REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2024 |
FOR |
ARP AFRICA TRAVEL LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2024 |
FOR |
ARP AFRICA TRAVEL LIMITED |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Statement of Profit or Loss and Other Comprehensive Income | 8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Statement of Cash Flows | 11 |
Notes to the Financial Statements | 12 |
Reconciliation of Equity | 26 |
Reconciliation of Profit | 28 |
ARP AFRICA TRAVEL LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
1 Doughty Street |
London |
WC1N 2PH |
BANKERS: |
129 High Street |
Southampton |
SO1 0PE |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
The directors present their strategic report for the year ended 31st October 2024. |
REVIEW OF BUSINESS |
The company's results and KPIs are as follows: |
2024 | 2023 |
£ | £ |
Turnover | 62,388,284 | 53,355,746 |
Gross Profit | 10,558,384 | 8,614,410 |
Profit/(loss) after tax | 6,243,777 | 5,354,365 |
The directors employ a number of KPIs to monitor the performance of the business on monthly basis. These include financial indicators such as margin per passenger and gross margin, and non-financial monitoring such as sales volumes, conversion rates, etc. |
Turnover increased by 17.1% from £53.3 m to £62.4 m. 2023/24 was a year of rapid recovery for the travel industry with business rebounding to surpass pre-pandemic levels after the lifting of many travel restrictions. The outlook remains positive with a very high intent to travel seen across the client base in the company's key markets. |
The directors continue to monitor the impact of the cost of living crisis. Continued high inflation, and rising interest rates are certainly driving change in consumer behaviour and on holiday bookings, as customers shift their plans dependant on their budgets and personal circumstances. The more pertinent challenge however is rising costs, with continued cost pressure at all touch points. The directors are monitoring this closely, with a view of offsetting these increases with improvements in operational efficiencies. The Company remains committed to continually reviewing and adapting its tour program to reflect current global trends and opportunities. |
TRANSITION TO UK-ADOPTED INTERNATIONAL ACCOUNTING STANDARDS |
The company has prepared its financial statements for the year ended 31st October 2024 in accordance with UK-adopted International Accounting Standards ('UK-adopted IAS' or 'IFRS') for the first time. Prior to this, the company had prepared its financial statements in accordance with FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland ('FRS 102'). |
The decision to transition from FRS 102 to UK-adopted IAS was made as part of the company's strategy to align with International Accounting Standards and provide a more transparent and consistent reporting framework. This move is expected to enhance the comparability and credibility of the company's financial statements, and to provide greater clarity for various stakeholders. |
The transition from FRS 102 to UK-adopted IAS has resulted in few key changes in the company's financial reporting, which have been explained in detail in Note 2 and in the accompanying notes to the financial statements. |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Successful management of existing and emerging risks is critical to the long-term success of the Company's business. To take advantage of market opportunities and leverage the potential for success, risk must be accepted to a reasonable degree, therefore risk management is an integral component of our business and corporate governance. Our risk management system is not limited to identifying only those developments that could jeopardise the company's continued existence, but it also includes the active management of all other material risks. |
There are several risks associated with the Company's activities, including fluctuations in currency values, terrorism, civil unrest, strikes, illness, bad weather, and other natural occurrences. |
The balance sheet continues to demonstrate the Directors' strong belief that prudent management of our cash reserves is of utmost importance. This enables the company to manage all the risks described below and to weather any prolonged downturn in business.The risks listed below are the principal risks to which we are exposed but are not exhaustive and will evolve over time due to the dynamic nature of the business. |
Market risk |
The Company is reliant on the desire of the end-customers to go on tailor-made safaris. The Company has seen strong demand for travel in all markets post pandemic. This is expected to continue in the short term despite ongoing inflationary and costs of living pressures on the general economy. |
The Company continues to focus on the quality of its service and is continually reviewing the experiences it offers to meet the changing market demands. The Company reviews its marketing strategies on an ongoing basis. |
Financial risk management |
The Company's activities expose it to a variety of financial risks, liquidity risks, foreign exchange risk and credit risk. |
Financial risk |
