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Registered number: 04094031


INSIDE TRAVEL GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 
INSIDE TRAVEL GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
S King 
A Donnelly 
N B Kahn 
I D Simkins 
T R Weston 
A S G Turner 
D D Morris 
N J Meyohas 
D C Wiseman 




Company secretary
S King



Registered number
04094031



Registered office
Electricity House
Quay Street

Bristol

BS1 4TD




Independent auditors
Xeinadin Audit Limited
Chartered Accountants & Statutory Auditor

Becket House

36 Old Jewry

London

EC2R 8DD




Accountants
Elman Wall Limited
8th floor

Becket House

36 Old Jewry

London

EC2R 8DD





 
INSIDE TRAVEL GROUP LIMITED
 

CONTENTS



Page
Strategic Report
1 - 5
Directors' Report
6 - 7
Independent Auditors' Report
8 - 11
Statement of Comprehensive Income
12
Statement of Financial Position
13
Statement of Changes in Equity
14
Statement of Cash Flows
15 - 16
Analysis of Net Debt
17
Notes to the Financial Statements
18 - 37


 
INSIDE TRAVEL GROUP LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their Strategic Report for the period ended 31 December 2023.

Strategic review
 
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).

Post-reporting period and outlook for the current financial year
 
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. 

Page 1

 
INSIDE TRAVEL GROUP LIMITED
 

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

Sustainability report
 
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.




Page 2

 
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. . 


Total emissions by Scope (kg CO2e)
     
                       2023
        
                   2022
Scope 1 (Direct emissions from owned, leased or directly controlled stationary sources that use fossil fuels and/or emit fugitive emissions (e.g. refrigerant gasses)
4,414kg
4,485kg
Scope 2 (emissions from the generation of purchased electricity, heat, steam, or cooling)
30,239kg
26,986kg
Scope 3 (Purchased goods and services, capital goods, fuel and energy related activities, upstream transportation and distribution, waste generated in operations, business travel, employee commuting and homeworking, use of sold products)
17,007,893kg
3,219,390kg
Total (Scopes 1, 2, and 3)
17,042,546kg
3,250,761kg

Emissions KPIs (kg CO2e)
                           2023
                           2022
Average carbon footprint per customer per night (includes international flights booked by ITG, but not if booked by the customer)
122kg
130kg
Average carbon footprint per customer per night (without international flights)
40kg
45kg
Average carbon footprint per customer per night (if all bookings included international flights)
291kg
288kg



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.
 
Page 3

 
INSIDE TRAVEL GROUP LIMITED
 

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

People

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.

2023
2022
Total volunteer time per active member of staff
0.34 days
0.31 days
Total hours volunteered
380 hours
278 hours

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.

Principal risks and uncertainties
 
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.


Page 4

 
INSIDE TRAVEL GROUP LIMITED
 

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

Key performance indicators
 
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:

Metrics
Year ended
31 December
2023
6 month
period ended 31 December 2022
Turnover
£50,104,409
£7,029,087
Gross profit
£16,389,634
£1,669,475
Operating Profit/(Loss)
£3,530,296
(£2,683,961)
Client satisfaction ('excellent' and 'good' reviews)
98.3%
99.0%
Employee NPS
28
26

Performance is in line with the directors' expectations and demonstrates strong demand in each of our markets.

Strategy
 
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.



S King
Director

Date: 26 March 2024

Page 5

 
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.

Directors' responsibilities statement

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

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


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

make 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 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company continued to be that of marketing and arranging accommodation and itineraries for tourist visits to Asia, operating from its UK head office and branches in Japan, USA and Australia.

Business review

Further information on the business review for the Company can be found in the Strategic Report.

Results and dividends

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).

Page 6

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Directors

The directors who served during the year were:

S King 
A Donnelly 
N B Kahn 
I D Simkins 
T R Weston 
A S G Turner 
D D Morris 
N J Meyohas 
D C Wiseman 

Political and charitable contributions

During the period, the Company made political contributions of £nil (prior period: £nil) and charitable donations of £136,015 (prior period: £890).

Future developments

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.

Branches outside the United Kingdom

The Company operates branches located in the USA, Australia and Japan.

Disclosure of information to auditors

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

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

Auditors

The auditorsXeinadin Audit Limitedwill 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.
 





