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Registered number: 07532241









FIRST HOLIDAY FINANCE LTD









DIRECTOR'S REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
FIRST HOLIDAY FINANCE LTD
 

CONTENTS



Page
Company Information
1
Director's Report
2 - 3
Independent Auditors' Report
4 - 8
Profit and Loss Account
9
Statement of Comprehensive Income
10
Balance Sheet
11
Statement of Changes in Equity
12 - 13
Notes to the Financial Statements
14 - 23


 
FIRST HOLIDAY FINANCE LTD
 
 
COMPANY INFORMATION


Director
D J Fairbrother 




Company secretary
Mapa Management & Administration Services Limited



Registered number
07532241



Registered office
Hallswelle House,
1 Hallswelle Road,

London,

NW11 0DH




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

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA




Bankers
Barclays Bank plc
Edgeware Group 9

Leicester

Leicestershire

LE87 2BB




Page 1

 
FIRST HOLIDAY FINANCE LTD
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Director's responsibilities statement

The director is responsible for preparing the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the director is required to:


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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Principal activity

The company was incorporated in 2011 and commenced trading on 1 August 2015. The principal activity of the company is the provision of credit to British customers for the purchase of vacation related products.

Directors

The directors who served during the year were:

D J Fairbrother 
H M O'Donnell (resigned 5 September 2023)

Going concern

The directors are fully aware of their duty to assess the Company’s going concern status and have attended to this with particular care in consideration of the current economic outlook.
 
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Page 2

 
FIRST HOLIDAY FINANCE LTD
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties

Financial risk management

Liquidity risk
In order to maintain liquidity and ensure that sufficient funds are available for ongoing operations and future developments, the company uses group debt finance.

Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimizing such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the company's debtors are shown in note 9 to the financial statements.

Disclosure of information to auditors

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

 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's auditors are aware of that information.

Post balance sheet events

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

Auditors

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

Small companies note

In preparing this report, the director has taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 27 January 2025 and signed on its behalf.
 





D J Fairbrother
Director

Page 3

 
FIRST HOLIDAY FINANCE LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRST HOLIDAY FINANCE LTD
 

Opinion


We have audited the financial statements of First Holiday Finance Ltd (the 'Company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the 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 Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


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


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


Page 4

 
FIRST HOLIDAY FINANCE LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRST HOLIDAY FINANCE LTD (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 director is 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Director's Report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Director's Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Director's Report and from the requirement to prepare a Strategic Report.


Page 5

 
FIRST HOLIDAY FINANCE LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRST HOLIDAY FINANCE LTD (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 2, the director is 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 director determines 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 director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
FIRST HOLIDAY FINANCE LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRST HOLIDAY FINANCE LTD (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 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 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 conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity'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 entity to cease to continue as a going concern.


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 7

 
FIRST HOLIDAY FINANCE LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRST HOLIDAY FINANCE LTD (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

27 January 2025
Page 8

 
FIRST HOLIDAY FINANCE LTD
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 5 
747,251
990,982

Gross profit
  
747,251
990,982

Administrative expenses
  
(319,571)
(1,588,279)

Operating profit/(loss)
 6 
427,680
(597,297)

Profit/(loss) for the financial year
  
427,680
(597,297)

The notes on pages 14 to 23 form part of these financial statements.

Page 9

 
FIRST HOLIDAY FINANCE LTD
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£


Profit/(loss) for the financial year

  

427,680
(597,297)

Other comprehensive income
  

Total comprehensive income for the year
  
427,680
(597,297)

The notes on pages 14 to 23 form part of these financial statements.

Page 10

 
FIRST HOLIDAY FINANCE LTD
REGISTERED NUMBER: 07532241

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

  

Current assets
  

Debtors: amounts falling due within one year
 9 
8,271,590
7,904,448

Cash at bank and in hand
 10 
24,531
4,890

  
8,296,121
7,909,338

Creditors: amounts falling due within one year
 11 
(1,616,687)
(1,657,584)

Net current assets
  
 
 
6,679,434
 
 
6,251,754

Total assets less current liabilities
  
6,679,434
6,251,754

Provisions for liabilities
  

Other provisions
 12 
(1,000,000)
(1,000,000)

  
 
 
(1,000,000)
 
 
(1,000,000)

Net assets
  
5,679,434
5,251,754


Capital and reserves
  

Called up share capital 
 13 
1
1

Profit and loss account
  
5,679,433
5,251,753

  
5,679,434
5,251,754


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 January 2025.




