Company registration number 10436041 (England and Wales)
HEBRIDEAN ISLAND CRUISES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
HEBRIDEAN ISLAND CRUISES LIMITED
COMPANY INFORMATION
Directors
Mr R J Allard
Mr N J Jenkins
Mr K H Charleson
Mr M D Horne
Company number
10436041
Registered office
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA
Auditor
Wheawill & Sudworth Limited
Chartered Accountants
35 Westgate
Huddersfield
West Yorkshire
HD1 1PA
HEBRIDEAN ISLAND CRUISES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 28
HEBRIDEAN ISLAND CRUISES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present their strategic report on the affairs of the company, together with the financial statements for the year end 31 October 2024.

Principal activities

The company operates three small luxury cruise ships. While they operate primarily in Scottish coastal waters as well as the Caledonian Canal, one of then is an International Cruise Ship and does cruise further afield at times. The ships operate mainly during the summer season from March/April to October/November. The business operates from its head office in Yorkshire with assistance from technical ship management companies,

Review of the business

2024 saw revenues grow by 6% to £18.4 million as a result of all three ships operating a full season.

 

Operating costs increased by 15%, which reflects the inflationary pressures on payroll, food, vessel maintenance and other operating supplies.

 

Administrative expenses were retained in line with 2023 levels as savings generated by improved buying offset increases in payroll costs.

 

Profits declined to £1.6 million in 2024 from £2.5 million in 2023, which reflected the impact of increased vessel maintenance costs and inflation on food, payroll and other operating costs as mentioned above.

Principal risks and uncertainties

The company's operations are subject to numerous risks such as limited currency movements, terrorism, civil disruption, industrial action, disease, adverse weather conditions and other natural phenomena.

 

Hebridean Island Cruises safeguards payments from customers in an approved Trust Account until the client has completed their travels. If the passengers book a flight inclusive cruise, they are covered under the Companies ATOL licence No 11249. The company does not extend credit to its customers.

 

The Directors consider cash management to be of utmost importance and maintain a rolling cashflow forecast for 15 months, to ensure that liquidity issues, where possible, can be identified in advance.

 

All payments to suppliers are made from the companies working capital which takes account of the fact that the company does not receive revenues from the cruises it sells to individual private travellers for cruise only holidays until after the cruise has been completed. There are exceptions for business-to-business transactions and a small number of flight inclusive cruises.

 

The company ended the year with no short or long-term debt.

 

Foreign currency risk is not mitigated by financial instruments.

 

The company operates proprietary IT systems which operate its reservations and customer management processes.

Key performance indicators

The financial indicator that the directors consider to be key is the gross profit margin which decreased from 76% to 72%.

 

The other indicator that the directors consider to be key is the number of cruises sold, which increased from 3,491 to 3,765.

On behalf of the board

Mr M D Horne
Director
27 January 2025
HEBRIDEAN ISLAND CRUISES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

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

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £285,001. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R J Allard
Mr N J Jenkins
Mr K H Charleson
Mr M D Horne
Mr N Cressey
(Resigned 2 September 2024)
Qualifying third party indemnity provisions

Hebridean Island Cruises Limited have taken out directors' indemnity insurance policy, under which the directors of the company are covered.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

HEBRIDEAN ISLAND CRUISES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
On behalf of the board
Mr M D Horne
Director
27 January 2025
HEBRIDEAN ISLAND CRUISES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HEBRIDEAN ISLAND CRUISES LIMITED
- 4 -
Opinion

We have audited the financial statements of Hebridean Island Cruises Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

HEBRIDEAN ISLAND CRUISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HEBRIDEAN ISLAND CRUISES LIMITED
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

HEBRIDEAN ISLAND CRUISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HEBRIDEAN ISLAND CRUISES LIMITED
- 6 -

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:

 

Obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;

 

Assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur;

 

Ensured whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations;

 

Gained clear understanding of the entity’s current activities, the scope of its authorisation and confirmed the effectiveness of its control environment where the entity is a regulated entity;

 

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 

·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 override of internal control.

 

·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 the internal control.