S King
Director

Date: 26 March 2024

Page 7

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INSIDE TRAVEL GROUP LIMITED
 

Opinion


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 policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


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


Basis for opinion


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


Conclusions relating to going concern


In 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.


Page 8

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INSIDE TRAVEL GROUP LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The directors are responsible for the other information contained within the Annual 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

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


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


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


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 9

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INSIDE TRAVEL GROUP LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


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


Page 10

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INSIDE TRAVEL GROUP LIMITED (CONTINUED)


Use of our report
 

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





Ian Palmer FCA (Senior Statutory Auditor)
  
for and on behalf of
Xeinadin Audit Limited
 
Chartered Accountants
Statutory Auditor
  
Becket House
36 Old Jewry
London
EC2R 8DD

26 March 2024
Page 11

 
INSIDE TRAVEL GROUP LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

Year ended
31 December
6 month
period ended
31 December
2023
2022
Note
£
£

  

Turnover
 4 
50,104,409
7,029,087

Cost of sales
  
(33,714,775)
(5,359,612)

Gross profit
  
16,389,634
1,669,475

Administrative expenses
  
(12,034,527)
(4,245,938)

Exceptional items
 13 
(824,811)
(138,000)

Other operating income
 5 
-
30,502

Operating profit/(loss)
 6 
3,530,296
(2,683,961)

Amounts written off investments
  
-
(73,610)

Interest receivable and similar income
 10 
5,547
126

Interest payable and similar expenses
 11 
(582,986)
(185,259)

Fair value movements
  
(568,647)
655,354

Profit/(loss) before tax
  
2,384,210
(2,287,350)

Taxation
 12 
1,885,158
19,520

Profit/(loss) for the financial year
  
4,269,368
(2,267,830)

Other comprehensive income for the year
  

Fair value movements
  
(315,279)
-

Other comprehensive income for the year
  
(315,279)
-

Total comprehensive income for the year
  
3,954,089
(2,267,830)

The notes on pages 18 to 37 form part of these financial statements.

Page 12

 
INSIDE TRAVEL GROUP LIMITED
REGISTERED NUMBER: 04094031

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
154,464
91,595

Tangible assets
 15 
326,671
342,843

  
481,135
434,438

Current assets
  

Debtors: amounts falling due within one year
 17 
4,645,603
1,378,349

Cash at bank and in hand
 18 
7,246,577
3,572,816

  
11,892,180
4,951,165

Creditors: amounts falling due within one year
 19 
(11,185,577)
(8,009,931)

Net current assets/(liabilities)
  
 
 
706,603
 
 
(3,058,766)

Total assets less current liabilities
  
1,187,738
(2,624,328)

Creditors: amounts falling due after more than one year
 20 
(5,558,080)
(5,742,948)

  

Net liabilities
  
(4,370,342)
(8,367,276)


Capital and reserves
  

Called up share capital 
 23 
33,614
33,608

Share premium account
 24 
73,610
30,771

Cash flow hedge reserve
 24 
(315,279)
-

Profit and loss account
 24 
(4,162,287)
(8,431,655)

  
(4,370,342)
(8,367,276)


The financial statements were approved and authorised for issue by the board and were signed on its behalf: 




S King
Director

Date: 26 March 2024

Page 13

 
INSIDE TRAVEL GROUP LIMITED
 

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


Called up share capital
Share premium account
Cash flow hedge reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 July 2022
33,608
30,771
-
(6,163,825)
(6,099,446)


Comprehensive income for the period

Loss for the period
-
-
-
(2,267,830)
(2,267,830)



At 1 January 2023
33,608
30,771
-
(8,431,655)
(8,367,276)


Comprehensive income for the year

Profit for the year
-
-
-
4,269,368
4,269,368

Changes in fair value of foreign exchange hedging instrument, net of tax
-
-
(315,279)
-
(315,279)


Contributions by and distributions to owners

Shares issued during the year
6
42,839
-
-
42,845


At 31 December 2023
33,614
73,610
(315,279)
(4,162,287)
(4,370,342)


The notes on pages 18 to 37 form part of these financial statements.