The Company's principal financial instruments are forward foreign exchange contracts, trade payables and trade receivables. The main purpose of these financial instruments is to maintain funds for the Company's operations.Exposure to price risk is limited by the financial instruments used by the Company. The Company's approach to managing other risks applicable to the financial instruments is shown below. |
Liquidity risk |
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of current accounts, deposit accounts and money market facilities. |
The Company monitors its cash balance on a regular basis to ensure that all foreseeable future needs can be met from available resources. |
Foreign exchange risk |
The Company has exposure to currency movements due to timing of payments to suppliers in foreign currencies. The Company uses foreign currency derivatives to hedge its exposure to foreign currency risk. |
Credit risk |
The Company's principal financial assets are cash and trade receivables. |
The Company does not have significant credit risk. All amounts due from customers must be settled prior to departure, minimising exposure to credit risk and all cash is held by banks with high credit ratings assigned by international rating agencies. |
Reliance on key suppliers |
Providers of holiday are exposed to the inherent risk of failure in their key suppliers particularly hotels. This is heightened by the industry convention of paying hoteliers in advance ("prepayments") to secure a level of room allocations for the season as well as in areas where a single supplier is used to provide a service. |
There is the risk that we are unable to continue with our core operations in the event of a major service failure from our key suppliers. |
Methods of mitigating the risk include: |
- | Use of reputable and financially stable suppliers, particularly in areas where a single supplier is used to provide a service. |
- | Strong working relationship with all key suppliers and regularly monitoring suppliers performance against agreed terms and conditions. |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
Disruptions within our destinations |
Providers of holidays are exposed to the inherent risk of external events affecting destinations. This can include political instability or wars close to our destinations in Africa or outbreak of disease such as COVID-19 pandemic. |
There is the risk that if such an event occurs, impact one or more of our destinations that we could potentially suffer operational disruption and costs. The event could lead to a significant decline in demand for holidays to the affected destinations over an extended period of time. |
We mitigate this risk by implementing the following measures: |
- | offering safaris holiday destinations to multiple destinations to reduce dependence on a single region or country. |
- | reviewing our cancellation and rebooking options to customers in case of disruptions to retain goodwill and encourage future bookings. |
- | offering alternative safaris packages where possible. |
- | having a comprehensive crisis management plan to respond quickly to external disruptions. |
- | establishing clear communication with customers, employees, and stakeholders during emergencies. |
- | maintaining transparent and proactive communication with customers about any safety concerns. |
- | ensuring agreements with our service providers allow for adjustments or refunds in emergencies without incurring excessive costs. |
- | conducting regular risk assessments to identify and respond to emerging threats. |
Security health & safety breach |
The safety and security of customers is of paramount importance to any holiday service provider. There is a risk of accidents, incidents or events occurring causing illness, injury or death to customers whilst on a holiday. In addition to the harm caused to the affected individual(s), this could result in disruption to operational activities, reputational damage to the business and financial liabilities through loss of earnings, lack of demand or legal claims being brought by the affected parties. |
We work closely with suppliers who have demonstrated strong compliance of local and international safety standards. We also inspect facilities, transportation and activities to identify and mitigate hazards. |
ON BEHALF OF THE BOARD: |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
The directors present their report with the financial statements of the company for the year ended 31st October 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a B2B overseas tour operator. |
DIVIDENDS |
Dividends amounting to £5.5m were paid during the year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st November 2023 to the date of this report. |
FOREIGN EXCHANGE |
The company, given the nature of business, earns revenues predominantly in US Dollars and Euros. For UK statutory purposes, the company reports its financial results in Pound Sterling. As a result, there may be significant potential for financial statements to be impacted by differences arising from movements in foreign exchange rates. These differences may distort results achieved from actual operations. Generally, it is the company's policy to conduct and manage its business in US dollars and euros to minimise its exposure to currency fluctuations. Revenues earned and costs incurred are translated into pound sterling at the average rate of exchange for the period. Assets and liabilities at balance sheet date are translated into pound sterling using the exchange rates prevailing on that date. All exchange rate differences are taken directly to the profit and loss account. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 UK-adopted international accounting standards. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ARP AFRICA TRAVEL LIMITED |
