Company registration number 09640358 (England and Wales)
USAIRTOURS HOLIDAYS (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
USAIRTOURS HOLIDAYS (UK) LIMITED
COMPANY INFORMATION
- 1 -
Director
Mr G A Novik
Company number
09640358
Registered office
5th Floor
Watson House
54-60 Baker Street
London
United Kingdom
W1U 7BU
Auditor
King & King
Chartered Accountants & Statutory Auditors
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
USAIRTOURS HOLIDAYS (UK) LIMITED
CONTENTS
Page
Strategic report
2 - 3
Director's report
4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
USAIRTOURS HOLIDAYS (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
The director presents the strategic report for the year ended 30 September 2024.
Fair review of the business
The company is required by the Companies Act 2006 to set out in this report, a fair review of the business during the year ended 30 September 2024, the position at the year end and a description of the principal risks and uncertainties facing the company. This review is prepared solely to provide additional information to shareholders to assess the company’s strategies.
Turnover for the year was £35,623,104 which represents an annual increase of 8.26% (2023: £32,905,658). As forecast in last year’s Strategic Report, global inflation fell significantly during the year ending September 2024 which allowed for an increase in gross profit margin to 12.06% (2023: 9.24%) while still ensuring that the sale price per holiday sold remained competitive. The company will continue to focus on the sale of higher margins products and anticipate that the gross profit margin will continue to rise in the coming year to nearer 13%.
Administrative expenses increased to £4,040,646 (2023: £2,915,601) which was principally driven by the increase in headcount to 79 employees (2023: 53) as the company invests in and prepares for controlled sales growth in the coming years.
In summary the company grew in accordance with budgetary projections to record a pre-tax profit of £301,584 (2023: £87,012) and reflects a cautious and sustainable overall growth strategy.
Principal risks and uncertainties
The company's activities expose it to a variety of risks detailed below:
Exchange rate risk
As the company transacts substantially in US dollars, it is exposed to exchange rate risk. This is managed by reviewing and adjusting the selling price of products on a daily basis, purchasing dollars at the appropriate time and reviewing the need for forward currency contracts when required. If necessary, the company is also able to pass on any adverse currency movement to customers to mitigate this risk in accordance with the Package Travel Regulations.
Interest Rate Risk
The company has interest bearing assets consisting of cash at bank that earns interest at a variable rate.
Liquidity risk and cashflow
The Senior Leadership Team actively manages cash and bank balances to ensure that the company has sufficient funds for day to day operations.
Credit risk
The companies has implemented polices that require appropriate credit risk monitoring on key customers before sales are made.
USAIRTOURS HOLIDAYS (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Information Technology
The company is significantly reliant on information technology and has invested in industry leading software suppliers to provide a reliable technical infrastructure, including back up and failover systems to minimise potential downtime.
Geo political events and natural disasters
The nature of the company's operations exposes it to a wide range of possible geo political and natural disaster scenarios. To minimise this risk, the company operates a flexible and minimum commitment business model with suppliers.
Commercial risk
The company's performance can be affected by factors which include:
* Health epidemics in key tourist destinations
* Acts of terrorism, particularly in key tourist destinations
Regulatory Risks
The company is exposed to various regulators, including the Civil Aviation Authority ("CAA") which issues an Air Travel Organisers Licence ("ATOL") which is required in order for the company to operate. This licence is renewed in March each year and is subject to assessments of fitness and criterion, the framework of which is available on the CAA website (www.caa.co.uk).
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Mr G A Novik
Director
26 February 2025
USAIRTOURS HOLIDAYS (UK) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of a tour operator and travel agency. The company holds an ATOL licence issued by the Civil Aviation Authority and is a member in both ABTA and IATA.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr G A Novik
Auditor
The auditor, King & King, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr G A Novik
Director
26 February 2025
USAIRTOURS HOLIDAYS (UK) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
The director is responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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 enable them to ensure that the financial statements comply with the Companies Act 2006. He 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.
USAIRTOURS HOLIDAYS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF USAIRTOURS HOLIDAYS (UK) LIMITED
- 6 -
Opinion
We have audited the financial statements of USAIRTOURS HOLIDAYS (UK) LIMITED (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's ability to continue as a going concern.
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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.
With respect to the Strategic Report and Director's Report, we also considered whether the disclosure required by the UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters described below.
