Company registration number 09388257 (England and Wales)
SELECT SCHOOL TRAVEL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
SELECT SCHOOL TRAVEL LIMITED
COMPANY INFORMATION
Directors
Mr M J Bowden
Mr I Foxall
Mr S J Spooner
Mrs J Williams
Mr N Abraham
(Appointed 1 December 2023)
Mr J D Maine
(Appointed 20 May 2024)
Mr J C Pinca
(Appointed 6 March 2024)
Secretary
Mr S J Spooner
Company number
09388257
Registered office
30 Church Road
Burgess Hill
West Sussex
RH15 9AE
Auditor
Sumer Audit
5 Peveril Court
6-8 London Road
Crawley
West Sussex
RH10 8JE
SELECT SCHOOL TRAVEL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
SELECT SCHOOL TRAVEL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of the business
Select School Travel Limited is a provider of Ski and Educational tours to school groups in the independent and state school sector travelling to Europe and worldwide destinations.
The strategy of the business is three-fold:
to promote affordable tours to a wide range of schools ensuring all pupils have equal opportunity to participate in the educational benefit of school trips regardless of budget.
To identify and explore additional profitable opportunities involving the use of the company’s existing resources.
To identify and explore the feasibility of environmentally sustainable travel.
In keeping with the company’s overall strategy, the directors have approved the company’s expansion into the Italian ski market by offering price sensitive tours and are embarking on the expansion of hotel capacity in France to expand the educational summer tours offering.
The company has two main products, ski tours and educational tours. The ski product operates trips for schools to third party hotels in Europe and North America. The educational tours product provides trips to UK, Europe and North America and have a mixture of history, language and cultural themes.
Turnover in 2023/24 has increased by £8.5m from the total of £15.9m in 2022/23. This is largely due to increased expansion in both educational tours and Ski tours as well as price rises brought about by the cost of living crisis. Orders for the company’s Ski and Educational tours product continue to be strong throughout the year with much of 2024/25 business already secured. Gross profit margin has increased by 1.2%, up from 16.3% in 2022/23, largely driven by more efficient sourcing from our supplier partners. Headcount has increased to facilitate the expanded programme. Net Assets have increased by some £1.8m from £2.6m in 2022/23, as the company continues to streamline its operations eliminating wastage and reducing the average passenger costs.
Principal risks and uncertainties
The directors have identified the following principal risks and uncertainties affecting the company:
Climate Change – Severe weather events could cause disruption of trips or a change in customer preferences. The company is particularly reliant on snow conditions for the ski season, long term climate change could potentially cause disruption in the future, but directors do not consider it to be an immediate risk to operations or customer perceptions.
Health and safety – The Directors regard health and safety with the upmost importance for both customers, employees of the company and its service providers. The company imposes strict health and safety guidelines and adheres to the directives set out by the Schools Travel Forum. Schools are required to perform their own risk assessment, however there is a risk of reputational damage and financial cost for the company.
Foreign Currency - The company is exposed to foreign currency exchange risk. The company predominately transacts in Euros and US Dollars. A fall in currency would result in increased costs denominated in Sterling. The exposure is mitigated by entering into derivative financial instruments to forward currency requirements as a means of hedging.
Suppliers – The providers of Ski and Educational tours are required to make payments in advance to secure accommodation and services. The company regularly negotiates with suppliers to reduce the levels and timings of prepayments to minimise exposure.
Destination Disruption – Recent years have seen increased geopolitical risks in Europe and worldwide, which have added costs to the company cost base. The directors have mitigated the exposure by appropriate price rises, but further deterioration of the geopolitical landscape could further expose the company to unsustainable price rises. General instability and terrorism can affect customer perception, the company follows the UK Government’s Foreign Office advice to minimise exposure to customers.
SELECT SCHOOL TRAVEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Customer Demand and competitiveness – The company monitors closely the willingness for schools and parents to travel given the cost of living increases. The directors continue to assess market conditions and will amend prices to maximise customer demand for its products and deliver sustainable financial returns. Moreover, the directors continually strive to ensure competitiveness by ensuring our IT systems deliver operational efficiency and customer satisfaction.
Cyber Security – The Directors are responsible for ensuring the confidentiality, integrity and availability for the data the company holds for guests, suppliers and employees. Any cyber breach is likely to have serious consequences from regulators, and cause reputational damage. The company therefore employs strict information security software and procedures to mitigate risk.
Regulatory Requirements – The company is regulated by the CAA, ABTA and ABTOT, failure to meet adequate financial criteria could lead to removal of the licence or increased bonding requirements. The Directors constantly monitor the company’s financial performance to ensure regulatory compliance.
