Hummingbird Travel Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 09494278 (England and Wales)
Hummingbird Travel Limited
Company Information
Directors
Mr A Chambers
Mr T Chambers
Company number
09494278
Registered office
Unit 3 Linen House
Kilburn Lane
London
W10 4BQ
Auditor
Gilberts Chartered Accountants
Pendragon House
65 London Road
St Albans
Herts
AL1 1LJ
Hummingbird Travel Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
Hummingbird Travel Limited
Strategic Report
For the year ended 31 December 2023
Page 1
The directors present the strategic report for the year ended 31 December 2023, comprising the Company's business review, an analysis of its financial performance and a description of the principal risks and uncertainties in relation thereto.
Review of the business
The Company's key financial and other performance indicators during the year were as follows:
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Current assets as % of current liabilities | | |
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Average number of employees (full time equivalents) | | |
Principal risks and uncertainties
The Board meets regularly and evaluates the Company's risk position. The principal risks and uncertainties facing the Company are detailed below.
The Company's principal financial investments comprise cash in US Dollar and other currencies, mainly Euro and Sterling. Other financial assets and liabilities, such as trade creditors and trade debtors, arise directly from the Company's operating activities.
The main risks associated with the Company's financial assets and liabilities are set out below.
Market demand
Demand for luxury holidays is vulnerable to general economic conditions. The Board manages capacity and the cost base to suit the prevailing market demand and identifies new efficient routes to market to grow market share and maintain margins.
The Board has confidence in the market opportunities for its core business in the medium to long term. Demand for holidays has remained a consumer priority despite the cost of living crisis.
Regulation changes and competition
The sale of travel and holiday arrangements is a competitive and highly regulated industry. The Company seeks to manage the associated risks by constantly monitoring changes and adapting its business model and terms of trade as necessary.
Credit risk
The Company has external debtors; however, the Company undertakes assessments of its customers in order to ensure that credit is not extended where there is a likelihood of default.
Liquidity risk
The Company aims to mitigate liquidity risk by managing cash generated by its operations.
The Company deposits surplus funds with a range of banks on a short and long term fixed and variable basis in line with business cash requirements. The Company ensures that funds are placed in low risk rated accounts and actively monitors the credit rating of each of the banks via rating agencies.
Hummingbird Travel Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2
Foreign currency risk
The Company applies foreign currency matching principles to reduce foreign currency exposure. Where a sale results in an associated external creditor denominated in foreign currency; the company will hedge the foreign exchange risk using a forward contact.
Other general factors
The Company is also exposed to other factors common to the majority of businesses such as recruitment, reliance on computer systems and technology, and the protection of the reputation and good name of the business.
Significant adverse experience or events in relation to any of these factors could impact upon the Company's trading performance and financial position.
Going Concern
The Directors have considered the Company's current position, prospects and availability of financing. Our assessments support that the Company can continue to pay its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements. As such, the Directors continue to adopt the going concern basis of preparation for these financial statements.
On behalf of the board
Mr A Chambers
Mr T Chambers
Director
Director
20 September 2024
Hummingbird Travel Limited
Directors' Report
For the year ended 31 December 2023
Page 3
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of the provision of holiday accommodation and associated services on a wholesale basis to travel agents.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A Chambers
Mr T Chambers
Auditor
Gilberts Chartered Accountants were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 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 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.
Hummingbird Travel Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 4
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr A Chambers
Mr T Chambers
Director
Director
20 September 2024
Hummingbird Travel Limited
Independent Auditor's Report
To the Members of Hummingbird Travel Limited
Page 5
Opinion
We have audited the financial statements of Hummingbird Travel Limited for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.
Hummingbird Travel Limited
Independent Auditor's Report (Continued)
To the Members of Hummingbird Travel Limited
Page 6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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 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, 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed in our approach below:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
Hummingbird Travel Limited
Independent Auditor's Report (Continued)
To the Members of Hummingbird Travel Limited
Page 7
We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. There are inherent limitations in the audit procedures noted above, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance, miscellaneous receipts and payments testing, journal entry testing, analytical procedures and obtaining additional corroborative evidence as required. In doing so we evaluate whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We recognise that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We communicated relevant key laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud and non-compliance with laws and regulations throughout the audit.
