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Registered number: 05425421









VIVID SKIES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

 
VIVID SKIES LIMITED
 
 
COMPANY INFORMATION


Directors
M G Collins 
Ms J Collins 
D A Hennessy 
B D Sargent 
A P Stafford 




Company secretary
Ms J Collins



Registered number
05425421



Registered office
2nd Floor, Nucleus House
2 Lower Mortlake Road

Richmond

TW9 2JA




Independent auditors
White Hart Associates (London) Limited
Chartered Accountants and Statutory Auditors

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA




Solicitors
Irwin Mitchell LLP
Belmont House

Station Way

Crawley

RH10 1JA





 
VIVID SKIES LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 6
Independent Auditors' Report
7 - 10
Consolidated Statement of Comprehensive Income
11
Consolidated Statement of Financial Position
12
Company Statement of Financial Position
13
Consolidated Statement of Changes in Equity
14
Company Statement of Changes in Equity
15
Consolidated Statement of Cash Flows
16
Consolidated Analysis of Net Debt
17
Notes to the Financial Statements
18 - 40


 
VIVID SKIES LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

Introduction
 
The directors present their strategic report of the Company and the Group for the year ended 31 October 2024.

Business review
 
The Group is required by the Companies Act to set out in this report, a fair review of the business of the Group during the financial year ended 31 October 2024, and its position at the end of the year along with a description of the principal risks and uncertainties facing the Group. This review is prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed, and the business review should not be relied upon by any other party or for any other purpose.
The results for the year and financial position of the Group are as shown in the annexed financial statements. We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.
The directors consider the results to be satisfactory given the challenges presented by economic uncertainty resulting from various geo-political conflicts and general rising costs.
The key performance indicators used by the directors to monitor the progress of the Group are set out below, being those that communicate the financial performance and strength of the Group, these being turnover, gross margin, overall profitability and cashflows:-

2024
2023
£
£
Turnover

35,325,683

32,080,369

Gross profit

5,544,078

5,208,715

Gross profit as a percentage of turnover

15.69%

16.24%

Profit on ordinary activities before taxation

913,971

861,723

Profit on ordinary activities as a percentage of turnover

2.59%

2.69%

Net cash inflow/(outflow) from operating activities

1,727,776

(597,731)

Net assets

3,087,746

2,406,732


Principal risks and uncertainties
 
The following risk factors may affect the Group's operating results and its financial position. The risk factors described below are those which the directors believe are potentially significant but should not be regarded as a complete and comprehensive statement of all potential risk and uncertainties facing the Group.
Economic environment risks
The demand for holidays is affected by local economic conditions. During 2024, geo-political wars and tensions have affected the cost of holiday arrangements and resulted in consumers having less discretionary spending available for holidays travel. However, due to the customer goodwill built up in recent years, the Group is continuing to see high levels of consumer demand. Consequently, the Group’s management and the directors have continued to review the Group’s financial position, as well as forecasts, and plan mitigation actions in order to neutralise any potential financial impacts on future trading performance.
 
Page 1

 
VIVID SKIES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Principal risks and uncertainties (continued)
Market risk
The Group operates in a highly competitive market featuring innovation in travel products and the methods by which they are marketed, as well as price pressures. The Group seeks to constantly invest in its brand to increase public awareness as well as offer a wide selection of products from a wide range of suppliers at competitive prices to maintain its market position. The Group also monitors competitor activity closely.
Regulatory risk
The Group is exposed to various regulators, including the Civil Aviation Authority ("CAA") and the Irish Aviation Authority ("IAA"), who issue an Air Travel Organisers Licence ("ATOL") and a Travel Agent Licence respectively. These are required in order for the Group to operate. The ATOL licence is renewed in March each year, whilst the IAA Travel Agent Licence is renewed in November each year. Both licences are subject to assessments of fitness and financial criteria, the frameworks of which are available on the CAA website (www.caa.co.uk) and the IAA website (www.iaa.ie).
Foreign exchange risk
The Group faces transactional exposure primarily relating to the cost of acquiring accommodation. This risk is managed by forward buying foreign exchange to match requirements as they are generated by customer bookings.
Commercial relationships
The Group has well established and close relationships with customers and travel component suppliers and risk is spread by not placing over-reliance on any one supplier in any particular area. However, if a relationship were lost or damaged with a major supplier this could have a detrimental effect on the business. The management team meets regularly with suppliers to maintain good working relationships and to understand the supplier's financial position.
Systems risk
The Group is heavily reliant on the uninterrupted operation of its IT systems and website. These systems are vulnerable to power loss, fire, computer viruses and other events. Loss of these systems would impair the ability of the Group to carry on its business effectively. The Group has made arrangements to mitigate this risk.
 
