TRAVCO GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Company Registration No. 09276335 (England and Wales)
TRAVCO GROUP LIMITED
COMPANY INFORMATION
Directors
M S Allan
R D Allan
J R Feilder
Company number
09276335
Registered office
Travco House
92-94 Paul Street
London
EC2A 4UX
Auditors
Charterhouse (Audit) Limited
166 College Road
Harrow
Middlesex
HA1 1RA
Business address
Travco House
92-94 Paul Street
London
EC2A 4UX
Bankers
Barclays PLC
1 Churchill Place
Level 27
London
E14 5HP
TRAVCO GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 30
TRAVCO GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -
The directors present the strategic report for the year ended 29 February 2024.
Fair review of the business
The results for the year and the financial position at the year end were considered satisfactory by the directors due to the measures taken to ensure the going concern.
S.172 statement
The information provided below is intended to explain how the directors considered the group's key stakeholders and the broader matters set out in s.172 of the Companies Act 2006 when performing their duties to promote the success of the group.
Group culture
The group culture focuses on the importance of strong financial and operational risk management controls, ensuring it complies with all applicable laws, regulations and ethical principals, locally, nationally and internationally.
The directors regularly assess/monitor the fulfilment of this culture at an operational level by requesting, receiving and analysing reports at various business levels, ensuring improvements can be made where necessary.
By protecting the reputation and economic viability of the group, the directors believe that enhancing this culture is for the long-term benefit of the group and interests of its stakeholders.
Long term strategy
The group's long term strategy is to grow revenues by adding new markets and increase profits through improving margins and optimising operational cost. This is to be achieved by providing high levels of service to customers whilst managing financial, operational, regulatory and legal risks and increasing efficiency at all levels.
To achieve these objectives, the directors consider it is essential to maintain adequate financial resources, through both internal operational mechanisms and access to external funding, to maintain stakeholder confidence at all times, to invest in information technology, to conduct a policy to promote exemplary customer services, to ensure staff are professionally trained and to ensure the group adheres to statutory regulations relating to information security.
Stakeholder relationships
The group's stakeholders are business customers (travel agents, OTA’s, intermediaries), suppliers, staff and shareholders, the relationship with and interest of, are upper most in the directors' minds when making decisions to promote the group. The strategic goals and conduits to achieve them, as listed above, are specifically crafted by the directors to benefit stakeholders and foster better relationships with them.
Community and environment
The group does whatever it can within its resources to promote better community relations and foster good environmental credentials.
Principal risks and uncertainties
The management of the business and the execution of the group's strategies are subject to risks, the key risks being competition in the market place, operational risk and liquidity risk.
TRAVCO GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Risk management
Financial risk management
The group's principal financial instruments comprise bank balances, trade creditors, trade debtors and balances due from group and associated companies as well as individuals. The main purpose of these instruments is to raise funds for the group's operations and to finance the company's trading activities.
The group's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding. Balances are also held in foreign currencies in order for the group to trade with its suppliers and its customers.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by ensuring funds are available to meet amounts due.
In respect of balances due from group and associated companies, the directors are aware of the individual companies' finance requirements and had determined that these will only be repaid, in whole or in part, when sufficient funds are available.
Cyber security risk management
Travco utilises many of the most recommended companies to support cyber security and the group has implemented Crowd Strike virus protection across its network which protects the group from malicious software viruses and phishing via a technical attack. The group has IPS (intrusion prevention system) running on its main firewalls to protect itsnetwork from malicious attacks.
The group utilises Mimecast for email protection that filters out and tries to catch phishing emails that are aimed at obtaining customer/supplier and/or staff information for extortion. Further to this nearly all Travco systems/infrastructure can only be accessed from a computer within the domain, or accessed via a secure VPN connection for which the group uses SonicWall VPN solutions that require secure authenticated log-ins.