We did not identify any key audit matters relating to irregularities, including fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Luke Parker ACA
Senior Statutory Auditor
For and on behalf of Gilberts Chartered Accountants
20 September 2024
Statutory Auditor
Pendragon House
65 London Road
St Albans
Herts
AL1 1LJ
Hummingbird Travel Limited
Profit and Loss Account
For the year ended 31 December 2023
Page 8
2023
2022
Notes
$
$
Turnover
3
89,681,332
104,817,596
Cost of sales
(82,945,902)
(96,376,214)
Gross profit
6,735,430
8,441,382
Administrative expenses
(5,078,959)
(3,845,365)
Operating profit
4
1,656,471
4,596,017
Interest receivable and similar income
7
14,168
Profit before taxation
1,670,639
4,596,017
Tax on profit
8
(412,704)
(848,432)
Profit for the financial year
1,257,935
3,747,585
The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.
Hummingbird Travel Limited
Statement of Comprehensive Income
For the year ended 31 December 2023
Page 9
2023
2022
$
$
Profit for the year
1,257,935
3,747,585
Other comprehensive income
-
-
Total comprehensive income for the year
1,257,935
3,747,585
Hummingbird Travel Limited
Balance Sheet
As at 31 December 2023
Page 10
2023
2022
Notes
$
$
$
$
Fixed assets
Tangible assets
9
23,444
11,314
Investments
10
330,363
2,188
353,807
13,502
Current assets
Debtors
12
13,088,103
15,534,884
Cash at bank and in hand
7,075,256
8,260,712
20,163,359
23,795,596
Creditors: amounts falling due within one year
13
(15,114,499)
(19,667,126)
Net current assets
5,048,860
4,128,470
Total assets less current liabilities
5,402,667
4,141,972
Provisions for liabilities
Deferred tax liability
14
(2,760)
(2,760)
-
Net assets
5,399,907
4,141,972
Capital and reserves
Called up share capital
16
131
131
Profit and loss reserves
5,399,776
4,141,841
Total equity
5,399,907
4,141,972
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
Mr A Chambers
Mr T Chambers
Director
Director
Company Registration No. 09494278
Hummingbird Travel Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 11
Share capital
Profit and loss reserves
Total
$
$
$
Balance at 1 January 2022
131
394,256
394,387
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
3,747,585
3,747,585
Balance at 31 December 2022
131
4,141,841
4,141,972
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,257,935
1,257,935
Balance at 31 December 2023
131
5,399,776
5,399,907
Hummingbird Travel Limited
Statement of Cash Flows
For the year ended 31 December 2023
Page 12
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash generated from operations
18
254,208
5,268,075
Income taxes paid
(1,107,613)
(384,538)
Net cash (outflow)/inflow from operating activities
(853,405)
4,883,537
Investing activities
Purchase of tangible fixed assets
(18,044)
(6,219)
Purchase of associates
(2,188)
Loans made to other entities
(328,175)
Interest received
14,168
Net cash used in investing activities
(332,051)
(8,407)
Net (decrease)/increase in cash and cash equivalents
(1,185,456)
4,875,130
Cash and cash equivalents at beginning of year
8,260,712
3,385,582
Cash and cash equivalents at end of year
7,075,256
8,260,712
Hummingbird Travel Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 13
1
Accounting policies
Company information
Hummingbird Travel Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3 Linen House, Kilburn Lane, London, W10 4BQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in US dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest dollar.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue is recognised when the sale becomes unconditional.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings
25% straight line
Plant and equipment
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
Hummingbird Travel Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 14
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets cash in hand. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
Basic financial instruments are measured at amortised cost. The company has no other financial instruments or basic financial instruments measured at fair value.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Hummingbird Travel Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 15
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Hummingbird Travel Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 16
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than US dollars are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements 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 considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Recoverable value of trade and other debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 12 for the net carrying amount of the debtors and associated impairment provision.