 

·Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

 

·Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

 

·Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

HEBRIDEAN ISLAND CRUISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HEBRIDEAN ISLAND CRUISES LIMITED
- 7 -
David Butterworth (Senior Statutory Auditor)
For and on behalf of Wheawill & Sudworth Limited, Statutory Auditor
Chartered Accountants
35 Westgate
Huddersfield
West Yorkshire
HD1 1PA
27 January 2025
HEBRIDEAN ISLAND CRUISES LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
18,379,702
17,460,471
Cost of sales
(14,401,947)
(12,502,066)
Gross profit
3,977,755
4,958,405
Administrative expenses
(2,598,076)
(2,533,518)
Operating profit
4
1,379,679
2,424,887
Interest receivable and similar income
8
355,739
156,561
Interest payable and similar expenses
9
(893)
(62,391)
Profit before taxation
1,734,525
2,519,057
Tax on profit
10
(108,123)
(4,721)
Profit for the financial year
1,626,402
2,514,336
Profit for the financial year is all attributable to the owners of the parent company.
HEBRIDEAN ISLAND CRUISES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
£
£
Profit for the year
1,626,402
2,514,336
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
1,626,402
2,514,336
Total comprehensive income for the year is all attributable to the owners of the parent company.
HEBRIDEAN ISLAND CRUISES LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
778,209
1,167,313
Tangible assets
13
849,086
1,034,653
1,627,295
2,201,966
Current assets
Stocks
16
67,144
87,413
Debtors
17
848,295
899,313
Cash at bank and in hand
10,117,410
9,157,535
11,032,849
10,144,261
Creditors: amounts falling due within one year
19
(4,939,926)
(5,967,410)
Net current assets
6,092,923
4,176,851
Net assets
7,720,218
6,378,817
Capital and reserves
Called up share capital
21
570,001
570,001
Profit and loss reserves
7,150,217
5,808,816
Total equity
7,720,218
6,378,817

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 27 January 2025 and are signed on its behalf by:
27 January 2025
Mr M D Horne
Director
Company registration number 10436041 (England and Wales)
HEBRIDEAN ISLAND CRUISES LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
778,209
1,167,313
Tangible assets
13
849,086
1,034,653
Investments
14
100
100
1,627,395
2,202,066
Current assets
Stocks
16
67,144
87,413
Debtors
17
849,216
900,306
Cash at bank and in hand
10,116,389
9,156,442
11,032,749
10,144,161
Creditors: amounts falling due within one year
19
(4,939,926)
(5,967,410)
Net current assets
6,092,823
4,176,751
Net assets
7,720,218
6,378,817
Capital and reserves
Called up share capital
21
570,001
570,001
Profit and loss reserves
7,150,217
5,808,816
Total equity
7,720,218
6,378,817

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,626,402 (2023 - £2,514,336 profit).

The financial statements were approved by the board of directors and authorised for issue on 27 January 2025 and are signed on its behalf by:
27 January 2025
Mr M D Horne
Director
Company registration number 10436041 (England and Wales)
HEBRIDEAN ISLAND CRUISES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
570,001
3,294,480
3,864,481
Year ended 31 October 2023:
Profit and total comprehensive income
-
2,514,336
2,514,336
Balance at 31 October 2023
570,001
5,808,816
6,378,817
Year ended 31 October 2024:
Profit and total comprehensive income
-
1,626,402
1,626,402
Dividends
11
-
(285,001)
(285,001)
Balance at 31 October 2024
570,001
7,150,217
7,720,218
HEBRIDEAN ISLAND CRUISES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
570,001
3,294,480
3,864,481
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
2,514,336
2,514,336
Balance at 31 October 2023
570,001
5,808,816
6,378,817
Year ended 31 October 2024:
Profit and total comprehensive income
-
1,626,402
1,626,402
Dividends
11
-
(285,001)
(285,001)
Balance at 31 October 2024
570,001
7,150,217
7,720,218
HEBRIDEAN ISLAND CRUISES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
906,424
3,043,841
Interest paid
(893)
(62,391)
Income taxes paid
(21,601)
(2,531)
Net cash inflow from operating activities
883,930
2,978,919
Investing activities
Purchase of tangible fixed assets
5,207
(852,831)
Interest received
355,739
156,561
Net cash generated from/(used in) investing activities
360,946
(696,270)
Financing activities
Repayment of borrowings
-
(500,000)
Repayment of bank loans
-
(2,350,000)
Dividends paid to equity shareholders
(285,001)
-
0
Net cash used in financing activities
(285,001)
(2,850,000)
Net increase/(decrease) in cash and cash equivalents
959,875
(567,351)
Cash and cash equivalents at beginning of year
9,157,535
9,724,886
Cash and cash equivalents at end of year
10,117,410
9,157,535
HEBRIDEAN ISLAND CRUISES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
906,495
3,043,913
Interest paid
(893)
(62,391)
Income taxes paid
(21,601)
(2,531)
Net cash inflow from operating activities
884,001
2,978,991
Investing activities
Purchase of tangible fixed assets
5,208
(852,831)
Interest received
355,739
156,561
Net cash generated from/(used in) investing activities
360,947
(696,270)
Financing activities
Repayment of borrowings
-
(500,000)
Repayment of bank loans
-
(2,350,000)
Dividends paid to equity shareholders
(285,001)
-
Net cash used in financing activities
(285,001)
(2,850,000)
Net increase/(decrease) in cash and cash equivalents
959,947
(567,279)
Cash and cash equivalents at beginning of year
9,156,442
9,723,721
Cash and cash equivalents at end of year
10,116,389
9,156,442
HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
1
Accounting policies
Company information

Hebridean Island Cruises Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 2nd floor, Nucleus House, 2 Lower Mortlake Road, Richmond, TW9 2JA.