Opinion |
We have audited the financial statements of ARP Africa Travel Limited (the 'company') for the year ended 31st October 2024 which comprise the Statement of Profit or Loss and Other 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 a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the UK. |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31st October 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with IFRSs as adopted by the UK; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ARP AFRICA TRAVEL LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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: |
- | we reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations that have a direct effect on the financial statements; |
- | we enquired with the management team concerning actual and potential litigation and claims; |
- | we performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | we read minutes of meetings of those charged with governance; |
- | we obtained an understanding of any provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions/assets; and |
- | we addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
1 Doughty Street |
London |
WC1N 2PH |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
2024 | 2023 |
Notes | £ | £ |
CONTINUING OPERATIONS |
Revenue | 3 |
Cost of sales | ( | ) | ( | ) |
GROSS PROFIT |
Administrative expenses | ( | ) | ( | ) |
OPERATING PROFIT |
Finance costs | 5 | (11,350 | ) | (2,257 | ) |
Finance income | 5 | 509,262 | 333,006 |
PROFIT BEFORE INCOME TAX | 6 |
Income tax | 7 | (2,126,114 | ) | (1,598,800 | ) |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
STATEMENT OF FINANCIAL POSITION |
31ST OCTOBER 2024 |
2024 | 2023 | 2022 |
Notes | £ | £ | £ |
ASSETS |
NON-CURRENT ASSETS |
Goodwill | 9 | - | - |
Property, plant and equipment | 10 |
CURRENT ASSETS |
Trade and other receivables | 11 | 4,159,162 |
Cash and cash equivalents | 12 | 15,814,577 | 11,783,211 | 11,260,329 |
15,419,491 |
TOTAL ASSETS | 15,545,065 |
EQUITY |
SHAREHOLDERS' EQUITY |
Called up share capital | 13 |
Retained earnings | 14 |
TOTAL EQUITY |
LIABILITIES |
NON-CURRENT LIABILITIES |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | 16 | 97,550 | 45,138 | - |
Deferred tax | 18 | 1,800 | 16,000 | 16,000 |
CURRENT LIABILITIES |
Trade and other payables | 15 | 9,226,656 |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | 16 |
Tax payable |
10,074,478 |
TOTAL LIABILITIES | 10,090,478 |
TOTAL EQUITY AND LIABILITIES | 15,545,065 |
The financial statements were approved by the Board of Directors and authorised for issue on |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st November 2022 |
Changes in equity |
Dividends | - | ( | ) | ( | ) |
Total comprehensive income | - |
Balance at 31st October 2023 |
Changes in equity |
Dividends | - | ( | ) | ( | ) |
Total comprehensive income | - |
Balance at 31st October 2024 |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 23 |
Lease interest paid | (11,350 | ) | (2,257 | ) |
Tax paid | (1,945,059 | ) | (1,472,780 | ) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( | ) | ( | ) |
Interest received | 509,262 | 333,006 |
Net cash from investing activities |
Cash flows from financing activities |
Payment of lease liabilities | ( | ) | ( | ) |
Equity dividends paid | ( | ) | ( | ) |
Net cash from financing activities | ( | ) | ( | ) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 24 | 11,260,329 |
Cash and cash equivalents at end of year | 24 |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
1. | STATUTORY INFORMATION |
ARP Africa Travel Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 02590308 and registered office address is 98 Bessborough Road, Harrow, Middlesex HA1 3DH. |
2. | ACCOUNTING POLICIES |
Basis of preparation |
These financial statements have been prepared in accordance with UK-adopted international accounting standards (also referred to as UK-adopted IAS or IFRS) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention. |
The Company prepared its financial statements in accordance with UK-adopted IAS for the first time. The company previously prepared its financial statements in accordance with FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland ('FRS 102'). |
As part of the transition, the company applied IFRS 1, which requires retrospective application of IFRS standards and the presentation of reconciliations from FRS 102 to UK-adopted IAS. |
Significant accounting policy changes arising from the transition from FRS 102 to UK-adopted IAS were as follows: |
- | Revenue recognition (IFRS15): |
IFRS 15 requires the identification of distinct performance obligations and allocation of revenue to each obligation based on their standalone selling prices as part of its five-step revenue recognition model. Under IFRS 15, revenue is recognised based on the transfer of control, which, for the Company, resulted in revenue being recognised linearly over the duration of the safaris and other holiday packages as the consumers simultaneously receive and consume the benefits of the company's holiday services. This has resulted in some timing differences in revenue recognition compared to prior years under FRS 102.Under FRS 102, revenue was generally recognised when risks and rewards were transferred to the customer, which were typically at a single point in time. For the company, significant risks and rewards were transferred to the customers on the arrival day at the destination locations.The application of IFRS 15 - Revenue from Contracts with Customers has resulted in differences in the timing of revenue recognition. |