Financial risk
The Group finances its operations through retained profits.
 
Page 2

 
VIVID SKIES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Principal risks and uncertainties (continued)
Commercial risk
The nature of the business exposes the Group to various commercial risks which may affect the trading performance of the Group. These include:
 
- acts of terrorism, particularly in key tourist destinations
- epidemics in key tourist destinations which threaten the health of tourists
- wars or other international uncertainty which affects air travel
- natural disasters in key tourist destinations
- changes in customer behaviour and preferences
- increase in government taxes
These factors may affect the Group by causing potential customers to cancel or postpone travel plans, reducing the earnings potential of the Group. The Group seeks to minimise such risks by operating a flexible and limited-commitment business model with the ability to shift capacity among a variety of destinations where necessary, whilst ensuring fixed overheads are kept at an optimum level.


This report was approved by the board on 29 January 2025 and signed on its behalf.


M G Collins
Director

Page 3

 
VIVID SKIES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

The directors present their report and the financial statements for the year ended 31 October 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Principal activity

The principal activity of the Company in the year under review was that of a holding company. The Company's two 100% owned trading subsidiaries, Tropical Sky Limited (UK) and Tropical Sky Limited (Ireland), are both travel companies, acting as travel agents and tour organisers. 

Page 4

 
VIVID SKIES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


Results and dividends

The profit for the year, after taxation, amounted to £707,453 (2023 - £828,453).

The directors do not recommend a final dividend to be paid for the year. 
The total distribution of dividends for the year ended 31 October 2024 will be £Nil (2023 - £65,145).

Directors

The directors who served during the year were:

M G Collins 
Ms J Collins 
D A Hennessy 
B D Sargent 
A P Stafford 

Future developments

During the forthcoming accounting period, the directors aim to maintain the management policies which protected the Group's trade during recent shifts in the economy and will continue to do so during the current economic environment. The Group aims to increase on-line sales and diversify product and sales according to the market trends.

Research and development activities

The Group's growth requires investment in cutting edge technology and the ability to deliver fast, innovative and effective search results for consumers in a market that has seen significant technological advances in recent years. During the year the Group continued to make significant investment into software development as well as working on bridging software to improve the efficiency of its internal booking reservation and other systems.

Matters covered in the Group Strategic Report

The directors have disclosed, in line with the Companies Act 2006, additional performance data for the Group in the strategic report which is included within this set of financial statements. This includes a review of the performance of the business and the key performance indicators, as well as the main risks faced by the business.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 5

 
VIVID SKIES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


Post balance sheet events

There have been no other significant events affecting the Group since the year end. 
During 2025, the Group will continue to operate as outlined in the principal activity note above.

Auditors

The auditorsWhite Hart Associates (London) Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 January 2025 and signed on its behalf.
 




M G Collins
Director

Page 6

 
VIVID SKIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIVID SKIES LIMITED
 

Opinion


We have audited the financial statements of Vivid Skies Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 October 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 7

 
VIVID SKIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIVID SKIES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 8

 
VIVID SKIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIVID SKIES LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We exercise professional judgment and maintain professional skepticism throughout the audit;
- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control;
- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control;
- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;
- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
- We review the scope of the Group's compliance with The Package and Linked Travel Arrangements Regulations 2018 (“PTRs”) and sample test relevant documentation to assess this and the effectiveness of its control environment;
- We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements;
- We review the Group's relationships with related parties, identifying and disclosing transactions during the year and balances at year-end with such parties;


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 9

 
VIVID SKIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIVID SKIES LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





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

29 January 2025
Page 10

 
VIVID SKIES LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
35,325,683
32,080,369

Cost of sales
  
(29,781,605)
(26,871,654)

Gross profit
  
5,544,078
5,208,715

Distribution costs
  
(273,280)
(50,792)

Administrative expenses
  
(4,589,472)
(4,408,441)

Other operating income
 5 
4,889
-

Operating profit
 6 
686,215
749,482

Interest receivable and similar income
 10 
264,950
167,704

Interest payable and similar expenses
 11 
(37,194)
(55,463)

Profit before taxation
  
913,971
861,723

Tax on profit
 12 
(206,518)
(33,270)

Profit for the financial year
  
707,453
828,453

  

Currency translation differences on revaluation of reserves
  
(21,143)
8,163

Movement in unrealised foreign exchange reserve
  
(5,296)
1,754

Other comprehensive income for the year
  
(26,439)
9,917

Total comprehensive income for the year
  
681,014
838,370

Profit for the year attributable to:
  

Owners of the parent Company
  
707,453
828,453

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
681,014
838,370

The notes on pages 18 to 40 form part of these financial statements.