Key performance indicators
The company monitors its performance using a number of measures. These include:
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Average revenue per passenger | | |
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During the year, current liabilities increased by £2.9m to £6.7m, an increase of 73%. This is due to an increase in client monies paid in advance which reflects both an earlier booking pattern and strong sales growth. Cash balances increased by £3.8m to £10.2m, an increase of 58%.
The company doubled its investment in IT, Website development and the company’s bespoke reservation system to £70,615 (2023: £35,187) reflecting a commitment to improve operational efficiency and stronger marketing focus.
Mr S J Spooner
Director
22 July 2024
SELECT SCHOOL TRAVEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors present their report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company is that of the provision of package holidays to schools.
Branches
The company operates a branch in France which operates a Chateau used by the company.
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.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M J Bowden
Mr I Foxall
Mr S J Spooner
Mrs J Williams
Mr N Abraham
(Appointed 1 December 2023)
Mr J D Maine
(Appointed 20 May 2024)
Mr J C Pinca
(Appointed 6 March 2024)
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Foreign currency risk
The company’s principal foreign currency exposures arise from trading with overseas companies. The company makes use of foreign exchange forward contracts where necessary.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
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.
SELECT SCHOOL TRAVEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
On behalf of the board
Mr S J Spooner
Director
22 July 2024
SELECT SCHOOL TRAVEL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SELECT SCHOOL TRAVEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SELECT SCHOOL TRAVEL LIMITED
- 6 -
Opinion
We have audited the financial statements of Select School Travel Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the statement of financial position, 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 30 April 2024 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.
SELECT SCHOOL TRAVEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SELECT SCHOOL TRAVEL LIMITED
- 7 -
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.
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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;
Obtaining an understanding of the company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and
Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.
As a result of these procedures, we considered the opportunities and incentives that may exist within the
company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: ATOL, ABTA and ABTOT, employment law, and compliance with the UK Companies Act.
SELECT SCHOOL TRAVEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SELECT SCHOOL TRAVEL LIMITED
- 8 -
In addition to the above, our procedures to respond to risks identified included the following:
Making enquiries of management, about any known or suspected instances of non-compliance with laws and regulations and fraud, including ATOL, ABTA and ABTOT;
Reviewing minutes of meetings of the board and senior management;
Reading correspondence with regulators;
Challenging assumptions and judgements made by management in their significant accounting estimates such as the legal provision; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
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.
Tony Summers (Senior Statutory Auditor)
For and on behalf of Sumer Audit
23 July 2024
Chartered Accountants
Statutory Auditor
Crawley
Sumer Audit is the trading name of Sumer Auditco Limited
SELECT SCHOOL TRAVEL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Revenue
3
24,422,349
15,879,868
Cost of sales
(20,159,014)
(13,291,459)
Gross profit
4,263,335
2,588,409
Administrative expenses
(2,122,973)
(1,556,268)
Operating profit
4
2,140,362
1,032,141
Investment income
7
262,710
52,180
Finance costs
(50)
(74)
Fair value gains and losses on foreign exchange contracts
18,874
(41,677)
Profit before taxation
2,421,896
1,042,570
Tax on profit
8
(603,462)
(196,827)
Profit for the financial year
1,818,434
845,743
The income statement has been prepared on the basis that all operations are continuing operations.
SELECT SCHOOL TRAVEL LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024
2024-04-30
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
9
40,247
29,548
Property, plant and equipment
10
69,079
40,674
Investments
11
1
1
109,327
70,223
Current assets
Inventories
1,967
1,984
Trade and other receivables
14
1,232,911
687,173
Cash and cash equivalents
10,224,017
6,471,892
11,458,895
7,161,049
Current liabilities
15
(6,740,000)
(3,884,784)
Net current assets
4,718,895
3,276,265
Total assets less current liabilities
4,828,222
3,346,488
Non-current liabilities
16
(27,000)
(363,700)
Provisions for liabilities
Provisions
17
375,229
375,229
(375,229)
(375,229)
Net assets
4,425,993
2,607,559
Equity
Called up share capital
19
946,000
946,000
Retained earnings
3,479,993
1,661,559
Total equity
4,425,993
2,607,559
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 22 July 2024 and are signed on its behalf by:
Mr S J Spooner
Director
Company registration number 09388257 (England and Wales)
SELECT SCHOOL TRAVEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 May 2022
946,000
815,816
1,761,816
Year ended 30 April 2023:
Profit and total comprehensive income
-
845,743
845,743
Balance at 30 April 2023
946,000
1,661,559
2,607,559
Year ended 30 April 2024:
Profit and total comprehensive income
-
1,818,434
1,818,434
Balance at 30 April 2024
946,000
3,479,993
4,425,993
SELECT SCHOOL TRAVEL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
3,766,801
1,804,234
Interest paid
(50)
(74)
Income taxes paid
(201,462)
(74,827)
Net cash inflow from operating activities
3,565,289
1,729,333
Investing activities
Purchase of intangible assets
(31,135)
(22,784)
Purchase of property, plant and equipment
(44,739)
(15,766)
Proceeds on disposal of property, plant and equipment
22,500
Proceeds from other investments and loans
5,974
Interest received
262,710
52,180
Net cash generated from investing activities
186,836
42,104
Net cash used in financing activities
Net increase in cash and cash equivalents
3,752,125
1,771,437
Cash and cash equivalents at beginning of year
6,471,892
4,700,455
Cash and cash equivalents at end of year
10,224,017
6,471,892
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
1
Accounting policies
Company information
Select School Travel Limited is a private company limited by shares incorporated in England and Wales. The registered office is 30 Church Road, Burgess Hill, West Sussex, RH15 9AE.