- | Leases (IFRS 16): |
Under IFRS 16, leases are capitalised in the Statement of Financial Position by recognising a Right-of-Use Asset and a corresponding lease liability. This is a significant change compared to the previous accounting standard (FRS 102) where operating leases were typically expensed straight-line to the Income Statement over the term of the lease and were not capitalised. |
Going Concern |
The financial statements have been prepared on a going concern basis. The directors have assessed the going concern risks to the Company and have concluded that: (i) the company has sufficient cash balance to meet its administrative expenses over the next twelve months from the date of approval of these financial statements; (ii) financial projections indicate that the Company will continue to meet its liabilities as they fall due over the same period. Therefore, the Board considers it appropriate to prepare the financial statements on a going concern basis. |
Critical accounting 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 amounts 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 if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. |
Assumptions and estimates that may have a material impact on the amounts reported as assets and liabilities in the company are mainly related to the following balance sheet-related facts and circumstances: |
- | Determination that the package holiday represents a performance obligation due to the significant integration service |
- | Determination of period-related revenue recognition on a straight-line basis over the duration of the trip |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Revenue recognition |
The Company's revenue is measured as the aggregate amount of gross revenue receivable from customers in the ordinary course of business and is recorded on a net basis after deducting rebates and trade discounts, value added tax and any compensations paid to customers. |
The Company operates as a principal tour operator and generates revenue from sale of safaris and similar holidays, which include accommodation, transfers and other holiday-related services, but exclude flights. The Company has concluded that, under IFRS 15, the packaged holidays that it offers to its customers constitute the delivery of one distinct performance obligation. In formulating this conclusion, the Company has assessed that it provides a significant integrated service within the packaged holidays which produces a combined output to the customers. |
For sale of safaris and similar holidays, revenue is recognised when the Company satisfies the performance obligation, which is at a point in time when the customer obtains control of the service. The revenue is recognised on a linear basis over the duration of the holiday as customers consume their holiday on a pro-rata basis. |
Government grants |
Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment. |
Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. |
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate. |
Finance Income |
Finance income recognised in the Statement of Comprehensive Income mainly comprise bank interest income and financial gains on financial instruments. |
Employee benefit costs |
The company operates a defined contribution pension scheme, the assets of which are held separately from those of the Company in independently administered funds. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. |
Foreign currency translation |
- | Functional and presentation currency |
The functional currency of the Company is the US Dollar (USD), which reflects the primary economic environment in which the Company operates. The presentational currency of the financial statements is the British Pound Sterling (GBP), chosen to meet the needs of the Company's shareholders and other stakeholders. |
- | Transactions and balances |
Foreign exchange gains or losses arising on loans receivable or payable, including lease liabilities, are included in "Finance income" and "Finance expense" in the Statement of Comprehensive Income.Foreign currency transactions are initially translated into the Company's functional currency using the prevailing rate at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the exchange rate prevailing on the Statement of Financial Position date. Foreign exchange gains and losses resulting from translation to financial year-end rates are recognised in the Statement of Comprehensive Income. |
The results and financial position are translated into the presentational currency as follows: |
- | assets and liabilities for each Statement of Financial Position presented are translated at the closing rate at the date of that Statement of Financial Position; |
- | income and expenses for each Statement of Comprehensive Income are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of each transaction); and |
