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Registered number: 07406226









NEXT GENERATION TRAVEL LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

 
NEXT GENERATION TRAVEL LIMITED
 
 
COMPANY INFORMATION


Directors
Mrs D C Beckett 
Mrs S L Belfield 
Mr D J Craven 
Mr D P Finch (resigned 9 August 2023)
Mrs S E Foden 
Mrs M Whiteman 
Mr A J Morris (appointed 9 August 2023)




Registered number
07406226



Registered office
Chiltern House
181 Bristol Avenue

Blackpool

Lancashire

FY2 0FP




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

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA





 
NEXT GENERATION TRAVEL LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Consolidated Statement of Comprehensive Income
10
Consolidated Statement of Financial Position
11
Company Statement of Financial Position
12 - 13
Consolidated Statement of Changes in Equity
14
Company Statement of Changes in Equity
15
Consolidated Statement of Cash Flows
16
Consolidated Analysis of Net Debt
17
Notes to the Financial Statements
18 - 47


 
NEXT GENERATION TRAVEL LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024

Introduction
 
The directors present their strategic report of the Company (Next Generation Travel Limited) and the Group (Next Generation Travel Limited and its subsidiaries) for the year ended 31 July 2024.

Business review
 
The Group is required by the Companies Act 2006 to set out in this report, a fair review of the business of the Group and the Company during the financial year ended 31 July 2024, the position of the Group and the Company at the end of the period and a description of the principal risks and uncertainties facing the Group. This review is prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed, and the business review should not be relied upon by any other party or for any other purpose.
The Group is pleased to report a strong year of growth across all 4 brands, delivering 99 more tours than last year and reporting revenue growth of over 24%. There have been significantly less operational issues this year now that supply and services have finally improved following the COVID-19 pandemic. Customer feedback has been excellent with improved NPS scores across the Group. 
Schools have been very keen to travel, with more venturing overseas again. Recruitment of staff has been challenging at times for more junior roles. We have made some key management and executive level appointments which has helped the business to deliver against its 3-year growth strategy.
Investment in IT has continued and we are very confident of seeing the benefit of this investment in the next 12 – 24 months, both in terms of delivering efficiencies and improving customer service levels.    
The key performance indicators used by the directors to monitor the progress of the Group are set out below:-

2024
2023
£
£
Turnover

29,541,180

23,767,545

Gross profit

5,962,407

3,888,481

Gross profit as a percentage of turnover

20.18%

16.36%

Profit/(loss) on ordinary activities before taxation

148,924

(1,104,607)

Profit/(loss) on ordinary activities as a percentage of turnover

0.50%

(4.65)%

Net cash inflow from operating activities

893,163

3,549,944

Net liabilities

(1,024,774)

(980,508)


Page 1

 
NEXT GENERATION TRAVEL LIMITED
 

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

Principal risks and uncertainties
 
The following risk factors may affect the Group's operating results and its financial position. The risk factors described below are those which the directors believe are potentially significant but should not be regarded as a complete and comprehensive statement of all potential risk and uncertainties facing the Group.
Economic risk
The demand for educational tours is somewhat affected by local economic conditions. During 2024, rising costs across the economy have provided further challenges, however this has been compensated by the strong desire of teachers and parents to ensure students do not miss out on trips linked to the curriculum and by groups moving away from their previous tour operator due to poor service. 
Regulatory risk
The Group 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 Group to operate. This licence is renewed in March each year and is subject to assessments of fitness and financial criteria, the framework of which is available on the CAA website (www.caa.co.uk).
Market risk
The Group operates in a highly competitive market featuring innovation in travel products and the methods by which it is marketed, as well as price pressures. The Group seeks to constantly invest in its brands to increase public awareness, as well as offer a wide selection of products from a wide range of suppliers at competitive prices, to maintain its market position at the same time as continuing to deliver exceptional customer service. The Group also monitors competitor activity closely.
Finance risk
The Group is naturally exposed to foreign exchange rate risk when it purchases overseas services in currencies other than British Pounds. All exchange gains and losses so arising are taken to the income statement once realised. The Group strategy is to hedge against the majority of this risk and for any element not hedged, the Group bears the risk associated with such foreign exchange movements.
Commercial relationships
The Group has well established and close relationships with both customers and suppliers and risk is spread by not placing over-reliance on any one supplier in any specific destination. The management team liaises regularly with suppliers to maintain good working relationships and to understand the supplier's financial position.
System risk
The Group is heavily reliant on the uninterrupted operation of its IT systems and website. These systems are vulnerable to power loss, fire, computer viruses and other events. Loss of these systems would impair the ability of the Group to carry on its business effectively. The Group has made arrangements to mitigate this risk.
 