Page 11

 
VIVID SKIES LIMITED
REGISTERED NUMBER: 05425421

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
-
7,500

Tangible assets
 15 
396,778
446,875

  
396,778
454,375

Current assets
  

Debtors: amounts falling due within one year
 17 
9,256,966
8,527,174

Cash at bank and in hand
 18 
10,173,147
8,959,582

  
19,430,113
17,486,756

Creditors: amounts falling due within one year
 19 
(16,655,812)
(15,129,557)

Net current assets
  
 
 
2,774,301
 
 
2,357,199

Total assets less current liabilities
  
3,171,079
2,811,574

Creditors: amounts falling due after more than one year
 20 
(60,953)
(392,221)

Provisions for liabilities
  

Deferred taxation
 22 
(22,380)
(12,621)

  
 
 
(22,380)
 
 
(12,621)

Net assets
  
3,087,746
2,406,732


Capital and reserves
  

Called up share capital 
 23 
128,650
128,650

Share premium account
 24 
670,880
670,880

Capital redemption reserve
 24 
15,000
15,000

Foreign exchange reserve
 24 
4,805
10,101

Profit and loss account
 24 
2,268,411
1,582,101

  
3,087,746
2,406,732


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 January 2025.

M G Collins
Ms J Collins
Director
Director

The notes on pages 18 to 40 form part of these financial statements.

Page 12

 
VIVID SKIES LIMITED
REGISTERED NUMBER: 05425421

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Investments
 16 
244,827
244,827

  
244,827
244,827

Current assets
  

Debtors: amounts falling due within one year
 17 
671,074
621,074

  
671,074
621,074

Creditors: amounts falling due within one year
 19 
(82,371)
(82,371)

Net current assets
  
 
 
588,703
 
 
538,703

Total assets less current liabilities
  
833,530
783,530

  

  

Net assets
  
833,530
783,530


Capital and reserves
  

Called up share capital 
 23 
128,650
128,650

Share premium account
 24 
670,880
670,880

Capital redemption reserve
 24 
15,000
15,000

Profit and loss account brought forward
  
(31,000)
(31,000)

Profit for the year
  
50,000
65,145

Other changes in the profit and loss account

  

-
(65,145)

Profit and loss account carried forward
 24 
19,000
(31,000)

  
833,530
783,530


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 January 2025.


M G Collins
Ms J Collins
Director
Director

The notes on pages 18 to 40 form part of these financial statements.

Page 13

 
VIVID SKIES LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024


Called up share capital
Share premium account
Capital redemption reserve
Foreign exchange reserve
Profit and loss account
Total equity

£
£
£
£
£
£


At 1 November 2022 (as restated)
128,200
669,215
15,000
8,347
810,630
1,631,392


Comprehensive income for the year

Profit for the year
-
-
-
-
828,453
828,453

Currency translation differences
-
-
-
-
8,163
8,163

Movement in unrealised foreign exchange reserve
-
-
-
1,754
-
1,754
Total comprehensive income for the year
-
-
-
1,754
836,616
838,370

Dividends: Equity capital
-
-
-
-
(65,145)
(65,145)

Shares issued during the year
450
1,665
-
-
-
2,115



At 1 November 2023
128,650
670,880
15,000
10,101
1,582,101
2,406,732


Comprehensive income for the year

Profit for the year
-
-
-
-
707,453
707,453

Currency translation differences
-
-
-
-
(21,143)
(21,143)

Movement in unrealised foreign exchange reserve
-
-
-
(5,296)
-
(5,296)
Total comprehensive income for the year
-
-
-
(5,296)
686,310
681,014


At 31 October 2024
128,650
670,880
15,000
4,805
2,268,411
3,087,746


The notes on pages 18 to 40 form part of these financial statements.