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 £1.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 394A of the Companies Act 2006 not to prepare consolidated accounts, on the basis that, its subsidiary, Select Travel (Transport) Limited, is dormant. The financial statements present information about the company as an individual entity.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational exitance for the foreseeable future. The directors have considered relevant information, including the company's principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment, Based on these assessments and having regard to the resources available to the entity, the directors have conclude that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements. true
1.3
Revenue
Revenue represents amounts received for tours net of VAT and trade discounts and is recognised on the date of departure.
Where a booking is cancelled, cancellation income is contractually due and is determined by the timing of the cancellation, relative to the departure date, based on the terms and conditions or a mutually agreed compromise agreement. The income is recognised upon cancellation.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Website
3 years straight line
1.5
Property, plant and equipment
Property, plant and equipment are measured at cost, net of depreciation and any impairment losses.
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
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:
Plant and machinery etc
4 years straight line
Overseas fixtures, fittings & equipment
4 years straight line
Fixtures fittings and equipment
3 years 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.
1.6
Non-current investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include deposits held at call with banks.
1.9
Financial instruments
The company 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.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.
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 trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense. Used holiday entitlement is recognised in the period employee services are received. Termination benefits are included immediately as an expense.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.17
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.
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Provisions
Where material contingent liabilities exist, the directors obtain legal advice in making any judgements as to whether a provision is required and the quantum involved.
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.
Provisions
Where all details relating to potential claims are not known, extrapolations of known data is used to quantify the possible amounts involved.
3
Revenue
An analysis of the company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Tour income
23,653,726
15,194,079
Cancellation income
236,870
290,107
Excersion supplement
299,179
194,280
Other supplements
154,388
98,865
Other income
78,186
102,537
24,422,349
15,879,868
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
24,422,349
15,879,868
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Revenue
(Continued)
- 17 -
2024
2023
£
£
Other revenue
Interest income
262,710
52,180
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,023
(22,369)
Fees payable to the company's auditor for the audit of the company's financial statements
19,300
37,050
Depreciation of owned property, plant and equipment
16,334
13,749
Profit on disposal of property, plant and equipment
-
(22,500)
Amortisation of intangible assets
20,436
11,881
Operating lease charges
18,732
12,937
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales
2
1
Travel Advisors
8
7
Marketing
1
1
Administrative
5
3
Commercial & Operations
12
7
Directors
5
4
Total
33
23
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,103,523
824,745
Social security costs
113,675
85,041
Pension costs
27,532
24,642
1,244,730
934,428
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
289,913
299,110
Company pension contributions to defined contribution schemes
13,771
13,186
303,684
312,296
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
72,710
83,110
Company pension contributions to defined contribution schemes
1,262
1,274
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
262,710
52,180
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
262,710
52,180
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
604,000
202,000
Foreign current tax on profits for the current period
(538)
(5,173)
Total current tax
603,462
196,827
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
8
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:
2024
2023
£
£
Profit before taxation
2,421,896
1,042,570
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
605,474
198,088
Tax effect of expenses that are not deductible in determining taxable profit
539
66
Change in unrecognised deferred tax assets
(1,675)
(1,275)
Permanent capital allowances in excess of depreciation
(1,077)
Other
(876)
1,025
Taxation charge for the year
603,462
196,827
9
Intangible fixed assets
Website
£
Cost
At 1 May 2023
211,027
Additions
31,135
At 30 April 2024
242,162
Amortisation and impairment
At 1 May 2023
181,479
Amortisation charged for the year
20,436
At 30 April 2024
201,915
Carrying amount
At 30 April 2024