- | all resulting exchange differences are recognised in Other Comprehensive Income. |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Goodwill |
Goodwill arising on a business combination is initially measured at cost, being the excess of the aggregate of the consideration transferred, the fair value of any non-controlling interest, and, in a business combination achieved in stages, the acquisition-date fair value of the acquirer's previously held equity interest in the acquiree over the fair value of the identifiable net assets acquired and liabilities assumed at the acquisition date. |
Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortised but is tested annually for impairment or more frequently if events or changes in circumstances indicate that the carrying amount may be impaired. |
For the purpose of impairment testing, goodwill is allocated to the cash-generating units (CGUs) or groups of CGUs that are expected to benefit from the synergies of the combination. Impairment is determined by assessing the recoverable amount of the CGU(s) to which the goodwill relates. If the recoverable amount of the CGU(s) is less than the carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. |
On disposal of a subsidiary or business, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Property, plant and equipment |
Property, plant and equipment are stated at historical purchase cost, including any costs attributable to bringing an asset to its working condition for its intended use, less accumulated depreciation and impairment. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Leasehold improvements | - Over term of the lease |
Office equipment | - 10% on cost |
Fixtures and fittings | - 15% on cost |
Plant and Machinery | - 25% on cost and 15% on cost |
Computer equipment | - 25% on cost |
Useful lives are estimated taking into account the rate of technological change and intensity of use of the assets and are reviewed together with the assets residual value and adjusted appropriate at the end of each report period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its recoverable amount. |
Right-of-use assets and depreciation |
The right-of-use assets are stated at cost less accumulated depreciation and any accumulated impairment losses, adjusted for any remeasurement of the lease liability (that is remeasurements or lease modifications). |
Depreciation is expensed on a straight-line basis over the shorter of the period of the lease or the useful life. |
Useful lives are estimated taking into account the rate of technological change and intensity if use of the assets and are reviewed and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. |
Financial assets and financial liabilities |
Financial assets and financial liabilities comprise all assets and liabilities reflected in the statement of financial position, although excluding property, plant and equipment, intangible assets, taxation, deferred tax assets and liabilities, prepayments and employee benefit plans. |
The classification and measurement of financial assets are determined on the basis of the business model used to manage financial assets, the related contractual cash flows and their objective. |
At initial recognition of financial assets, the classification comprises three categories: |
- | Financial assets at amortised cost (AC) |
- | Financial assets at fair value through Other Comprehensive Income (FVOCI) |
- | Financial assets at fair value through profit and loss (FVPL). |
Financial assets are recognised at the value on the date when the Company undertakes to buy/has a legal right to recognise the asset. When recognised for the first time, they are either classified as at amortised cost or at fair value, depending on their objective. Financial assets are classified as financial assets at amortised cost when the objective of the Company's business model is to hold the financial assets to collect contractual cash flows, and when the contractual terms and conditions of the assets exclusively constitute interest and principal payments on the nominal amount outstanding. |
For the financial assets held at amortised cost, a loss allowance for expected credit losses is recognised in accordance with IFRS 9. The expected credit loss using the "simplified approach" requires the Company to determine a provision matrix to calculate the expected loss for trade receivables and lease receivables based on historical data and forward-looking information. The expected credit loss using the "general approach" is based on either full lifetime expected credit losses or 12-month expected credit losses. A loss allowance for lifetime expected credit losses is required for a financial instrument if the credit risk of that financial asset has increased since initial recognition. For all other financial instruments, expected credit losses are measured at an amount equal to the 12 month expected credit losses. |
Impairments and reversals of impairments are included in "Impairment of financial assets" in the Statement of Comprehensive Income. |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
2. | ACCOUNTING POLICIES - continued |
All other financial assets not recognised at amortised cost or at fair value through Other Comprehensive Income (OCI) must be measured at fair value through profit or loss. Accordingly, the debt instruments previously allocated to the measurement category "Financial assets available for sale" are measured at fair value through profit or loss under IFRS 9. |