D J Fairbrother
Director

The notes on pages 14 to 23 form part of these financial statements.

Page 11

 
FIRST HOLIDAY FINANCE LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
1
5,251,753
5,251,754


Comprehensive income for the year

Profit for the year

-
427,680
427,680


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
427,680
427,680


Total transactions with owners
-
-
-


At 31 December 2023
1
5,679,433
5,679,434


The notes on pages 14 to 23 form part of these financial statements.

Page 12

 
FIRST HOLIDAY FINANCE LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
1
5,849,050
5,849,051


Comprehensive income for the year

Loss for the year

-
(597,297)
(597,297)


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
(597,297)
(597,297)


Total transactions with owners
-
-
-


At 31 December 2022
1
5,251,753
5,251,754


The notes on pages 14 to 23 form part of these financial statements.

Page 13

 
FIRST HOLIDAY FINANCE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

First Holiday Finance Limited is a private company limited by shares incorporated in England and Wales under the Companies Act 2006.

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors are fully aware of their duty to assess the company’s going concern status and have attended to this with particular care in consideration of the current economic outlook. 
 
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company'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 Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 
FIRST HOLIDAY FINANCE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivabale, taking into account contractually defined terms of payment, in case apply and excluding taxes or duty.

 
2.5

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.

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 operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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 balance sheet date.

 
2.6

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.

 
2.7

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.

 
2.8

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 15

 
FIRST HOLIDAY FINANCE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

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.

Page 16

 
FIRST HOLIDAY FINANCE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.10

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loansand other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financingtransaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Investments in non-derivative instruments that are equity to the issuer are measured:
-  at fair value with changes recognised in the Profit and Loss Account if the shares are publicly traded or their fair value can otherwise be measured reliably;
-  at cost less impairment for all other investments.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Page 17

 
FIRST HOLIDAY FINANCE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In application of the company's accounting policies which are described in note 2, the director is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The directors do not consider there to be any such sources of estimation uncertainity or critical accounting judgements in forming these financial statements, other than as detailed in note 4 below.


4.


Estimation uncertainty - in house finance bad debt provision

The financial statements include a bad debt provision to cover potential defaults which is based on historical records, leading to a default ratio of the in-house finance debt balance. The ratio has increased during the year and the value of the bad debt provision is £3.923m (2022 - £3.904m).
The movement in the impairment provision for trade receivables is as follows:

2023
2022
£m
£
Opening provision 1 January

3.9

4.8
 
Charge / release for the year

0

0
 
Receivables written off in the year

0

(0.9)
 
Closing provision 31 December

3.9

3.9
 


5.


Turnover

Turnover represents amounts derived from the provision of credit services which fall within the company's ordinary activities after deduction of discounts. Revenue is recognised at the point of provision of services.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
747,251
990,982

747,251
990,982


Page 18

 
FIRST HOLIDAY FINANCE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2023
2022
£
£

Exchange differences
(29,582)
83,058


7.


Employees

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL).

The average monthly number of employees, including directors, during the year was 0 (2022 - 0).


8.


Taxation


2023
2022
£
£



Total current tax
-
-

Deferred tax

Total deferred tax
-
-


Taxation on profit on ordinary activities
-
-
Page 19

 
FIRST HOLIDAY FINANCE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
8.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard average rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
427,680
(597,297)


Profit/(loss) on ordinary activities multiplied by standard average rate of corporation tax in the UK of 23.52% (2022 - 19%)
100,593
(113,487)

Effects of:


Expenses not deductible for tax purposes
580
-

Group relief claimed/surrendered for no payment
(105,770)
(76,513)

Other timing differences
-
190,000

Movement in deferred tax not recognised
4,597
-

Total tax charge for the year
-
-


9.