Page 2

 
NEXT GENERATION TRAVEL LIMITED
 

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

Principal risks and uncertainties (continued)
Commercial risk
The nature of the business exposes the Group to various commercial risks which may affect the trading performance of the Group, but all foreseeable potential risks are considered on an ongoing basis by the Board.
These factors may affect the Group by causing potential customers to cancel or postpone travel plans, reducing the earnings potential of the Group. The Group seeks to minimise such risks by operating a flexible limited commitment business model with the ability to shift capacity amongst a variety of destinations where necessary.


This report was approved by the board on 13 February 2025 and signed on its behalf.



Mrs M Whiteman
Director

Page 3

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

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


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

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

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

Principal activity

The principal activity of the Group in the year under review was that of travel tour operators.
The Company's principal activity in the year was that of acting as a group holding company. It is the Company's subsidiaries which trade and operate as travel tour operators.

Results and dividends

The profit for the year, after taxation, amounted to £25,480 (2023 - loss £919,069).

The directors do not recommend a final dividend for the year ended 31 July 2024.
The total distribution of dividends for the year ended 31 July 2024 was £Nil (2023 - £Nil).

Page 4

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024


Directors

The directors who served during the year were:

Mrs D C Beckett 
Mrs S L Belfield 
Mr D J Craven 
Mr D P Finch (resigned 9 August 2023)
Mrs S E Foden 
Mrs M Whiteman 
Mr A J Morris (appointed 9 August 2023)

Matters covered in the Group Strategic Report

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

Disclosure of information to auditors

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

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

Future developments and post balance sheet events

During 2024 and into 2025, the Group will continue to operate as outlined in the principal activity note above.  
There have been no significant events affecting the Group 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.

This report was approved by the board on 13 February 2025 and signed on its behalf.
 





Mrs M Whiteman
Director

Page 5

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEXT GENERATION TRAVEL LIMITED
 

Opinion


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


In our opinion the financial statements:


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


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 6

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEXT GENERATION TRAVEL LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 7

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEXT GENERATION TRAVEL LIMITED (CONTINUED)


Responsibilities of directors
 

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


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


Auditors' responsibilities for the audit of the financial statements
 

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


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

- We exercise professional judgment and maintain professional skepticism throughout the audit;
- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control;
- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control;
- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;
- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
 
Page 8

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEXT GENERATION TRAVEL LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements (continued)
- We review the scope of the Group's compliance with The Package and Linked Travel Arrangements Regulations 2018 (“PTRs”) and sample test relevant documentation to assess this and the effectiveness of its control environment;
- We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements;
- We review the Group's relationships with related parties, identifying and disclosing transactions during the year and balances at year-end with such parties;


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


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

13 February 2025
Page 9

 
NEXT GENERATION TRAVEL LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024

2024
2023
Note
£
£

  

Turnover
 4 
29,541,180
23,767,545

Cost of sales
  
(23,578,773)
(19,879,064)

Gross profit
  
5,962,407
3,888,481

Administrative expenses
  
(5,763,809)
(4,949,281)

Other operating income
 5 
11,243
52,267

Operating profit/(loss)
 6 
209,841
(1,008,533)

Interest receivable and similar income
 10 
68,718
30,218

Interest payable and similar expenses
 11 
(129,635)
(126,292)

Profit/(loss) before taxation
  
148,924
(1,104,607)

Tax on profit/(loss)
 12 
(123,444)
185,538

Profit/(loss) for the financial year
  
25,480
(919,069)

  

Fair value loss on cash flow hedges
  
(73,996)
(123,312)

Total comprehensive income for the year
  
(48,516)
(1,042,381)

Profit/(loss) for the year attributable to:
  

Owners of the parent Company
  
25,480
(919,069)

The notes on pages 18 to 47 form part of these financial statements.

Page 10

 
NEXT GENERATION TRAVEL LIMITED
REGISTERED NUMBER: 07406226

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
2,783,867
2,853,703

Tangible assets
 15 
104,183
94,711

  
2,888,050
2,948,414

Current assets
  

Debtors: amounts falling due within one year
 17 
3,006,639
2,862,626

Cash at bank and in hand
 18 
4,611,297
3,454,220

  
7,617,936
6,316,846

Creditors: amounts falling due within one year
 19 
(9,460,463)
(9,175,471)

Net current liabilities
  
 
 
(1,842,527)
 
 
(2,858,625)

Total assets less current liabilities
  
1,045,523
89,789

Creditors: amounts falling due after more than one year
 20 
(2,070,297)
(1,070,297)

Net liabilities
  
(1,024,774)
(980,508)


Capital and reserves
  

Called up share capital 
 23 
321,998
317,748

Share premium account
 24 
443,252
443,252

Cash flow hedging reserve
 24 
(197,308)
(123,312)

Profit and loss account
 24 
(1,592,716)
(1,618,196)

Equity attributable to owners of the parent Company
  
(1,024,774)
(980,508)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 February 2025.