Page 14

 
INSIDE TRAVEL GROUP LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
4,269,368
(2,267,830)

Adjustments for:

Amortisation of intangible assets
24,264
12,873

Depreciation of tangible assets
211,405
108,762

Impairment of investment
-
73,610

Loss on disposal of intangible assets
7,622
191,776

Loss on disposal of tangible assets
201
202

Interest payable
582,986
185,259

Interest receivable
(5,547)
(126)

Taxation charge
(1,885,158)
(19,520)

Decrease in debtors
(1,222,290)
143,566

Decrease in amounts owed by groups
-
162,000

Increase in creditors
2,289,330
1,838,703

Corporation tax paid
(60,828)
-

Foreign exchange
(220,573)
(655,354)

Net cash generated from operating activities

3,990,780
(226,079)


Cash flows from investing activities

Purchase of intangible fixed assets
(94,755)
(41,371)

Purchase of tangible fixed assets
(195,434)
(26,883)

Interest received
5,547
126

Net cash from investing activities

(284,642)
(68,128)
Page 15

 
INSIDE TRAVEL GROUP LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Issue of ordinary shares
17,490
-

Other new loans
-
1,250,000

Interest paid
(49,867)
(17,023)

Net cash used in financing activities
(32,377)
1,232,977

Net increase in cash and cash equivalents
3,673,761
938,770

Cash and cash equivalents at beginning of year
3,572,816
2,634,046

Cash and cash equivalents at the end of year
7,246,577
3,572,816


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
7,246,577
3,572,816

7,246,577
3,572,816


The notes on pages 18 to 37 form part of these financial statements.

Page 16

 
INSIDE TRAVEL GROUP LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023





At 1 January 2023
Cash flows
Other non-cash changes
At 31 December 2023
£

£

£

£

Cash at bank and in hand

3,572,816

3,673,761

-

7,246,577

Debt due after 1 year

(4,500,000)

-

(458,995)

(4,958,995)


-

-

-

-


(927,184)
3,673,761
(458,995)
2,287,582

The notes on pages 18 to 37 form part of these financial statements.

Page 17

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

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

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Revenue

Revenue represents income received or receivable net of Value Added Tax, for tours departing during the financial year, recognised on a departure date basis.

  
2.3

Exemption from preparing consolidated financial statements

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.

 
2.4

Going concern

The Company had net liabilities of £4,370,342 as at 31 December 2023 and reported a profit of £4,269,368 for the year.
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.

Page 18

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Leasehold improvements
-
20%
Fixtures and fittings
-
15%
Computer equipment
-
20%

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

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

 
2.6

Debtors

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

 
2.7

Cash and cash equivalents

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

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

  
2.8

Hedge accounting

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.

Page 19

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.12

Intangible assets

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

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

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Creditors

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

Page 20

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.15

Foreign currency translation

Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the 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.

 
2.16

Operating leases: the Company as lessee

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

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

  
2.17

Hire purchases

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.

 
2.18

Pensions

Defined contribution pension plan

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

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

 
2.19

Interest income

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

Page 21

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
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.

 
2.21

Current and deferred taxation

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

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

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

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


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are recognised 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 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.

Page 22

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

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


Year ended
31 December
6 month period ended
31 December
2023
2022
£
£

Tour Operating
50,104,409
7,029,087


Analysis of turnover by market:

Year ended
31 December
6 month period ended
31 December
2023
2022
£
£

United Kingdom
25,753,805
3,050,964

Rest of the world
24,350,604
3,978,123

50,104,409
7,029,087



5.


Other operating income

Year ended
31 December
6 month period ended
31 December
2023
2022
£
£

Overseas government grants receivable
-
30,502


Page 23

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

Year ended
31 December
6 month period ended
31 December
2023
2022
£
£

Amortisation of intangible fixed assets
24,264
12,873

Loss on disposal of intangible fixed assets
7,622
191,775

Depreciation of tangible fixed assets
211,405
108,762

Loss on disposal of tangible fixed assets
201
202

Foreign exchange differences
20,383
602,376

Defined contribution pension cost
242,930
84,715

Other operating lease rentals
577,367
262,066


7.