Key performance indicators
The group's key financial performance indicators during the year are as follows:
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| | |
| | |
| | |
Earnings before interest, tax, depreciation and amortisation | | |
| | |
Gross profit/loss and EBITDA percentage of turnover
Gross profit/loss as a percentage of turnover is viewed as a key performance indicator for the group and this is reviewed regularly. The EBITDA is a more comparable measure of the performance of the group which shows that the EBITDA percentage of turnover is 5.16% (2023: 3.51%). The results are considered encouraging considering the challenging market place. It is the intention of the group to continue to strengthen its financial performance in the industry by concentrating on expanding our market share, whilst at the same time improving margins and optimising operational costs.
TRAVCO GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
Other performance indicators
The directors also consider the following non-financial KPI of the business in relation to the year ended 29 February 2024.
The total room nights booked have increased from 900,255 nights in the year ended 28 February 2023 to 968,776 nights in the current year to 29 February 2024. This is an increase of 8% in comparison to the previous financial year.
J R Feilder
Director
26 November 2024
TRAVCO GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -
The directors present their annual report and financial statements for the year ended 29 February 2024.
Principal activities
The principal activities of the company continued to be those of being a holding company and property investment.
The principal activities of the subsidiaries continued to be that of a global wholesaler of hotel accommodation for resale purposes.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M S Allan
R D Allan
J R Feilder
Future developments
The directors have focused on technological advancements via its in-house reservation system by developing functionalities to support the product growth along with flexibility to meet technological requirements of clients.
Energy and carbon report
The group's only significant area of energy consumption and energy use is from the UK office.
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
171,654
197,806
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
0.31
0.21
0.31
0.21
Scope 2 - indirect emissions
- Electricity purchased
36.09
41.76
Total gross emissions
36.40
41.97
Intensity ratio
Tonnes CO2e per employee
0.63
0.78
TRAVCO GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 5 -
Quantification and reporting methodology
Energy consumption at the group's offices is based on meter readings provided by the energy supplier.
Emissions were calculated based on Government conversion factors 2024 for company reporting of greenhouse gas emissions.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per UK employee.
Measures taken to improve energy efficiency
The group's only significant area of energy consumption and energy use is from the UK office within which we have installed low wattage lamps which are turned off when staff are not present. Allowing Travco staff to work from home is now much more acceptable and prevalent so reducing the staff carbon footprint for commuting. Travco also encourages staff to participate in the UK Governments Cycle to work scheme.”
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and UK Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK (FRS 102).
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditors
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 auditors of the company are 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 auditors of the group and company are aware of that information.
On behalf of the board
J R Feilder
Director
26 November 2024
TRAVCO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRAVCO GROUP LIMITED
- 6 -
Opinion
We have audited the financial statements of Travco Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, 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 FRS 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 group's and the parent company's affairs as at 29 February 2024 and of the group's 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 group'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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
TRAVCO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRAVCO GROUP LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 group's and the parent 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 group or the parent 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the client partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the parent company and the group through discussions with directors, key management personnel and from our commercial knowledge and experience;
we focused on specific laws and regulations which we considered may have a direct effect on the financial statements or the operations of the parent company and the group including the Companies Act 2006, current taxation legislation, data protection, anti-bribery and money laundering, employment and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management;
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the parent company's and the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
TRAVCO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRAVCO GROUP LIMITED
- 8 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statements disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, enquiring of management over health and safety.
There are inherent limitations in our audit procedures described above. Auditing standards also limit the audit procedures required to identifying non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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.
...............................................................................