Mrs M Whiteman
Director

The notes on pages 18 to 47 form part of these financial statements.

Page 11

 
NEXT GENERATION TRAVEL LIMITED
REGISTERED NUMBER: 07406226

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
1,237,634
1,113,426

Tangible assets
 15 
65,119
50,252

Investments
 16 
3,680,608
3,680,608

  
4,983,361
4,844,286

Current assets
  

Debtors: amounts falling due within one year
 17 
18,761,781
8,834,380

Cash at bank and in hand
 18 
561,502
2,682,961

  
19,323,283
11,517,341

Creditors: amounts falling due within one year
 19 
(26,706,465)
(17,170,494)

Net current liabilities
  
 
 
(7,383,182)
 
 
(5,653,153)

Total assets less current liabilities
  
(2,399,821)
(808,867)

  

Creditors: amounts falling due after more than one year
 20 
(2,070,297)
(1,070,297)

  

Net liabilities
  
(4,470,118)
(1,879,164)


Capital and reserves
  

Called up share capital 
 23 
321,998
317,748

Share premium account
 24 
443,252
443,252

Profit and loss account brought forward
  
(2,640,164)
(812,301)

Loss for the year

  

(2,595,204)
(1,827,863)

Profit and loss account carried forward
  
(5,235,368)
(2,640,164)

  
(4,470,118)
(1,879,164)


Page 12

 
NEXT GENERATION TRAVEL LIMITED
REGISTERED NUMBER: 07406226
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JULY 2024

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 February 2025.


Mrs M Whiteman
Director

The notes on pages 18 to 47 form part of these financial statements.

Page 13

 
NEXT GENERATION TRAVEL LIMITED
 

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


Called up share capital
Share premium account
Cash flow hedging reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 August 2022
317,748
443,252
-
(699,127)
61,873


Comprehensive income for the year

Loss for the year
-
-
-
(919,069)
(919,069)

Fair value loss on cash flow hedges
-
-
(123,312)
-
(123,312)



At 1 August 2023
317,748
443,252
(123,312)
(1,618,196)
(980,508)


Comprehensive income for the year

Profit for the year
-
-
-
25,480
25,480

Fair value loss on cash flow hedges
-
-
(73,996)
-
(73,996)


Contributions by and distributions to owners

Shares issued during the year
4,250
-
-
-
4,250


At 31 July 2024
321,998
443,252
(197,308)
(1,592,716)
(1,024,774)


The notes on pages 18 to 47 form part of these financial statements.

Page 14

 
NEXT GENERATION TRAVEL LIMITED
 

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


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

£
£
£
£


At 1 August 2022
317,748
443,252
(812,301)
(51,301)


Comprehensive income for the year

Loss for the year
-
-
(1,827,863)
(1,827,863)



At 1 August 2023
317,748
443,252
(2,640,164)
(1,879,164)


Comprehensive income for the year

Loss for the year
-
-
(2,595,204)
(2,595,204)


Contributions by and distributions to owners

Shares issued during the year
4,250
-
-
4,250


At 31 July 2024
321,998
443,252
(5,235,368)
(4,470,118)


The notes on pages 18 to 47 form part of these financial statements.

Page 15

 
NEXT GENERATION TRAVEL LIMITED
 

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

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
25,480
(919,069)

Adjustments for:

Amortisation of intangible assets
390,718
367,740

Depreciation of tangible assets
51,363
42,250

Interest paid
129,635
120,780

Taxation charge
123,444
(185,538)

Increase in debtors
(317,752)
(203,296)

Increase in creditors
439,642
4,327,077

Corporation tax paid
50,633
-

Net cash generated from operating activities

893,163
3,549,944


Cash flows from investing activities

Purchase of intangible fixed assets
(320,882)
(303,861)

Purchase of tangible fixed assets
(60,835)
(58,911)

Net cash from investing activities

(381,717)
(362,772)

Cash flows from financing activities

Issue of ordinary shares
4,250
-

Repayment of loans
(228,984)
(402,534)

Other new loans
1,000,000
-

Interest paid
(129,635)
(120,780)

Net cash used in financing activities
645,631
(523,314)

Net increase in cash and cash equivalents
1,157,077
2,663,858

Cash and cash equivalents at beginning of year
3,454,220
790,362

Cash and cash equivalents at the end of year
4,611,297
3,454,220


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,611,297
3,454,220


The notes on pages 18 to 47 form part of these financial statements.

Page 16

 
NEXT GENERATION TRAVEL LIMITED
 

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




At 1 August 2023
Cash flows
At 31 July 2024
£

£

£

Cash at bank and in hand

3,454,220

1,157,077

4,611,297

Debt due after 1 year

(1,070,297)

(429,703)

(1,500,000)

Debt due within 1 year

(228,983)

(341,314)

(570,297)


2,154,940
386,060
2,541,000

The notes on pages 18 to 47 form part of these financial statements.

