Company registration number 01889481 (England and Wales)
TRAVEL PLACES (WS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TRAVEL PLACES (WS) LIMITED
COMPANY INFORMATION
Directors
P F Jackson
M Warren
N Warren
Company number
01889481
Registered office
Podium House
61 Chapel Road
Worthing
West Sussex
BN11 1HR
Auditor
Crean & Co Accountants Limited
Lanesboro Street
Roscommon
Republic of Ireland
F42 DA32
TRAVEL PLACES (WS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
TRAVEL PLACES (WS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
While the cyclical nature of the sporting & events calendar, a change in sales mix and the impact of covid measures in prior years makes year-on-year comparisons non-linear, it is the view of the Directors that 2023 saw a further strengthening of the business.
The year ending 31st December 2023 saw total turnover increase significantly to £17,977,163 (2022: £7,891,022), predominantly based on extra-ordinary ATOL sales for an event recurring every 4 years, for which Travel Places recognise the full carrier sales value.
Underlying non-ATOL sales, (where only booking fees/revenue are recognised), were down 12% on 2022, [£6,559,603 (2023) vs. £7,517,969 (2022)], based on a cyclical event calendar rather than any loss of clients.
Overall gross profit was lower by 5.8%, £7,276,116 (2023) vs. £7,726,843 (2022), reflecting that strong gross margin in the core sectors, including the newly established Touring business, has offset the impact of the Scouts.
Staff numbers have increased over the prior year (85 versus 68) reflecting a further investment in the management team and staff, with in-built capacity for future growth, while staff costs per head have remained largely static (+1.4%) and staff retention remains high in a highly competitive talent market.
The Directors recognise that successful staff recruitment and systems efficiencies remain a strong factor in delivering scalable growth and plan for this accordingly.
Client satisfaction and retention remains at a high level, with new clients won during the year that will contribute to growth in 2024.
Principal risks and uncertainties
We assess the ongoing risk of a further pandemic is now ‘normalised’, with the sports sector demonstrating an ongoing level of resilience in managing the residual risks of a major recurrence.
The ongoing war in Ukraine reflects a world with continuing geo-political instability, yet sport continues to navigate this environment, as proven by a successful Paris Olympics 2024. Where world events do impact the sporting calendar, it only serves to delay/postpone the event, which increases the value of our role in managing complex travel arrangements.
Climate change and the role sports teams and organisers have in reducing their carbon impact remains a major theme within the sector. Travel Places remain committed to playing a key role in educating and facilitating clients’ carbon reduction strategies.
Clients of Travel Places are in the majority transacted through our principal commercial partner (Amex GBT). This relationship has worked successfully since 1993 and a renewed evergreen contract was put in place in early 2023.
Financial key performance indicators
The key performance indicators of the business are as follows:
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Employee costs £ (note 5) | | | | |
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Employee costs as a % of T/O | | | | |
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Profit for the financial year | | | | |
TRAVEL PLACES (WS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Environmental, social and governance
2023 saw a continuing focus on environmental, social and governance issues, enabled through our Certification as a B-Corp, as well as our re-accreditation of the international standard ISO 20121: Sustainable Event Management.
Our achievements are summarised in our second annual Impact Report (www.travelplaces.co.uk/impact-reports/), including:
2.6% reduction in carbon footprint generated through staff travel
1,125 trees planted in our own Travel Places woodland project
23 more staff trained in carbon literacy
21% reduction in electricity
7% increase in recycling
896 kg of food waste recycled
£311,000 raised for our charity
Volunteer day launched to staff
M Warren
Director
25 October 2024
TRAVEL PLACES (WS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The company's principal activity is the provision of personnel, management and office facilities for clients in the travel industry.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £365,393. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P F Jackson
M Warren
N Warren
Political donations
There were no political donations made during the year.
Auditor
Crean & Co Accountants Limited were appointed as auditors 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 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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
M Warren
Director
25 October 2024
TRAVEL PLACES (WS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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;
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.