27 November 2024
Nirav Sheth (Senior Statutory Auditor)
for and on behalf of Charterhouse (Audit) Limited
Statutory Auditor
Charterhouse (Audit) Limited
166 College Road
Harrow
Middlesex
HA1 1RA
TRAVCO GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
121,000,719
103,102,889
Cost of sales
(106,415,475)
(91,328,642)
Gross profit
14,585,244
11,774,247
Administrative expenses
(13,263,576)
(12,709,346)
Other operating income
1,227,382
851,709
Operating profit/(loss)
4
2,549,050
(83,390)
Interest receivable and similar income
8
259,766
36,600
Interest payable and similar expenses
9
(366,119)
(212,665)
Profit/(loss) before taxation
2,442,697
(259,455)
Tax on profit/(loss)
10
(1,459,980)
(546,894)
Profit/(loss) for the financial year
982,717
(806,349)
Other comprehensive income
Revaluation of tangible fixed assets
101,600
Deferred taxation on revaluation of tangible fixed assets
23,940
180,960
Total comprehensive income for the year
1,006,657
(523,789)
Earnings before interest, tax, depreciation and amortisation (EBITDA)
6,247,859
3,623,562
Total comprehensive income for the year is all attributable to the owners of the parent company.
The statement of total comprehensive income has been prepared on the basis that all operations are continuing operations.
TRAVCO GROUP LIMITED
GROUP BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
21,441,997
25,015,664
Tangible assets
12
6,334,438
6,445,123
27,776,435
31,460,787
Current assets
Debtors
15
11,917,308
8,642,673
Cash at bank and in hand
9,891,711
10,051,696
21,809,019
18,694,369
Creditors: amounts falling due within one year
16
(20,074,825)
(20,629,031)
Net current assets/(liabilities)
1,734,194
(1,934,662)
Total assets less current liabilities
29,510,629
29,526,125
Creditors: amounts falling due after more than one year
17
(4,105,800)
(4,279,013)
Provisions for liabilities
19
(1,252,133)
(1,276,073)
Net assets
24,152,696
23,971,039
Capital and reserves
Called up share capital
21
12,896,861
13,721,861
Revaluation reserve
5,142,546
5,144,366
Capital redemption reserve
1,191,581
440,000
Profit and loss reserves
4,921,708
4,664,812
Total equity
24,152,696
23,971,039
The financial statements were approved by the board of directors and authorised for issue on 26 November 2024 and are signed on its behalf by:
26 November 2024
J R Feilder
Director
Company Registration No. 09276335
TRAVCO GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
6,680,400
6,776,160
Investments
13
36,261,353
36,261,353
42,941,753
43,037,513
Current assets
Cash at bank and in hand
14,220
4,805
Creditors: amounts falling due within one year
16
(399,641)
(420,761)
Net current liabilities
(385,421)
(415,956)
Total assets less current liabilities
42,556,332
42,621,557
Creditors: amounts falling due after more than one year
17
(25,547,782)
(25,340,749)
Provisions for liabilities
19
(1,252,133)
(1,276,073)
Net assets
15,756,417
16,004,735
Capital and reserves
Called up share capital
21
12,896,861
13,721,861
Revaluation reserve
2,107,975
2,109,795
Capital redemption reserve
751,581
Profit and loss reserves
173,079
Total equity
15,756,417
16,004,735
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £552,742 (2023 - £53,964 loss).