Page 17

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

1.


General information

As disclosed in the Directors' Report, the principal activity of the Group in the year under review continued to be that of travel tour operators.
The Company's principal activity in the year was that of acting as a group holding company. It is the Company's subsidiaries which trade and operate as travel tour operators.
The Company is a private company limited by shares and is incorporated in England. The address of the company's principal place of business, being the same as the registered office stated on the Company Information page, is:
Chiltern House
181 Bristol Avenue
Blackpool
Lancashire
FY2 0FP

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The Company has also taken advantage of the exemption allowed under paragraph 1.12 of FRS 102 and has not presented its own Statement of Cash Flows in these financial statements. 

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 18

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Group has seen a recovery in trade during 2023 and 2024, which had been delayed because of long lead times between booking and travel dates in educational travel. The rising costs of living, combined with regional wars around the globe, resulted in a reduction in demand and disposable income for some consumers. Despite this, the Group has seen a significant rise in revenue, exceeding pre-pandemic levels, and a return to profit for the year. This, combined with an increase in forward bookings at year-end, gives the Group confidence that business will continue to grow in coming years.
Group management and the directors continue to constantly review the Group’s financial position as well as forecasts, and plan mitigation actions in order to protect against any potential future downturns in trading. This work has also enabled them to assess and plan for the potential impact of any capital requirements that might be required by the Group's travel regulators. The Directors also continue to monitor requirements in respect of debt service and covenants and have obtained confirmation of the support of their bankers for a period of at least 12 months from the approval of the financial statements.
The directors have continued to review forecasts which extend until 28 February 2026. These forecasts include assumptions in respect of passenger numbers and have been stress tested across a number of scenarios. The outcome of the testing of these forecasts shows that sufficient resources are expected to be in place to allow the Group to meet obligations as they fall due. 
Notwithstanding this, and despite all of the cost mitigation actions undertaken along with an increase in bookings seen since the relaxation of overseas travel restrictions, some uncertainty does remain regarding the quantum and timing of future revenue and cash flows which could have an impact on future covenant compliance and regulatory capital requirements. The directors have therefore obtained a letter of support from the main shareholder which confirms that support will be extended to the business, if required, to allow it to continue as a going concern. The directors have satisfied themselves that the main shareholder has the resources available to provide the level of support that would be expected in a reasonable worst case scenario.
Based on the above and the sensitised forecasts and budgets, Group management and the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least the following 12 months from the signing of these financial statements. 
In light of the above, the directors have concluded that it is appropriate to prepare the financial statements on a going concern basis.

Page 19

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.4

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 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'.

 
2.5

Turnover

Turnover represents amounts receivable for services net of VAT and trade discounts.
Turnover from the provision of services is recognised when the risks and rewards of ownership have been transferred to the customer. The risks and rewards of ownership of services are deemed to have been transferred when the services have been provided to the customer which is generally on day of departure.
Unearned revenue received in advance of departure is held as a liability on the statement of financial position.
Trade debtors still represent gross amounts receivable and trade creditors still represent gross amounts payable in respect of travel and holiday arrangements.

 
2.6

Operating leases: the Group as lessee

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

Page 20

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred.
Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
The company has capitalised development expenditure as an intangible asset as it is able to demonstrate all of the following:
(a) The technical feasibility of completing the development so the intangible asset will be available for use or sale. 
(b) Its intention to complete the development and to use or sell the intangible asset. 
(c) Its ability to use or sell the intangible asset. 
(d) How the intangible asset will generate probable future economic benefits. 
(e) The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset. 
(f) Its ability to measure reliably the expenditure attributable to the intangible asset during its development.
Furthermore, as the development costs capitalised under this policy are expected to produce future economic benefits the amortisation of such costs will be treated as a realised loss in accordance with section 844 of Companies Act 2006 rather than the initial expenditure.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Interest income

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

 
2.9

Finance costs

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

 
2.10

Borrowing costs

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

Page 21

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.11

Pensions

Defined contribution pension plan

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

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

 
2.12

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 22

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

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

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

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

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

Page 23

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.14

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 10 to 20 years.

Other intangible assets

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

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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

 The estimated useful lives range as follows:

Computer software
-
33.33% on a straight line basis
Development expenditure
-
20% on a straight line basis
Brands
-
6.67% on a straight line basis
Customer contracts
-
5% on a straight line basis

 
2.15

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.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 24

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)


2.15
Tangible fixed assets (continued)

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.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Over the life of the lease
Fixtures and fittings
-
20% on a straight line basis
Office equipment
-
20% on a straight line basis
Computer equipment
-
33.33% on a straight line basis

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

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

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

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.