40,247
At 30 April 2023
29,548
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
10
Property, plant and equipment
Plant and machinery etc
Overseas fixtures, fittings & equipment
Fixtures fittings and equipment
Total
£
£
£
£
Cost
At 1 May 2023
27,635
71,882
15,138
114,655
Additions
18,366
24,146
2,227
44,739
At 30 April 2024
46,001
96,028
17,365
159,394
Depreciation and impairment
At 1 May 2023
15,765
43,344
14,872
73,981
Depreciation charged in the year
7,798
7,701
835
16,334
At 30 April 2024
23,563
51,045
15,707
90,315
Carrying amount
At 30 April 2024
22,438
44,983
1,658
69,079
At 30 April 2023
11,870
28,538
266
40,674
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
1
1
12
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Select Travel (Transport) Limited
30 Church Road, Burgess Hill, West Sussex, RH15 9AE
Ordinary
100.00
13
Financial instruments
2024
2023
£
£
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
13,216
32,090
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
14
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
85,302
47,479
Other receivables
90,630
82,199
Prepayments and accrued income
1,056,979
557,495
1,232,911
687,173
15
Current liabilities
2024
2023
£
£
Payments received on account
5,100,239
2,643,420
Trade payables
489,824
379,800
Corporation tax
604,000
202,000
Other taxation and social security
37,639
67,125
Derivative financial instruments
13,216
32,090
Other payables
17,447
8,522
Accruals and deferred income
477,635
551,827
6,740,000
3,884,784
The company has provided a £200,000 (2023 - £100,000) deposit to NatWest in relation to a forward currency facility, which is secured by a debenture.
Included within Payments received on account is £5,100,239 (2023 - £2,643,420) in relation to payments received in advance for future trips.
Forward foreign exchange contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivates are the forward rates for GBP:EUR, GBP:USD and GBP:CAD. The fair value of forward contracts outstanding at the year end is £13,216 and are included in other payables (2023 - £32,090 and are included in other payables).
16
Non-current liabilities
2024
2023
£
£
Payments received on account
27,000
14,700
Other payables
349,000
27,000
363,700
17
Provisions for liabilities
2024
2023
£
£
Subrogation claim and legal costs
375,229
375,229
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
17
Provisions for liabilities
(Continued)
- 22 -
A provision has been recognised in relation to potential subrogation claims against the company, in relation to bookings which have been cancelled by schools and then subsequently claimed on the schools' insurance. The directors have taken legal advice and determined that a provision be recognised in respect of this potential claim together with the legal fees expected to be incurred in fighting the claims.
Movements on provisions:
Subrogation claim and legal costs
£
At 1 May 2023 and 30 April 2024
375,229
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
27,532
24,642
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.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
946,000
946,000
946,000
946,000
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
72,412
96,325
Between two and five years
33,333
46,655
105,745
142,980
21
Related party transactions
Transactions with related parties
During the year the company had the following transactions with related parties, all of whom are related parties by virtue of having either common directors or shareholders, and all transactions were entered into on a commercial arms length basis.
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Related party transactions
(Continued)
- 23 -
The company incurred costs of £1,716 (2023: £13,200) from Select Chalets and Hotels Limited.
At the statement of financial position date the amounts owed to Select Chalets and Hotels Limited was £763 (2023: £nil)
.
The company incurred costs of £120,565 (2023: £116,627) from Sarl Chateau Colombieries.
At the statement of financial position date the amounts owed to Sarl Chateau Colombieries was £nil (2023: £nil).
The company incurred costs of £25,000 (2023: £nil) from Blackdog Estate Investments.
At the statement of financial position date the amounts owed to Blackdog Estate Investments was £6,250 (2023: £nil).
22
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr M J Bowden - Invoices paid and recharged
-
(104)
359
(255)
-
(104)
359
(255)
-
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,818,434
845,743
Adjustments for:
Taxation charged
603,462
196,827
Finance costs
50
74
Investment income
(262,710)
(52,180)
Gain on disposal of property, plant and equipment
-
(22,500)
Fair value (gain)/loss on foreign exchange contracts
(18,874)
41,677
Amortisation and impairment of intangible assets
20,436
11,881
Depreciation and impairment of property, plant and equipment
16,334
13,749
Movements in working capital:
Decrease in inventories
17
433
Increase in trade and other receivables
(545,738)
(203,499)
Increase in trade and other payables
2,135,390
972,029
Cash generated from operations
3,766,801
1,804,234
SELECT SCHOOL TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
24
Analysis of changes in net funds
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
6,471,892
3,752,125
10,224,017
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