Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31116682023-01-01falseCruise operatorfalsetrue 02974020 2023-01-01 2023-12-31 02974020 2022-01-01 2022-12-31 02974020 2023-12-31 02974020 2022-12-31 02974020 2022-01-01 02974020 1 2023-01-01 2023-12-31 02974020 1 2022-01-01 2022-12-31 02974020 5 2023-01-01 2023-12-31 02974020 5 2022-01-01 2022-12-31 02974020 d:Director2 2023-01-01 2023-12-31 02974020 e:Buildings e:LongLeaseholdAssets 2023-01-01 2023-12-31 02974020 e:Buildings e:LongLeaseholdAssets 2023-12-31 02974020 e:Buildings e:LongLeaseholdAssets 2022-12-31 02974020 e:Buildings e:ShortLeaseholdAssets 2023-01-01 2023-12-31 02974020 e:LandBuildings 2023-12-31 02974020 e:LandBuildings 2022-12-31 02974020 e:ComputerEquipment 2023-01-01 2023-12-31 02974020 e:ComputerEquipment 2023-12-31 02974020 e:ComputerEquipment 2022-12-31 02974020 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02974020 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02974020 e:CurrentFinancialInstruments 2023-12-31 02974020 e:CurrentFinancialInstruments 2022-12-31 02974020 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 02974020 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 02974020 e:ShareCapital 2023-01-01 2023-12-31 02974020 e:ShareCapital 2023-12-31 02974020 e:ShareCapital 2022-01-01 2022-12-31 02974020 e:ShareCapital 2022-12-31 02974020 e:ShareCapital 2022-01-01 02974020 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02974020 e:RetainedEarningsAccumulatedLosses 2023-12-31 02974020 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 02974020 e:RetainedEarningsAccumulatedLosses 2022-12-31 02974020 e:RetainedEarningsAccumulatedLosses 2022-01-01 02974020 d:OrdinaryShareClass1 2023-01-01 2023-12-31 02974020 d:OrdinaryShareClass1 2023-12-31 02974020 d:OrdinaryShareClass1 2022-12-31 02974020 d:FRS102 2023-01-01 2023-12-31 02974020 d:Audited 2023-01-01 2023-12-31 02974020 d:FullAccounts 2023-01-01 2023-12-31 02974020 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02974020 e:WithinOneYear 2023-12-31 02974020 e:WithinOneYear 2022-12-31 02974020 e:BetweenOneFiveYears 2023-12-31 02974020 e:BetweenOneFiveYears 2022-12-31 02974020 d:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 02974020 2 2023-01-01 2023-12-31 02974020 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 02974020 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 02974020









MSC CRUISES LIMITED









FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2023

 
MSC CRUISES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 31 December 2023.

Business review
 
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).
                                                                                  

Page 1

 
MSC CRUISES LIMITED
 

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

Principal risks and uncertainties
 
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.
 

Financial key performance indicators
 
The Company’s key financial performance indicator during the year was as follows:
                                                   
 2023    2022
Administration expenses                            
£6,135,635   £5,118,031
 


Other key performance indicators
 
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.



A Paradiso
Director
Page 2

 
MSC CRUISES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MSC CRUISES LIMITED
UNDER SECTION 449 OF THE COMPANIES ACT 2006
 

Opinion


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 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 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 3

 
MSC CRUISES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MSC CRUISES LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006


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; or


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 4

 
MSC CRUISES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MSC CRUISES LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006


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:

- 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.


Page 5

 
MSC CRUISES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MSC CRUISES LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006


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.





M S Caldicott ACA FCCA CTA (Senior Statutory Auditor)
  
for and on behalf of
White Hart Associates (London) Limited
 
Chartered Accountants and Statutory Auditors
  
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA

20 September 2024
Page 6

 
MSC CRUISES LIMITED
REGISTERED NUMBER: 02974020

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 4 
80,600
3,208

  
80,600
3,208

Current assets
  

Debtors: amounts falling due within one year
 5 
2,433,563
1,260,070

Cash at bank and in hand
 6 
373,375
2,982,034

  
2,806,938
4,242,104

Creditors: amounts falling due within one year
 7 
(419,182)
(1,944,525)

Net current assets
  
 
 
2,387,756
 
 
2,297,579

Total assets less current liabilities
  
2,468,356
2,300,787

Provisions for liabilities
  

Deferred tax
 8 
(332)
(610)

  
 
 
(332)
 
 
(610)

Net assets
  
2,468,024
2,300,177


Capital and reserves
  

Called up share capital 
 9 
1,000,000
1,000,000

Profit and loss account
  
1,468,024
1,300,177

  
2,468,024
2,300,177


The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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 20 September 2024.