Page 14

 
VIVID SKIES LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 November 2022 (as restated)
128,200
669,215
15,000
(31,000)
781,415


Comprehensive income for the year

Profit for the year
-
-
-
65,145
65,145

Dividends: Equity capital
-
-
-
(65,145)
(65,145)

Shares issued during the year
450
1,665
-
-
2,115



At 1 November 2023
128,650
670,880
15,000
(31,000)
783,530


Comprehensive income for the year

Profit for the year
-
-
-
50,000
50,000


At 31 October 2024
128,650
670,880
15,000
19,000
833,530


The notes on pages 18 to 40 form part of these financial statements.

Page 15

 
VIVID SKIES LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
707,453
828,453

Adjustments for:

Amortisation of intangible assets
7,500
7,500

Depreciation of tangible assets
222,671
221,187

Loss on disposal of tangible assets
1,313
-

Taxation charge
206,518
33,270

(Increase)/decrease in debtors
(730,252)
1,041,585

Increase/(decrease) in creditors
1,263,269
(2,678,840)

Net fair value losses/(gains) recognised in P&L
49,304
(50,886)

Net cash generated from operating activities

1,727,776
(597,731)


Cash flows from investing activities

Purchase of tangible fixed assets
(189,476)
(249,196)

Sale of tangible fixed assets
7,916
-

Net cash from investing activities

(181,560)
(249,196)

Cash flows from financing activities

Issue of ordinary shares
-
2,115

Repayment of loans
(332,651)
(322,586)

Repayment of finance leases
-
(14,124)

Dividends paid
-
(65,145)

Net cash used in financing activities
(332,651)
(399,740)

Net increase/(decrease) in cash and cash equivalents
1,213,565
(1,246,667)

Cash and cash equivalents at beginning of year
8,959,582
10,206,249

Cash and cash equivalents at the end of year
10,173,147
8,959,582


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
10,173,147
8,959,582


The notes on pages 18 to 40 form part of these financial statements.

Page 16

 
VIVID SKIES LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 OCTOBER 2024





At 1 November 2023
Cash flows
Other non-cash changes
At 31 October 2024
£

£

£

£

Cash at bank and in hand

8,959,582

1,213,565

-

10,173,147

Debt due after 1 year

(392,221)

331,268

-

(60,953)

Debt due within 1 year

(328,623)

1,383

-

(327,240)

Derivative assets

50,886

-

(42,237)

8,649


8,289,624
1,546,216
(42,237)
9,793,603

The notes on pages 18 to 40 form part of these financial statements.

Page 17

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

1.


General information

As disclosed in the Directors' Report, the principal activity of the Company in the year under review was that of a holding company. The Company's two 100% owned trading subsidiaries, Tropical Sky Limited (UK) and Tropical Sky Limited (Ireland), are both travel companies, acting as tour operators and travel agents. 
The Company is a private company limited by shares and is incorporated in England. 
The address of the Company's and Group's principal place of business, being different to the registered office stated on the Company Information page, is:
Tropical House
Garland Road
East Grinstead
RH19 1NJ

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 November 2015.

Page 18

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.3

Going concern

The travel industry has experienced large shifts in demand for holiday travel over recent years. There is currently some consumer unease in relation to the current economic environment, with increasing energy costs, interest rates and inflation reducing the discretionary spending available to consumers, and geo-political conflicts discouraging travel to certain destinations. As a result, Group management and the directors have continued to review the Group’s financial position, as well as budgets and forecasts and plan mitigation actions in order to neutralise any financial impacts.
Additionally, they have also performed a sensitivity analysis on the Group's budgets and forecasts to assess the financial impact of any potential further slowdown in trading from the reforecast and its impact on the liquidity of the business. This sensitivity analysis shows that the Group has enough liquidity and cash to trade through a further slowdown.
Group management and the directors therefore have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least the following 12 months from the signing of these financial statements, and will take all reasonably commercial steps, including seeking further financing or support if required, to mitigate against any further impacts on the Group's ability to continue as a going concern. As a result, the directors believe that it is still appropriate to apply the going concern basis for the foreseeable future.