Financial assets are derecognised as at the date on which the rights for payments from assets expire or are transferred and therefore as at the date on which essentially all risks and rewards of ownership are transferred. The rights to an asset expire when the rights to receive cash flows from the asset have expired. For transfers of financial assets, it is assessed whether they have to be derecognised in accordance with the derecognition requirements of IFRS 9. |
Financial liabilities are recognised in the Statement of Financial Position if an obligation exists to transfer cash and cash equivalents of other financial assets to another party. Initial recognition of a liability is expected at its fair value. For loans taken out, the nominal amount is reduced by discounts retained and transaction costs paid. The subsequent measurement of financial liabilities is affected at amortised cost using the effective interest method. Financial liabilities are derecognised when the obligations specified in the contract are discharged, cancelled, or expire. |
Cash and cash equivalents |
Cash represents deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value. |
Taxation |
The tax liability for the financial year comprises current and deferred tax and is recognised in the Statement of Comprehensive Income. Current tax is the expected corporation tax payable (or recoverable) for the current financial year using the average tax rate for the financial year. |
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates that have been enacted or substantively enacted at the Statement of Financial Position date and are expected to apply when the related deferred tax is realised or the deferred liability is settled. |
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the assets can be used. |
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to taxes levied by the same tax authority. |
Current and deferred tax are recognised in the statement of Comprehensive Income, except when they relate to items that are recognised in Other Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognised in Other Comprehensive Income or directly in equity respectively. |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Leases |
Leases are agreements transferring the right to use an identified asset for a given period of time in return of a payment. |
As a lessee, the company, as at the Statement of Financial position date, leases an office building and several motor vehicles. |
At the inception of an agreement, the company evaluates whether it is, or contains a lease. If so, a lease liability amounting to the present value of the future lease payments is recognised at commencement date. The lease payments include all fixed and in substance -fixed payments less any future lease incentives to be provided by the lessor. As a rule, the lease payments are discounted at the lessor's interest rate implicit in the lease. If that rate is not known, the present value is determined using the incremental borrowing rate. After initial measurement, the carrying amount is increased to reflect interest on the lease liability and reduced to reflect the lease payments made. |
In addition, right of use asset is recognised at the commencement date. Right of use asset for the leased items are measured at amortised cost less cumulative depreciation/amortisation and cumulative impairment and adjusted for revaluations of the lease liability. The cost of a right-of-use asset comprise the present value of the future lease payments plus initial direct costs and the lease payments made prior to the commencement less any lease incentives received and the estimated costs to be incurred to restore the leased asset to the condition required by the terms of the lease. Capitalised right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the expected useful life of the right-of-use asset. After the commencement date of the lease, depreciation is recognised to reflect the pattern of consumption of the benefits the assets bring over its useful life. This is applied consistently from period to period and is recognised in administrative expenses. |
Derivative financial instruments |
The company's activities expose it to the financial risks arising from changes in foreign exchange rates. The company uses financial derivatives in order to minimise the risks arising from fluctuations in foreign exchange rates. The use of financial derivatives is approved by the Board of Directors. |
The derivative financial instruments are classified as 'fair value through profit and loss'. Derivative financial instruments are initially measured at fair value on the contract date and are subsequently remeasured to fair value at each reporting date. Changes in the fair value of these derivatives financial instruments are recorded in the income statement. |
The Company does not designate any financial instruments as hedging instruments in qualifying hedge relationships under IFRS 9. |
Provisions |
A provision is recognised in the Statement of Financial Position when the Company has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation and the amount has been reliably estimated. Provisions are measured at the value of the expenditure expected to be required to settle the obligation. |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