A Paradiso
Director
Page 7

 
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.
Page 8

 
MSC CRUISES LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
1,000,000
1,265,429
2,265,429


Comprehensive income for the year

Profit for the year
-
34,748
34,748
Total comprehensive income for the year
-
34,748
34,748


Total transactions with owners
-
-
-



At 1 January 2023
1,000,000
1,300,177
2,300,177


Comprehensive income for the year

Profit for the year
-
167,847
167,847
Total comprehensive income for the year
-
167,847
167,847


Total transactions with owners
-
-
-


At 31 December 2023
1,000,000
1,468,024
2,468,024


The notes on pages 11 to 21 form part of these financial statements.
Page 9

 
MSC CRUISES LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
167,847
34,748

Adjustments for:

Depreciation of tangible assets
1,748
3,390

Interest paid
-
2

Interest received
(11,785)
(1,045)

Taxation charge
77,107
16,422

(Increase)/decrease in debtors
(271,207)
4,061,203

(Increase)/decrease in amounts owed by groups
(903,315)
9,011

Increase in creditors
86,054
106,362

Decrease in amounts owed to groups
(1,660,724)
(4,514,433)

Corporation tax paid
(27,029)
-

Net cash generated from operating activities

(2,541,304)
(284,340)


Cash flows from investing activities

Purchase of tangible fixed assets
(79,140)
(1,706)

Interest received
11,785
1,045

Net cash from investing activities

(67,355)
(661)

Cash flows from financing activities

Interest paid
-
(2)

Net cash used in financing activities
-
(2)

Net decrease in cash and cash equivalents
(2,608,659)
(285,003)

Cash and cash equivalents at beginning of year
2,982,034
3,267,037

Cash and cash equivalents at the end of year
373,375
2,982,034


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
373,375
2,982,034

373,375
2,982,034


The notes on pages 11 to 21 form part of these financial statements.

Page 10

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

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

 
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 judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

  
2.2

Turnover

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. 

 
2.3

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
-
over the lease term
Computer equipment
-
33 1/3% straight line

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.

Page 11

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

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.

Amounts receivable on behalf of principal represent the amounts invoiced to customers but not received, relating to the deposits/balances becoming due in accordance with the principal's terms and conditions. 

 
2.5

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.
Page 12

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.7

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 13

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

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 spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
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

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.

 
2.11

Interest income

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

Page 14

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

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 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.

 
2.13

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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.14

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 balance sheet 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 balance sheet 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 balance sheet date.

Page 15

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Employees

2023
2022
£
£

Wages and salaries
4,231,858
3,197,464

Social security costs
417,057
352,159

Cost of defined contribution scheme
218,973
147,838

4,867,888
3,697,461


The average monthly number of employees ("administrative staff") during the year was 116 (2022 - 78).


4.


Tangible fixed assets





Leasehold
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
-
150,128
150,128


Additions
79,140
-
79,140



At 31 December 2023

79,140
150,128
229,268



Depreciation


At 1 January 2023
-
146,920
146,920


Charge for the year on owned assets
-
1,748
1,748



At 31 December 2023

-
148,668
148,668



Net book value



At 31 December 2023
79,140
1,460
80,600



At 31 December 2022
-
3,208
3,208

Page 16

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           4.Tangible fixed assets (continued)




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


2023
2022
£
£

Leasehold
79,140
-

79,140
-

Page 17

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Debtors

2023
2022
£
£


Amounts receivable on behalf of principal
-
1,177,230

Amounts owed by group undertakings
2,370,573
4,715

Other debtors
49,490
42,422

Prepayments and accrued income
13,500
35,703

2,433,563
1,260,070



6.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
373,375
2,982,034

373,375
2,982,034



7.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
74,366
27,058

Amounts owed to group undertakings
-
1,660,724

Corporation tax
50,356
-

Other taxation and social security
16,786
15,611

Other creditors
871
850

Accruals and deferred income
276,803
240,282

419,182
1,944,525


Page 18

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Deferred taxation




2023


£






At beginning of year
(610)


Charged to profit or loss
278



At end of year
(332)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(332)
(610)

(332)
(610)


9.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000,000 (2022 - 1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000



10.


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
43,279
10,561

Later than 1 year and not later than 5 years
69,443
27,761

112,722
38,322

Page 19

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Contingent liabilities

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).


12.


Related party transactions


2023
2022
£
£

MSC Cruises S.A. (parent company)
The transactions below between the parent and MSC Cruises Limited
occurred at arms length and the balance due from MSC Cruises S.A. is 
shown under debtors in Note 6 to the financial statements.
Administration charge to MSC Cruises S.A.
196,193
44,623
Amount outstanding from MSC Cruises S.A. at the balance sheet date
2,228,234
1,660,724

2023
2022
£
£

MSC Cruise Management (UK) Limited (group company)


The transactions below between the fellow group undertaking and MSC
Cruises Limited occurred at arms length and the balance due to MSC
Cruise Management (UK) Limited is shown under creditors in Note 8 to the
financial statements.

Amounts charged by MSC Cruise Management (UK) Limited
470,000
470,000

Amount outstanding from MSC Cruise Management (UK) Limited  at the balance sheet date
-
-

2023
2022
£
£

Explora Journeys SA (group company)


The transactions below between the fellow group undertaking and MSC
Cruises Limited occurred at arms length and the balance due from
Explora Journeys SA is shown under debtors in Note 6 to the
financial statements.

Administration charge to Explora S.A.
44,135
6,547

Amount outstanding from Explora S.A. at the balance sheet date
97,204
4,715

Page 20

 
MSC CRUISES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
£
£

Cisalpina Tours S.p.A. (group company)


The transactions below between the fellow group undertaking and MSC
Cruises Limited occurred at arms length and the balance due from
Cisalpina Tours S.p.A is shown under debtors in Note 6 to the
financial statements.

Administration charge to Cisalpina Tours S.p.A
5,098
-

Amount outstanding from Cisalpina Tours S.p.A at the balance sheet date
45,135
-


13.


Controlling party

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.  

 
Page 21