 
2.4

Foreign currency translation

Functional and presentation currency

The Group's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

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

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

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

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 19

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.5

Turnover

Turnover represents the aggregate amount of revenue from the provision and arrangement of inclusive holidays and other services supplied to customers in the ordinary course of business.
Turnover is recognised when all of the following conditions are satisfied:
- The amount of turnover can be measured reliably;
- It is probable that the Group will receive the consideration due under the contract;
- The costs incurred and the costs to complete the contract can be measured reliably.
Turnover from holidays represents the gross amounts earned from arranging an itinerary and booking the individual components. Prior to departure, changes may be made to certain holidays such as upgrades, changing of itineraries or cancellations. Such changes are accounted for in the month in which the revision occurs. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

  
2.8

Website development

Website development costs are capitalised and included within tangible fixed assets. In the directors' opinion, the website will generate revenue directly and the present value of the future cash flows generated by the website will exceed the amounts capitalised.

Page 20

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.9

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.10

Interest income

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

 
2.11

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.12

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.13

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.14

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.15

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
Straight line over 10 years

Page 22

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.16

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Short-term leasehold property
-
Straight line over the lifetime of the lease
Computer and IT equipment
-
Straight line over 5 years
Motor vehicles
-
Straight line over 4 years
Fixtures and fittings
-
Straight line over 10 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 23

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.23

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
 
Page 24

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)


2.23
Financial instruments (continued)


Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument represents any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Page 25

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
a) Critical judgments in applying the Group's accounting policies
The directors believe that there are no critical judgments involved in applying the Group's accounting policies that warrant disclosure.
b) Key accounting estimates and assumptions
The directors believe that there are no key accounting estimates and assumptions involved in applying the Group's accounting policies that warrant disclosure.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Travel agent holiday sales
35,325,683
32,080,369


Analysis of turnover by source market:

2024
2023
£
£

United Kingdom
26,755,264
23,827,228

Republic of Ireland
8,570,419
8,253,141

35,325,683
32,080,369



5.


Other operating income

2024
2023
£
£

Government grants receivable
4,889
-

4,889
-


Included within government grants above are grants from Dublin City Council to assist with increasing business costs within the city. 

Page 26

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Fair value losses/(gains) (recognised within cost of sales)
49,304
(50,886)

Exchange differences
(3,628)
1,430

Other operating lease rentals
166,888
165,354


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
26,408
26,510

Fees payable to the Company's auditors in respect of:

Audit-related assurance services
25,224
24,355

Regulatory renewal services
5,465
5,810

All other services
13,208
4,316

Page 27

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

8.


Employees

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
2,688,142
2,598,522
-
-

Social security costs
285,076
262,209
-
-

Cost of defined contribution scheme
85,764
77,290
-
-

3,058,982
2,938,021
-
-


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administration
22
22



Marketing
3
3



Sales
50
46

75
71

The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL)

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
338,387
327,755

Group contributions to defined contribution pension schemes
45,319
41,417

383,706
369,172


During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £108,721 (2023 - £96,172).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £21,319 (2023 - £12,000).

Page 28

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

10.


Interest receivable

2024
2023
£
£


Bank interest receivable
264,950
167,704


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
6,013
8,727

Other loan interest payable
31,181
46,736

37,194
55,463


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
197,300
11,830


Deferred tax


Origination and reversal of timing differences
9,218
21,440


Taxation on profit on ordinary activities
206,518
33,270
Page 29

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 22.50%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
913,971
861,723


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.50%)
228,493
193,888

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
106
114

Capital allowances for year in excess of depreciation
6,572
9,135

Utilisation of tax losses
-
(156,888)

Profits taxed outside the UK
(37,871)
(34,419)

Movement in deferred tax
9,218
21,440

Total tax charge for the year
206,518
33,270


Factors that may affect future tax charges

There were no factors that may affect future tax charges at 31 October 2024.


13.


Individual income statement

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent Company is not presented as part of these financial statements.
The parent Company had no income or expenditure for the financial year, besides dividends received of £50,000 (2023 - £65,145).

Page 30

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

14.


Intangible assets

Group





Goodwill

£



Cost


At 1 November 2023
151,132



At 31 October 2024

151,132



Amortisation


At 1 November 2023
143,632


Charge for the year on owned assets
7,500



At 31 October 2024

151,132



Net book value



At 31 October 2024
-



At 31 October 2023
7,500



Page 31

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

15.