 

The group consists of Hebridean Island Cruises Limited and its subsidiary.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies.

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 judgement in applying the Group's accounting policies.

 

The following principal accounting policies have been applied.

1.2
Business combinations

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, 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 of which control is obtained. They are deconsolidated from the date control ceases.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Hebridean Island Cruises Limited together with all entities controlled by the parent company being its subsidiary.

 

All financial statements are made up to 31 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
1.5
Turnover

Turnover is the total amount receivable by the Group from the sale of cruises and other services supplied to customers in the ordinary course of business net of Value Added Tax and trade discounts.

 

Cruise revenues and cruise charter revenues, together with revenues from onboard and other activities, which include transportation are recognised in income for each day of the cruise as it progresses. Shore excursion revenue is recognised on the date of the excursion.

 

Revenue arising from the Group's tour operating activities is credited to income on the date of departure.

1.6
Intangible fixed 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 Income over its useful economic life. The estimated useful life of goodwill is 10 years.

1.7
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.

Ship improvements
2-9 years
Computer equipment
4 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

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.

1.8
Fixed asset investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on re measurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 

Investments in listed company shares are re measured to market value at each balance sheet dat. gains and losses on re measurement are recognised in profit or loss for the period.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. work in progress and finished goods include labour and attributable overheads.

 

At each balance sheet date, stocks are assessed for impairment. if stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.12
Taxation

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.

Current tax

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

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The liability for holiday pay is recognised to the extent of any unused holiday entitlement which is accrued at the balance sheet and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -
1.14
Retirement benefits

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 Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

1.15
Leases

Rentals paid under operating leases are charged to profit or loss on a straight-line 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.

1.16
Foreign exchange

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.

 

 

1.17

Interest Income

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

1.18

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.

HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
UK Cruises
18,256,295
17,345,426
Onboard sales
123,407
115,045
18,379,702
17,460,471
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
18,379,702
17,460,471
2024
2023
£
£
Other revenue
Interest income
355,739
156,561
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
10,337
9,959
Fees payable to the group's auditor for the audit of the group's financial statements
17,644
16,000
Depreciation of owned tangible fixed assets
180,360
132,270
Amortisation of intangible assets
389,104
389,103
Operating lease charges
33,177
31,957
HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
6
7
6
7
Marketing
2
2
2
2
Sales
5
4
5
4
Total
13
13
13
13

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
703,583
734,426
703,583
734,426
Social security costs
56,682
70,677
56,682
70,677
Pension costs
40,349
29,713
40,349
29,713
800,614
834,816
800,614
834,816
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
378,749
477,147
Company pension contributions to defined contribution schemes
25,463
18,810
404,212
495,957
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
148,116
172,055
Company pension contributions to defined contribution schemes
14,454
10,374
7
Retirement benefits

During the year retirement benefits were accruing to 2 directors (2023: 2) in respect of defined contribution pension schemes.

HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
355,739
156,561
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
355,739
156,561
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
893
62,391
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
108,123
4,721

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,734,525
2,519,057
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
433,631
629,764
Income taxed under tonnage tax regime
(325,508)
(625,043)
Taxation charge
108,123
4,721
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
285,001
-
HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
5,447,457
Amortisation and impairment
At 1 November 2023
4,280,144
Amortisation charged for the year
389,104
At 31 October 2024
4,669,248
Carrying amount
At 31 October 2024
778,209
At 31 October 2023
1,167,313
Company
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
5,447,457
Amortisation and impairment
At 1 November 2023
4,280,144
Amortisation charged for the year
389,104
At 31 October 2024
4,669,248
Carrying amount
At 31 October 2024
778,209
At 31 October 2023
1,167,313

More information on impairment movements in the year is given in note .

HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
13
Tangible fixed assets
Group
Ship improvements
Computer equipment
Total
£
£
£
Cost
At 1 November 2023
1,140,752
70,763
1,211,515
Additions
(6,047)
840
(5,207)
At 31 October 2024
1,134,705
71,603
1,206,308
Depreciation and impairment
At 1 November 2023
159,358
17,504
176,862
Depreciation charged in the year
162,941
17,419
180,360
At 31 October 2024
322,299
34,923
357,222
Carrying amount
At 31 October 2024
812,406
36,680
849,086
At 31 October 2023
981,394
53,259
1,034,653
Company
Ship improvements
Computer equipment
Total
£
£
£
Cost
At 1 November 2023
1,140,752
70,763
1,211,515
Additions
(6,047)
840
(5,207)
At 31 October 2024
1,134,705
71,603
1,206,308
Depreciation and impairment
At 1 November 2023
159,358
17,504
176,862
Depreciation charged in the year
162,941
17,419
180,360
At 31 October 2024
322,299
34,923
357,222
Carrying amount
At 31 October 2024
812,406
36,680
849,086
At 31 October 2023
981,394
53,259
1,034,653
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
100
100
HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
14
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 and 31 October 2024
100
Carrying amount
At 31 October 2024
100
At 31 October 2023
100
15
Subsidiaries

Details of the company's subsidiaries at 31 October 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
HIC Transport Limited
UK
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
HIC Transport Limited
100
-
0
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
67,144
87,413
67,144
87,413
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Amounts owed by group undertakings
-
-
921
993
Other debtors
482,809
706,269
482,809
706,269
Prepayments and accrued income
365,486
193,044
365,486
193,044
848,295
899,313
849,216
900,306
HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 26 -
18
Held in Trust

The company is using a Trust model to hold and safeguard monies received from consumer customers. The amounts held on trust are represented by bank balances. Amounts held on trust are only available to the company after the cruise has been completed. The balance held in the trust account at the balance sheet date was £2,577,727 (2023: £2,877,742) of which the full amount is within cash at bank.

19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
753,237
822,434
753,237
822,434
Corporation tax payable
88,712
2,190
88,712
2,190
Other creditors
66,772
203,786
66,772
203,786
Accruals and deferred income
4,031,205
4,939,000
4,031,205
4,939,000
4,939,926
5,967,410
4,939,926
5,967,410

Included within accruals and deferred income is an amount of £3,196,692 (2023: £3,745,792) which represents advance cash received from all customers.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,349
29,713

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
570,001
570,001
570,001
570,001

Ordinary shares are split:

127,701 A Ordinary Shares of £1 each

180,000 B Ordinary shares of £1 each

262,300 C Ordinary shares of £1 each

 

Class A ordinary shares have up to 53.9% of the voting rights while Class C shares have up to 43.1% of the voting rights. Class B has no voting rights. Class A, B and C are equal on dividends.

22
Financial commitments, guarantees and contingent liabilities

As at 31st October 2024 the Group had financial commitments of £270,711 (2023: £nil).

HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
620,962
642,375
620,962
642,375
Between two and five years
2,770,517
2,674,546
2,770,517
2,674,546
In over five years
501,155
1,209,900
501,155
1,209,900
3,892,634
4,526,821
3,892,634
4,526,821
24
Related party transactions

During the year, an amount of £638,909 (2023: £600,000) was paid to HP Shipping Limited, relating to Hebridean Princess and Lord of the Glens charter costs. R J Allard and N J Jenkins are directors and shareholders in HP Shipping Limited.

 

During the year, an amount of £nil (2023: £159,135) was paid to Chelsea Green Shipping Limited a company in which R J Allard is a director and a shareholder and K H Charleson and N J Jenkins are also shareholders.

25
Controlling party

R J Allard is the ultimate controlling party by way of his majority voting rights.