 
2.18

Cash and cash equivalents

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

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

 
2.19

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 25

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.20

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.
 
Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.21

Financial instruments

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

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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

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

Basic financial assets

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

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

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
 
Page 26

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)


Impairment of financial assets

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

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

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

Financial liabilities

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

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

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
 
Page 27

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)


Other financial instruments

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

The Group designates certain derivaties as either:
- Hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge);
- Hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge); or
- Hedges of a net investment in a foreign operation (net investment hedge).
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is recognised after more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability.
At year-end, the Group had contracted to buy £8,492,345 (2023 - £4,230,480) of foreign currencies in future months.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

 
2.22

Hedge accounting

The Group uses foreign currency forward contracts to manage its exposure to cash flow risk on its future creditors payable in foreign currencies. These derivatives are measured at fair value at each reporting date.

To the extent the cash flow hedge is effective, movements in fair value are recognised in other comprehensive income and presented in a separate cash flow hedge reserve. Any ineffective portions of those movements are recognised in profit or loss for the year.

Gains and losses on the hedging instruments and the hedged items are recognised in profit or loss for the year. When a hedged item is an unrecognised firm commitment, the cumulative hedging gain or loss on the hedged item is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.

Page 28

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying 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.
a) Critical judgments in applying the Company's accounting policies
Amortisation rates
The directors have made judgements when determining the useful economic life of goodwill and other intangible assets. Amortisation is recognised so as to write off the value of the assets over the life that economic benefit is expected to flow.
Impairment
At the period end, the directors have considered whether there is any indication that tangible assets, goodwill and investments are impaired and have conducted an impairment review in respect of goodwill, customer contracts and brand intangibles. Management have utilised discounted cashflow forecasts to calculate a value in use in respect of these assets and have concluded that no impairment charge is required in the financial statements for the year ended 31 July 2024.
Valuation of share based payments
As outlined in note 25, the Company has issued equity settled share options to employees and directors of the Company. Management have calculated an estimated value of the share based payments using the Black-Scholes model. The model requires estimates and assumptions to be taken in respect of a risk free rate of return, volatility and the fair value of the share at the date of grant. Management have concluded that any share based payment charge would not be material to the financial statements and accordingly no charge has been recorded in the consolidated statement of comprehensive income.
b) Key accounting estimates and assumptions
The directors believe that there are no key accounting estimates and assumptions involved in applying the Company's accounting policies that warrant disclosure.


4.


Turnover

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


2024
2023
£
£

Tour operator sales
29,541,180
23,767,545


All turnover arose within the United Kingdom.

Page 29

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

5.


Other operating income

2024
2023
£
£

Other operating income
11,243
52,267



6.


Operating profit/(loss)

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

2024
2023
£
£

Exchange differences
(290,715)
(105,163)

Other operating lease rentals
114,129
109,063


7.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
57,002
46,673

Page 30

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

8.


Employees

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


Wages and salaries
3,212,262
2,759,458
2,971,914
2,377,868

Social security costs
296,325
257,986
274,254
222,619

Cost of defined contribution scheme
123,516
96,260
113,133
78,811

3,632,103
3,113,704
3,359,301
2,679,298


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Management
18
15
17
13



Sales and operations
49
42
45
36



Admin and support
35
30
32
25

102
87
94
74


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
461,219
426,420

Group contributions to defined contribution pension schemes
29,820
14,775

491,039
441,195


During the year retirement benefits were accruing to 3 directors (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £150,441 (2023 - £148,519).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £14,965 (2023 - £14,775).

Included within Directors' emoluments above are non-cash benefits relating to private medical care paid for on behalf of the directors.

Page 31

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

10.


Interest receivable

2024
2023
£
£


Other interest receivable
68,718
30,218


11.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
129,635
126,292


12.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
123,444
(185,538)


Taxation on profit/(loss) on ordinary activities
123,444
(185,538)
Page 32

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the average effective rate of corporation tax in the UK of 25% (2023 - 21%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
148,924
(1,104,607)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21%)
37,231
(231,967)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
86,212
78,151

Capital allowances for year in excess of depreciation
2,238
(5,577)

Utilisation of tax losses
(125,681)
-

Movement in deferred taxation
123,444
(185,538)

Unrelieved tax losses carried forward
-
159,393

Total tax charge for the year
123,444
(185,538)


Factors that may affect future tax charges

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


13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the year was £2,595,204 (2023 - loss £1,827,863).
Page 33

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

14.