USAIRTOURS HOLIDAYS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF USAIRTOURS HOLIDAYS (UK) LIMITED (CONTINUED)
- 7 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, 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 has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Irregularities, including fraud are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
USAIRTOURS HOLIDAYS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF USAIRTOURS HOLIDAYS (UK) LIMITED (CONTINUED)
- 8 -
However, it is the primary responsibility of management, with oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the Company operates in and how the Company is complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from external tax advisors.
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to ATOL regulations. We reviewed the scope of the Company's compliance with its regulator and sample test relevant documentation to assess this and effectiveness of its control environment..
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Milankumar Patel (Senior Statutory Auditor)
For and on behalf of King & King, Statutory Auditor
Chartered Accountants
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
26 February 2025
USAIRTOURS HOLIDAYS (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
35,623,104
32,905,658
Cost of sales
(31,325,413)
(29,865,736)
Gross profit
4,297,691
3,039,922
Administrative expenses
(4,040,646)
(2,915,601)
Operating profit
4
257,045
124,321
Interest receivable and similar income
7
45,731
17
Interest payable and similar expenses
8
(1,192)
(37,326)
Profit before taxation
301,584
87,012
Tax on profit
9
(136,481)
(3,025)
Profit for the financial year
165,103
83,987
The income statement has been prepared on the basis that all operations are continuing operations.
USAIRTOURS HOLIDAYS (UK) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
129,606
191,412
Current assets
Debtors
11
3,240,189
2,418,463
Cash at bank and in hand
4,230,214
2,110,866
7,470,403
4,529,329
Creditors: amounts falling due within one year
12
(5,350,064)
(2,636,097)
Net current assets
2,120,339
1,893,232
Total assets less current liabilities
2,249,945
2,084,644
Creditors: amounts falling due after more than one year
13
(39,935)
(75,541)
Provisions for liabilities
Deferred tax liability
15
43,113
7,309
(43,113)
(7,309)
Net assets
2,166,897
2,001,794
Capital and reserves
Called up share capital
18
100,333
100,333
Other reserves
465,206
465,206
Profit and loss reserves
1,601,358
1,436,255
Total equity
2,166,897
2,001,794
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 26 February 2025
Mr G A Novik
Director
Company registration number 09640358 (England and Wales)
USAIRTOURS HOLIDAYS (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
100,333
465,206
1,352,268
1,917,807
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
83,987
83,987
Balance at 30 September 2023
100,333
465,206
1,436,255
2,001,794
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
165,103
165,103
Balance at 30 September 2024
100,333
465,206
1,601,358
2,166,897
USAIRTOURS HOLIDAYS (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
2,123,638
2,112,782
Interest paid
(1,192)
(37,326)
Income taxes paid
(3,025)
(6,909)
Net cash inflow from operating activities
2,119,421
2,068,547
Investing activities
Purchase of tangible fixed assets
(10,201)
(39,221)
Interest received
45,731
17
Net cash generated from/(used in) investing activities
35,530
(39,204)
Financing activities
Repayment of bank loans
(1,063,333)
Payment of finance leases obligations
(35,603)
(1,248)
Net cash used in financing activities
(35,603)
(1,064,581)
Net increase in cash and cash equivalents
2,119,348
964,762
Cash and cash equivalents at beginning of year
2,110,866
1,146,104
Cash and cash equivalents at end of year
4,230,214
2,110,866
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
1
Accounting policies
Company information
USAIRTOURS HOLIDAYS (UK) LIMITED is a private company limited by shares incorporated in England and Wales. The registered office is 5th Floor, Watson House, 54-60 Baker Street, London, United Kingdom, W1U 7BU.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
The company's Air Travel Organisers Licence ("ATOL") is fundamental for the continuation of the business. The ATOL renews on 31 March 2025. The directors believe the ATOL will be renewed for 12 months until 31 March 2026.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue represents the holiday and travel arrangement sales, recognised on the date of departure basis.
1.4
Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% Reducing balance method
Computers
25% Reducing balance method
Motor vehicles
33% Straight line method
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company 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 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.
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including 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.
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities
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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.10
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 cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases.
Finance leases are capitalised at commencement of the lease as assets at the fair value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined, the group’s incremental borrowing rate is used.
Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset.
Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date.