3. | REVENUE |
Segmental reporting |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 21,378,702 | 17,874,512 |
Europe | 13,382,860 | 13,990,384 |
United States of America & Canada | 19,765,373 | 15,479,808 |
United Arab Emirates | 2,900,097 | 1,950,767 |
Australia & New Zealand | 2,505,631 | 2,065,520 |
Rest of the world (Africa, Asia, South America) | 2,455,620 | 1,994,755 |
62,388,283 | 53,355,746 |
Future revenue from performance obligations not yet delivered as at 31 October 2024 are shown as deferred income in current liabilities to be recognised as revenue in the future. |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Travel consultants | 23 | 21 |
Management and administration | 7 | 7 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
5. | NET FINANCE INCOME |
2024 | 2023 |
£ | £ |
Finance income: |
Bank interest receivable | 509,262 | 333,006 |
Finance costs: |
Hire purchase | 11,350 | 2,257 |
Net finance income | 330,749 |
6. | PROFIT BEFORE INCOME TAX |
The profit before income tax is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Cost of inventories recognised as expense |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Auditors remuneration | 16,381 | 16,180 |
Foreign exchange differences | ( | ) |
7. | INCOME TAX |
Analysis of tax expense |
2024 | 2023 |
£ | £ |
Current tax: |
Taxation | 1,598,800 |
Deferred taxation | ( | ) |
Total tax expense in statement of profit or loss and other comprehensive income | 2,126,114 | 1,598,800 |
Factors affecting the tax expense |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before income tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes | 42,351 | 21,663 |
Depreciation in excess of capital allowances | 5,490 | 7,898 |
Adjustments to tax charge in respect of previous periods | - | 3,386 |
Deferred tax provision | (14,200 | ) | - |
Tax expense | 2,126,114 | 1,598,800 |
A single corporation tax rate of 19% applied to all companies to 31st March 2023. As from 1st April 2023, the main corporation tax rate, which is applicable to the Company, is 25%. |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
"A" ordinary shares shares of £1 each |
Interim |
"B" ordinary shares shares of £1 each |
Interim |
9. | GOODWILL |
£ |
COST |
At 1st November 2023 |
and 31st October 2024 |
AMORTISATION |
At 1st November 2023 |
and 31st October 2024 |
NET BOOK VALUE |
At 31st October 2024 |
At 31st October 2023 |
10. | PROPERTY, PLANT AND EQUIPMENT |
Freehold | Leasehold | Motor | Office |
property | improvements | vehicles | equipment |
£ | £ | £ | £ |
COST |
At 1st November 2023 |
Additions |
Disposals | ( | ) |
At 31st October 2024 |
DEPRECIATION |
At 1st November 2023 |
Charge for year |
Eliminated on disposal | ( | ) |
At 31st October 2024 |
NET BOOK VALUE |
At 31st October 2024 |
At 31st October 2023 |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
10. | PROPERTY, PLANT AND EQUIPMENT - continued |
Fixtures |
and | Plant and | Computer |
Software | fittings | Machinery | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st November 2023 |
Additions |
Disposals | ( | ) | ( | ) |
At 31st October 2024 |
DEPRECIATION |
At 1st November 2023 |
Charge for year |
Eliminated on disposal | ( | ) | ( | ) |
At 31st October 2024 |
NET BOOK VALUE |
At 31st October 2024 |
At 31st October 2023 |
11. | TRADE AND OTHER RECEIVABLES |
2024 | 2023 |
£ | £ |
Current: |
Trade debtors |
Other debtors | 69,638 | 31,827 |
VAT |
Prepayments |
12. | CASH AND CASH EQUIVALENTS |
2024 | 2023 |
£ | £ |
Cash and cash equivalents | 15,814,577 | 11,783,211 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
"A" ordinary shares | £1 | 75,126 | 75,127 |
"B" ordinary shares | £1 | 75,126 | 75,125 |
150,252 | 150,252 |
Both "A" and "B" ordinary shares carry equal rights as to dividends and amounts distributable on a winding-up. Each class of share carry voting rights as to the appointment of directors representing shareholders of that particular class. |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
14. | RESERVES |
Retained |
earnings |
£ |
At 1st November 2023 |
Profit for the year |
Dividends | ( | ) |
At 31st October 2024 |
15. | TRADE AND OTHER PAYABLES |
2024 | 2023 |
£ | £ |
Current: |
Trade creditors |
Social security and other taxes |
Derivatives | 108,486 | 96,274 |
Deferred income |
Accrued expenses | 1,661,731 | 1,542,081 |
16. | FINANCIAL LIABILITIES - BORROWINGS |
2024 | 2023 |
£ | £ |
Current: |
Leases (see note 17) | 53,268 | 27,826 |
Non-current: |
Leases (see note 17) | 97,550 | 45,138 |
Terms and debt repayment schedule |
1 year or |
less | 1-2 years | 2-5 years | Totals |
£ | £ | £ | £ |
Leases | 53,268 | 41,056 | 56,494 | 150,818 |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
17. | LEASING |
Right-of-use assets |
Property, plant and equipment |
2024 | 2023 |
£ | £ |
COST OR VALUATION |
At 1st November 2023 | 114,959 | 28,783 |
Additions | 127,860 | 86,176 |
Disposals | (28,783 | ) | - |
214,036 | 114,959 |
DEPRECIATION |
At 1st November 2023 | 42,984 | - |
Charge for year | 54,297 | 42,984 |
Eliminated on disposal | (28,783 | ) | - |
68,498 | 42,984 |
NET BOOK VALUE | 145,538 | 71,975 |
Lease liabilities |
Minimum lease payments fall due as follows: |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year | 53,268 | 27,826 |
Between one and five years | 97,550 | 45,138 |