Auditors' remuneration

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


Year ended
31 December
6 month period ended
31 December
2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
14,400
7,000

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

Page 24

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Year ended
31 December
6 month
 period ended 
31 December
2023
2022
£
£

Wages and salaries
6,932,163
2,313,808

Social security costs
784,224
231,781

Cost of defined contribution scheme
242,930
84,715

7,959,317
2,630,304


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


      Year ended
     31 December
6 month
period ended
      31 December
        2023
        2022
            No.
            No.







Sales and administration
162
118


9.


Directors' remuneration

Year ended
31 December
6 month
period ended
31 December
2023
2022
£
£

Directors' emoluments
583,729
208,760

Company contributions to defined contribution pension schemes
64,373
22,888

648,102
231,648


During the year retirement benefits were accruing to 4 directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £144,246 (2022 - £56,700).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £21,464 (2022 - £1,695).

Page 25

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.Directors' remuneration (continued)

Key management includes the directors and senior management. The compensation paid or payable to key management personnel of the Company for employee services carried out during the period amounted to £1,100,020 (prior period: £566,133)


10.


Interest receivable and similar income

Year ended
31 December
6 month
period ended
31 December
2023
2022
£
£


Other interest receivable
5,547
126


11.


Interest payable and similar expenses

Year ended
31 December
6 month period ended
31 December
2023
2022
£
£


Bank interest payable
45,756
14,458

Other loan interest payable
537,230
168,236

Other interest payable
-
2,565

582,986
185,259

Page 26

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Taxation


Year ended
31 December
6 month period ended
31 December
2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
-
(19,520)


-
(19,520)

Foreign tax


Foreign tax on income for the year
115,860
-

Total current tax
115,860
(19,520)

Deferred tax


Origination and reversal of timing differences
(2,001,018)
-

Total deferred tax
(2,001,018)
-


Taxation on loss on ordinary activities
(1,885,158)
(19,520)
Page 27

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year/period

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK at 23.52% (2022 - 19%). The differences are explained below:

Year ended
31 December
6 month period ended
31 December
2023
2022
£
£


Profit/(loss) on ordinary activities before tax
2,384,210
(2,287,350)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
560,766
(434,597)

Effects of:


Fixed asset timing differences
(1,290)
10,929

Expenses not deductible for tax purposes
189,261
41,486

Foreign tax
115,860
-

Remeasurement of deferred tax for changes in tax rate
47,187
(120,688)

Movement in deferred tax not recognised
(2,798,387)
502,870

Adjustments to tax charge in respect of previous periods
-
(19,520)

Other
1,445
-

Total tax charge for the year/period
(1,885,158)
(19,520)


Factors that may affect future tax charges

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.

Page 28

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Exceptional items

Year ended
31 December
6 month period ended
31 December
2023
2022
£
£


Exceptional items
824,811
138,000

The exceptional charge in the period relates to strategic advisory costs (prior period related to the write-off of an intercompany loan amount).


14.


Intangible assets




Computer software

£



Cost


At 1 January 2023
119,083


Additions - internal
94,755


Disposals
(17,444)



At 31 December 2023

196,394



Amortisation


At 1 January 2023
27,488


Charge for the year on owned assets
24,264


On disposals
(9,822)



At 31 December 2023

41,930



Net book value



At 31 December 2023
154,464



At 31 December 2022
91,595



Page 29

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets





Leasehold improvements
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost


At 1 January 2023
844,742
103,438
482,652
1,430,832


Additions
32,068
37,890
125,476
195,434


Disposals
(71,121)
-
(803)
(71,924)



At 31 December 2023

805,689
141,328
607,325
1,554,342



Depreciation


At 1 January 2023
617,550
70,050
400,389
1,087,989


Charge for the year on owned assets
145,806
12,319
53,280
211,405


Disposals
(71,121)
-
(602)
(71,723)



At 31 December 2023

692,235
82,369
453,067
1,227,671



Net book value



At 31 December 2023
113,454
58,959
154,258
326,671



At 31 December 2022
227,192
33,388
82,263
342,843




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Long leasehold
113,454
227,192


Page 30

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 January 2023
73,610



At 31 December 2023

73,610



Impairment


At 1 January 2023
73,610



At 31 December 2023

73,610



Net book value



At 31 December 2023
-



At 31 December 2022
-


17.