TRAVEL PLACES (WS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRAVEL PLACES (WS) LIMITED
- 5 -
Opinion
We have audited the financial statements of Travel Places (WS) Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, 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.
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.
TRAVEL PLACES (WS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRAVEL PLACES (WS) LIMITED
- 6 -
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.
Capability of the audit in 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations and health and safety legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
TRAVEL PLACES (WS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRAVEL PLACES (WS) LIMITED
- 7 -
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
David Crean
For and on behalf of Crean & Co Accountants Limited
25 October 2024
2024-10-25
Statutory Audit Firm
Lanesboro Street
Roscommon
Republic of Ireland
F42 DA32
TRAVEL PLACES (WS) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
17,977,163
7,891,022
Cost of sales
(10,701,047)
(164,179)
Gross profit
7,276,116
7,726,843
Administrative expenses
(4,868,781)
(3,764,043)
Other operating income
14,980
14,980
Operating profit
4
2,422,315
3,977,780
Interest receivable and similar income
7
120,774
79,506
Interest payable and similar expenses
8
(22,830)
(13,157)
Amounts written off investments
9
93,206
(261,222)
Profit before taxation
2,613,465
3,782,907
Tax on profit
10
(495,001)
(677,447)
Profit for the financial year
2,118,464
3,105,460
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TRAVEL PLACES (WS) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
628,842
676,514
Investment properties
13
30,000
30,000
658,842
706,514
Current assets
Debtors
15
5,891,256
5,033,338
Investments
16
2,080,294
1,771,302
Cash at bank and in hand
1,764,763
2,803,304
9,736,313
9,607,944
Creditors: amounts falling due within one year
17
(1,340,049)
(2,976,484)
Net current assets
8,396,264
6,631,460
Total assets less current liabilities
9,055,106
7,337,974
Creditors: amounts falling due after more than one year
19
(279,136)
(315,075)
Net assets
8,775,970
7,022,899
Capital and reserves
Called up share capital
22
30,000
30,000
Other reserves
268,980
99,539
Profit and loss reserves
8,476,990
6,893,360
Total equity
8,775,970
7,022,899
The financial statements were approved by the board of directors and authorised for issue on 25 October 2024 and are signed on its behalf by:
M Warren
Director
Company Registration No. 01889481
TRAVEL PLACES (WS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
237,210
4,206,944
4,444,254
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
3,105,460
3,105,460
Bonus issue of shares
22
29,900
-
(29,900)
Dividends
11
-
-
(526,815)
(526,815)
Transfers
-
(137,671)
137,671
-
Balance at 31 December 2022
30,000
99,539
6,893,360
7,022,899
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
2,118,464
2,118,464
Dividends
11
-
-
(365,393)
(365,393)
Transfers
-
169,441
(169,441)
-
Balance at 31 December 2023
30,000
268,980
8,476,990
8,775,970
TRAVEL PLACES (WS) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
52,673
2,530,923
Interest paid
(22,830)
(13,157)
Income taxes (paid)/refunded
(652,287)
43,390
Net cash (outflow)/inflow from operating activities
(622,444)
2,561,156
Investing activities
Purchase of tangible fixed assets
(99,607)
(258,784)
Proceeds from disposal of tangible fixed assets
490
Additions and disposals of investments
(215,786)
(93,204)
(Advance)/repayment of loans
179,322
(179,322)
Interest received
67,595
31,519
Dividends received
56,434
47,987
Net cash used in investing activities
(11,552)
(451,804)
Financing activities
Repayment of bank loans
(39,152)
(42,364)
Dividends paid
(365,393)
(526,815)
Net cash used in financing activities
(404,545)
(569,179)
Net (decrease)/increase in cash and cash equivalents
(1,038,541)
1,540,173
Cash and cash equivalents at beginning of year
2,803,304
1,263,131
Cash and cash equivalents at end of year
1,764,763
2,803,304
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
Travel Places (WS) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Podium House, 61 Chapel Road, Worthing, West Sussex, BN11 1HR.