The financial statements were approved by the board of directors and authorised for issue on 26 November 2024 and are signed on its behalf by:
26 November 2024
J R Feilder
Director
Company Registration No. 09276335
TRAVCO GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 March 2022
13,721,861
4,878,979
440,000
5,453,988
24,494,828
Year ended 28 February 2023:
Loss for the year
-
-
-
(806,349)
(806,349)
Other comprehensive income:
Revaluation of tangible fixed assets
-
101,600
-
-
101,600
Tax relating to other comprehensive income
-
180,960
-
180,960
Total comprehensive income for the year
-
282,560
-
(806,349)
(523,789)
Transfer of excess depreciation to profit and loss reserves
-
(17,173)
-
17,173
-
Balance at 28 February 2023
13,721,861
5,144,366
440,000
4,664,812
23,971,039
Year ended 29 February 2024:
Profit for the year
-
-
-
982,717
982,717
Other comprehensive income:
Tax relating to other comprehensive income
-
23,940
-
23,940
Total comprehensive income for the year
-
23,940
-
982,717
1,006,657
Redemption of shares
21
(825,000)
-
-
-
(825,000)
Transfer of reserves
-
-
751,581
(751,581)
-
Transfer of excess depreciation to profit and loss reserves
-
(25,760)
-
25,760
-
Balance at 29 February 2024
12,896,861
5,142,546
1,191,581
4,921,708
24,152,696
TRAVCO GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 March 2022
13,721,861
1,844,408
209,870
15,776,139
Year ended 28 February 2023:
Loss for the year
-
-
-
(53,964)
(53,964)
Other comprehensive income:
Revaluation of tangible fixed assets
-
101,600
-
-
101,600
Tax relating to other comprehensive income
-
180,960
-
180,960
Total comprehensive income for the year
-
282,560
-
(53,964)
228,596
Transfer of excess depreciation to profit and loss reserves
-
(17,173)
-
17,173
-
Balance at 28 February 2023
13,721,861
2,109,795
173,079
16,004,735
Year ended 29 February 2024:
Profit for the year
-
-
-
552,742
552,742
Other comprehensive income:
Tax relating to other comprehensive income
-
23,940
-
23,940
Total comprehensive income for the year
-
23,940
-
552,742
576,682
Redemption of shares
21
(825,000)
-
-
-
(825,000)
Transfer of reserves
-
-
751,581
(751,581)
-
Transfer of excess depreciation to profit and loss reserves
-
(25,760)
-
25,760
-
Balance at 29 February 2024
12,896,861
2,107,975
751,581
15,756,417
TRAVCO GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
3,387,437
7,621,156
Interest paid
(366,119)
(212,665)
Income taxes paid
(735,052)
(61,170)
Net cash inflow from operating activities
2,286,266
7,347,321
Investing activities
Purchase of tangible fixed assets
(14,457)
(58,153)
Interest received
259,766
36,600
Net cash generated from/(used in) investing activities
245,309
(21,553)
Financing activities
Redemption of shares
(825,000)
(Repayment of) / increase in bank loans
(206,369)
(814,126)
Net cash used in financing activities
(1,031,369)
(814,126)
Net increase in cash and cash equivalents
1,500,206
6,511,642
Cash and cash equivalents at beginning of year
8,351,910
1,840,268
Cash and cash equivalents at end of year
9,852,116
8,351,910
Relating to:
Cash at bank and in hand
9,891,711
10,051,696
Bank overdrafts included in creditors payable within one year
(39,595)
(1,699,786)
TRAVCO GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
625,632
504,375
Interest paid
(334,102)
(190,360)
Income taxes paid
(10,526)
Net cash inflow from operating activities
281,004
314,015
Investing activities
Dividends received
759,780
Net cash generated from/(used in) investing activities
759,780
-
Financing activities
Redemption of shares
(825,000)
Repayment of bank loans
(206,369)
(314,126)
Net cash used in financing activities
(1,031,369)
(314,126)
Net increase/(decrease) in cash and cash equivalents
9,415
(111)
Cash and cash equivalents at beginning of year
4,805
4,916
Cash and cash equivalents at end of year
14,220
4,805
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 16 -
1
Accounting policies
Company information
Travco Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office and business address is Travco House, 92-94 Paul Street, London, EC2A 4UX.
The group consists of Travco Group Limited and all of its subsidiaries.
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 the revaluation of freehold properties. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated financial statements incorporate those of Travco Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 29 February 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the parent company and the group 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.
1.4
Turnover
Turnover, which arises globally from the group's principal activities, is the amount derived from the provision of services falling within the group's ordinary activities after deduction of trade discounts and value added tax.
Turnover derived from hotel bookings is recognised at the point at which the reservation commences, i.e. upon arrival.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 15 years. This is based on the continuity of the business and future expectations.