Intangible assets

Group





Customer contracts
Development expenditure
Brands
Goodwill
Total

£
£
£
£
£



Cost


At 1 August 2023
1,098,415
734,212
1,091,190
2,465,440
5,389,257


Additions
-
320,882
-
-
320,882



At 31 July 2024

1,098,415
1,055,094
1,091,190
2,465,440
5,710,139



Amortisation


At 1 August 2023
609,411
406,159
255,295
1,264,689
2,535,554


Charge for the year on owned assets
54,921
84,436
72,746
178,615
390,718



At 31 July 2024

664,332
490,595
328,041
1,443,304
2,926,272



Net book value



At 31 July 2024
434,083
564,499
763,149
1,022,136
2,783,867



At 31 July 2023
489,004
328,053
835,895
1,200,751
2,853,703



Page 34

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
 
           14.Intangible assets (continued)

Company




Development expenditure
Brands
Goodwill
Total

£
£
£
£



Cost


At 1 August 2023
290,586
734,114
801,419
1,826,119


Additions
320,207
-
-
320,207



At 31 July 2024

610,793
734,114
801,419
2,146,326



Amortisation


At 1 August 2023
1,258
231,490
479,945
712,693


Charge for the year
66,916
48,941
80,142
195,999



At 31 July 2024

68,174
280,431
560,087
908,692



Net book value



At 31 July 2024
542,619
453,683
241,332
1,237,634



At 31 July 2023
289,328
502,624
321,474
1,113,426

Goodwill relates to non contractual and separable contracts and non contractual brands acquired which do not meet the criteria for separate recognition as an intangible asset under the triennial review of FRS102.

Page 35

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

15.


Tangible fixed assets

Group






Short-term leasehold property
Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 August 2023
81,883
48,313
126,869
160,145
417,210


Additions
-
38,630
16,469
5,736
60,835



At 31 July 2024

81,883
86,943
143,338
165,881
478,045



Depreciation


At 1 August 2023
58,748
46,557
103,473
113,721
322,499


Charge for the year on owned assets
6,547
7,448
16,348
21,020
51,363



At 31 July 2024

65,295
54,005
119,821
134,741
373,862



Net book value



At 31 July 2024
16,588
32,938
23,517
31,140
104,183



At 31 July 2023
23,135
1,756
23,396
46,424
94,711

Page 36

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

           15.Tangible fixed assets (continued)


Company






Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£

Cost or valuation


At 1 August 2023
-
18,235
120,013
138,248


Additions
32,858
7,222
5,171
45,251



At 31 July 2024

32,858
25,457
125,184
183,499



Depreciation


At 1 August 2023
-
11,494
76,502
87,996


Charge for the year on owned assets
5,476
6,423
18,485
30,384



At 31 July 2024

5,476
17,917
94,987
118,380



Net book value



At 31 July 2024
27,382
7,540
30,197
65,119



At 31 July 2023
-
6,741
43,511
50,252






Page 37

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 August 2023
3,680,608



At 31 July 2024
3,680,608





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

ABT Transport Limited
(i)
Dormant
Ordinary
100%
Anglia Tours Limited
(i)
Tour operators
Ordinary
100%
FHT Transport Services Limited
(i)
Dormant
Ordinary
100%
FHT Travel Limited
(i)
Tour operators
Ordinary
100%
WST Transport Services Limited
(i)
Transport services
Ordinary
100%
WST Travel Limited
(i)
Tour operators
Ordinary
100%

(i) Chiltern House, 181 Bristol Avenue, Blackpool, FY2 0FP

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

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

ABT Transport Limited
100
-

Anglia Tours Limited
1,632,015
950,200

FHT Transport Services Limited
100
-

FHT Travel Limited
315,537
95,647

WST Transport Services Limited
8,814
-

WST Travel Limited
3,761,236
1,721,496

Page 38

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

17.


Debtors

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


Amounts owed by group undertakings
-
-
18,267,855
8,341,915

Other debtors
574,750
413,196
241,059
155,886

Prepayments and accrued income
2,220,541
2,114,638
31,752
10,134

Deferred taxation
211,348
334,792
221,115
326,445

3,006,639
2,862,626
18,761,781
8,834,380


Included within prepayments and accrued income above are payments made to suppliers relating to bookings departing after the year end, where the Group is acting as principal. The total of these prepaid costs at 31 July 2024 was £1,867,834 (2023 - £1,780,551).


18.


Cash and cash equivalents

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

Cash at bank and in hand
4,611,297
3,454,220
561,502
2,682,961

4,611,297
3,454,220
561,502
2,682,961


Included within cash at bank and in hand are UK Trust Accounts which are independently and professionally managed by PT Trustees Limited ("PTT"). As at 31 July 2024, the sum of £1,471,456 (2023: £563,007) was held in the Trust Accounts as restricted cash, to be released upon a set of rules agreed with the Civil Aviation Authority ("CAA") and PTT which provide full consumer protection for ATOL bookings.

Page 39

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

19.