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 sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. 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 goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of goods and services is recognised over the period to which the contract relates.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:
Freehold land
not depreciated
Freehold buildings
4% straight line
Fixtures, fittings and equipment
25% straight line
Motor vehicles
25% straight line
Solar panels
4% 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
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
1.13
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Monte Carlo model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
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. Significant estimates include the useful lives of assets and their residual values and share based payment provisions for the company's EMI share option scheme. No share based payment provisions have been recognised in these accounts as the amount is deemed trivial.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
ATOL sales
11,317,266
199,881
Non-ATOL sales
6,559,603
7,517,969
Freight charges
-
49,875
Consultancy, rental and commissions receivable as turnover
100,294
123,297
17,977,163
7,891,022
2023
2022
£
£
Turnover analysed by geographical market
UK
17,977,163
7,891,022
2023
2022
£
£
Other revenue
Interest income
67,595
31,519
Dividends received
56,434
47,987
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
12,000
Depreciation of owned tangible fixed assets
146,789
127,223
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administrative and sales
85
68
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,024,811
2,256,387
Social security costs
280,205
218,126
Pension costs
228,989
312,989
3,534,005
2,787,502
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
53,666
48,498
Company pension contributions to defined contribution schemes
116,000
227,000
169,666
275,498
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
14,357
Other interest income
53,238
31,519
Total interest revenue
67,595
31,519
Other income from investments
Dividends received
56,434
47,987
Exchange differences
(3,255)
Total income
120,774
79,506
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
22,830
13,145
Other finance costs:
Other interest
12
22,830
13,157
9
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Change in value of financial assets held at fair value through profit or loss
86,408
(208,514)
Other gains/(losses)
Gain/(loss) on disposal of current asset investments
6,798
(52,708)
93,206
(261,222)
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
596,548
754,000
Adjustments in respect of prior periods
(101,547)
(76,553)
Total current tax
495,001
677,447
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 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
2,613,465
3,782,907
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
614,701
718,752
Tax effect of expenses that are not deductible in determining taxable profit
7,660
7,421
Adjustments in respect of prior years
(101,547)
(76,553)
Depreciation on assets not qualifying for tax allowances
34,526
24,172
Adjustments in respect of financial assets
(1,599)
10,170
Effect of revaluations of investments
(20,324)
39,618
Dividend income
(13,172)
(8,878)
Capital allowances
(25,244)
(37,255)
Taxation charge for the year
495,001
677,447
11
Dividends
2023
2022
£
£
Final paid
365,393
526,815
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Tangible fixed assets
Freehold land and buildings
Fixtures, fittings and equipment
IT equipment
Motor vehicles
Solar panels
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,428,976
170,234
118,232
167,600
55,619
1,940,661
Additions
23,655
75,952
99,607
Disposals
(490)
(490)
At 31 December 2023
1,428,486
170,234
141,887
243,552
55,619
2,039,778
Depreciation and impairment
At 1 January 2023
958,513
165,964
74,170
63,275
2,225
1,264,147
Depreciation charged in the year
53,890
2,505
27,281
60,888
2,225
146,789
At 31 December 2023
1,012,403
168,469
101,451
124,163
4,450
1,410,936
Carrying amount
At 31 December 2023
416,083
1,765
40,436
119,389
51,169
628,842
At 31 December 2022
470,463
4,270
44,062
104,325
53,394
676,514
13
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
30,000
The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2023 by M Warren, a director of the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
14
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
5,860,693
5,004,974
Equity instruments measured at cost less impairment
153,500
-
Instruments measured at fair value through profit or loss
1,926,794
1,771,302
Carrying amount of financial liabilities
Measured at amortised cost
838,806
2,377,564
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,149,193
891,245
Other debtors
1,174,199
1,055,116
Prepayments and accrued income
3,567,864
3,086,977
5,891,256
5,033,338
16
Current asset investments
2023
2022
£
£
Listed investments
1,926,794
1,771,302
Other investments
153,500
2,080,294
1,771,302
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
39,151
42,364
Payments received on account
250,000
250,000
Trade creditors
139,672
80,424
Corporation tax
596,462
753,748
Other taxation and social security
183,917
160,247
Other creditors
32,740
15,257
Accruals and deferred income
98,107
1,674,444
1,340,049
2,976,484
18
Loans and overdrafts
2023
2022
£
£
Bank loans
318,287
357,439
Payable within one year
39,151
42,364
Payable after one year
279,136
315,075
Fixed and floating charges over all assets of the company are held in favour of Lloyds Bank Plc in respect of the above bank loan.