1.6
Tangible fixed assets
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
over 50 years
Leasehold improvements
20% on cost
Plant and equipment
33% on cost
Fixtures and fittings
20% on cost
Computers
33% on cost
Freehold land is not depreciated.
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 recognised in the profit and loss account.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.
1.7
Fixed asset investments
In the parent company financial statements, investments in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
1.8
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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).
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
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 recoverable amount. The impairment loss is recognised in profit or loss.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans that are classified as debt, 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 are not amortised.
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.
1.11
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.13
Retirement benefits
The group operates a defined contribution plan. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate fund. Under defined contribution plans, the group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current period.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.15
The Redeemable Preference shares are classified as equity in accordance with Section 22 (liabilities and equity) as they are redeemable at the option of the issuer and do not carry a right to a return.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Establishing useful economic lifes for amortisation purposes of intangible fixed assets
Intangible fixed assets consist of goodwill. The annual amortisation charge depends on the estimated useful economic life of the asset. The directors regularly review the remaining useful life of the asset. Changes in asset useful economic life can have a significant impact on amortisation charge for the period. Detail of the useful economic life is included in accounting policies.
Establishing useful economic lives for depreciation purposes of tangible fixed asset
Tangible fixed assets, consisting primarily of plant and machinery, fixtures and fittings and freehold land and buildings. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimated residual values. The directors regularly review these asset useful lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Detail of the useful economic lives is included in the accounting policies.
Provision for doubtful debts
The group makes an estimate of the recoverable value of the trade and other debtors. The group uses estimates based on historical experience determining the level of debts, which the group believes, will not be collected. These estimates include such factors as the current credit rating of the debtor, the aging profile of the debtors and historical experience. Any significant reduction in the level of customers that default on payments or other significant improvements that resulted in a reduction in the level of bad debt provision would have a positive impact on the operating results. The level of provision required is reviewed on an on-going basis and is disclosed in note 15.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Wholesale of hotel accommodation
121,000,719
103,102,889
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Other significant revenue
Interest income
259,766
36,600
In the opinion of the directors it would be seriously prejudicial to the interests of the group to disclose the geographical market breakdown of turnover in these financial statements.
4
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(246,837)
111,873
Depreciation of owned tangible fixed assets
125,142
133,285
Amortisation of intangible assets
3,573,667
3,573,667
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditors:
£
£
For audit services
Audit of the financial statements of the company
7,440
6,825
Audit of the financial statements of the company's subsidiaries
21,657
31,725
29,097
38,550
For other services
All other non-audit services
7,300
7,875
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
165
154
3
3
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
6
Employees
(Continued)
- 21 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,208,812
5,288,962
Social security costs
733,119
660,775
-
-
Pension costs
275,672
268,713
7,217,603
6,218,450
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
360,000
360,000
Company pension contributions to defined contribution schemes
36,000
36,000
396,000
396,000
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
120,000
120,000
Company pension contributions to defined contribution schemes
12,000
12,000
Directors are also considered to be the only key management personnel.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
213,735
30,195
Other interest income
46,031
6,405
Total income
259,766
36,600
Interest income includes the following:
Interest on financial assets not measured at fair value through profit or loss
213,735
30,195
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
334,533
212,368
Other finance costs:
Other interest
31,586
297
Total finance costs
366,119
212,665
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,458,361
546,681
Foreign current tax on profits for the current period
1,619
213
Total current tax
1,459,980
546,894
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
2,442,697
(259,455)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
611,253
(49,296)
Tax effect of expenses that are not deductible in determining taxable profit
637
540
Gains not taxable
(12,500)
(9,499)
Effect of change in corporation tax rate
(30,261)
-
Depreciation
31,226
25,365
Amortisation
893,417
678,997
Capital allowances
(33,568)
(42,126)
Losses brought forward
-
(56,901)
Other adjustments
(224)
(186)
Taxation charge
1,459,980
546,894
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
10
Taxation
(Continued)
- 23 -
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
(165,000)
Timing difference of depreciation
(23,940)
(15,960)
Total tax recognised in other comprehensive income
(23,940)
(180,960)
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 March 2023 and 29 February 2024
53,605,000
Amortisation and impairment
At 1 March 2023
28,589,336
Amortisation charged for the year
3,573,667
At 29 February 2024
32,163,003
Carrying amount
At 29 February 2024
21,441,997
At 28 February 2023
25,015,664
The company had no intangible fixed assets at 29 February 2024 or 28 February 2023.
