Registered number:
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2023
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MSC CRUISES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their strategic report for the year ended 31 December 2023.
The UK operation continued to service the needs of its Swiss parent, assisting passengers to book Travel
Services with MSC Cruises SA group. The company's turnover is based on full reimbursement of its expenses plus a cost-plus based service fee disbursement. Increased turnover of £6,368,804 (2022: - £5,168,158) reflected increased costs versus 2022, of which £244,954 (2022: - £51,170) was the service fee. During 2023, client demand for cruising continued to grow as customers prioritised holidays despite the cost of living crisis being driven by inflation and the events in Ukraine and the Middle-East. Employee numbers increased disproportionately to improve the response times in meeting higher levels of enquiries from our network of travel agency and tour operator partnerships. MSC Cruises Group continued to deliver its investment programme, including digital technology, environmental leadership, port infrastructure, plus the addition of the first in a series of newly built luxury ships under the new Explora Journeys brand, Explora I. The second of a series of LNG powered ships was also added to the fleet with the delivery of MSC Euribia. MSC Cruises Ltd continued to engage with the local community through it’s sponsorship of Reuben’s Retreat, a charity providing a range of support services and activities for children and young people that have a life-limiting or life-threatening illness or disability. Additional experience was added to the existing management team which remained unchanged, and is fully experienced in their field, continuously engaging with travel agent partners, customers, colleagues and its parent to ensure achievement of expectations. Employees are developed and monitored to ensure continuity, high levels of engagement and further improving high levels of customer satisfaction. Systems, procedures and management are assessed regularly to adapt to the legal and regulatory environment and ensure continuous improvement. Shareholders funds increased to £2,468,024 (2022: £2,300,177).
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MSC CRUISES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Competition and Market Supply
The company closely monitors competition in its markets, both from existing operators and potential new entrants. Capacity changes resulting from the deployment of new ships or changes to itineraries are assessed and appropriate action taken in response. Regulatory The company monitors and complies with relevant legal requirements in respect of any relevant UK travel or consumer protection laws or regulations. Macro Economic Risk Whilst the post-pandemic recovery is underway, world economies are also faced with supply chain shock, war in Ukraine, increasing inflation and challenging labour markets. However, travel and leisure are expected to continue to experience long term growth. As a sub-sector, cruising is also expected to continue growing and is able to adapt to some of the risks above by virtue of its global model, enabling rapid geographic re-deployment of resources to a wide diversity of source markets.
The Company’s key financial performance indicator during the year was as follows:
2023 2022 Administration expenses £6,135,635 £5,118,031
The company closely monitors customer satisfaction and service levels, cash conversion, internal controls and structural robustness to ensure sustainable growth and optimal support to the parent group.
This report was approved by the board on 20 September 2024 and signed on its behalf.
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MSC CRUISES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MSC CRUISES LIMITED
UNDER SECTION 449 OF THE COMPANIES ACT 2006
We have audited the financial statements of MSC Cruises Limited (the 'Company') for the year ended 31 December 2023, which comprise the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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MSC CRUISES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MSC CRUISES LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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MSC CRUISES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MSC CRUISES LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006
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:
- We exercise professional judgment and maintain professional scepticism throughout the audit; - We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control; - We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control; - We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made; - We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; - We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements; - We conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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MSC CRUISES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MSC CRUISES LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditors
2nd Floor, Nucleus House
2 Lower Mortlake Road
TW9 2JA
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MSC CRUISES LIMITED
REGISTERED NUMBER: 02974020
BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
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MSC CRUISES LIMITED
REGISTERED NUMBER: 02974020
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The notes on pages 11 to 21 form part of these financial statements.
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MSC CRUISES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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MSC CRUISES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MSC Cruises Limited is a private company, limited by shares, registered in England. The Company's registered number is 02974020 and registered office address is 5 Roundwood Avenue, Stockley Park, Uxbridge, England, UB11 1AF.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover represents reimbursable expenses incurred on behalf of the parent company, net of value added tax, together with an administration fee of 4% (2022 - 1%) of the total expenses.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet 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 Balance Sheet.
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
4.Tangible fixed assets (continued)
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
At December 2023, there were no contingent liabilities outstanding in respect of counter indemnities and guarantees given by the Company, in the normal course of business, to the Company's bond insurance obligors in respect of Civil Aviation Authority (CAA), Asssociation of British Travel Agents (ABTA) and other bonds (2022 - £18,100,000).
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MSC CRUISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company is a wholly owned subsidiary of MSC Cruises S.A., a company registered in Switzerland.
The ultimate parent company is MSC Mediterranean Shipping Company Holding S.A., a company also registered in Switzerland.
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