The bank loan is repayable in equal monthly instalments until the date of maturity in April 2030. Interest is charged at 2.16% above base rate.
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
19
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
279,136
315,075
Amounts included above which fall due after five years are as follows:
Payable by instalments
122,529
145,618
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
228,989
312,989
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.
21
Share-based payment transactions
The company has granted options under an Enterprise Management Incentive Scheme. Share options granted from time to time are placed in the employee's hands until exercise or expiry. Options vest immediately and are exercisable in the event of the sale of the company. Options remaining unexercised after a period of 10 years from the date of grant expire.
During the year the company granted nil share options (2022: 19,149). All these options were outstanding at 31 December 2023 and had a weighted average exercise price of £1.82 and a remaining contractual life of 8.7 years.
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of 10p each
155,936
155,936
15,594
15,594
Ordinary 'B' shares of 10p each
72,000
72,000
7,200
7,200
Ordinary 'C' shares of 10p each
72,000
72,000
7,200
7,200
Ordinary 'D' shares of 10p each
30
30
3
3
Ordinary 'E' shares of 10p each
30
30
3
3
Ordinary 'G' shares of 10p each
2
2
-
-
Ordinary 'H' shares of 10p each
2
2
-
-
300,000
300,000
30,000
30,000
The ordinary 'A', 'B', 'C', 'D', 'E', 'G' and 'H' shares rank pari passu in all respects save that the directors may recommend and pay dividends on one class of share and not the others, and vice versa.
The ordinary 'F' shares are reserved for the company's EMI scheme.
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
23
Related party transactions
At the year end £nil was owed by the directors and shareholders to the company (2022: £179,322).
At the year end unsecured loans of £1,029,908 (2022: £834,281) were owed to the company by other business interests of the directors and shareholders.
Accountancy fees of £70,846 (2022: £72,363) were charged on an arm's length basis by a partnership in which a director of the company has an interest. Consultancy fees of £244,000 (2022: £144,000) were charged on an arm's length basis by partnerships in which directors and shareholders of the company have an interest.
During the year dividends totalling £365,393 (2022: £526,815) were paid to directors and family members.
M Warren and N Warren are each a director and 49.99% shareholder of the company.
24
Events after the reporting date
There were no significant post balance sheet events.
25
Ultimate controlling party
There was no ultimate controlling party during either year.
26
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,118,464
3,105,460
Adjustments for:
Taxation charged
495,001
677,447
Finance costs
22,830
13,157
Investment income
(124,029)
(79,506)
Depreciation and impairment of tangible fixed assets
146,789
127,223
(Gain)/loss on sale of investments
(6,798)
52,708
Other gains and losses
(86,408)
208,514
Movements in working capital:
Increase in debtors
(1,037,240)
(3,281,742)
(Decrease)/increase in creditors
(1,475,936)
1,707,662
Cash generated from operations
52,673
2,530,923
TRAVEL PLACES (WS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
27
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,803,304
(1,038,541)
1,764,763
Borrowings excluding overdrafts
(357,439)
39,152
(318,287)
2,445,865
(999,389)
1,446,476
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