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 24 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost or valuation
At 1 March 2023
6,840,000
13,066
1,669,742
534,750
8,857
9,066,415
Additions
13,624
833
14,457
At 29 February 2024
6,840,000
13,066
1,683,366
535,583
8,857
9,080,872
Depreciation and impairment
At 1 March 2023
453,507
7,555
1,629,145
522,492
8,593
2,621,292
Depreciation charged in the year
95,760
1,173
21,057
6,888
264
125,142
At 29 February 2024
549,267
8,728
1,650,202
529,380
8,857
2,746,434
Carrying amount
At 29 February 2024
6,290,733
4,338
33,164
6,203
6,334,438
At 28 February 2023
6,386,493
5,511
40,597
12,258
264
6,445,123
Company
Freehold land and buildings
£
Cost or valuation
At 1 March 2023 and 29 February 2024
6,840,000
Depreciation and impairment
At 1 March 2023
63,840
Depreciation charged in the year
95,760
At 29 February 2024
159,600
Carrying amount
At 29 February 2024
6,680,400
At 28 February 2023
6,776,160
In the opinion of the directors, there is no material difference between the carrying value of the freehold land and buildings in the accounts and the open market value as at the balance sheet date.
If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
12
Tangible fixed assets
(Continued)
- 25 -
2024
2023
£
£
Group
Cost
992,796
992,796
Accumulated depreciation
(267,482)
(256,259)
Carrying value
725,314
736,537
Company
Cost
992,796
992,796
Accumulated depreciation
(267,482)
(256,259)
Carrying value
725,314
736,537
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
36,261,353
36,261,353
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 March 2023 and 29 February 2024
36,261,353
Carrying amount
At 29 February 2024
36,261,353
At 28 February 2023
36,261,353
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 26 -
14
Subsidiaries
Details of the company's subsidiaries at 29 February 2024 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Travco Corporation Limited
1
Wholesale tour operator
Ordinary
100.00
-
Travco International Limited
1
Non trading
Ordinary
0
100.00
Travco Canada Travel Limited
2
Wholesale tour operator
Ordinary
0
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Travco House, 92-94 Paul Street, London, EC2A 4UX
2
Suite 2300, 925 West Georgia Street Vancouver BC V6C 3L2, Canada
Audit exemption of subsidiaries
For the financial year ended 29 February 2024, Travco International Limited claimed exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,296,620
7,374,400
Other debtors
3,126,635
837,603
Prepayments and accrued income
494,053
430,670
11,917,308
8,642,673
-
-
The fair value of trade and other receivables approximate to their carrying amounts. Trade debtors are stated after provisions for doubtful debts of £100,000 (2023: £150,000).
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
343,728
2,037,075
304,133
337,289
Trade creditors
15,715,408
15,660,528
Corporation tax payable
1,235,549
510,621
10,526
Other taxation and social security
52,259
40,263
-
-
Other creditors
2,128,233
1,782,375
Accruals and deferred income
599,648
598,169
95,508
72,946
20,074,825
20,629,031
399,641
420,761
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 27 -
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
4,105,800
4,279,013
4,105,800
4,279,013
Amounts owed to group undertakings
21,441,982
21,061,736
4,105,800
4,279,013
25,547,782
25,340,749
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
4,409,933
4,616,302
4,409,933
4,616,302
Bank overdrafts
39,595
1,699,786
4,449,528
6,316,088
4,409,933
4,616,302
Payable within one year
343,728
2,037,075
304,133
337,289
Payable after one year
4,105,800
4,279,013
4,105,800
4,279,013
The bank loans are secured by a legal charge on the freehold property owned by the group. Interest is charged on the bank loan at a commercial rate. The bank loans were initially repayable in June and August 2023 but since then have been amalgamated and is fully repayable by June 2026.
