6.9m.
The rate of corporation tax has been increased from 19% to 25% with effect from 1 April 2023. Future tax charges will be based on the revised tax rate.
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
22.Deferred taxation (continued)
During the period 62,762 C Ordinary shares were issued at £0.0001 each.
B Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. The Z Share is non-voting and does not confer rights of any entitlement to participate in dividend and capital distribution (including on winding up) rights. C Ordinary shares are non-voting and do not confer rights of any entitlement to participate in dividend rights. The C Ordinary shares have attached to them capital distribution (including winding up) rights.
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Share premium account
Foreign exchange reserve
Profit and loss account
The Company currently holds an Air Travel Organiser's License (ATOL) issued by the Civil Aviation Authority (CAA) and is a member of the Association of British Travel Agents Limited (ABTA) and Association of Bonded Travel Organisers Trust (ABTOT).
As at 31 December 2023, there were contingent liabilities given by the Company in the normal course of business in respect of: ABTOT bonds amounting to £5,690,142 (prior period: £3,561,861). ABTA bonds amounting to £25,000 (prior period: £25,000). As at 31st December 2023, there were contingent liabilities given by the Company in the normal course of business to their insurance obligors T&G in respect of CAA standard bond amounting to £4,422,466.
The Company enters into various forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency payables. As at 31 December 2023, the outstanding contracts all mature within 12 months (prior period: 12 months) of the period end.
The Company is committed to buying JPY 1,930,000,000 and paying a fixed sterling amount. The Company is also committed to selling USD 3,800,000 and receiving a fixed sterling amount. As at 31 December 2023, the unrealised net loss on these currency cash flow forward contracts amounted to £315,279 (prior period: £nil) which is reflected within the Statement of Comprehensive Income. The Company uses forward foreign currency contracts to mitigate uncertainty around bookings margin generation and cash flows. During the year the notional impact of mitigating exchange risk as opposed to being entirely at-risk by adopting spot rates was £1,830,166. The net loss on the utilised ineffective currency cash flow forward contracts amounted to £568,647 (prior period: net losses of £646,345) which is reflected within the Statement of Profit and Loss. The following table summarises the expected timing and amounts of the forecast future cash flows, which will be recognised in the income statement in the same period in which the cash flows occur.
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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 £242,930 (prior period - £84,715). Contributions totalling £59,247 (prior period - £30,831) were payable to the fund at the reporting date.
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INSIDE TRAVEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The controlling party is Fuji Topco Limited by virtue of its shareholdings in the Company. The registered address of Fuji Topco Limited is 23a Church Road, Poole, Parkstone, Dorset, England, BH14 8UF.
The ultimate controlling party are the shareholders of Fuji Topco Limited.
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