Debtors

2023
2022
£
£


Trade debtors
3,989,791
5,172,027

Amounts owed by group undertakings
4,280,000
2,730,000

Prepayments and accrued income
1,799
2,421

8,271,590
7,904,448


Amounts owed by group undertakings are interest free and repayable on demand.


10.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
24,531
4,890

24,531
4,890


Page 20

 
FIRST HOLIDAY FINANCE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,595,437
1,637,484

Accruals and deferred income
21,250
20,100

1,616,687
1,657,584



12.


Provisions





Provision for claims and legal fees

£





At 1 January 2023
1,000,000



At 31 December 2023
1,000,000


13.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1 (2022 - 1) Ordinary Share Capital share of £1.00
1
1


Page 21

 
FIRST HOLIDAY FINANCE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Contingent liabilities

Financial Ombudsman Service

The company has received a number of claims lodged with the Financial Ombudsman Service (“FOS”) seeking to have their loans cancelled and to be reimbursed for sums paid plus interest and costs. In the past the company has been successful in defending such claims and FOS has decided in favour of First Holiday Finance Limited (“FHF”), but the directors of the company acknowledge that whilst the majority of claims have not been upheld, some of the claims have been provisionally upheld by FOS investigators and have been appealed by FHF at Ombudsman level. Similarly, claims that were previously not upheld have been appealed by Claims Management Companies at Ombudsman level. FHF is aware that the two different lenders who were involved in Judicial Review cases to appeal rulings by FOS against them (“Other Lenders”) have received decisions from the High Court on 5th May 2023 (“JR Rulings”). While the Judicial Review by the Other Lenders did not succeed on all grounds, nevertheless the Court emphasised that FOS could not apply a “blanket” approach and had to examine each case individually. Following the Rulings, FOS began a separate dialogue with FHF and the Other Lenders and each was asked to prepare a plan of approach to re-examine complaints in the light of certain criteria established in the Rulings. Following this work FHF identified a small category of claims where in light of the JR Rulings it may be required to reverse the decisions in cases it had not previously upheld and investigation into these cases continues.  In the meantime, the directors anticipate that the company will need to challenge the detail of FOS decisions in individual cases and given the uncertainty of the outcome of the appeals and the need to challenge the FOS decisions in individual cases, the Directors wish to take a cautious approach: first, based on a worst case scenario if a certain percentage of the claims succeeded, they estimate the total liability could be between £5 million and £6 million and second, to then provide for a sum of £500,000 to cover comprehensive legal expenses including applying for judicial review where appropriate. In recognition of some early analysis which indicates that a limited number of claims will match the criteria in the Rulings and redress should be provided, the directors have decided to keep the provision in the financial statements of £1 million and feel it prudent to disclose a contingent liability to the value of between £4.5 million and £5.5 million in the company’s Financial Statements.


15.


Deferred Taxation

At year end there is a potential deferred tax asset of £254,886 (2022: £250,000) relating to losses that has not been recognised as there is insufficient evidence that the asset will be recovered. The asset would only be recovered if there were sufficient profits of the same trade to utilise the losses. 


16.


Related party transactions

During the year the company had the following related party transactions:

Operating costs from related party
Operating costs from related party
Amounts owed (to)/by related party
Amounts owed (to)/by related party
£ - 2023
£ - 2022
£ - 2023
£ - 2022
Group Companies
CLC Resort Management

-

150,000

4,280,000
 
2,730,000
 

Page 22

 
FIRST HOLIDAY FINANCE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Post balance sheet events

No post balance sheet events have been noted.


18.


Controlling party

The ultimate parent company is CLC Resort Management Limited, a company incorporated in the Isle of Man which is exempt of preparing consolidated financial statements.
The registered office address of CLC Resort Management Limited is 33 North Quay, Douglas, Isle of Man.
In the opinion of the directors the ultimate controlling party is Cavendish Trustees Limited.

Page 23