The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of package holidays
35,623,104
32,905,658
2024
2023
£
£
Other revenue
Interest income
45,731
17
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
2,951
(1,814)
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
18,000
Depreciation of owned tangible fixed assets
28,134
34,114
Depreciation of tangible fixed assets held under finance leases
43,873
43,872
Operating lease charges
1,648
8,864
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Adminstartive staff
74
48
Management staff
5
5
Total
79
53
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,339,695
1,740,281
Social security costs
217,730
164,587
Pension costs
61,455
105,450
2,618,880
2,010,318
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
512
16,571
Company pension contributions to defined contribution schemes
-
20,000
512
36,571
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
45,731
17
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
45,731
17
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
29,894
Other finance costs:
Interest on finance leases and hire purchase contracts
2,548
7,319
Other interest
(1,356)
113
1,192
37,326
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
91,279
3,025
Adjustments in respect of prior periods
9,398
Total current tax
100,677
3,025
Deferred tax
Origination and reversal of timing differences
35,804
Total tax charge
136,481
3,025
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
(Continued)
- 20 -
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
301,584
87,012
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
75,396
16,532
Tax effect of expenses that are not deductible in determining taxable profit
1,472
1,445
Depreciation on assets not qualifying for tax allowances
14,411
(14,952)
Under/(over) provided in prior years
9,398
Deferred tax adjustments
35,804
Taxation charge for the year
136,481
3,025
10
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023
148,261
306,696
132,947
587,904
Additions
10,201
10,201
At 30 September 2024
148,261
316,897
132,947
598,105
Depreciation and impairment
At 1 October 2023
126,385
226,234
43,873
396,492
Depreciation charged in the year
5,469
22,665
43,873
72,007
At 30 September 2024
131,854
248,899
87,746
468,499
Carrying amount
At 30 September 2024
16,407
67,998
45,201
129,606
At 30 September 2023
21,876
80,462
89,074
191,412
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
45,201
89,074
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
116,709
167,244
Corporation tax recoverable
9,398
Other debtors
177,162
547,526
Prepayments and accrued income
2,946,318
1,694,295
3,240,189
2,418,463
Prepayments and accrued income includes £2,910,933 (2023: £1,535,913) advances paid to the suppliers towards customer's holiday bookings.
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
14
35,602
35,599
Trade creditors
923,667
828,271
Corporation tax
91,279
3,025
Other taxation and social security
39,265
114,600
Deferred income
16
3,453,443
926,365
Other creditors
676,216
705,237
Accruals and deferred income
130,592
23,000
5,350,064
2,636,097
The director has made a loan to the company, totalling £380,322 (2023: £458,332) which is included in other creditors and is interest free. These loans are subordinated to the CAA.
Deferred income £3,453,443 (2023: £926,365) represents deposits or full amounts received from customer for their holiday bookings which is recognised as revenue post year end on date of departure.
The company has adequate funds in order to protect consumer funds in accordance with the package Travel Regulations and ATOL Regulations.
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
14
39,935
75,541
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
14
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
35,599
35,599
In two to five years
39,938
75,541
75,537
111,140
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
43,113
7,309
2024
Movements in the year:
£
Liability at 1 October 2023
7,309
Charge to profit or loss
35,804
Liability at 30 September 2024
43,113
The deferred tax liability of £16,511 set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
16
Deferred income
2024
2023
£
£
Other deferred income
3,453,443
926,365
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
61,455
105,450
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordianry A Shares of £1 each
100,000
100,000
100,000
100,000
Ordinary B Shares of £1 each
333
333
333
333
100,333
100,333
100,333
100,333
B Shares do not carry voting rights and capital distribution rights. B shares rank pari passu in respect of dividend rights subject to B shareholder continues to be employed by the company.
19
Other reserves
2024
2023
£
£
At the beginning and end of the year
465,206
465,206
Company granted Enterprise Management Incentives shares during the year ended 30 September 2022. The shares were granted on 27th May 2022, having no vesting period. The number of shares granted during the period were 33,444 and were valued at £13.91 per share.
20
Related party transactions
The company was under the control of Mr G Novik throughout the current year.
During the year, dividends totalling £Nil (2023: £Nil) were paid to the director.
USAIRTOURS HOLIDAYS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
165,103
83,987
Adjustments for:
Taxation charged
136,481
3,025
Finance costs
1,192
37,326
Investment income
(45,731)
(17)
Depreciation and impairment of tangible fixed assets
72,007
77,986
Movements in working capital:
(Increase)/decrease in debtors
(831,124)
2,929,929
Increase/(decrease) in creditors
98,632
(386,208)
Increase/(decrease) in deferred income
2,527,078
(633,246)
Cash generated from operations
2,123,638
2,112,782
22
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
2,110,866
2,119,348
4,230,214
Obligations under finance leases
(111,140)
35,603
(75,537)
1,999,726
2,154,951
4,154,677
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