26
Cash generated from group operations
2024
2023
£
£
Profit after taxation
1,626,402
2,514,336
Adjustments for:
Taxation charged
108,123
4,721
Finance costs
893
62,391
Investment income
(355,739)
(156,561)
Amortisation and impairment of intangible assets
389,104
389,103
Depreciation and impairment of tangible fixed assets
180,360
132,270
Movements in working capital:
Decrease/(increase) in stocks
20,269
(22,891)
Decrease/(increase) in debtors
51,018
(566,633)
(Decrease)/increase in creditors
(1,114,006)
687,105
Cash generated from operations
906,424
3,043,841
HEBRIDEAN ISLAND CRUISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 28 -
27
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
1,626,402
2,514,336
Adjustments for:
Taxation charged
108,123
4,721
Finance costs
893
62,391
Investment income
(355,739)
(156,561)
Amortisation and impairment of intangible assets
389,104
389,103
Depreciation and impairment of tangible fixed assets
180,360
132,270
Movements in working capital:
Decrease/(increase) in stocks
20,269
(22,891)
Decrease/(increase) in debtors
51,090
(567,626)
(Decrease)/increase in creditors
(1,114,006)
688,170
Cash generated from operations
906,496
3,043,913
Difference
(1)
-
Per cash flow statement page
906,495
3,043,913
28
Analysis of changes in net funds - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
9,157,535
959,875
10,117,410
29
Analysis of changes in net funds - company
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
9,156,442
959,947
10,116,389
2024-10-312023-11-01falsefalseCCH SoftwareCCH Accounts Production 2024.301Mr R J AllardMr N J JenkinsMr K H CharlesonMr M D HorneMr N CresseyMr N Cresseyfalse10436041bus:Consolidated2023-11-012024-10-31104360412023-11-012024-10-3110436041bus:Director12023-11-012024-10-3110436041bus:Director22023-11-012024-10-3110436041bus:Director32023-11-012024-10-3110436041bus:Director42023-11-012024-10-3110436041bus:Director52023-11-012024-10-3110436041bus:Director62023-11-012024-10-3110436041bus:RegisteredOffice2023-11-012024-10-31104360412024-10-3110436041bus:Consolidated2024-10-3110436041bus:Consolidated2022-11-012023-10-31104360412022-11-012023-10-3110436041core:Goodwillbus:Consolidated2024-10-3110436041core:Goodwillbus:Consolidated2023-10-3110436041core:Goodwill2024-10-3110436041core:Goodwill2023-10-3110436041bus:Consolidated2023-10-31104360412023-10-3110436041core:PlantMachinerybus:Consolidated2024-10-3110436041core:FurnitureFittingsbus:Consolidated2024-10-3110436041core:PlantMachinerybus:Consolidated2023-10-3110436041core:FurnitureFittingsbus:Consolidated2023-10-3110436041core:PlantMachinery2024-10-3110436041core:FurnitureFittings2024-10-3110436041core:PlantMachinery2023-10-3110436041core:FurnitureFittings2023-10-3110436041core:ShareCapitalbus:Consolidated2024-10-3110436041core:ShareCapitalbus:Consolidated2023-10-3110436041core:ShareCapital2024-10-3110436041core:ShareCapital2023-10-3110436041core:RetainedEarningsAccumulatedLosses2024-10-3110436041core:ShareCapitalbus:Consolidated2022-10-31104360412022-10-3110436041core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-10-3110436041core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-10-3110436041core:ShareCapital2022-10-3110436041core:RetainedEarningsAccumulatedLosses2022-10-3110436041core:RetainedEarningsAccumulatedLosses2023-10-3110436041bus:Consolidated2022-10-3110436041core:Goodwill2023-11-012024-10-3110436041core:PlantMachinery2023-11-012024-10-3110436041core:FurnitureFittings2023-11-012024-10-3110436041core:UKTaxbus:Consolidated2023-11-012024-10-3110436041core:UKTaxbus:Consolidated2022-11-012023-10-3110436041bus:Consolidated12023-11-012024-10-3110436041bus:Consolidated12022-11-012023-10-3110436041core:Goodwillbus:Consolidated2023-10-3110436041core:Goodwill2023-10-3110436041core:Goodwillbus:Consolidated2023-11-012024-10-3110436041core:PlantMachinerybus:Consolidated2023-10-3110436041core:FurnitureFittingsbus:Consolidated2023-10-3110436041bus:Consolidated2023-10-3110436041core:PlantMachinery2023-10-3110436041core:FurnitureFittings2023-10-31104360412023-10-3110436041core:PlantMachinerybus:Consolidated2023-11-012024-10-3110436041core:FurnitureFittingsbus:Consolidated2023-11-012024-10-311043604112023-11-012024-10-3110436041core:CurrentFinancialInstruments2024-10-3110436041core:CurrentFinancialInstruments2023-10-3110436041core:CurrentFinancialInstrumentsbus:Consolidated2024-10-3110436041core:CurrentFinancialInstrumentsbus:Consolidated2023-10-3110436041core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-10-3110436041core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-10-3110436041core:CurrentFinancialInstrumentscore:WithinOneYear2024-10-3110436041core:CurrentFinancialInstrumentscore:WithinOneYear2023-10-3110436041bus:PrivateLimitedCompanyLtd2023-11-012024-10-3110436041bus:FRS1022023-11-012024-10-3110436041bus:Audited2023-11-012024-10-3110436041bus:ConsolidatedGroupCompanyAccounts2023-11-012024-10-3110436041bus:FullAccounts2023-11-012024-10-31xbrli:purexbrli:sharesiso4217:GBP