3
Turnover and other revenue
2023
2022
$
$
Turnover analysed by class of business
Accommodation, handling & transfers
88,453,789
103,768,824
Commission income
468,274
556,366
Marketing income
753,576
445,340
Other income
5,693
47,066
89,681,332
104,817,596
Hummingbird Travel Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
3
Turnover and other revenue
(Continued)
Page 17
2023
2022
$
$
Turnover analysed by geographical market
UK
52,906,581
68,095,858
Europe
22,440,550
18,537,588
Rest of World
14,334,201
18,184,150
89,681,332
104,817,596
2023
2022
$
$
Other significant revenue
Interest income
14,168
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
$
$
Exchange losses/(gains)
47,981
(23,896)
Fees payable to the company's auditor for the audit of the company's financial statements
27,260
Depreciation of owned tangible fixed assets
5,914
6,310
Operating lease charges
60,561
50,753
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Admin
7
6
Directors
2
2
Product
3
2
Reservations & Sales Ops
9
14
Sales & Marketing
8
5
Total
29
29
Hummingbird Travel Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
5
Employees
(Continued)
Page 18
Their aggregate remuneration comprised:
2023
2022
$
$
Wages and salaries
1,718,531
1,453,675
Social security costs
156,907
135,107
Pension costs
227,387
166,298
2,102,825
1,755,080
6
Directors' remuneration
2023
2022
$
$
Remuneration for qualifying services
37,554
35,572
7
Interest receivable and similar income
2023
2022
$
$
Interest income
Interest on bank deposits
221
Other interest income
13,947
Total income
14,168
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
221
8
Taxation
2023
2022
$
$
Current tax
UK corporation tax on profits for the current period
409,944
848,432
Deferred tax
Origination and reversal of timing differences
2,760
Total tax charge
412,704
848,432
Hummingbird Travel Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
8
Taxation
(Continued)
Page 19
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
$
$
Profit before taxation
1,670,639
4,596,017
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
392,934
873,243
Tax effect of expenses that are not deductible in determining taxable profit
22,716
2,735
Foreign exchange differences
(31,011)
Movement in deferred tax no recognised
(2,946)
3,304
Fixed asset differences
161
Taxation charge for the year
412,704
848,432
9
Tangible fixed assets
Land and buildings
Plant and equipment
Total
$
$
$
Cost
At 1 January 2023
52,541
44,915
97,456
Additions
18,044
18,044
At 31 December 2023
52,541
62,959
115,500
Depreciation and impairment
At 1 January 2023
52,541
33,601
86,142
Depreciation charged in the year
5,914
5,914
At 31 December 2023
52,541
39,515
92,056
Carrying amount
At 31 December 2023
23,444
23,444
At 31 December 2022
11,314
11,314
Hummingbird Travel Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 20
10
Fixed asset investments
2023
2022
Notes
$
$
Investments in associates
11
2,188
2,188
Loans
328,175
330,363
2,188
Movements in fixed asset investments
Shares in associates
Loans
Total
$
$
$
Cost or valuation
At 1 January 2023
2,188
-
2,188
Additions
-
328,175
328,175
At 31 December 2023
2,188
328,175
330,363
Carrying amount
At 31 December 2023
2,188
328,175
330,363
At 31 December 2022
2,188
2,188
11
Associates
Details of the company's associates at 31 December 2023 are as follows:
Hummingbird Destination Management Lanka (Private) Limited with registered office No. 9A 1/3, St. Albans Place, Colombo 4, Republic of Sri Lanka is owned 40% by the company.
12
Debtors
2023
2022
Amounts falling due within one year:
$
$
Trade debtors
1,633,897
1,853,931
Other debtors
4,323,329
1,712,254
Prepayments and accrued income
7,130,877
11,968,699
13,088,103
15,534,884
Hummingbird Travel Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 21
13
Creditors: amounts falling due within one year
2023
2022
Notes
$
$
Trade creditors
1,492,814
875,648
Corporation tax
268,008
965,677
Deferred income
11,875,877
16,886,930
Other creditors
1,140,043
607,156
Accruals and deferred income
337,757
331,715
15,114,499
19,667,126
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
$
$
Accelerated capital allowances
5,861
-
Retirement benefit obligations
(3,101)
-
2,760
-
2023
Movements in the year:
$
Liability at 1 January 2023
-
Charge to profit or loss
2,760
Liability at 31 December 2023
2,760
The deferred tax liability set out above is expected to reverse within 12 months and relates to both accelerated capital allowances and retirement benefit obligations that are expected to mature within the same period.
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
$
$
Charge to profit or loss in respect of defined contribution schemes
227,387
166,298
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Hummingbird Travel Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 22
16
Share capital
2023
2022
$
$
Ordinary share capital
Issued and fully paid
35 Ordinary shares of £1 each
46
46
35 Ordinary A shares of £1 each
46
46
30 Ordinary B shares of £1 each
39
39
131
131
17
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2023
2022
$
$
Associated companies and entities under common control
196,743
122,819
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
$
$
Associated companies and entities under common control
255,732
270,709
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
$
$
Associated companies and entities under common control
4,128,623
1,619,919
Hummingbird Travel Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 23
18
Cash generated from operations
2023
2022
$
$
Profit for the year after tax
1,257,935
3,747,585
Adjustments for:
Taxation charged
412,704
848,432
Investment income
(14,168)
Depreciation and impairment of tangible fixed assets
5,914
6,310
Movements in working capital:
Decrease/(increase) in debtors
2,446,781
(12,339,521)
Increase in creditors
1,156,095
386,243
(Decrease)/increase in deferred income
(5,011,053)
12,619,026
Cash generated from operations
254,208
5,268,075
19
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
$
$
$
Cash at bank and in hand
8,260,712
(1,185,456)
7,075,256
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