Tangible fixed assets

Group






Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 November 2023
220,512
2,798,765
51,138
66,653
3,137,068


Additions
6,563
182,358
-
555
189,476


Disposals
-
(71,565)
(26,138)
-
(97,703)


Exchange adjustments
-
(26,149)
-
(2,051)
(28,200)



At 31 October 2024

227,075
2,883,409
25,000
65,157
3,200,641



Depreciation


At 1 November 2023
217,883
2,429,966
21,100
21,244
2,690,193


Charge for the year on owned assets
948
209,795
-
6,320
217,063


Charge for the year on financed assets
-
-
5,609
-
5,609


Disposals
-
(71,565)
(16,909)
-
(88,474)


Exchange adjustments
-
(19,814)
-
(714)
(20,528)



At 31 October 2024

218,831
2,548,382
9,800
26,850
2,803,863



Net book value



At 31 October 2024
8,244
335,027
15,200
38,307
396,778



At 31 October 2023
2,629
368,799
30,038
45,409
446,875

Page 32

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 November 2023
244,827



At 31 October 2024
244,827





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Tropical Sky Limited (UK)
2nd Floor, Nucleus House, 2 Lower Mortlake Road, Richmond, TW9 2JA
Tour operator
Ordinary
100%
Tropical Sky Limited (Ireland)
1 Kingram Place, Dublin, D02 V061
Travel agent
Ordinary
100%
Tropical Sky Hotels Limited (UK)
2nd Floor, Nucleus House, 2 Lower Mortlake Road, Richmond, TW9 2JA
Dormant
Ordinary
100%
Tropical Skies Limited (UK)
As above
Dormant
Ordinary
100%
Africa Sky Limited (UK)
As above
Dormant
Ordinary
100%
American Sky Limited (UK)
As above
Dormant
Ordinary
100%
Australian Sky Limited (UK)
As above
Dormant
Ordinary
100%
Canadian Sky Limited (Ireland)
1 Kingram Place, Dublin, D02 V061
Dormant
Ordinary
100%
New Zealand Sky Limited (Ireland)
As above
Dormant
Ordinary
100%
Africa Sky Limited (Ireland)
As above
Dormant
Ordinary
100%
American Sky Limited (Ireland)
As above
Dormant
Ordinary
100%
Australia Sky Limited (Ireland)
As above
Dormant
Ordinary
100%

Page 33

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 October 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Tropical Sky Limited (UK)
1,544,353
531,553

Tropical Sky Limited (Ireland)
953,117
172,272

Tropical Sky Hotels Limited (UK)
100
-

Tropical Skies Limited (UK)
100
-

Africa Sky Limited (UK)
100
-

American Sky Limited (UK)
100
-

Australian Sky Limited (UK)
100
-

Canadian Sky Limited (Ireland)
84
-

New Zealand Sky Limited (Ireland)
84
-

Africa Sky Limited (Ireland)
84
-

American Sky Limited (Ireland)
84
-

Australia Sky Limited (Ireland)
84
-


17.


Debtors

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£


Trade debtors
9,041,082
8,356,029
-
-

Amounts owed by group undertakings
-
-
671,074
621,074

Other debtors
79,455
35,670
-
-

Prepayments and accrued income
127,780
84,589
-
-

Financial instruments
8,649
50,886
-
-

9,256,966
8,527,174
671,074
621,074



18.


Cash and cash equivalents

Group
Group
2024
2023
£
£

Cash at bank and in hand
10,173,147
8,959,582


Page 34

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

19.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£

Bank loans
327,240
328,623
-
-

Trade creditors
15,373,263
14,408,764
-
-

Amounts owed to group undertakings
-
-
82,371
82,371

Corporation tax
194,941
11,830
-
-

Other taxation and social security
70,629
99,288
-
-

Other creditors
656,113
255,662
-
-

Accruals and deferred income
26,330
25,390
-
-

Financial instruments
7,296
-
-
-

16,655,812
15,129,557
82,371
82,371


At 31 October 2024, the Group had contractual commitments in relation to foreign currency forward contract derivatives totalling £4,880,822 (2023 - £3,525,551).
At 31 October 2024, the Group had £271,103 (2023 - £343,326) of BSP outstanding cash sales to be paid to the International Air Transport Association ('IATA') included within trade creditors for tickets issued during the month of October 2024, all of which was paid within November 2024.