Creditors: Amounts falling due within one year

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

Bank loans
-
208,150
-
208,150

Other loans
-
20,833
-
-

Trade creditors
1,147,721
2,098,956
95,394
98,406

Amounts owed to group undertakings
-
-
26,132,155
16,538,773

Other taxation and social security
108,796
198,213
78,918
63,854

Other creditors
75,283
84,359
16,728
12,268

Accruals and deferred income
7,931,355
6,441,648
383,270
249,043

Financial instruments
197,308
123,312
-
-

9,460,463
9,175,471
26,706,465
17,170,494


Included within accruals and deferred income above are receipts from customers relating to bookings departing after the year end, where the Group is acting as principal. The total of these receipts taken in advance at 31 July 2024 was £5,621,012 (2023 - £4,947,936).
The Group had BSP outstanding cash sales of £Nil at 31 July 2024 (2023 - £Nil).


20.


Creditors: Amounts falling due after more than one year

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

Other loans
1,570,297
570,297
1,570,297
570,297

Preference shares
500,000
500,000
500,000
500,000

2,070,297
1,070,297
2,070,297
1,070,297


The redeemable preference shares amounting to £500,000 carry a coupon rate of 8%. During the year, on 8 January 2024, the Company agreed to extend the redemption date of the preference shares to 31 January 2026.  



Page 40

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

21.


Loans


Analysis of the maturity of loans is given below:


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

Amounts falling due within one year

Bank loans
-
208,150
-
208,150

Other loans
-
20,833
-
-


-
228,983
-
208,150

Amounts falling due 1-2 years

Other loans
1,570,297
570,297
1,570,297
570,297


1,570,297
570,297
1,570,297
570,297



1,570,297
799,280
1,570,297
778,447


Included within other loans above are loans of £570,297 from directors/shareholders, which have been subordinated to the Civil Aviation Authority ('CAA') and cannot be repaid without the CAA's prior written consent. The loans bear interest at 8% per annum and are expected to be repaid on 13 April 2026, subject to authority being provided by the CAA.
Additionally, included within other loans above is a loan of £1,000,000 from the majority shareholder, Mr D J Craven, which was agreed on 26 June 2024. This loan has also been subordinated to the CAA and cannot be repaid without the CAA's prior written consent. The loan bears interest at 9.25% above the base rate of Handelsbanken plc and is expected to be repaid on 15 August 2025, subject to authority being provided by the CAA. As part of the loan, the Company has created and issued equity warrants to subscribe for an amount of D Ordinary shares of £1.00 each, equal to 15% of the fully diluted share capital of the Company, or at most 53,556 shares. If the Company fails to repay the loan in full on or prior to the repayment date of 15 August 2025, then the lender will be entitled to exercise the equity warrant. This loan is subject to an additional deed of subordination, under which it is given priority over the Company's preference shares and the above other loans of £570,297, neither of which can be repaid before the loan of £1,000,000 is repaid to Mr D J Craven. 

Page 41

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

22.


Deferred taxation


Group



2024


£






At beginning of year
334,792


Charged to profit or loss
(123,444)



At end of year
211,348

Company


2024


£






At beginning of year
326,445


Charged to profit or loss
(105,330)



At end of year
221,115

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

Accelerated capital allowances
(21,441)
(23,678)
(11,674)
(12,563)

Tax losses carried forward
232,789
358,470
232,789
339,008

211,348
334,792
221,115
326,445

Deferred tax assets relating to accelerated capital allowances will be reversed as the Group claims capital allowances on the tax value of its tangible fixed assets, being on a reducing balance basis at 18%. Deferred tax assets relating to tax losses carried forward will be reversed in their entirety in following periods against taxable profits.

Page 42

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

23.


Share capital

2024
2023
£
£
Shares classified as equity

Allotted, called up and fully paid



250,000 (2023 - 250,000) Ordinary shares of £1.00 each
250,000
250,000
15,250 (2023 - 11,000) A Ordinary shares of £1.00 each
15,250
11,000
56,748 (2023 - 56,748) B Ordinary shares of £1.00 each
56,748
56,748

321,998

317,748

2024
2023
£
£
Shares classified as debt

Allotted, called up and fully paid



500,000 (2023 - 500,000) Preference shares of £1.00 each
500,000
500,000


Ordinary shares carry full voting rights, full dividend rights and full rights to participation in any capital distribution on winding up. Shares are not redeemable.
A Ordinary shares carry full voting rights, full dividend rights and full rights to participation in any capital distribution on winding up. Shares are not redeemable.
B Ordinary shares carry 0.67 votes at meetings, full dividend rights and full rights to participation in any capital distribution on winding up. Shares are not redeemable but subject to a put/call option. As per the put option, per the terms of a letter of variation dated 8 July 2019, the option may be exercised only with the agreement of the company and therefore the shares have been treated as equity. As per a further letter of variation dated 8 January 2024, on a qualifying sale, listing, asset sale or liquidation of the Company, each B Ordinary share is entitled to receive the relevant B Ordinary share price, as defined within the articles of association and after the payment of amounts due to preference share holders. 
The redeemable preference shares amounting to £500,000 carry a coupon rate of 8%, no voting rights and in the event of winding up take priority over all classes of Ordinary shares. During the year, on 18 July 2024, the Company agreed to extend the redemption date of the preference shares to 31 January 2026.  