Debtors: amounts falling due within one year

2023
2022
£
£


Other debtors
1,012,430
400,590

Prepayments and accrued income
1,600,506
977,759

Deferred taxation
2,001,018
-

Financial instruments
31,649
-

4,645,603
1,378,349


Prepayments and accrued income includes advanced payments to suppliers for departures after the Statement of Financial Position date amounting to £908,667 (prior period: £394,077).

Page 31

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
7,246,577
3,572,816


Cash and cash equivalents comprise amounts held in Escrow totalling £nil (2022: £1,219,404). Amounts held in Escrow are segregated monies received and held in a separate Escrow account. These amounts were held as a financial guarantee for the Company’s travel licenses and for the protection of monies collected from passengers.
From 1 April 2023 a bond was put in place to provide a financial guarantee for the Company's ATOL travel licence and for the protection of monies collected from passengers. After obtaining a bond, the monies held in Escrow were released.


19.


Creditors: amounts falling due within one year

2023
2022
£
£

Trade creditors
764,233
595,893

Corporation tax
41,974
-

Other taxation and social security
183,034
344,859

Other creditors
204,292
157,534

Accruals and deferred income
9,645,115
6,691,072

Financial instruments
346,929
220,573

11,185,577
8,009,931


Accruals and deferred income includes advanced receipts from customers for departures after the Statement of Financial Position date amounting to £7,846,927 (prior period: £6,408,369).

Page 32

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Creditors: amounts falling due after more than one year

2023
2022
£
£

Bank loans
500,000
500,000

Other loans
4,458,995
4,000,000

Accruals and deferred income
599,085
1,242,948

5,558,080
5,742,948


Accruals and deferred income includes advanced receipts from customers for departures on or after 1 January 2025 amounting to £599,085 (prior period: £1,069,890).
Other loans includes £4,000,000 which has been subordinated to the Civil Aviation Authority and cannot be withdrawn without their prior written consent.
The bank loans are secured by way of debenture comprising fixed and floating charges over all the property or undertakings of the Company.


21.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£



Amounts falling due 2-5 years

Bank loans
500,000
500,000

Other loans
4,458,995
4,000,000

4,958,995
4,500,000




22.


Deferred taxation




2023


£






Charged to profit or loss
2,001,018



At end of year
2,001,018

Page 33

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
22.Deferred taxation (continued)

The deferred tax asset is made up as follows:

2023
2022
£
£


Fixed asset timing differences
(36,565)
-

Short term timing differences
181,077
-

Losses and other deductions
1,856,506
-

2,001,018
-


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



33,558 (prior period - 33,558) Ordinary shares of £1.0000 each
33,558
33,558
489,480 (prior period -489,480) B Ordinary shares of £0.0001 each
49
49
1 (prior period -1) Z share of £1.0000
1
1
62,762 (2022 - 0) C Ordinary shares of £0.0001 each
6
-

33,614

33,608


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.

Page 34

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Reserves

Share premium account

Includes all current and prior period share premium payments.

Foreign exchange reserve

Includes all current and prior period foreign exchange movements on derivatives that qualify for hedge accounting.

Profit and loss account

Includes all current and prior period retained profits and losses.


25.


Contingent liabilities

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.


26.


Cash flow hedging

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.

Page 35

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Determination period

2023
2022
£
£
January-March

(231,352)

(7,032)

April-June

(48,865)

(164,051)

July-September

(27,134)

22,172

October-December

(7,928)

(71,662)

(315,279)

(220,573)







27.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £242,930 (prior period - £84,715). Contributions totalling £59,247 (prior period - £30,831) were payable to the fund at the reporting date.


28.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
559,296
459,994

Later than 1 year and not later than 5 years
1,113,416
858,600

1,672,712
1,318,594


29.


Related party transactions

The Company has taken advantage of the FRS 102 exemption not to disclose transactions with wholly owned members of the same group.
 
At the period end Fuji Topco Limited, the parent entity, was owed £4,705,108 (prior period: £4,173,058). 
During the period the Company paid a company related to the parent £150,000 (Prior period: £75,000) of monitoring fees in the normal course of business.

Page 36

 
INSIDE TRAVEL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

30.


Post balance sheet events

The directors have concluded that no material events have occurred since the date of these financial statements.


31.


Controlling party

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.

 
Page 37