150,818 | 72,964 |
Finance charges repayable: |
Net obligations repayable: |
Within one year | 53,268 | 27,826 |
Between one and five years | 97,550 | 45,138 |
150,818 | 72,964 |
18. | DEFERRED TAX |
2024 | 2023 |
£ | £ |
Balance at 1st November | 16,000 | 16,000 |
Movement during year | (14,200 | ) | - |
Balance at 31st October |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
19. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme on behalf of its directors and few employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The annual commitment under this scheme is for contribution of £190,752 (2023: £181,638). |
20. | OTHER FINANCIAL COMMITMENTS |
As at 31 October 2024, the company had minimum financial commitments amounting to £4,690,286 (2023: £5,267,000) and maximum financial commitments amounting to £5,853,167 (2023:£6,336,000) in respect to forward exchange contracts. |
21. | RELATED PARTY DISCLOSURES |
1. | During the year, the Company paid dividends to the following related parties, who are shareholders: |
2024 | 2023 |
- a Director of the Company | £1,385,982 | £881,988 |
- a Company owned by a Director and a key employee | £2,739,018 | £1,743,012 |
- a shareholder of the Company | £1,375,000 | £875,000 |
£5,500,000 | £3,500,000 |
2. | A key employee of ARP Africa Travel Limited is also a Director and major shareholder of another overseas |
company. ARP Africa Travel Limited undertook the following transactions with this overseas company: |
2024 | 2023 |
£ | £ |
Sale of holiday packages and fees receivable | 2,931,090 | 2,150,058 |
Marketing fees | 65,027 |
Amount due from related party at the balance sheet date | 205,844 | 221,470 |
Amount due to related party at the balance sheet date | 33,800 | - |
22. | ULTIMATE CONTROLLING PARTY |
There was no controlling party during the current and previous year. |
23. | RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before income tax |
Depreciation charges |
Finance costs | 11,350 | 2,257 |
Finance income | (509,262 | ) | (333,006 | ) |
7,951,505 | 6,706,352 |
Decrease in trade and other receivables |
Increase/(decrease) in trade and other payables | ( | ) |
Cash generated from operations |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2024 |
24. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31st October 2024 |
31/10/24 | 1/11/23 |
£ | £ |
Cash and cash equivalents | 15,814,577 | 11,783,211 |
Year ended 31st October 2023 |
31/10/23 | 1/11/22 |
£ | £ |
Cash and cash equivalents | 11,783,211 | 11,260,329 |
25. | OTHER MATTERS |
An amount of €300,000 (2023: €85,000) included in cash at bank has been provided as a security to the bank. |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
RECONCILIATION OF EQUITY |
1ST NOVEMBER 2022 |
(DATE OF TRANSITION TO IFRSS) |
Effect of |
transition |
FRS 102 | to IFRSs | IFRSs |
£ | £ | £ |
ASSETS |
NON-CURRENT ASSETS |
Property, plant and equipment | 96,791 | 125,574 |
CURRENT ASSETS |
Trade and other receivables | 4,034,455 | 4,034,455 |
Cash and cash equivalents | 11,260,329 | 11,260,329 |
15,294,784 | 15,294,784 |
TOTAL ASSETS | 15,391,575 | 15,420,358 |
SHAREHOLDERS' EQUITY |
Called up share capital | 150,252 | 150,252 |
Retained earnings | 5,389,281 | ( | ) | 5,304,335 |
TOTAL EQUITY | 5,539,533 | ( | ) | 5,454,587 |
LIABILITIES |
NON-CURRENT LIABILITIES |
Deferred tax | 16,000 | 16,000 |
CURRENT LIABILITIES |
Trade and other payables | 9,017,003 | 9,101,949 |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | - | 28,783 |
Tax payable | 819,039 | 819,039 |
9,836,042 | 9,949,771 |
TOTAL LIABILITIES | 9,852,042 | 9,965,771 |
TOTAL EQUITY AND LIABILITIES | 15,391,575 | 15,420,358 |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
RECONCILIATION OF EQUITY - continued |
31ST OCTOBER 2023 |
Effect of |
transition |
FRS 102 | to IFRSs | IFRSs |
£ | £ | £ |
ASSETS |
NON-CURRENT ASSETS |
Property, plant and equipment | 61,124 | 133,099 |
CURRENT ASSETS |
Trade and other receivables | 3,149,638 | ( | ) | 3,087,745 |
Cash and cash equivalents | 11,783,211 | 11,783,211 |
14,932,849 | ( | ) | 14,870,956 |
TOTAL ASSETS | 14,993,973 | 15,004,055 |
EQUITY |
SHAREHOLDERS' EQUITY |
Called up share capital | 150,252 | 150,252 |
Retained earnings | 7,259,289 | ( | ) | 7,158,700 |
TOTAL EQUITY | 7,409,541 | ( | ) | 7,308,952 |
LIABILITIES |
NON-CURRENT LIABILITIES |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | - | 45,138 |
Deferred tax | 16,000 | - | 16,000 |
16,000 | 61,138 |
CURRENT LIABILITIES |
Trade and other payables | 6,623,373 | 6,661,080 |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | - | 27,826 |
Tax payable | 945,059 | 945,059 |
7,568,432 | 7,633,965 |
TOTAL LIABILITIES | 7,584,432 | 7,695,103 |
TOTAL EQUITY AND LIABILITIES | 14,993,973 | 15,004,055 |
ARP AFRICA TRAVEL LIMITED (REGISTERED NUMBER: 02590308) |
RECONCILIATION OF PROFIT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
Effect of |
transition |
FRS 102 | to IFRSs | IFRSs |
£ | £ | £ |
Revenue | 53,293,087 | 53,355,746 |
Cost of sales | (44,761,051 | ) | (44,741,336 | ) |
GROSS PROFIT | 8,532,036 | 8,614,410 |
Administrative expenses | (1,896,234 | ) | ( | ) | (1,991,994 | ) |
Finance costs | - | ( | ) | (2,257 | ) |
Finance income | 333,006 | - | 333,006 |
PROFIT BEFORE TAX | 6,968,808 | (15,643 | ) | 6,953,165 |
Income tax | (1,598,800 | ) | (1,598,800 | ) |
PROFIT FOR THE YEAR | 5,370,008 | ( | ) | 5,354,365 |