On 20 October 2023, the Company issued 4,250 A Ordinary shares of £1.00 each at par.

Page 43

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

24.


Reserves

Share premium account

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

Other reserves

Other reserves relate to a cash flow hedging reserve to which, in accordance with the Group's accounting policies, the effective portion of changes in the fair value of foreign exchange forward contract derivatives are recognised.

Profit and loss account

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

Page 44

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

25.


Share-based payments

The Company has granted options, which remain exercisable, to subscribe for ordinary shares of £1 each as follows:

Grant Date
Subscription price per share
Period within
which
options are
exercisable
Number of shares for which rights are exercisable
Number of shares for which rights are exercisable
        £
     2024
No.
     2023
No.
Tranche

B

.

13 February 2014

0.52
 
9.5 years
 
-

4,250

C


9 March 2015

1.33
 
9.5 years
 
1,375

1,375

D


14 June 2021

0.60
 
9.5 years
 
750

750

F


9 January 2024

1.00
 
9.5 years
 
47,184

-


Each tranche of share options falls under an Enterprise Management Incentive ('EMI') scheme and may only be exercised on the event of a takeover, share sale or asset sale, or after a period of 9 years and 6 months. Each share option lapses and ceases to be exercisable 10 years after the date of being granted. Share options are settled by way of granting a fixed number of Ordinary shares of the Company, as outlined under the terms of the EMI scheme contract.
Tranche B options totalling 4,250 A Ordinary shares of £1.00 were exercised on 20 October 2023 and paid for at par. 
On 9 January 2024, an additional tranche of share options were granted, Tranche F, over a total number of 47,184 C Ordinary shares of £1.00 each, which carry full voting rights, full dividend rights and limited rights to participation in any capital distribution on winding up. 
The directors have confirmed that no share options expired or were forfeited during the year and that none of the remaining share options were exercisable at 31 July 2024. 
The directors have reviewed the value of the share based payments in relation to the above options, calculated under the Black-Scholes model, and have not recognised any revaluation charges in the statement of comprehensive income on the grounds of materiality. During the year, the Company has recognised a total expense of £53,224 (2023 - £69,987) in relation to the costs of issuing and managing EMI scheme share options. No liabilities were arising at 31 July 2024 (2023 - £Nil) in relation to unpaid share options.


26.


Contingent liabilities and cash backed bonding

There is a cross company guarantee in place between all group companies in favour of Svenska Handelsbanken AS, the amount guaranteed at the year end was £Nil (2023 - £208,150).
At 31 July 2024, there were contingent liabilities outstanding in respect of counter indemnities given by the Company, in the normal course of business, to the Group's bond insurance obligors in respect of Civil Aviation Authority ('CAA') travel bonds amounting to £1,000,000 and Association of Bonded Travel Organisers Trust Limited ('ABTOT') travel bonds amounting to £3,231,437. 

Page 45

 
NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

27.


Pension commitments

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. The pension cost charge represents contributions payable by the Group to the fund and amounted to £123,516 (2023 - £96,260). Contributions totalling £16,728 (2023 - £14,573) were payable to the fund at the reporting date and are included in creditors.


28.


Commitments under operating leases

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


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

Not later than 1 year
103,590
119,708
16,632
21,258

Later than 1 year and not later than 5 years
48,125
151,715
-
16,632

151,715
271,423
16,632
37,890


29.


Transactions with directors

Loans of £570,297, subordinated to the Civil Aviation Authority, were provided to the Group by five directors of the Company. The terms of the loans are disclosed in note 21 of the financial statements.
Additionally, during the year, a further loan of £1,000,000, also subordinated to the Civil Aviation Authority, was provided to the Group by one of the directors of the Company. The terms of the loan is disclosed in note 21 of the financial statements. 


30.


Related party transactions

During the year the Group paid rent of £37,667 (2023 - £26,000) for the use of offices that are partially owned by one of the directors, Mr D J Craven.
The Group considers key management personnel to be made up of the board of directors, the total compensation of which is disclosed in note 9 of the financial statements. 


31.


Post balance sheet events

During 2024 and into 2025, the Group will continue to operate as outlined in the principal activity note.
There have been no significant events affecting the Group since the year end.

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NEXT GENERATION TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

32.


Controlling party

The ultimate controlling party of the Group is considered to be Mr D J Craven, due to his shareholding in the Company.

 
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