19
Deferred taxation
The following is the analysis of the deferred tax balances for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Group
£
£
Freehold land and buildings revaluations
1,252,133
1,276,073
Liabilities
Liabilities
2024
2023
Company
£
£
Freehold land and buildings revaluations
1,252,133
1,276,073
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
19
Deferred taxation
(Continued)
- 28 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 March 2023
1,276,073
1,276,073
Credit to other comprehensive income
(23,940)
(23,940)
Liability at 29 February 2024
1,252,133
1,252,133
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
275,672
268,713
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,020
4,020
4,020
4,020
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Redeemable Preference shares of £1 each
12,892,841
13,717,841
12,892,841
13,717,841
Preference shares classified as equity
12,892,841
13,717,841
Total equity share capital
12,896,861
13,721,861
The company has one class of ordinary shares which carry no right to fixed income.
The redeemable preference shares do not carry voting rights.
During the year £825,000 (2023: £Nil) Redeemable Preference Shares of £1 each were redeemed at par value.
22
Financial commitments, guarantees and contingent liabilities
There is a debenture secured by way of a fixed and floating charge against the assets of the group. There are cross guarantees between the group companies in respect this debenture.
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 29 -
23
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
-
173,418
-
-
-
173,418
-
-
24
Controlling party
The company is controlled by the directors with no single party having an overall control.
The group is controlled by the directors with no single party having an overall control.
25
Related party transactions
Group and company
Included in other debtors, is a balance of £3,057,572 (2023: £822,548) due from the directors. The maximum balance outstanding during the year was £3,057,572 (2023: £822,548) and during the year interest of £46,031(2023: £6,534) was charged on this balance at HMRC's official rate.
26
Cash generated from group operations
2024
2023
£
£
Profit/(loss) for the year after tax
982,717
(806,349)
Adjustments for:
Taxation charged
1,459,980
546,894
Finance costs
366,119
212,665
Investment income
(259,766)
(36,600)
Amortisation and impairment of intangible assets
3,573,667
3,573,667
Depreciation and impairment of tangible fixed assets
125,142
133,285
Movements in working capital:
Increase in debtors
(3,274,635)
(5,231,262)
Increase in creditors
414,213
9,228,856
Cash generated from operations
3,387,437
7,621,156
TRAVCO GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 30 -
27
Cash generated from operations - company
2024
2023
£
£
Profit/(loss) for the year after tax
552,742
(53,964)
Adjustments for:
Taxation charged
10,526
Finance costs
334,102
190,360
Investment income
(759,780)
Depreciation and impairment of tangible fixed assets
95,760
98,840
Movements in working capital:
Increase in creditors
402,808
258,613
Cash generated from operations
625,632
504,375
28
Analysis of changes in net funds - group
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
10,051,696
(159,985)
9,891,711
Bank overdrafts
(1,699,786)
1,660,191
(39,595)
8,351,910
1,500,206
9,852,116
Borrowings excluding overdrafts
(4,616,302)
206,369
(4,409,933)
3,735,608
1,706,575
5,442,183
29
Analysis of changes in net debt - company
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
4,805
9,415
14,220
Borrowings excluding overdrafts
(4,616,302)
206,369
(4,409,933)
(4,611,497)
215,784
(4,395,713)
2024-02-292023-03-01falseCCH SoftwareCCH Accounts Production 2024.100M S AllanR D AllanJ R 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