20.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
60,953
392,221


Included within bank loans above is a UK government-backed Coronavirus Business Interruption Loan Scheme ('CBILS') loan and benefits from a capital repayment holiday of 12 months, after which the loan is due to be repaid through 16 quarterly instalments ending in August 2025. The applicable interest rate will be fixed at 2.84% above the base rate, which is currently set at 5%. In addition to the 12 month capital repayment holiday, the loan benefits from a Business Interruption Payment ('BIP') made by the UK Government on behalf of the Company to cover interest arising on the CBILS loan for the first 12 months.
Also included within bank loans above is a Republic of Ireland government-backed COVID-19 Credit Guarantee Scheme loan and benefits from a capital repayment holiday of 12 months, after which the loan is due to be repaid through 53 monthly instalments ending in October 2026. The applicable interest rate will be fixed at 2.691% above the base rate.

Page 35

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

21.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£
£

Bank loans falling due within one year
327,240
328,623

Bank loans falling due within 1-2 years
54,621
330,039

Bank loans falling due within 2-5 years
6,332
62,182


388,193
720,844


Page 36

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

22.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
(12,621)
8,545


Charged to profit or loss
(9,218)
(21,440)


Currency translation differences
(541)
274



At end of year
(22,380)
(12,621)

Company


2024
2023





At beginning of year
-
-



At end of year
-
-

The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
(22,380)
(29,791)

Tax losses carried forward
-
17,170

(22,380)
(12,621)

Page 37

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



128,650 (2023 - 128,650) Ordinary Shares shares of £1.00 each
128,650
128,650

The Ordinary shares of £1.00 each carry full voting rights, full dividend rights and full rights to participation in any capital distribution on winding up.



24.


Reserves

Share premium account

The share premium account represents consideration received for shares issued above their nominal value, net of transaction costs.

Capital redemption reserve

The capital redemption reserve represents the amounts arising from the redemption of Ordinary Shares.

Foreign exchange reserve

The foreign exchange reserve represents differences arising upon the revaluation of foreign subsidiary companies stated in Euros. The financial statements of these companies are revalued to match the presentation currency of the Group for consolidation purposes, to show the entirety of the Group's results in Pounds Sterling (GBP). See accounting policy 2.4 for details of how the individual balances within the foreign subsidiaries are translated.

Profit and loss account

The profit and loss account represents all current and prior period retained profits and losses, less any dividends paid to shareholders of the Group.

Page 38

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

25.


Prior year adjustment

These financial statements include a prior year adjustment to correct the opening comparative balances at 1 November 2022 following the identification of Group accounting mis-postings on a company buyback of shares in November 2010.
As detailed in the notes to the financial statements for the year ended 31 October 2011, the Company bought back 25,000 “A” Ordinary shares on 15 November 2010 for £525,000. It was then incorrectly detailed that this was a capital payment and the share premium balance was being utilised accordingly. In fact, the payment was made from retained profits utilising dividends from the subsidiary companies to the parent company, but these dividends were not correctly accounted for or correctly reflected in the accounts.
The adjustments made to the opening comparative figures at 1 November 2022 are as follows:
Consolidated Statement of Financial Position
• Reinstatement of the share premium amount of £385,000.
• Reduction in retained profits of 385,000.
Company Statement of Financial Position
• Reinstatement of the share premium amount of £385,000.
• Reduction in retained profits of £31,403.
In addition, the stand-alone Statements of Financial Position of the Company's two subsidiaries have recorded prior year adjustments as follows:
• Tropical Sky Limited (UK) – reduction in retained profits of £341,141.
• Tropical Sky Limited (Ireland) – reduction in retained profits of £12,456.


26.


Contingent liabilities

At 31 October 2024, there were contingent liabilities outstanding in respect of counter indemnities given by the Group, in the normal course of business, to the Group's bond insurance obligors in respect of Irish Aviation Authority and The Association of Bonded Travel Organisers Trust Limited travel bonds amounting to £458,169 (2023 - £406,723).


27.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independent fund administered by Standard Life. The pension cost charge represents contributions payable by the Group to the fund and amounted to £85,764 (2023 - £77,290). Contributions totalling £9,859 (2023 - £8,520) were payable to the fund at the reporting date and are included in creditors.

Page 39

 
VIVID SKIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

28.


Commitments under operating leases

At 31 October 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Due within 1 year
156,338
161,918

Due between 2-5 years
521,993
622,574

Due after 5 years
10,555
106,542

688,886
891,034

29.


Post balance sheet events

There have been no significant events affecting the Group since the year end. 


30.


Controlling party

The Company's controlling parties are M G Collins and Ms J Collins, by virtue of their beneficial ownership of 62.18% of the issued and paid up share capital in the Company.

 
Page 40